HomeMy WebLinkAboutFiscal Year 1995-96 Financial StatementMcity of newport beach
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0 comprehensive annual financial report
■ year ended june 30, 1996
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Comprehensive Annual Financial Report
For the Year Ended June 30, 1996
Prepared by the Administrative Services Department
Dennis C. Danner, Director
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Introductory Section
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CITY OF NEWPORT BEACH
Comprehensive Annual Financial Report
Year Ended June 30, 1996
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TABLE OF CONTENTS
INTRODUCTORY SECTION ..,.,
(Unaudited)
Tableof Contents. ...... ............ ............................ ............................... ......'......................................
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Letterof Transmittal ...............::............::.......................................................... ..............................m
GFOA Certificate of Achievement for Excellence in Financial Reporting ... ........::.....................
xvii
CSMFO Certificate of Award for Outstanding Financial Reporting ................. ..........................xviii
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List of City Officials ...... ..............................................................................................................
xix
Organization Chart ........................... .::.....:............................................ ................... .........:..........xx
FINANCIAL SECTION
Independent Auditors' Report.... .................... .....................................
1
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups ............... ................::......:.:.4..
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances; - All Governmental Fund Types ............................. ...........................:..6
Combined Statement of Revenues, Expenditures and Changes
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in..Fund Balances ., Budget and:Actual - All Governmental Fund Types . .........
.......8 '
Combined Statement of :Revenues, Expenses and Changes
in Retained Earnings • All Proprietary Fund Types .... ......... .... ............................:12
Combined Statement of Cash Flows.- All Proprietary Fund Types ....... .................1'4
Notes to General Purpose financial Statements........ ... ............................:17
Supplementary Information
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General Fund: ;
Comparative Balance Sheets ....::... ............... ...................... ..........._ . ...........41
Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual ....... ... ............................ ........ .........
........42
Special Revenue Funds:
Combining Balance Sheet:, :::.. ...................:........... :.
44
Combining Statement of Revenues Expenditures and Changes in Fund Balances ..............46
Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual:
• State Gas Tax Fund ..................................................................... .............................48
• Asset Forfeiture Fund .................................................................. .............................49
• Tide and Submerged Land Fund ................................................. .............................50
• Contributions Fund., ........................ .......... .................................. .................... .... .51
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• Circulation and Transportation Fund ......................... ...............................
• Building Excise Tax Fund .......................................... ...............................
• Combined Transportation Fund ................................. ...............................
• Community Development Block Grant Fund- .... .... - ................................
• Ackerman Donation Fund ........................................... ...............................
• Air Quality Management District Fund ....................... ...............................
• Environmental Liability Fund ...................................... ...............................
Capital Projects Funds:
..........52
......53
..........55
.......,..56
..........57
..........58
Combining Balance Sheet;.: .....:::................ ...:.i.:. 60
Combining Statement of 'Revenues, Expenditures and Changes in Fund Balances .................62
Statement of Revenues; Expenditures and Changes
in Fund Balance Budget and Actual:
• Capital Improvement Fund ..................... .........- ........ ..:::. .::..............64
• Assessment` District Fund -.................. ...:... ......... ........:..._ ...... :. .................65
• CIOSA Construction... ........................ ......... ._ ...:.........66
Bank Deposits, Last Ten Fiscal Years ....................................................... ...............................
Property Tax Rates, Direct and Overlapping Governments, Last Ten Fiscal Years .................
Computation of Legal Debt Margin .............................................................. ...............................
Principal Property Taxpayers as of June 30, 1996 .................................... ...............................
Schedule of Direct and Overlapping Bonded Debt ..................................... ...............................
Revenue Bond Coverage, Last Ten Fiscal Years. .....................................................
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CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
November 8, 1996
Honorable Mayor and Members of the
. City Council
City of Newport Beach
Newport Beach, California
The Comprehensive Annual Financial Report of the City of. Newport Beach for the year
■ ended June 30, 1996 is hereby submitted, as mandated by both local ordinances and
state statutes. These ordinances and statutes require wpo
.that the,City of Nei#,Beach
issue annually a report on its financial position and activity,. and that this lrepbrt be
. audited by an independent firm of certified public accountants Responsibility Or. the
accuracy, completeness and fairness of the data presented, including.. all, disclosures,
rests with management.. We believe the information presented' is accurate in all
material aspects,: and that it is reported in a manner designed to fairly.present the
financial position and; results of .operations of.the various funds, account groups arid;
. component units of the City. of Newport Beach. All disclosures necessary to enabliY;
the reader to gain an.: understanding of the City's financial activities have been
included.
■ This report is presented in three . sections. The Introductory Section'; which rs
unaudited; contains the.table of contents, the transmittal letter; an organization chart of
the City, and a listing of: =the City's` principal elected and appointed officials The:
Financial Section consists of the independent; auditors' rep_., the general purpose
financial statements, notes "to the;f[naneial statements, :and "the combining ani
individual fund and accoun4 group financial'statemenis and schedules. The Sta :,, cal
. Section, which is unaudited, contains selected financials` and demographic
information, generally presented on a multi -year basis.
. The City provides a full range of services- to its residents and ;visitors Resources
used in supplying City services and maintaining operations are classified in three
general character groupings: Current, Capital, and Debt;: Service $imply stated,
Current expenditures should be presumed to benefit the current fiscal; period; Capital
expenditures should be presumed to benefit the current and future fiscal periods; and
■ Debt Service expenditures :should be presumed to penefitipast, current, and future
fiscal periods.
. The City utilizes more specific categories to classify expenditures by the function of the
services the City provides, as follows:
• General Government: City Council, City Manager, City Attorney, City Clerk,
and Administrative Services.
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• Public Safety: Police, Fire, Paramedic, Disaster Assistance, and Marine
Safety.
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• Public Works: Engineering, Construction, and Maintenance of public
streets, highways, buildings, parks, and infrastructure; as well as fleet
maintenance and sanitation.
• Community Development: Planning, Zoning, and Building Permit services
and enforcement.
• Community Services: Libraries, Recreation; Arts & Cultural, and Social
Services.
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• Proprietary Functions: Enterprise Operations for water and wastewater.
utilities; as well as Internal Service Operations for risk management and
fleet maintenance and replacement.
DESCRIPTION OFiREPORTING ENTITY
The City. of Newport Beach was incorporated September 1, 1906. The current City_,.:
Charter was adopted .in 1954. The City operates under a Council - Manager form of
government and?::provides . the following . services: public safety (police, fire and
.marine); highway and streets, cultural and recreation, public improvements, planning
and zoning, utilities;; and general administrative services..
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The financial statements present the financial activity of the City of Newport Beach (the.
primary:government) and he- Newport Beach Public Facilities Corporation, which is a
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component unit of the City. The component unit discussed below is included in, the
City's reporting entity because of the significance ' of its operational or financial
relationship with the City, although: this entity is a legally separate organization.
However, the City of Newport Beach elected officials have continuing full or partial
accountability for fiscal matters of this entity. The financial reporting :entity consists of:
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(1) the City, (2) organizations for which the City is financially accountable, and (3)
organizations for which the nature and significance of their relationship with the City
are such that exclusion would cause the City's financial statements to`be misleading
or incomplete.
An organization is fiscally dependent on the primary government if it is unable to adopt
its budget, levy taxes or set rates or charges, or issue bonded debt without approval
by the primary government. In a blended presentation, a component unit's balances
and transactions are reported in a manner similar to the balances and transactions of
the City. Component units are presented on a blended basis when the component
unit's governing body is substantially the same as the City's or the component unit
provides services almost entirely to the City.
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Blended Component Unit. The financial statements of the City of Newport Beach
r include the financial activities of the Newport Beach Public Facilities Corporation (the
"Corporation "). The Corporation was formed on March 9, 1992, for the purpose of
assisting the City of Newport Beach in the financing of public improvements, including
a public library. The Corporation is governed by a Board of Directors comprised of
seven individuals appointed by the.City Council of the City of Newport Beach. The
Corporation's financial data and. transactions are included in the debt service fund
type, capital projects fund type and general long -term debt account: group.
r Organizations Other than Reporting Entity. The following entities provide services
within the City but are not component units: State of California; County3of:O.range and
various school and other special districts. These entities do not_meet the above
r criteria of a component unit and their financial information is not "included :in this
report.
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. LOCAL ECONOMIC CONDITION AND OUTLOOK
Although the City's. long -term tax base., is broad and diverse, there' are signs icarlt;
r short-term fluctuations in all City revenues, including taxes. The primary revenge;.
sources include property taxes and sales taxes. There are ,a number of malar hotels:
located within the City. which produce:a transient occupancy tax. In addition' fhe Cityi;
. owns various properties. which generate revenue, and investment of temporary cash,,
reserves provides limited" interest: earnings. Other, smaller sources of revenue are,
r numerous and highly varied.
Though some recovery is evident; economic. activity in the City and the region:
continues to be: slower than if was fve.to ten years ago The long -term outlook rs
favorable, but the current climate. remains weak: ' Comrriereiaf and residentt2l
development within the City continues to generate new revenues, but at a reduced
r rate. This also results in additional costs to the City as .it continues to prosride the
highest quality services to its residents and commercial establishments Because of
r the City's outstanding beaches and harbor, Newport Beach attracts as misny as
100,000 tourists a day. This tourist population helps to :maintain the City's strong
economic base, but it also requires additional expenditures for; r ine public
r services.
■ Overall, property values in Newport Beach have declined ove01:e past few years, but
the City's property tax base :remains <substantial. However, recent budget actions by
the State of California have had a significant and ongoing adverse impact on the City's
r finances, especially property taxes. Revenues continue to fall well short of long -term
trends, and corresponding adjustments to appropriations have been necessary.
Approximately 14% of the work force has been eliminated, and significant reductions
rhave also been made in other areas.
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The City's fiscal posture is still being affected by several one -time events which
actually occurred in prior years. Monetary settlements arising from litigation, an
unfavorable combination of decisions concerning aerospace industry sales tax
rebates, and implementation of the Americans with Disabilities Act have or will
represent cash drains to the City of some significance. In addition, City reserves and
operating funds were impacted by investment losses resulting from the bankruptcy of r
Orange County. Even though there may be some additional subsequent recovery, the
City chose to write off remaining investment claims. If and when additional sums are .
received, they will therefore constitute new revenue.
The City's overall financial condition remains quite strong, and we believe the
aggressive response to these developments will serve.us well. Newport Beach
considers it essential to maintain a healthy long -run financial . condition. Policy
changes which affect both expenditures and revenue sources have been instituted,
and more such actions are likely. In that regard, the City has negotiated reductions,
especially in the area of fringe benefits, as part of the meet and confer process with
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several of its employee :groups. ' (As of June 30, 1996, all negotiations were not
complete.)
During this fiscal :. year; the City continued construction of the Groundwater
Development Project.. This project consists of new wells being drilled at inland sites:
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in another city with :4he water then being piped to Newport . Beach. Actual spending for:,
the project during.-this fiscal year was $11,254,278. The total cost of the project is;`
projected to be $23,697,748 of which $16.1 million was financed by Revenue Bonds
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issued in 1994. .
The City's overall Capital. Projects program was particularly ambitious this year, with
total spending :of $37,596,169 actually taking place 'during the year. Based only ,on
limited research of readily available` records, that appears to be the largest annual
expenditure on capital projects (including funds from,all sources) in the City's histgry.
In addition to the Groundwater Project, other major, projects either continuing,.,. or
`MacArthur. Street
getting underway were Boulevard widening, Birch Bridge Widening,
Big Canyon Reservoir Disinfection Modification, El''Paseo` Storm Drain Project; and a
large number of smaller drainage, street and park facility, harbor.and tidelands, and
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other projects.
During the 1995 -96 fiscal year, actions initiated in prior :years to reduce` expenditures
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and expand selected existing revenues were again continued: In addition, in order to
partially offset the permanent loss in the revenue structure resulting from State cuts,
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some new local revenue sources were identified. A;detailed Cost of Services Study
was completed, and it is anticipated" that at least some fees will be adjusted as a
result of the study's information. Special operating budget reductions were again
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identified and subsequently implemented by each department. After several years of
decreases, the work force was held virtually constant. Several City work -force
functions previously performed by full -time employees are now being accomplished
by part-time employees, or have been contracted out.
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The number of major fiscal variables which still contain a significant degree of
volatility remains high, but not as high as it has been in recent years. Although it is
. uncertain at this time whether additional reductions or other corrective actions will be
required in the near future, it is clear that substantial growth in City services or
functions over the next few years is highly unlikely.
MAJOR INITIATIVES
For the Year. This fiscal year was largely one of consolidatiom and implementation of
r extensive changes initiated during "the - recent past. The past . few years,; have clearly
represented a transitionary period in the City's history. The previous ?fouryears were
■ characterized by a reduction of the workforce, strearhlinirig of ,the City's basic
organizational structure, increased automation, and an increasingly ambitious .;capital
projects program. None of these were short-term endeavors,,,and all were very., ,much
. still in the forefront during this fiscal year.
In addition, an ambitious Cost of Services and Perform ance'Measurement Study was
completed for the City by KPMG Peat Marwick, LLP.: As planned "this will ultimately,
result in improved. budgeting procedures and more accurate cost allocation.:Among`;
other things, this study prompted a review of a large number of the City's fees and:
charges for services. Staff work on this. review was nearing completion of year end,. -
with prospective.City Council action .being scheduled for the coming year.
■ .The City contmued;.with installation of.video cameras in policoNehicles: This has had':
■ a very favorable impact on several" aspects of "law enforcement bothfrom, a criminal;
prosecution standpointand a "civil liability standpoint.
For the Future. In addition >td following through on"the items mentioned above, the
City will continue to expand the application :of the Geographic" <fnformation System tis
well as other related automation programs. Evaluation of a "l`cJocument imaging
program is scheduled to begin shortlyafter the" beginning of the new fiscal year; "at�d a
comprehensive Police Strategic Information Systems projectwill result in additional
■ effectiveness of the City's law enforcement resources.. "
As a cost saving measure, the.. City plans to form al.Jbint Powers i Authority with
neighboring communities for the pooled use of Police helicopters The City will also
participate in the conversion to the 860 MHZ public safety radio system throughout
■ Orange County. This is a costly but critically important prolectahat "will take place over
several years.
The Capital Improvement Project program is expected to continue at close to its
current ambitious pace. The potential annexation of downcoast and other adjacent
. areas will continue to be examined.
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FINANCIAL CONTROLS AND PROCEDURES 0
Internal Control Structure. Management of the City is responsible for establishing
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and maintaining an internal control structure designed to ensure that the assets of the
government are protected from loss, theft or misuse and to ensure that adequate
accounting data is compiled to allow for the preparation of financial statements in
conformity with generally accepted accounting principles. The internal control
structure is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that: (1) the
cost of a control should not exceed the benefits likely to be derived; and (2) the
valuation of costs and benefits requires estimates and judgments by management.
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The City of Newport Beach has initiated a comprehensive program to reduce
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vulnerability to fraud, waste, or abuse through an improved internal control structure
just prior to this fiscal year. Purchasing, Accounts Payable, and Property Control
Procedures are in place and updated periodically. The Travel Policy and related
procedures have been rewritten and adopted, as has the City's Investment Policy.
Warehousing, Stock Issuance, and Property Disposal Procedures have been
rewritten, and Standard Operating Procedures for the Accounting and Purchasing
Divisions have been substantially revised and updated. All controlled property has-
been - inventoried and tagged.
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:.S.ingle Audit As a.. recipient of Federal financial assistance, the City is required to ;
undergo . an annual.. audit in conformity with the provisions of the Single Audit Ad of.,.,
.1984: and the U.S..Office of Management and Budget. Circular A -128, Audits of State"
and Local,. Governments: As part of the City's Single Audit, tests are made to-
determine the adequacy of the internal control structure, including that portion related
to'federal financial assistance programs, as well as to determine that the City has
complied with applicable.laws and regulations. The results of the City's Single Audit
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for I the fiscal year ended June ..30; 1996, provided no instances of material
weaknesses in the internal control, structure or significant violations of applicable
laws: and regulations. The information related to the Single Audit, including; the
Schedule of Federal Financial Assistance:; findings and 'recommendations, and
independent auditors' reports on the internal control,:structure and compliance with
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applicable laws and regulations are =included.in a separate report.
Budgeting Controls and Changes.. The City of Jyewport Beach maintains budget
controls. The objective of these' controls is to ensure compliance with legal
provisions embodied in the annual appropriated budget approved by the City Council.
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Budget control is maintained at the fund level; or project level in the governmental fund
types. The City maintains an encumbrance accounting system as one method of
accomplishing budgetary control. Where encumbrances indicate an overdraft of the
departmental or project budget, purchase orders are not released until an
appropriation adjustment is made to ensure that adequate funding is available. The
City's Budget Policy was completely rewritten and implemented during fiscal year
1994 -95.
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The City has recently incorporated the use of Internal Service Funds to more effectively
manage functions across departmental lines. The Insurance Reserve Fund was
phased in during fiscal year 1991 -92 and was intended to assist the City in
assessing the full extent of its liability for claims and judgments exposure and
compensated absences. Internal contribution rates have been established in an
effort to fully fund these liabilities. over the five year period. Disability and
compensated absences, have now been added to programs managed through this
fund. During the 1993-94 fiscal year, the City began to administer, plan, and budget
for the acquisition, maintenance, and repair of major rolling stock (vehicles and
equipment) through an Equipment` Internal Service Fund.
FINANCIAL INFORMATION
The information in this section pertains to the City's general governmental operations.
General ;governmental function ""finances are administered through the General,
Special Revenue; Debt Service, and Capital Projects Funds.,
"It is important to note that the General" Fund fund balance increased substantially this
year. An increase Was planned, in keeping with the City Council's policy of building
toward :arid eventually ,mai.ntaining, a stabilization reserve; equal to:: 15% of.;annual
General Fund appropriations. However, tax revenues (mostly sales tax)" were stronger,
than -anticipated'. In addition, capital'. project expenditures, ?while showing a marked
iricrease; were still below .budget. ' The :City must still add over $4i0 million to its
stabilization resenre:;to reach the goal of 15 %o of annual General Fund. appropriations.,,..
GENERAL FUND .
Ten YearTrend in Fund Balance . '
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1987 1988 1989
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1990 1991 1992 1993 1994 1995 1996
Fiscal Year Ending June 30
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Unfortunately, this sharp increase in fund balance cannot be regarded as the
beginning of a trend of that magnitude. Part of the increase was due to one time ■
transfers and restatement adjustments from other funds of $1.6 million. Although the
City has every intention of achieving the stabilization goal set by the City Council, it will
be more of a struggle than this year's figures might seem to indicate. N
Revenues. The following schedule (expressed in thousands) presents a summary of
General Fund, Special Revenue Fund, Debt Service Fund, and Capital Projects Fund
revenues for the fiscal year ended June 30, 1996, and the percentage of increases
and decreases in relation to revenues during the previous fiscal year, as well as the
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percentage increases and decreases for the five year period beginning with fiscal
year 1990-91.
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Fiscal Year 1995 -96 Governmental .Revenues
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Percentage Cumulative
Percent Change Change:
Amount of From FY Since FY
Revenue Source .:' 0� OOZ Total.' 1994 -95 1990 -91 s`
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Taxes $42,854 51.82% 7.89% 6.01%
Licenses, Fees, .& Permits $3,052 3.69% 38.85% 17.130%
Intergovernmental. $8,316 10.06% - 22.31% - 25.26 %
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Charges for Services $6,278 7.59% 22.86% 29.56%
Fines .& Forfeitures $2;855 3.45 % - 9.57% - 8.22%
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Use of Money & Property $11;000 13 30% 13.68% 10.45%
Miscellaneous $8,340 10.09% ' 443.32% 386.420/d
Total.. $82,695 100.00% 15.07% 9.84 %,
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For he first time in the last five years, the City showed greater net revenue, in actual
dollars, than it received during fiscal year. 1990 -9.1. With an inflation adjustment,
however, current revenue is still below the 1990 =91"" level. This situation is
representative of the overall economic decline, as well as State -level budget actions
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which had the effect of significantly reducing certain tax revenues previously allocated
to the City. The revenue situation has not changed, and it..is not expected to change,
sufficiently to support any significant.growth in City services.
Realignments of functional priorities and other management: actions will continue to
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result in changes to City programs, but a comprehensive net increase or decrease in
services is not foreseen at this timer (It should be noted that the "Miscellaneous"
category contains a number of non - reoccurring revenues, some of which are for major
capital projects. Year to year volatility is therefore to be expected in this category.)
More information concerning revenues over the past ten years is contained in the
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Statistical Section of this publication
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Although overall spending increased; somewhat from'the prior fiscal year, it can be
. seen from the above table that City expenditures are still below the FY 1990 -91 level.
Inside this overall trend, however, are a number of significant factors which give a
more complete and accurate picture of the restructuring of City spending that has
taken place.
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Percentage Changes in Major Revenue Sources
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Revenue source
Expenditures The
following” schedule
(expressed in 'thousands) presents
summary of general
governmental expenditures for the fiscal year ended. June 2
1996.and the d?.I*:value of the increase or decrease during the past five years."
Ftscal,Year
1995- 96,0 overn mental Expenditures
.
Current
Percent Change Change;
Amount
of Since FY Since FY
Expenditures`'
OS 00�
'Total,: 1:994 -95 1990 -99
General Government
$5;443
7.16% ($62) ($1;858)
Public Safety
$34,571
" 45:48 ° /a $1,181 $7;659
Public Works
$14,780
19.441° $397;., ($2;467)
Community Development, $2;952
3.88% ;($623) $2,769
Community Services
$5,916
7.78% ., ($221) ,;($1,367)
Capital Expenditures
$11,292
14.85% $2 768 ' ($8,207)
Debt Service
$1;069',.
1(41% $( 243' $1,069
.
Total Expenditures $76,023
100.00% $3,197 ($2,402)
Although overall spending increased; somewhat from'the prior fiscal year, it can be
. seen from the above table that City expenditures are still below the FY 1990 -91 level.
Inside this overall trend, however, are a number of significant factors which give a
more complete and accurate picture of the restructuring of City spending that has
taken place.
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1. While overall spending went down after 1991, spending on Public Safety actually
went up. Spending on Community Development went up as well, but to a much
lesser degree. Certain expenditures which had been classified as General
Government in 1991 -92 were reclassified as Community Development thereafter.
Similarly, expenses from narcotic asset seizure funds had previously been
classified as General Government, but they have since been reclassified as Public
Safety. Therefore the magnitude of the relative changes in these expenditure
categories is somewhat less than it would. appear from the raw numbers above.
2. The largest proportional reductions were in General Government and Capital
Projects. The trend in Capital Projects has now changed. It should be noted that
the Capital Projects spending depicted below . reflects general government
expenditures only. It does not include certain special revenue funds.
3. Most of the decline in total spending happened in 1991 -92. However, significant
one -time expenditures. resolving liability issues which took place in 1992 -93 cause
distortion in those figues. 1991 -92 was relatively "light" in liability expenditures.
4. The decrease in capital outlay was due to completion /winding down of some
major projects, combined with the intentional reduction in this area as an interim,;
short term response to revenue decreases. It was not the City's intention to sustain:
capital outlay expenditures at that reduced level, so the increased activity currently
being experienced was to be expected.
(The above chart reflects actual dollars, with no adjustment for inflation.)
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Enterprise Operations. The City had three enterprise operations at June 30, 1996:
. Water, Wastewater, and Cannery Village Parking. An analysis of the City Enterprise
Fund operations indicates the following results for fiscal year 1995 -96:
• The Water enterprise activity reported a net income of $1,494,349. Actual
operations produced a net surplus of $420,882.
■ The Wastewater enterprise activity reported a net income of $303,098. The
■ Wastewater Fund finished up the year with retained earnings of $3,005,780.
The Cannery Village Parking enterprise operation reported net income of $71,562
. for the fiscal year ended June 30, 1996, exclusively from operating income.
Defined Benefit Pension Plan. The City contracts with the California :.Public
Employee's Retirement System (PERS) for certain retirement, disability, death and
survivor benefits for full -time employees. The annual actuarial valuation by PERS
changes from year to year, and the City's contribution rates are modified accordingly.:
Deferred Compensation (Retirement) Plan for Part -Time Employees. In addition to.
■ the PERS retirement plan for full -time City employees, the City contracts with the
Public Agency Retirement System (PARS) to provide federally mandated retirement ,
benefits for part-time employees. Each part-time employee contributes 3.75 percent'
of salary, with the City contributing a matching 3.75 percent to this retirement system..
The City's contributions for each employee (and interest earned by the accounts) are
' fully vested immediatelyr.
Deferred Compensation Plan for Full -Time Employees. In addition to the City's
Deferred Compensation' Plan for part-time employees, the City offers a Deferred
Compensation Plan for full -time employees. This plan is designed to supplement the
employee's PERS Retirement Plan. The City's Deferred Compensation Plan forfull-
time employees is authorized under Internal Revenue Code Section 457, and„ it is
subject to all the limitations and restrictions of that code section. All full -time
. employees are eligible to participate in this plan on a voluntary basis.
. Cash Management. It is the City's policy to invest all temporarily idleshort term funds
and longer term reserves in a manner that will maximize return.without sacrificing
security or jeopardizing liquidity requirements. Idle funds are. invested in accordance
. with the Government Code and a formal investment., policy approved by the City
Council. The policy, which is reviewed and updated annually, allows investments in a
variety of specific instruments, as well as certain state, county, and private sector
investment pools and asset management services. Certificates of deposit, demand
deposits, bankers acceptances, U.S. Government and Agency Securities, repurchase
■ agreements, commercial paper, and the State's Local Agency Investment Fund are
examples.
0
xiii
E
Due to the fact that the volume of funds available for investment has decreased over
the past few years, as well as the fact that interest rates have remained relatively low,
investment earnings are not now as significant a portion of City revenue as they have
.
been in the past. In addition, the portion of those earnings allocated to the General
Fund has decreased in relation to the earnings of other funds. This is due to the
smaller daily cash balance in the General Fund. The City's plan to reconstitute
reserves will reverse this trend, but it is. not likely:to.have a significant favorable impact
in the immediate future.
■
During this fiscal year, the City, had none of its funds with Orange County for
investment with the Orange County, Investment Pool. As mentioned `above, some of
■
the losses resulting from the failure: of the Pool .and the subsequent County
Bankruptcy were absorbed by the City. These are-explained in detail in Note 14 to the
this Report.
General Purpose Financial Statementsn the Financial Section of ;.
The City's current investment strategy is to normally place most of the funds with four
private sector investment management firms. Each of;these intermedianes.is
constrained to an investment program at least as restrictive as the policy goverrnng
the `City's direct investments, Additionally, with regard. to the private sector firms, a1J
a
cash or securities managed by them on.the City's behalf are held by well. established::
and highly reputable third. party custodians. Smaller, more liquid portions of the!
■
portfolio are invested directly by City, staff or placed with the State Pool (LAIF).
Debt Administration. At year end, the.. City had a number of debt issues outstanding
.
These issues net of .applicable. unamortized discounts, ;included certificates of .'
participation of $7;090000; notes ;;payable; of $2,918733 .:and capital' leases of`:
'AA"
$81,394. Standard and Poor's Co[pgration assigned a rating to the certificates of,
participation
Risk Management. The City maintains 6'. risk management, program which.,, as a
combination of self- insured retention, excess insurance coverage, and written
policies. As part of this program resources are now.being.sef,aside in the In
Reserve Fund (as opposed to the General Fund) to meet current and potential.;losses.
On July 1, 1994, the City purchased excess: liability insurance cov;.T,:] of $10
.
million, with a self- insured retention.(SIR) of.,$1.. million per? occurrence..:On July 1,
1996, this coverage was increased to $20 million ...per occurrence with .a $1 million
SIR. On September 1, 1995, the City purchased excess, workers compensation and
employers liability insurance coverage of $300,000 per occurrence,:up to $1,000,000.
This coverage provides for work related accidents and diseases: Further policy and
.
administrative adjustments in the area. of Risk Management are anticipated.
General Fund Balance. The fund balance of the General Fund increased by $2.75
.
million during the fiscal year ended June 30, 1996, before the transfer of this balance
to the Contingency Reserve as required by City policy. This increase was due largely
■
to the factors described in the section above on Financial Information.
0
AV
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0 OTHER INFORMATION
■ Independent Audit. The City Charter and State Statutes require an annual audit by
independent certified public accountants. Accordingly, this year's audit was
completed by KPMG Peat Marwick, LLP. In addition to meeting the requirements set
forth in the City Charter, the audit also was designed to meet the requirements of the
Federal Single Audit Act of 1984 and related OMB Circular A -128. The independent
■ auditors' report on the general purpose financial statements and combining and
individual fund statements and schedules is included in the Financial Section of this
report, which immediately follows the Introductory Section. The independent auditors'
■ reports related specifically to the Single Audit are provided under separate cover.
Awards. Fiscal year 1990 -91 was the first time in the City's history that it prepared a
Comprehensive Annual Financial Report. It was therefore particularly gratifying that
the Report received both state and national awards for excellence in 'financial
■ reporting. The City was fortunate to receive both awards each year since. .
The Government Finance Officers Association of the United States. and Canada
(GFOA) awarded a Certificate of Achievement for Excellence in Financial :Reporting to
the City of Newport Beach for its Comprehensive Annual Financial Report for the fiscal`
■ year ended June. 30, 1995. The Certificate of Achievement is a prestigious national
award recognizing conformance with the highest standards for preparation of state :.
and local government financial reports.
• In order to be awarded a Certificate of Achievement, a government unit must publish
■ an easily readable and efficiently organized comprehensive annual financial report,
whose contents satisfy. both. generally accepted accounting principles and applicable
legal requirements.
A Certificate of Achievement is valid. for one year only. We believe. our current report
continues to conform to the Certificate of Achievement_ program requirements, and we
are submitting it to GFOA.
The California Society of Municipal Finance Officers (CSMFO) is'aestate organization
which sponsors extensive training and emphasizes high standards in alf aspects of
municipal finance operations, including financial reporting.. As a result -of last year's
report, the City of Newport Beach is fortunate to have remained among the ranks of
California cities which have met the rigorous standards of financial .reporting required
. of recipients of the CSMFO Outstanding Financial Reporting Award. We will be
submitting the report to CSMFO for consideration again this year as well.
COVER AND DIVIDER PAGES
The divider pages of this report contain examples of some of the boats and other
watercraft in Newport Harbor.
xv
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Certificate of
City of Newport :Beach,
. (- :alfnrnia
4;wtte w, 177U
A Certificate of Achieve rient.for :Excellence in R
Reporting is presented by the 'Government Finance
Association 1. at the. id`States and Canada'
government. units and public` rnployee rearem
systes whose comprehensive annual finarici
m
reports (CAFRs) achievelhe highest
standards in government accounting
and financial reporting:;
xvii
preside
Executive Director
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California Society of ■
Municipaf Finance Officers
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Certificate of Award ■
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Outstanding Financial Reporting 1994 -95
Presented to
City of Newport
This ccrtylove is tumid in recognhldn of meeting pmfesdional standards and criteria In reponing,whkh reflect a high kwl of quality ■
In the annualpnandal statements and Ln,ihe underlying a"ounfing system from which the reports were prepared.
February 26j 19W, ■
a.&�,i� ■
Char, ProjeWj Oaef d rtthatcWStandaeds canwcam�
- - Prea eat ■
X Dedicated to Excellence in Municlpal Financial Management X
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xviii
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■ NEWPORT BEACH CITY OFFICIALS
■ City Council
■
John W. Hedges
■ Mayor
Norma J. Glover Jan Debay Thomas C. Edwards
■ Council Member Mayor Pro Tem Council Member
■
%M a
Jean Watt Dennis D. O'Neil John C. Cox, Jr.
■ Council Member Council Member Council Member
. Principal Administrative Officers
Kevin J. Murphy
■���'' � ° "�` -
LaVonne M. Harkless City Manager Robert H. Burnham
City Clerk City Attorney
■
Sharon Wood ........... Assistant City Manager /Director of Community & Economic Development
■ Peggy Ducey .................................................. ............................... Assistant to the City Manager
Dennis C. Danner ...... ............................... .................Administrative Services Director/Treasurer
. Bob MCDonell ......................................................................... ............................... Chief of Police
Tim Riley ........................................................................ ............................... Fire & Marine Chief
David E. Niederhaus ............................................ ............................... General Services Director
LaDonna Kienitz ....................... ............................... Community Services Director /City Librarian
Don Webb ............................................ ............................... Public Works Director /City Engineer
. xix
C1*vTL SERVICE BOARD
r
BUiLDINC, CODF,
BOARD OP APPEALS
H PLANNING COMMISSION
II
II
II
I I
III ELECrO ATE III
MAYOR
COUNCIL
CrrY CLERIC T CrFY ATTORNEY
ASSISTANT
POLICE
I I Suppm15ervicea
N v.d
I I rmlre
percTtl�e.
Paking/Armval Gmvol
I I
I�
II
I PLANNING & BUILDING
L_ Gvrcnt Plaro 8 Nojuo Plan thedrlvg
Advance PI' ^^ t P.iu
Gde FiJon:cmcm Inapccfi.
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I PUBLIC WORKS
Prrye�!��mem
Iita(6c
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L---- - - - - --
INE
ELECTED
warm
WaNemtr
D «uical
al A Gar
CITY MANAGER
P-B.&R. COMMISSfON�
ARTS COMMISSION 1--I
J � I
II
LIBRARY BOARD
II
II
I�
I (
II
FIRE: & MARINE
Admtri d..
cxan ❑Ic�>7rda
OBIRaYOM
'fhl JanEs �iMm6b29
Pmventon
Balhoa Va< r imam I I
PacHa�vrdn
Paddrrg luu
M.aGticriale�a
C buciN'ormaoan Syatcm
COMMUNITY SERVICES
AdmiN vauvn J I
..y �Inve
❑Mary Scrv�ax
R«,radon I
Savors Prvgmms
GENERAL SERVICES
Na and Tr «a —J
.m.'. P ld 81 ?gcipmcm —
Mainrctiance
?nffi<Signn iF Marlir�yi a
Ncfirs< /gcryding
ADMINISTRATIVE SERVICES
P<nuvncl ddmwsva ria�
Ncxrae.
Benefi[Afevagement
Psuchas'vig
Pock Mareggrr����
Dam Y.vccasing
faLnr RCmnon.v
Tc{cronanamicatlorm
Acmunlurg
C buciN'ormaoan Syatcm
COUNC IL APPOINTED COUNCIL DEPARTMENTS
BOARDS & COMMISSIONS APPOINTED
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Financial Section
[Id] `
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■ KPMG; Peat Marwick LLP
■ Center Tower
650 Town Center Drive
■ Costa Mesa. CA 92626
■ INDEPENDENT AUDITORS' REPORT
• The Honorable Members of City Council
City of Newport Beach, California:
■
We have audited the accompanying general purpose financial statements' of the City of Newport Beach,
■ California (the City) as of and for the year ended June 30, 1996, as listed in the foregoing table of contents.
These general purpose financial statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these general purpose financial statements based on our audit.
■ We conducted our audit in accordance with generally accepted auditing standards and Goverment
Auditing Standards issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial
■ statements are free of material misstatement. An audit includes examining, on a test basis,, evidence'
supporting the amountsand disclosures in the general purpose financial statements. An audit also. includes'
assessing the accounting. principles used and significant estimates made by management, as well as:.
■ evaluating the overall financial statement presentation. We believe that our audit provides_a reasonable'
basis for our opinion,'
■ In our opinion, the general purpose financial statements referred to above present fairly, in all material
respects, the finannatposition of.the City of Newport Beach, California as of June 30, 1996 and the results
of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with
generally accepted accounting principles.
In accordance with.Government Auditing Standards, we have also issued a report dated October 25, 1996 on.
■ our consideration of the City of Newport Beach's internal control structure and a report dated 'October 25,
1996 on its compliance with laws and regulations.'.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements
■ takenas a whole. The accompanying combining'and individual fund 'and "individual account group financial
statements and schedules listed in the accompanying table of contents are presented for purposes of
additional analysis and are not a required part of the general purpose financial statements of thb.:City of
■ Newport Beach, California. This additional information is the responsibility of the management of the
City. Such additional information has been subjected to the auditing procedures applied in the audit of the
general purpose'. financial statements and, in our opinion, is fairly stated in all material ??respects when
■ considered in relation to the general purpose financial statements taken as a whole...
The statistical data listed in the foregoing table of contents is presented for purposes. of additional analysis
. and is not a required part of the. ;general purpose financial statements of 'the City. Such additional
information has not been subjected.to the:.auditing procedures applied in the audit of the general purpose
financial statements, and accordingly, we.express no'opiniomon it.
pin Mmot�lk
■
October 25,1996
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M?mce Fi1T al
" .. K °M61[IemaioN.l
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■ General Purpose
■ Financial Statements
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0 3
CITY OF NEWPORT BEACH
Combined Balance Sheet - All Fund Types and Account Groups .
June 30. 1996
Governmental Fund Types
4 0
Special
Debt
Capital
Assets and Other Debits
General
Revenue
Service
Projects
.
Cash and investments (Note 2)
$ 6,990,465
$ 14,716,045
$
$ 212,006
Accounts receivable and accrued revenues
1,918,501
551,928.
.
Lease Receivable
888,000
Due from other governments (Note 14)
2,397,767
3,796,449
Allowance for doubtful accounts (Note 14)
(446,381)
(343,417)
.
Due from other funds (Note 11)
4,556,282
Deposits with other agencies
Inventories of materials and supplies, at cost
139,614
.
Restricted assets- cash and investments (Note 2)
579,731
6,576,135
Other assets -
- 119,009
77,231
Notes receivable
200,000
.
Fixed assets "(Note 3)
Amount available in debt service fund
Amount:to`be provided.for payment
.
of general long -term debt.
Total Ass and Other,Debits
$ 15,875,257
$ 19,686,236
$ 579,731
$ 6,788,141
•
Liabilities, Fund Equity and Other Credits
Liabilities:
.
Accounts payable and accrued liabilities .
$ 1,215,828
$ 667,533
$; 776,111
Accrued payroll
1,323,336
1,390
Rue to other funds (Note 11):.
371,120
2,227,346
Deferred revenue
468,362
3,982,206
■
Due to bondholders (Note sj
Due to others
Deposits
1,637,057 ..
170,420
■
Deferred compensation (Note 7)
Current portion of debt (Note 4)
Long -term debt (Note 4)
.
Total Liabilities
4,644,583
5,192,669
3,003,457
Fund Equity and Other Credits:
■
Investment in general fixed assets
Contributed capital (Note 12)
Retained earnings (accumulated deficit)
.
Fund balances (Note 13):
Reserved - --
2,468,741
2,423,814
$:579,731
3,613,926
Unreserved, designated
8,761,933
12,274,295
170,758
.
Unreserved, undesignated
{204,542)
Total Fund Equity and Other Credits
11,230,674
14,493,567
579,731
3,784,684
Total Liabilities, Fund Equity
and Other Credits
$ 15,875,257
$ 19,686,236
$ 579,731
$ 6,788,141
See Accompanying Notes to General Purpose Financial Statements.
4 0
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.
Proprietary
Fiduciary
Fund Types
Fund Type
Account Groups
General
General
Internal
Fixed
Long -Terre
Totals (Memorandum Only)
■
Enterprise
Service
Agency
Assets .
Debt
1996
1995
$
16,882,724
$ 979,063
$ 29,193,103
$, 68,973,406
$ 73,259,225
.
3,304,949
8,370
5,783,748
4,610,171
888,000
962,000
2,543,302
'S J37 518.
6,616,620
.
(2,543,302)
. (3 333 100)
(3,582,175)
4,556,282'
i;; 1,366,962
^'631,284
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44,110
146,348
330,072
386,605
1,733,358
756,141
9645,365
6805,358
196,240
'82;829
.
200,000,.
'' 200,000
43,625,367
4;845,927
$ 74,009,174
122,480,468
109,186678;
579,731
579;731`'
561193`::
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9,510,396
9,510,396
9,941 342.:;
$
65,590,508
$ 5,979,708...
29,949,244
$74,0 09" 174
$ 10,090,127
1228,548,11261
$ 211 038 092
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.
$
2,989,233
$ 840,963
$ 6,489,668
$ 4,332 923 ,,.
49,644
118,362
1,492,732
1,869,975,::5
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585,961
1,270,165
$ 101,690
4,556,282
!:4,450,568,
1,366962
1,458 037
31347,130
3,3471:30
299297-;'
1,387 057
1 387,057
539177 t
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84,878
182355
2(()48,M
25,113,367
25,113,'W7
22,067,$90:
1,283,420
3,827,341
5110,761
8,982023
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15,435,000
12,239,555
$ 10,090127
"37,764,682
41,220,926
20,428,136
18,296,386
29,949,244
10,090127
:' 91,604,602
84,185263
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$ 74,009,174
741609,1174
73 352,063
14,208,087
4,097,648
f8,303.73&
17,996,975
.
30,956,285
(16,414,326)
14,6411 959;
12,371,377
9 086 212
4,410,543
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29,206,986
18,128,017
(204,542)
593,854
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45,162,372
(12,316,678)
74,009,174
136,943,524
126,852,829
$
65,590,508
$ 5,979,708
$ 29,949,244
$ 74,009,174
$ 10,090,127
$ 228,548,126
$ 211,038,092
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0 5
CITY OF NEWPORT BEACH
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances
All Governmental Fund Types
For the Year Ended June 30, 1996
Revenues:
Taxes
Licenses, fees and permits
I ntergovem mental revenue
Charges for services
Fines, forfeitures and penalties
Revenue from use of money and property
Contributions
Other
.Total Revenues
Expenditures:
Current:
General government.. .
Public safety
Public..works
Community development.
Community services .
Capital Outlay
Debt Service:'
Principal (Note 4)
,Interesfand fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
.Over (Under) Expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Proceeds from long -term debt
Proceeds from sale of fixed assets
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and
Other Financing Sources Over (Under)
Expenditures and Other Financing Uses
Governmental Type Funds
33,978
5,699,231 (4,895,683) 580,430
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2,746,427 1,907,312 18.538 .
Fund Balances, July 1 8,484,247 12,586,255 561,193
Fund Balances, June 30 $ 11,230,674 $ 14,493,567 $ 579,731
See Accompanying Notes to General Purpose Financial Statements. .
6 .
Special
Debt
General
Revenue
Service
$ 42,853,480
1,663,469
$ 1,388,644
4,728,973
3,586,570
6,020,272'
258,144
2,795,045
60,018
5,792,454
5,015,936 $
29,493
146,457
2,743,279
150,579
1,422
64,150,729
13,054,013
29,493
5,442,862
34,173,622
397,651
14,250,842
528,772
2,716,712
235,535
5,670,1.70
246,024
4,608,037
4,606,664
166,902
100,506
:145,000
74,386
135,866
446,385, .
67,103,533
6,251;018
5911385
(2,952;804)
6,802,995
(561,892)
61245,683.
580,430
(580,430)
(4,895,683) -
33,978
5,699,231 (4,895,683) 580,430
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2,746,427 1,907,312 18.538 .
Fund Balances, July 1 8,484,247 12,586,255 561,193
Fund Balances, June 30 $ 11,230,674 $ 14,493,567 $ 579,731
See Accompanying Notes to General Purpose Financial Statements. .
6 .
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Capital
Projects
$ 162,389
5,298,634
5,461,023
2,077,058
2,077,058
3,383,965
(1,100,000)
(1,100,000)
2,283,965
Totals (Memorandum. Only)
1996
1995
$ 42,853,480
$ 39;719,830
3,052,113
2;198,186
8,315,543
10,704,000
6;278,416
5,109,513
2,855,063
3,156,530
11,000,272
9;676,426
8,188;370
940;020
152,001
360,702
82,695,258
71,865,207.
5;442;862
5;5051610.
34,571;273
33,389,922.:
14,779,614
14, 661, 34 3."
;.2,952,247
3,336;672
5;g161194.
6; 8 57; 959 :
11,291,759
8,523,773:
.412 408
770,708 -
656,637
779,586
76,022,994' ",
72,82557.3
6,672,264
6,826,113
(6,576,113)
33,978
283;978:
6,956,242
(9601366)
6,171, 842
(7,183,M6)
5,3,865
(950,336)
(1,910, 702)
1,500,719 23,132,414 25,043,116
$ 3,784,684 $ 30,088,656 . $ 23,132,414
7
CITY OF NEWPORT BEACH
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
All Governmental Fund Types
For the Year Ended June 30, 1996
Other Financing Sources (Uses)
Operating transfers in
6,031,164
General Fund
214,519
Operating transfers out
(600,455) ,;
(580,430)
Variance
Proceeds from long -term debt
Favorable
Proceeds from sale of fixed assets
Budget
Actual
(Unfavorable)
Revenues:
5,456,209 `
5,699,231
243,022
Taxes
$ 41,048,230
$ 42,853',480
$ 1,805,250
Licenses, fees and permits
1,369,154
1,663,469
294,315
Intergovernmental revenue
4,878,657
4,728,973
(149,684)
Charges for services
6,268,392
6,020,272
(248,120)
Fines, forfeitures and penalties
2,945,000
2,795,045
(149,955)
Revenue from use of money and property
5,612,775
5,792,454
179,679
Contributions
263,731
146,457
(117,274)
Other
247,000
150,579
(96,421)
Total Revenues
62,632,939
64,150,729
1,517,790
Expenditures:
Current
General government
5,336,622
5,442,862
(106,240)
Publicsafety. ..
34,719,541
34,173,622
545,919
Public works .
14,464,834
14,250,842
213,992
Community: development
2,663,524
2,716,712
(53,188)
Community services
5.762,566
5,670,170
92.396
Capital Outlay
6,655,991'
4,608,037
2,047,954
Debt Service:.
Principal (Note 4) ...: .
166.902
166,902
Interest and fscal'charges .
11.678
74,386
(62,708)
Total Expenditures
69,781,658,
67,103,533
2,678,125
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(7,1.48,719)
;: ,(2;952,804)
4,195,915
Other Financing Sources (Uses)
Operating transfers in
6,031,164
6;245,683
214,519
Operating transfers out
(600,455) ,;
(580,430)
20,025
Proceeds from long -term debt
Proceeds from sale of fixed assets
25.500
33,978
8,478
Total Other Financing Sources (Uses)
5,456,209 `
5,699,231
243,022
Excess (Deficiency) of Revenues;
and Other Financing Sources
Over (Under) Expenditures
and Other Financing Uses
(1,692;510)
2,746,427
4,438,937
Fund Balances, July 1
8,484,247 8,484,247
Fund Balances, June 30 $ 6,791,737 $ 11,230,674 $ 4,438,937
See Accompanying Notes to General Purpose Financial Statements.
0
■
■
■
■
■
■
■
0
0
. 9
Special Revenue Funds
Debt Service Fund
■
Variance
Variance
Favorable
Favorable
Budget
Actual
i (Unfavorable)
Budget
Actual
(Unfavorable)
.
$ 1,444,685
$ 1,388,644
$ (56,041)
.
14,131,965
3,586,570
(10 :545,395)
256,175
258,144
1,969
.
134,360
4,571,900
60,018
5,015,936
(74.342)
444036,
$ 28,493.
$' 29493 (,
7,685,000
2,743,279
(4,941,721)
.
1,OOD
1,422
422
28,225,085
13,054,013
(15;171:072)
29,493
,:= 29,493
477,579
397;651
79,928
.
331,881
528,7.72
(196,891)
765,691
235,535
530,356
311,696
246,024
65,674 .
.
15,441,664..
4606,664
10,835,000:
.
100,506
135,874
100;506
1135,866
$ 145 000
446,385
145;O00
446;3$5
$
17,565,093
6,251,016
11,314,075
r 591,385
591385
10,659,992
6,802,995
`(3,856,997) .
(591,385)
{561892j` „'
29,493
•
580,430
580 430
(4,741,411)
(4,895;683)
(154,272),
.
.
(4,741,411)
(4,895,643)
(154,272)...
" "580,430
580;430
5,918,581
1,907,312
(4;011,,269)
(591,385)
18,538
609,923
.
12,586,255
12,586,255
561,193
561,193
$ 18,504,836
$ 14,493,567
$ (4,011,269)
$ (30,192)
$ 579,731
$ 609,923
.
(Continued)
. 9
CITY OF NEWPORT BEACH
Combined Statement of Revenues,
Expenditures and Changes in Fund Balances
.
Budget and Actual
All Governmental Fund Types (Continued)
For the Year Ended June 30, 1996
.
Capital
Projects Funds
Variance
■
Favorable
Budget
Actual
(Unfavorable)
Revenues:
.
Taxes
Licenses, fees and peirnits
Intergovernmental revenue
.
Charges for services
Fines, forfeitures and penalties
Revenue from use of money and property
$
162,389
162,389
.
Contributions
333,593
5,298,634
4,965,041
Other
5;127,430
5,461,023
Total Revenues
333,593
Expenditures:
Current:
■
General government
Public safety.. -
Public works!.
Community development
Community services .
Capital Outlay
7,885,217
2,077,058
5,608,159
.
Debt Service'...;
Principal (Note .4)
Interest fiscal.charges..
.
and
Total Expenditures.
7,885,217
2,077,058
5,808,159
"
■
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(7,551,624) _
3.383,965
10,935,589
Other Financing Sources (Uses):
.
;Operating transfers in
Operating transfers out
(1,10000) - ',(1,100,000)
Proceeds from long -term debt
.
Proceeds, from sale of fixed assets
Total Other Financing Sources (Uses)
(1,100,000)
(1,100,000)
.
Excess (Deficiency) of Revenues
and Other Financing Sources
Over (Under) Expenditures
.
and Other Financing Uses .. ..
(8,651.624)
2,283,965
10,935,589
Fund Balances, July 1
1,500,719
1,500,719
.
Fund Balances, June 30
(7,150,905) $
3,784,684
10,935,589
See Accompanying Notes to General Purpose Financial Statements.
.
10 0
■
■
■
■
■
■
Totals (Memorandum Only)
Variance
Favorable
Budget
Actual
(Unfavorable),
$ 41,048,230
$ 42,853,480
$ `1.805,250
2,813,839
3,052,113
238,274
19,010,622
8,315,543
(10,695;079)
6,524,567
6,278,416
(246,151)
3,079,360
2,855,063
(224,297) -
10,184,675
11,000,272
815,597
8,282,324
8,188,370
(93,954)
248,000
152,001
(95,999)
91,191,617
82,695,258
(8;496,359)
5,336,622
5,442,862.
(106',240) ..
35,197,120
34,571,273
6251847
14,796,715
14,779,614
17,101
3,429,415
2,952,247
497,168
6,074,264
5,916,194
158,070. .
29,982,872
11,291,759
18,691,113.
412,408
412,408
593,937
656;637
(62700) ;
95,823,353
76,022,994
19,800,359':"
(4,631,736)
6,672,264
11,304,000: '
6,031,164
6,826,113
794,949
(6,441,866)
(6,576,113)
(134,247)
25,500
33,978
8,478
(385,202)
283,978
669,180
(5,016,938) 6,956,242 11;973,180
23,132,414 23,132,414
$ 18,115,476 $ 30,088,656 $ 11,973,180
11
CITY OF NEWPORT BEACH
Combined Statement of Revenues, Expenses
and Changes in Retained Earnings
All Proprietary Fund Types
For the Year Ended June 30, 1996
Internal
Enterprise Service
Operating Revenues:
Charges for services $ 16,851,927 $. 7,220,715
Other 171,319 11,223
Total Operating Revenues 17,023,246 7,231,938
Operating Expenses:
Purchase of water
Salaries and wages
Depreciation
Professional services
Maintenance and supplies
Fleet parts.and supplies
Systems maintenance
Workers' compensation'
Claims and judgments.
Compensated absences
Other. .
Total Operating. Expenses.
Operating Income
Nonoperating. Revenues.(Expenses):
Intergovernmental. revenue
Interest income
.,Other income
Gain on sale of fixed assets
Interest expense
Bond issuance cost
Irivestment losses
Total Nonoperating
Revenues (Expenses)
Income (Loss) Before
8,141,732
7,255,987
2,592,691
935,387
1,850,626
1,008,235
1,310,999
55,282
790,876
150,525
16,355,441
404,069
1, 066, 507
7,255,987
3,528,078
2,473,017
2,858,861
456,599
1,066,507
1,337,344
602,010
3,748,998.
16,355,441
6,820,458
667;805
411,480
31,110 12,953
1.,440,412
34,956
164,854'
(305,274) (371714)
1,201,204 140,093
Operating Transfers 1,869;009 551,573
O f t f
pera ing rans ers
Operating transfers in
Operating transfers out
Total Operating Transfers
Net Income (Loss)
Retained Earnings
(Accumulated Deficit), July 1
(250,000)
(250,000)
1,869,009 301,573
29,087,276 (16,715,899)
Retained Earnings
(Accumulated Deficit), June 30 $ 30,956,285 $ (16,414,326)
See Accompanying Notes to General Purpose Financial Statements.
12
Totals (Memorandum Only)
1996 1995
$ 24,072,642 $ 21,424,827
182,542 2,911,241
24,255,184 24,336,068
8,141,732
7,255,987
3,528,078
3,870,815
2,858,861
2,863,327
1,366,281
997,816
941,401
927,804
404,069 ' .
419,766.
1,066,507
622,580:
2,473,017
3,748,998.
456,599
636,834 ..
1,337,344
1,854,378 -:
602,010
651,279 <
23,1.75,899
23,849,584
1,079,285
486,484,
44,063
109,707 ..
1,440,4.12
1,178,284
34,956
164,854
60,2401: 1
(342,988)
(374,671)
(396,230)
(2,739,911)
■
1,341,297 (2,162,581) .
2,420,582 (1,676,097) .
1,373,797
(250,000) (362,373)
(250,000) 1,011,424
2,170,582 (664,673)
12, 371, 377 13, 036, 050
$ 14,541,959 $ 12,371,377
0
0
m
0
0
0 13
M
CITY OF NEWPORT BEACH
Combined Statement of Cash Flows
.
All Proprietary Fund Types
For the Year Ended June 30, 1996
Internal
■
Enterprise
Service
Cash flows from operating activities:
Operating income $
667,805
$ 411,480
.
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities: .
Depreciation
1,850,626
1,008,235
.
Intergovernmental revenue
31,110
12,953
Other revenue
34,956
Changes in operating assets and liabilities:
.
(Increase) decrease in accounts receivable
.. (220,032)
(Increase) decrease in due from other governments
196,609
Increase (decrease) in allowance for doubtful accounts
(196,609)
.
(Increase) decrease in accrued revenue
41,564
(Increase) decrease in deposits with other agencies
631,284
(Increase) decrease in inventories of materials and supplies, at cost
7,706
.
(Increase) decrease in other assets
- - Increase(decrease)in accounts - payable..
1,193,144
648,084 .
... Increase(decrease) in. accrued payroll
Increase (decrease) in.dua to other funds
(75,861)
1,256,836
.
Increase (decrease)`JR deposits
(12;965)
Increase (decrease)in workers' compensation
330,362
Increase (decrease) in general liability
(1,975,000)
.
Increase (decrease)in.compensated absences
(71.994)
Total adjustments
2,800,978
1,890;030
■
Net cash provided by operating ,activities
3,468,783
2,301,510
Cash flows from noncapital financing activities:
Operating transfers from otherfunds
.
Operating transfers,to otherfunds
(250,000)
Net cash provided by (used for) noneapital financing activities
(250,000)
Cash flows from capital and related financing.actrwties' '
■
Acquisition of capital assets
(12,505,445)
(1,805,169)
Principal payment
(820,000)
(291,728)
Proceeds from sale of capital assets
245,846
.
Proceeds from bond issuance
Interest paid - -
-- (898,878)
(37,714)
Net cash used for capital and related financing activities
(14,224,323)
(1,888,765)
■
Cash flaws from investing activities:
Interest on investments - - -
Loss on investments
1.,440,412
.
Net cash provided by (used for) investing activities
1,440,412'
Net increase (decrease) in cash and cash equivalents
(9,315128)
162,745
.
Cash and cash equivalents, July 1..
`27,931,210
816,318
Cash and cash equivalents, June 30 $
18,616,082
$ 979,063
Noncash Activities:
■
Contributed capital (Note 12) $
306,760
$ -
Capitalized interest $
571,566
$ -
.
Acquisition of equipment by capital leases $
-
$ 387,592
See Accompanying Notes to General Purpose Financial Statements.
.
14
■
0
m
.
Totals (Memorandum Only)
1996
1995
.
$
1,079,285
$
486,484
■
2,858,861
2,863,327
44,063
34,956
109,707
•
(220,032)
(307,875)
196,609
(2,739,911)
.
(196,609)
2,739,911
41,564
(20,335)
631,284
.
7,706
23,238
81 .
1,841,228
402,820
■
119117
1,180,975
(160;422)
(12,965)
:(6;137) ..•
330,362
(21;429)
(1,975,000)
(3085,340)
(71,994)
213;416
■
4,691,006
%.l 30;168
5,770,293
616;652.
.
1;373;797
(250,000)
(362;373)
(250,000)
1,011,424
(14,310,614)
(4,858,419)_
.
(1,111,728)
245,846
(212 -,895)
60,240 - --
--
16,703,770
(936,592)
(374,671)
(16,113,088)
11,318,025 '
1,440,412
1,148,685
.
(2;739,911)
1,440,412
(1,591,226)...
■
(9,152,363)
11,354;875
28,747,526
17,392,653
.
$
19,595,145
$
28,747,528
$
306,760
$
60,580
.
$
571,566
$
460,458
$
387,592
$
453,772
J
■ 15
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
Addli0 Notes to
Financial X00
Statementsdo X00
CITY OF NEWPORT BEACH
■ Notes to General Purpose Financial Statements
June 30, 1996
• (1) Summary of Significant Accounting Policies
■ The financial statements of the City of Newport Beach (the "City ") have been prepared in
conformity with generally accepted accounting, principles ( "GAAP ") as applied to
government units. The Governmental Accounting Standards Board ( "GASB ") is the
. accepted standard - setting body for establishing governmental accounting and financial
reporting principles. The more significant ofthe City's accounting policies are described
below.
■ Description of Reporting Entity
■ The City of Newport Beach was incorporated on September 1;1906 as;a charter city in the
State of California. The City operates under a Council- Managecform of government and
provides the following services: ,public safety (police, fire and marine) highway and
. streets, cultural and recreation, public improvements, planning and zoning utilities; and
general administrative: services:
. The financial statements present the financial activity of the -City of Newport Beach (the
primary government) and its :component unit. The component unit, discussed'; below is
included in thetity's reporting entity, because of the significance of'its operational oF.
. financial relationship:with the City:., This'entity is legally separate from the City., However,;
the City of Newport Beach's elected officials have continuing full or partial accountabili,
for fiscal matters of the component unit. The financial reporting entity consists bf: (1)
. City, (2) organizations for which the City. is financially accountable and, (3) organizations(.
for which the...nature.and..significance of their relationship ;with the City are such that,
exclusion would . cause the City's financial statements to be misleading or incomplete
• An organization is t. caily dependent on the primary government if it is unable to'adopt its`
budget, levy taxes or set rates or charges,, or issue bonded debt without approval by the'
. primary government. In a blended presentation a component units' batanceS and
transactions are reported in a rnanpersimilarto the balances and transactions of the City.
Component units are presented on a blended basis when the component unit's governing
. body is substantially the. same as ;the City's .or the component unit provides,services
almost entirely to the City.
. Blended Component Unit
The financial statements of the City of Newport Beach include the financial activities of the
■ Newport Beach Public Facilities Corporation (the "Corporation) The.:Corporation was
formed on March 9, 1992, for the, purpose of assisting the City of Newport Beach in the
financing of public improvements, including a public library The ii*ration is governed
. by a Board of birectorscomprised of seven individuals appointed by the City Council of
the City of Newport Beach -The Corporation's fin anciai:data'and transactions are included
in the debt service fund, capital projectsfunds and general long-term debt account group.
. Separate financial statements are not prepared for the Corporation.
■ Basis of Presentation - Description of Funds and Accounting System
The City uses funds and account groups to report its financial position and results of
. operations. Governmental accounting systems are organized and operated on a fund
17
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements .
June 30, 1996
basis. Fund accounting is designed to demonstrate legal compliance and aid financial
management by segregating transactions related to certain City functions or activities. A
fund is defined as an independent fiscal and accounting entity with a self - balancing set of ■
accounts recording cash and other financial resources, together with all related liabilities
and residual equities or balances, and changes therein, which are segregated for the
purposes of carrying out specific activities or attaining certain objectives in accordance ■
with special regulations, restrictions.or limitations.
The combined financial statements in this report are grouped into three broad fund ■
categories containing seven generic fund types and into two account groups as follows
Governmental Fund Types ■
General Fund - The General Fund is the general operating fund of the City.:;,The
General Fund is used to account for all financial resources, except those required to .
be accounted for in another fund.
Special Revenue Funds -The Special Revenue Funds are used to account for the .
proceeds of specific revenue sources or to finance specified activities as required, by .
law or administrative regulation.
Debt Service Fund -.The Debt Service Fund is used to account for the accumulation •
of resources required fouthe payment of general long -term debt principal and], ■
interest
.G'.anital Proiocte'.Fiinris.- Thm r.nnital Prniart Fiinrls are imprl to account for financial .`
resources:us cl for the acquisition or construction of major capital facilities .other than :
.
those financed by proprietary funds.
Proprietary Fund Types,: '
.
Enterprise Funds - The Enterprise Funds are Used to account for operations that
provide services to the general public which are.fnanced primarily by user charges
or where the periodic measurement of net income is deemed appropriate.
Internal Service Funds - The Internal Service`Funds are used to account for the
claims and judgments, compensated absences and equipment maintenance cost of
service provided by one department of the City to other departments on a cost-
■
reimbursement basis.
Fiduciary Fund Type,::.
.
Agency Funds - The Agency Funds ate used to account for assets held by the City
as an agent for individuals, private organizations or other governmental units and /or
.
otherfunds.
0
0
18
CITY OF NEWPORT BEACH
. Notes to General Purpose Financial Statements
June 30. 1996
■
Account Groups
■
General Fixed Assets Account Group - The General Fixed Asset Account Group is
used to account for the cost of,capital assets owned by the City, other than those of
the proprietary funds.
•
General Long Term Debt Account Group The General ong -Term Debt Account
Group is used to account for long -term, debt of the City, exeept.for indebtedness
.
related to the proprietary fund types.
Measurement Focus
.
The accounting and financial reporting treatment applied to a fund is deterinined.;,by its
measurement focus. All governmental funds are accounted,for using a currentAnancial
resources measurement focus. With this measurement focus; .only expendable financial
resources and current:liabiliiies:generally are included on the balance ; sheet> Operating
statements of these funds present increases (i.e., revenues and other financing, sources)
and decreases;;( i.e., expenditures. and other financing uses] in net financial, resources;.
Recognition of governmental fund type.r.evenues represented by non - current receivables.
.
are deferred until they. become current.
All proprietary;iunds are. accounted. for on a flow of economic resources measurement4.
■
focus. With this measurement focus;, all assets and all liabilities associated with thee.
operation of these included': the balance sheet. 'Fund'; equity (Le nef`
,funds are. on
economic resources). is segregated, into contributed capital and retained earnings;
components Proprietary fund -type operating statements present? increases (e g
revenues) and decrea in resources. ;
so( e.g.; expenses) net economic
Fiduciary fund types are accounted for according to the nature of the fund The City has
only Agency type fundswhich are;purely custodial in?nafure (assets'equal liabilities) and,
thus, do not involve measurement.of results of operations
Basis of Accounting
The modified accrual basis of accounting is followed for the governmental and fiduciary
fund types (General, Special Revenue,. Debt Service, Capital Projects and Agency Funds).
Under the modified accrual basis of accounting, revenues are 'recogmzed when they
become susceptible to accrual, that is, measurable., and available to fnanceexpendtures
of the current period or soon thereafter to be used to pay liabilities W tte current period.
The City considers property taxes as available if they are remitted within 60 days after
year end. Sales taxes collected and held by the State arecorsidered susceptible to
■
accrual.
Other revenues considered susceptible to accrual include interest income and charges for
services. Licenses and permits, fines, forfeitures and penalties excluding amounts
received from other governmental agencies, and other taxes are not susceptible to accrual
because they are not measurable until received in cash. Grant funds earned but not
received are recorded as receivables, and grants received before the related revenue
recognition criteria have been met are reported as deferred revenues. Expenditures are
19
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements .
June 30, 1996
I
N
20
•
recorded when the related fund liability is incurred, except that principal and interest on
general long -term debt are recognized when due.
•
The accrual method of accounting is followed by the City's proprietary fund types
(Enterprise and Internal. Service Funds). Proprietary fund types are accounted for on an
"income determination" or `'cost of service" measurement focus. Accordingly, all assets
.
and liabilities are included in their respective balance sheets, and the reported fund equity
(total reported assets, less total reported liabilities) provides an indication of the economic
net worth of the fund. Operating statements for proprietary fund types (on an income
■
determination measurement focus) report increases (revenues) and decreases (expenses)
in determining total economic net worth. Under this determination, unbilled service
receivables are recorded at year -end. Governmental entities have the option to apply
■
applicable standards of either the Financial Accounting Standards Board ( "FASB ") or the
;Governmental Accounting Standards Board ( "GASB ") issued on or after November 30,
1989 for proprietary fund types. The City has elected to apply the standards set forth by
.
GASB:
Budgetary Control and Accounting
.
The City adheresto. the following . general procedures in establishing the budgetary data.:
reflected m the financial statements:
.
• During April, the City Manager submits to the City Council a proposed operating,,':
budget for. the fiscal year commencing the following July 1. The operating
■
budget includes proposed expenditures and the means of financing them.:
.
Public. hearings are conducted at City Council meetings to obtain taxpayer;.
comments Prior to July .1 the budget is legally adopted through passage of an"
■
% appropriation resolution.
Budgets are adopted on an annual basis iconsistent with generally accepted
.
accounting- principles for all governmental funds:
• The budget is formally integrated into the accounting system and employed as a
■
management control device during -the year. .
* The City Manager is authorized to transfer budget amounts between accounts
.
within a fund. Transfers; of appropriations between funds or transfers other than
those authorized above may be made only by the authority of the City Council.
The legal level of budgetary control is the fund level. Total fund expenditures
■
May not exceed total fund budgeted amounts without approval from the City
Council.` :.
•
• Budgeted expenditure amounts used in the combined financial statements are
the final adjusted amounts.. Revisions made to the original expenditures budget
for each fund type were as follows:
■
I
N
20
CITY OF NEWPORT BEACH
. Notes to General Purpose Financial Statements
June 30, 1996
•
Original Adjusted
Budget Revisions Budget
.
General Fund $66,778,007 $3,003,651 $69,781,658
Special Revenue.Funds 27702,895 (10,137,802) 17,565,093
Debt Service Fund 591,385 591,385
■
Capital Project Funds 4,255,258 3,629,959 7,885,217
• At fiscal year -end, budget appropriations lapse. Incomplete capital project
■
budget appropriations are re- budgeted in the following fiscal year by Council
action and are 'included 'in the revisions noted above. Projeots.that are not
started during the budget year are reevaluated m "the following year.
•
• Encumbrances represent commitments related to unperformed contracts for
goods and -services.. The City utilizes an encumbrance system as a
■
management control technique to assist in controlling expenditures Under; #his
system, encumbrance accounting for the expenditure of funds .is reco Mod ;in
order to indicate outstanding commitments and is employed:in the.govemmental
■
fund types. Encumbrances outstanding at year -end are reported as reservations.
of .fund balances.; since ,they. do, not constitute, `expenditures or. liabilities.
Encumbrances. and their r "elated budgets are honored in the subsequent year tb
.
fulfill these commitments and are presented as revisions to the original adopted
budget.
■
Cash and Cash Equivalents
For purposes of..Statement of Cash Flows, cash and, cash equivalents are defined to be,
.
cash on hand' deposits :and highly liquid investments with a maturity of three;
months orJess.<from she: date of. purchaseFor financial statement presentation purposes;:
cash and cash equivalents are "shown as cash and'litvestmertts and. °restricted cash and'
„_.
investments in the proprietary funds;:
Investments
•
Investments are stated at lower.of amortized cost or market, except for investments of the
deferred compensation plan which are stated at market value.
.
Cash and investments are pooled to maximize investment. yields Interest eamed on the
investments is all to the - .respective funds based on.;each funds average monthly
.
cash and investments balance,'
Lease Receivable
.
Lease receivable represents lease payments., due on :'property donated. to the City during
fiscal year 1993. The lease term `omthis property runs through fiscal year 2007. As the
■
revenue recognition criteria have not been met, a corresponding deferred revenue has
been recorded.
0
21
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements .
June 30, 1996
N
0
22
•
Notes Receivable
Included in notes receivable is a $200,000 loan to the City Manager to purchase a home in
.
the City. The employment contract with the City Manager requires the Manager to reside
in the City and provides City assistance in acquiring a residence. The loan to the Manager
is an equity sharing loan and is due within six months after termination of the employment
.
contract.
Inventories
.
Inventories are valued at cost, which approximates market, using the first -in, first -out
method. The City follows the consumption method for inventory control. The costs of
■
governmental fund type inventories are recorded as expenditures when consumed.'
General Fixed Assets
■
The general fixed assets of the.City are accounted for:in a separate self - balancing account
group described as the "General Fixed Assets Account Group ". These general fixed
.
assets are capitalized at historical cost or estimated historical cost if actual: historical cost
is not available:. ^Donated fixed assets are valued at their estimated fair market value on -.:
the date donated .Fixed assets acquired through lease obligations are valued at the >.
.
present value..of future lease payments at the date acquired. Assets in the general fixed =:.
asset account group arebot depreciated.
.
The City has elected not to capitalize the cost of building or acquiring infrastructure fixed ..
assets (e.g streets curbs and gutters, storm drains, sidewalks and light,:
,bridges,
inancal
systems) Consequently;. these items are not reflected in the City's combined financial'
■
statements.
Proprietary Funds Fixed Assets ..
■
Fixed assets of the City's Proprietary Funds are recorded at historical cost or estimated
historical cost, if actual historical co §t is not available. Contributed fixed assets are valued
■
at their estimated fair market value on the date of contribution. For debt financed;fixed
assets, interest incurred during the construction phase is reflected in the capitalized value
of the: asset constructed, net of interest earned on`the invested proceeds over the same
period. During fiscal year 1995 -96, $876,840 of interest expense net of $305,274 interest
income was capitalized.
.
Depreciation is,.charged over the estimated useful lives using the straight -line method.
The City charges depreciation of contributed assets to retained:earnings. The estimated
useful lives are as follows:`
.
Assets Years
Structures 50 to 75
■
Equipment 4 to 15
N
0
22
CITY OF NEWPORT BEACH
. Notes to General Purpose Financial Statements
June 30, 1996
• Claims and Judaments
. The City accounts for material claims and judgments and associated legal and
administrative costs when it is probable that the liability claim has been incurred and the
amount of the loss can be reasonably.. estimated.. The City records the estimated loss
liabilities in the Internal Service "Fund. Included therein are claims incurred but not
reported, which consists of (a) known loss events expected -to be presented as claims
later, (b) unknown toss events.that.are expected to become claims, and (c) expected
future development on claims already reported. This is based upon; historical actual
results that have established a reliable pattern. Small dollar claims and tudgment:
recorded as expenditures when paid.
Capital Leases
The City accounts for lease- purchase agreements as capital leases when title transfi
the City at the end of the lease term or the lease contains :a bargain,purchase o}
Therefore, the capital leases are. recorded at the present value of the future mini
lease payments :as of the date of their. inception. Capital leases used for financing ge
fixed assets are: recorded both as capital outlay: and other financing sources Capital
payments.are accounted for in a manner consistent with general debt obligations.
Property Taxes..
The assessment, levy and.collection of property taxes are the.responsibility cf the,,G
of Orange The City. .:records propeity;taxes as revenue when received` from : 'the Cc
except at year-.end, when property;texes received within 60 days are accruedcas rev(
Property taxes'.are. assessed andcollected each fiscal year: - according "to,the follc
property tax calendar:
Lien date. March 1
Levy:date July 1
Due dates November 1 - 1 st installment
March 1 2nd installment
Collection dates ' December 10 1st installment
April 10,--2nd installment
Compensated Absences
are
to
It is the City's policy to permit employees to' accumulate`earned but unused vacation and
limited amounts of earned but unused sick leave benefits which vrnll be +paid to employees
upon separation from :City service. Beginning in fiscal year. b0b the City adopted a
general leave plan to replaceahe.traditional vacation and sick leave plan. The general
leave plan permits a maXimum of three year's accrual for'every employee, above which
the excess is paid out as current c6rnpensation. All employees hired prior to January 1,
1990, were given the option of remaining in the traditional vacation and sick leave plan or
enrolling in the general leave plan. All employees hired on or after January 1, 1990, are
automatically enrolled in the general leave plan. Compensated absences are accrued in
the Internal Service Fund when employee services have been rendered and when it
becomes probable that the City will compensate the employees for benefits through paid
23
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 1996
•
time off or cash payments at termination or retirement. Benefits that have been earned
but are not yet available for use because employees have not met certain conditions are
accrued to the extent it is probable that the employees will meet the conditions for
■
compensation in the future.
Deferred Revenue
■
Deferred revenues are those where asset recognition has been met, but the revenue
recognition criteria has not been met.
■
Memorandum Only -Total Columns
"Memorandum
■
Total columns on the combined statements are captioned Only ". to indicate
that they are presented only to facilitate financial analysis. Data in these columns do not
present financial position, results of operations, or cash flows in conformity with generally
.
accepted accounting principles. Neither is such data comparable to a consolidation.
Interfund eliminations have not been made in the aggregation of this data.
•
(2): Cash and Investments
The City has.elected to pool all cash and investments of all funds, except for funds;.,:,
.
required to be held by :outside fiscal agents under the provisions of certificates of
participation and investment funds in its deferred compensation plan.
•
Cash and investments at June 3.0, 1996 consisted of the following:
Unrestncted. cash and. investments:
.
Pooled cash deposits $ (595,145)
Pooled investments 44;353,494
Investments - deferred compensation plan 25,215,057
Total unrestricted cash and investments ,: 68,973,406
Restricted cash and investments:
■
Cash and investments with fiscal agents 9,645,365
Total cash and investments $78,618,771
Authorized Deposits /Investments
■
Under the provisions of the City's investment policy, and in accordance with Section 53601
of the California Government Code, the City may deposit and invest in the following:
.
• Certificates of Deposit.(oETime Deposits):
• Negotiable Certificates of Deposit
.
• Bankers Acceptances
• U.S. Treasury Issues
• Federal Agencies Securities
■
• Commercial paper
• Repurchase Agreements and Reverse Repurchase Agreements
24
CITY OF NEWPORT BEACH
. Notes to General Purpose Financial Statements
June 30, 1996
■
• Passbook Savings Accounts
6 Local Agency Investment Fund (State of California Investment Pool)
■
• County Investment Pools (Los Angeles and Orange)
• Medium Term Notes .
• Asset - backed securities..
■
• AsseUlnvestment Management Agreements
Deposits
■
Deposits consist of cash and demand deposits accounts. . Deposits n . .. banks are
maintained in financial institutions which provide Federal Depository Insurance
■
Corporation protection on the bank'balances. The California Government Code :requires
California banks and savings and loan associations to secure a city's deposits by pledging
government securities as collateral. The market value of pledged securities-must 6qual at
■
least 110% of a city's deposits. California law also allows financial institutions to. s ®cure
city deposits by pledging first trust deed mortgage notes:having a value of 15t)% of 4:6 "s
total deposits. The City may ,waive. collateral .requirements for deposits which are fully
.
insured up to $100,000 by federal depository insurance.
The City s deposds at year end are categorized below to give an indication of the level of
.
credit risk. assumed by the Cii y. in three categories as follows:
Category 1 Insured or.collateralized with securities held by the City or by ft
.
agent in the City's name.
Category 2 Collateralized with securities . held by the pledging financial
.
institution's trust department or agent in the City's ,name
■
Category 3 Uncollateralized
As of June 30;1996, the City's deposit balances were.ias follows
Category Bank Carrying
1 2 3 Balance Amount
Petty Gash $5,041
Deposits:
Demand; deposits $240,99:4 $668,978 $899,972. 60( 0,186)
Total*deposits,: , $240,994 $658,978 $ $899;972 $ 59( 5,145)
Investments
■
The investments that are represented by specific identifiable investment securities are
classified as to credit risk by three categories as follows:
.
Category 1 Insured, registered, or securities held by the City or its agent in the
City's name.
25
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 1996
Category 2 Uninsured and unregistered, with securities held by the
counterparty's trust department or agent in the City's name.
Category 3 Uninsured and unregistered, with securities held by the counterparty
or by its trust: department or agent but not in the City's name.
The City's investments at June 30, 1996, are summarized below for the credit risk,
carrying amounts, and market1contract values:
fiscal agents:
Mutual funds*
Deferred compensation fund:
Deferred annuities* '
Mutual funds"
Total deferred
compensation investments
* Not subject to categorization.
$9,645,365 $9,645,365
$343,138 $343,138
24,871,919 24,871,919
$25,215,057 $25,215,057
At no time during the fiscal year did the City borrow funds through the use of reverse -
repurchase agreements.
26
Category
Carrying.
Market/Con-
1
2 3
Amount
tract Value
Pooled investments:
U.S. Treasury Notes: $10,438,910
$10,460,394
$20,899,304
$20,688,122
Federal Home Loan Bank
988,290
1,993,358
2,981,648
2,984;911
Federal Home Loan
Mortgage-Corporation
:3,492,846
3,492,846
3,492562
Federal.Farm>Credit Bank
502,541
502,541
499,245
Federal National Mortgage'
Association
3,475;220
1,479,922
4,955,142
4,911,926
Money market: funds*
4,279,179
4,279179
Repurchase;agreement
550,000
550,000
550,060.
Medium. Term Notes .
2,019,690
1,826;729
3,846;419
3,805,714:
Commercial'Paper .
1,250,075
1,250,075
1
1,250,0
State of: California:
:"
Local Agency .
Investment Fund`
1,526,154
1.5261, 154
Los Angeles County
Pooled Fund* ':
70,186
70;1;86
Total pooled'
investments $21,665 031
$16 812;944;:$ -
$44,353,494
$44 058074
Investments with
fiscal agents:
Mutual funds*
Deferred compensation fund:
Deferred annuities* '
Mutual funds"
Total deferred
compensation investments
* Not subject to categorization.
$9,645,365 $9,645,365
$343,138 $343,138
24,871,919 24,871,919
$25,215,057 $25,215,057
At no time during the fiscal year did the City borrow funds through the use of reverse -
repurchase agreements.
26
CITY OF NEWPORT BEACH
■ Notes to General Purpose Financial Statements
June 30, 1996
•
(3) Fixed Assets
.
A summary of the changes
in General
Fixed Assets is
as follows:
Balance
Balance
■
July 1,199
Additions
Deletions
June 30, 1996
Land
$24,580,998
$24,580,998
.
Structures
38,421,877
$489,331
38;911,208
Equipment
10,349,188
178,257
$10,477
10;516,968
$73,352,063
$667,588
110477
$74 009,1174
■
A summary of the changes m the Proprietary Fund Type fixed assets
are as follows
Balance
Balance
.
July 1; 9995
Additions
Deletions
June 30, ;1996;
Enterprise Funds.. .
.
Land
$3,055,613
$3,Q55,613
Structures ::
66,396,045"
$18,221,882
$156,925
84,461;00.2 `
Equipment.. .:,
620;249..
50,922
671,471
■
Construction in
progress
4 889 033
4,889,033
..74,9601940
18,2721804
5,045,958
88,187,7811.
Less accumulated
depreciation
(42,868,718j"
(1,850,626);:
•.: (156925)
(44,562,419) ;?
■
Net
$32092,222
$16,422178
- `$4,889;033
$43,625,367
Internal Service Funds:
Equipment
$6,203,567"
$2,192,761"
$391,553
$8 004,7"15;
Less accumulated
depreciation
(2,461,174
- (1,008;235)
31( 0,5611
848
(3j,151848
Net
$3,742,393 "
$1 184,526
$80,992
'$4,845,927
(4) Long -Term Debt
General Long -Term Debt Account Group
A summary of the changes
in the General
Long -Term
Debt Account Group is as follows:
27
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements .
June 30, 1996
0
0
28
■
Balance Balance
July 1, 1995 Additions Retirements June 30, 1996
■
Certificates of
participation $ 7,235,000 $145,000 $7,090,000
Note payable 3,019,239 100,506 2,918,733
■
Capital leases 248,296 166,902 81,394
Total $10,502,53 $ -_ $412,408 $10,090 127
• Certificates of Participation
■
On June 1, 1992 the Newport Beach Public Facilities Corporation issued $7,500,000 of
Certificates of Participation to finance the construction: of the new Central Library. In
turn, the City entered into a project lease with the Newport Beach Public Facilities
.
Corporation to lease certain property, facilities, improvements and equipment.
The lease:::payments to be. made by the City will be held by a trustee who will make:
semi annual :payments on the certificates of participation. The lease payments began:.
May 15,-.1 994 and.are in amounts sufficient to cover the payment; of principal and:
.....interest. of:the certificates. Principal payments range from $135,000 to $560,000 from :
■
June.1, 1995 through June 1, 2019 at an interest rate from 6.0% to 6.2 %. At June 30, .
1996 the City has a required cash reserve balance for debt service of $579,731, which `
is recorded'as a restricted asset and reservation of fund balance in the Debt Service
Fund The: certificates outstanding at June 30, 1996 amounted to $7,090,000.
• Note Payable -
Note payable consists of a: note to :the California Department of Boating ,and
Waterways.in 1987 fora loan in the amount of $3,300,000. The note is payable in
thirty annual ,principal and interest installments of $236,372 at 4.5 % rate of interest
beginning August 1, 1987. -The outstanding balance at June 30, 1996 amounted to
$2,918,733.
• Capital Leases
Office Equipment Leases: In the current and prior fiscal years, the City had entered
into several lease- purchase agreements as lessee for.financing the acquisition of a
geographic_ information. system and upgrades of equipment arid :software to the
.
financial management and data processing systems. The terms of the leases range
from three to five years and are payable monthly. The interest rates on these
obligations range from 5 % "to <9 %o.. These lease agreements qualify as capital leases
.
for accounting purposes as the title transfers at the`end of the lease term or the lease
contains a bargain purchase option. All assets acquired with capital leases total
$860,380 and are included in the General Fixed Asset Account Group.
0
0
28
CITY OF NEWPORT BEACH
■ Notes to General Purpose Financial Statements
June 30, 1996
•
Annual Amortization Requirements of Long -Term Debt
■
The annual requirements to amortize outstanding debt included in the General Long -Term
Debt Account Group as of June 30;.1996, are as follows:
Year Ending Certificates of Note Capital
June 30 Participation Payable Leases _ Total
.
1997 $587,685;, $236,372 $48,843 $872,900
1998 588;685 236,372 23,317 848,374
1999 584,085 236,372 12,650 '::833,107
.
2000 584,185 236,372 3,1 ": 823,719
62
2001 583,685 '. 236,372 ~:8211,057
Thereafter 10,569,580.' :, 3,177,679 13,747`;259
■
13;497,905 4,359,539 87972 ` 171945416
.
Less:.amount:repre-
senting interest '.(6;407',,9'05 (1,440,806) (6,578 7 885,2
.
$7,090,000 $2,918733 $81,394 $10,090 127
.
Proprietary Funds Long-term Debt
Enterprise Fund
A summary of changes:in long =term debt of the enterprise funds is as follows
.
Balartre.: Baiahce
"July,! 1995 Additions` Retirements' June 30, 1996`
.
Water Revenue Bonds $17,100,000 $ $820;000 $16,280 000
Less current portion (820,000) 845,000)
.
Total long -term $16;280,000 $15 435 000
The current portion in the accompanying General Purpose Financial Statements includes
$1,283,420.
principal of $845,000 and accrued' interest payable of $438,420 fora totat of
.
Water Revenue Bonds
In 1995, the City issued $171,00,000 .of water, revenue bonds to finance the
■
construction and acquisition of water storage and transmission facilities. The bonds
are secured by a pledge of net revenues of the water fund. The bonds bear interest
ranging from 5.375% to 5.4 %. At June 30, 1996, the City has a required cash reserve
.
balance of $1,710,000 which is recorded as a restricted asset. Fifteen annual principal
payments are payable on August 1, and semiannual interest payments are payable on
0
29
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements .
June 30, 1996
0
30
February 1 and August 1. At June 30, 1996, the outstanding principal balance was
$16,280,000, and accrued interest payable was $438,420.
Water revenue bond debt service requirements to maturity, including $6,845,684 of
interest are as follows:
■
Year Ending
June 30 Amount
•
1997 $1,,699;131
1998 1,682,905
1999 . 1,674,799
■
2000 1,664,543
2001 1,657,003
Thereafter 14,747,303
.
Total $23,125,684
lntemai Seryice.Funds
A summary of changes in long -term debt of the internal service funds is as follows:
.
Balance . Balance
July 1, 1995 Additions Retirements June 30, 1996 -
■
Claims and judgments
payable $9,656,371 $2,929,565 $4,574,203 $8,011733
■
Compensatedabsences.' 7,306642 1,337,344 1,409,338 7,234,648
Capital - leases. 724,651 387,592 291,728 820,515:a
17,687,664 $%654,501 $6,275269 16,066,896
Less current portion (3,249,273) (3,827,341)
■
Total long -term $14,438,391 $12,239,555
Claims and Judgments
.
The City retains the risk of loss for general liability and workers' compensation claims
as described in note 6. These amounts represent estimates of amounts to be paid for
.
reported general liability and workers' compensation claims including incurred- but -not-
reported claims; based upon past experience, modified for amount trends and
information. While the ultimate amount of., losses 1ricurred through June 30, 1996 is
■
dependent on future developments; based upon dnformation from the City's attorneys,
the City's claims administrators and others involved with the administration of the
programs, City management believes the accrual is adequate to cover such losses.
■
The estimated liability at June 30, 1996, amounted to $8,011,733.
0
30
CITY OF NEWPORT BEACH
. Notes to General Purpose Financial Statements
June 30, 1996
• Compensated Absences
■ The City's policies relating to compensated absences are described in note 1. This
liability, to be paid in future years from available and future resources, at June 30,
1996, is $7,234,648.. -..
■ Capital Leases
■ Rolling Stock Leases Equipment.:14aintenance lntema /:Service Fund:.. In the current
and prior fiscal years, the City entered into five lease - purchase agreements, payable
annually, as lessee for financing the acquisition of a fire truck, heavy duty pumper fire
■ apparatus, two air sweepers, a:street sweeper, a crane and two trucks The.;term of
each lease is five years and each. is payable annually. The interest rate for 6a h.lease
is between 4.98% and 6 98%'s: The lease agreements .qualify as capital leases for
■ accounting purposes as the title transfers at the end of the lease.term'or th lease
contains a bargain .purchase;option. The assets acquired, totaling $1,461,506, were
classified as equipment in the Equipment Maintenance Internal Service Fund.
• Annual Amortization Peg irements.of Internal Service Fund Capital Lease Obligations:;
. The annual. requirements to amortize outstanding i capitalized lease obligations
included in the Internal Service'Fwnd as of June 30, 1996; are as follows
. Year Ending Capital
June.30` Leases
. 1997 $321,559
1998 321,559
1999,;, 185192 ;
84,571.
912 881'' ;
Less: amount repre-
senting interest 92 366
$820515:
(5) Special Assessment Districts Bonds
■ The City holds reserve funds on behalf of bondholders. the assets are recorded in the
Special Assessment Agency Fundr...Bonds outstanding at June 30 1996 for each district
under the Bond Acts of 1911 and 1915, and other special assessments :are as follows:
0
0
31
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements .
June 30, 1996
7- :
Bonds
Original Outstanding
Issue June 30, 1996
■
Assessment District
No. 56 China Cove $145,254 $10,570
No. 57 Corona Highlands 938,598 408,566
.
No. 58 Cannery Village 107,746. 65,000
No. 59 McFadden Square 530,609 435,000
No. 60 Bay Avenue 236,533 195,000
.
No. 61 East Bay Front 127,299 105,000
No. 62 Hazel Drive 335,210 275,000
No. 63 Newport Island 536,531 465,000
■
No. 64 Channel Road 180,794 180,794
No. 65 Rocky Point 53,125 44,000.,
No. 66 East Newport 171,911 155,000
No. 67 CDM Blk -133 64,431 64,431
No. 72 Balboa Coves.: ,, . 192,908 .192,908
No: 95-1. CIOSA 7;500,000 7,500;000
.
Although the City, collects and disburses funds for these districts, the City has no obligation;.:
or.duty to pay any delinquency out of any .availabla funds of the City. Neither the faith and, .
.
credit: nor the taxing power of the City is pledged to the payment of the bonds, and
therefore the bonded indebtedness is not shown in the financial statements of the City.
■
(6) Risk Management - General Liability and Workers' Compensation
The City is expgsed to .various risks of loss relatedito torts, theft of, damage to, and
.
destruction of assets; errors and omissions;: injuries to employees, and natural disasters::
The City carries commercial insurance with independent :third parties for loss risks
associated with real and. personal property; and automotive liability. The City purchases
- fidelity bonds for employees in key positions. Settled claims from these risks have:not
exceeded commercial insurance coverage for the past three years. For general liability,
the City has excess insurance coverage of $10 million per occurrence with a self - insured
■
retention (SIR) of $1 million per occurrence. .
On September 1, 1995, the City obtained excess workers' compensation and.e,mployer's
.
liability insurance coverage of $1;000,000 per occurrence with a $300,000, SIR. This
coverage provides for work related accidents and diseases..
•
The Insurance Reserve fund was established to account for costs associated with general
liability, workers' compensation and compensated absence benefits. The Insurance
Reserve fund is accounted for as ,a internal service:fund where assets are set aside for
.
risk management, administration, claim settlements and benefit distribution. A premium is
charged to each fund that accounts for part -time or full -time employees. The total charge
allocated to each of the funds is calculated using trends in actual experience after
.
considering unexpected and unusual claims.
Fund Liabilities are reported when it is probable that a loss has occurred and the amount
.
of the loss can be reasonable estimated. Liabilities include an amount for claims that have
been incurred but not reported (IBNR). Claims liabilities are calculated considering the
32
CITY OF NEWPORT BEACH
. Notes to General Purpose Financial Statements
June 30, 1996
• effects of inflation, recent claim settlement trends including frequency and amount of pay-
outs and other economic and social factors. The liability claims payable include
. $1,550,000 which represents the discounted present value at June 30, 1996; the claims
were discounted using an interest rate of six percent.
. June 30, 1995 June 30, 1996
Unpaid claims, beginning of fiscal year $12,763 140 $9,656,371
■ Incurred claims (including IBNR's) ,, 1,838,594.: 2. 929,565
Claim payments (4,945,36] 4,574203
. Unpaid claims, end of fiscal year $9,656,371 $8,011 733
(7) Deferred Compensation Plan
The City offers its employees a deferred` compensation plan created.ini.accordance with
Internal Revenue Code Section 457. The plan, available to all City employees, permits
■ them to defer a portion of their salary until future years. The deferred' compensation is not
available to employees until termination; retirement, death; or unforeseeable emergency .
..?
All amounts of compensation,deferred under the plan, all property and rights purchased.
with those amounts, and.all income attributable to those amounts, property, of 0ghts are.
(until paid or made available to the employee or other beneficiary) solely the property and,
rights of the. City (without being restricted to the provisions` of benefits under the plan);
subject only,to the claims of the City's general creditors. Participants' rights under;the plan
are equal to those . of general creditors of,the City in an amount equal to thie fair market
.
value of the deferred account for each participant.
Recently approved federal legislation will require thal.Section 457 plan : ass ets be held in.
trust for employees . This chan6e;:.expecte i to be implemented by,T998, will -mean that:
employee assets held in Section 457 plans will no longer legally reniain the property ot. tie
City. At that time, they will no longer be subject to claims of,the,City's'general creditors.,
The City has no liability for tosses under the plan but 'does have the fiduciary responsibility
under the plan of due care that would be'required of an. ordinary prudent investor;° The
City believes that it is unlikely it will use the assets to satisfy the claims., of generalCreditors
in the future. The assets under the plan are reported at market value`in an Agency Fund
and totaled $25,215;057 at June 30, 1996.
(8) Retirement Plans
■ rian vcau iNUui r- vonncu.uci icui riaii
The City contributes to the Califomia Public Employees' Retirement System (PERS), an
. agent multiple - employer public employee retirement system that acts as a common
investment and administrative agent for participating public entities within the State of
California. The City's covered payroll for employees participating in the System for the
. year ended June 30, 1996 was $37,146,628. The total payroll for the year was
$39,946,818.
■
33
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements .
June 30, 1996
All employees who work on a half -time basis or more are eligible to participate in the
System. Benefits vest after 5 years of service. Public safety employees who retire at or
after age 50 with 5 years of credited service are entitled to an annual retirement benefit,
.
payable monthly for life, in an amount that varies from 2% at age 50 to a maximum of
2.7% at age 60 of the highest year's salary (miscellaneous employee amounts vary from
1.092% at age 50 to a maximum of 2.418% at age 60) for each year of credited service.
.
The system also provides death and survivor's benefits. These benefit provisions and all
other requirements are established by State statute and City ordinance.
•
Employee and Employer Contribution Obligations
The City generally makes all of the contributions required of City employees on their behalf
■
and for their account. The rates are set by statute and therefore remain unchanged from
year to year. The present rates are'
•
Member Rates as a
Category .. Percentage of Wages
•
Local miscellaneous members 7%
Local safety members . 9%
•
There is a charge for employees covered by the 1959 Survivor Benefit, $2.00 per covered,.
member per mdhth.
•
The City is required to contribute,the.remaining amounts necessary to fund the benefits for
'its members :using the actuarial basis recommended; by the PERS actuaries and actuarial -.
consultants and adopted :by the Board of Administration,
.
Funding Status and Progress
■
The amount shown below as the "pension be obligation" is a standardized measure of
the present value of pension benefits, adjusted for the effects of step -rate benefits,
estimated to be payable in the future as a result of employee service to date. The
.
measure is intended to help assess the funding status of the System on a going- concern
basis, assess progress made in accumulating sufficient assets to. pay benefits when due,
and make comparisons among employers. The measure is the actuarial present value of
.
credited < projected pension benefits and is independent of the funding method used to
determine contributions to the System.
•
The pension benefit obligation was computed as part of an actuarial valuation performed
as of June 30 1996 (based on June 30, 1995 data). Significant actuarial assumptions
used in the valuation include (a) a rate return on the investment of present and future
.
assets of 8.50% a year compounded annually, (b) projected salary increases of 4.50% a
year compounded annually, attributable to inflation, (c) no additional projected salary
increases for miscellaneous employees and safety employees, attributable to
.
seniority /merit, and (d) no post- retirement benefit increases.
The total assets in excess of pension benefit obligation applicable to the City employees
.
was $8,833,051 at June 30, 1996 (based on June 30, 1995 data) as follows:
34
CITY OF NEWPORT BEACH
. Notes to General Purpose Financial Statements
June 30, 1996
•
Pension Benefit Obligation:
Retirees and beneficiaries currently receiving benefits
.
and terminated employees not yet receiving benefits $70,272,872
Current Employees:.
.
Accumulated employee contributions `
including allocated investment earnings 38,964,605
Employer - financed vested:., 45,180,377
.
Employer - financed non- vested ;;1 ,055,652
Total Pension Benefit Obligation - 155-,473,506
•
Net Assets Available for Benefits at.cost
(Market Value is $174,657,871) 164 30665i"
•
Assets.in Excess of Pension Benefit Obligation $8833,051 '-
In the prior year, the City reported accumulated assets in. excess of pension benefit
obligation of $2.1;;953;868 (bated'on information provided by PIERS).
Actuarially Determined. Contribution Requirements and Contribution Made
PIERS uses the Entry . Age Normal Actuarial Cost Method which is a projected benefit cost
method That is, it takes.into account those benefits that are'expected to be earned in the
future as well, as .those .already :accrued.:'According to this cost method, the. normal cost.
for.an employee: is the .level amount which would fund the projected - benefit if. it were paid?::
annually from.date of.employmeaiintil retirement. PIERS uses -a modi cation.of.the Entry
Age Cost Method in which the employer's total normal cost" is expressed as` a leuef
percentage-of payroll. PERS also uses the level percentage of'payroll method to.amottize
any unfunded actuariala abihties.: The amortization period :6f the Unfunded actuarial Ii a4iEt
ends in the year, 2000 for`prior service benefits and_ the,year 2000 for current service
.
benefits.
The significant actuarial assumptions used to compute ,the actuarially determined
contribution requirement are the same as those used to compute. the pensiori° benefit
described:
obligation, as previously
The contributions to the System for fiscal year ended June 30* pfr$5,458,517 were
made in accordance with actuarially determined.'requirements computed through an
actuarial valuation: performed as of June 36 , 1995: The contribution consisted of (a)
$5,362,883 normal cost (14.4% of current covered payroll) and,`(b)405,634 amortization of
the unfunded actuarial: accrued liability (,2% of current covered payroll). The City
contributed employer contnbution,of $2;529,997 (6.8 % ofi current covered payroll); and on
behalf of employees $2,928,520'(7:8a1a of current covered payroll). Of these amounts,
$851,276 was funded by PIERS surplus accounts.
0
0
35
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 1996
•
Trend Information
Trend information gives an indication of the progress made in accumulating sufficient
.
assets to pay benefits when due. Within the City's financial statement, presentation of ten
years of historical trend information is required. 1988 is the first year that this actuarial
information has been made available by PERS. For allyears presented, contributions
.
were made in accordance with actuarially.determined requirements. Until ten years of
data are available, as many years as are available are presented as follows, in thousands
(unaudited):
.
(6)
Unfunded
(Assets in,Excess of)
Pension (8)
.
(4) Benefit Employer
Unfunded Obligation Contributions
(1). (Assets in Excess of) Expressed as Expressed as
.
Net Assets (2) (3) Pension (5) a Percentage a Percentage
Fiscal
Available Pension -- Percentage Benefit Annual. of Covered (7) of Covered
Year::
for Benefit Funded.:. Obligation Covered Payroll Employer Payroll
.
Ended
Benefits Obligations (1)1(2) (2) -(1) Payroll (4)/(5) Contributions 715
1988:
$66,906 $68,264 98.0% $1,358 $23,600 5.8% $2,390 10.1%
■
1989
16,117 ..75;332 101.0 % (785) 25192 (3.1 %) 2,111 8.4 %0
1990
'85,574 .82;421 103.8% (3,153) 27,312 (11.5 %) 2,571 9:4%
1991
95,118 96;389 98.7 %` . 1,271 30,092 4.2% 2,680 8.9%
.
1992
'1.04,012 ..105,027. 99.0% 1,015 .' 32y482 3.1% 3,143 97%
1963:..
118,077 97.2% 3,270 33,369 9.8% 2,991 9.0%
1994.
126,813 121;320 104.5% (5,493)- 33,54A (16.4 %) 2,983 8:9%
1995
154,866 132912 116.50/( (21,954) 37,406 (58.7 %) 2,697 72"/0
.
1996:
164,307 '155,474 1 0.6% (8,833)'. 37,147_ (23.7 %) 2,530 6;8%
Plan Description - Defined Contribution Plan`
.
As of January 1; 1992 the City entered into a defined. contribution plan with Public Agency
Retirement System ( "PARS ") forall of its part-time employees. In a defined contribution
.
plan, benefits depend solely on amounts contributed t6'the plan plus investment earnings.
All part-time employees are eligible to participate frorn the date of employment., Federal
legislation requires contributions of at least 7.5% to: a retirement plan, and. City Council
.
resolved to match the employees' contributions of 3.75 %. The City's .contributions for
each employee (and interest eamed,by the, accounts) are fully vested immediately.
.
For the year ended June 30, 1996,the City's covered payroll for:employees participating in
the plan was $1,885,575. The City made employer contributions of $70,709 (3.75% of
current covered payroll).:; Assets of the plan totaling $1,230;772 at June 30, 1996 are
.
reported as deposits in the Deferred Compensation Agency Fund. As of June 30, 1996,
there were 285 employees participating in the plan.
.
(9)
Early Retirement Program
On June 30, 1993, the City implemented and offered an Early Retirement Program to
certain employees whose retirement would lead to a permanent vacancy within the City
36
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 1996
organization, The Early Retirement Program provides participating employees with a
supplement to their normal PERS retirement benefits by an additional payment from the
City. The assets of the program are on deposit in the Deferred Compensation Fund.
(10) Post - Employment Health Care t dnefits
As established by a CityCouncil approved Memorandum of Understanding between the
City and its employees„ the. Cify, :provides .post- employment and care benefits.
Employees who retire from the City;with seven years of:service and participate in PERS
are eligible to receive health care benefits covering themselves and any qualified family
members from the City's insurance carrier, Health Net. The City "pays 50%/ of total plan
premiums charged under the provided plans while the active and.retired emplovees split
the remaining premium at a rate of 25% each. This program is funded on a pay -as= you -go
basis. The City's expenditures !for post- employment health care benefits for fiseat,years
1995 -96 and 1994 -95 were $232;304. and $239,614, respectively. As of June 3d,11-996,
285 participants were eligible.to receive benefits.
(11) Interfund Receivables and PayaDies
At June 30, 1996, interfund receivables an
payables were as follows
Capital Projects Fund:
CIOSA Construction 2,227,346„`
Enterprise Fund:
Cannery Village 5$5 961
Internal Service Fund:_`
(12) Changes in Contributed Capital
165
101,690
$4,556,282
A summary of the changes in contributed capital of the Enterprise Funds is as follows:
37
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements .
June 30, 1996
The City had investments in the County of Orange (County) investment pool, and on .
December 6, 1994, the County filed a petition under Chapter 9 of the United States
Bankruptcy code. The City approved the Comprehensive Settlement Agreement
(Settlement) on April 10, 1995. On May 2, 1995, the United States Bankruptcy Court for .
the Central District of California, Santa Ana Division (Bankruptcy Court), approved the
Settlement entered into by and among the County and pool participants. The County and
38
•
Water Wastewater Total
Balance, July 1, 1995 $4,753,734 $9,145,593 $13,899,327
.
Additions 306,760 306,760
Balance, June 30, 1996 $5,060,494 $9;145;593 $14,206,087
Contributed capital of the Internal Service Funds was unchanged as follows:
Equipment
.
Balance, July 1, 1995 $4,097,648
■
Balance, June 30, 1996 $4,097,648
•
(13) Reserved and Designated Fund Balances
Reservations of fund balances consist of the following::
.
Special Debt Capital
General Revenue Service Projects
■
Fund Funds Fund Funds Total
Encumbrances $2,129,127 $2,423,814 $3,613,926 $8;166,867.
■
Inventories i 139,614 139,614 '
Long -Term Receivable 200,000 200,000 ;;
Debt Service $579,231 , 579,731.:
.
Total Reserved $2,468,741, $2,423,814 $579,731 $3,613,926:, $9 086 212
■
Designations established as of June 30, 1996 are as follows:
Special Capital
General Revenue `Projects
Fund Funds ' ' Funds Total
■
Contingencies $5,773,728 $5,773,728
Special Projects 2,988,205 $12,274,295 $170,758 15;433,258
■
Total Designated $8,761,933 $12,274,295 $170,758 $21,206 986
•
(14) Due from Other Governments
The City had investments in the County of Orange (County) investment pool, and on .
December 6, 1994, the County filed a petition under Chapter 9 of the United States
Bankruptcy code. The City approved the Comprehensive Settlement Agreement
(Settlement) on April 10, 1995. On May 2, 1995, the United States Bankruptcy Court for .
the Central District of California, Santa Ana Division (Bankruptcy Court), approved the
Settlement entered into by and among the County and pool participants. The County and
38
CITY OF NEWPORT BEACH
■ Notes to General Purpose Financial Statements
June 30, 1996
■ pool participants amended the May 2, 1995 Settlement Agreement, and on May 15, 1996,
the Bankruptcy Court approved the amendment.
• The Settlement provides for the City to receive Settlement Secured Claims which are
solely secured by a first priority, security interest on 65 %,of net litigation proceeds if and
. when recovered by the County from third -party defendants; The City also received
Repayment Claims which are solely secured by a second priorityisecurity interest on 65%
of net litigation. proceeds if and when recovered by the County fromi third -party defendants.
■ The Repayment Claims are an "allowed" claim in the County's bankruptcy case under the
terms of the Settlement:. A litigation fund has been formed by all ,pool; participants
(including the County) with $50 million available to pursue litigation.
■ At June 30, 1996, the balance of $3.;333,100 has been classified as due from other
governments with an offsetting allowance for uncollectable receivable. The allowance, was
. established to reflect the uncertainty of collection. The .receivable was allocated. to all
funds based on each fund's investment balance.
■ tion Enterr(15) Segment ise Activities
There are three services provided by <the City which are financed primarily by us r
. charges parking, water services and sewer services:: These services are accounted for
separate enterprise funds.
. The key financial data forahe year ended June 30 1996 for these Enterprise Funds are as
follows:
. Cannery~ .
Village ,
Parking Water Wastewater Total
• Operating revenues $75,861 ` $14,766,566'` $2,180819 $17,023,246
Operating expenses: '
. Depreciation ` -4,299 , " 4,125,656` 720,671 1,850,626.`
Other 13;220;028 ; 1,284,787 14 504;815
Operating income (loss) 71,562 420,882 .:. 475,361 667;905
■ Net income (loss) 71;562 1,494,349 . 303,098` 1 869;009
Current capital
contributions 306,760
■ Property, plant
and equipment:.
Additions 17,$26,115 446
(Deletions)
Net working capital(585,96.i) 1
Total assets 1,113 ;43$
Outstanding long -term
151 ` 12,190,919
liabilities 15,435,000
Total equity 527,477 32,483,522
39
12,151,373
760
18,272,804
(5,045,958)
16,972,005
65,590,508
15,435,000
45,162,372
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements .
June 30, 1996
0
0
40
■
(16) Individual Fund Disclosures
At June 30, 1996, the Contributions, Building Excise Tax and Environmental Liability
.
Special Revenue Funds had deficit fund balances of $81,838, $16,012 and $106,692,
respectively. These deficits will be eliminated by future revenues or transfers from other
funds. In addition, the accumulated deficit of $17,136,261 in the Insurance Reserve
.
Internal Service Fund is expected to be eliminated by future interdepartmental charges.
The environmental liability Special Revenue Fund has $194,911 of expenditures and none
were budgeted as this was a new fund established by the City Council during the year.
.
(17) Commitments and Contingencies
•
Numerous claims and suits have been filed against the City in the normal course of
business. Based upon information received from the City Attorney, Contracted Attorneys
and the Risk Manager, the estimated liability under such claims would be adequately
■
covered by the accrued claims and judgments payable (See Note 6).
The:City entered into a Circulation Improvement and Open Space Agreement (CIOSA)
■
with a developer whereby the City could receive up: to $14,395,572 to be used. only for
certain transportation and circulation improvements, of which $1,327,503 had been:
received and expended as of June 30, 1996. Amounts received constitute a loan without
■
interest, the.;sole source of repayment is City - pledged 50% of future Fair Share Fees:
(developer. impact :fees) which are recorded in the Circulation and Transportation Special
Revenue Fund.;: During. the year ended June 30, 1.996, the City received $92;326 of Fair:
■
Share Fees,:,and.$46,1881 has been accrued or paid to the developer. No additional :1
liability has been recorded„ because any future repayment is uncertain; any amounts not`:
repaid by February 20 2016 will be forgiven:;
.
(1:8) Subsequent Event..
•
Subsequent to ,year -end, the City entered, into a lease agreement in the amount of
$1,759,560. The lease proceeds together with $300000 of available City funds provide
financing for the acquisition of "$2,059;560 of police information equipment. The
.
equipment is pledged as collateral. The lease.is payable in four annual installments of
$410,354 beginning in July 1997. The lease bears interest at the rate of 5.33% . .
■
On July 1, 1996, the City increased the coverage for public liability insurance from $10
million to $20 million per occurrence. This coverage provides for personal injury, property
damage and public entity, errors and omissions.
.
0
0
40
0
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■ Supplementary
■ Information
■
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■
■
■
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EFID
■
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■
� b
FIE
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nk
AA
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PIN;
-AMIN
�11 AIR--
jo
THE GENERAL FUND
The General Fund is used to account for fiscal resources which are:
M
CITY OF NEWPORT BEACH
. Comparative Balance Sheets - General Fund
June 30, 1996
0 1996 1995
■ 41
Assets
■
Cash and investments
$
6,990,465
$
9,106,602
Accounts receivable and accrued revenues
1,918,501
1,084,732
■
Due from other governments
2,397,767
2,429,237
Allowance for doubtful accounts
(446,381)
(476,565)
Due from other funds
4,556,282
1,366,962
■
Inventories of material and supplies, at cost
139,614
198,441
Restricted assets - cash and investments
4,515,000
.
Other assets
119,009.
13,500
200;000
Notes receivable
200,000
.
Total Assets
$
15,875,257
$
18,437,909
■
Liabilities and Fund :Balance .
■
Liabilities:
Accounts payable and accrued liabilities
$
1,215,828
$
1,717,922
Accrued payroll
1,323,336
1,700,579
.
Deferred revenue
468,362
296,871
Deposits
1,637,057
1,785,998
Current portion of debt.
4,452,292,
•
Total Liabilities
4,644,583
9,953,662
■
Fund Balance: "
Reserved:
.
Reserved for encumbrances
2;129,127
2,341 378
Reserved for inventories
139,614 -
198 441
Reserved for long -term receivable
200,000
200,000.
.
Unreserved:
Designated for special projects
2,988,205
3;365 834
Designated for contingencies
5,773,728
2,378,594
•
Total Fund Balance
11,230,674
8,484,247
.
Total Liabilities and Fund Balance
$
15,875,257
$
18,437,909
■ 41
0
CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures
.
and Changes in
Fund Balance - Budget and Actual
General Fund
For the
Year Ended June 30, 1996
■
1996
1995
Variance
■
Favorable
Budget
Actual (Unfavorable)
Actual
Revenues:
■
Taxes $
41,046;230. $
42,853,480 $`,1_,805,250
$ 39,719,830
Licenses, fees and permits
1,369,154',
1,663,469
-29 4 315
1,112,873
Intergovernmental revenue
4,878,657
4,728,4i.3 . ;;
(149,6.84y,-. ,'-
7,113,785
.
Charges for services
6,268,392
6.020j272 .,
i. (248,120)
4,884,630
Fines, forfeitures and penalties
2,945,606
.2,795 045
(149;955)
3 067,817
Revenue from use of
money and property
5,612,775
5.792,4E4 '- ;
179,679
5;067,329
Contributions
263;731
146 457
(117,274)
1,441340
Other
247,000
150,579 =
':(96,421)
360,652
.
Total Revenues
62,632,939
84;150729.
1,517,790
61,471,2511.
•
Expenditures:
Current:
General government
8,336,622
5,442 862
(106,240)
5,152 151 *
■
Public safety
34,719,541
34173,622 ..
545,919
33;163 911 .'-
Public works
14,464 834
14;250 842
213,992
1,,4;382 640 ;
Community development
2,663,524
2,716 712 ?
(53,188,)
2.930 048
■
Community services:.:
5 762,566;'
5,6,70,170
92,396
51722.1113
Capital Outlay
6,655,991.`
4,608,037
2,047,954
5,568817
Debt Service:
=.
.
Principal
166,902'
166 902
"294 530
Interest and. fiscal charges .:.
11 015;.1:
74 386
(63,371)
184 907
Total Expenditures .
89,780,995
6T 103 533
2 677,462
0,394311 7-
■
Excess (Deficiency) of Revenues
Over Expenditures
(7,148,056):
``_
4;195,252
■
(Under)
(2;652,804Y ,
(5 'g#.1361)
Other Financing Sources:(Uses):
.
Operating transfers in
6j031.1
6 245 683
214;5'19
5;296,022
Operating transfers out
(600,455)
(580,430),
' +20,025.
(875,820)
Proceeds from long -term debt
53,865
Proceeds from sale of assets
25,500
33,978
$ 476;
7,223
.
Total Other Financing Sources (Uses)
5!4563269
5,699 231
243,022
4,481,290
.
Excess (Deficiency) of Revenues
and Other Financing Sources
Over (Under) Expenditures
.
and Other Financing Uses
(1,691,847)
23746,427
4,438,274
(1,446,571)
Fund Balance, July 1
8,484,247
8,484,247
9,930,818
.
Fund Balance, June 30 $
6,792,400 $
11,230,674 $
4,438,274
$ 8,484,247
■
42
■
90
rr
PINt N
J
p i
r
it
0
SPECIAL REVENUE FUNDS 0
0
0
M
Special Revenue Funds are used to account for the proceeds of specific revenue sources
which are legally restricted to expenditures for specified purposes. Newport Beach
Special Revenue Funds are as follows:
The State Gas Tax Fund accounts for all State Gas Tax related revenues and expenditures,
including street repair; construction,,and. maintenance. State law requires that these funds be
used exclusively for m. aintenance of the street, and highway system.
.
The Asset Forfeiture Fund was established.to account for all -revenues resulting from the
seizure of assets in conjunction with criminal cases (primarily drug trafficking). It is the City's
.
policy that-all such funds shall be used fore nhancement of law enforcement programs.
The Tide and Submerged Land Fund is used to account for all. revenues and expehditures
■
refafed to the;operation of the,City's.tidelands, including beaches and marinas.:
The Contributions Fund is used to account for revenues received from other government
■
agencies or. %private „developers and expended .for specific street or highway construction
projects.
The Circulation and Transportation Fund is used to account for fair share revenues collected .:
from developers and restricted:for capital . improvement projects meeting the circulation. element
of the City's General Plan
The Building Excsse Tax Fund is used to account for revenues received from builders or,.
.
developers on bwlding or remodeling projects within the City. Expenditures from this fund are
for
used exclusively pubtic safety, libraries, parks,.aeaches;: or recreational activ.ities.. ,
The Comb►red Transportation Fund is;;used to, account for the revenues'and expenditures of
"County
funds received from the, Orange Combined Transportation Funding Program.
Expenditures from this fund are used exclusively for transportation related purposes.
The Community Development BIoq Grant Fund is used to account for revenues and
expenditures relating to the City's Community Development Block Grant program. Thesefunds
are received from the Federal, Department of Housing and' Urban Development and. must be
expended exclusively on programs for low or moderate income individuals /families.
The Ackerman Donation Fund is used,.to account for the receipt and disbuisenient of funds
Ackerman
received from the Trust. These funds are split between the City, and the University of
California, Irvine The City's. portion must be used for library and scholarshippurposes.
The Air Quality Management District Fund is used to account for revenues received from the
South Coast Air Quality Management.DiStnct restrictedforthe use of reducing air pollution.
The Environmental Liability Fund is used to account for solid waste fees restricted for
mitigation of future environmental liability relating to the handling of solid waste.
0
0
M
43
Assets
Cash and investments
Accounts receivable
and accrued revenues
Lease receivable
Due from other governments
Allowance for doubtful accounts
Other assets
Total Assets
CITY OF NEWPORT BEACH
Combining Balance Sheet
All Special Revenue Funds
June 30, 1996
Tide and
State Asset Submerged
Gas Tax Forfeiture Land
$ 4,434,553 $ 128,510 $ 172,729
Circulation
Building
and
Excise
Contributions Transportation
Tax
373,793 $ 130,135
95,266 11,494 9,287
(95,266) (11,494)
$ 9,040,984
210,930 $ 853
(210,930) (853)
77,231
$- 4,434,553 $ 128,510 $ 633,040 $ 130,135 $ 9,040,984 $
Liabilities and Fund Balances
Liabilities:
■
Accounts payable and
and accrued liabilities. $
.. 62,096 $
128,510 $ 244,302
$ 39,108
$ 78,900
$ 4,547
■
Accrued payroll
1,390
Due to other funds
172,865
Deferred revenue
216,928
170,420
■
.Deposits.
Total Liabilities
62,096
128,510 633,040
211,973
78,900
16,012.
■
Fund Balances:
Reserved for encumbrances
1,114,081
341,755
Unreserved:
.
Designated for special projects
3,258,376
8,620,329
Undesignated
(81,838)
(16,012)
•
Total Fund Balances
4,372,457
(81,838)
8,962,084
(16,012)
Total Liabilities and
■
Fund Balances $'4,434,553
` $
128,510 $ 633,040
$ 130;135
$ 9,040,984
$
44 ■
0
•
Community
Air Quality
Combined
Development
Ackerman
Management
Environmental
Totals
■
Transportation
Block Grant
Donation
District
Liability
1996
1995
.
$
525,700
$ 115,080.
$ 298,489
$
$ 14,71.6,045
$ 12,721,572
48,000
551,928
'. 380,870
■
888,006
888,000
962;000
3,303,725
$ 139,540
25,354
3,796,449
1;447;472.
(19,465)
(5,409)
(343,417.)
(365,699) -;,
■
77,231
69,520..
$
3,657,960
$ 139,540
$ 1,003;080
$ 318,434
$
$ 19,686,236
$ 15,215 544
■
$
49,332
$ 59,442.:.:
.$ 456
$ 840
$ 667,533
$ 610,510
■
1,390
1,390
80,098
::
$ 106,692
371;120
691,811
2,877,278
888,000
3,982,206
1,161,166
.
170,420
164,412
.
2.k6,610,
888,456
840
106,692
5,192,669
2,629,289
.
931.,350
36 1628,,
2,423,814
1,076,582
77,996'
" 317,594
12,274,295
12,015,819
(106,692)
(204,542)
(506,146)
■
.,
931,350
114,624
317,594
(106,692)
14,493,567
12,586,255
•
$
3,857,960
$ 139,540
$ 1,003,080
$ 318,434.
$
$ 19,686,236
$15,215544
■
■
■
0 45
0
0
■
46 0
City of Newport Beach
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
.
All Special Revenue Funds
For the Year Ended June 30,
1996
•
Tide and
Circulation
State ..
Asset
Submerged
and
Gas Tax
Forfeiture
Land
Contributions
Transportation
.
Revenues: - -
Licenses, fees and permits
$ 1,073,436
Intergovernmental revenue
$ 1,252,643
73,167
$ 734,147
.
Charges for services
258,144
Fines, forfeitures and penalties
$ 60,018
Revenue from use of money
-:-
.
and property --
.266,041
-- 16,637
4,193,234
3,103
$ 464,484
Contributions
758,821
1,799,458
Other
1,422
■
Total Revenues
1,518,684
76,655
5,599,403
1,496,071
2,263,942
Expenditures:
.
Current:
General government
Public safety
397,651
..
.
Public works
287,673
46,188
Community development. .
Community services
129,318
■
Capital Outlay
1,332,291
418,543
1,078,133
341,385
Debt service:
.Principal
100,506
■
Interest and fiscal charges
135,866
.Total Expenditures
1,332,291:
397,651
1,0711906
'1,078,133
387,573
.
Excess (Deficiency) of
Revenues Over
- (Under) Expenditures --
186,393>
;.-- (320;996)
4,527.497
417,938
1,876,369 - --
.
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
(96,000)
(4,584,948)
Total Other Financing
Sources (Uses)
(96,000):x
(4,584,948)
.
Excess (Deficiency) of Revenues
and Other Sources Over (Under),
.
Expenditures and Other Uses
90,393
: (320,996)'
(57,451)
417,938
1,876,369
Fund Balances (Deficits), July 1
4,282,064
320,996
57,451
(499,776)
7,085,715
■
Fund Balances (Deficits), June 30
$ 4,372,457
$ -
$ -
$ (81,838)
$ 8,962,084
■
46 0
M
M
M
■
Building
Community
Air Quality
Excise
Combined
Development
Ackerman
Management Environmental
Totals
■
Tax
Transportation
Block Grant
Donation
District
Liability
1996
1995
$ 226,989
$ 88,219
$ 1388;644 $
1,085,313
.
$ 1,220,026
$ 209,797
$ 96,790
3586,570
3,357,122
258,144-
224,883
60,018
88,713
•
2,459
46;275
$ 7,728
15,975
5,015,936
4,558,919
185;000
2,743,279
510,006
.
1,422
50
229;448
1,266,301
209,797
192,728
112,765
88,219
13,Q54,013
9,825,006..
353,45
.
397,651
226 011
194,911
528,772
2178,703:.r
....209,797.
25,738
25,738
235,535
248,134 .
116;706
246,024
294,336
49.0;355
1,325,957
4,606,664 =
2,889,547.'?
.
100,506
341.178:,,,,
135,666
'140,194::r
110,355
1,325957.
209,797
116,706
25,738
194,911
6251,018
4,771562';
.
.
119,093
`- (59,656)
:-:,:,T6,022:.;
87,027
:(106,692)
, 61802.995
5,053,444
51,354
(128,735)
(86,000)
(4,896;683)
(6163,137)
.
(128,735)
(86,000);
(4895,683) '`
(6,111,783)
•
(9,642)
(145,656)
76,022
.. 87,027
(106692)
1,907,312
(1,058,339)
(6,370)
1,077,006
38,602
230,567
12,586,255
13,644,594
.
$ (16,012)
$ 931,350
$
$ 114,624
$ 317,594
$ (106,692)
$ 14,493,567 $
12,586,255
■ 47
CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
State Gas Tax Special Revenue Fund
For the Year Ended June 30, 1996
1996 1995
Variance
Favorable
Budget Actual (Unfavorable) Actual
Revenues
Intergovernmental revenue $ 1,214,450 $ 1,252,643 $. 38,193 $ 1,224,923
Revenue from use of
money and property 120;000 266,041 146,041 138,799
Total Revenues 1;334;450 1,518,684 184,234 1,363,722
Expenditures:
Current:
General government:..
Capital Outlay
Total Expenditures:,
Excess (Deficiency).
101,447
2,503,158 1,332,291. 1,170,867 194,117
2,503,158 1,332,291 1,170,867 295,564
of Revenues Over
(Under) Expenditures
(1,168 :708)
186,393 1,355,101: 1,068,158
Other Financing Uses:
Operating transfers out
(96;000).
(96 000) .; (83,500)
Excess (Deficiency) of
Revenues Over (Under)
Expenditures and Other Uses
(1,264,708)
90,393' ` .1;355,101 984,658
Fund Balance, July.1
Fund Balance, June 30
4,282,064 4,282,064,, 3,297;406
$ 3,017,356. $ 4,372,457. V. 1,355,101 $.4;282 {064
48
0
CITY OF NEWPORT BEACH
. Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
. Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 1996
1996 1995
variance
Favorable
Budget Actual (Unfavorable) Actual
Revenues:
Fines, forfeitures and penalties $ 134,360 $ 60,018 $ (74,342) $ 88,713,.
Revenue from use of
money and property 29,000: 16,637 (12,363) 15,914
Total Revenues 163,360 76,655 (86,705) 104,627
Expenditures:
Current.
. Fund`Balance June 30 $ 6,777 ,.$ - $ (6;777) $ 320,996
ter-
49
M
0
50 .
CITY OF NEWPORT BEACH
Statement of Revenues,
Expenditures and Changes in Fund Balance
.
Budget and Actual
Tide and
Submerged Land Special Revenue Fund
For the Year Ended
June 30, 1996
.
1996
1995
Variance
Favorable
.
Budget
Actual
(Unfavorable)
Actual
Revenues:
Licenses, fees and permits $
1,115,338
$ 1,073,436
$ (41,902) $
980,459
.
Intergovernmental revenue
64,662
73,167
8,505
88,228
Charges for services
256,175
258,144
1,969
224,883
Revenue from use of
.
money and property
4,164,900
4;193,234
28,334
4,077,521
Other
1,000
1,422
422
50
.
Total Revenues
5,602,075
6;599,403
(2,672)
5,371,141'
•
Expenditures:
Current:
Public, Works
331,881.
287;673
44;208
278,703
.
.:Community services
126,698%
129,318
(2,620)
131,796
Capital Outlay
427126
418,543
8,583
166,819
Debt service:
■
Principal
100,506
100,506
96,178
Interest and fiscal charges
135,874
135,866
8
140,194
Total Expenditures
1,122,085
1,071,906
50179.
813,690
■
Excess of Revenues
Over Expenditures `
4,479,990
4,527,497
47,507.
4,557,451
•
Other Financing Uses:
Operating transfers out
(4,381,776)
(4,584,948)
(203,172)
(4,500,000)
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
and Other Uses
98,214
(57,451)
(155,665)
57,451
Fund Balance, July 1
57;451
57,451
Fund Balance, June 30 $
155,665
$
$ (155,665) $
57,451
■
M
0
50 .
0
CITY OF NEWPORT BEACH
. Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
. Contributions Special Revenue Fund
For the Year Ended June 30, 1996
1996
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental revenue $ 2;495,784 $ 734,147 $ (1,761,637);
Revenue from use of money
and property 3,103 3,103
Contributions 758,821 758,821
Total Revenues 2,495;784 1,496,071 (999,713)
Expenditures:
Capital:Outlay 2,739;683 1,078,133 1,661,550 '
1995
Actual
(499,776)
51
CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Circulation and Transportation Special Revenue Fund
For the Year Ended June 30, 1996
Revenues:
Revenue from use of
money and property
Contributions
Total Revenues
Expend@ures:
Current,
General government
224,616
Public works
1996
46,188
1995
Capital Outlay
Variance
341,385
362,373
437,696
Favorable
703,758
Budget
Actual
(Unfavorable)
Actual
$ 205,000
$ 464,484
$ 259,484 $
288,394
7,500,000
1,799,458
(5,700,542)
211,337
7,705,000
2,263,942
(5,441,058)
499,731
7,085,715
71085,715
7,248;296
224,616
Public works
46,188
(46,188)
Capital Outlay
703,758.
341,385
362,373
437,696
Total Expenditures ::
703,758
387,573
316,185
662,312
Excess (Deficiency)..
of Revenues Over
(Under) Expenditures.
710.01,242
11,876,369.
(5,1.24;873)
(162,581)
Fund Balance, July .. 1
7,085,715
71085,715
7,248;296
Fund Balance;:June 30 $ 14,086,957 r $::8,962,084` $ (5;124,873)._ $7,085,715
52
■
0 53
CITY OF NEWPORT BEACH
Statement of Revenues,
Expenditures and Changes
in Fund Balance
Budget and Actual
.
Building Excise Tax Special Revenue Fund
For Year Ended June 30, 1996
the
•
1996
1995
Variance
.
Favorable
Budget
Actual
(Unfavorable)
Actual
Revenues:
.
Licenses, fees and permits $
329,347
$ 226,989
$ (102,358) $
104,854,,
Revenue from use of
.
money and property
8,000
2,459
(5,541)
1,868
Total Revenues
337,347
229,448
(107,899)
106,722
■
Expenditures:
Current:
.
General government
908
Capital Outlay
220,857 .
110,355
110,502
23,308
.
Total. Expenditures...
220,857
110355
110,502
24,216
.
Excess of Revenues.:
116,490
119,093
82,506
Over: Expenditures
.2,603
.
Other Financing. Uses:
Operating, transfers out.
(:128,735)
(128,735)
(100,000)
.
Excess (Deficiency)
'.of Revenues Over
(Under) Expenditures
.
" and Other Uses
(12,245)
(9,642)
2,603
(17,494)
■
Fund Balance (Deficit), July 1
(6,370)
(6,370)
11,124
Fund Balance (Deficit), June 30 $;
(18,615)
$° (16,012)
$ 2,603 ; $
; (6,370)
■
0 53
0
CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures
and Changes
In Fund Balance
Budget and
Actual
Combined Transportation
Special Revenue Fund
For the Year Ended
June 30, 1996
■
1996
1995
Variance
Favorable
■
Budget
Actual
(Unfavorable)
Actual
Revenues:
.
Intergovernmental revenue $
9,748,069
$ 1,220,026
$ (8,528,043) $
1.1485,315
Revenue from use of
and
40,000
46,275
6,275
28,406
.
money property
Total Revenues
9,788;069
1,266,301
(8,521,768)
1,513,721
.
Expenditures:
Current:
■
General government
20,728
Capital Outlay i.
8,847,082
1;325,957
7,521,125
1,488,481
•
Total. Expenditures .:
8,847,082
1,325,957
7,521,125
1,509,209
Excess (Deficiency) r
■
of Revenues Over
(Under) Expenditures
940,987
(59,656)
(1,000,643)
4,512
.
Other Financing, Uses:
Operating transfers out
(86;000)
(86,000)
(29,785)
.
Excess (Deficiency) of Revenues
Revenues Over (Under)
.
Expenditures and Other Uses
854,987
(145,656)..
1,000,643
(25,273)
Fund Balance, July 1
1,077;006
1,677,006 -
1,102,279
.
Fund Balance, June 30 $
1,931,993
$ 931,350
$ (1,000,643) $
1,077,006
■
■
54 0
■
CITY OF NEWPORT BEACH
■ Statement of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual
■ Community Development Block Grant Special Revenue Fund
For the Year Ended June 30, 1996
1996 1995
Variance
. Favorable
Budget.. Actual (Unfavorable) Actual
. Revenues:
Intergovernmental revenue
■
Debt service
P. .
nncipal
$ - 534,000 $ 209,797 $ (324,203) $ 461,973
t 719,891: ` . 209,797
Excess (Deficiency) of
Revenues over (Under)
55
Expenditures:
Current:
■
Communitydevelopmen
■
Debt service
P. .
nncipal
$ - 534,000 $ 209,797 $ (324,203) $ 461,973
t 719,891: ` . 209,797
Excess (Deficiency) of
Revenues over (Under)
55
CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual
Ackerman Donation Special Revenue Fund
For the Year Ended June 30, 1996
1996 1995
Variance
Favorable .
Budget Actual (Unfavorable) Actual
Revenues:
Revenue from use of money
and property $ $ 7,728 $
Contributions 185,000 185,000
Total Revenues 1.85,000 192,728
7,728
$ 259,897
7,728 259,897
Expenditures:
current:
Community services ...:.
185,000 116,706
68,294
162,540
Excess.of Revenues`'
Over Expenditures
76,022
76,022
97,357
Other Financing Uses:
Operating.transfers out .
; .
(76,055)
Excess of Revenues
Over: Expenditures
and Other Uses
76,022
76;022
21,302
Fund Balance, July 1
38,602 : ` 38,602.
17,300
Fund Balance, June 30
$ 38,602 $ 114,624
„ $ 76,,022 -
$ 38,602
56
0
N
0 57
CITY OF NEWPORT BEACH
.
Statement of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual
.
Air Quality
Management District Special Revenue Fund
For the Year Ended June 30, 1996
•
1996
1995
Variance
.
Favorable
Budget ... Actual
(Unfavorable)
Actual
.
Revenues:
Intergovernmental revenue
$ 75,000 $ 96,790
$ .21,790
$ 56,106': ._
■
Revenue from use of money
5,000 15,975
10;975
8,017
and property
Total Revenues
80.000:. : 112,765
32,765
64,122
Expendituresi
■
Current:
General government:.
5,760
Community development
46;000 25,738
20,262
31,161
•
Total Experidifures
46,000. 25,738
20,262
36,921
Excess of Revenues
Over Expenditures.
34,000 `: 87,027
53,027
27,201
Fund: Balance, July 1 :
230,567 230,567
203,366
•
Fund Balance, June 30 .
$ '.264',567.',-1 317,594
$ .53,027.'
$ 230;567
0
N
0 57
M
CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures and Changes
in Fund Balance
.
Budget and Actual
Environmental Liability Special Revenue
For the Year Ended June 30, 1996
Fund
.
1996
1995
Variance
Favorable
■
Budget Actual
(Unfavorable) Actual
Revenues:
Licenses, fees and permits $ $ 88,219
$ 88,219 $
.
Expenditures:
Current:
Public Works 194,911
(194,911)
.
Excess (Deficiency) of Revenues ..
Over Expenditures (106,692)
(106,692)
■
Fund Balance, July 1
•
Fund Balance (Deficit), June 30 $ $ (106,692)
$ (106,692) $
0
58 .
id-
0
CAPITAL PROJECTS FUNDS 0
m
m
0
0
m
0
0
0
■ 59
CITY OF NEWPORT BEACH
Combining Balance Sheet .
All Capital Projects Funds
June 30, 1996
■
0
60 .
Capital
Assessment
CIOSA
.
Improvement
District
Construction
Assets
•
Cash and investments
$ ,.
$ 212,006
Restricted assets -cash and investments
$ 6,576,135
■
Total Assets
$
$ 212,006
$ 6,576,135
Liabilities and Fund Balances
Liabilities:
Accounts payable and accrued liabilities
$
$ 126
$ 775,985
Due to other funds
2,227,346
.
Total Liabilities
126
3,003,331
■
Fund Balances:
Reserved for encumbrances
41,122
3,572,804
■
Unreserved:
Designated for special projects
170,758
Unreserved, undesipated
■
Total Fund Balances
211,880
3,572,804
■
Total Liabilities and Fund Balances
$
$ 212,006
$ 6,576,135
0
60 .
■
■
.
Totals
1996
1995
•
$ 212,006 $
1,516,242
6,576,135
■
$ 6,788,141 $1,516.242
$ 776,111 $
15,523
.
2,227,346
3,003,457
15,528:.
■
3,613,926
32,949:
170,758
367770
.
M00 000......
3,784,684
1,500,719
■
$ 6,788,141 $
1,516,242
0
0
0 61
M
CITY OF NEWPORT BEACH
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
All Capital Projects Funds
For the Year Ended June 30, 1996 ■
Capital Assessment CIOSA .
0
62
Improvement
District
Construction
Revenues:
.
Intergovernmental revenue
Revenue from use of money,
and property
$ 162,389
.
Contributions
$ 301,043
4,997,591
Total Revenues
301,043
5,159,980
■
Expenditures:
489,882
1,587,176
■
Capital Outlay
Excess (Deficiency) of Revenues
.
Over (Under) Expenditures
(188,839)
3,572,804
Other Financing Sources. (Uses):
■
Operating. transfers in
Operating transfers out:...
$ (1,100,000)
■
Total Other Financing Sources (Uses) (1,100,000)
Excess (Deficiency) of
.
Revenues and Other
Sources:Over (Under)
.
Expenditures and Other Uses
(1,100000)
(188,839)
3,572,804
Fund Balances, July 1
$ 1,100,000
400;719 :=
■
Fund Balances, June 30
$
$: 211,880_
$ 3,572,804
0
62
0
m
m
0
m
■ 63
Totals
1996
1995
•
$
233,093
.
$ 162,389
14,131
5,298,634
285,674
.
5,461,023
532,898
•
2,077,058
65,409
■
3,383,965
467,489..
■
234,981
■
(1,100,000)
(701)
(1,100,000)
234;280
■
2,283,965
701,769
.
1,500,719
798,950
■
$ 3,784,684 $
1,500,719
0
m
■ 63
CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures and Changes in Fund Balance
■
Budget and Actual
Capital Improvement Capital Projects Fund
For the Year Ended June 30, 1996
■
1996 1995
■
Variance
Favorable
■
Budget Actual (Unfavorable) Actual
Other Financing Uses:
Operating transfers out $ (1,100,000) $ (1,100,000) $
■
Fund Balance, July 1 1,100,000 1,100,000 $ 1,100,000
•
Fund Balance, June 30 $ $ - $ $ 1,100,000
64
.
0
CITY OF NEWPORT BEACH
■ Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
. Assessment District Capital Projects Fund
For the Year Ended June 30, 1996
■
■
Expenditures
Capital Outlay 528,346 489,882
38,46.4:
Excess (Deficiency) of Revenues
Over (Under) Expenditures (194;753) : (188,839)
5,914 240,3U8?
Other Financing Sources:
Operating transfers in
234 ?981
Excess (Deficiency) of.Revenues
and Other Sources:Over ..
(Under) Expendiores; (194,753) (188;839)
5,914 475,289
400,719
5i
M
66 ■
CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures and Changes in
Fund Balance
.
Budget and Actual
CIOSA Construction Capital Projects Fund
For the Year Ended June 30, 1996
.
1996
1995
.
Variance
Favorable
.
Budget Actual
(Unfavorable) Actual
Revenues:
Revenue from use of money
.
and property
$ 162,389
$ 162,389 $
Contributions
4,997,591
4,997,591
Total Revenues
5,159,980
5,159,980
Expenditures:
■
Capital Outlay
$ 71356,871 1,587,176
5,769,695
Excess (Deficiency). of Revenues
Over (Under). Expenditures
(7,356,871) 3,572,804
10,929,675
Fund Balance, . July 1
Fund Balance, June 30
$ (7,356,871) $ 3,572,804
$ 10,929,675 $
.
66 ■
-.�.
,_- - _ z- �� -.�-_
■
ENTERPRISE FUNDS 0
0
m
Lj
0
0
0
m
m
0 67
0
CITY OF NEWPORT BEACH
Combining Balance Sheet
■
All Enterprise Funds
June 30, 1996
•
Cannery
Village
Assets
Parking
Water
Wastewater
.
Current Assets:
Cash and investments
$
14,906,649
$
1,976,075
.
Accounts receivable and accrued revenues
2,871,203
433,746
Due from other governments
2,504,005
39,297
Allowance for doubtful accounts
(2,504,005)
(39,297)
■
Inventories of materials and supplies, at cost
44,110
Restricted assets - cash and investments
1,733,358
.
Total Current Assets
19,555,320
2,409,821
Fixed Assets:
■
Land
$ "1,039,163
2,016,450
Structures
107,471
52,479,354
31,874,177
.
Equipment
627,374
43,797
Construction in progress
Accumulated depreciation.
.(33,196)
(22,392,347)
(22,136,876)
■
Net Fixed Assets
1;113,438
32,730,831
9,781,098
Total:Assets
$ 1,113,438
$
52286,151
$
12,190,919
.
Liabilities and,Fund Equity ;
•
Current Liabilities:
Accounts payable and accrued liabilities
$
2;962,324
$
26,909
Accrued payroll'
37,007 ::
12,637
.
Due'to other funds
$ .: 585, 961
Deposits .
84;878
Accrued interest payable
438,420
Bonds payable - current
845,000''
Total Current Liabilities
585,961
4,367,629
39,546
Noncurrent liabilities:
Bonds payable
15,435,000
.
Total liabilities
585,961
19,802,629
39,546
Fund Equity:
Contributed capital
5;060,494
9,145,593
Retained Earnings
527,477
27,423,028
3,005,780
.
Total Fund Equity
527,477
32,483,522
12,151,373
Total Liabilities and Fund Equity
$ 1,113,438
$
52,286,151
$
12,190,919
68 ■
■
Totals
460,45E
1996
1995
4,993,136
$ 16,882,724 $
26,191,705:
3,304,949
3;084;917
2,543,302
2,739,911 .
(2,543,302)
= (2,739,911)
44,110"
44,110
1,733,358
1,739, 505
21,965,141
31,060,237
3,055,813
3,055,613
84,4510002
66;396,045
671,171.
620,249
4. ;889,033 .
(44,562,419)
(42;868718).
43,625,367
092222.
$ .:2,989,233;: $
1,796089
49;644
49644'`'
585,961
661,822
84,878
97,843
438,420
460,45E
:845,000
820,00(
4,993,136
3,885,85E
15,435,000 `:; 16;280,00(
20,428,136 20;]65;85E
14, 206, 087 13,899,327
30,956,285 29,087,276
45,162,372 42,986,603
$ 65,590,508 $ 63,152,459
M
0
CITY OF NEWPORT BEACH
Combining Statement of Revenues, Expenses .
and Changes in Retained Earnings
All Enterprise Funds
For the Year Ended June 30, 1996 .
■
■
70 ■
Cannery
■
Village
Parking
Water
Wastewater
Operating Revenues:
.
Charges for services
$ 14,719,601
$ 2,132,326
Other —
$ 75,861
46,965
48,493
•
Total Operating; Revenues
75,861
14,766,566
2,180,819
Operating Expenses:
.
Purchase of water
8,141,732
Salaries and wages
1,894,872
697,819
Depreciation
A,299
1,125,656
720,671
.
Professional services
1,140,267
170,732
Maintenance and supplies '
480,763
310,113
Systems maintenance
960,384
106,123
.
Other:
602,010
Total Operating Expenses..
4,299
14,345,684
2,005,458
■
Operating Income
71,562
420,882
175,361
.
Nonoperating Revenues (Expenses):
Intergovernmental revenue,.
23,863
7,247
.
Interest income':
1,332,157
108,255
Other income
22,721
12,235
Interest expense
(305,274)
■
Bond issuance cost
Investment losses
•
Total lNonoperating
Revenues (Expenses)
1,073,4,67..
127,737
Net Income (loss)
71,562
1,494,349 -..
303,098
•
Retained Earnings, July 1
455,915
25,928,679
2,702,682.
Retained Earnings, June 30
$ 527,477
$ 27,423,028
$: 3.005,780
.
■
■
70 ■
0
0
0
0 Totals
71
1996
1995
■
$ 16,851,927
$ 15,552;410
171,319
217,175
•
17,023,246
15,769,285
•
8,141,732
7,255,987
2,592,691
2,887,010
.
1,850,626
1,475,755
1,31 -0,999
951,485
790,876
687,414
622;580
602,010
651;279
■
16,355,4.41
14531;1510
.
667,805
;1,237,775
.
34'110
79710
1,440,412
1,148,685
34,956
-
.
(305,274)
(350,579)
(396,230)
(2,739,911)
.
1,201,204
(2,258,325)
1,869,009
(1,020550)
•
29,087,276
30,107,826
■
$ 30,956,285
$ 29,087 276
71
0
CITY OF NEWPORT BEACH
Combining Statement of Cash Flows - All Enterprise Funds .
For the Year Ended June 30, 1996
Cannery
Village .
Parking Water Wastewater
Cash flows from operating activities
Operating income $ 71,562 $ 420,882 $ 175,361 .
Adjustments to reconcile operating income.
to net cash provided by operating activities:
Depreciation 4,299
1,125,656
720,671
Intergovernmental revenue
23,863
7,247
Other revenue
22,721
12,235
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable
(149,267)
(70,765)
(Increase) decrease in due from other governments
194,059
2,550
Increase (decrease) in allowance for doubtful accounts
(194,059)
(2,550)
(Increase) decrease in inventories of materials
and supplies, at cost'
(Increase) decrease in other assets
Increase (decrease) in accounts payable .
1,181,567
11,57T:.
Increase (decrease) in accrued payroll
Increase. (decrease) in due to other funds (75,861)
Increase (decrease) in.deposit$
(12,965)
Total adjustments . (71,562)
2,191,575
680 965
Net cash provided by operating activities
2,612,457
856,326
Cash flows from. capital and related
financing activities:
Acquisition of capital assets
(12,058,756)
(446,689)
Principal payment-
(820,000)
Proceeds from Bond issuance
Interestpaid
(898,878)
._.
Net cash provided by (used far) capital and
related financing activities
(13,777,634)
(446,689)
Cash flows from investing activities.
Interest on investments
1,332,157
108,255
Loss on investments
Net cash provided by (used for)
investing activities
1,332,157 .-
108,255
Net increase (decrease) in cash
and cash equivalents
(9,833,020)
517,892
Cash and cash equivalents; July 1
26,473,027
1,458,183
Cash and cash equivalents, June 30 = $
$ 16,640,007
$ 1,976,075
Noncash Activities:
Contributed Capital $
$ 306,760
$ -
Capitalized interest $
$ 571,566
$ -
72
■
■
■
■
■
■
■
■
■
■
■
Totals
1996 1995
$ 667,805 $ 1,237,775
1,850,626
31,110
34,956
(220,032)
196,609
(196,609)
1,193,144
(75,861)
(12,965)
2,800,978'
3;466,783
(12,505,445)
(820;006)
(898,878)
(14,224,323)
1;440,412
1,475,755
79,710
(307,875)
(2,739,911)
2,739,911
10 ;082..
81
463;355
13,155
(1.73,751)
(6;137)
1,554;375
2,792;150.
(4,014,045)
18;763;770`
(350,579)
12,339,146
1,148,685
(2,739;911)
0 73
1,440,412
, (1,591 -,226)
■
(9,315,128)
.13,540,070.,
27,931,210
14,391,140
■
$ 18,616,082
$ 27,931,210?
.
$ 306,760
$ 60,580
$ 571,566
$ 460,458
0 73
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
Internal
Service
Funds
(41 qM1�y
0
INTERNAL SERVICE FUNDS 0
0
m
0
0
0
n
0
m
0
. 75
CITY OF NEWPORT BEACH
Combining Balance Sheet
All Internal Service Funds
June 30, 1996
Fixed Assets
Equipment
Insurance
8,004,775
Totals
6,203,567
Assets
Reserve
Equipment
1996
1995
Current Assets:
Net Fixed Assets -:.
4,845;927
4,845,927
Cash and investments
$ 90,769
$ 888,294
$ 979,063 $
816,318
Accrued revenue
$ 5,393,983
8,370
8,370
49,934
Deposits with other agencies
17,227,030
1,069,356
18,296,386
631,284
Inventories of materials and
Accounts payable and accrued' liabilities $ :.
supplies, at cost
$ 231,851
146,348
146,348
154,054
Total Current Assets
90,769
1,043,012
1,133,781
1,651,590
Fixed Assets
Equipment
8,004,775
8,004,775
6,203,567
Accumulated depreciation
3,598,677
(3,158,848)
(3,158,848)
(2,461;174)
General liability
Net Fixed Assets -:.
4,845;927
4,845,927
3,742;393
6,484,648
Total Assets $.
90,769
$ 5,888,939 ,
$ 5,979,708
$ 5,393,983
543 }174
12,239,555
Liabilities and Fund Equity ..
Total Liabilities
17,227,030
1,069,356
18,296,386
Current Liabilities:
Fund Equity:
Accounts payable and accrued' liabilities $ :.
..609;112`
$ 231,851
$ , 840,963
$ 192,879,
Accrued payroll
101,372. ,
16,990
118,362
118,362
Due to other funds
'1;270,165:
(17,136,261)
1,270,165
13,329
Capital leases -- current
277;341
277,341.
199,273
Workers' compensation— current
2;150,000:..
2,150,000
1,850,060
Generalliability-- current
650,000
650,000
500;000
Compensated absences- current
750,000:.
750,000
700;000
Total Current Liabilities `
5,530,649
526;182
61056,831
3,573,843
Noncurrent Liabilities
Capital Leases
543;174
543,174
525,378
Workers' compensation'
3,598,677
3;598,677.
3,568,315
General liability
1,613, 056
1,613, 056.
3, 738, 056
Compensated absences
6,484,648
6,484;648`.
6,606,642
Total Noncurrent Liabilities
11:;696,381
543 }174
12,239,555
14,438,391
Total Liabilities
17,227,030
1,069,356
18,296,386
18,012,234
Fund Equity:
Contributed Capital
4,097,648
4,097,648
4,097,648
Retained Earnings (Accumulated Deficit)
(17,136,261)
721,935
(16,414,326)
(16,715,899)
Total Fund Equity
(17,136,261)
4,819,583
(12,316,678)
(12,618,251)
Total Liabilities and Fund Equity $ 90,769 $ 5,888,939 $ 5,979,708 $ 5,393,983
W;
■
0
CITY OF NEWPORT BEACH
. Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
All Internal Service Funds
. For the Year Ended June 30, 1996
■
■
■
■
■
Insurance
Reserve Equipment
Operating Revenues;
Charges for services $ 3,658,847 $ 3,561,868
Other 61093 5,130
Total Operating Revenues 3,664,940 3,566,998
O ratan Ex arises:
Totals
1996 1995
5 $ 5,872,717
3 2,694,066
pe 9 p
1,373,797
Operating transfers out
Salaries and wages
> (2540t3Q) ''
935,387+++
935,387
(250;000)
Depreciation
1,011,424
1,008,235
1,008,235
1;
Professional services
355,877
55,282
55,282
Maintenance and supplies
Deficit), July 1
150,525
'1501525
(17,071,776)
Fleet parts and supplies
Retained Earnings (Accumulated
404,069
404,069
Workers' compensation
2,473;017
$ (16,414,326) $
2,473;017
3
Claims and judgments
456,599
4561599
Compensated absences
1,337;344
1,337;344
1
Total Operating Expenses
41266960
2,553,49&
6,820,458
1" '9
Operating Income (Lass),
(602,020)
1;013,500
411,480
Nonoperating Revenues(Ezpenses) :'
Intergovern mental revenue .
12:953+
12,953
Interest income
Gain on sale of fixed assets
164:854.'
-16,4,854
Interest expense.
(37,714)
(37,714)
Total Nonoperating Revenues
140 093
140,093
Income (Loss) Before
Operating Transfers
(602.020)
151. 593
551,573
Operafing transfers
,572
Operating transfers in
1,373,797
Operating transfers out
(250,060
> (2540t3Q) ''
(362,373)
Total operating transfers
(250;000)
(250,000)
1,011,424
Net Income (Loss)
(602,020) 903,593
301,573
355,877
Retained Earnings (Accumulated
Deficit), July 1
(16,534,241) (181,658)
(16,715,899)
(17,071,776)
Retained Earnings (Accumulated
Deficit), June 30
$ (17,136,261) $ 721,935
$ (16,414,326) $
(16,715,899)
77
CITY OF NEWPORT BEACH
Combining Statement of Cash Flows - All Internal Service Funds .
For the Year Ended June 30, 1996
,I
J
78 0
■
Insurance
Reserve
Equipment
.
Cash flows from operating activities
Operating income (loss)
$ (602,020)
$
1,013,500
Adjustments to reconcile operating income (loss)
■
to net cash provided by (used for) operating activities:
Depreciation
1,008,235
Intergovernmental revenue
12,953
.
Changes in operating assets and liabilities:
( Increase) decrease in accrued revenue
29,599
11,965
■
(Increase) decrease in deposits with other agencies
631,284
(Increase) decrease in inventories of materials'
and supplies, at cost
7,706
■
Increase(decrease)in accounts payable -
491,702
156,382
Increase (decrease) in accrued payroll
Increase (decrease) in due to other funds ..
1,256,836
■
Increase (decrease): in workers' compensation
330,362
Increase (decrease) in general. liability
(1,975,000)
Increase (decrease) in` compensated absences
(71,994)
.
Total Adjustments.
1,197,241
Net cash provided by (used for ). operating activities
90,769
2,210,741
■
Cash flows from noncapital financing activities:
Operating transfers from other funds
Operating transfers to other,funds
(250,000)
.
Net cash provided by (used for)
noncapital financing activities
(250,000)
.
Cash flows from capital and:related
financing activities:
Acquisition of capital assets
(1;805,169)
■
Principal payment
(291,728)
Proceeds from sale of capital assets
245,846
Interest paid
(37,714)
.
Net cash used for capital and
related financing activities
(1,888,765)..
■
Net increase (decrease) in cash
and cash equivalents
90,769
71,976
.
Cash and cash equivalents, July 1
816,318
Cash and cash equivalents, June 30
$ 90,769
$
888,294
■
Noncash Activities:
Contributed capital
$ -
$
-
•
Acquisition of equipment by capital leases
$ -
$
387,592
,I
J
78 0
0
0
0 79
Totals
■
1996
1995
$ 411,480
$ (751,291)
1,008,235
1,387,572
.
12,953
29,997
.
41,564
(20,335)
631,284
■
7,706
13,156
648,084
(60,535)
105,962
.
1,256,836
330,362
(21429):.::
(1,975,000)
(3,085,340):.
■
(71,994)
213 416..
1,890,030
(1,424;207).
2,301,510
(2,175,49$) ..
1 373 797 `..
.
(250,000)
(362,3D):' '
.
(250,000)
1,011,424
■
(1,805,169)
(844,374)
(291,728)
(212,895)
■
245,846
60,240
(37,714)
(24,092)
■
(1,888,765)
(1,021,121)
.
162,745
(2,185,195)
816,318
3,001,513
■
$ 979,063
$ 816,318
•
$ 387,592
$ 453,772
0 79
I
m
AGENCYFUNDS 0
0
0
0
81
CITY OF NEWPORT BEACH
Combining Balance Sheet
All Agency Funds
June 30, 1996
82
■
Deferred
Special
Special
Business
Compensation
Assessment
Deposit
Improv. Dist.
Fund
Fund
Fund
Fund
Assets:
Cash and investments
$
25,215,057
$
2,590,989
$'1,352,958
$
34,099
Restricted assets - cash
and investments
756,141
Total Assets
$
25,215,057.
-` $
3,347,130
$-
.1,352,958
$
34,099
Liabilities:
Due to other funds
$
101,690
Due to bondholders
$
3,347,130
Due,to others:...:
$::1,352;958
$
34,099
Deferred compensation.
"= $
25;113,367
TotalLi4bilities.
$
25,21:5,057. ..,$.
3;347,130
$,1,352
;958
$
34,099'-
82
■
Totals
1996 1995
$ 29,193,103 $ 22,906,164
756,141
$ 29,949,244 $ 22,906,164
$ 101,690
3,347,130 $ 299,297
1,387,057 539,177
25,113,367 22,067,690
$ 29,949,244 $ 22,906,164
83
CITY OF NEWPORT BEACH
Combining Statement of Changes in Assets and Liabilities
All Agency Funds
For the Year Ended June 30, 1996
Balance Balance
June 30, 1995 Additions Deductions June 30, 1996
Deferred Compensation:
Assets
Due to other funds
Due to bondholders $
299,297
Due to others
539,177
Cash and investments
$ 22,067,690 .`::
$
3,474;105
$
1(326,738)-:.
$
25,215,057
Liabilities
Due to other funds
$
101,690-
$
101,690
Deferred compensation $
22,067,690.::
$
3,372,415
= $
(326,738) -'
$
25,113,367.
Total Liabilities -$
22,067,690
i -$.
3,474,105
$
(326,738).,...$:
25,215,057
Special Assessment:, -
_
.
Assets .
Cash and investments
$ 299,297:
` $
3,067,946
$
(796,254)',,
$
2,590,989
Restricted assets - rash
and investments
-
:- 756,141
756,141
Total Assets
$ -�:' 299,297.,
$
3,644,087
�$
'(796,254)::;;$
3,347,130
Liabilities
Due to bondholders
$ .; ,.299,297.
$
3,844,087
$
(796 254)::1
$
3;347,130
Special Deposit:
'Assets
'Cash and investments
$. 539,1.77
$
1 191;855
$
-(378 0741
$
1,352.;958
Liabilities
Due to others. •$�
..".:.5. 39177
$
1,191;855
$1(378074)''$
1,352;958
Businesslmprovement District':.
Assets
-
Cash and investments
$ -• -. -
$
77,871
$
'-: (43,772)
$
34;099
Liabilities
Due to others
$ -
$
'77,871
$"
(43772)`$
'34,099
Totals - All Agency Funds
Assets
Cash and investments
$ 22,906;164
$
7,831,777
$:(1.
1544,838)
$
29,193;103
Restricted assets - cash
and investments
7$6;1:41
756141
Total Assets
$ 22,906,164
$
8,587;91$
$ (:1,544838)
29,949,244
Liabilities
Due to other funds
Due to bondholders $
299,297
Due to others
539,177
Deferred compensation
22,067,690
Total Liabilities $
22,906,164
$ 101,690 $ 101,690
3,844,087 $ (796,254) 3,347,130
1,269,726 (421,846) 1,387,057
3,372,415 (326,738) 25,113,367
$ 8,587,918 $ (1,544,838) $ 29,949,244
84
■
■
J y
0
ACCOUNT GROUPS 0
0
m
0
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
85
CITY OF NEWPORT BEACH
Comparative Schedule of General Fixed Assets
By Source
June 30, 1996
General Fixed Assets
1996
$ 24,580,998::;
.38',911,208
10,516,968
$ 74,009,174
$ 74,009,174.
1995
$ 24,580,998
38,421,877
10,349,188
$ 73,352,063
$ 73,352,063
Total Investment in Fixed Assets' $ .74,009,174" $ 73;352,063
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
CITY OF NEWPORT BEACH
General Long -Term Debt Account Group
Comparative Schedule of General Long -Term Debt
June 30, 1996
Amount Available and to be Provided for the
Payment of General Long -Term Debt
Amount available in debt service fund
Amount to be provided for the payment
of general long -term debt
General Long - Term Debt Payable
Certificates of participation payable
Capitalized leases
Note payable
87
1996 1995
$ 579,731 $ 561,193
9,941,342
9,510,396
$ 10,090,127 $ 10,502,535
$ 7,090,000 $ 7,235,000
81,394 248,296
9 91 R 731 3 n19.239
1.1.1
■
■
■
■ Statistical Section
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b
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AMIA
1
1
0
CITY OF NEWPORT BEACH
Miscellaneous Statistics
■
June 30, 1996
General Infonmation:
iDate
of Incorportation .................................................
...............................
...........................1906
Form of Government ................................
............................... .......................Council
- Manager
Population:
Permanent ...............
... ................69,069
.
.
Summer .................................:...... . .
. . . ......
. ............. .............2
. ....... ...... ..................100,000
Tourist ....................................... ...............................
................
o 1001000 per day
Housing units.......... ........ .....
Factor
.................... ...............................
....35,631
Occupancy per dwelling unit..
.................. ...............................
. ::.::.2.167
.
Area:
Square Miles
Acres
Land............ ....................:.......... ..........................14.01
............................
........................ 9,024.0
Bay................................ .: ... ...... .....,.........................
2. 04.......................
.............................1; 305.6
Ocean...:....................:............ ...............................
20.00 ......................
............................12, 800:0
Total ....:........ ...........:...... :.. ........... ...................,:.....36.05
.............................
......:.....:........23,129:6.
Population Density:..
Per square mile; ..................
..............
.......................
....................... .......:.4,898.5;.
Peracre .................:........:..:.............:.......:.......................
...............................
..........................7.65.
Recreational Area:
Acres'
Ocean Water ..................:......:.. ....
......... ......... ......:,.:......
.. ....::...12,800
HarborWaters ................................... :..::
...............................................................................
1,306
.Parks.-
..... ..........
........: ......... .........
: ......................
Beaches .............:..... ...
. ...............................
...... ....................,..224
Total .......................::. .....
. .........
....... .......................14,465
■
..........
Water Frontage:
Miles
■
Ocean ........................ .......... ......................................
..................:.....:......
.....::.....7.21
Harbor .................................................. ..............
......................................................
...::......... 35.94
Total .............. . ......................... :...................................................
........
.................. ..... ::..........43.15
Newport Harbor:
■
Boats ......................... ....... ..........
........................
............. ..........................9,000
Residential................................ ...........................................................................................
1,230
Commercial Slips and Side Ties: ::.::..::::.::.........::.
...............................
..........................2,119
.
Bay Moorings.. ......................................................................................................................
1,221
Public Safety:
Police
Fire & Marine
Numberof Stations ..............................................
1.....................................
............................... 6
Number of Personnel ......... ...............................
206.. ...............................
............................120
■
89
N
(1) Includes General, Special Revenue, Capital Projects and Debt Service Funds. .
(2) No Community Development Block Grant funds were received by the City prior to fiscal year 1985 -86.
(3) Historical data for Debt Service expenditures is unavailable prior to fiscal year 1992 -93.
Source: City Finance Department •
90 ■
Governmental Revenues by Source (1)
(Last Ten Fiscal Years)
S
Fines,
Licences,
Inter-
Charges
Forfeitures
Revenue from
■
Fiscal
Fees and
governmental
for
and
Use of Money
Year
Taxes
Permits
Revenue
Services
Penalties
and Property
Other
Total
■
1986 -1987
$ 31,663,304
$ 2,387,411
$ 7,132,740:;
S 3,963,0611:
$ 2,372;335
$ 6,907,803 $
5,298,061
$ 59,724,715
1987 -1988
34,076,119
2,294,447
8,157,975
4,266,091
2,881;443;
7,528,267
5,053,836
64,258,178
■
1988-1989
37,245,279
2,517,205
6;858,019
':` 4,821,564"
2,964,864
9;391,781 .
3,649,089
66,447,801
1989-1990
38,389,789 -
2,653,730
16,537,544
.::, 41899,970'
3,376,570-:
, 9,766,006- ..2,441,088
78,064,697
.
1990 -1991
40,479,235:
-- 2,808,179
": 11,029,004
-- 3,466;023 --
3,114,983
9;999,416
3;555,699
74,452,539
1991
-
9,611;524
-..
-1992
40,466,D2
1,903,044:
_.10,819,561
-'_- 4;609,812
3,053,246
2,722,037
73,185,456
1992 -1993
- 38,471,775-
-- 1,795,238
1,621643 ,--
X4',703,200
2,582,969
9,469,060
1,243,093:
65,886,978
`--
.
1993-1994:,.
.' 39,809;139.1
1,948,855..-
8,993;289
.5,077,369
2,706,194
:8,660,599
.2;1.39567
69;335,012
1994 -1995
39,7191830
21981186
.`10,704,000 :.
5,109,513
3,156,530
9,676,426.
1,300,722
71865,207
.
19951996
.` 42,8531480
3,052,113
' ..'8,315,543.
6,278 ;416
..2,855;063
11,000,272 :,
8,14Q,371
82;695;258
(1) Includes General, Special Revenue, Debt Service and Capital Projects funds.
■
Governmental `Expenditures by Function (1)
(L:ast.Ten Fiscal Years) ,
■
Ftscal
.: General:.
-PAlic
Public
Community
Community
Capital
Debt
Year.,
Government
Safety
Works
Developttient
Services
Out
Service
Total
.
1986-19V'$,,,
-:- 5,188,407
$ 20,371 -,613
13,668,069
$ 447,248:.
. $ 5,026,323
$ 12,522,935
$ 5�, 224,595
1987 -1988
078,412
21,845,493.
13043,460
:' 450,234
5,234,304
16,657,535
62;109,438
1988 -1989
5,248,695
22,014,671
-. -.- 13,870,347
1,603,57I:
5"99,6 , 335
' .. 11,175,926
' '<59,909,595
1989.1990
5365,259:
26,729,452
15,804,705`: -
- - -- 185,924.
6,609;717
23,611,143��'
78,306,200
.
1990 -1991
5,274,572 --
' -: 26,911,630
. - 17,247,313
183,327
7,283,300. ,..'
18,768,787
75,668,929
1991
2,937,016
�:..
■
-1992
30;987,412
12,372,598
3,4119623
8,859,639
16,034,094
74,612,372
1992 -1993
4,359,857
31,209;589
-12,7791215
3,636,092
8,520,758
12;220,226$
1,155,407
(3) 73,881,144
1
•
1993 -1994
4,607,009
32,330,338'1-
15,018,898,
3,406,712,:;
5310 7-52
13,605,703
1,175,175
76,054,587
1994 -1995
5,505,610
33,389,922
14,661,343
' 3,336,672
5,857,959
8,523,773
1,550,294
72,825,573
.
1995 -1996
5,442,862
34,571,273
14,779,614
2,952,247
5,916,194
11,291,759
1,069,045
76,022,994
(1) Includes General, Special Revenue, Capital Projects and Debt Service Funds. .
(2) No Community Development Block Grant funds were received by the City prior to fiscal year 1985 -86.
(3) Historical data for Debt Service expenditures is unavailable prior to fiscal year 1992 -93.
Source: City Finance Department •
90 ■
. $90
$80
• $70
. $60
Y
A
■ A $50
0
$40
330
$20
$111
. $o
■
Governmental Revenues and Expenditures.
1996 -87 1987 -88 198"9 1989 -90 199(1.91 1.991 -92 1992 -93 1993.94 1994 -95 1995-96
Governmental Revenues by Source
(Fiscal Year 1995 -90
51 X,
■ Taxes
WN ■i.icenses & Pernilts
■lntcrpovernmental
■Charges [or Services .
■1'inesR l'orfcit'tires
Elise of Aloney & Property
13%,
■ vliscetlaneous
3'ib %
8CA 103;
Governmental Expenditures by Function
(Fiscal Year 1995 -96)
7'Y6-
1 iGeneral Government
■Public Safety
15% ■Public Works
® community Development
■ Culture and Recreation
■ capital Outlay
■ Debt Service
Y%V
19%
91
•
Asssessed and Estimated Actual Value
of Taxable Property
(Last Ten Fiscal Years)
Total
■
Fiscal
Secured Public
Unsecured
Assessed & Estimated
Year
Valuation Utility
Valuation
Valuation
.
1986 -1987
$ 7,090,960,057 $ 78,565,100 $
649,193,026
$ 7,818,718,183
1987 -1988
7,772,854,712 80,739,100
841,558,697
8,695,152,509
.
1988 -1989
8,463,563,058 575,2201(1)
:689,901,568
9,154,039,846
1989 -1990
9,120,361;600': 575,220 (1)
776,287 ;650
9,897,224,470
.
1990 -1991
10;013,611,946 575,220 (1)
894,906,739
- .10,909,093,905
1991 -1992
10,583,498,762 354,820 :.(1)
1,010,3171328.
11`,59.4,170,910
1992. 1993
11,192,809,652 354,820 (1)
893,375,850
12 076,539,722
.
1993 -1994
11,179,271,032 354,820 (1)
865,424,090
12,045 049,9 42
1994 -1995
11,178,202,789,: 354,820 (1)
686,344,530
11 864,902;139 :.
.
1995 -1996
11;354,688;863 354,820 (1)
754;122,920
12,109;166,603
(1) Effective
FY 1988-89, public utility values have decreased due td AB2890 and AB454 transferring
the public
utility values to a county -wide tax rate area.
Secured. Property Tax Levies and; Collections
■
:(Last Ten Fiscal Years)
Total , Total Percent
Delinquent .'-
% of Total Tas
.
Fiscal
Current_': - Current of Levy
Tax
Total Collections.°
Year
Levy. Collections',', Collected
Collecuons `., , Collections Total.Levy'
•
1986-1987 $
14,395;151 $ - 13,783,508 95.75% fi
,:465,7$0.
%14,249,288 9,$.99%
1987 -1988,
15,942,564 15,311519 96,04%
493 507
;15,805,026 99.14%
.
1988 -1989
17,308,591 16,678;689 96;36% „''
432,523 :
17,111,212 98.86%
1989 -1990
18,962,055 1`8,119,326 95:56%
392,912
18;512,238 97.63%
■
1990 -1991
21,031,117 19,863,098 94:45%
433,571 '`
20,296,669 .' 96.51%
1991 -1992
21,516,647 21,255177 98.78%
504,000
21 759,177 101.13%
■
1992 -1993
18,859,8891 (1);; . 18,508,590
536 760 "
19 396,649 102.85%
17,131159:
°h
1993 -1994
17,870,028 (2) >.:. ,;95;87%
:526025
17,657,184 98.81
1994 -1995
17,730,237 (2) 17,105,142,(3) W47%%
409,355 (3)
17,514,497 98.78%
1995 -1996
17,843,233 (2) 17 432,840 97.70%
368,913
17,801,753 99.77%
(1) Effective 1992 -1993,
Orange County reduced Secured Property Tax
Levy as a result of the State Budget Process.
(2) Effective 1993 -1994,
Orange County again reduced. Secured Property Tax Levy as a result of the State Budget.
.
(3) Funds were withheld
due to the Orange County Bankruptcy.
Source: County of Orange Auditor - Controller's Office
.
92
$12,000
• S1u,5oo
^
4
r.
c
Q
$9.000
■° $7,500
5
. C
w $6,11110
$4,5011
s
i
t
$3,000
• $1,500
• So
■ $25,000
$20,000
4
Q
. o
$15,1100
S
v.
. o
. O $111,1100
7.
S
$SAOo
• So
Total Assessed Valuation / Property Tax Collections
(Last Ten Lriscal. Years)
$25,000
$20,1100 ^
L
9
Q
h
$15,000
A
$ "10,000 -.
S
r.
$5,000
$50o
v
ti
k
7
Q
$400 0
$300 =
a
C
$200
`c
$coil
So
1986 -87 1987 -88 1988 -89 1989 -90 1990 -91 1991 -92 1992 -93 1993.94 1994 -95 1995 -96
93
Construction Activity
(Last Ten Fiscal Years)
Fiscal Building Permits Percentage Estimated Percentage
Year Issued Change Valuation Change
1986 -1987
1987 -1988
1988 -1989
1989 -1990
9,859 19.32% :. 180,434,990
9,337 5.29% 120,512,114
91228
-117%
8,800
-4.64%
7,600
- 13.64%
7,268. , -
74:37%
194,655,287
:118,087,775
116,5010,000
0.89%
- 33.21%
61.52%
3933%
77,413,996 29.94%
71251
::: -0.23% 72,170,274
- 6.77%
6,986
-3.66% 70,339,522
_ 2.54%
7,672
9.82% 79,691,510
1130%
8,302 '.
8.20% ; 145,760,839
8.30%
Building:and Planning Department.
4;331,692 '
1992
4,3S9,067
x1993 ;
4;582,022
Bank Deposits
4;193,643
(Last Ten Fiscal Years)
4,219,849
S (thousands)
Calendar Year
;Bank;Deposits
'i986 - -'
4,702,801
1987
6,011;254
1988 > :
6,529 897
1989.
6,631;511
1990
6,971,424
1991:,
4;331,692 '
1992
4,3S9,067
x1993 ;
4;582,022
1994'
4;193,643
1995
4,219,849
1996 data for bank deposits will not be available until 12 -31 -96
Source: The Findley Reports on California Financial Insitutions
94
■
■
e
■
■
■
■
Estimated Value of Construction / Number of Building Permits
(last Ten Fiscal. Years)
■
$7.000
■
.
$200
55.000
$1811
■
$8,000
$160
$3.0110
n
$140
+�
$120
i;
$100
'a
$80
r
$60
V
$40
•
$20
$0
Estimated Value of Construction / Number of Building Permits
(last Ten Fiscal. Years)
■
$7.000
■
S6.000
55.000
■
$8,000
$3.0110
:z.non
$1,uno
986 -87 1987 -88 198 &89 1.989-90. 1990 -91 1991 -92 1992 -93 1993 -94 1994 -95. 1995-9E
Bank Deposits
(Millions of Dollars)
19x6 198 1786 1989 1990 1991 1992 1993 1994 1995
95
10,000
9.000
8,000
7,000
6,000
fi
a
5,000 c
4,000
z
3.000
2,000
;1,000
Property Tax Rates -- Direct and Overlapping Governments
Compdtat on of Legal Debt;_Margin
(Per $100 of Assessed Value)
Total assessed yalue of all real &personal property
$12,109,166,603. (1);,'
(Last Ten Fiscal Yeats)
Debt limit percentage
15%
•
■
$1 816,374;990
Amount of debt applicable to debt lima
$7,090,000
Legal debt margin
$1,809,284,990
.
Fiscal
School
County
County Flood County, City
Metro Water
market value.
Year
Districts
Improvement
Control & School Levy
District
Total
1986 -1987 $
0.01186
$ 0.000271:141:1,
0.00142 $
1.00000
$ 0.01480 $
1.02835
■
1987 -1988
0.00916
0.00022
0.00117
1.00000
0.01120
1.02175
1988 -1989
0.00852
0.00022
0.00111
1.00000
0.01100
1.02085
.
1989 -1990
0.00826
0.00017
0.00093
1.00000
0.01210 ,.;.,
1.02146
1990 -1991
0.00252
0.00016.
0.00082
'1:00000 '
0.00970
1.01320
.
1991 -1992 _
0.00231
0.00012
0:00063
1.00000
0.00744
1.01050
1992 71993
0.00239, -
0.00013
0.00065
1.00000
0.01171
1,01488
1901994
0.00000
0.00011
0:00067
1.00000
0.00326
1.66404.
.
19944995
0.00000.-
0.00013.
0:00037
1.00000
0,00881
1.0093f:
1995 -1996
0 00000
A:00012
0.00000
1.00000
0.00890
1.00902 `.
■
Source:, County
o€ Orattge.AucLtor-
Controller's
Office
Compdtat on of Legal Debt;_Margin
June 30;:.1996
Total assessed yalue of all real &personal property
$12,109,166,603. (1);,'
Debt limit percentage
15%
•
Total debt limit
$1 816,374;990
Amount of debt applicable to debt lima
$7,090,000
Legal debt margin
$1,809,284,990
.
(1) The fiscal year 1996 debt limit is based on assessed value being equivalent to 100% of
market value.
■
Source: City Finance Department
96
t
CITY OF NEWPORT BEACH
Principal Taxpayers
June 30, 1996
Property Tax
(listed alphabetically)
Principal Taxpayer jype of Business
Aetna.Life Insurance Company Life Insurance
:Downey Savings.,& Loan
Financial
HMH. Properties, Inc.
Real Estate
Hughes Aircraft Company .
.Aerospace
Irvine.Compariy.
Real Estate
Irvine.. Apartment.Communities
Real.Estate .
Koll Center
Office Buildings .
Park Newport land Ltd.
Real Estate
Rockwell International Corp.
:Aerospace
Security Trust
Financial
Source: California Municipal Statistics, Inc.
97
1995 -96
Assessed. Percent
Valuatioh fo Total
$38,060,508
0.34%
$42,388,247.
0.37%
$66,987,885
0.59%
$38,033,216
0.60%
$766,728,254
6.75%
$158,290,709
1.39%
$96;896,1.03
0.85%
$122;010,813
' `0.310/
"'.
. _ $331,153,939
$80,1456,551
0.71%,
Schedule of Direct and Overlapping Bonded Debt •
June 30, 1996
■
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/96: $0 .
Source: California Municipal Statistics, Inc. 98
•
1995.96 Assessed Valuation:
$11,901,535,380
(after deducting $207,631,223 redevelopment incremental valuation)
DIRECT AND OVERLAPPING BONDED DEBT:. % Applicable
Debt 6/30/96
Orange County
7.489%
$29,582
Orange County General Fund Obligations -,
7.489
88,301,226
Orange County Pension Obligations
7.489
24,203,349
.
Orange_ County Teeter Plan. Obligations ..
7.489
.'.11,607,950
Orange County Transit District Authority- ` - _- - +. ,
7.489
1,580 179
Orange County Sanitation Districts N5,6 &'7- Certificates of Participation 6.488- 94:075
28,189,999
Orange County Water District Certificates of Participation
1.339
2,759,076
- ,Metropolitan Water District -' - - ' :'.
1.482
8,964;544
.
Municipal Water District of Orange County Water Facilities Corporation
- 0.046
37,975.
Coast Community College District Certificates of Participation
26.442
5,395,224
Saddleback Community College District Certificates of Participation
0.905
416,572
.
Rancho Santiago Community College District Certificates of Participation
4.071
24,630
Newport Mesa Unified 5600l District. Community Facilities District N90-i
35.070
5,030,792
Santa Ana Umfied.Sehool District and Certificates of Participation
9,468
11922,004
Irvine Unified School. District
0.004
' 649
Irvine Ranch Water;District Certificates of Participation and Improvement
Districts 0.020. 14.648
:3,466,439
City of Newport $each Certificates of Participation :.:
City of
100.
7,090,000
■
Newport Beach Special;Improvement District No. 95 -1
100:000
7,500,000
City of Newpci t Beach 1915 AcrBonds
,. 100. ..
2;372,132 ,
•
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT' '
$198,890,322
Less: Orange County Transit Distria'Amhority (80 %self - supporting)
1,264¢43 .:
-- Orange County Water District Certificates of Participation (16 6 self
supporting)
2,73614I'0
Municipal Water District-of Orange County Water Facilities
■
;Corporation (10001i self - supporting)_ _- -
37,975
TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT _
'$194,851,794
■
(1) Excludes tax and revenue anticipation notes, revenue mortgage revenue.
tax allocation bonds and non- bonded,capital lease obligations;
Ratios to Assessed Valuation:
.
Direct Debt 0.06%
Total Gross Debt 1.67°%
Total Net Debt 1.64%
.
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/96: $0 .
Source: California Municipal Statistics, Inc. 98
Revenue Bond Coverage
(Last Ten Fiscal Years) (3)
Net Revenue
. Fiscal Gross Operating Available for Debt Service Requirements
Year Revenues (1) Expenses (2) Debt Service Principal Interest Total Coverage
1994 -1995 $ 14,817,854 $ 11,471,118 $ 3,346,736 $ $ 460,458 $ 460,458 7.27
■ 1995 -1996 16,145,307 13,226;028 2,925;279 820,000 438,420 1,258,420 2.32
(1) Total revenues includes interest and intergovernmental revenues.
. (2) Total operating expense exclusive of depreciation.
(3) No revenue bonds were issued prior to fiscal year 1994 -95.
■
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4.61
100
r
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r
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r
r
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