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Home My WebLink AboutFiscal Year 1998-99 Financial Statement■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ a ■ ■ ■ ■ ■ ■ ■ ■ ■ Lop i MO I M014, 0 Rel 4~1 gp'ma!ec� me 30, X999 wp(57 �LIF Comprehensive Annual Financial Report For the Year Ended June 30, 1999 Prepared by the Administrative Services Department Dennis Danner, Director •o � .. ..• .� � ■ ■ ■ ■ i ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Introductory Section ■ ■ ■ C CITY OF NEWPORT BEACH ■ C Comprehensive Annual Financial Report Year Ended June 30, 1999 ■ ■ T TABLE OF CONTENTS ■ I INTRODUCTORY SECTI,t1 (Unaudited) ■ ■ L Table of Contents Letter of Transmdtal ...... ....... ............w ellence in Financial Reporting ...xviii ■ C CSMFO Certate oAAward ornOuts to e xix List of Grty,Officials.... x xx ■ O Organa atirsn ..... ......... .. �..: ■ F FINANCIAL SECTION �z ■ 1 u' 1. ■ G General Pd' Financi0VStaiements ur ■ ° � e "6 i °1 ,� � e C � sta i c ven ; : ' • Circulation and Transportation Fund. .. . — . ............................................................. 56 • Building Excise Tax Fund ...................................................... ............................... 57 • Combined Transportation Fund ............................................... .............................58 = ^Corrbming • Community Development Block Grant Fund .......................... ............................... 59 • Ackerman Donation Fund ........................................................ .............................60 • Air Quality Management District Fund ................................... ............................... 61 • Environmental Liability Fund .................................................. ............................... 62 • Supplemental Law Enforcement 63 • Miscellaneous Grants ........... ............................... 64 P'lency Funda , a °' ombining Balan�Oi$heet _ ...'. " a' .62 = ^Corrbming S #aterrleht of Chringes in,}�ssets,and Liabilities... ..... 8 Account Groups General; Fixed °Asset Account Group: Comp "a "'native!$' 6duW 6f. General Fizetl,gssats ,'. 86 w °General <Lon ®" Ter�i�,Debt Account Gropp Corfiparatroe &e duAl i, f General L.o* Terr &q 'bt All TATISTIGAL SECTION (Urtautli #ed) iv{rseellaneaus Statistics.. Governmental Revenues by Source Last Ten Fiscal Years ; 90 Governmental Expenditures by Function, Last Ten Fiscal Years ..... 90 Assessed and Estimated-Actual Values of Taxable ; Property, LagtTen Fiscal Years 92 Sec Tax Levies and Collections, LastsTen•Fiscal Ye�frs . ;..92 ConstrUCtiort Activity', Last Ten,Fiscal Years ......:_. I..'..... x:....94 Bank Dep _Its, Last�Ten Fiscal Years `., ......................... :. ....... 94 Property fay Ries, Dire and_verlapping Governments, Last Ten Fiscal Years 96 Computati&h'.. #_egel DebtMafgm _...... ...... .....96 Principal Property Taxpayers as of June 00,1999. ..... 97 Schedule of Direct °end fArerlapping Bonded Debt; ; ::....:. :.....................98 Revenue Bond Cover�e, Lastb.Ten Fiscal Years ...................99 Demographic Statistics, Lastarfi`5srsl Year. ..... .....` ..... ............................100 ■ ■ ■ ■ ■ n ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ SEW POST CITY OF NEWPORT BEACH V '\ = P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915 "t Cl Fp RN Honorable Mayor and City Council City of Newport Bead, Newport Beach-,,-,C lift The Comprehensive A ended June 30, 1999_; state statutes. These uncial Report of submitted, as n s and statutes i iancial position nts audit this rep mpleteness, and fairness` of the data presented, :including; all ►nagement. We believethe information presented is 'accurate d that itis reported in a manner designed to fairly' present thi s`ults of operations of the various:funds;',account groups, and y of Newport, Beach: All disclosures necessary: to`enable derstanding of the City's financial activities have been includw is • report is `•presented in three sections. The lntroduct audited,, contains `. the table of contents, the transmittal letter ;,i City, .and a listing of: the City's principal elected and ap October 22, 1999 in supplying City expenditures Debt Service fiscal periods. tha financial ctntAmantc Ar the an the year Ices and ich unaudited contains selected financial and demographic information, don 'a multi -year basis. a full range of`services to its residents and visitors. Resources-'used se'rvices'and ~maintaining operations are classified, in three general gs: Current, Capital, _ and Debt -°Service. _.Sirtply stated ;``Current uld bey presumed to benefit the our fiscal er6d; Capital Id be presumed to benefit the current and future Asoal periods; and anoitures should be presumed to benefit past;'current, and future The City utilizes more specific eategones 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. 3300 Newport Boulevard, Newport Beach iii ■ ■ ■ Public Safety: Police, Fire, Paramedic, Disaster Assistance, and Marine Safety. ■ Public Works: Engineering, Construction, and Maintenance of public streets, ■ highways, buildings, parks, and infrastructure; as well as fleet maintenance and sanitation. ■ Community Development: Planning, Zoning, and Building Permit services and ■ enforcement. ■ Community Services: Libraries, Recreation, Arts & Cultural, and Social Services. ■ Proprietary Functions:' Enterprise Operations.for water and wastewater utilities; as ■ well as Internal Service Operations forrisk management and fleet maintenance and replacement. ■ ■ DE6GRIPTION OF REPORTING 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 improvernents, 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. the Newport Beach Public Facilities Corporation, which is a • ■ component unit of the City. This component unit, Which, is discussed below, is included,` in the City's reporting entity because of the significance of `its operational or financial' ■ relationship: with the City-1, Even though it is a legally separate organization, the City of ■ Newport Beach elected officials have continuing full or partial accountability for fiscal matters of the entity. The financial reporting entity consists of: (1) the City, (2) ■ 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, levytaxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, a component unit's balances and ■ transactions are reported in a.manner similar to the balances and transactions of the City. Component units are presented on ,a blended basis when the component unit's / governing body is substantially the same as the City's or the component unit provides services almost entirely to the City. ■ Blended Component Unit. The financial statements of the City of Newport Beach ■ include the financial activities of the Newport Beach Public Facilities Corporation (the ■ "Corporation'). The Corporation was formed on March 9, 1992, for the purpose of ■ ■ iv ■ assisting the City of Newport Beach in the financing of public improvements, including a public library. The Corporation is governed by a Board of Directors comprised of seven individuals appointed by. the City Council of the City of Newport Beach. The Corporation's financial data and transactions are included in the debt service fund type, capital projects fund type, and general long -term debt account group. Organizations Other than Reporting` Entity. The' following,, entities provide services within the City but are not component units: State ofalrfornia.C,ounty of Orange, and various school and otherspecial districts. =These entities do not rneetthe above criteria of a component unitand their 'financial information i&not included n thi"s*eport. LOCAL ECONOMIC CONDITION AND OUTLOOK Alth ©ugh the` C, , ut ' k ng -term tax base is broad and diverse, there are significant short - term,,fluctuations in all City'ravenues, including taxes. T he City's ,primary revenue sources are property ,takes;'sales, taxes, and uniform transient occupancy taxes: =All together, ;,taxes make up nearly, 50 %a of the City's entire revenue base and 65% of the City s General Fund revenues. : Although significantly smaller than the top three revenue sources, .other noteworthy individual revenue sources include state" motor vehicle: license fees, (VLF); parking meters, parking lots, business license taxes; franchisetaxes, interest income, and parking fines.- Other,,smaller sources of revenue are numerous and highly varied. Y With the economic downturn in the early part of this decade and subsequent State of California budget`aetions;ahe City suffered a significant and .ongoing,'ad I Verse- impact art its +.finances: For seyeratyears the City implemented aggressive measures to cope with I the economic hardships of the local- economy while attempting'to minimize the;effect oil service' delivery. Measures included reorganization, analysis of ^' mission ° critical services, outsourcing, ?staff reductions, revenue enhancement, financing ,'arid development agreements, use of;Cty reserves, capital improYement priontization' and many other retrenchment, tactics. 'However, the ,City has continued to provide'the highest quality services to,, residents and commercial establishments, even though some `of` these measures complicated the City's operating environment. There has been limited recent, growth in the number of employees, due in large part,,66bnversion of part-time e positions to full- time,; However, the reduced size of the,,- vw•ork °force has remained essentially unchanged. The City's overall financial- condition remains quite strong and A 6 aggressive response to current conditions, as d"ghtied :above,; should'addre,ss the situation appropriately. Newport Beach considers it essential'to maintain a healthy long -run financial condition, and the City is working hard to replenish its reserves. Policy changes that affect both expenditures and revenue sources have been instituted, and the effectiveness of these policies will be reviewed on a regular basis. v ■ ■ ■ Because of the City's outstanding beaches and harbor, Newport Beach attracts as many as 100,000 tourists a day. This tourist population helps to maintain the City's ■ strong economic base, but it also requires additional expenditures for routine public ■ services. Newport's unique geography adds to the beauty of the City but it also requires more employees per capita than other cities to provide the service delivery to ■ which Newport Beach residents have become accustomed. ■ The recent economic boom in Orange County and California has improved the financial position of the Cityiby.'substantially replenishing reserves that were utilized during the ■ early part of this, decade. Although a slowing economy is now evident in the City's ■ major revenue sources, :economic conditions are still favorable. In 199$ -99, property tax revenue increased 7;7% :as compared to the previous year's increase of 9.1 %. ■ Sales tax revenue increased 7.6 %e as compared to last year's increase of, 17.2 %. Uniform transient occupancy.tax revenue decreased 2.2 % as compared to last year's ■ increase of 8.7 %. Despite the cooling economic climate, the long -term outlook on the City's revenue stream is still healthy. ■ ■ As geographic and socioeconomic conditions in Orange County remain very desirable, property values in Newport Beach are projected to be solid for at least the next several .years. Thirty percent of the City's General Fund revenues are directly based on ,property values. Continued record sales with certain veteran local businesses coupled ■ with new, business: make a solid foundation for strong sales tax 'revenue -` ■ forecasts as well. ■ The City's comprehensive Capital Projects program was again particularly ambitious, •,'? with total ;spending of $30,484,366 actually taking place during fiscal year 1999. During." ■ the year, the Newport Arches interchange project was substantially completed. Also known as Newport Boulevard Improvements, this Or widened and replaced the ■ former Newport Boulevard :bridge extending over Pacific Coast Highway onto the ■ Balboa Peninsula. Total project costs of $15.7 million utilized several funding sources including Federal Intermodal Surface Transportation Efficiency Act, State Gas Tax, ■ Measure M, County Sanitation District contributions, special assessment levy proceeds and other cooperative agreement contributions. The project was substantially completed by June of 1999. The new bridge replaced one that was originally constructed"in 1934. ■ Three other bridges_under construction -this, year were retrofitted to comply with federal ■ earthquake standards. The current Balboa Island and Lido Island bridges were 'in ■ originally constructed 1930; while the Newport Island bridge was constructed in 1973. The design, construction, and construction management costs for these projects totaled ■ nearly $3 million. Ninety percent was funded by the Federal Highway Administration Seismic Retrofit Program, while the remaining portion was funded by the State of ■ California, Gas Tax Program. ■ ■ ■ Vi ■ ■ ■ ■ ■ In addition to the Newport Arches Interchange and Bridge Retrofit projects, other major projects included MacArthur Boulevard widening, 800 MHz communication project, and ■ the Citywide Slurry Program. ■ MAJOR INITIATIVES ■ ■ For the Year. Last fiscal year, 'a`s' the result of a jalnt agreement among the City of Newport Beach, tfre �ity�of Irvine, and the Irvine Company, ttie area known has Bonita ■ Canyon (461 scree was transferred to. the City. of "Newport Beach ;" As planned, the community, will Ai nclude 1,390' residential dwelling units, with 290 single family detached ■ homes, 1i,1,06, multi-family.apartments and a 55,000 square foot commercia} ".canter. At build -out, the population of Bonita Canyon is expected to be 2,747. _ To fueffier develop ■ the Bonita Canyon area the 'City entered into a joint powers agreement with tl .tfvine . Unified School District and`;Newport-Mesa. Unified School District to form the'Bonita Canyon Financing Authority,- ■ In -December of '19:98, the Bonita Canyon 'Financing Authority formed' a community, ■ facilities district and issued $45,000,OOt7 of special assessment debt ' 'The_ bond proceeds were u s e d to purchase and improve school facilities and park I n `and 'to ■ finance certain street improvements along Bison Avenue, ,,and, MacArth ur.Boulevartl,! ■ Although residents of the City of Newport Beach will benefit °from, these, improve`rnents!. the debt and title,tothe land are held in the name of the financing authority. ■ The two most important water enterprise projects `this year were the Green Acres. ■ reclaimed water`,project and the Corona del .Mar alley main.replaceMent project. Green, Acres Reclaimed Water'Proj'e'ct - Big Canyon and�Newport Beach Country °i✓Iub Pump' Stations -consisted of building two new pump stations; one at each, golf. course. The= ■ pump stations boosted water out of the recently constructed', Orange County Water District's green acres reclaimed water pipeline into the golf ,course; irrigation systems. ■ TPie. eiiy was obligated, to build these two pump stations as port of the overall,�Green Acres Expansion Project into 'Newport Beach..' Carona,, del, Water and: Alley ■ replaceirient project, consisted of'replacement and installation of approximately-4,000 feet of new.water mains and residential services. The project improved water quality by ■ replacing old pipes along,with improving water supply /fire flow to.the area. ■ Two significa thii'ancing issues this year were the refinancing of the '1992 library COPs ■ and the 1994 water>revenue bonds.7he NewportBeach Pubrlic,Faeilities Corporation issued $7,330,000 of Refunding Certificates of Participation'tfl ourrentladvance refund ■ the 1992 Certificates of Participa #ion used to finance the construction of the Central Library. The refunding was undertaken to reduce tota' f debt service payments over the ■ next twenty years by $690,228 and resulted in an economic gain of $495,745. The City ■ issued $14,225,000 of Refunding Water Revenue Bonds to currently refund the 1994 Water Revenue Bonds used to finance the construction and acquisition of water ■ storage and transmission facilities. The refunding was undertaken to reduce total debt ■ ■ Vii ■ ■ ■ ■ service payments over the next ten years by $481,153 and resulted in an economic gain of $418,469. ■ In addition to the items mentioned above, the City continued to expand the application ■ of the Geographic Information System and the Document Imaging system. ■ Telecommunication equipment, network components and mission critical applications were either upgraded or replaced during the year in an. effort to become Year 2000 ■ compliant. ■ For the Future. Three separate annexations are currently in progress that will have a positive financial,,impact on the City: These areas , are Santa Ana. Heights, Newport ■ Coast, and Bay Knolls. Although public hearings have been held,.the applications for ■ annexation have not yet been filed: ■ The City, is participating in the conversion to the 800 MHz radio system for public safety organizations throughout Orange County. This is a costly butcritically important project ■ that will take place over several years. ■ Another multi -year technology project, the Police Strategic Information Systems project, ■ continued and moved.forward this year. It incorporates a records management system, jail management system, mobile' data. system, and will result'in additional effectiveness ,' ■ of the City's law enforcement resources. The Police Department was successful in securing a $1.5 million federal grant which will expand the depth of this project and..^ ■ offset future costs. ■ The City.plans to continue its Capital Improvement Program at the current ambitious.', ■ pace. There are numerous :projects addressing a wide range ,of types of improvements. Newport Beach places a high priority on its infrastructure, and the largest share of the ■ spending will be on long - term fixed assets such as streets, storm drains, and the water system. In addition to the Bonita Canyon Park and ongoing bridge projects mentioned ■ previously, the City will participate with Costa :Mesa and other entities in the State Route ■ 73/55 Interchange Connector 'I" B" project. ' Also, final plans are being developed to cover the Big Canyon Reservoir. Automated information improvements will continue, ■ most notably with', the Geographic Information System and the Police Strategic Information System. ■ ■ FINANCIAL CONTROLS AND PROCEDURES ■ Internal Control Structure. Management of the City is responsible for establishing ■ and maintaining an internal control "structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate ■ accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure ■ is designed to provide reasonable, but not absolute, assurance that these objectives ■ are met. The concept of reasonable assurance recognizes that: (1) the cost of a ■ ■ Viii ■ control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. The City of Newport Beach initiated a comprehensive program to reduce vulnerability to fraud, waste, or abuse through an improved internal control structure in recent years. Purchasing, Accounts Payable, and Property Control Procedures are in place and updated periodically. Single Audit As °a, {ecipierit of federal financial assistance;' the. ;City is required to undergo an annual -audit inconformity with.Me provisions of`the ;Siingle Audit Act of 1984 and the °'tJ.S.'Office of Aanagement and Budget Circular A-11 33;;•AUdits of State. Local Governments. and Non- profit Organizations. °As.par#;of.the City's [ltgle Audit, tests are made to determine the adequacy of the internal that portion" related td federal ,fina`ncial assistance program: that the' City , has complied ±with ;applicable laws and regulz City -s; Single Audit for the,fsca� year, ended June 30, 1999 material. - weaknesses -in .the 'internal control structure o applicable laws and ';regulations.' `The information related to the'Schedule of Federal Financial - Assistance, findings 'ar independent auditor ''reports on, the internal control. strue applicable laws an regu ations'are included in a separate, l Budgeting Controls and Changes: The,' City of, Newport controls. The oblective.of these controls is,fo ensure b' ompI embodied'in the, - annual appropriated, budget approved by 1 11" ontr'ol is rnamtained,at the`fund level, or.projeet leve4, Fn the ire City �:ymamfaih an,•�;ncu'mbrance...accounting sysi accomplishing budgetary control. Where" "encumbrances• "in departmental orproject budget;: puregase orders are ng# rele adjustment is madeto ensure that adequate funding is avails utilizes Ir ntal lines. rates had 6,`.' period Dis managed tt administer, rolling stock Service Funds to more Insurance Reserve'Fur if its' liability for claims hed iti an; "effort to-- fui )mpensated absences in During the'' 199 dget for the" acq itio equipment) through an FINANCIAL INFORMATION m as io.,aewrmme The resultsof= the Ed no instances, of oil to assist tho'.City in year began to of major Fund. The information in this section pertains to the City's general governmental operations. General governmental finances are administered through the General, Special Revenue, Debt Service, and Capital Projects Funds. ix Total fund balance of the General Fund increased $2.6 million during the year primarily due to favorable economic conditions driven by strong property tax and sales tax returns. nce 20 Taxes `$52,904 41.210)a 7:13% 33:19% Licenses, Fees, & Pbrrnitj� $5,680 A.43% - 22.221/6 ' .15882% Intergovernmental 189 11.83% - 22.'73o/a- '." 41.90% Charges for Services 6% " ' 5.59%" 71.82% Fees &Forfeitures $3,290"" 2:56°k •- 27.821/o 4.21% Use of Money & RDperty $10,666 8.31% -6.63% 10.230/a Miscellaneous $31,865 24.82% 19.001YO 1975.90% Total $128,374 100.00% 28.05% 78.05% X Property taxes and sales taxes continued to increase over last year's revenues by 9.1 % and 7.7% respectively, while uniform transient occupancy taxes dipped 2.2 %. These revenue sources account for the 12.68% increase in taxes. License, Fees and Permit Revenues decreased more dramatically due to several major development projects that were concurrently underway in the prior year, as well as a one -time $2 million developer impact fee collected in the prior-year,` , Decreases i Mntergovemmental Revenues were due to non - recurring granti'evenues received in the prioryear;.related to the $15 million Newport Arches Interchange project. The increase in Miscellaneous Revenues is related to bond , proceeds, from the Bonita Canyon ,Financing Authority, a "no- commitment " #Obi issuances The five - year- cumulative rhange figures in.the Jas from tKw4dIttom of the- economic, -I; point`to the e Statistical Section neat x W "- f- LL = �a e J m Revenue Source 100 0001Y. i. d ° 5000% U ... :, b y -50 00 °k EL ... - 100.00% . x W "- f- LL = �a e J m Sou a c, 2 0,0 a" Long term composition of the City s ,overall "revenues 'tructure has changed as a result of several factors. Primary among these is the State's reallocation of several tax revenues from the City to other State programs. The graph below indicates that the impact of this shift is still ongoing. Newport Beach has simply been forced to find other sources of revenue to fund continuing services to its residents. Xi Revenue Source Sou a c, 2 0,0 a" Long term composition of the City s ,overall "revenues 'tructure has changed as a result of several factors. Primary among these is the State's reallocation of several tax revenues from the City to other State programs. The graph below indicates that the impact of this shift is still ongoing. Newport Beach has simply been forced to find other sources of revenue to fund continuing services to its residents. Xi Five -Year Trend in Makeup of Governmental Revenue 30.0% i� 25.0% O 20.0% O m 15.0% A C d 10.0% IL -Abw r, arv+ of With regaid lo;. trend during a t Capital Improv Relative decree and Recreation irges for nses, F . 1995 -97 Y:1997 -98 .1998 -99 ` Fiscal Year rtal "(includes one time grant in 1997 -98) i Property 11 ,.`'&.,Permits - )llowin schedul nditures fo`r the or decreases du xii ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Fiscal Year 1998 -99 Governmental Expenditures Expenditures General Government Public Safety Public Works Community Developn Culture and Recrgafi Capital Expenditures Debt Service ; Total Expenditures Current Amount (000) $7,4,72 Change Percent of From FY Total 1997 -98 $682 ,688 363% $f,21 ;734 „' 5:99 %. :.. $81 684 �. + 39.23% .,; $29,83 22 ' 0.97% ,::;, 04 191 140.00% "'. $34;11 vernment Expend! Change Since FY 1994 -95 $1,967 $7,124 $2,464 $1,351 —*--Culture and Recreation —&—General Government +Community Development -m —Debt Service (Tlte,above chart reflects. actual dollars, with no adjustment- for`inflatton ).' Enterprise 60eMlfons. Tl e,City had, three enterprise operations,, Une 30, 1999: Water, Wastewater„ andCannery Village larking. An analysis gfie City Enterprise Fund operations indicates the following results for fiscal year;l'958 =99: • The Water enterprise a earnings of $34,733,678. of $3,968,778 and retained • The Wastewater enterprise activity reported a net loss of $21,472. The Wastewater Fund ended the year with retained earnings of $3,993,406. xiii • The Cannery Village Parking enterprise operation reported net income of $85,716 and retained earnings of $765,654 for the fiscal year ended June 30, 1999. Defined Benefit Pension Plan. The City contracts with the California Public Employees' 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 §.Fontnbu#ronrates,are modified accordingly. Defined PERS re Agency I for part-t with they_ each an =Time Employees. In addition to the iyees, Ind ;City contracts =with the Public federally mandated retirement benefits loyee contributes „3.75 percent-of salary, Snt to this retirement system. ifhe City's earned by the accounts) are fully vested pools ano asset- management sefyices. bankers acceptance's,'U.S. Goverramenl repurchase agreements, and the Local Due 646`0, fact that-the volume -of funds the past few years.,,as well as thefact th investmenfeattaings are.not:now „as sign been in the past In addition, the porno Fund has decrees6dl in relation to the smaller daily cash,' balance„ in the Gen reserves will reverse this nO', but it is, en in the immediate future. It is °theiCity`s;#r institution charges, including primary c investment earnings revenue. the empl uthorized tions and cipate in, i rily idle s4 n lowsJnvestments in a.varietyaf andprivate'sector investment of 6,sit,, iemand deposits, Securities, -' commercial , paper, able for investment bas decreased over D.rest -rates have remained relatively low, t a portion of--City revenue'as °they have those earnings allocated,'t&the General igs -of other funds.. This is due to the Fund. The Lt's Arlan to reconstitute Ply to Have °a; significant favorable impact tanding =policy to account for all financial ng account charges, as abatement to The City's current investment strategy is to normally place most of the funds with four private sector investment management firms. Each of these intermediaries is guided by xiv ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ and constrained to an investment program at least as restrictive as the policy governing the City's direct investments. Regular reporting, both in writing and by personal presentation, is required. Additionally, with regard to the private sector firms, well - established and highly reputable third party custodians hold all cash or securities managed by them on the City's behalf. Smaller, more liquid portions of the portfolio are invested directly by City. staff or placed with the State Pool (LAIF). 11, Debt Admini issues outstai certificates of payable of $2_ fund capital ".1 Risk tains,a risk Mai debt and lease ounts, included 225,000; notes is a combination. of self- insured - retention,; excess insurance coverage, and written e�ticies. ■ As pad`of this program, resourees•are now being set aside an the Insurance kii*ve ■ Fund (as opposed to the'Generat -Fund) to meet current and potential losses°: Ott Juty 1., °a J94, sthe City prt#ehased excess_ general`liability -insurance coverage of $10; mHlror -, ■ with a sel f - insured retention "(SIR) of;$1 million, per occurrence: On 8epiembet'1 195;! 11the City purchased' "excess:yvorkers; compensation and employer's liability insurance °. ■ eoverage of $300,000 per occurrence up to $1 0 ©,U,000 ,' This insurance provides; " 'egverage„ for work'r'elated:'accidents,:'and diseases ';On July 1 „1999, tgenei4Kfiability ", ■ coverage remamed.at.$25 "million. per occurrence with a $500,000 SIR: Furthe7 policy; ■ and administrakv kadjustments in the area of Risk Management are anticipated p; Akthough the Insurance Reserve ';'Fund maintains a;substarttial accumulated deficit6• ■ „management is confden #.that futuwoperating income';and transfers .wiU be suffic►ent tee satisfy current and,'Mture claims against this fund's'.Fesources; ■ ■ Geneiai ,Fund'Balance. - The fund balance ofi the General Fun i increased by $2x 34,962 during fhe fiscal 'year ended June 30,� 1999, and "nUw,rrieets Council poly ■ forthe contingency arrd stabilization reserves. ■ OTHER IIVFORMATtON ■ Independght Audit The City Charter and State Statutes_ require an,- ,annual audit by independent ,,c rfified publiceeccounta`nts. Atcordingty, this year's aucil tas completed ■ by KPMG LLP to °acld�on to rneeting,the requirements set forthan t11el-City Charter, the audit also was designed t meet the requirements of, the Fecertl °Single Audit Act of ■ 1984 and related OMB Circriar A ��33. The irtdependQ;nt auditofs' report on the general purpose financial statements acid ,combining arid: 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. ■ ■ ■ xv ■ ■ ■ ■ Awards. Fiscal year 1990 -91 was the first time in the City's history that it prepared a Comprehensive Annual Financial Report. It was therefore particularly gratifying that the ■ Report received both state and national awards for excellence in financial reporting. ■ The City has been fortunate to receive both awards each year since. ■ The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of,Abh'ievernent 6r,�Excelience in Financial Reporting to ■ the City of Newport Beach•fprits- Comprehensive Annual Financial Report for the fiscal year ended June,,zt0, L99g:` The Certi#irateof;Qchievement is a.,prestigious national ■ award recognizing °,cbnformanee witft the highest-, standards for "preparation of state and ■ local government financial reports. "to' ■ In order ''-b6-awarde d , a Certficate of Achieverrment,,a government unit must publish an easily readable and efficiently organized comprehensive annual financial reporis,.whose ■ contents conforms to program-stand ;.such a program must satisfy both generally accepted accounting pr►ridiples and`applicable legal requirements. ■ 1 certificate of Achievement is valid for a period; of� one year only. We believe our ■ current'repoit continues• :to conform to the Certificate',of Achievement' program, ■ requirements, and we are submFtingit to dFOA i The California Society of Municipal•Finance Officers'(CSMFO) a state orgarnzation i .is which` "sponsorsa.extensive training'; and emphasizes .high standards in all aspects 'ofy ■ Municipal finance operations, including financial reporting. ;As a result of last year's; ,t ■ rpport,` the City „bfp1Newporf :Beach is fortunate to have, remained `among the ranks of; ! Gahfornia;ccities'thatr have met ilia, "rigorous standard iof fnancial ;repo6ng,required,of?'' ■ gecipients of the CSMFO 9.utstand'`uig Financial Reporting Award'. We will be submitting'i the report to CSMFO for consideratibn agaip,this year as urreli. , , ■ ■ DOVER AND DIVIQER PAGES ■ In keeping with the C ity 's; ■ ■ ■ thank the Mayor and City Council for their interest and support in planning and ■ conducting the financial operations of the City in a responsible and progressive manner. ■ We would also like to thank our auditors, KPMG LLP, for their time and assistance in the preparation of the report. This report was completely prepared and published by ■ City employees. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Bludau xvii a California Society of 04unici pal ` finance Officers Certificate of Award Outstanding Financial Reporting 1997 -98 Presented to the City of Newport Beach 'h: cenzy 'ua B lnwedIn t gnhlon of mva&g prohulonal elandm* a"rHnrk h, «pordag WAkh reflect a high level olgaafty In the annvmfflnan[hf s/aeewew/t and In At aader&&Z accornft ryAaejtom whhb dre reportr weteprepared March 1, 1999 ch ,ProMWad•Tamcm Samdr& cm.1me Dedicated to Excellence in Municipal Financial Management xix ■ NEWPORT BEACH CITY OFFICIALS ■ City Council g ` #�f.,: Sharon Wood ....................... Assistant City Manager/Director of Community & Economic Development ■ PeggyDucey ...................................................... ............................... ......................... Deputy City Manager ■ Dave Kiff ....................................................................... ............................... Assistant to the City Manager Dennis C. Danner ................................... ............................... Administrative Services Director/Treasurer ■ BobMcDonell ............................................................. ............................... .......................... Chief of Police Tim Riley ........................................................... ............................... ...........................Fire & Marine Chief ■ David E. Niederhaus ............................................................ ............................... General Services Director ■ LaDonna Kienitz .................................. ............................... Community Services Director /City Librarian PatriciaL. Temple ............................................................................ ............................... Planning Director ■ JayElbettar ...................................................................................... ............................... Building Director Don Webb ................................. ............................... .........................Public Works Director /City Engineer ■ xx ■ ■ ■ ■ 1999 -2000 ■ ■ MAYQR ■ COUNCQ. r - - -- �, r- - - - - -� ■ r - CMLSERMCPBOARD '- PB. &RCOMMISSION --rte ■ I - : GI7TCLERK - =ATTORNEY I _ r rr I I L BUII DIAS CODC BOARD OFRPP �A I S J° `, .. ,,., Yl�T5C1p�MISSION L J ■ ,.. _.. _ - CITYMANAEER I 4 r ■ I - PLANNING COMPASSION LIBRARYB074RD L_ ,_J - L J ■ I � I I ASSISTANTCITYMANAGEBPO I - fA.�MDEPEWPMENT ■ I I I f,,.I I ■ I I I Pl ANNLNG; POLICE ■ I f is r� f 'Soppn 5 e n ^ I. I T, C.uae PJa & Pryq a AJ o P B p I r ff �. I I s '"'s' + Conrcol ' ■ PasYinpfAn+mal s �f,��; ■ I I : s' . N. 'I ■ I I Is['I BUIf DING COMMUM YSERVICFS . er ■ P! Ch 4 g 46s I p Rey ear rcm ■ I�MJ I FIRE&MARINE IGPNEIkALSERVICES I ■ I AJ q ,_" Op s _ Qc L r gu rds --Tiltubndu Pads d T BuJds g, Ficld EH p rnr Oh reruns Plain n EmYge ail I I Pcr� s B 16 . Basin T rR S!5^ & M rLing. ■ I i, L Pak Lms �IlSaaad us P6arngk "g RePoYCJRe ydwg I- gperanon 5 pp a ■ ■ I ADil1IIVTSTR&WESERVICES PUBLIC WORKS Peoa.mnel AJm�maea -R r E gm s 8 ttmer ■ BrncGr Phngimcm P bPS nq 'GIP M oagsm t U'as¢u arcr Risk Planag<mcm -Dae Pn9f g IahnaUHela rn Tdec Decelnp S Elecmcel rtwn+ n, Aa anring s Genbase I f Sp,em ,.Gomr mn Pbnage —, OI &Gas - T,sffc ■ ■ r - - - -J ■ Fd-E= COUNCILAPPOTNTF.D COUNCIL DEPARTMFN7S ■ BOARDS &CONQfISSIONS APPOINTED ■ ■ XXl XXii ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Financial Section ■ ■ Center Tower ■ 650 Town Center Drive Costa Mesa, CA 92626 ■ ■ ■ ■ Independent Auditor's Report ■ . The Honorable Members of the 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, 1999, as listed in the foregoing table of contents. These .. general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. ■ We conducted our audit in accordance with generally accepted auditing standards and the standards . applicable to .financial audits contained in Government Auditing Standards, issued by the Comptroller General of the 'United States. Those standards require that we plan and perform the audit to obtain . ■ reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and ■ disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. ■ In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Newport Beach, California as of June 30, 1999, 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 22, 1999 on our consideration of the City of Newport Beach's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. ■ K`Plv(c LE ■ Orange County, California ■ . October 22, 1999 ■ ■ ■ ,... KPMG LLP. KPMG LLP, a U.S. li-sed liau., W.s'swp. is 1 B me++ +be +pl KPMG Wss.,4vnal. a Swiss asscaetion. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ General Purpose Financial Statement ■ ■ ■ ■ 3 ■ ■ ■ CITY OF NEWPORT BEACH Combined Balance Sheet - All Fund Types and Account Groups ■ June 30, 1999 ■ Governmental Fund Types ■ Special Debt Capital Assets and Other Debits General Revenue Service Projects ■ Cash and investments (Note 2) ;$ 13800,700 , $-,"'15 ,011,255 $ 1,031,784 ■ Accounts receivable and accrued revenues `2,147,278 `472;989 524 Lease Receivable Due from from other governments,(NAA):75 ° -a, ; '2,276,602 7,818,745 ` Due from other funds (Note it) "- _ Inventories of materials and - supplies at cost _= ,5,937,324 108,574 ■ ResMctedassets "cash and investmente. (Not es,2and4) 1,282,050 $ 594,186' 8;104,646 Other assets Notes receivable. = ' Fixed asseta.(NO& 3) _ -. ■ Ameuntivalla_ble in debt service fund Amoutttf6bl providrd"foF- ayment _ ■ of general long. -term dabs, _ �$ "$,,7136954 ■ Total Assets and -Other Dehds - ,25,764;024 $ 23,968,989 $ 594,186 Uabtltbe§; Fund Eguttyar Other Credits S, ■ dA '$ t�2011i98 $ 69,572 +{ ■ :,`AccouM� payable and accrui6d liabilities 51.24,138 $ jr)y ,u *Accrued payroll, ,�, ; ,x 1341,985 ;- ,20,154. °, " „. l,p ,?. +Due to<pther fiirids (Note 11)” ' ,� 5,598,847 3,600': , "11`8, "tj ■ Y b'Defeued revenue F° ;ih «� �, , > ` ' 729,567 837,165 ;'.r u�1 '. Due to bondgolders (Note's,}' # S :, ,< ' y t x2 �9(M Po* ■ b ,9fY 10ue to others HI d4 0 «kF � « , 1 V 3172315 215935 9, "r�; :,, Ciarerd portrnn of debt (Note 4}'�3bP � , » '( I "< ' d9' 1(t 'Y ■ °Lopgtermdebl�Note4)�a, „bps "'= °"b , F'! ■ Total LaMlities 10368,008 7,873,299 °7`3,172 Fultd'Equity and Other Creditg_': ■ Investment In general fined assets COWIbCftd capital (Note 13) =� - °_ _ ;_ - ■ Retalfted'eamtngs (accumulated defcit) Fund balances: ■ Reserve4(Npte 14) a -' ". ° -;_ - 1,722, °1:f19 5;138,758' $ 594;186 612109' Unreseeretl,designated °(Note 14) _ '- 13,$73,907 X6,109,405 6;4$1,673 ■ Unreserved- undesignated” - - „ 4,847,529 Total Fund 9gaity and Other Credits - : ° t5,396,Qi6 1'61095,690 1.. 594,186 •7063,782 ■ Total Liabilities Fund EgUdlr and Other Credits '$ 25,764,024 V- 23,968,989 $' 594186 $ 7,136,954 ■ ■ ■ ■ ■ Proprietary Fiduciary ■ Fund Types Fund Type Account Groups General General ■ Internal Fixed Long -Term Totals (Memorandum Only) Enterprise Service Agency Assets Debt 1999 1998 ■ $ 10,085,007 $ 1,327,609 $ .� 8444,84,; $ 49,700,969 $ 39,628,863 4,352,030 3 001 6,975,822 5,769,988 ■ 666,000 740,000 10095,347 10,010,311 ■ � - -' 5,937,324 4,417,378 _ 72,276 186,850 ;;:. 167,230 ■ 1,460,896- -., 1,707,354 11,149;732^ 11,156,575 - -_ - - -- ,211,498 .:, 3,587,569 , u 200,000 ■ 55,833,220 5,826,438 - $ 82 -, ,758,956 144,418,614 `1", 1,371 $ 594,186? �'s.. 594,186 579,814 ■ . - 11,722,249t 1I),438,206 ■ $ 71,731;153 $ ,7,229,324 " $ -` 10,151,968': $ '82,758,956 $ 12,316,435..'.. $ 241,651,989•-$ 231;155,3Q5 ■ ■ - $:. 1;400,510 $ 210 676 :. $ 8,006,094 $ 6121,831 ,, . 8.5i,79.'4 105.832; 1,553,768 '4..;1251 . 334,877 5,937;324 1 '44173*;; 1,566,732 ` 1,895,330 ■ $. 7,330,297< . 7,330;297 -J7 365 256 ';g 2,821,871- 2,821;671 2 569 286, -" ■ 94045 .:. 3,482;295 3601367;P. 1319282. 4623352. 5,942,634 6061670:' ■= 13;200,006 ` 13j5021392 -.. "" $ 12 816 435 39,018,827 37,918,W4;2 '.16,434,506- -.18,442,252 „10,151,968. ;12,316,435 75,659,642 ` :71,201 - $ 82,758;956 82,758,956 82,226,914 ■ 16;803,897 ___ 4,097,648 19,901,545 19,901,545 _ -- ,39,492,748 (15.310.576) - - - �' 24,182,172 ..1 9,712,353 • - - 8;067,160 11,463,134 ■ _ - 28,234,985 " -o- 18,617,815 4,847,529, -,.' 8,031,744 ■ 55,296,645 - -" {11 „212,928) :..82,758,956 - 165,992,347 159,953,505 ■ $ 71,731,153 $ 7,229324 ._$ 10,151,968 $ 82;758,956 $ 12,316,435 i`$ 241,851,989 $ 231,155,305 ■ ■ ■ ■ ■ ■ 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, 1999 ■ Governmental Type Funds ■ _ Special .General Revenue ■ Revenues, Taxes K �' $ 52,903,567 Licenses, fees and permtks " -, - 2,838f125 ''2,742,071 _ Intergovernmental revenuer —5,387,744 387,744 -_ 9,801,80 ,. . Charges for serwpes 8 789,173. 20,789 Fines forfeRutes and penalties 2846,1'86 ,. 443,833 ■ Revenue—from—.Use of moneyand property, 5 285;679 4,958;026, Contributions-286371. " 348,368 ■ Other 337,006 =� Totaal Rev <_enues. 78,744;091 18.314,667.: _ Expenditures' ■ Current ' General government ; 7,471 850 e Public safety 40,190,335 324.076 V Public works : "1= x 16,023;639 823.035 14+1:• a� ■ Commhmiy7developmet 276 3,506;*'. 1,181,811 #'CotriniunityserviGes ,4: 6,699;042 1,034,678. l E •'Capital Outlay 1 k =y. 6147 ,235 13,095,072 xE Debt'Setvice f`,�uk , , Ah +�`a ■ ,; Pnnnpal(Note4). ' •w 825,8334 114,6949,E g:a Interest airi fiscal charges ` "-'Q' , 176,538 121,678 ;' ■ Total Ex{ienddures - 81,040,749. 16.695;044 -� Q is ■ Excess (Deficiency) of Revefiues5 Over (Under) Expenditures (2;298,658)' 1,619,623 ■ Otheif Sources (Uses)' ■ Operating transfers in 3486311. Operatirajtransfersout (546,638), (3,236,311) " '. ■ Proceeds`from refunding certificates' -, Payment to retit6ded certificate escrow agent ■ Proceedsfrorwes- pitalleases - - -- _ 1,950,944 Proceeds from -sale affixed assets _ 41;003 157,681,. :'i" ' ■ Total Other Financing' Sources (Uses) 4,931,620 (3,078,630] ■ Excess (Deficiency) of Revenues and ■ Other Financing Sources Overi(Under) Expenditures and Other Financing U96a y 12,634,962 (1,459,007) . Fund Balances, July 1 12,761,054 17,554,697 ■ Fund Balances, June 30 $ 15,396,016 $ 16,095,690 ■ See Accompanying Notes to General Purpose Financial Statements. ■ ■ 6 ■ Debt Service 13.827 545 14,372 579,814 594,186 Capital Only) $ 52,903,507 $ 49,385,380;1 " 5,660,496 7303,302 15,189,324 19,656,742,. 8;779,962 8,314,836 - _ 3;290;019 2,573,575.: $ 395,438. 10;666,337 11;422,977 '. 30 892,954. 31,527,693 1,435,803 337,006 _,. 157,606. -.. . 31,288,392. 128,374,344 100,250,215 7;471,850 40;514,411 .` 16,846,674 4,688,087 7,733;720 31441.,738 50,684,045 6,790,020 39;168,311' 16,579,275. 3,475,998'= 6,916,999'.: 20.849,681 rl ' 940;528 '637595 '. 311,583 661,689, 31,441,738 129,190,898 95;079,568 (153,346) (816,554) 5170,647 4,032,949 14,558,159, (3,782,949) (5;737,795) " 7,330,000 (7,876.093) 1,950,944 46,884 198,684 11,574.= 1,853,535 (1,121,178) (153,346) `- 1,036,981 4,049,469 7,217,128 38,112,693 34,063,224 $ 7,063,782 $ 39,149,674 $ 38,112,693 rl ■ ■ CITY OF NEWPORT BEACH Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual General and Special Revenue Fund Types ■ For the Year Ended June 30, 1999 ■ General Fund ■ Variance = Favorable ■ eudgef Actual (Unfavorable) Revenues:. ■ Taxes $: 49,643,390. $ 52,903,507 $;.,3,260,117 Licenses, fees and-permits- ° 1,988,999 �� 2,938,425 " ;' 949,426 ■ Intergovernmental revenue 4;542,883 5,W7,744 844,861 Chargesforservfces _ 8,081,801 ._.8,759,173 6-77,372 ■ Fines forfertures and penalties . 2,775,000 2,846,186 71,156 , Revenue frani use of money and property- 5, 962,311 5,286 679 (676.6 "'_ ■ Contrib0ftans 489,223 288;371: (201,852) Other 216,000 337,066 121,006 ■ Total Revenues" 73;698,607 78,744 091 5,045,484 Ex)- 66dituret: ■ Current z, General govemrtent 7 200,279 7471 850 (271;571) ■ Public safety ', t <+ 3T673 i 40,190,335 ($.16,1335) '�c1 ■ - ?PubBcworks �r., 16249,803' 16;023,639- 226,164 ,a �`eIs 11 Community developmgnt 3 566,588 3,506;276 60.312 `; oak" • Community services =: 6 611 „543 6,699;042 (87,499) ;tEr Capital OUtlay 's,% 7670,745 6,147,235 1.523.51'p,, n s, ° Debt °Service. Is V'k;` Is Pnnapal {Note 4)r, 'b: 699,269', ; 825,834 (126,565) U " +?` ■ ° slntereat"endsfiscal6harges 176,538 12 977 ' Total Expenditures 81,861,242, 81,040,749 820 493, =: Exces3 "(DefSaency),ofRevenues ■ Over (Under) Expenditures "" (8,162,635)- (2,296,658) 5,865,977 Other Financing Sources (Uses):. ■ O�.eratiag,transfers in 4,165115 3,486.311 (678,804) ``; :. ■ Operatinktransfersout --= ,'' -:_ ;,.� ';, .(5.46,638)' (546,638); Proceeds fro °rn capdahleases - 56000 1,950,944 1,894 944 ..- ■ Proceeds frpr1zale affixed assets 10,500 41,003 30 508 ' Total Other Fir( racing Sources(Uses) 4,231;615 4,931;620 700;005 ■ Excess (DeficI4ney� of Revenues ■ and Other Financing Sources_. Over(Under)Expenditures LL ”' ■ and Other Financing Uses '� �� (3931,020} 2,834,962 6,565,982 Fund Balances, July 1 12,761,054 12,761,054 ■ Fund Balances, June 30 $ 8,830,034 $ 15,396,016 $ 6,565,982 ■ ■ ■ ■ 8 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ N Special Revenue Funds ariance Favorable Budget Actual (UnfavoratiIs $ 1,964,865 $ 2].42;071 $_ "` 777,206 8,426,863 9;801,580 1,374,717 25,0001, 20,789 (4,211) 287,045 '.- 443,833 -- 156,788 5,383,450 4,958,026 (425;424) 185,000 348,368 163,368'- 57,020 (57,020) 16 329,243 •` f8,314,667-.',. - 1,985;424 - - - 487,772 324,076.... 163,696. 636;510 823 035 .. (186;525 1.430,431 -�. 1,1.8181.1 248,620:. . 1,101,728 1'034,678 67;050 42172397- 13;095;072: 9,077326 114,694.,.:: 114 694 .. 121,678 127 678 . < < 26,065,210 9,311 (9,735,967) 1,619,623 11,355;590 (3,915,115) (3,236,311) 678,804 157,681 157,681 (3,915,115) (31078,630) 836,465, - (13,651,082) (1,459,007) -" 12 192,075 17, 554, 697 17, 554, 697 $ 3,903,615 $ 16,095,690 $ 12,192,075 N CITY OF NEWPORT BEACH Combined Statement of Revenues, Expenses and Changes in Retained Earnings All Proprietary Fund Types For the Year Ended June 30, 1999 Internal Totals (Memorandum Only) Enterprise Service 1999 1998 ■ Operating Revenues: Charges for services $-20i059;789 _$ 8,949.165 $ 29,008,954 $ 26,410,953 Contributions ;416500 416,500 29,500 Licenses, Fees and Permits 1,919 Other 195,270 37,060 232;330 278,164 Total Operatiag Revenues -- 30,671,559 - 8,986,2251. 29657784;1 -. 26,720,536 ■ Operating Expenses Purchase ofw8ter 4,975,890' - 4,975,890 ;4,952,040 Salariesand -%"ges 3,165,949 904,867 4,070;816 3803,940 Depreciation 2`;A61,640- 1,244,117 3,395,757 14 -%597 Professional services:: 1 „7.32,550 34,272 -- :..1,766,822 1,795.296 Maintgnanceandstlpplies 872,916- 809,766 1;682,682 1,475,670 F{tparts and suppli2s _ ".' 350,326: 350 32E = 509 446 Sj,stems maintenance °'t ,868,512 ° 1 888 512: 2,447 804 ' -,_ °Workers' cgmpensabafi :: ' 929,622 929,622 2;335,480 Cleims and judgments " _ - - 2,898,30,. 2,898,530 ' 2,691 982 Disability 62,262 82,262= 79 807 5 y Compensated absences s ' f, 1 129',406 1,129,468 886 672 F 'I "O,ther * "• 1,190633 b _" _: , 1,190,633 955860 rraMya v ;,,';H 'Total Operating Expenses 15,9 09 680 8382;968 24,341,0 58= ,?5353603'n,ity, ff %A, OPeratng Income - 4,713 469 603257 5,316,726:: =T;368 933 s T Nonoperafing Revenues p (Expenses) f s 'tlY YWEWIi , «9 � ■ 1 ",iYr�tergovernrrientalrevenue � 16.0 « 160 �_ Interest =income 52;178, 516,132:: `668010�r " Other income ,; 27 742:: ; 27;747 29412 " , Gain on sale of fixed assets -,=-",11-337 102,556 103,893 "47 794 ■ lnrestexpense (593469) (711954) (664,823) (936529)' Bortcssuancecosts (578,091)'%” (576,091) . Other 1,920) '(1,920) (5452) Tct'I Nonoperating:_ �- Aevenues(Expenses) "_ -; (680,447) -%-- 83,,540_ . (596;907) „'(196,381) Inc6ine'Refore Op`eegLtlgTransfers 4,033,022 686,797 4719819 = '1,170,552 . Operating transfers Operatingtransferstn = 1,605,969 ■ Operating transfers out (250,000) . ,. (250,000) (426,333) Total Operating Transfers a - (256600); � " "` (250,000) 1,179,636 . Net Income 4033022 ` 436.797 4,469,819 2,350,188 . Retained Earnings (Accumulated Deficit), July 1 35,459,726. (15,747,373) 19,712,353 17,362,165 ■ Retained Earnings (Accumulated Deficit), June 30 $ 39,492,748 $ (15,310,576) $ 24,182,172 $ 19,712,353 . • See Accompanying Notes to General Purpose Financial Statements. 10 CITY OF NEWPORT BEACH Combined Statement of Cash Flows All Proprietary Fund Types For the Year Ended June 30, 1999 Ceshfflows,from capdal;.and related financing activities Internal Service 603,257 1,244,117 160 02,066):' ,< (66,742) (183,715). 697,507 (49,865) 1605,919" 2,209,176'" (256,000) gcguisiboo,of.cipital assets _ Enterprise Cash flows from operating activities: ''Proceeds from revenue bond refuriiling ° Operating income ;.:$ 4,713,469 $ Adjustments to reconcile operaling-lheorna net cash provided by opelatlhg as - Depreciation 2,154840- Intergovernmental revenue Other revahue, �" j 27;742 ' Changes sl Qpeating- esseisand ua�fMtes: is 217,224 _. m. (Ind) decrease accournts receivable„ - br&ee (9(6,057) (rncfease) decrease in accrued tevenue Interestpatd (Increasebdecrease in mvenfories ofrrraferials.end supplies, at cost ' = Increase (decrease) m accotrritspayable - - (624;1,17) `increase.(decrease)'rm accnied`payrap .'26,021 {Increase (decrease)an due to'otlierfunds '- ,(90,015) k' Increase (decrease} osils. , (17,899)`, , Increase (decrease) in workers' compensation ;° 52,178 >Gg Increase (decrease))in*generahliabdttyp i,r 'Increase (decrew).m compensated absences «;ESNs Total adlustmefrlFs; 557,315 � :o-a• ea :w• e * S Net cashtprovided by operating activities, 5; ?70,784 Cash flaws from;noncapital f activities )p„ y.h.„�'iip « +Operating .ancmg. kYk tyke.` transfers ffbo,,other funds „ , Operating transfers to oifigfunds a,t 65 gin£ i,4 n y`° iP42. Ski „ al f c r 1 Net cash tiiy Cusedfar)'anonc apdal rlanm g,activ�4es ) �. i provided Ceshfflows,from capdal;.and related financing activities Internal Service 603,257 1,244,117 160 02,066):' ,< (66,742) (183,715). 697,507 (49,865) 1605,919" 2,209,176'" (256,000) gcguisiboo,of.cipital assets _ (1,793,966) ` (1,008,216:', ''Proceeds from revenue bond refuriiling ° 14,1 1,9,,760 " Costa ^issuance P`a)kmerttto refunded bond 4sGrow agent s(15- ,223;909) Princ pf jayments (483,644: Proceed6ftm sale of capital assets ° -- _. � 1,338 217,224 Trustee Fens T. Interestpatd (343,330) (7,354 Net cashvsed for capital and related financing activities (3,399,021) -:°(1,345;990 Cash flows from invesbng,a tIvities -_ k - Interestoninvestments 463554 52,178 Net cash provided-Ky Wtvit Net increase (decrease) in cad Cash and cash equivalents, July 1 Cash and cash equivalents, June 30 Noncash Activities: Contributed capital (note 13) Acquisition of equipment by capital leases See Accompanying Notes to General Purpose Financial Statements. 12 "2,335,7117 665,364 - 9,210,186 662,245 $ 11,545,903 $ 1,327,609 $ $ 133,443 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Totals (Memorandum Only) $ 5,316,726 $ 1,366,933 3,395,757 "_ 3,419,597 160 384 '= 27,742 - 29,412 (916,057) - 77,892 -- 5,922 (8,024) ' " (41,679), 179,636 (6.86,183) ` - (1,382,237-) " 89.201,::, :-19;169_ (156;757) x(705,405)" -- (17;899) :23,770. -- (183,71'5)' :128;854 697, 507 1. 437 045 , ::(.49,865) 2.10P234 2 747 765 7,479,960 (250;000) (426.333) (250,OOD) 1:- 379636 ° 2,802,182) .(8,033 4,119,780 • "(158,184) 5,223,909) " (483,644) (1,469,946) ° 218;562 t55,757" (414,684) _ (960,045) -.. 516,132 - 668,010 516,132 668-,010.-- 3,001,DB1 (4,350,599)` 9,872,431 14,223,030 $ 12,873,512 $ 9,872,431 $ - $ 1,597,810 $ 133,443 $ 667,215 13 xry n.. 14 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ng g,C�Y np is 4' Thi§`page I'eft blank intentionally. r q [ f wHIp �6df R6.':.4 Yk > a 1 S 3:1 A t 14 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ �o / ' / / / / . i CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 (1) Summary of Sgnificant Accounting Policies The financial statements of the City y_of Newport Beach, (the "City ") have been prepared in conformity with Generally Accepted Accounting Principles ( "GAAP ") as applied to government units The = Goverr mental Accounting°Standards' Board ( "GASB ") is the accepted standard'setting body, for; establishing governmental = accounting and financial reporting principles. The-more significant of -the City's accounting policies_ are described below. - Description of Reoortind Enti 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 the'City of Newport Beach in the financing of public improvements, ineludrng.a; public library. The Corporation is governed by a Board of Directors comprised of seven individuals appointed by the City Council of the City of Newport Beach. The Corporation's financial data and transactions are included in the debt service fund, capital projects funds and general long -term debt account group. Separate financial statements are not prepared for the Corporation. 15 ■ ■ CITY OF NEWPORT BEACH ■ Notes to General Purpose Financial Statements June 30, 1999 ■ ■ 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. Govemmentat- accounting systems are organized and operated on a fund ■ basis. Fund accounting is ``designed' to demonstrate legal compliance and aid financial management by.segregating transactions - related to certain City functions or activities. A ■ fund is defined as =an `independent fiscal and accounting entity with ba self= balancing set of accounts "recording cash and other i ancial 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, restnctions:orlimitations. ■ The combined financial statements.�in this report are grouped - into three - broad fund ■ i tegorips containing,seen gei is fund- -types and into two account;groups`as,follows ;, ■ Governmental :Fund,Tvpes ■ General Fund The Generah.FUnd is the general operating fund 'Of the City.The General I uod is used° to account for =gall financial resources, except thoserequired to r -: ■ be accounted form another fund x:4 w :2�' 3 S: aFf lfld: p` ■ ': SDecial3Revenue funds The. ;Special Revenues Funds are used toraccount.for theki' -; " proceeds =of specific :revenue sources orao finance specified activities as required by ;;, ■ law or administr�it ive regulationR ;pr ti, ; ■ Debt Service Fund AM'The DebtSetviceF.:untl is used to account for the accumulation <, i of resources required for the. payment of general long -term -debt principal and ■ Capital Proect Funds The Capital Project Funds are used "ta account for financial ■ resources used for the acquisition or construction of major capital facilities otherihan ;.those financed by proprietary funds. ■ Proiiriefary Fund Types - ■ Enterorise Funds: -The Enterprise Funds are used "to account for cperations that ■ provitle seiees to the.geiieral - public, which,are financed primarily by user charges or where tfie_penodic measurement of,:net income is deemed appropriate. ■ Internal Service Fends The Intemal, 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. ■ ■ ■ ■ 16 ■ CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 Fiduciary Fund Type economic resources)--is. segregated into 'contributed capital and retained: earnings mpo conents. Proprietary- fund -type operating stafefients present, increases`'(e.g., revenues) and decreases (e.g .-, expenses) in net economic resources. Fiduciary fund -types are accountedifor according to`the nature of the fund. The City has only Agency type_ -unds, which are purelyi custodial in- nature (assets equal "liabilities) and, thus, do not involve measurement of results of operations. Basis of Accounting The modified accrual basis of accounting is followed for the governmental and fiduciary fund types (General, Special Revenue, Debt Service, Capital Projects, and Agency Funds). Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual, that is, measurable and available to finance expenditures of the current period or soon thereafter to be used-to pay liabilities of the current period. The City considers property taxes as available if they are remitted within liII CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 60 days after year -end. Sales taxes collected and held by the State are considered susceptible to accrual. Other revenues consideredsusceptitrfe•ta accrual include interest income and charges for ,1 services. Licenses and permits, °'fines,`forleitures and,penplties excluding amounts received from _gtfrer:goveinmental agencies, and other taxes. are ;not susceptible to accrual because;ttiey are,noY measurable until received 'in cash: Grant funds earned but not received are recorded`as receivables, and grants received: before the related revenue recognitioh` criteria have been met are reported as deferred revenues. Expenditures are recoRSTed .when the related fund liability is incurred,, except.that principal and interest on generaYlOng -term debt are_recognized.when due. The" accrual:, method of accounting is followed by the City's proprietary ,fungi (Ehterprise and Internal SeM Furids). Proprietary fund types are accounted fo '- 'income determination ".'br'' "cost , of ,service" measurement focus. 'Accordingly,: and ;liabilities are included in their respective balance sheet's, and the, reported funs (total reported assets less total reported liabilities) provides an indication of the e net worth of tfre mfund ,Operating, statements `foi proprietary fund types; (on an anses) m determmmg total ;ed6nomialnet worth., this determination, = -unl ce` receivables are recorded.:at\ year -end. Governmental entities have the optic applicable(standardsof the Financial Accounting, Standards Board ("FASB ") is rafter, November 30, 1989, 'for . proprietary fund types. The City has elected to ASB 9t9f hients and interpretations issued on orafter November 30, 1989, e: 64 at conflret with or contradiet`,GASB pronouncements. letary Control and Accountina. City adh eres to the following general probedures'_in establishing the budgetary, -ted in the financial statements:, • During April,-the,City'Manager'submts to the City. Council a proposed oper budget'-for the fiscal., year commencing the following July 1. The °roper means stoob Public Prier= to July 1 the; budget is.. legally 'adopted: through ;passage of an appropriation resolution. • Budgets ara adbpted,on an annual basis consistent with generally accepted accounting pnnciples f,oreenerat acrd Special Retrenue Funds. • The City of Newport Beach 'does not present budget information on Capital Projects Funds since the City approves project - length budgets. These project - length budgets authorize total expenditures over the duration of a construction project rather than year -by -year budgeting. 18 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 • The City of Newport Beach does not present budget information on Debt Service Fund since the City is not required to and does not adopt an annual budget. into the accounting ystem and employed as a $30,000 ors other ii goods the Cash and Cash Equivalents year. nbrance system as a expenditures Under this of funds is recorded in is employed:' in the at year-end are reported Dnstitute�ezpenditures or onored in the resehted as revisions to For purposes of the Statement of Cash Flows, cash and cash equivalents are defined to be cash on hand, demand deposits and highly liquid investments with a maturity of three months or less from the date of purchase. For financial statement presentation purposes, cash and cash equivalents are shown as cash and investments and restricted cash and investments in the proprietary funds. 19 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30,1999 Investments Investments are generally Other inve liquid debt and agent year or leo interest The City's fair value of other of Inventories are,ua method. The City governmental fund General Fixed Assets e "money market securities ,(such as short-term, highly commercial- paper, bankers' acceptances, U.S. Treasury -e a„ remaining maturity at the'time of purchase of one ized, cost. <d to tnaxirni a investment yields. The.net change in fair investments is allocated. #o the respective fundsbased cash °and investments balance; $1;507,839 at June 30, 1999. This investment value ',is ry the State Treasurer's office: The carrying value of e rially,consistent with the fair value of the fund shares gelds County Pooled, Fund is $83,684 at June 30i 1999: =d, on in orma ton provided by Los Angeles County.' . value of the City's position in, fund is' =;materiallyµ to fund shares. y. it cost; which approximates market, s_the _consumption method for iriiei of ing 'the first -in, first -out y control. The costs of when consumed. 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 M ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 on the date donated. Fixed assets acquired through lease obligations are valued at the present value of future lease payments at the date acquired. Assets in the general fixed asset account group are not depreciated The City has elegted not to.-':capitalize the cost of build`n or acquiring infrastructure fixed assets (e.g., ,stfeets,' bridges, curbs and :gutters, ,storm drains sidewalks, and light systems) Cprisequently,_these` items are not reflected in the Cdys cpmbined financial statements. ged over the,estimated useful Iives.usmg 1 he'straight -line met lives are as`follows Capital Leases The City accounts for lease- purchase agreements as capital leases when title transfers to the City at the end of the lease term or the lease contains a bargain purchase option. Therefore, the capital leases are recorded at the present value of the future minimum lease payments as of the date of their inception. Capital leases used for financing general fixed assets are recorded both as capital outlay and other financing sources. Capital lease payments are accounted for in a manner consistent with general debt obligations. 21 ■ ■ CITY OF NEWPORT BEACH ■ Notes to General Purpose Financial Statements June 30, 1999 ■ ■ Property Taxes ■ The assessment, levy, and collection ofproperty taxes are the responsibility of the County ■ of Orange. The City records property taxes as revenue when received from the County, except at year ends ,wheh° property taxes received - within 60,days are accrued as revenue. ■ Property taxes ere assessed -,and collected each fiscal year according -to the following property _tax calendar. ■ ■ Lien riate; March .1 : Levy date. July 1 ■ Due dates- November 1 —1st installment March 1 — 2nd installment ■ Collectioh,- ates December 10 — 1st installment April 10 - 2nd installment ■ Compensated Absences .; ■ It is the City's °policry to permit employees to accumulate earned but unused vacation ands ■ ='u', limitedeamounts of eamed,but unused si&leave benefits which will be paid to employees�,Mo- upon separabon.from City. service: Beginning in .fiscal year, 1990, the;City adopted a;;r ■ general leaveffilan to replace the'traddional vacatioh' and sick weave plan. The Citytuses a general leave Ile k ,G plan which permtts a maximum "of three ;years accrual.for every.=employee„ ^;IF ■ above which theexcess is'paid out as curreni compensation. All employees hired pri or tog 1 "j' ■ January' 1 1990 'were given the option of remaining in the traditional vacation antl sick'Fa leave plan or enrofling`irr the gehe�al weave plan All employeesjiired on or after'January ■ 1,1990,are automatically enroBOd'in_ the general'le2ve plan: Compensated absences are,:,_ awrucu -ui uiG,aucniai..�c�n�c.ruuu.m �w rciiiywyac acivww i1avc:uccn IUIIU=rcu anu; ■ when it becote tes. probable than the City wiltl compensate the employees for benefits 11 through paid time bff'or cash payments at termination-, or retirement. Benefits that have ■ been earned but are --not yet °available a for use because employees have not met certain conditions are accrued` to the - extent it is -probable that the employees will meet the cor')'66ns for compensation in the future. Deferred Revenue ■ Deferred re venues. are those where asset recognition hasV been met, but the revenue ■ recognition cnte. -,a -xnot beeri met: ■ Memorandum Only Total yColumnsl ■ Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not ■ present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. ■ Interfund eliminations have not been made in the aggregation of this data. ■ ■ 22 ■ CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 Comparative Data Comparative total data for the prior =year has, been presented in selected sections of the accompanying financial statements,in order to provide.an understanding of the changes in the City's financial posrtiorrand operations. (2) Cash and ln40rnents The., City has elected to pool. all cash and - investments of all funds,,, except for funds required to be held by- ouiside fiscal agents under the provisions of certificates of participation., Cash and investments ;at June 30, 1999,. consisted of the following. Pooled cash deposits _ $1,098,386 Pooled investments A8,602583 Total unrestridted cash and investments 49; 700;969 .Restricted cash :and investments: Cash and investments with fiscal 'a ents g- 11 149;132. £. Total cash and investments $60 „850,101 . Authorized Dep'ositsAnvestments . 23 CITY OF NEWPORT BEACH ■ Notes to General Purpose Financial Statements June 30, 1999 ■ Deposits Deposits consist of cash and demand deposits accounts. Deposits in banks are maintained in financial institutions diet provide Federal Depository Insurance Corporation 'Goverriment protection on the bank--' The California Code requires California banks and savings arid--loan associations, to, secure 'a city's deposits by pledging government sedurlties as collateral The market value of pledged securities must equal at least 110,% of:a'city's deposits. California law also allows financial institutions to secure city deposits by pledging first trust deed mortgage notes having a, value of 150% .-hat.are "sits. of a city's ■ The Cii total diipo "y' -may waive collateral requirements for deposits fully msUred up to $100,000 by federal depository insurance. The City's.deposits at yearend are4ciategorized below to give an indication of the level of credit risk assumed by thsC�ty in three categories as follows: Category 1' Insured or collateralized with securities held by the City or its agent,° in the City's name: Category 2 Collateralized = with securities :held 6y .. the pledging 5 financiaf J4 institutions trust department.or agent m the City's name u. Category S lJrtcpllateralized r' ■ a =43SY 1: a , As d,June 30 Y999,'the City's deposd balances were.as follows: X y Mkpi H1�h' Category-, Bank Carrying .1 2 -` 3 Balance Am ourit Petty Cash $8'082 ;Deposits: [?emand deposits $268,304 '$960,831 $1,229,135 1;090,304 . total deposits'`' $268,304 $960,831 " . - $1;229,135 $1,098,386 24 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 Investments The investments that are represented by specific identifiable investment securities are classified as to credit risk. bV.three a tegories as follows ed or securities held bjAhe;.City or its agent in the unregistered, with securities -."held,, by the Category 3 Uninsured 'and unregistered, With'.. securities held by,';,the counterparty or by its trust department or agent but not in the City's U S_ Treasury Notes . $2,838,875'.' $4,373,606 Federal Home Loan Bank' 1,058,782. ' 5,097,711 ` Federal Home Loan Mortgage Corooratwn .:_' .. sr• 500 625' Federal N6tional Mortgage•-" . Association 8;565,004 3;089,120 Other Government Securities 2,553,659' Money market funds'.. Medium term notes 3,536,143 '81071;950,; ' Commercial paper. 1,998,001.- State;of California: Local-Agency-- Investment Fund* Los Angeles County Pooled Fund * - - -` Total pooled investmdnts,. ,$21,051..089. $20;632,387 Investments with fiscal agents: Mutual funds* * Not subject to categorization. 25 $7,21'2,481 ,'6''156,493 $00,625 11x654,124 2,553,659 5,327,584 11,608,093 1,998,001 1,507,839 83,684 $48,602,583 $11,149,132 ■ ■ CITY OF NEWPORT BEACH ■ Notes to General Purpose Financial Statements June 30, 1999 ■ (3) Fixed Assets ■ A summary of the changes in General Fixed Assets, is as follows: ■ Balance' ' Balance July 1, 1998 Additions Dele4ohs June 30, 1999 ■ Land $27,698,922 $445,020 ($195,261),. $27,948,681 ■ Structures--" 42,307,827 402,989 42,710,816 ■ EquijfrLient 12,220,165 630,936 (751,642} 12,099,459 ■ $82,226.91;4:,. $1,478,945 ($946,903) 182,758,956 ■ A summary of the changes:,m the Proprietary Fund ype fixed assets is as follows: ■ Balance =: Balance Additions, Deletions June 30, 1999 'i ■ 51 *fJ p TS? ,W a• s a.H Enterprise Funds 9 1 t g 9a a ■ Land $3 055,613, „ $3,055 613` j r Structures 900696,396' $1,113,940 ($'1,445,000)` ,Ak 1 100,36533fi "; ■ Equipment •° ;. 671 171: 671 17t; "n „ ■ "r Work °in progressw I Is 680,026 ;" 680 _'$1Od,423,180 ,'1 783,966 ($T;445;000) $104',772 146 " ■ ■ depreciation (48 232,286) (2 151,640) 1;445;000 (48,938,92$) ■ Net $56,190,894 ($357,674) $55,833,220 Interctal.Servlce Funds: Equlpri ent $11,154,336 $1,141,659 ($879,412) $11,416,583 ■ Less accumulated,-,-;- depreciation,- ; (5,110,773),,. (1,244,1'17) 764,745: ($5,590,145) ■ Net $6,043,563 ($102,458) Q$194L667) $5,826,438 ■ ■ ■ ■ ■ ■ ■ 26 ■ CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 (4) Long -Term Debt A summary of the changes--in= the °General Long -Term Debt Account Groul Balance July 1k, 1998 . - - Additions Retirements " Certificates of participation $6,780,000-__- -- " $7,330,000 ($7,040,000) Note payable... 2,7Q3 949`,_ -. (114,694) Capital leases 1,532;071, 1,950,944 (825;8.34) Total .$11,016 020 ., $9;280,944 80,5n • ...Certificates,of,,Parti'cipati'on . ,.w a. In Fiscal Ye..ar 1998 -99 the : NewporC.. Beach Public Facilities Coi _..$7.330 6606 f Refunding Certificates of..Participation to currenUadv is as follows: Balance Agreement The City., has previously entered into:a. project lease with'the,Newport Beach Public Facilities = Corporation to leas&certain opperty,,facilities, improvements;: and equipment. . The lease payments made bythe -City are.held by- a- trusteewho makes semj= annual payments on_the Certificates of Participation. The lease, °payments began';May 15, 1994, and are in amounts °sufficient to cover the payment of principal and interest of the'Certificates. The 1998 Certificates consist of $2,995,000 -of Serial Certifcates with interest -rates from` 3.6.% to 4.55% and $4,335,000 of -Term Certificates `with interest rates from- 5.05% to 5':15 %': Interest on-the Certificates is payable semiannually on June 1and- December 1 of each year. - Future principal payments range from $225,000 to $535,000 from June 1, 2000 through June 1, 2019 Principal. payments are payable annually on June 1 °of; each year At June 30, 1999 the 'City has a required cash reserve balance for debt service of $594:186, which is>r`ecorded as a restricted asset and reservation of fund balance`'in the'DebtService Fund. The Certificates outstanding at June 30, 1999, amounted to $7,070,000. • Note Payable Note payable consists of a note to the California Department of Boating and Waterways in 1987 for a loan in the amount of $3,300,000. The note is payable in 27 ■ ■ CITY OF NEWPORT BEACH ■ Notes to General Purpose Financial Statements June 30, 1999 ■ ■ 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, 1999, amounted to ■ $2,589,255. Capital Leases Office Eq&jp fiscal years-, "City has entered ■ ,Yh-bht Leases' .and into sev6rale,lease-puircjlasee agreements as lessee for financing the acquisition of a geo, h _6tiorr' -rit and _lgrap ic inform --system and upgrades dquipme -soft - vare to the ■ fi nancial manag ei t and data- pre6ce-gsing systems. The terms of the -6 i leases range jr6m- three to five years 'and �-_--_ are. payable monthly. The interest rates on these ■ obligations range from-5%to 9%1.These lease agreements qualify as capital leases for �.'_•-IaccoUnting purposes �as�jhe- titlelt�ansfers at the end of the [lease term•or theJecise ■ i I I I- - _ - :7- hi ipurc, ase�:option. contains; a -bargain ----------- - Computer-Aid6d.-biioatch-.�',T-hd City. entered into a lease agreement on November 1996 ',,'in the -ainbu , nVof $1x75%561.'-At I June 30, 1999'; the lease procee,. held -irve', escrow aslkres.iiic.ted,. cash -.i,h. th-e'GehOral Fund.tot6ling $741,602 an& ill be,.use each phase `,%6f-the police information .'equipment 'installation. the equipment is I 'a.s_coIlatdfakt Uhe lease is payabl'�4 in five annual installments of $4 1 f% 1 en in 'July 200T:ffhe-tease bears interest at the rate of 5:33% 'e' Ile Mb9&h`&d2i.Bdnd-,The Citye nv`terecl�:4;Ato a lease,: agreement as lessee on nu 4, ■ 7 1999 14,,;�;the am`6unt_of41,9'50"b4`4 At June 30 .1.999, thd]ease proceeds are • cr6" w as�eesttdted cash inith6�General F%nd.tbi&ngz$54 0:4W 48 an i 1:11 finance publ' i'c safety-bo ffi� 6�fi systen ' connecting with .othee,'pIt' ' pptin I f ,agenciesAo provide dispatch and mobil6 eqoip-'me'n-t'-: The .:equipment is 1 bollbteral.'The leasbjspa-y_ a btb.h.four annual inttallm -ents of $546,870 ending July 2002. The lease bears i6terest.at-a rate of 4.' .,This'lease:agreem t qualifies ' capital lease-- -for' accounting -purposes and,' therefore, has been recorded in t -General Fixed Assets Account Group. A alIAmortizatidn Reduirements of Long-Term--Debt - ■ The annual requirements to-- amortizb"obtstanding -debt included in the Gener,61-1ong-Term ■ Debt Account Group ai-of.-June 30, 199,9, are as follows:'--- ■ ■ ■ ■ ■ ■ ■ee` 28 ■ Year Ending June 30 2000 2001 2002 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 Certificates of Participation $11, Note Payable $236 -372' Capital Leases Total t0, 236,372 960;747 236,372 - 35 236,372 x2 2,468,563 f5` $3,650,423 - $2,928,041 )5)""' (T061,168) (270,861) )0 `. $2,589255 $2,657,180` $1,790,141 1,773,005 1,760,059 799,512 799,057 ollows: Balance Jun4.30, 19 In Fiscal Year 1998 -99 the Cit-11. issued :.$14225;000 `of Refunding Water Revenue Bonds to currently refund the ''1994 "Water`Revenue Bonds used to finance the construction and acquisition of water storage and transmission facilities. The refunding was undertaken to reduce total debt service payments over the next ten years by $481,153 and resulted in an economic gain of $418,469. The bonds are secured by a pledge of net revenues of the water fund. The 1998 Serial Bonds bear interest ranging from 3.6% to 4.5 %. At June 30, 1999, the City has a required cash reserve balance of 29 ■ ■ CITY OF NEWPORT BEACH ■ Notes to General Purpose Financial Statements June 30, 1999 ■ ■ $1,460,896 which is recorded as a restricted asset. Eleven annual principal payments are payable on August 1, and semiannual interest payments are payable on February ■ 1 and August 1. At June 30 1999 the outstanding principal balance was $14,225,000, and accrued interest payable was $294282 ■ r. Water revenue bond A6bt service requirements to maturity; including $3,590,037 of ■ interest are asfollows:. ■ Year Ending ■ June 30 - Amount 2000P $1,595;115 ■ 2001 1,635,946= •2002= 1,632,900 ■ 2Q03' 1,626,872 ■ 20041 11622,958 Thereafter 9.701246 ■ s Total. $117,8151637: }d ■ R 04M1 y ti: Internal'Service Furtdss q , „� ■ A summary of changes m'long term :debt of the internal. service .funds is as follows : ■ K C 1 q k,- Balance Deductions/ Balance ■ Y:1- 199$ Additions Retirements June 30, 199'9` s ■ Claims afd judgments payable "$11,062;273 :$2,518,152 .., ($3,314,360) $10,266,065 Compensated absences 6,970,377 920,757- (970,623) 6920;511 Capital leases 1,289;369 133,443 (483,644) 939,168 ■ =_- 19,322,019 $3,572,352 ($4,768,627) -t 6,d 25,744 ■ Less eument portion (4,754,475) , _ _- (4,623,352) ■ Total long term $14,567,544 $13,502,392 ■ ■ Claims and Judgments i ■ The City retains the risk of k M— 'fdr!§Ohera&diability and workers' compensation claims 'amounts as described in note (6). These represent estimates of amounts to be paid ■ for reported general liability and workers' compensation claims including incurred -but- not- reported claims based upon past experience, modified for current trends and ■ information. While the ultimate amount of losses incurred through June 30, 1999, is dependent on future developments, based upon information from the City's attorneys, ■ the City's claims administrators and others involved with the administration of the ■ ■ 30 ■ CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 programs, City management believes the accrual is adequate to cover such losses. The estimated liability at June 30, 1999, amounted to $10,266,065. Compensated Absences (5) Special Assessmene=6istiictsZondS The City holds reserve funds on behalf of bondholders; the assets are recorded in the Special Assessment Agency Fund. Bonds outstanding at June 30, 1999 for each district under the Bond Acts of 1911 and 1915, and other special assessments, are as follows: 31 ■ ■ CITY OF NEWPORT BEACH ■ Notes to General Purpose Financial Statements June 30, 1999 ■ ■ Bonds ■ Original Outstanding Assessment District Issue June 30. 1999 ■ No. 57 Corona Highlands $938,59$ $312,866 No. 58 CaOne_ry;Village 107;746 30,000 ■ No 59 'McFadden Square 530,609 345,000 No 60 Bay Avenue . 236,533 °. 155,000 ■ Mo V East Bay Front 127;299 85,000 'ft-'62 ■ Hazel,Drive" 335,210 220,000 o.63 Newport Island 536,531 375,000 ■ NO ° - -64 Channel Road . ; „` 180;794 157;000; 0; _65 Rocky Point 53,125. 35,660:::" ■ No. 66 East Netnrport 171,911. 125,000 _N &V 67 tCDM$Ik -133 64,431 55,000 ■ No 71 _ :Bal6" Blvd.." 796,942 760,000 yitlo 72 . Bailioa Coves : 192,908 17001 ■ No 951 GtOSAA.. 7,500,000 6,050,000 No 95 1 s'CIOSA B 9,335,000 9,070,000 a ■ Although the City collects and diaqurses funds ,for'these' districts, the City has noy„ ■ obligation =owduty to pay-any delinquency, out of any available funds of the City. Neither♦ =, < the1aith andmoredit nor the taxing: power of =the City 1s pledged to the paymen•of thw9MI: ■ bonds and therefore the bonded indebtedness is not shown in the financial statements ofj,�R: the City. s x a' f . s r;i X. u ■ Risk"Management General LUab lIW1and V1lorkers' Compensation ■ The City is exposed to various risks of loss related to torts, theft - of, damage to, and ■ destruction of assets,.errors:and omissions,- injuries to employees; and natural disasters. The, City carries commercial insurance with • independent' third parties for loss risks ■ 6§900ated 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 ■ exceededtcommercial =insurance coverage= for'the past three years. For general liability, the Cityhhas.excess insurance coverage of ,$25 million per occurrence with aself- insured ■ retention (SIR) of1$500,000 per occurrence. ■ For workers' cbm' pert§atioft .and employer's liability__ insurance, the City has excess insurance coverage of $1 000000'per•occurrence. with a`$300,000 SIR. This coverage ■ provides for work - related accidents and:disease's.° ■ The Insurance Reserve fund was established to account for costs associated with general liability, workers' compensation, and compensated absence benefits. The Insurance ■ Reserve fund is accounted for as an internal service fund where assets are set aside for ■ risk management, administration, claim settlements and benefit distribution. A premium is charged to each fund that accounts for part-time or full -time employees. The total charge ■ ■ 32 ■ CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 allocated to each of the funds is calculated using trends in actual experience after considering unexpected and unusual claims. Fund Liabilities are reportetl when It=is probable that atoss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an 'amount for claims that have been incurred but hdt' reported (IBNR). Claims liabilities are-calculated considering the effects of inflation, recent• claim = settlement 'trends including frequeno , %and amount of payouts; another economic and _social factors. The liability claims payable include $ 10,266;065 which,represents the discounted present = value.at_June 30, 1999; the claims The City contributes to_the California Public:Employees,Retirement System (PERS), an agent multiple - employer public employee defined beriefYpension plan. PERS provides retirement and disability benefits, annual cost -of- living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS' annual financial report may be obtained from their executive office: 400 P Street, Sacramento, CA 95814. 33 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 Fundina Polic Participants are required to contribute 7%_(9% for safety employees) of their annual covered salary. The City, makes the contributions required of City employees on their behalf and for their account=The City is required to coritnbute "at :an actuarially determined rate; the current rate isz 3.943 %,for. non- safety employees and 1.3.574% for safety employees ©t annual °covered`payroll. -The contribution '.requirements of plan members and the City p- 0 and ,may be- amended by PERS. 34 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 SCHEDULE OF FUNDING PROGRESS FOR PERS ($ Amount in Thousands) Actuarial Ac uair ial Valuation ;Value of Date i Assets t AAL or (A). 6/301955: Ratio Misc. " $71,184 ' Police 97,46_0__--,- Total $168,644 - 9 $6,696 Excess - Assets (Unfunded Police AAL or Funded -. s UAAL Ratio (A B) (A / B) $901 101:39oa _ 5,795 106.3 °la' $6,696 104.1%:_ _r ,6/30/96. $76 334 ' ` $79 -075 CO 741 96 Sol plan,, benefits depend solely on amounts - contributed to --the- plan -plu,, AIL part -time employees 'are eligible to participate from•the date of legislation requires contributions . of,at- least.7.5% to a retirement K resolved to match the employees' contributions -of 3.75 %, The C'itq's employee (and]nterest earned by the accounts) are fully vested imn For the year' nded June 30, 1'999, the City's covered -payroll for ei in the plan was $2P-1 69 281': The. City made employer contributions- current covered payroll): Assets °of the plan totaled $1,711 572 at Ju (9) Early Retirement Program Excess Assets (Unfunded) AAL as a % of Covered 11 each loyees participating $81,348 (3.75% of 30, 1999. On June 30, 1993, the City implemented and offered an Early Retirement Program to certain employees whose retirement would lead to a permanent vacancy within the City organization. The Early Retirement Program provides participating employees with a 35 Police :50,8;704 103;757' 4,947. 104.8% Total _5185,'038 :, ' '::: $182;832, ,< $2206 101200: 6130/97: ::.,as;.;..... • .. :.: ` Misc., , ...::$76;991 $90;827.. J. . ($13,836) ..: 84.8% Police 51.6 590 120 123 3,533 ' • 97.1 °to Total $:19.3 581' $210,950 $117:;369 91.8% ri f< 'Ian Descnot)on- Defined =Contribufoli Plan 4S. of January 1, 1.992, the City entered into a defined contr'ibutii plan,, benefits depend solely on amounts - contributed to --the- plan -plu,, AIL part -time employees 'are eligible to participate from•the date of legislation requires contributions . of,at- least.7.5% to a retirement K resolved to match the employees' contributions -of 3.75 %, The C'itq's employee (and]nterest earned by the accounts) are fully vested imn For the year' nded June 30, 1'999, the City's covered -payroll for ei in the plan was $2P-1 69 281': The. City made employer contributions- current covered payroll): Assets °of the plan totaled $1,711 572 at Ju (9) Early Retirement Program Excess Assets (Unfunded) AAL as a % of Covered 11 each loyees participating $81,348 (3.75% of 30, 1999. On June 30, 1993, the City implemented and offered an Early Retirement Program to certain employees whose retirement would lead to a permanent vacancy within the City organization. The Early Retirement Program provides participating employees with a 35 (10) CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 supplement to their normal PERS retirement benefits by an additional payment from the City. As o City are 30, 1999, At'JUne. V al �i�fi Capital 1 Bonita Total from the C premiums 36 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ iivables:4ind Pavables'.. 19 interfuneceiva6les "' a; •s F Se s, ue Funds: s •o nc nnr}g4inn -- �'- 36 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements ■ June 30, 1999 ■ (12) Interfund Transfers ■ ■ Interfund transfers are reconciled asrfollows ■ Transfers in Transfers Out ■ General Fund $3 486311 $546;f38 Special Revenue Funds = 3,236;31,1`' - - -_ ■ Debt Service Funds- 546,638 - . Intemal Service Funds 250;000 ■ Total,,_--.: $4,032;949 ---'--$4,032,949 ■ ■ {13) Changes m Contributed`Cauital ■ Contributed capital of the.Enterpnse Funds was unchanged as follows ■ Water . Wastewater .ry Total ■ Balance, July'7, :1998 $6 044 944 :,$9 758 953 ;• $15,803,897 ■ Balance June 30 1999 $6,044;944 149,758,953. ,,$1;5,803;897 ..,. Contributed capital of`the Intemal Service Funds was unchanged as follows: ■ ■ Equipment Balance, July 1, 1998 '-$4,097,648 ■ ■ Balance, June 30, 1999 ` $4,097,648 ■ ■ (14) Reserved and Designated Furnd'Balances ;. ■ ,.,.. The City has set up "reserves" of fund equity to segregate fund balances which are not appropriable for expenditure in future periods, or which are legally set aside for a specific ■ future use, Fund "designations" also may be established to indicate tentative plans for financial resource utilization in a future period. ■ ■ ■ 37 ■ CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 The City's reserves and designations at June 30, 1999, are tabulated below followed by explanations as to the nature and purpose of each reserve and designation. .g reserved f+ orders; and 7,109,: "$5,136,756 $594,186 $612,109 of Julie 30; 1.999 areas follows: Special Debt Capital :Special . General . Revenue_ Service ,-Projects "Capital. Fund Funds Fund Fund Total $1,613,535 $5,138,756 $16,265,370.. $612,109 $7,364,400 108,574 -- L2,3 90 =' ., _. 108,574 8,332,390 $594,186 594,186 .g reserved f+ orders; and 7,109,: "$5,136,756 $594,186 $612,109 of Julie 30; 1.999 areas follows: 73907 $6,ti09405 $6,451,673• :,` $26,234,985 ; mbrances are -commitments -for materials and services' on Is that are legally committed but not expended by fiscal year ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Keserm" for lnventones ■ This accountfieflects the-value of inventories - purchased by the City but riot yet issued to the operating depa"merits. ■ Reserved for debt seance ■ This account sets aside 'a portion, of fund balanc :'to'`meet the annual debt service requirements. ■ Designated for special proiects ■ There are several special projects for which funds have been designated for equipment replacement, refurbishment, development, and/or improvement. These special projects ■ ■ ■ 38 ■ :Special . Revenue "Capital. ,. al Fund., . :. „ :.Funds ,., .. Protects Fund Total:: . 04,292'- ..,`,.,, $6,J09,405'.. $16,265,370.. 37,225,= '1,637,225 L2,3 90 =' ., _. 8,332,390 73907 $6,ti09405 $6,451,673• :,` $26,234,985 ; mbrances are -commitments -for materials and services' on Is that are legally committed but not expended by fiscal year ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Keserm" for lnventones ■ This accountfieflects the-value of inventories - purchased by the City but riot yet issued to the operating depa"merits. ■ Reserved for debt seance ■ This account sets aside 'a portion, of fund balanc :'to'`meet the annual debt service requirements. ■ Designated for special proiects ■ There are several special projects for which funds have been designated for equipment replacement, refurbishment, development, and/or improvement. These special projects ■ ■ ■ 38 ■ CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1999 (16) Individual Fund Disclosures (17) At June 30, 1999, the deficit fund balance of by future interdepartme The received IOSA 0 paid:. No a( r,:any, ami erve = internal Service Fund had an accumulated e accumulated: deficit is expected to be eliminated n `filed against the City in the normal course of 'uch claims;' based. upon information received from and the Risk Manager, has been estimated; and :nts payable (See Note.6)., arovement and Open Space Agreement (CIOS7#) Id-receive' up to $14,395,572 to be used only far; Improvements, of which $9,211,000 had bee mat6hi the contribution (without interest) aes (developer impact fees) which are recorded in cial Revenue 'Fund, During the year ended June,'. f Fair Share Fees, and $315,242 Was paid to the; ind.. ,,Through June 30;, 1999, $1;205,870, of Fair ial liability has been recorded, because,`any future;.' not contributed by February 20, 2616, will be t, d. 'inancing Authority (Authority). is a joint venture_ Unified School pistnct.'The Authority's Board is comprised of two members appoi each of the member agencies.. The Authority created Community, Facilities District fiiian� public facilities thaT will 5enefit the properties ;within, their boundarie Authority issued $45;000,000 of special 'tax' bonds: which: will be repaid by' assessments; the City is-not obligated in any manner, to repay the bonds. The A paid---the-City $30,577,712 (81.7 %) to pay for the costs of acquiring and constructin facili6esxmeluding par;KS and road improvements. At June 30, 1999, the bond> pi are heid�i4j ust as restricted cash totaling.$6,104,258. The -City of Newport Bea( not include tRe' thority as a compornent unit, as the City is not financiatly`account the Authority s acEivesaand the Authority 'rs:,not fiscally dependent;on fhe City. 40 public does le for ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ s ■ ■ Supplementary Information ■ ■ Center Tower ■ 650 Town Center Drive Costa Mesa, CA 92626 ■ ■ ■ ■ Report on Supplementary Information ■ The Honorable Members of the City Council City of Newport Beach, California: ■ ■ We have audited the general purpose financial statements of the City of Newport Beach, California (the City) as of and for the year ended June 30, 1999, and have issued our report thereon dated October 22, ■ 1999. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. ■ The accompanying combining, individual fund and individual account group financial statements and ■ schedules listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Newport Beach, ■ California. This additional information is the responsibility of the management of the City. Such information has been subjected to the auditing procedures applied in the audit of the general purpose ■ financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. ■ The year 2000 supplementary information on page. 43 is not a required part of the basic general purpose ■ financial statements, but is supplementary information required by the Governmental Accounting Standards Board, and we did not audit and do not express an opinion on such information. Further, we ■ were unable to apply to the information certain procedures prescribed by professional standards because of the nature of the subject matter underlying the disclosure requirements and because sufficiently specific criteria regarding the matters to be disclosed have not been established. In addition, we do not provide assurance that the City is, or will become, year 2000 compliant, that the City's year 2000 remediation efforts will be successful, in whole or in part, or that parties with which the City does business are, or will become, year 2000 compliant. ■ The statistical data listed in the foregoing table of contents is presented for purposes of additional analysis ■ and is not a required part of the general purpose financial statements of the City. Such additional information has not been subjected to the auditing procedures applied in the audit of the general purpose ■ financial statements, and accordingly, we express no opinion on it. ■ ■ K`�w(G t1-P Orange County, California ■ October 22, 1999 ■ ■ 41 ■ .... KPMG LLP. KPMG LLP, a U.S. fimiWJ liaaillry WnerShiD, is a meMWr d KPMG InWn oNl, a Swine assmimi i �s I ♦ i ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ r ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Required Supplemental Disclosure June 30, 1999 Year 2000 Issues MK) (Unaudited Due to computer programming shprtcoming; other equipment that rely,en daje �en6tfivepFr interruptions orfailurettot; r�January O-rs `t, computer programs head been written epsiru_ applicable y pSaSftwarg_ Frog#arrr that h4% date usinCi �(i0°�s the vdar 1900�tather'than M has . The PEF compliant. duled for i date controlledse deficiencies in then+ become, Year 2000 possible that computer systems and g_r;ode or circuitry may experience .Tt��t€ issue arises because some digits 'ralt+11_ four to define the sensitive feaitures,,may recognize a This couldresui fan - t em failures or vupgr m ot,$ystems or replacing,e_compor jance,andarits. Criticatsystems „yntti the nf�ieCt ss °being.' fifer A+d�d Dispatch (CAD) ystcm 611 Syem (F4ind Accountirsg Bitlt7tg, RE „ j° W5• 14 .�.. K .j4” iformatiori.Sytterrl(GIS); cationslNtworkingi:(LAN &°1NAN) system were Unaudited -See Accompanying Auditors' Report 43 This mere all of compliant ted'`prior to October ".1 vendor certified --t tie 'the City voice-,',M pi11V is ssment of nditical sonal computers and 1`;necessary fiction to ated. Adtnally, the a irafwdnaltion system aattng a Ventilation Air napes, elevators , and i'iaken to correct any that the City is, or will ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ yr. 1 rY ^t t.e. ■ e A M Y" ■ This page,leftrkilank intentionally. ■ 1 1. ,,;� 1 x x _ 1; ■ u r. ■ ■ ■ ■ ■ ■ i ■ ■ ■ ■ 44 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Comparative Balance Sheets - General Fund June 30, 1999 Total kietiilitE sand Fund Balance ', $ 25 764 024..;° °. °$ °19,265,775 See Accompanying 45 1999 1998 Assets k F 5 Cash and roves $' °`i38{f47{1iTe 5,634,471 Accounts rece s° b� 'And "accrued r eques e,$ 147278 °a 1,947,948 Due frornoltlergovernmenis 2,276,602tl ,?21,157 Due fr<hissot let funds °s 5 937 3 ?4,:, ! 417 Inventories of material anitsuppiies, at cost t08574. 136, 33 'l' Rest %Eed assets r asPt and mvestmenis ° „ 1 282;b5d 1 2-0,010 iJtiter assets 211r49tr: 3 5879. Notes receivable 200,Ot Total Assets $ .5 7&tA024'` $ 19,265,775 , - abilities ij FUnd Balance Liabilities', cou ymalble,and Accrued liabilit�eswb^ $rAw S 124st8 r, $ 1,386;437 A et, i 34f'48 1' 133,34B �� k Deferrle%rev @ni t X aY ' 729 537 T05,443 tY,Rti�t`ePos4tsY "Yrj;„ bX � 3;279 4Y t�sw TotLlbtih4s a('1Y1 ;, Y 10388,008; °" "yFbYb 6504,721 9yP 'Pg dpi, 1 8 h 4� 90 9 u Y i 4R' j 9e�+1 eY }d4 Fund'Balpnce`" Igsery Reserve0„fore�euiYtbaartc @e ° °`" ,;3,613,53fr,; .2,691,753 Reservej, r ifiventones , '�. 70$ ., 136,633 Reserved -ftar'fpng -terns r8cenrle , 200,000 Unreserved: , ° Designated for special projects 3,704 29 3 601 1 Designated for stal itizatlon P 1,f37 225 :81 518 ° ° Jesignat for ,.8,332,396 °ti _ 4613.4A 5cgntingenores- $othF,und Belan 75 396,016 �,054 Total kietiilitE sand Fund Balance ', $ 25 764 024..;° °. °$ °19,265,775 See Accompanying 45 ■ ■ ■ SPECIAL REVENUE FUNDS ■ ■ Special Revenue Funds are used to account for the proceeds of specific revenue sources which are legally restricted to expenditures for specified purposes. City of Newport Beach ' Special Revenue Funds are as follows: ■ The State Gas Tax Fund accounts for all State Gas Tax related revenues and expenditures, including street repair, construction, and maintenance. State law requires that these funds be used exclusively for maintenance of the street and highway system. ■ The Asset Forfeiture Fund was established to account for all revenues resulting from the seizure ■ of assets in conjunction with criminal cases (primarily drug trafficking). It is the City's policy that all such funds shall be used for enhancement of law enforcement programs. ■ The Tide and Submerged Land Fund is used to account for all revenues and expenditures related ■ to the operation of the City's tidelands, including beaches and marinas. ■ The Contributions Fund is used to account for revenues received from other government agencies or private developers and expended for specific street or highway construction projects. ■ The Circulation and Transportation Fund is used to account for fair share revenues collected ■ from developers and restricted for capital improvement projects meeting the circulation element of the City's General Plan. ■ The Building Excise Tax Fund is used to account for revenues received from builders or ■ developers on building or remodeling projects within the City. Expenditures from this fund are used exclusively for public safety, libraries, parks, beaches, or recreational activities. The Combined Transportation Fund is used to account for the revenues and expenditures of ■ funds received from the Orange County Combined Transportation Funding Program. Expenditures ■ from this fund are used exclusively for transportation related purposes. The Community Development Block Grant Fund is used to account for revenues and ■ expenditures relating to the City's Community Development Block Grant program. These funds are received from the Federal Department of Housing and Urban Development and must be expended exclusively on programs for low or moderate income individuals /families. ■ The Ackerman Donation Fund is used to account for the receipt and disbursement of funds ■ received from the Ackerman Trust. These funds are split between the City and the University of California, Irvine. The City's portion must be used for library and scholarship purposes. The Air Quality Management District Fund is used to account for revenues received from the South Coast Air Quality Management District restricted for the use of reducing air pollution. The Environmental Liability Fund is used to account for solid waste fees restricted for mitigation of future environmental liability relating to the handling of solid waste. The Supplemental Law Enforcement Services Fund (SLESF) is used to account for revenues received from the county to be used exclusively for front line law enforcement services. i Misc. Grants Fund is used to account for all other short-term grant programs. AM LAa 4X AI fi 1 4p� 1^e A w,< Ipv + a ap 9 yAnA,, A q �LpA� t -0 ae q.. t b" 4` 1 47 p 5 is r �% his pa ge ,left blahk:mtentionally 1 1 p 111 a ap 9 yAnA,, A q �LpA� t -0 ae q.. t b" 4` 1 47 Cash and investments Accounts receivable and accrued revenues Lease receivable Due from other governme Total Assets Liabilities Liabilities: Accounts., and aaa Accrued�p,aj Due to, DeferreMp&i Depostts +a'p.. n Total I. Fund Balance`€ Total See Accompanying Man ces - and CITY OF NEWPORT BEACH Combining Balance Sheet All Special Revenue Funds June 30, 1999 State Asset Gas Tax Forfeiture Tide and Circulation Building Submerged and Excise Land Contributions Transportation Tax ? 'b0B61 , 142424 •. 1,695,082 "2240427 " 3,693;302 ', 561300 - - 4;331,852.. -- �- 5,933,328' 652161 74 424 -- 6,226,934 $ fi;023706 $ 667,825` $` 'i5441696 $ 4;934,063 $ 6,711,477 48 ,31 51 2 ■ 'p'lk;41,189 887 9 l,A`V1209 950 ■ ■ ■ ■ Community Air Quality Supplemental 16,095'69091 Combined Development Ackerman Management Environmental Law Misc ■ Transportation Block Grant Donation District Liability Enforcement Grants ■ , $ 172,243, -;1 $-1,124-1488, 634.997 U 25,982 $ 15,011,255 $ 15,964,838 ■ 'p'lk;41,189 887 9 l,A`V1209 950 5;138,7.56 6149,405 405 ",'7,559,710 '14;8471529 84T "8,031,744 16,095'69091 $ 2,642,821 $ 147966 'k-20,395 , $ 2,642,821 $ 147;9$5 $ 838;243 �, 144,883 $ 634,997 18,599, $ 25,662,, ■ ■ ■ $ 1,9,616 118.085 66000", - ■ 1,026,358 147,985 6j600 19,616 ■ �77 ■ 6tt 44.320 ■ 922.035, 172,243 100-563 61-6,381s 1,616,463_ = 144.883'- 615,381 $ 2,642,821 $ 838,243,,,, '$k, 144,883 $ 634,997: 18599 25,982 ■ ■ ■ ■ ■ 49 ■ $ 472,989 377,517 666,000 740,000 818,745 7,789,154 $ 24,874,509 1,975,909 � 15,322 "1337,165 !ii&935_ 'p'lk;41,189 887 9 l,A`V1209 950 5;138,7.56 6149,405 405 ",'7,559,710 '14;8471529 84T "8,031,744 16,095'69091 , 1 k'kk` 17,554,697 $ 23.L",' ',' $ 24,871,509 ■ ■ ■ City of Newport Beach ■ Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Special Revenue Funds For the Year Ended June 30, 1999 ■ ■ - Tide and Circulation Building ■ �• , . State Asset' -Submerged „., and Excise Gas Tax, . Forteiture Land!' Contributions Transportation Tax ■ Revenues: Licenses, fees and pennfis.. -. $. 1,136,643' - -'- : $- 630,484. $ 498,523 ■ Intergovemmentpi revenue $`1,458,336 _ -. , - -- :..,22,638. $ - 6,368406 Charges for setvma : ^- ': 20,789 - Fines, forfeitures -and penalties, ,377,669 8,263 Revenue from use of money, -- ■ and properly 249,637 3,035 4288311 - _- 364,149 - :24,198 Contributions 100,5804 - 62,788 ■ Other Total.Revenues -' 1;707;973 `.' 380,704 -. 5,476,644 6,468,986 1,057,42f - 522721 ■ Expenditures: Current;. ■ public safety 126,369: P�11c works” 263,097 315,242 . Community development ,Communitysehdces 832,291. < ■ Cap(tal!Outlay; 1,122,582 < 1,127,411- 6,606,671 2,761,509 436319,' Debtservice ■ principal 114,694 Ime`eesl and fiscal charges 121,678 .. ■ TOW Expenditures i.. 1,122,582_ ' `; 126,3W 6,808,871 :'3,076,759 436319 • Exces3 (Defu:lency) of < Revenues Over ...: ■ (Under) Expenditures 565,391 .. 254,335:, 3,017,473- (139,885) (2,019,330) ,� 86,402 Other Financing Satre (Uses):.. "....: ■ Operating transfers out }-` (100;000) Sale of properly 157,681,' - - - ■ Total Other FinaruyRg Sources (Uses), " .;¢7,681 -" (3,001,311) ■ Excess (Deficiency) or'Revettyes and Other Sources Over (Under3 - ■ Expenditures and Other Uses; ,x,643,072 254,335 18,162 ( 9,885) 18 (2,019,330) 85,402 Fund Balances (Deficits), July 1 5,290 257 -, i 397,826. 126,262 ' 1 <39,885 8,246,264 460,889 ■ Fund Balances (Deficits), June 30 $ 5,933,329 $ 652,161 $ 142,424 $ - $ 6,226,934 $ 547,291 See Accompanying Audftors' Report. ■ ■ ■ ■ 5o ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 51 Community Suppleme'n'tal Combined Development Aokelntar� °' =Management -Environmental! e "� �'^' 'M'A Totals Transportation Block Grant C`o "paGUn DAStt � •liabtlity EhforcMneirf . ,., Grants— 1998 $ 476,421 $ 2174i,67,1,_ °= $ 2,990,360 $ 850053 $ ,807,9x61 . ,. 130,102 °'= - $' "164,084 „ -_ ,80i:58' i ,� 14,814,162 20769 38,370 _ $ 57,901 443833 ,3911954 „5$ 9084' 781'..' 5,098 4,956,026 5,502,141 >485 000 '348 368 = -.: - :256;616 -3,159 85712 "8,07.,1 1:94,084• :137;383, ':' 476,421. .169782 ^- 57,901 '18;314667 ': 239,762 ` AM F 3 (11 l W se bl b s162,798 1355117 324,076 " 11 ,off 11i(��AI 254534.' �,' ,A° N " °A�+•�,'' 244696 " 2 ;1 .. "� " ": '' 623035 9380B�� 807961, "'"°373850 1,Cr,r'rl" 1811" °" 45446516 "v , • • r' w A •202 387 r,' 1 034 678 A X.'9. %:: 1, 961 242 q 1 036 360 r Y "' '� c '• ,1 13 095 072 X 1'd 763,264n IA XY 11`+ Qi. MI dhA F "1X1 �y % h2' 114694, 106755; X .,. _ .... , _ " f •4 " • A ,�1 �1 676 X °';r� 126;617 1036,,9®0 ^, 897961 202,387 ..376,850, 244,696 16°1,°ty6 35511 18,695044 .,, < v 17607,695 (181,094jL° .: •' "(8,303) (236487) {,: 231.725: ". '6,989 ,2Z,390' °� 1,619,623 699•,077 (90,000) ° .,,:` -' _'(45,000) ,, •.. ;.'. (3,236311) °..(3.744,659) (90,000) 145,000) " ' - -- (3,078 63E1} ; ` (3,744,659) �T (271,094) , °- (863Ei3)' (281,467) 231,125 6,988 22,E . (1,459,007) 2,644,418 1,887,557 180546 ,=- ,416f35Q °,u -; 383,658 116(3„ .3,59 17,554,697 14,910,279 $ 1,616,463 $ - $ 172,243 $ 144,883 $ 615,381 $ 18,599 $ 25,982 $ 16,095,690 $ 17,554,697 51 Fund Balance, Fund Balance, June CITY OF NEWPORT BEACH Statement uf Revenues, Expenditures and Changes in Fund Balance Budget and Actual State Gas Tax Special Revenue Fund For the Year Ended June 30.19S9 77 fi 77 16- 1 345-600 11,458,336 112,736 249,637 129,637 4,46§kO A,122�582 3,347,3 47 of Revenue See Accompanying Auddors' 52 1998 Actual .492.748 �&9S.13G ,J, ;4U1 � 3,986,567 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ r Revenues: Fines, fc 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, 1999 Revenues r} of dares '(381500)',, 254335 1 � f 397;§26 397;826; ... G �� "".LF`ii 4J& . @'i s. "%ri+d•.,d.4ivi.: ,560 53 H Actual .391,954 37, ■ ■ 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, 1999 ■ ■ 1999 1998 variance ,VaVerable ■ Budget , -• Actual (Urifavorali(e) Actual Revenues: ■ Licenses,e fees antl permits $ 1,189;$65 $ `' 1,136`,643 :$ (53,222) `,j' 1,095,553 Intergovernmental revenue 21554 ., .. 22,636 'Z- .1,084 ■ Charge6,6t'services 25,1100 20,789 (4,211) 38370 Fines foifeittes and penalty , 8,263 ■ Revenue from use of ■ hioney and property 4 758;450 , 4,288,319 (470,139) 4,328,411 - e, er,, =' 4-500 (1,500) 3,159 ■ r, Tofaievenues? 5 996,$69 = 5,476,644 (519,725) . 5,465,553 Fxpendjtures: " 7777 ■ , � Current °: ' j ,p c ■ Public Works 330,220 ', 263,097 67,123 303,`881 Community services ,' 861,728 832,291 . 29,437 820245 ■ Capital Outlay` ,j ,• 13`87;470 1,127,411`' 260,059 633,587 Debt,sertiice ■ Principa), 114'fi94,� 114;694' 109;755 ■ Interest epd fiscal char s gg 121 678 121,67 8 = 12' 617 ■ Total Expenditures 2'815,79-0- 2,459,171`; 356,619,. 1,994,085 ■ Excess of Revenues ` ,`,,Over Expenditures 3,180,579 _;3,017,473, (163,106) 347,11 ■ Other Financing. Uses:, .. � Operatingtratksfersout (3,690,11,5) ,(3,001,311) ~,688,804 (3,345,206) Excess (Deficrehcy) , of Revenues"Ov ®r (Under) Expenditures ■ and Other Uses 569,536) 16,162 525,698 126,262 ■ Fund Balance, July 1 126,262 126,262 Fund Balance, June 30 $ (383,274) $ 142,424 $ 525,698 $ 126,262 ■ ■ See Accompanying Auditors' Report. ■ 54 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 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, 1999 IM ;2"0$ „$ 884,839 040) ,060 'x,64,216 ,268 55 1 Buffet ;.,..;•Ftctual Revenues: Intergovernmentelrevenue _ _$ 4,041.198 $'. 6 6,368,406 _. Revenue from use bfmoney and propertj� ` 5 55 000 Contributigns55,620 1 100,580,,` °`' TotaiReventies < - h 6 6,468 986 Expenditure Capita] outlay,;, 8 8,290,635 6 6,608,871 , (access (Deficiency) o of R&erryes�= A' Over(Under)*Ex(ierrJAures ; ;(4,138,917)•`, FundYBalance'(Deficit) A V'" 1 139,885 "', 1 139885 ld FuridpBalance`(Deficit)" June, $ $ (3�99g 032) h 7 S x Yh ah iV x. "A�" x < Vx.nup " S ( IM ;2"0$ „$ 884,839 040) ,060 'x,64,216 ,268 55 1 yn 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, 1999 1999 1998 anance " = Favorable Budgeti Actual _ (Unfavorable), Actual Revenues: Licenses, fees and "`permits m $` , 300;000 , $ '` 630,484 $ 330.484' $ 1:,267,854 Revenue46M use of money^4rid property ', 400,000 364,140° (35.851') . 592;368 Cora 66tions =' 62,788 Total Revenues 700;000 ! 1,057,421 294,633 1,860,222 -; Expenditures: Gurrent;, -,, - ' Public works 315,242' `- '(315,242} "i± 633,927 apital Outlay ' rs '° 4,442',6 2,761,50$ p1,681,183 , 1,576,918 Total" Expenditures ", 4,442,692 3,076,751' 1,365,941 2,210;845 k' . , , Deficiency of kdvenues ,`•r ' r rEzp 3742 fUnde 19,330) 1,723,362 (350,623) r ly Z .. fund Balance„July,1 8246,264 8,246,264 8,596,887 fund Balance, June 30, $ 4,503,$72 $': 6,226,934 $ 1,723,362 $ 8,246,264 • See Ai rompanying Auditors` Report ." 56 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Building Excise Tax Special Revenue Fund For the Year Ended June 30, 1999 Fund Fund See) ri Other l , July 1 gyres o JuneM Mors Rep.brt.-'61 Actual 385,551 57 1-�L 522,721 ' °317,721 *11 7 342875. , "96 (574 194) 86402'4i, "Z 660,596 alt 660,596 235 57 1-�L Revenues: Intergove Revenue money, Fund Balance, July 1 Fund Bile nce, June 30 See 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, 1999 1998 Actual $ 11,955,497 98,489 11,40 1999 Variance- 094) �A Favorable Budget Actual e tln avorable) r(, (: e $ 2;199;019 '' $ 850,053 $ (1,348,966) 44,406', "'7,233 (32-,767) Revenues 239;019 857,286 ,. (1,381,733)., d'itures - 2,802;477` 1,038,380 1,7",097'' {853,458) (2T1 -094) 1998 Actual $ 11,955,497 98,489 11,40 58 ,557 094) 382,364 65 (90000),`; (90000) (8 Revenues `, ` d'itures - {853,458) (2T1 -094) 382,364. 56 1,887,557 :. 1,88 557. ,. . - 1,32 382,364 $ °',1,88 Report. 58 ,557 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 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, 1999 Revenues Intergovernret taI reveriue 9 -1;021',569 (438,669) I + (Deficit), 310 (nce pJufie A NV anying Audrf6W Report 59 1998 Actual 175 7 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, 1999 . 1999 1998 variance Favorable Bupget t Actual (Unfavorable); Actual venues, Revehtie from useV money arrd property `$` 9,D84 $ 9,084 " $4;C 6 Contribution's 8s,A00 185,000 185,400, Total Revenues 185000 194,084 9,084 199,666 cpenditures Current[ nity Commu,services 240000 i 202,381 ;37,613 140,997 ■ Excess (Deficiency ■ of Revenues Over ,,. ,(Under)'Expehddures (55'000) '" (8`303) 46,697 58,669 tlp! mdBalance`July.lu 180,546 121 }877 ind Balance, June 30 $ 125,546' $ 172,243 $, `. 46,697 $ 180;546 ■ Accompanying Au itors' Report • 60 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 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, 1999 eB,udgef" Actual (t) favorable: Revenuestt Intergovrnrriental revenue $ 351,090- $ 13D,102 $" ,' "55,1,02 Reventte#`rom use of money and ptoperty 5,009 7,281 total Revenues. 80,00, 137,983 57,383. Expenditures Current•= ^e Community devefdpment 408,862 373;8,50 35,01Ta �M e F i n •.. Ya is Y ,' tail Ez¢e5s (Deficiency),of :key enues „p Over (undef),Expenditures ,(328,862)•, (236 467) 92,395 v;Other Financing Uses,. Operating trans€ers`;'ogVi ' ;'` „ "(35 000) . (45 000 "° :, Excess "(Deficiency) of ReVenuea "' Over (under),Experitiitru'es and Other Uses Fu #d Balance, July 1 426,350, :; , 426;330 Fund 8s4 rtce June 30 $ - ”- 62,488 $ 144;883 $ _ 82;395' See Accompanying fiuditors Report. 61 1998 Actual 1 Revenues: Licenses, fees Current: CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Environmental Liability Special Revenue Fund For the Year Ended June 30, 1999 July 1 June 1998 CA Budget - °Actual (Unfavorable). ,_ Actual nits $. ' 275,000 '`$ 476,421, $, 201,421 1241,402 306,290 244,696— ,61,594 1) of itures (31;290}'•' 231,725 263;015 241,402 I` V 383x656- 8&. 3656 �5' 1421254 CA ■ ■ ■ ■ ■ ■ ■ ■ ■ Revenues: ■ IntergovE ■ Revenue money ■ 7crtc ■ ExpenditutE "I i ■ Publtc;S „pt; " €x0 ■ 01 ,a ■ ■ Othei"Finan Opgratin ■ ■ Fund Balari` ■ Fund Balan ■ See Accom ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Supplemental Law Enforcement For the Year Ended June 30, 1999 of Other Uses July 1 e'Bu6�et 5, 161.592 169; 162,227 162; (635). i 63 2;492 elj _ 35,098 ,621 1998 Actual 161,592 1 (11 3,747 ,613 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Miscellaneous Grants For the Year Ended June 30, 1999 Revenues: Fines, for Revenue money safety ` ce, July 1 See 1998 ,. Budget -1 °' "; Actual (lJnfavorahl ) Actual mnalties .,$ 57,901 $ 57,901 ` $ 1,895 " - : 67901 << €57,901 35,511 $'`: 22,390 48,274. ; tpres2,390 2230 4< (46,379) ' 3,592 3,592 49,971 25,,982 $ 22,300' 64 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ AIR A--VW�'- ■ ■ ■ CAPITAL PROJECTS FUNDS ■ ■ Capital Projects Funds are used to account for resources used for the acquisition and construction of capital facilities by the City, except those financed by ■ Enterprise Funds. City of Newport Beach Capital Projects Funds are as follows: ■ ■ The Assessment District Fund is used to account for the receipt and expenditure of funds received from 1911 Act and 1915 Act Assessment Districts for capital ■ improvement projects. ■ The C10SA Construction Fund is used to account for the receipt and expenditure of ■ funds for the Circulation Improvement and Open Space Agreement (CIOSA). The improvements include street and frontage improvements. ■ The Bonita Canyon Development Fund is used to account for the receipt and ■ expenditure of funds for the Bonita Canyon Public Facilities Agreement. The ■ improvements include certain public parks and recreation facilities, and street improvements and facilities. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 65 1 'A p yV:�: 5 V1A, paA 1 3 3 1 i'e 3 1� V.A V YAVS'... M11 AI'. A 1.AAA.i 1 A V( tl 1 A r ,p N1.ryA This page left blank interitionally ,hb p Y 1 r�AAr dh� v:Me 1 � Etl it �M1 ,n, SaAh ra., f k Y iii t er f'., 3 h Y.4i it Ph t �pyA A" r F 9 n ih ti 1 A i" 1 A f 4 SCI 1 vl9 tl a T..,� 9.Ih 1 rt •.: °i 65 CITY OF NEWPORT BEACH Combining Balance Sheet All Capital Projects Funds June 30,1999 Total Fund Bal Total Liabilities Hances I accrued liabilities $ ` Assessment CIOSA Bonita Canyon Totals :. 462,117 District Construction Development 1999 1998 Assets 63;261 6,311 - 3,600 `.73,172= 462,117 Cash and investments .,a$= ,'193,644 ";$ '.918,140 = -- $ 1,031,784 $ 1,669,165 Accounts receivable and accrued revenues - �, -524'—' - 5,891;691 524 525 Restricted assets -cash and investrnenta- c',. ^j 388 $ 6,{04,25 §,: 6,104,646 6,009,555 Total Assets - $ 114,168 , $ ' 918,528 $ ,; 6,104,258 '$ ,x;136,954 $ 7,679,245 Total Fund Bal Total Liabilities Hances I accrued liabilities $ ` 63;261 $_:: 6,311 $ 69.572 ?$ :. 462,117 $ 3,600 3 600 63;261 6,311 - 3,600 `.73,172= 462,117 ances 501907 228,935 = 332,267 612,109 5,891;691 ialprbjacts 683,282 5,768,391 6,451,673 1,325,437 anated:','i arlces.` 50,907 912,217;: 6;700,658 7,063782 ' 7,217,128 and Fund Balances - $ 1'14,168 X918,528 $ 6,104,258 $ 7,136,954 � S $ 7,679,245 ors Rs 60 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, 1999 Assessment Bonita Canyon Totals Develoument 1999 1998 $ 395,438 $ 329,951 30577,, 712 92,954 923,085 3&440.979, 3288;292 1,253,036 Fund Fund Seel 30 ,e 31,441,738:: (153,346) 67 1,552,821 (299,785) ,7,55$,913 $ 7 211`x;128 pt rd. f ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ :'This page leftblank intentionally. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 68 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ to ■ ■ ■ ENTERPRISE FUNDS ■ ■ Enterprise Funds are used to account for City operations that are financed and ■ operated in a manner similar to private business enterprises. The objective of segregating activities of this type is to identify the costs of providing the ■ services, and to finance them through user charges. City of Newport Beach Enterprise funds are those listed below: ■ ■ The Cannery Village Parking Fund is used to account for the revenues and expenses ■ of operating the Cannery Village parking facility. ■ The Water Fund is used to account for the activities associated with the transmission and distribution of potable water by the City to its users. ■ The Wastewater Fund is used to account for the activities associated with providing ■ sewer services by the City to its users. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ •n I " page left blank intentionally:,, ;r' ,"lit !l , a , itsr w •n I Assets Current Assets: Cash and investr Accounts receive Restricted asseti CITY OF NEWPORT BEACH Combining Balance Sheet All Enterprise Funds June 30, 1999 Cannery Village Parking Water Wastewater ants $ .` 6,159,166 $ 1,925,841 le; �ndaccrued revenues) 3,709,214 642,816 'cash "and investments, 1;460 896 Assets 13,329;276 -, 2,568,657 $ 1,039,163 2,016,450 1,07,471 65,718,762 34,539,103 627,374. 43,797 in progress 680;026 .! 9cation (48,093) (25,833,624) (23,059,209) .�Ya ... .1 AItCGIA IA NC[f lflll AA G15.CAA Total Liabilities: Fund Equity: See Accompanying Auditors' Report. Y1l1 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ r ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Totals 1999 1998 10,085,007 4,352,030 1.460.896 1 71.731 3,234,508 `Sq28, 3111, 3,200,000 o"m845"000 71,731,153 71 uss e water CITY OF NEWPORT BEACH 6.- wages Combining Statement of Revenues, Expenses 835,627 and Changes in Retained Earnings 776,122 services All Enterprise Funds 303,185 and:supplies For the Year Ended June 30, 1999 345,678 Cannery Village Parki!22 Water Wastewater Operating Revenues: Charges for services "$ 17;168;348 $' ::2,891,443 Contributions 416,500 Other $ .. 0,015' `- 105255 Total Operating Revenues ^: ;901015 17,273,601 3,307,943 uss e water - 975;890 6.- wages 330;322 835,627 4;251_ 776,122 services 1,429,365 303,185 and:supplies 527;238 345,678 ivenues,(Exp'enses) 384;475 79,479 27,742 issets 1;337 3 (593,469) (578';091) Other Income Befc Operating out,,- (Loss) Retained Retained Earnings, See Accompanying Auditors' 72 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 73 Totals 1999 1998 $ 20,059,789 $ 18 598407; 416,500 29 50R�`•- 195,270 2&7 °354 20,671,559 ',18,895,261 4,976;$90' 4,9'0 040 3,155s949 2,940,037' 2 15 640-," 2 190 092'• 1,732,550• „af 1 738 214, °= ''872,916 ` 994„124`: 1,86$;542 3'2447;804, 1,1, §0,633' 9555,860 °, 15,95090 :,10,218;111; 4,713,4692 677 090 „: u• ” y " i naF ";. , °• i "u °i3 r� a ^rp'"n9 A,. 1463,954, " 6011941, a a a , a 27,742 1IV,' 29 412=° nr , a^,., , "r ^ t `1;337" "i ,.., i a qy "1 + *a� a ^ „• o (593,469} ," �i� (7$4390)' a �” (1;92, (680;447) (158,230) ,4033,022 2,5i�,854 (138;%i01j�e 4-633,022 2 379 -753 35,459,725 , • „33,079,973'. $ 39,492,748 $ s A469,7,26 ; 73 CITY OF NEWPORT BEACH Combining Statement of Cash Flows - All Enterprise Funds For the Year Ended June 30, 1999 Cash flows from operating activities Operating income (loss) Adjustments to reconcile operating to net cash provided by operating Depreciation Otherrevenue Changes in , perating assets (Increase)decreasein Net ca Cash flows from As and supplit (decrease) in (decrease) in Cannery Village Parking Water Wastewater $ , 85;716.. $ 4,756,446 $ (128,693) Income. 'icl*l,es:` 9 1 1,371;2,19 _�_ 7 776,122 27,742 land related ut b related . a nt 1 448 772 345 194 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ sse Proceeds from reveriuebdndrefunding 14,118,780 . Cost ofI ssuance a (158,184) , Payment „torefunded. bond escrow agent (15,223,909) Probeeds from ,We'of capital assets 1,338 ■ Trustee fees (750) Interest paid (343,330) Net.ash used for capital ;. and related financing activities (3;053,827) (345,194) ■ Cash flows from investing, activities: Interest on investments `384,475 79,479 ■ Net increase (decrease) in cash ■ „and cash equivalents -.�� .,_ 1,867,973 . 467,744 Cash and oast"&equivalents, July.t - - -- 7,752,089 1,456,097 Cash and cash,equivalents,June 30 ` $ $ --.9,620,062 $ ` '1,925,841 Noncash ActiAes:; Contributed capital , e ..' $ $ ” $ . Capitalized interest _ $ _$ , $ See Accompanying Auditors' Report. ` ■ ■ ■ ■ ■ 74 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Totals 1999 1998 $ 4,713,469 $ 2,677,090 2,151,640 27,742 14,119, (15,223, 717 11 (s,sos,ass) e' ,y { A AYp 'r t; is 1 � e 75 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ • ■ s ■ This page left blank intentionally. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 76 ■ ■ i �� _�� \/� \ 77 ■ ■ CITY OF NEWPORT BEACH ■ Combining Balance Sheet All Internal Service Funds June 30, 1999 ■ ■ Insurance Totals Assets Reserve Equipment 1999 1998 ■ Current Assets: Cash and investments 792,428 $ 5.35 181 _ $ 1,327,609 $ 662,245 ■ Accrued revenue 3 001 3,001 8,024 Inventories of materials arid; ■ supplies, at cost "72,276 72;276 30,597 ■ Total Current Assets 792,428 610,458 1,402 ;886: 700,866 Fixed Assets: ■ Equipment., . 11,416,582 11,416,582 - 11,154,336 Accumulated "depreciation (5,590,144)• {5,590,144) (5,110,773) . Net Fixed Assets 5.826,438 5,826,438 6,043,563 ■ Total Assets $ 792,428 $ 6,436,896 $ 7,229,324 $ 6,744,429 ^Equity ■ Liabilities and Fund :, ■ Current Liabilities: Aceount5;payable and accrued liabilities ' , $ 47;209 $ 163,46' 7 1.22,980 $: 210,676. $ 272,741 ■ Atxrued payroll: 82;852 ;;, 105,832 42,652 Due to otfier hinds 66,742 . Capitalieases -- current 403,352 454,475 Workers' compensation current 1,800,000; 1,800,000 2,100,0 ■ General habili ty -- current , '. 1;420,000% 1,420,000 1,200,000 Compensatedabsences— current 1000,000; 1,000;000 1000;000 ■ Total Current L'iablkties -,. 050,061: 589,799 ,,; ! .4,939,860 5,136,61'0 Noncurrent Liabilities. . - Capital Lasso- 5 35,816 , :: : 535,818 834,894 Workers' compensation' 3,917,362 ' 8,917,362 3,801;077 ■ General liability 3,128,703 3,128,703 2,651,196 Compensated absences 5,920,51;1 5,920,511 5,970,377 ■ Total:Noncurrent Liabilities• 12,966,576= 535,616 :: ` 13,502,392 13,257,544 Tow:L[abilities 17,3116,637 1 1,125,615 ' 18,442,252 18,394,154 ■ Fund Equity ■ Contributed Cap , 4,097,648 4,097,648 Retained Earnings *,wmulated•Defidt) (76,524 2,08) 1.213,633 :- (15,310576) ' (15,747,373) ■ Total Fund Equity 06,524,209) 5,811,281 (11,212;928) (11,649,725) = ■ Total Liabilities and Fund-, Equity , . $v 792,428 $ , 6,436 896 $ =- 7,229,324 $ 6,744,429 • See Accompanying Auditors' Report. ■ ■ ■ ■ ■ 78 ■ CITY OF NEWPORT BEACH Combining Statement of Revenues, Expenses and Changes in Retained Earnings All Internal Service Funds For the Year Ended June 30, 1999 i"P.] Insurance Totals Reserve Equipment 1999 1998 Operating Revenues: Charges for services $ 5 437 ��fj7 $ 3�5 7 858 e 7$ 8,949,165 $ . 7,812,546 Licenses, fees and permits ° . 1,919 Other - "�' 37,060_._ e -_ 37,060 10,810 Total Operatmg Aeventres e'_ "5,+174,567 3511,658 8986" 7,825,275 Operating Expenses Salaries and. ° , 904 66.7 904,867 863,903 Depreciatwr)_ 1,2}44,117 1,244;117 1,229,505 Professwrial services 34,272. °:.' 34,272 Maintpq -,and supplies „$09,76$: " °;. 809,766 °481,546 Fleetpertsend stippf6s 350,326 ' ,. 350,326 :51 ,446 Work rs'Comper)sahoty 929,622 929,622 2,j36489 Claims and judgments 2,898,530 2;8986,30 269 ta82 Dlsg6ility 82262 82,262 ° 79,807 Oompensated�absence8 1,129,40 1,11,29,406 ^,TotalOperetingExpens 5039,820 31343148; "a 8,382968 9' X91354 OperahrRgrincome'(I _ oss) '} 603,25 "1;(1310 l5,'� ^t'i,gd 434,747 ,16851D` Nonoperatmg Revenues (Expenses) 1,6Jntergovemmentalrevefibe. 160 " "`q 164 "+ 4a *;, "1 3841 Interesf income °" w s" 2015118 31 660 52,178 66 "81$y 1 ;fGain on sale of fixed ^ 1'62 "556 6' 102,556 9 t 47 "794 ",d 1nt6resfexp"ens Ixa' "" ��t "� " P1,i54) (152 „139 °Totaj Nonoperatmg Revenues 20;518 ° 83 140 (37,946) Income °(toss) Before =° 5 ',:Operating Transfers °. - 45$,265 231,532 686,797 (134,902) Operating -transfers: Operdhngefransfers in 1115,969 Operehoglsfers out (250,000) ° °(288,232) Totat ope.[9 ing tran}#e- rs 00 1 ,317,737 0)20 Net IncomeI .oTIs) 455,28 5 (18 468) 436,797 (29,565) Retained Earnings (Aauirp. ated Deficit), July 1 x;(16,99,474) ;1,232;101 73) (15,717,808) Retained Earnings (Accumulated Deficit), June 30 $1G 524 209} $ 1,213633 °° $ ` (15,310,576) $ (15,747,373) See Accompanying Auditors' Report. i"P.] CITY OF NEWPORT BEACH Combining Statement of Cash Flows - All Internal Service Funds For the Year Ended June 30, 1999 Cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income to net cash provided by operating activiti Depreciation Intergovernmental revenue Changes in operating assefiimd-llbbl (increase) decrease in awed rev (Increase) decrease in inventories i and supplies, at cost Increase (d6cre'aaa) in accotmilspa Increase ( decrease) in accrued pa) ( Increase) decrease in due to other (Increase) decrease in workers' cor from Insurance Reserve Equipment ■ ■ ■ ■ 1999 Totals 1998 ■ $ 434,747 $ 168,510 $ 603,257 $ (1.310.157) ■ 1,244117.. 1,244,117 1,229,505 160 160 384 5,022 5,022 (8,024) Operating transfe;i'iromo'ther;furids, 1,605,969 60erating transfers to oiheirfunds (260,000) (288232) Net cash provided 6i( used for) n6ricapital financing activities (2*000) (250,000), +, 1,317737 Ciirsihfows fro m capital and related financing activities: ^, , (1,008;216) (1,08.216) (1426,739) •SlAcquisdlonof,capitalassets Principal payment (483.644) (483,644) 594j946 t Proceeds fromksal ofcaoltal'assiats k 221 :2117.224 155757 Interest paid ;21,7 (�k1:3 (71,354) (1 Nefcash used fbrcapital ,and related flhancind'activities. (1,345,99Q) (2,618A67) Cash flows from investing activities: kritaiiist on I rivistments"', 20,518 31,660 52,178 68,816 cash provided by investing activities 31,666: 52,178 66,816 Net ncrease (decrease) in cash '•460ash equivalents 792,428, (1:21,064) 665,364 (506,353) Cash and cash equivalents, July I 662,245 662,245:,::::: 1,168,598 Cash and cash equiNalents, June 30 792,428 535,181 $ 1,327,609. $ 662,245 Noncash Activities,'," .. .... . Acquisition of d4piorinient by capital leases $ 133,443 L_133 443 $ 667,215 See Accompanying Auclit64-'" 80 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ AGENCY FUNDS ■ ■ Agency Funds are used to account for assets held by the City in a trustee / capacity, or as an agent for other government entities, private organizations, or individuals. City of Newport Beach Trust and Agency Funds are listed below: ■ ■ The Special Assessment Fund is used to account for funds received from affected ■ property owners and payable to holders of 1911 Act, 1915 Act and other special assessment bonds. ■ The Special Deposit Fund is used to account for special deposits held by the City in ■ its fiduciary capacity. ■ The Business Improvement District Fund is used to account for monies collected ■ from local business districts for district property improvements and business enhancement. ■ ■ ■ ■ ■ / ■ ■ ■ ■ ■ / / ■ ■ ■ ■ ■ 81 ■ ■ CITY OF NEWPORT BEACH ■ Combining Balance Sheet All Agency Funds ■ June 30,1999 ■ Special Special Business Assessment Deposit Improv. Dist. Totals ■ Fund Fund - Fund 1999 1998 ■ Assets: Cash and investments $ 1' '&r6&'943'' $ 2,747,792 $ 73,879 '$ .8,444,614 $ 8,221,676 ■ Restricted assets cash and investments 1,707,354 1,707,354 1,712,869 ■ Total Assets $ 71330;297 $ 2,747,792 $ 73,879 $ 10,151,968 $ 9,934,545 ■ Liabilities: Due to bondholders '> $ 7,330,297 ` • , $ 7,330,297 $ 7,365,256 ■ Due to-others $ ': 2,747;792 $ 73,879 2,821,671 2,569,289 ■ Total Liabilities $" 7,330,297: $ ` 2;747,792 $ 73,879 $ 10,151,968 ` $ 9,934,545 ■ See AceomparryingAuditors' Report. ■ ■ e ■ ■ ■ ■ ■ ■ ■ ■ ■ 82 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Special Assessment Assets Cash and invest Restricted asses and investme CITY OF NEWPORT BEACH Combining Statement of Changes in Assets and Liabilities All Agency Funds For the Year Ended June 30, 1999 Balance June 30, 1998 Additions Deductions $, ` 2-!488,955 $= 297,583 (36 !(36 $ :12,486;955 $ `„ 297,583 " r•, t V N 114615:" $ (123 y h '•�. f 1 AI'.. - .82,334 ' t"$ ' 144,ti15�� $ x(23 $ 8,221,676 $ 1942596: $, (1,719 1.712.869'T . a 80.178 Liabilities Due to bondholders $ ;"f 306,2, Due to others 56i;2t99`3 Total Liabilities $ 9,934,545 See Accompanying Auditors' Report. 83 Balance June 30, 1999 $ 5,622,943 1.707.354 747 $ ;- 00444,614 A 707 354 $ `10,151,968 578r= $ (1~645,535) $ 7,330,297 1 (159,816) 2,821,671 774 $ (1,805,351) $ 10,151,968 84 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ IN IN ■ ■ ■ ■ ■ ■ IN ■ ■ ■ This page left blank intentionally. 84 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ IN IN ■ ■ ■ ■ ■ ■ IN ■ ■ ■ 0 gu I /mRa K inie,ni,ion ■ / ■ ■ CITY OF NEWPORT BEACH ■ Comparative Schedule of General Fixed Assets June 30, 1999 ■ ■ 1999 1998 General Fixed Assets ■ Land $ 27,948;681 $ 27,698,922 ■ Structures 42,71,816 42,307,827 ■ Equipment _ _12,099;459 12,220,165 ■ Totat General Fixed Assets $ 82,258 -,956 $ 82,226,914 ■ Investment in General Fixed Assets $ 82,758,956 $ 82,226;914 'Total ■ lnvestmentin'F,ix'dASSets' $ 82,758;956 $ 82,226;914 ■ ■ " Sources are not readily,available.', , a ■ SxAccompanymg'Auditors' Report: ee az•� .v p a p. X ■ ¢ fi a, t FL 1 ■ F nxa v s 0 ■ t ■ ■ ■ ■ ■ ■ ■ ■ 86 CITY OF NEWPORT BEACH General Long -Term Debt Account Group Comparative Schedule of General Long -Term Debt June 30, 1999 1999 Amount Available and to be Provided for the Payment of General Long -Term Debt Amount available in debt $e�nce fuhd' $ Amount to be praVded; `the payment . of general loAgtterm debt= - $ General Long -Term Debt Payable certificates of'participation payable Note payable;. ' Captalized=leases . ,r See Ac`companymg Autlrtors" Report , �u"rx. xi � ne »trmn�£k4ry i + a1� is , + r ICY �q, n k5 941 t'6 Yex � 1998 $ 579,814 T y Lij ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Statistical Section ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ r ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Miscellaneous Statistics June 30, 1999 General Information Date of Incorportation ........................ ............................... Form of Government ............................................... - ........ Population Permanent........ Summer ........... Tourist .. Housing units.: Area Harbor Total V Newport Harbor Boats ................. ..... .......:: .......... ........ 9,000 Residential .......................... Commercial Slips and Side Bay Moorings ..................... per dwel -4ng unit ............ ...........................1906 ......................... Council- Manager ................. 74,000 100,000 20,000 61-11-B ;Q00 per day x_36,807 ..... 2.207 Acres 9, ISS: 1.2,800'0' 23,260.81 • n Y S y li �f, V � G acrer •. ' • • • 5 x'8.08 m, tr Acres 12800 Y i x ..1 A , .;.1,306. _ ...156 224 :...............14.465 35.94 43.15 ... ......................1,230 F ............................ 2,119 ....................... ..........................1,221 Public Safety Police Fire & Marine Numberof Stations ................................................... 1..................................... ............................... 8 Number of Personnel ............... ............................... 216... ............................... ............................126 Unaudited — See Accompanying Auditors' Report. m ■ ■ Governmental Revenues by Source (1) ■ (Last Ten Fiscal Yens) ■ Fines, Licenses, Inter- Charges Forfeitures Revenue from ■ Fiscal Fees and governmental for and Use of Money Year Taxes Permits Revenue Services Penalties and Property Other Total `j • 1989 -1990 1 38,389,789 $ 2,653,730 $ i6537544 $!! 4899,976 $ ;3 76,570. $,..:.9,766,006 $ 2,441,088 8 78,064,697 1990 -1991 40,479,735 2,808,174 =- .11,029,004 3,466,023 31114,983 9999,416. 3,555,699 74,452,539 1991 -1992 40,466,232 196304d 10819,561 4609,812 ' 3,053,246 9611524 = 2,722,037 73,185,456 ■ 1992 -1993 38471775-= 2,006,805 7,621,643 - 4,703,200 1;582969 9,469,060 - `1031526 65,886,978 - 1993 -1994 39809139--= ` 2,247,233 -: -. 8,993,289 '- 5,077,369. - 2,706,194 _ 8;660,599 1,8411189 -. 69,335,012 1994 -1995 39719,830 2,409,523 10,704,000 :. 5,109,513 3,156,530 9,676,426 - 1,089,385' - -- 71,865,207 ■ 1995-1996 t 42,853,480:= ` 4851,571 8,315,543 6,278,416 2;855,063 11,000,272 6,540,913 82,695,258 ■ 19961997 - 44523,935- - a'4,081;509 •. 118'714&` '. 7,185,210 2,529,015 10,497,715 '10,208,241 90,8971042 1997-1 49,385,380 7,303,302., 19,656,742 ' 8,314,830 2573;575 11,422,977 1,593,409 100,2wls 1998199'1 '- 55,(45,578=` 2938,425. •15,189,324 ` 8,779,962 '. ", 3,290,019 10;666,337 - 3186469/ 4 128,374,%44 ■ �. Incfides General, Special Revenue Debt Service and Capital °Projects Funds. r(1) tFP4Y Sf Si 5 F. '. }5 F nM A y '. WOW, Governmental Expenditures by Function (1) a .y f Y xt3.6:m�.'x,.. (Las[ Ten Fiscal Years) j A tlwh tl r ■ fL y�i , ., yl Fiscal a > General x Public i , ,•PubbcCommuntry, : Community Capital Debt =' ., Year <Govemmmt Safety Works Development ,Services Outlay Se[mce T601, t ■ 19891990 $ _ "• 5,36559 $ 26,729,452 13117,444'$ 2,873,185, $ ^6,609,717 :$•, 23;671,143'f 78,106,200 ■ 1990.1991 5,274,572 26,911;630 - 14,456,890' 2,973,750 7,283,300 18,768,787 75,468,929 ■ 1991 -1992 2937,016 30,987,4121+ •, 12,372,598 3,411,623 =_ 8,869;639 ,:16,034084 t74,612,372 ■ 1992 -1993 4 359,857, 31,209,589 12,779,215 3,636,092 -' , � 8;529758 12,220,226 $ 1,155,407. i(2):_ -- 73,881,144 1993 -1994 4607,gOg- 32330,338 < ; 15,018,898 < - 3,406,712. 5;910,752 - 13 6 05,703 1,175,175= 76,054,587 ■ 1994 -1995 5,505,610f = '33,389,922 14,661,343, 3 336,672 5,857;959. ' ;, 8,523,773 - . 1,550;294 72,825,573 1995 -1996 5,442862 34571;271 14,779,614 7-1 ?" 2952247 5,916,194 11,291759 _ -- 1,069,045 76,022,994 ■ 1996 -1997 5,673,321 35,647g7h7 15,50,2 095 3,329,545 6,585,335 :.20,696,487` 890,609 88,324,639 1997 -1998 6,790,020 39,168,311 16539275„ 3475,948 -r. = ''619161999—;' 70,,849,681 1,299,284 95,079,568 1998 -1999 7,471,850 40,514,411 16,846,674 4,688087- " '' 7,733,720 50,684,045 1,252,111 129,190,898 ■ (1) Includes General, Special Revenue, Capital Projects and Debt Service Funds. ■ (2) Historical data for Debt Service expmdimres is unavailable prior to fiscal year 1992-93. Source: City Administrative Services Department ■ Unaudited -See Accompanying Auditors' Report r 90 ■ ■ ■ ■ ■ ■ ■ ■ ■ w ■ ■ ■ ■ ■ ■ $140 $120 $100 �a p0 $80 w O C$60 $40 $20 $0 Governmental Revenues and Expenditures (Last Ten Fiscal Years) SW -: ' 6% 4% Unaudited -See Accompanying Auditors' Report. 13% 91 for -;Public Safety PPublic Works ®Community Development ■Culture and Recreation • Capital Outlay • Debt Service 1994 -1995 17;178,202789 Assessed and Estimated Actual Value of Taxable Property 656,344;530 11,864,902,139 (Last Ten Fiscal Years) leg 3 725,943,222 It 8114,599,524 1996 -1997 -'° 11,154,286,162 -354,820 Total Fiscal Secured Public Unsecured Assessed & Estimated Year Valuation Utility Valuation Valuation 1989 -1990 $ 9,120,361,600 $ 575,220 (1) $ 776,287,650 $ 9,897,224,470 1990 -1991 10,013,611,946 575,220 (1) 894,906,739 10,909,093,905 1991 -1992 10,583,498,762 .' ,354,820 1 }`- , - ,..1,010,317,328 11,594,170,910 1992 -1993 11,182,809,05i2 ". 354,820 (]) 893 375,850,,. 12,076,539,722 7993 -1994 11,179ZT,032 354,820 S(1)r: 865,424;090 12,045,049,942 1994 -1995 17;178,202789 ' 354,820'(1) 656,344;530 11,864,902,139 1995 -1996 111078,30I,482- leg 3 725,943,222 It 8114,599,524 1996 -1997 -'° 11,154,286,162 -354,820 (1)- 754,892,821 11 909'533,803 T-10199 $ X11,551 641 354,820 (1) 778,209;144 12,330265,468 1998 =7999 - 12,343. 526;263 ` 354,820 (1) 1,009,975297 - 73,353,856;380 (1) Effec6ve`FYz.1988 89 Itybh4 utility ;aloes have decreased due to AB2890 and AB454 transferring 21,512,836 _ flies ublic utility value to;a-county,wideaax rate area. "_ 1113;950 - red Properly Tax ir»sl Stoic Budget Proccss. 1991 -7"i92 21,516,6471 21,255;177 1992 -1993 = 18,859,889 (]) - `r.. 18,508,590 1993 -1994 ti. 17,8701;028 ' "(1) _< '17,131;159 e. 1994 -1995 = ` - 17,730237 ,. (1), 17,105,142 (2)' 1995 -1996 17 8431233 (1) 17,432,840 - - 1996 -1997- 20563,561 20,096,688 1997 -1998 21,144,504 '30,472,716 1998 -1999 22,738,432 22,084,9101 ' (1) Lffective FY92/93- FY95/96, Orange County reduced Seeu (2) Funds were withheld due to the Ormtge County Bankruptcy. Source: County of Orange Auditor - Controller's Office lhtaudiled -Scc Accompanying Auditors' Report. ax Levies and Collections en Fiscal Years)�F; - Percent Delinqucoti , °!¢of' 'of Levy Tax Total . -Call Collected Collecnoris; Collections : Tot Secured Property`,Z 3 x. 1, , (Lastfi leg 3 504;000:= Totali, '. . 98.14%' s a "Current - „ 19,396 649 =" - 95.870/4' 1991 -7"i92 21,516,6471 21,255;177 1992 -1993 = 18,859,889 (]) - `r.. 18,508,590 1993 -1994 ti. 17,8701;028 ' "(1) _< '17,131;159 e. 1994 -1995 = ` - 17,730237 ,. (1), 17,105,142 (2)' 1995 -1996 17 8431233 (1) 17,432,840 - - 1996 -1997- 20563,561 20,096,688 1997 -1998 21,144,504 '30,472,716 1998 -1999 22,738,432 22,084,9101 ' (1) Lffective FY92/93- FY95/96, Orange County reduced Seeu (2) Funds were withheld due to the Ormtge County Bankruptcy. Source: County of Orange Auditor - Controller's Office lhtaudiled -Scc Accompanying Auditors' Report. ax Levies and Collections en Fiscal Years)�F; - Percent Delinqucoti , °!¢of' 'of Levy Tax Total . -Call Collected Collecnoris; Collections : Tot 94.45% 433;571 - 20,296,669 98.78% 504;000:= 21,759,177 . 98.14%' ` 53b;760 19,396 649 =" - 95.870/4' 526,025 ' 96.476/. 409;355 - -- (2) 17,514,497 -' °97.70°/. 368,913 .77801;753 9773 %' 897,6701: `20994,358 96.820/. 1,040,720 �� 21,512,836 _ 197136/5 "_ 1113;950 23,198,860 red Properly Tax Levy as a result of the Stoic Budget Proccss. 92 % 102.85% 98.81% 98.78% 99.77% 102.09% 101.74% 102.02% ■ ■ ■ ■ r ■ i ■ r ■ ■ ■ r r r ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ r ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ $13,500 $12,000 c $10,500 0 0 c $9,000 $7,500 c 0 M $6,000 d � $4,500 qN � $3,000 $1,500 $0 $25,000 m $20,000 0 0 0 D m $15,000 N O N $10,000 a! 0 U c $5,000 f $0 Total Assessed Valuation /Property Tax Collections (Last Ten Fiscal Years) 1989 -90 1990 -91 1991 -92 1992 -93 1993 -94 1994 -95 1995 -96 1996 -97 1997 -98 1998 -99 T.otal.Property. Tax Collections /Delinquencies (Last Ten Fiscal Years) . $25,000 $20,000 $15,000 $10,000 $5,000 $0 1989 -90 1990 -91 1991 -92 1992 -93 1993 -94 1994 -95 1995 -96 1996 -97 1997 -98 1998 -99 Unaudited -See Accompanying Auditors' Report. 93 $1,000 w 6 0 0 $800 c d D c 2 $600 O m $400 tj c v c $200 v 0 $0 0 v 0 a c m 'o t t- c 0 u 0 U A H f n 2 a. ■ Construction Activity (Last Ten Fiscal Years) ■ Fiscal Building Permits Percentage Estimated Percentage Year Issued Change Valuation Change r 1989 -1990 8,800 -4.64% $ 118,087,775 - 39.33% 1990 -1991 7,600 - 1164% 110,5001000 -6.43% r 1991 -1992 7,268' ': 4.37% 77,413,996 - 29.94% 1992 -1993 7,251 -0.23% 72,170,274 6.77°/0 . 1993 -1994 6,986 - 3:65 % 70,339,522 - 2.54% 1994 -1995 7,672 - 9.82% 79,691,510 ,: 1330 %, 1995. 1996 8,302 $31% 145,760,839 82.91% 1946 1997 9,085 9.43% 203,944,317 - 39.92% 1997 -1998 101332 `. 13.73% 224,507,349 10.08% 1998 =1999 11,076 16:88% 302,598,185 34.78% Source: City Building and Planning Department. x a ix Ya Bank Deposits (Last Ten Fiscal Years) "(thousands) Calendar Year Bank Deposits .'. 1989 $ 6,631,511, 1990 6,971,424 . 1991 4,331,692 ■ 1992 4,359,067 ' 1993 "" 4,582,022 • 1994 :4,193,643 1995 4,219,849 1996 3,560,374' 1997 3,251,245 1998 3,520,677 1999 data for bank deposits will not be available until 12 -31 -99 r Source: The Findley Reports on California Financial Insitutions Unaudited -See Accompanying Auditors' Report. 94 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Estimated Value of Construction /Number of Building Permits (Last Ten Fiscal Years) I :III .III 11 III �7 c_� 11 �T `may .t I I I I ark �� ..��+Y:.e!'A"' � r . .+.: _; ' r'- v✓ � R°F - . - _ __ • 111 e`P •1 •1 $8,000 $7,000 $6.000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 1989 Bank Deposits (Millions of Dollars) 1990 1991 1992 Unaudited -See Accompanying Auditors' Report. 1993 1994 1995 1996 1997 1998 Z Fiscal Year 1989 -1990 $ 1990 -1991 1991 -1992 1992 -1993 1993.1994 1994 - 1995.== Property Tax Rates -- Direct and Overlapping Governments (Per $100 of Assessed Value) (Last Ten Fiscal Years) School County County Flood County, City Metro Water Districts Improvement QM49,,1 _ ,School Levy District 0.00826 $ Si F ati �k 000821 1 Q0000 0:00063,' 1 ooboo ,= 1 00000 100000 TT004ssessed value of all rel "8c persdug property Debi rt_percentgge Total de°bt'hitut. Amount of detApgitable to debtlunrt= Legal debt margin 0.01210 $ $1 (1) The fiscal year 1999 debt limit is based on assessed value being equivalent to 100% of market value. Source: City Administrative Services Department Unaudited- See Accompanying Auditors' Report 96 Total 1.02146 1.01320 1.01050 1.01488 °3,00404 [1";60931 .4.."'y 1 1 1 • • • r r ■ ■ r ■ r ■ r 1 00000 .,_ 0.0088 1 00000 0.0089 - ":1 OQOQQ ` 000ss OOD00 ' ' 0 00$9 100000,1 00089 e 1 b 19 .t $1 (1) The fiscal year 1999 debt limit is based on assessed value being equivalent to 100% of market value. Source: City Administrative Services Department Unaudited- See Accompanying Auditors' Report 96 Total 1.02146 1.01320 1.01050 1.01488 °3,00404 [1";60931 .4.."'y 1 1 1 • • • r r ■ ■ r ■ r ■ r CITY OF NEWPORT BEACH Principal Taxpayers June 30, 1999 (1) Percentange of total securedas Unaudited -See Accompanying Source: HdL, Coren and Cone Co. 97 Schedule of Direct and Overlapping Bonded Debt June 30, 1999 1998 -99 Assessed Valuation: (after deducting $185,241,940 redevelopment incremental valuation) DIRECT AND OVERLAPPING BONDED DEBT: ■ ■ $13,447,514,553 ■ % Applicable Debt 6/30/99 N Orange County Teeter Plan Obligations 7.732 % $10,076,729 Metropolitan Water District 1.578 % 9,121,392 Newport Mesa UnifiedpScbool District Community Facilities District No. -90-1 11.283 -% 2,339,530 Irvine Unified School District 0.064` % - -= 59 Irvine Ranch Water District Improvement Districts ' 0.012- 15.257 % ' 1,919,684 City of Newport Beach Special lmprovement District No. 95 -1. -- _ 100.000 % - " - ::15,945,000 City of Newport Beach 1915 Act Bonds - -- 100' .000 -% -- 2,487,000 Orange County General Fund Obligations 7.732 % 84,386,584 Orange County Petuion Obli gations 7.732 % 24,071,526 OrangeCouiity Transit Dis [riot °Authority _ 7.732.% 1,120,753 Orange County Sanitatibn;Distriet Nos. 5,_6 Si 7 Certificates of Participation 7.076- 90.404 % 25,075,591: Orange County Water District Certificates of Participation 1.317x% 2,493,147 Municipal Water Dtstrtcx of+Orange-County Water. Facilities Corporation 0.043 % - 29,717,.; Coast Community CoilegeDiscrfcxCexificaxes of Participation 26,849 °O� 4,631,453.' Sotittb G)rnge =County Cotimunity'College District Certificates of Participation ` . 0.867 % ; 414 253 Iwvine:Unified School Dtsq iu Certificates of Participation 0.004% 250'S Santa Ana'CliiifiedSchool District Certificates of Participation 12.742% ' 1:262 950;; Irvine Ranch Water District Certificates of Participation 2.179 % • 1 252 925 cny of Newport BeacE&iuficates,of Participation 100 000 °/a 7,070 000 TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT (1) $195,698,543 Less:_, °.Orange County Transit District Authority (80% self-supporting) 'Orange County Water District Certifceates of Participation (100 6k self - supporting) € .x. 2,493;147 K-WDCO Water Facilities Co rporation (100% self - supporting) TOTAL NET DIRECT_AND OVERLAPPING BONDED DEBT (1) $192,279,076 (1) tax Ratios to Assessed Valuation: Combined Direct Debt ($7,070,000) Total Gross Combined Debt Total Net Combined Debt $o Source: California Municipal Statistics, Inc. Unaudited -See Accompanying Auditors' Report. 88 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ a ■ 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 $ $ 811,037 $ 811,037 7.27 1995 -1996 16,145,307 13,220 02$ * - `2,925,279 820,600' 89$ 878 1,258,420 2.32 . 1996 -1997 18,221 967 '- - 14,651,987 ' 3;569,980 845,000 854 130 ;== 1,699,130 2.10 ■ 1997 -1998 16 -097,212 '12,350,445 4 „146,767. 875,000 784,390 1,659390 2.50 • 1998 -1999 17,658,076 11,1451936, ° 6,512,140 , 335,000 593,469 92928469;: 928469;: - 7.01 ■ (1) Gross revenues includes operating revenues, interest and intergovernmental revenues in the Water Fund (2) Total Water Fund operating cxpense`excludes depreciation. (3) No revenue bonds were issue& prior to fiscal year 1994 -95. Unaudited :See Accompanying,Audiiors' Report. y st b' - mi s+ yyw'a < r A S=X S Y , S a 6 , y ■ ■ ■ i ■ ■ r 99 ■ ■ Demographic Statistics (Last Ten Fiscal Years) • City Fiscal City Orange County Population Per Capita Median Unemployment Year Population Population %of County Income Age Rate 1989 -1990 7t,074 (4) 2302,214 ; 309% (3) (3) (1) 1990 -1991 69,927: .2;436,074 2.87 %$ 21,37:: 405 (1) 1991 -1992 66643` 21410,556x 2.96% 14,390, 40.8 1992 -1993 65,172 ` 21599,717" 2,51% 27,755 38.4 5.4% ' • 1993 -1494 68,784 2 523,774 ' i 2.73% 49,593, 40.7 4.2% 199473995 69,301 -' 2,564;345". 2.70% 50,515 40;3` 436W 1995 1996 70,098 - 2,615 >046': 2.68% 52,452 40.6 3.20/, 1996E "1997 69,4069' ,' 2672457 2.58% 53,509 417 2.60X s3� 1997- 199,8 70030. 2,710,718 : ,'a 2.58% 56000 43.5 2.1% x 4999-1999 72,623 , 2,775,600 , (2) 2.62% 59,051. 43.9 1:6% l (I) Unemployment rate not available.prior to fiscal year 1992 -1993. Q)-Based on estimated population provided by California` Department of Finance as of January 1 1999 ■ (3} Data isw. available prior to 1990-1991",;, ' (4) Provided by the Newport Beach'Admtnistrative'Services Department. Source FOCUS: Orange County; a magazine published by Info Outfitters, ■ Unaudited See Accompanying Auditors'.Report. 100