HomeMy WebLinkAboutFiscal Year 1999-00 Financial Statement■
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■ COMPREHENSIVE ANNUAL FINANCIAL REPORT..
FOR THE YEAR ENDED JUNE '309 2000
PREPARED BY THE ADMINISTRATIVE SERVICES. DEPARTMEN.T
■ DENNIS DANNER, DIRECTOR ..
THE CITY OF NEWPORT BEACH WAS INCORPORATED SEPTEMBER 1, 1 906
THE PRESENT CITY SEAL WAS ADOPTED JUNE 22, 1957
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CITY OF NEWPORT BEACH
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Comprehensive Annual Financial Report
Year Ended June 30, 2000
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..TABLE, OF CONTENTS
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INTRODUCTORY SECTION
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(Unaudited)
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Table of Contents.. .............
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Letterof Transmittal ......... ........ ....:.......................... ........ ...... .. ::...............w
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GFOA Certificate of Achievement for Excellence in Financial Reporting ' :..,.
.... xx
CSMFO Certificate of Award for Outstanding Financial Reporting ....................
List of City Officials ............. .:..
xxn
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Organization Chart . ........ ........: ........................ ..... ........ ........ ....... ;'........
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FINANCIAL SECTION
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Independent Auditors Report.. ......... ............................ ........ ........ .........
.........1
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General Purpose Financial Statements
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Combined Balance Sheet -All Fund'Types and Account Groups. ........`.
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Combined: of :Revenues; :Expenditures and Changes
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in Fund ;Balances = All Governmental' Fund Types ........................
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Combined :Statement of Revenues, Expenditures and Changes
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in Fund Balances - Budget and Actual - All Governmental Fund Types .........
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Combined Statement of Revenues, Expenses and Changes
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in Retained Earnings -All Proprietary Fund Types .......
11)
Combined' Statement of Cash Flows - All Proprietary Fund Types ..... ............................
.12
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Notes to General Purpose Financial Statements ......:.. ......... ............. .............15
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Supplementary Information
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General Fund:
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Comparative Balance Sheets ........
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Statement of Revenues, Expenditure.s and Changes
,Fund Balance -= Budget and Actual ..;.: ................................ .... ...............48
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Special Revenue Funds:`
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Combining Balance Sheet ......................................
..50
Combining Statement of Revenues, Expenditures and Changes in Fund 6alances.........54
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Statement of Revenues, Expenditures and Changes.
in Fund Balance - Budget andActual: .
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State Gas Tax Fund.: ....... ; ' ........: ......... .................................. ..........................
58
• Asset Forfeiture Fund ............................................................ ...............................
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Tide and Submerged Land Fund ............................................. .............................60
• Contributions Fund.. ................................. .................... .............. .......................
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Circulation and Transportation Fund ...................................... ...............................
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Building Excise Tax Fund ...................................................... ...............................
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• Combined Transportation Fund ............................................... .............................64
Arterial Highway Rehabilitation Project Fund ......................... ...............................
65
• Community Development Block Grant Fund ............................ .............................66
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Ackerman Donation Fund ........................................................ .............................67
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• Air Quality Management District Fund ................................... ...............................
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• Environmental Liability Fund .................................................... .............................69
• Supplemental Law Enforcement.. ...... ........................ __ ..... ... ...... .....................
70
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• Miscellaneous Grants .............................................................. .............................71
Secured Properly Tax Levies and Collections, Last Ten Fiscal Years ...... ...........................:100
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Capital Projects Funds:
CombiningBalance Sheet ...................................................................... .............................74
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Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............
75
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Enterprise Funds:
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CombiningBalance Sheet ...................................................................... .............................78
..105
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Combining Statement of Revenues, Expenses and Changes in Retained Earnings ...........80
Combining Statement of Cash Flows ..................................................... ............................82
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Internal Service Funds:
Combining Balance Sheet ...................................................................... .............................86
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Combining Statement of Revenues, Expenses and Changes in Retained Earnings ...........87
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Combining Statement of Cash Flows ..................................................... .............................88
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Agency Funds:
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Combining Balance Sheet ...................................................................... .............................90
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Combining Statement of Changes in Assets and Liabilities ................. ...............................
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Account Groups:
General Fixed Asset Account Group:
Comparative Schedule of General Fixed Assets ...................... ...............................
94'
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General Long -Term Debt Account Group:
Comparative Schedule of General Long -Term Debt ............................. ............................95:
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STATISTICAL SECTION (Unaudited)
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Miscellaneous Statistics ............................................................................. ............................:97
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Governmental Revenues by Source, Last Ten Fiscal Years .................... .............................98
Governmental Expenditures by Function, Last Ten Fiscal Years ................... .....:................
98
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Assessed and Estimated Actual Values of Taxable Property, Last Ten Fiscal Years..........:100
Secured Properly Tax Levies and Collections, Last Ten Fiscal Years ...... ...........................:100
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Construction Activity, Last Ten Fiscal Years .............. ............................... .........................:.:102
Bank Deposits, Last Ten Fiscal Years ...................... ............................... ............................102
Property Tax Rates, Direct and Overlapping Governments, Last Ten Fiscal Years .............104
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Computation of Legal Debt Margin ........................... ............................... ............................104
Principal Property Taxpayers as of June 30, 1999 ............................................. ........ . .......
..105
Schedule. of Direct and Overlapping Bonded Debt .......... ............................... ................106
Revenue Bond Coverage, Last Ten Fiscal Years ...... ...........:...........:....... ............::..............107
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Demographic Statistics, Last Ten Fiscal Year ........... ............................... .....:...:..................108
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CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
October 30, 2000
Honorable Mayor and Members of the
City Council -
City of Newport Beach
Newport Beach, California
The Comprehensive Annual Financial Report of the City of Newport Beach for the year
ended June 30, 2000, is hereby submitted, as mandated by both local ordinances and
state statutes. These ordinances and- statutes require that the City of Newport Beach
issue annually a report on its financial position and activity, and that-an independent
firm of certified public accountants audit this report. Responsibility, for the accuracy,
completeness, and fairness of the data presented, including all disclosures,, rests with.
management. We believe the information presented .is accurate in all material aspects;;
and that it is reported in a`manner.designed to fairly: present the financial 'position and
results of ope[ations;of•the various.funds, account groups and component'units of the,
City of Newport Beach All disclosures necessary.,to enable the reader to. gam On
- understanding of the City's.. financial activities have been included.
This report is presented in three sections. The Introductory Section, which is.unaudited;,
contains the tabie.:.of contents, the transmittal letter, an. organization chart of,the City,
and a listing of the City's principal elected and appointed officials The'Financ�al'Sectioni
consists ofahe independent autlitors'. report ; the general purpose financial statements;:
notes to the financial statements, and the combining -and individual fund and account
group financial statements and schedules. The Statistical Section, which is unaudited,
contains selected financial and. demographic information, generally presented.' on a
multi -year basis.
The City provides a full range of services to its residents and visitors Resources used
in supplying City services and maintaining operations are classified in three general
character groupings: Current, Capital, and Debt - Service Simply, stated, Current
expenditures should be presumed to benefit the. current fiscal ''period; Capital
expenditures should' be' presumed to benefit the current and future fiscal periods; and
Debt Service expenditures should be presumed to benefit past, current, and future
fiscal periods.
The City utilizes more specific categories to classify expenditures by the function of the
services the City provides, as follows:
General Government: City Council, City Manager, City Attorney,. City Clerk, and
Administrative Services.
3300 Newport Boulevard, Newport Beach
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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 r
in the City's reporting entity because of the significance of its operational or financial .
relationship with the City. Even though it is a legally separate organization, 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, levy taxes or set rates or charges, or issue bonded debt without approval by
the primary government. In a blended presentation, a component unit's balances and
transactions are reported in a manner similar to the balances and transactions of the ■
City. Component units are presented on a blended basis when the component unit's ■
governing body is substantially the same as the City's or the component unit provides
services almost entirely to the City. ■
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Public Safety: Police, Fire, Paramedic, Disaster Assistance, and Marine Safety.
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Public Works: Engineering, Construction, and Maintenance of public streets,
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highways, buildings, parks, and infrastructure, as well as fleet maintenance and
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sanitation.
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Community Development: Planning, Zoning, and Building Permit services and
enforcement.
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Community Services: Libraries, Recreation, Arts & Cultural, and Social Services.
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Proprietary Functions: Enterprise Operations for water and wastewater utilities,-as
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Well as Internal Service Operations for risk management and fleet maintenance and
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replacement.
DESCRIPTION OF REPORTING ENTITY
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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 .,:
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government and provides the following services: public safety (police, fire, and marine); .
highway and streets, cultural and recreation, public improvements, planning and
zoning, utilities, and general administrative services.
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The financial statements present the financial activity of the City of Newport Beach (the ■
primary government) and the Newport Beach Public Facilities Corporation, which is;a
component unit of the City. This component unit,.which is discussed below, is included r
in the City's reporting entity because of the significance of its operational or financial .
relationship with the City. Even though it is a legally separate organization, 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, levy taxes or set rates or charges, or issue bonded debt without approval by
the primary government. In a blended presentation, a component unit's balances and
transactions are reported in a manner similar to the balances and transactions of the ■
City. Component units are presented on a blended basis when the component unit's ■
governing body is substantially the same as the City's or the component unit provides
services almost entirely to the City. ■
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Blended Component Unit. The financial statements of the City of Newport Beach
■ include the financial activities of the Newport Beach Public Facilities Corporation (the
■ "Corporation "). The Corporation was formed on March 9, 1992, for the purpose of
assisting the City of Newport Beach in the financing of public improvements, including a
■ public library. The Corporation. is•governed by a Board of Directors comprised 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:
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■ Organizations Other than.Reporting Entity. The following entities provide services within
the City but. are not component units: State of California, County of Orange, and. various
■ school and other special districts. These entities do not meet the above criteria of a
component unit and their financial information is not included in this report.
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LOCAL ECONOMIC CONDITION AND OUTLOOK
* Although the City's "aong -term tax base is broad and diverse, there are significant sl
■ term fluctuations in all City revenues, including taxes. The City's primary reve
. sources are property taxes:; sales taxes, and uniform transient occupancy taxes.
together, taxes make . up. nearly 50% of the City's entire revenue base and 65% of
City's General Fund revenues. Although significantly smaller than the top threereve
sources, other..: noteworthy individual revenue sources include state motor vet
license .fees (VLF), parking meters; parking lots, business license taxes,. francl
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taxes, interest income;; :and.. parking fines. Other, smaller sources. of revenue
numerous and highly varied.
With the economic downturn in the early and mid' 1990's and subsequent
California budget actions, the City suffered a significant and ongoing adverse i
its`finances. For several years the.City`implemented aggressive measures to
the economic hardships of the local economy while attempting to minimize the
service delivery. Measures included reorganization, analysis of mission critical
outsourcing; staff - reductions, revenue enhancement, financing and dev
agreements, use of City reserves, capital improvement prioritization and m<
retrenchment tactics. However, the City has continued to provide the highe
services to its residents and commercial establishments, even though'some
measures complicated the City's operating environment.
are
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;t quality
of these
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 Beach includes an extensive beachfront, a large harbor with several
islands and the "Back Bay' that divides the City. This unique geography adds to the
beauty of the City, but, combined with the large number of visitors, it also requires more
City employees and other resources per capita than other cities to provide the service
delivery to which Newport Beach residents have become accustomed.
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The recent economic boom in Orange County and California has improved the financial ■
position of the City by substantially replenishing reserves that were utilized during the ■
nineties. Although a slowing economy would seem inevitable, economic conditions are .
still favorable. During 1999 -2000, property tax revenue increased 10.4% as compared
to the previous year's increase of 7.7 %. Sales tax revenue increased 12.6% as
compared to last year's increase of 7:6 %. Uniform transient occupancy tax revenue
increased 10.2% as compared to last year's decrease of 2.2%. For the short-term, we ■
anticipate this revenue pattern to continue through the end of the fiscal year. The long-
term outlook on the City's revenue stream is also favorable.
Thirty percent of the City's General Fund revenues are directly based on property
values. As geographic and socioeconomic conditions in Orange County remain very
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desirable, property values in Newport Beach are projected to be solid for at least the
next several years. With property turnover and the high level of construction permit
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activity we have experienced in the last several years, assessed valuations are steadily
increasing. With regard to sales taxes, local businesses have projected sales above
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national averages.
The City's overall financial condition remains quite strong. Reserve policies have been
instituted and approved by the City Council. The City considers it essential to fund its:
financial reserves at a level that can endure a limited economic recession without
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adversely impacting service levels and capital maintenance programs. To that. end, the
City has worked hard to replenish its reserves to preserve the financial strength of
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Newport Beach. The effectiveness of the reserve policies is reviewed on a regular
basis.
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MAJOR INITIATIVES
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For the Year.
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The City's comprehensive Capital Projects program was again particularly ambitious,
with total spending of $16,863,429 actually taking place during fiscal year 2000.
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As the result of a joint agreement in 1998 among the City of Newport Beach, the City of
Irvine, and the Irvine Company, the area known as Bonita Canyon (461 acres) was
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transferred to the City of Newport Beach. As planned, the community will include 1,390
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residential dwelling units, with 290 single family detached homes, 1,100 multi - family
apartments and a 55,000 square foot commercial center. At build -out, the population of
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Bonita Canyon is expected to be 2,747. To further develop the Bonita Canyon area, the
City entered into a joint powers agreement with the Irvine Unified School District and
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Newport-Mesa Unified School District to form the Bonita Canyon Financing Authority.
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In December of 1998, the Bonita Canyon Financing Authority formed a community
facilities district and issued $45 million of limited obligation, special assessment debt.
The bond proceeds were used to purchase and improve school facilities and parkland,
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. and to finance certain street improvements along Bison Avenue and MacArthur
Boulevard. Of the total bonds issued, $30.5 million was made available for City
■ improvements. Although residents of the City of Newport Beach will benefit from these
improvements, the debt and title to the land are held in the name of the financing
authority. To date, $24.7 million was: ::utilized to purchase the parkland and other land
rights within the City limits:: The-$onita Canyon .park improvements are to include
soccer and baseball fields, restrooms, parking lots, turf area; and a tot lot. The project
■ cost is estimated to be $5:9 million and $1.9 million has been spent to date.
■ Other notable. park improvements underway this year included the Peninsula Gateway
and Grant Howald parks. For the Peninsula Gateway Park Improvements, the City
landscaped and installed donor walls, signage walls, and irrigation. The contract'-for this
project was $310,000. Grant Howald Park lighting and field improvements were nearly
completed by year's, end for a cost of over $300,000.
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The City's;.pavement maintenance. program .continued aggressively again this year;
Streets were rehabilitated at a cost of $5 million. The; major streets rehabilitated were,'.
■ Irvine. Avenue, San Joaquin Hills Road, Jamboree Road, MacArthur Boulevard,
■ Newport , Boulevard; and Balboa Boulevard.
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Jambore&!Road and Eastbluff.DriVe Improvements: A`nght tutu lane was constricted tq
accommodate Corona del Mar High. School and Eastbluff area traffic. To accomplish
this, an aesthetic.retaining wallsystem.was constructed to.support.the slope,adjacent,to-
the public right -of =way. The project cost was $1 million.
■ Dahlia Avenue Street End Slope Improvement:. The slope was graded, landscaped ,. and
r a retaining wall was constructed fora cost of $500,000.
Balboa`Pier Repair: This project included pile replacement and structural upgrades at a
■ cost of $270,000: Two of the piles were replaced by going through the roof., of Ruby's
■ Restaurant;_ located at the end of the pier.
■ Balboa Peninsula` Projects: Extensive community meetings, were held and preferred
■ alternatives were identified -and approved by the City Council -for the redevelopment of
the Balboa Pier Parking Lot, Balboa Village, and the confluence of the Balboa and
Newport Boulevards (Mixmaster).
Alley Replacement Program: $300,000 was spent on upgrading the Peninsula alleys.
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■ Storm Drain Master Plan Project: Storm drain improvements have begun on Balboa
Boulevard, Newport Boulevard, and Bayside Drive for approximately $700,000.
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Another new restricted revenue source for the coming year is the Transportation
Congestion Relief revenues funded from State surpluses. The City will receive an initial
allocation of $539,094 and receive another $135,000 per year for the next five years ■
based on a per capita formula. These funds must be used for street and highway ■
pavement maintenance, rehabilitation, and reconstruction.
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Street Light Replacement: This year's efforts included replacement in Newport Heights
and Newport Terrace for a cost of $530,000.
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Light Emitting Diode (LED) Conversion Program: Significant energy savings were
realized from the first phase of a multi -year project to convert red incandescent traffic
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signal lamps to Light Emitting Diodes. There were over 250 LED units installed. These
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units use one -sixth of the energy used by the lamps they replaced.
Regulating Station Replacement Program: This year's efforts included the rebuilding of
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the pressure regulating station at Bayside Drive by City staff. This is one of five stations
that regulate water pressure to the Balboa Peninsula.
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For the Future
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The City adopted Resolution 99 -71 which authorized the filing of a reorganization
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application with the Local Agency Formation Commission (LAFCO) that could lead to :
the eventual annexation of unincorporated area known as Bay Knolls, Santa Ana .
Heights (east of .Irvine Avenue), Newport Coast and Newport Ridge. This action is the
first step in the reorganization process as outlined in California Law (Government Code
§56000 et seq.).. Under the proposed reorganization plan, the services that the City,,:;
would provide differ in each area. In general, the City would provide additional police;;
fire, paramedic, animal control, library, recreation, public works, general maintenance .
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and administrative services to the proposed areas of annexation. However, the net,,,
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economic impact of reorganization is expected to be favorable.
The Police Strategic Information Systems project, a multi -year technology project,
moved forward this year and continues into the next. It incorporates a records
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management system, jail management system, mobile data system, and will result in
additional effectiveness of the City's law enforcement resources. The Police
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Department, was successful in securing a $1.5 million federal grant which will expand
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the depth of this project and offset future costs.
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The Police Department also has several new grant applications in process to expand
the level of public safety services. The new grants partially fund new civilian and safety
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positions and provide for the creation of a new DUI enforcement team. The grants also
provide for the purchase of new related equipment with one grant specifically intended
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for "high technology" purchases.
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Another new restricted revenue source for the coming year is the Transportation
Congestion Relief revenues funded from State surpluses. The City will receive an initial
allocation of $539,094 and receive another $135,000 per year for the next five years ■
based on a per capita formula. These funds must be used for street and highway ■
pavement maintenance, rehabilitation, and reconstruction.
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■ One project that will affect every City department next year is the move to a completely
new version of our financial suite of software applications. This process involves
■ configuring new hardware and software and migrating years of historical information to
a new system. The opportunity to replace our eleven year -old, character based, user-
unfriendly software, with a "Windowsr. appearance, graphical user interface, state of the
art, and user friendly alternative only. recently arose.. Purchasing all of these systems
■ from a new vendor would:be cost prohibitive at $243 million. We were able to obtain
■ the upgrade to an open. system, including all training and data conversion, for less than
$200,000. And, thanks to the generosity of all departments, we were .'able to pay for
■ most of the upgrade using existing appropriations. Only .$50,000 represented new
appropriations. This is truly an example of "teamwork and departments, >: working
together for the good of the organization.
■ After several years of consideration and the needs of users of government financial
■ statements, the Governmental ''Accounting Standards Board (GASB) issued its
revolutionary new reporting model in June of 1999. The new model dramatically
■ changes the presentation of governments' external financial statements. In the :GAS,Fs;
view, the objective.; of the new. 'model is to enhance the clarity and usefulness ,., of
■ government financial. statements to the citizenry,. `oversight bodies, investors and'
■ creditors..., It substantially affects the City's financial, data., accumulation and financial
statement presentation processes. The effective date of the new pronouncement will;
■ require implementation by. the City for its year ending June 30, 2002. The magnitude of
these changes and`.the.time required: preparing for implementation are tremendous. In
the next.year the City will be looking. at its systems and processes to ensure that the
`required information will be.available to ensure timely implementation.
■ 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
and wastewater systems. Highlighted planned capital improvement projects inelude the
following:
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■ Pavement' Management Program: Major projects include Dover Drive between Cliff
Drive and Coast Highway ($470,000), Citywide Slurry Project $(350',000), Corona
■ Highlands Street Rehabilitation ($135,000), and a pavement overlay on 16' Street
■ between Dover Drive and Irvine Avenue ($200,000).
■ Soundwall Glass Replacement: This project will replace 2,200 square feet of 10-year-
old lexan glass panels in the sound wall along West Coast Highway at a cost of
$100,000.
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■ Oil Spill Remediation: In February 1990, a tanker spilled more than 400,000 gallons of
oil off the coast of Huntington Beach and the spill impacted Newport's beaches. As a
■ condition of the settlement ($4.7 million for Newport Beach), the City is required to use
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the proceeds on projects affecting the areas damaged by the spill. Major projects
include: Balboa Pier Rehabilitation ($1,150,000), Newport Pier Rehabilitation ■
($950,000), Beach Restroom Improvements ($500,000), Corona del Mar Beach ■
Improvements ($500,000), Ocean Front Walkways and Lighting Improvements
($450,000). ■
Single Audit. As a recipient of federal financial assistance, the City is required to ■
undergo an annual audit in conformity with the provisions of the Single Audit Act of ■
1984 and the U.S. Office of Management and Budget Circular A -133, Audits of State.
Local Governments. and Non -profit Organizations. As part of the City's Single Audit, ■
tests are made to determine the adequacy of the internal control structure, including ■
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Water Transmission Main to Corona del Mar: $2.1 million will provide a new water main
from Big Canyon Reservoir to Corona del Mar to improve the water. pressure and
service to the area.
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Corona Highlands Water Main Replacement: This project will replace deteriorated cast
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iron water pipelines that were originally constructed in the late 1940's and 1950's.
These water mains have a higher frequency of failure than other parts of the City's
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water. system. Total project cost is $1.2 million.
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Traffic Signal Improvements: Three new traffic signals will be installed and the two
existing signals on San Joaquin Hills Road serving Big Canyon and Newport Center will
receive major upgrades. Total project cost is $250,000.
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:FINANCIAL CONTROLS AND PROCEDURES
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Internal Control Structure. Management of the City is responsible for establishing ands
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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
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accounting data is compiled to allow for the preparation of financial statements in
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conformity with generally accepted accounting principles. The internal control structure
is designed to provide reasonable, but not absolute, assurance that these objectives
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are met. The concept of reasonable assurance recognizes that: (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the valuation of costs and
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benefits requires estimates and judgments by management.
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The City of Newport Beach initiated a comprehensive program to reduce vulnerability to
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fraud, waste, or abuse through an improved internal control structure in recent years.
Purchasing, Accounts Payable, and Property Control Procedures are in place and
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updated periodically.
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Single Audit. As a recipient of federal financial assistance, the City is required to ■
undergo an annual audit in conformity with the provisions of the Single Audit Act of ■
1984 and the U.S. Office of Management and Budget Circular A -133, Audits of State.
Local Governments. and Non -profit Organizations. As part of the City's Single Audit, ■
tests are made to determine the adequacy of the internal control structure, including ■
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that portion related to federal financial assistance programs, as well as to determine
■ that the City has complied with applicable laws and regulations. The results of the City's
Single Audit for the fiscal year ended June 30, 2000, provided no instances of material
■ weaknesses in the internal control structure or significant violations of applicable laws
■ and regulations. The information related ;to, the Single.yAudit, including the Schedule of
.Federal Financial Assistance', findings and . recommendations, and independent auditors'
■ reports on the internal control 'stricture and compliance I ith:; applicable laws and
regulations are included in 'a separate report.
■
■ Budgeting;. Controls and Changes. The City of Newport Beach. maintains budget
■ controls. The objective of these controls is to ensure _compliance with- legal.'provisions
embodied in the annual appropriated budget approved by the -City Council: - Budget
control is maintained at the fund level, or project level. The City maintains an
encumbrance accounting system as one method of accomplishing budgetary control.
■ Where encumbrances indicate an overdraft of the departmental or project budget,
. purchase orders are not released until an appropriation adjustment is made to ensure
that adequate funding is available.
■ The City utilizes Internal. Service Funds.: to more effectivelymanage functions across;
■ departmental lines: The Insurance• Reserve Fund was. phased in to assist the`City in 1
'assessing the full extent of its liability for claims and iudgrnents..lnternal contribution
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rates.. have been established in an effort to fund these liabilities over th"ve -year:
period. Disability and compensated, absences have now been added to` programs':
managed through:: -this fund During . the 1993 94 :..fiscal year-.,. , the City, began to,
■ administer,'.plan, and'.bucJget for the acquisition, maintenance an d repair" pf major=
rolling stock,; (vehicles and equipment),through:.an Eau.i.pment lr ternaI Service:F.und
■
FINANCIAL INFORMATION
■ 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.
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Total fund balance of the General Fund increased $5.3 million during the year primarily
due to favorable economic conditions driven by strong property tax, sales tax and
transient occupancy returns. At first: glance it appears the General Fund fund balance
has returned to pre - economic recession fiscal strength. However, the current operating
environment compared to ten years. past . is.. both more complicated and more
expensive. The City also has more::general obligation debt than it did ten years ago.
Therefore, it will take another few years of similar economic growth in order for the
General Fund to reach the same relative economic strength it had prior to the
recession.
30
25
e
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20
0
Percentage
Cumulative
s
1s
Change
Change
C
Amount
p
19
f
Revenue Source
(000)
5
1998 -99
9
General Fund Balance
Ten Year Trend In Fund_ Balance
1991 1992 1993 1996 1995 1996 1997 1998 1999 2600'.
... ,. Fiscal Year Ending June 30 .
Revenues. The following schedule (expressed in thousands) presents a summary of
governmental fund revenues for the fiscal year 'ended' June 30, 2000, and the`
percentage increases or decreases in relation to revenues during the previous fiscal
year; as well as the percentage increases and decreases for the five -year period
beginning with fiscal year 1995 -96.
Fiscal Year 1999 -2000 Governmental Revenues
Percentage
Cumulative
Change
Change
Amount
Percent of
From FY
Since FY
Revenue Source
(000)
Total
1998 -99
1995 -96
Taxes
$58,847
58.62%
11.23%
25.60%
Licenses, Fees, & Permits
$4,248
4.23%
- 25.21%
39.18%
Intergovernmental
$10,867
10.83%
- 28.46%
30.69%
Charges for Services
$9,068
9.03%
3.28%
44.44%
Fines & Forfeitures
$3,442
3.43%
4.62%
20.56%
Use of Money & Property
$12,405
1236%
16.31%
1278%
Contributions
$679
0.68%
- 97.85%
-91.71%
Other
$830
0.83%
146.12%
445.69%
Total
100,387
100.00°%
21.80%
39.69%
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Property. taxes, sales taxes and uniform transient occupancy taxes continued to
increase over last years revenues by 10.4 %, 12.6% and 10.2% respectively which
account for the 11.23% increase in taxes (the largest component of the City's revenue
base at 58.62 %). License, Fees and Permit Revenues decreased by 25.21% due to
several major commercial development projects that were concurrently underway in the
prior year. Decreases in Intergovernmental Revenues`were due to non- recurring grant
revenues received in the prior year, related to the $15 million Newport Arches
Interchange projectand `several Federally funded bridge retrofit projects. Representing
.less than 1 % of the City's revenue - base, the 97.85% decrease" in Contributions
Revenues is related to bond proceeds issued in the prior year from the limited
obligation, Bonita Canyon special assessment. Also representing less than 1 % of the
City's revenue base, Other Revenues vary from year to year with no particular trend.
The five - year cumulative change figures in the last column and the chart depicted below
cover the period near, the bottom of the economic recession to" -the ,present time::�A
similar comparison that covered a seven or eight year period, starting earlier, would
actually show. significantly less dramatic increases in .virtually: every category., conger -,,
term trend information is available in the Statistical Section near the end. of this Report:.,
Percentage. Changes in Major Revenue Sources
100.00% ®Change this fiscal year, • !,
m . ' i•Cumulatnre chan since FY sin FY 1995-96
.. G . 50.00%
U
a
- 100.00%
a
c u!
d � U
Revenue Source
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OR
. 0
c m
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o m
LL LL
O ce
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With. the exception of intergovernmental grant revenues and miscellaneous revenues,
the long term composition of the City's overall revenue structure remains fairly stable.
Large non - recurring grants and limited obligation bond issues tend to distort year to
year comparisons. The graph below indicates that property taxes and sales taxes are
growing at a disproportionate pace when compared to other revenue sources. This is
xiii
certainly due to the economic boom of recent years and the generally favorable
socioeconomic conditions that can be found throughout Orange County and especially
in Newport Beach.
30.0%
.j 25.0%
o .
w 20.0%
0
{pm 15.0%
.3
C 10.0%
4)
rl 5.0%
0.0%
Five -Year Trend in Makeup of Governmental Revenue
19959
1998 -97 1997 -98 1998 -99 99 -2000
Fiscal.Year
— Property Taxes
+Sales Taxes
—41�- -Other Taxes
Ow— Intergovemmental *(includes one -time grant in 1997 -98)
Use of Money & Property
—*-.— Charges for Services
—4--Licenses, Fees; & Permits
—*—Fines &Forfeitures
+Other "(includes non - recurring limited obligation bond fundings
in 1996, 1997 and 1999)
Expenditures. The following schedule (expressed in thousands) presents a summary
of governmental expenditures for the fiscal year ended June 30, 2000, and the dollar
value of the increases or decreases during the past five years.
With regard to longer term changes in the pattern of City expenditures, the general
trend during this decade has been for Public Safety (Police, Fire, and Marine) and
Capital Improvement spending to increase in relation to all other City spending.
However, capital improvement spending in 1999 included the acquisition and
development of the Bonita Canyon parkland in addition to several concurrent bridge
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retrofit projects that account for the steep decline in capital expenditures in 2000. The
large 'relative . increase in General Government expenditures is due to airport growth
control measures that were very active during the current fiscal year. Relative
decreases in spending for all other categories generally balanced the long -term Public
Sf
a ety Increases.
Fiscal Year 1999 -2000 Governments! Expenditures
Current
Change
Change
Amount
Percent of
From FY'.
Sinoe.O.'
Expenditures
(000) .
Total
1998 -99
1994-95
General Government
$9,441 -
9.89%
$1,969
$1,967 -
Public Safety
$41,736
43.70%
$1,222
$7,124 "
Public Works
$16,899
17.70%
$52
$2,464
Community Development
$4,271 '
4.47%
($417)
$11351;1
Culture and Recreation.
$7,933
` 8.31%
$199
$1,597 -
Capital Expenditures
$13,984
14.64%
($36;700)
$42,160 ..
Debt Service'.
$1,234
129%
($18)
($298).
Total Expenditures
$95;498
1D0.00%
($33,693)
$56,365
Hf
Change in Govemmerrt Expenditures
''CCCC
YJJiOW
199596
—h— Public Safety
— A—General Government
1996 -97 1997 -98 1998 -99
—i Capital Expenditures Publicwtxks
- *- C.oirmunity Development ---Debt Service.
r4NK ,
— A Culture and Recreation
(The above chart reflects actual dollars, with no adjustment for inflation.)
KAIA
/
■
Enterprise Operations. The City had three enterprise operations at June 30, 2000:
Water, Wastewater, and Cannery Village Parking. An analysis of the City Enterprise
■
Fund operations indicates the following results for fiscal year 1999 -2000:
■
The Water enterprise activity reported operating income of $4,4144,167 and net
income of $5,917,773. The Water Fund ended the year with retained earnings of
$40,651,451.
♦ The Wastewater enterprise activity reported a loss from operating income of
$94,261 but net income of $9,036. The Wastewater Fund ended the year with
/
retained earnings of $4,002,442.
/
♦ The Cannery Village Parking . enterprise operation reported net income of $87,083
and : retained earnings of $852,747 for the fiscal year ended June 30, 2000.
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's contribution rates are modified accordingly.
Defined Contribution Retirement Plan for Part-Time Employees. In addition to the
PERS retirement plan for full -time City employees, the City contracts with the Public
Agency. Retirement. System (PARS) to provide federally mandated retirement benefits',
for part-time employees. Each part-time employee contributes 3.75 percent of salary;.`.
with the City contributing a matching 3.75 percent to this.retirement system. The City's `.
contributions for each employee (and interest earned by the accounts) are fully vested'
immediately.
/
Deferred Compensation Plan. The City offers a Deferred Compensation Plan for full'-
time employees. This plan is designed to supplement the employee's PERS Retirement
/
Plan. The City's Deferred Compensation Plan is authorized under Internal Revenue
/
Code.Section 457(b), and it is subject to all the limitations and restrictions of that code
section. All full -time employees are eligible to participate in this plan on a voluntary
■
basis.
■
Cash Management. It is the City s policy to invest all temporarily idle short-term funds
r
and longer -term reserves in a manner that will maximize return without sacrificing
security or jeopardizing liquidity requirements. Idle funds are invested in accordance
with the Government Code and a formal Investment Policy approved by the City
Council. The policy, which is reviewed and updated annually, allows investments in a
variety of specific instruments, as well as certain state, county, and private sector
investment pools and asset management services. Certificates of deposit, demand
/
deposits, bankers acceptances, U.S. Government and Agency Securities, commercial
/
paper, repurchase agreements, and the Local Agency Investment Fund are examples.
/
/
xvi
Due to the fact that the volume. of funds available for investment has decreased over
the past few years, as well as the fact that interest rates have remained relatively low,
investment earnings are not now as significant a portion of City revenue as they have
been in the past. In addition, the portion of those earnings allocated to the General
Fund has decreased in relation to the eam►ngs of other funds. This is due to the smaller
daily cash balance in the ,General Fund The City's plan to reconstitute reserves will
reverse this trend, but d is'not''likely to have a significant "favorable impact in the
immediate future It is.the City's long- standing policy to"account_.for all financial
institution charges ;including: brimary checking account charnes, As.-, abatement to
mvestment.:eamings revenue: "°
certificatesplof'particpation of $6,845,000 water revenue bonds of`;$13,200 Ofi00 note5i.
payable of $2,469,399, governmental fund capital leases. of $1`,798,655 and'propnetary
fund capital'leases of $1 053;237 : •• un
Rrsk Management The City maintains a rrsk rnartagement program; which is14
combination of self- insured'tetentwn ='excess insurance coverage, and written Policies:
As;part of this program,== 'resources'are now, tieing set 4side:in the nsurance Reserve
Fund(as opposed tothe GeneraUFund)_to meet current,and_potential losses. OnJuljt 1,
1994, the City purchasedexcessgeneral `liability.inslirnce coverage of $10 milksin, =4vith
a self insured retention (Silk of_ $1 million per occurrence : On September 1,..1f335, the
City purchased ezces "s workers' -compensation and -employers °'liability insurance
coverage -of ;$300;000- per occurrerce up- -to-•$1,000,000. This 'insurance,= °provides
coverage for work- related accidents and diseases. Qn July``_ 1,' 1999, 9eneral liability
coverage remained =at $25 million per occurrence with. a $500,000 SIR, Further policy
and administrative adjustments in the area of Risk Manage6 -,en are anticipated.
Although the Insurance Reserve .F.und maintains a _substantial' accumulated deficit,
management is confident that future operating income-'and transfers will be sufficient to
satisfy current and future claims against this fund's <resources.
General Fund Balance. The fund balance of the General Fund increased by
$5,310,303 during the fiscal year ended June 30, 2000. The fund has met Council
policy targets for the contingency and stabilization reserves.
xvii
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OTHER INFORMATION
■
Independent Audit. The City Charter and State Statutes require an annual audit by ■
independent certified public accountants. Accordingly, this year's audit was completed
by CONRAD AND ASSOCIATES. In addition to meeting the requirements set forth in the ■
City Charter, the audit also was designed to meet the requirements of the Federal
Single Audit Act of 1984 and related OMB Circular A -133. The independent auditors' ■
report on the general purpose financial statements and combining and individual fund
statements and schedules is included in the Financial Section of this report, which ■
immediately follows the Introductory Section. The independent auditors' reports related ■
specifically to the Single Audit are provided under separate cover.
Awards. Fiscal year 1990 -91 was the first time in the City's history that it prepared a
Comprehensive Annual Financial Report. It was therefore particularly gratifying that the
■
Report received both state and national awards for excellence in financial reporting.
The City has been fortunate to receive both awards each year since.
■
The Government Finance Officers Association of the United States and Canada'
■
(GFOA) awarded a Certificate of Achievement for: Excellence in Financial Reporting to '
■
the City.of Newport Beach for its Comprehensive Annual Financial Report for the fiscal:';:+
year ended June 30, 1999. . The Certificate of Achievement is a prestigious national
■
award recognizing conformance with -the highest standards for preparation of state and..
local government financial reports.
■
In order to be awarded a Certificate of Achievement, a government unit must publish an',= !
■
easily readable and efficiently organized comprehensive annual financial report, whose';
■
contents conform to program. standards. Such a program must satisfy both generally: =
accepted accounting principles and applicable legal requirements..
■
A Certificate of Achievement is valid for a period of one year only. We.believe our
■
current report continues to conform to the Certificate of Achievement program
■
requirements, and we are submitting it to GFOA.
■
The California Society of Municipal Finance Officers ( CSMFO) is a state organization
which sponsors extensive training and emphasizes high standards in all aspects of
■
municipal finance operations, including financial reporting. As a result of last year's
report, the City of Newport Beach is fortunate to have remained among the ranks of
■
California cities that have met the rigorous standards of financial reporting required of
■
recipients of the CSMFO Outstanding Financial Reporting Award. We will be submitting
the report to CSMFO for consideration again this year as well.
■
■
COVER AND DIVIDER PAGES
■
In keeping with the City's custom, this is the same design that was used on the cover of
the three Budget Document publications covering the same fiscal year as this report.
■
■
XVIll
■
Divider pages contain scenes of coastal Newport Beach, Newport Harbor, and various
settings within the City. These photographs were obtained from several sources,
including photos contributed by staff, but the Newport Beach Conference and Visitors
Bureau was the source of many of the images, and their help and cooperation is greatly
appreciated. p
NI' ^5 I
}2 Y R
ACKNOWLEDGM
Preparation of this --report cbUlda- not,have been accomplished ,wiftd- .Ahs,,efficient and
dedicated _seruices of a 'nur iber „of personnel. It would be''.difficult to`,n a e,them all.
Virtually everyone in fhe Accoupting Division ,and the Print .Shop .contnbutd to the
project K addition, members of the'Adrriinistrative Services C3epartrri' nt wt5uld�iike to
thank the Mayor and City= Council' for' their interest and=,support in planning= „and
co dductina thb:financial obbratidfir of the City in a responsible and progressive rna�i er.
)uRbAF l istF.tnkeby 3 Celoyees: m
(
xix
Horn
r73L. Bludau.”
ai 2'4ibar
; "'s ° Dennis C. Danner'
Ci ty Manager
"' Adrninistrati�t`e„Service`s Direct(
4u
VV!NAVVV``'
ib
Y£� FyS r�aYfrg��C %� �t Wag MY
v Vvy^x+W1
p�vlf }INx>
N^ "NV
L,
1
xix
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Newport Beach,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1999
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
GLVA „p, President
��
Executive Director
xx
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California Society of
J11unicipal finance 0 Vt
ce rs
Certificate of Award
Outstanding Financial Reporting 1998 -99
Presented to the
City ofNeupmy Beach
This cenlfkxe is iuued in rerageWan of eneering profadonal rtandarI, and arh'erla In reporting
whkh reflect a high levef ofquaw fn the annual fmandal rtatemena
and in the underlying accounting eyriem from which the n7om were prepared
February 28, 2000
re4ubvall TttYbfalSbWer4 msvuate
Dedicated to Excellence in Municipal Financial Management
xxi
NEWPORT BEACH CITY OFFICIALS
City Council
John Noyes
Mayor
]an D8bav Gary Adams
Council Member Mayor Pro Tern
Dennis D. O'Neil Tbnn W. Thomson
Council Member Council Member
Principal Administrative Officers
LaVonne M. Harkless
City Clerk
Homer L. B|udau
City Manager
Norma Glover
Council Member
Tod W. Ridgeway
Council Member
Robert H. Burnham
City Attorney
Sharon Wood .................................. Assistant City Manager/Director of Community & Economic Development
DaveKKf ............................................................................................................... Deputy City Manager
Dennis C Danner ...................................................................... Administrative Services Director/Treasurer
Bob McDone|| ................................................................................................................... Chief ofPolice
TimRiley .................................................................................................................. Fire & Marine Chief
David E.N|ederhaus ......................................................................................... General Services Director
LaDonnaKienitz...................................................................... Community Services Director/City Librarian
Patricia L Temple ......................................................................................................... Planning Director
JayBbettar ...................................................... .......................................................... Building Director
Don Webb ............................................................. :: .......................... Public Works Director/City Engineer
. xxo
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CITYMANAGER
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ELEOTEOOFFFICIALS C IL APPOINTED BOARDS & COMMISSIONS
9 Fiscal Year2000-2001
Augusr29, 2000
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xxiv
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1100 IN STREET, SUITE C
■ ASSOCIATES, L.L.P. IRVINE, CALIFORNIA 9 614
(949)474.2020
■ Fax (949) 263 -5520
■ City Council
■ City of Newport Beach, California
■ Independent Auditors' Report
■ We have audited the accompanying general purpose financial statements of the City of Newport
Beach, California as of and for the year ended June 30, 2000, as listed in the table of contents.
■ These general purpose financial statements are the responsibility of the management of the City
of Newport Beach, California. 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,
■ 2000, and the results of its operations for the year then ended in conformity with generally
accepted accounting principles.
■ As discussed in Note 20 to the general purpose financial statements, the City of Newport Beach
■ changed its method of accounting for taxpayer- assessed tax revenues in its governmental funds
in order to comply with governmental Accounting Standards Board Statement No. 22.
■ The combining, individual fund, and account group financial statements and schedules listed in
■ the 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. 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 scope of our audit did
not include the statistical schedules listed in the table of contents and we do not express an
■ opinion on them.
■ In accordance with Government Auditing Standards, we have also issued a report dated October
30, 2000 on our consideration of the City's internal control over financial reporting and our tests
■ of its compliance with certain provisions of laws, regulations, contracts and grants. That report
is an integral part of an audit performed in accordance with Government Auditing Standards and
■ should be read ��in conjunction with this report in considering the results of our audit.
■ La dJ 'k►-d ltss� s� L.L.p
■ October 30, 2000
■
1
■ MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
CONRAD AND
CERTIFIED PUBLIC ACCOUNTANTS
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CITY OF NEWPORT BEACH
Combined Balance Sheet - All Fund Types and
Account Groups
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June 30, 2000
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Governmental Fund Types
.
Special
Debt
Capital
Assets and Other Debits
General
Revenue
Service
Projects
Cash and investments (Note 2)
$ 21,894,718 $
14,443;006
$ 887,855
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Accounts receivable and accrued revenues
3,381,069
353,518
$ 15,400
525
Lease Receivable -
545,241
Due from other governments (Note 1)
4,159,871
1,469,793
Due from other funds (Note 11)
1,879,663
Inventories of materials and supplies, at cost
169,819
Restricted assets - cash and investments (Notes
2 and 4) 149,588
571,091
6,699,273
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Other assets -
84,576
Notes receivable ( Notel)
50,000
-
Fixed assets (Note 3)
-
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Amount Available in debt service fund -
- -
Ammnt.to be provided for payment
of general long -term debt
-
Total Assets and Other Debits
$ 31,769,304 $
16,811 ,558
$ 586,491
$ 7,587,653
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.. Liabilities, Fund Equity and Other Credits
.
Liabilities:
Accounts payable and accrued liabilities
$ 2,967,904 $
558,212
$ 839,923
.. Accrued payroll
1,849,825
26,498
Due to other funds (Note 11)
1,231,986
404,182
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Deferred revenue
901,010
524,167
Due to bondholders
■
'Due to others
Deposits
2,472,232
220,567
Current portion of debt (Note 4)
Long -term debt (Note 4)
.
Total Liabilities
8,190,971
2,561,430
1,244,105
Fund. Equity and Other Credits: -
-
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Investment in general fixed assets
Contributed capital (Note 13)
Retained earnings (accumulated deficit)
_-
Fund balances (Note 14):- -
--
-
-
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Reserved (Note 14) -
- 3,188,870-
2,287500
$ 571,091
8,623,043
Unreserved, designated (Note 14) --
20,411,463
7,125,049
-
- - -: - -- 819,594
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Unreserved, undesignated
4,837,279
15,400
(99,089)
Total Fund Equity and Other Credits
23,578,333
14,250,128
586,491
6,343,548
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Total Liabilities, Fund Equity - -.
and Other Credits -
$ 31,769,304 $
16,811,558
$ 586,491
$ 7,587,653
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proprietary Fiduciary
Fund Types Fund Type Account Groups
General General
5
Internal
Fixed
Long -Term
Totals (Memorandum Only)
Enterprise
Service
Agency
Assets
Debt
2000
1999
$ 16,099,543
$
5,899,365
$ 8,728,805
$ 67,953,292
$ 49,700,969
3,963,666
8,037
7,722;215
6,975,822
545,241_.
665,000
5,629,664
10,095,347
-
1,879,663
. 5,937,324
108,463
278;282
_ ( 180,850
1,466,971
1,714,885
10,601,808
11;149,132
- 84,576
219,496
50,000
54,471,632
6,307,447
$ 86,885,575
147,664,654
144,418,614
$ 586,491
586,491
594,1 B6, --
10,526,553
10,526,563
11,722,249
$ 76,001,812
$
12,323,312..
$ 10,443,690
$ 86,885,575
$ 11,113,054
$253,522,449
$ 241,651,989
$ 786,358
$
237,803
$ 5,390,200
$ 8,006094
103,744
65,407
2,645,474
1.,553,768
243,495
1,879,663
51937,324
1,425,177
1,566,732
$ 7,454,494
7,454,494
7,330,297 .
2,989,196
2,989,196
2,821,671
81,842
2,774,641
3,482;295
1,380.836
4,566,385
5,947,221.
.5,942,634
12,095,000
14,124,094
$ 11,113,054
37,332,148
39,018;827
.14,691,275
18,993,689
10,443,690
11,113,054
67,238,214
75,659,642 -
- $ 86,885,575
86;885,575
82,758;956 --
15,803,897
4,097,648
-
19,901,545
19,901 - ,645 --
45,506,640
(10,768,025)
34,738,615
24,182,172
--
-
-
-
-- 11,648,804
8,061,160
_
-
- 28,356,106 -
-i -- 26,234,985
-
-
-
- 4,753,590-
'. -- 4,847,529
61,310,537
(6,670,377)
86,885,575
186,284,235
165,992,347
$ 76,001,812
$
12,323,312
$ 10,443,690.
$ 86,885,575
$ 11,113,054
$ 253,522,449
$ 241,651,989
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, 2000
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Governmental Type Funds
Special
General
Revenue
Revenues:
Taxes -
$ 58,846,994
Licenses, fees and permits
2,244,020
$ 2,003,925
Intergovernmental revenue -
6,622,085
4,245,078 :
Charges for services -
9,049,844
18,683
Fines, forfeitures and penalties
3,227,351
214,820
Revenue from use of money and property
6,070,417
5,711,298
Contributions
345,258
248,431
Other -- - - - -
659,331
170,122
- - Total Revenues
87,065,300
12,612,357
Expenditures:
Current:
General government
9,441,381
Public:safety
41,271,457
464,476
Public works.
16,492,556
406,074
Community development
3,727,624
543,577
Community services
6,916,735
1,015,762 .
...Capital Outlay
5,049,821
7,533,428
Debt Service:
Principal (Note 4)
858,525
119,856
Interest and fiscal charges
134,360
116,516
Total Expenditures
83,892,459
10,199,689
!.: Excess (Deficiency) of Revenues
--
Over (Under) Expenditures
3,172,841
2,412,668
Other Financing Sources (Uses):
Operating transfers in (Note 12)
- 4,516,587
Operating transfers out (Note 12)
(2,838,020)
(4,258,230)
Proceeds from refunding certificates
Payment to refunded certificate escrow agent
Proceeds from capital leases
Proceeds from sale of fixed assets
458,895
Total Other Financing Sources (Uses)
2,137,462
(4,258,230)
Excess (Deficiency) of Revenues and
Other Financing Sources Over (Under)
Expenditures and Other Financing Uses
5,310,303
(1,845,562)
Fund Balances, July 1, as restated (Note 20)
18,268,030
16,095,690
Fund Balances, June 30
$ 23,578,333
$ 14,250,128
See Accompanying Notes to General Purpose Financial
Statements.
19
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Debt
. Capital :.
Totals (Memorandum Only)
Service
Projects
$ 58,846,994
$ 52,903,507 -
4,247,945
5,680,496
10, 867,163
15,189,324
9,068,527
8,779,962
3,442,171
3,290,019-
$ 28,732
$ 595,153
12,405,600
10,666,337 -
85,484
679,173
31,527,693
829,453
337,006
28,732
680,637
100,387,026
128,374,344
9,441,381
7,471,850
41,735,933
. 40,514,411. ,
16,898,630
16,846,674
4,271,201
4,688,087
7,932,497
7,733,720
1,400,871
13,984,120
50,684,045
225,000
1, 203, 381
940,528
341,090
591,966
311,583
566,090
1,400, 871
96, 059,109.
129,190, 898
(537,358)
- . (720,234)
4,327,917
(816.554)
529,663
5,046,250
4,032,949
(7,096,250)
(3,782,949)
7,330,000
-
-
-
-
(7,876,093)
11950,94C
458,895
198,684
529,663
(1,591,105)
1,853,535
(7,695)
(720,234)
2,736,812
1,036,981
594,186
7,063,782
42,021,688
38,112,693
$ 586,491
$ 6,343,548
$ 44,758,500
$ 39,149,674
-7
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, 2000
Revenues:
Taxes
Licenses, fees and permits
Intergovernmental revenue
Charges for services
Fines, forfeitures and penalties
Revenue from use of money and property
Contributions
Other
Total Revenues
Expenditures:
Current:
General government.
Public safety
Public works ,
Community development
Community services
Capital Outlay
Debt Service:
Principal (Note 4) .
Interest and fiscal charges
Total Expenditures .
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Proceeds from capital leases
Proceeds from sale of fixed assets
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues
and Other Financing Sources
Over (Under) Expenditures
General Fund
9,317,316
9,441,381
variance
41,181,306
41,271,457
Favorable
Budget
Actual
(Unfavorable)
$ 53,085,500
$ 58,846,994
$ 5,761,494
1,929,716
2,244,020
314,304
6,784,736
6,622,085
(162,651)
8,319,971
9,049,844
729,873
2,463,800
3,227,351
763,551
5,723,999
6,070,417
346,418
244,949
345,258
100,309
111,366
659,331
547,965
78,664,037
87,065,300
8,401,263
9,317,316
9,441,381
(124,065)
41,181,306
41,271,457
(90,151)
16,785,977
16,492,556
293,421
3,857,916
3,727,624
130,292
6,920,098
6,916,735
3,363
6,669,370
5,049,821
1,619,549
1,152,545
858,525
294,020
255,739
134,360
121,379
86,140,267
83,892,459
2,247,808
(7,476,230)
3,172,841
10,649,071
3,889,049
4,516,587
627,538
(2,300,000)
(2,838,020)
(538,020)
30,200
458,895
428,695
1,619,249
2,137,462
518,213
and Other Financing Uses (5,856,981) 5,310,303
Fund Balances, July 1, as restated (Note 20) 18,268,030 18,268,030
Fund Balances, June 30 $ 12,411,049 $ 23,578,333
See Accompanying Notes to General Purpose Financial Statements.
91
11,167,284
$ 11,167,284
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(209,000) (4,258,230) (4,049;230)
(972,250) (1,845,562)
16,095,690 16,095,690
$ 15,123,440 $ 14,250,128
(873,312)
$ (873,312)
A
Special Revenue Funds
Variance
Favorable
Budget
Actual
(Unfavorable)
$ 2,009,865
$ 2,003,925 $
(5,940)
5,646,920
4,245,078
(1,401,842)
16,500
18,683
2,783
61,102
214,820
153,718
5,336,806
5,711,298-
374,492
185,000
248,431
63,431
31,069
170,122
139,053
13,287,262
12,612,357
(674,905)
518,978
464,476
54,502
379,185
406,074
(26,889)
708,607
543,577
165,030
1,117,689
1,015,762
101,927
11,089,681
7,533,428.
3,556,253
119,856
119,856 .
116,516
116,516
14,050,512
10,199,689
3,850,823
(763,250)
2,412,668
3,175,918
(209,000)
(4,258,230)
(4,049,230)
(209,000) (4,258,230) (4,049;230)
(972,250) (1,845,562)
16,095,690 16,095,690
$ 15,123,440 $ 14,250,128
(873,312)
$ (873,312)
A
CITY OF NEWPORT BEACH
Combined Statement of Revenues, Expenses
and Changes in Retained Earnings
All Proprietary Fund Types
For the Year Ended June 30, 2000
Internal
Enterprise Service
Operating Revenues:
Charges for services
Contributions
Licenses, Fees and Permits .
Other
Total Operating Revenues
Operating Expenses:
Purchase of water
Salaries and wages
Depreciation
Professional services -
- Maintenance and supplies
Fleet pars and supplies
Systems maintenance
Workers' compensation
Claims and judgments
Disability
Compensated absences
Other
Total Operating Expenses
Operating Income
Nonoperating Revenues (Expenses):
Intergovernmental revenue
Interest income
Other income
Gain on sale of fixed assets
Interest expense
Bond issuance costs - -
Investment. recovery
Total Nonoperating
Revenues(Expenses)
Income Before
Operating Transfers
Operating transfers
Operating transfers in
Operating transfers out
Total Operating Transfers
Net Income
Retained Earnings
(Accumulated Deficit), July 1
Retained Earnings
(Accumulated Deficit), June 30
$ 19,820,729 $ 9,920,661
102,864
142,679 8,693.
20,066,272 9,929,354
5,165,205
3,152,021-
913,492
- 2,204,638
1,370,376
1,753,384
45,444
857,785
511,721
1,369,506
300,193
1,531,591
1,328,403
1,788,555
104,165
1,292,220
1,264,659
15,929,283 7,654,569
4,136,989 2,274,785
592,528
480
(551,668)
1,835,563
1,876,903
6,013,892
6,013,892
39,492,748
103,695
165,095
(51,024)
217,766
2,492,551
2,300,000
(250, 000)
9 nsn nnn
4,042,001
(15,310,576)
Totals (Memorandum Only)
$ 29,741,390 $ 29,008,954
102,864 416,500
151,372 232,330
29,995,626. 29,657,784
5,165,205
4,975,890
4,065,513
4;070;616
3,575,014
3,395,757
1,798,828
1,766,822
1,369,506
- 1,682,682,
300,193
350,326.'`
1,531,591
1,868512
1,328,403
929,622'
1,788,555
2,898 530
104,165
82,262
1,292,220
1j29406',,
1,264,659
1.190 633
23,583,852
24,341,056
6,411,774
5,316,726`+..
160....a..,�.,,.
696,223
516,132
27,742
165,575
103,893.=`
(602,692)
(664,823)'
(578,091)
1,835,563
2,094,669 (596,907)
R Fr1R dd d719 R1Q
2,300,000
(250,000) (250,000)
2,050,000 (250,000)
10,556,443 4,469,819
24,182,172 19, 712, 353
$ 45,506,640 $ (10,768,025) $ 34,738,615 $ 24,182,172
See Accompanying Notes to General Purpose Financial Statements.
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11
CITY OF NEWPORT BEACH
Combined Statement of Cash Flows
All Proprietary Fund Types
For the Year Ended June 30, 2000
Cash flows from operating activities:
Operating income
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation
Intergovernmental revenue
Other revenue -
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable -
_ - (Increase) decrease in accrued revenue
(increase) decrease in inventories of materials and supplies, at cos
..- Increase . (decrease) in accounts payable
Increase (decrease) in accrued payroll
Increase (decrease) in accrued interest payable
Increase (decrease) in due to other funds
Increase (decrease) in deposits
Increase (decrease). in workers' compensation
Increase (decrease) in general liability
Increase (decrease) in compensated absences
.. Total adjustments
Net cash provided by operating activities
Cash flows.from noncapital financing activities:
Operating transfers from other funds
'Operating transfers to other funds
Net cash provided by (used for) noncapital financing activities
Cash flows from capital and related. financing activities:
Acquisition of capital assets
Proceeds from revenue bond. refunding _ -
Cost ofissuance
Payment to refunded bond escrow agent
Principal payments - - Proceeds from sale of capital assets
Trustee Fees
Interest paid
Net cash used for capital and related financing activities
Cash flows from investing activities:.. -
Investment recovery -
Interest on investments
Net cash provided by investing activities -
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, July 1
Cash and cash equivalents, June 30
Noncash Activities:
Contributed capital (note 13)
Acquisition of equipment by capital leases
See Accompanying Notes to General Purpose Financial Statements.
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Internal
Enterprise
Service
$
4,136,989
$
2,274,785
■
2,204,638
1,370,376
■
388,365
(5,036)
t
(36,187)
(614,153)
27,127
17,950
-.(40,425)
(18,446)
(91,382)
-
(12,203)
.�
272,812
(261,445)
■
439,299
1,874,769
1,766,521
■
6,011,758
4,041,306
■
2,300,000
(250,000)
r
2,050,000
(843,050)
(1,125,936)
r
-.
(1,025,000)
(611,385)
480
165,100
-
(551,668)
_
(51,024)
(2,419,238)
(1,623,245)
1,835,563
592,528
103,695
2,428,091
103,695
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6,020,611
4,571,756
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11,545,903
1,327,609
$
17,566,514
$
5,899,365
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$
$
r
$
-
$
725,454
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Totals (Memorandum Only)
2000 1999
$ 6,411,774. $ 5,316,726
3,575,014 3,395,757
160
27,742
388,365
(916,057)
(5,036) -
5;022
(36,187)
(41,679)
(587,026)
(686,183)
(22,475)
- 89,201
(16,446)
(158,184)
(91,382)
{156,757)
(12,203)
(17,899)
272,812
(183,715)
(261,445)
697,507
439,299
(49,865)
3,641,290
2,163,234
10,053,064
7,479,960
2,300,000
516,132
(250,000)
(250;000) .
2,050,000
(250,000) '.
(1,968,986)
(2,802,182)
$ 23,465,879
14,119,780
(158,184)
(15,223,909)
(1,636,385)
(483,644) _
- - 165,580-
218,562 - -
(750)
(602,692)
(414,684)
(4,042,483) (4,745,011)
696,223
516,132
2,531,786
516,132
10,592,367
3,001,081
12,873,512
9,872,431
$ 23,465,879
$ 12,873,512
$ 725,454 $ 133,443
13
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NOTES TO
FINANCIAL STATEMENTS.
17
�_i
CITY OF NEWPORT BEACH
Is Notes to General Purpose Financial Statements
June 30, 2000
!f (1) Summary of Significant Accounting Policies
The financial statements of the City of Newport Beach (the "City ") have been prepared in
conformity with, r, Generally Accepted Accounting Principles' ( "GAAP ") as applied to
government units. The Governmental Accounting - Standards Board,( "GASB ") is the
accepted standard - setting, body for establishing governmental accounting, and financial
reporting principles. The more,significant of the City's accounting policies aIre described
below. <,
Description of Reporting Entity
• The City of Newport Beach was incorporated on September 1,. 1906. The current City
Charter was adopted in 1954. The City operates :under al. Council - Manager forrrr of
government and:.'provides the following ^services: public safety (police;. fire,' and.manne),
!� highway and streets; cultural and recreation, public improvements, planting and zoning,
R utilities, and general administrative services.
. The.financial- statements present the financial activity of theCity of Newport Beach (the'
primary governnent).and its component unit. The component unit discussed,helow is
included in the - City's reporting entity because of the significance of its ^operational or
financial relationship with the City. This entity is legally separate from the City. HoweveG
J] the City of Newport Beach's elected officials have, continuing full or partial accountability .
for fiscal matters `of the component unit. The financial reporting entity consists of (1) the
t City, (2) organizations for which the City is financially accountable,.6nd,(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 misleadin9,or incomplete.
An organization is fiscally dependent on the primary govemment ifit is unable to adopt its
budget, levy taxes or set rates or charges,, or issue bonded debt without approval by the
primary government. In. a ,blended presentation,:,,a component .units' balances and
transactions are reported in a manner simiiar to the balances and transactions ofthe City.
Component units are presented on 'a blended basis when the component unit's governing
body is substantially thesame as. the City's or, the component unit provides services
almost entirely to the City.
. u,c, ivcc vvn iuv,,cu v, m -.
' The financial statements of the City of Newport Beach include the financial activities of the
Newport Beach Public Facilities Corporation (the "Corporation "). The Corporation was
formed on March 9, 1992, for the purpose of assisting the City of Newport Beach in the
financing of public improvements, including a public library. The 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.
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
•
Basis of Presentation - Description of Funds and Accounting System
The City uses funds and account groups to report its financial position and results of ■
operations. Governmental accounting systems are organized and operated on a fund
basis. Fund accounting is designed to demonstrate legal compliance and aid financial
management by segregating transactions related to certain City functions or activities. A ■
fund is defined as an independent fiscal and accounting entity with a self - balancing set of
accounts recording cash and other financial resources, together with. all relate& liabilities
and residual equities or balances, and changes therein, which are segregated for the
purposes of carrying out specific activities or attaining certain objectives in accordance
with special regulations, restrictions or limitations. a
The combined financial statements in this report are grouped into three broad fund
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categories containing seven generic fund types and into two account groups as follows:
Governmental Fund Types
'
General Fund - The General Fund is the general operating fund of the City. The
General Fund is used to account for all financial resources, except those required to"—
be accounted for in another fund.
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Special Revenue Funds - The Special Revenue Funds are used to account for the
proceeds of specific revenue sources or to finance specified activities as required by
law or administrative regulation.
Debt Service Fund - The Debt Service Fund is used to account for the accumulation
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of resources required for the payment of general long-term debt principal and
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interest.
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Capital Pro act Funds - The Capital Project Funds are used to account for financial
resources used for the acquisition or construction of major capital facilities,other than
those financed by proprietary funds:
Proprietary Fund Types
Enterprise Funds - The Enterprise Funds are used to account for operations that
provide services to the general public, which are financed primarily by user charges
or where the periodic measurement of net income is deemed appropriate.
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Internal Service Funds - The Internal Service Funds are used to account for the
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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.
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
h
assets held by the City
iernmental units and/or
ad Assets Account Group - The General Fixed Asset Acc
punt for: the cost of capital assets owned by .the City, other
the proprietary funds.
1g -Term Debt Account Group - The General Long - Term..
ed to 'account -;for long -term debt of the City, except for
e proprietary fund types`
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and financial reporting treatment applied to 'a fund is detE
us.'All governmental funds are accounted for using a cu
rement focus. With this measurement focus, only expenc
rrrent liabilities generally are included on the balance she
se funds present increases (i.e., revenues and other Einar
.e., expenditures and other financing uses) in net- .financ
wernmenta(fund; type revenues represented by non -curre
they become current.
rids are accounted for on a flow off economic resources
measurement focus, all assets and, all liabilities associ
se funds are included on the - balance sheet. rFund ec
-ces) is segregated into contributed' capital and `retai
oprietary fund -type operating statements present ,inc
icreases,(e.g., expenses), in net economic resources.
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With this
on of the
p is
e of
by
ament
the
net
rnings
(e.g.,
Fiduciary fund-types are accounted for according to the nature dfth6i,fund. The City has
only Agency type funds, which are purely custodial in_ nature (assets equal liabilities) and,
thus, do not involve measurement of results of operations.
Basis of Accounting
The modified accrual basis of accounting is followed for the governmental and fiduciary
fund types (General, Special Revenue, Debt Service, Capital Projects, and Agency
Funds). Under the modified accrual basis of accounting, revenues are recognized when
they become susceptible to accrual, that is, measurable and available to finance
expenditures of the current period or soon thereafter to be used to pay liabilities of the
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The ac
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With this
on of the
p is
e of
by
ament
the
net
rnings
(e.g.,
Fiduciary fund-types are accounted for according to the nature dfth6i,fund. The City has
only Agency type funds, which are purely custodial in_ nature (assets equal liabilities) and,
thus, do not involve measurement of results of operations.
Basis of Accounting
The modified accrual basis of accounting is followed for the governmental and fiduciary
fund types (General, Special Revenue, Debt Service, Capital Projects, and Agency
Funds). Under the modified accrual basis of accounting, revenues are recognized when
they become susceptible to accrual, that is, measurable and available to finance
expenditures of the current period or soon thereafter to be used to pay liabilities of the
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000 r
Cash and Cash Equivalents
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For purposes of the Statement of Cash Flows, cash and cash equivalents are defined to
be cash on hand, demand deposits and highly liquid investments with a maturity of three
months or less from the date of purchase. For financial statement presentation purposes,
cash and cash equivalents are shown as cash and investments and restricted cash and ■
investments in the proprietary funds.
Investments ■
Investments are generally stated at fair value. ■
Cash and investments are pooled to maximize investment yields. The net change in fair
value and interest earned on the investments is allocated to the respective funds based
on each fund's average monthly cash and investments balance.
The City's:investment in LAIF is $5,290,417 at June 30, 2000. This investment value is
based on information provided by the State Treasurer's Office. The carrying value of the
City's position in the fund is materially consistent with the fair value of the fund shares.",'
This pool is under the regulatory oversight of the State Treasurer's Office. The LAIF Board
consists of five members as designated by Statute. The Chairman is the State Treasurer,
or his designated representative. Two members qualified by training and experience in the
field of investment of finance, and two members who are treasurers, finance.or fiscal
officers or business managers employed by any County, City or local district or municipal }
corporation of this state, are appointed by the State Treasurer. The term of each
appointment is two years, or.at the pleasure of the appointing authority.
I'll City's investment in Los Angeles.County Pooled Fund -is $87,763 at June 30, 2000.
This investment value is based on information provided by Los Angeles, County
Treasurer's office. The carrying value of the City's position in the fund is materially
consistent with the fair value of the fund shares. This pool is under the regulatory ■
oversight, of the Los Angeles County Treasurer's Office. The oversight committee is
comprised of the following Los Angeles County officers: treasurer and tax collector, chief
administrative officer, auditor - controller, chief engineer and general manager (County
Sanitation District) and the director of school financial services (Office of Education).
Lease Receivable
Lease receivable represents lease payments due on property donated to the City during
fiscal year 1993. The lease term on this property runs through fiscal year 2007. As the
revenue recognition criteria have not been met, a corresponding deferred revenue has
been recorded.
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CITY OF NEWPORT BEACH
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Notes to General Purpose Financial Statements
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June 30, 2000
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Due From Other Governments
Due from other governments represents capital project billings, and pending transfers of
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taxes and fees collected by other government agencies. As of June 30, 2000, the balance
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of this account Was $5,629,664.
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Inventories,
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Inventories are valued at cost, which approximates market, .using the first -in;' first -out
method. The City follows the °consumption method for inventory control. The -costs of
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goyernmentai fund type inventories are recorded as expenditures when consumed_
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Notes Receivable ,
Included in notes receivable ma $50,000'loan to the City Manager to purchase ,a home-in;,,
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the City. As required .by the City Charter and the employment agreement; the City": `
Manager has to; establish residency in, and become an elector of, the City of Newport ,
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Beach. The City; Manager shall `pay a simple interest on the °;unpaid balance oil the loan,' `
Which shall be;due on or, before September 151 of each fiscal year.`
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The interest rate on the loan shall be the average rate of return on all City investments:
during ,the fiscal,:year. The City Manager may, but is not required to; make payments to
reduce =the principal amount I of theloan atany time and payments to reduce,the, principal
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shall not be subject to any pre- payment penalty. The entire unpaid I balance of the loan,is,
due after ten (1;0) years from the effective date of the Amended:employment agreemenf.or
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at the City Manager's separation from City employment.
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General Fixed Assets
The general fixed assets of the City are accounted for in a separate self - balancing
account group; described as the "General Fixed Assets Account Group." These' general
fixed assets are capitalized at historical cost or estimated historical 'cost if actual historical
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cost is''not available. Donated faced assets are valued at their estimated fair market value
on the date donated. Fixed assets, acquired through lease obligations are valued at the
present value of_future. lease payments at the date acquired. Assets in the general fixed
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asset account group are not depreciated.
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The City has elected not to capitalize the -cost of building or acquiring infrastructure fixed
assets (e.g., streets, bridges, curbs and gutters, storm drains, sidewalks, and light
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systems). Consequently, these items are not reflected in the City's combined financial
statements.
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements /
June 30, 2000
1
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: position and operations.
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(2) Cash.and, Investments
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The City has elected to poor all cash and investments of all funds, except for, funds
required to be held by outside fiscal agents under the .provisions of certificates of
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participation,,
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Cash and investments at June 30, 2000, consisted of the.following:
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Pooled cash deposits - $ 393,792
Pooled investments 67,559,500
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Total unrestricted cash and investments 67,953;292
Restricted cash and investments:
Cash and investments with fiscal agents 10,601,808
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Total cash and investments $ 78,555,100
Authorized Deposits /Investments
.
Under the provisions of the City's investment policy, and in accordance with Section
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53,601 of the California Government Code, the City may deposit and invest in the
following:
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4.. Certificates of Deposit °,(or Time Deposits)
=Negotiabler Certificates of Deposit
•' Bankers Acceptances
• U.S. Treasury Issues
• Federal Agencies Securities
• Commercial paper
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• Repurchase Agreements and Reverse Repurchase Agreements
• Passbook Savings Accounts
• Local Agency Investment Fund (State of California Investment Pool)
• County Investment Pools (Los Angeles and Orange)
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• Medium Term Notes
• Asset - backed securities
• Asset/Investment Management Agreements
• Municipal Bonds
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Deposits
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Deposits consist
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maintained in fins
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protection on the
banks
and ..saw
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
cash and demand deposits ,accounts "_Deposits in banks are
at8nstitutions that.provide Federal Depository Insurance Corporation
nk balances. The California Government Code requires California
and ` loan associations to secure :.a city's deposits_ by pledging
as collateral. The market value„ of pledged securities must equal at
2s
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
Investments
The investments that are represented by specific identifiable investment securities are
classified as to credit risk by three categories as follows:
Category 1 Insured, registered, or securities held by the City or its agent in the
City's name.
Category 2 Uninsured and unregistered, with securities held by the
counterparty,s trust department or agent in the City's name.
Cateaory 3 Uninsured and unregistered, with securities held
by the
counterparty or by its trust department or agent but not in
the City's
name.
The City's investments at June 30,
2000, are summarized below for the credit risk and <.
carrying amounts:
Category
Carrying
Amount
Pooled Investments
U.S. Treasury Notes
$6,286,531
$6,286;531
Federal Home Loan Bank
12,800,238
12,800 -,238
Federal Home Loan
Mortgage Corporation
3,738,775
3,738,775
Federal National Mortgage .
Association
13,682,066
13,682,056
Other Government
Securities
Money market funds*
Medium term notes
Commercial paper
State of Californian
Local Agency
Investment Fund*
Los Angeies County
Pooled Fund*
2,219,461
15,315,348
4,623,323
2,219,461
3,515,588
15,315,348
4,623,323
5,290,417
87,763
Total pooled investments - $58,665,732 $67,559,500
Investments with fiscal agents:
Mutual funds*
* Not subject to categorization.
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$10,601,808
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CITY OF NEWPORT BEACH
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Notes to General Purpose Financial Statements
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June 30, 2000
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(3) Fixed Assets
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A summary of the changes ih General Fixed Assets is * follows:
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Balance.
Balance
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July 1, 1,999 Additions
Deletion's ;
June 30, 2000
Land
$27948,681 -
($252,000)
„127,696,681
Structures
42,740;816 _. 1,743;902
(108,000)
444,346,718
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Equipment
12,099,459. 3,056,530
(313;813)
$14;842,176
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$82,758,956 $4,800,432
($673,813)
$86,885;575
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A summary of the changes in the Proprietary Fund Type fixed assets is as follows-,
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Balance
Balance ;
July 1, 1,999 Additions'.
-Deletions `<
June, 30, 2000
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Enterprise Funds.
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Land'
$3,055,613
-
X3;055 613
Structures
100,365,336 $1,523,076
($448,000)'
1101,440,412 '
Equipment
671;1'71
671 171
Work`in pr'ogress
680,026
"' (660,026)
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46- —$i 523076
�$?i057�3i�
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Less accumulated
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depreciation
(48,938,926) (2,204,638}
448;000
(5Q 695;5fi4}
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Net
$55,833,220 ($681,562)
;($680,026)
$54;471•;632
InternaF Service " - Funds:
Equipment
1,861,390.
$11,416,583 $1,961,3'
($4,47,091)
" $12,820,882
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Less`: accumulated
depreciaton.
(5,590,145) (1,370,377)
447,086
($6,513,436)
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Net
$5,826,438 $481,013
($5)
$6,307,446
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
Annual Amortization Requirements of Long -Term Debt
The annual requirements to amortize outstanding debt included in the General Long -Term
Debt Account Group as of June 30, 2000, are as follows:
Year Ending Certificates of Note
June 30 Participation Payable
2001
2002
2003
2004
2005
Thereafter
$562,223
562,940
563,140
562,685
561,688
7.898.334
$10,711,010
Less: amount.repre-
senting interest (3.866.0101
$6.845.000
Proprietary Funds Long -Term Debt
Enterprise Fund
$236,372
236,372
236,372
236,372
236,372
2.232.191
$3,414,051
(944.6521
$2.469.399
Capital
Leases
$974,410
960,747
$1,935,157
(136.502)
$1.798 655
Total
$1,773,005
1,760,059
799;512
799,057 .
798,060
10.130.525
$16,060,218
(4.947.164)
$11.113,054
A summary of changes in long -term debt of the enterprise funds is as follows:
Balance Balance
July 1. 1999 2000
Water Revenue Bonds ' `- ;$14,225,000
Less curient.portion (1,025.000)
Total long -term $13.200.000
Adunions Retirements
$1.025.000
June 3Q,
$13;200,000
(1.105.000)
112.095A00
The current portion in the accompanying General Purpose Financial Statements includes
principal of $1,105,000 and accrued interest payable of $275,836 for a total of
$1,380,836.
• Water Revenue Bonds
In Fiscal Year 1998 -99, the City issued $14,225,000 of Refunding Water Revenue
Bonds to currently refund the 1994 Water Revenue Bonds used to finance the
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
was undertaken to reduce total debt
$481,153 and resulted m an'economic
pledge of net revenues of the water fui
payments over a ten -year period by
418,469. The bonds are secured by a
398 Serial'. Bonds bear interest ranging
from 3.6% to415%; At June 30, 2000,. the City has a required cash reserve balance of
$1,466,971 which`is recorded as a restricted asset. Ten annual-principal payments are
payable on August 1, `and semiannual interestpayments are payable on February 1
and'Auaust 1. At June 30..2000 the outstanding principal balance was $13,200,000,
bond deb
vas $275;836.
vrice requirements to maturity, i'r
interest areas tollows:'
:.Year Endihp June 30 `.
• Claims and Judgments
Of
J
($3,105591)
2001.
$1,656;6E
".' 7,359,810
2002'.`
1,655,22
2003
1,650,5
2004.
1,648,.1:
2005:
1,647,7!
Therea$er.
`;8.237.31
Total
$1, 6.495.7!
fnternat Sery0e. Funds
A summary of'changes in.long- term debt of.. the internal service
Balance
July 1, 1999
Additigtts
' Clairls and judgments
payable
$10',266,065
$3,116;958.
Compensated absences',
6,920;511
1,3291847
Capital'leases .
939,168
725;454
18;125744
$5,172,259
Less current portion
(41623,352)
Total long -term
$13,502x392
• Claims and Judgments
Of
J
($3,105591)
$10';277,432
(890,548)
".' 7,359,810
(811,385)
1,053,237
18,690,479
(4,566,385)
$14,124,094
The City retains the risk of loss for general liability and workers' compensation claims
as described in note (6). These amounts represent estimates of amounts to be paid
for reported general liability and workers' compensation claims including incurred -but-
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
not - reported claims based upon past experience, modified for current trends and
information. While the ultimate amount of losses incurred through June 30, 2000, is
dependent on future developments, based upon information from the City's attorneys,
the City's claims: administrators and others involved with the. administration of the
programs, City management believes the accrual is adequate to cover such losses.
The estimated liability at June 30, 2000, amounted to $10,277,432.
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• Compensated Absences
The City's policies relating to compensated absences are described in note 1. This
liability, to be paid in future years from available and future resources, at June 30,
2000, is $7,359,810.
• Capital Leases
Rolling Stock`Leases - Equipment Maintenance Internal, Service Fund: In the current
and prior fiscal years, the City entered into several- lease-purchase agreements,
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payable annually, as lessee for. financing the acquisition of a heavy duty street
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maintenance vehicles and fire trucks. The term of each lease is five years and each is r
payable annually. The interest rate for each lease is between 4.98% and 6.98% The
lease agreements qualify as capital leases for accounting purposes as the title
transfers at the end of the lease term or the lease contains a bargain purchase option.
The assets acquired during the current year, totaling $725,454, were classified as
equipment in the Equipment Maintenance Internal Service Fund.
Annual Amortization Requirements of Internal Service Fund Capital Lease Obligations
The annual requirements to amortize outstanding capitalized lease obligations
included in the Internal Service Fund as of June 30, 2000; are as follows:
Year Ending June 30 Capital Leases
2001 $577,838
2002 385,142
2003 108,781
2004 79,613
1,151,374
Less: amount representing interest 9( 8.137)
$1,053.237
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
Bonds outstanding at June 30, 2000 are as follows:
Series 1992 $ 91,000,000
Series 1996 100,000,000
Series 1999 125,000,000
The revenue bonds are subject to, at the option of Hoag Memorial Hospital Presbyterian, .
optional and mandatory tender for purchase. If no tender or purchase is made, varying
redemption payments on the 1992 bonds commence on October 1, 2013 and are required ■
to be made through October 1, 2022. For the Series 1996 bonds, if no tender for purchase
is made, redemption is required to be made on October 1, 2026. If no tender or purchase
is made for the Series 1999 bonds, redemption is required to be made on December,l,
2029.
(6) Risk Management— General Liability and Workers' Compensation .
The City is exposed to various risks of loss related to torts, theft of, damage to and .
destruction of assets, errors and omissions, injuries to employees, and natural disasters.,:,'s:
The City carries commercial insurance with independent third parties for loss risks
associated with real and personal property, and automotive liability. The City' purchases
fidelity bonds for employees in key positions. Settled claims from these risks have not''!'
exceeded commercial insurance coverage for the past three years. For general liability,
the Cit0as excess insurance coverage of $25 million per occurrence with a self - insured
retention (SIR) of $500,000.per occurrence.
For workers' compensation and employer's liability insurance, the City has excess .
insurance coverage of $1,000,000 per, occurrence with a $300,000 SIR. This coverage
provides for work- related accidents and diseases. ■
The Insurance.Reserve fund was established to account for costs associated with general
liability;' workers' compensation, and compensated absence benefits. The :Insurance
Reserve'fund.is accounted for as an internal service fund where assets, are set aside for
risk management,, administration, claim settlements and benefit distribution. A premium is
charged to each fund that accounts for part-time or full -time employees. The total charge
allocated to each of the funds is calculated using trends in actual experience after
considering unexpected and. unusual claims.
Fund Liabilities are reported when it is probable that a loss has occurred and the amount
of the loss can be reasonably estimated. Liabilities include an amount for claims that have
been incurred but not reported (IBNR). Claims liabilities are calculated considering the
effects of inflation, recent claim settlement trends including frequency and amount of
payouts and other economic and social factors. The liability claims payable include
$10,277,432 which represents the discounted present value at June 30, 2000; the claims
were discounted using an interest rate of five percent. ■
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
Unpaid claims, beginning of fiscal year
Incurred claims,(ncluding IBNR)
Claim payments.
Unpaid`claims, end of fiscal year
June 30;1999: June 30, 2000
$11,062,273
$10,266,065
21518,1.52
.3,116,958
(313141360)
(3,1051'591)
$10,266,065
$10,277;432
■ (7), Deferred Co'mpentatio'n -oian
■ The City offers its employees a• deferred: compensation plan created in accordance with
. Internal, Revenue Code Section 457. The plan, available to all City employees, permits
them to defer a'.portion of their salary, until future years. The, deferred= compensation iis '
only available to employees upon _certain conditions being met.
■ Due'to recently approvedefederal. legislation, the Section 457 plan assets were.placedilin
trust for the exclusive benefit. of all employees and their. beneficiaries. Therefore, ell
■ employee assets held in Section 457 plans are no longer the property of the City and are
■ no longerz subject to the claims of the City's general creditors. The assets under the plan,
which,are not included in the accompanying general purpose.financial statements, totaled
■ $46,826,796 at June 30,z 2000.
■ (8) Pension Plan
■ Plan Description - Defined Benefit Plan.
The City contributes to the California Public Employees Retirement; System (PE-RS), an
■ agent multiple- employer public employee defined benefit pension plan. PERS {provides
retirement and disability benefits, annual cost -of- living adjustments, and death benefits to
■ plan members.and be PIERS 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.
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Funding Policy
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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 contribute at an actuarially determined
rate; the current rate is 0.00% for non - safety employees and 6.255% for safety employees
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
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June 30, 2000
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of annual covered payroll. The contribution requirements of plan members and the City
are established and may be amended.by PERS.
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Annual Pension Cost
■
For 2000, the City's annual pension cost of $4,816,195 for PERS was equal to the City's
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required and actual contributions. The required contribution was determined as part of the
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June 30, 1997, actuarial valuation using the entry age normal actuarial cost, method.
GASB 27 requires that the actuarial valuation use data as of a valuation date-not more
■
than 24 months before the beginning of the employer's fiscal year. The actuarial
assumptions included (a) 8.25% investment rate of return (net of administrative
■
expenses); (b) projected annual salary increases that vary by duration of service, and (c)
2% per year cost -of- living adjustments. Both (a) and (b) included an inflation component
■
of 3.5 %. The actuarial value of PERS assets was determined using techniques that
smooth the effects of short-term volatility. in the market value of investments over a four-
■
year period (smoothed market value). PERS has combined the prior service and the
"single"
■
current service unfunded liability to establish a . funding horizon for the initial
unfunded liability. The amortization period of the "single" unfunded liability ends in the year
■
2016.
■
THREE -YEAR TREND INFORMATION FOR PERS ($ Amount in Thousands)
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Fiscal Annual Pension Percentage of Net Pension
Year Cost (APC) APC Contributed Obligation
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6130/98 7,175 100% 0
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6130/99 6,633 100% 0
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6130/00 4,816 100% 0
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6130199:
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Misc.
$94,28,T,..
$125,619
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Police
1571265' :
CITY OF NEWPORT BEACH
■
$251,552
Notes to General Purpose Financial
Statements
■
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June 30, 2000
■
SCHEDULE
OF FUNDING PROGRESS FOR PERS ($
Amount in Thousands)
■
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Actuarial Excess
Accrued- Assets
■
Actuari6F
Actuarial
Liability (Unfunded
Valuation
Value of
(AAL) AAL or °
Funded ',
Covered `
■
Date
Assets
Entry Age UAAL)
Ratio ``
Payroll
■
6130!97:
Misc.
$76,991
$90,827 ($13,836)
`' 84.8 °k
$20,960
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Police
-116,590,
120,123. (3,533)
97.1%
17,559 ,
■
Total
$193,581
$210,950 ($17,369)
91.8 % -
$38;519
■
6130198:
Misc
$$1,727
$107,619 ($25,892)
76A%
$22,1,06
■
Police
,
f 1.$6,973
144,358 (7,385)`.
97.50/p
18,821:
Total
$218 700
$251 977 raga 9771.
RR 99%
$40.927
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6130199:
Misc.
$94,28,T,..
$125,619
■
Police
1571265' :
170;345
Total `.
$251,552
$295;964.
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? Plan npgr.rintinn`= hpfinerl Cnntrihutin
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Excess
Assets
(Unfunded)
AALasa%
VA
Plan
ty entered into ,a defined contribution plan with
'),for all of its `part -time employees. Ina defin,
on amounts contributed to the plan plus invest
All part -time employees are eligible to participate from the date of employment. Federal
legislation requires contributions of at least 7.5% to ;a retirement plan, and City Council
resolved to match the.employees' contributions' of 3,75 %. The City's contributions for each
employee (and interest earned by the accounts) are fully. vested,immediately.
For the year ended June 30, 2000 the City's covered payroll for employees participating
in the plan was $1,931,289. The City made employer contributions of $72,423 (3.75% of
current covered payroll). Assets of the plan totaled $1,819,361 at June 30, 2000.
M
n
As established by a City Council approved Memorandum of Understanding between the ■
City and its employees, the City provides post - employment health care benefits. ■
Employees who retire from the City with seven years of service and participate in PERS
are eligible to receive health care benefits covering themselves and any qualified family`, ■
members from the City's insurance carrier, Health Net and PERS. The City'.pays 50% of °.
total plan premiums charged under the Health Net plan: while the active. and retired IN
employees split, the remaining premium at a rate. of 25 % each. The City: pays an °,A IN
portion of the PERS premium capping at $425 a month while the retired ?'
employees pay the remaining portion of the PERS premium. This program.is funded on a ,',. ■
pay- as- you-go basis. The City's expenditures for post - employment health care benefits for
fiscal years 1999 -2000 and 1998 -99 were $414,040 and $316,247, respectively. As of r.` ■
June 30, 2000, three hundred participants were eligible to receive benefits.
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements ■
■
June 30, 2000
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(9) Early Retirement Program ■
■
On June 30, 1993, the City implemented and offered an, Early Retirement Program to
certain employees whose retirement would lead to a permanent vacancy within the City ■
■
organization. The. Early Retirement Program provides participating employees with a
supplement to their normal PERS retirement benefits by an additional payment from the ■
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City. ■
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0) Post - Employment Health Care Benefits ■
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
(11) Interfund Receivables and Payables
At June 30, 2000, interfund receivables and
payables were as,follows:
Due From .
.ue.to
OtherFunds
Other Funds,
General;Fund
$1,879;663
Special Revenue Funds:.i .
Contributions
-,
$229,520
Arterial Highway Rehabilitation Rroject
-
442566
Community Development Block.Grant
-
513,766'
Miscellaneous Grants :
-
46j134.
Enterprise Fund::
Cannery Ilage'
243,495
Capital Projects'fFunds
Bonita Canyon Development
309,113
Assessment District
: 95,069
Total
$$1879fi63
$1,89,663
(12): Interfund Transfers
Interfund transfers are reconciled as follows:
Transfers In
Transfers Out _
General Fund -:
$4,516;587
$2,838;020
Special Revenue Funds
-
4,258,230
Debt Service Funds -
529;663
-
Internal Service Funds
2;300,000
250,000
Total
$7,346,250
$7,346,250
39
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
(13) Changes in Contributed Capital
Contributed capital of the Enterprise Funds was unchanged as follows:
Water Wastewater
Balance, June 30, 1999 $6,044,944 $9,758,953
Balance, July 1, 2000 $6,044,944 $9,758,953
Total
$15,803,897
$15,803,897
Contributed capital of the Internal Service Funds was unchanged as follows:
Equipment
Balance, June 30, 1999 $4,097,648
Balance, July 1, 2000 $4,097,648
(14) Reserved and Designated Fund 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 fora specific
future use. Fund "designations" also may be established to indicate. tentative plans for
financial resource utilization in a future period.
The City's reserves and designations at June 30, 2000, are: tabulated below followed by
explanations as to the nature and purpose of each reserve and designation.
Special Debt Capital
General Revenue Service Projects
Fund Funds Fund Fund Total
Encumbrances $2,947,054 $2,287,800 $5,623,043 $10,857,897
Inventories 169,816 - 169,816
Debt Service - $571,091 571,091
Long -term receivable 50,000 - 50,000
Total Reserved $3,166,870 $2,287,800 $571,091 $5,623,043 $11,648,804
M
F
L-J
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
■ June 30, 2000
0
0
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
The key financial data for the year ended June 30, 2000, for these Enterprise Funds are
as follows:
Operating revenues
Operating expenses:
Depreciation
Other
Operating income (loss)
Net non - operating
revenue (expense)
Net income
Property, plant
and equipment:
Additions
(Deletions)
Net working capital
Total assets
Outstanding long -term
liabilities
Total equity.
Cannery
Village
Parking
$91,382
4,299
87,083
87,083
(243,495)
1,096,242
$852,747
(16) Individual Fund Disclosures
Water
$17,261,658
1,404,268
11,713,223
4,144,167
1,773,606
5,917,773
997,073
.(813,026)
16,669,627
61,081,081
12,095,000
$46,696,395
Wastewater Total
$2,713,232 $20,066,272
796,071
2,011,422
(94,261)
103,297
9,036
526,003
(315,000)
2,507,772
13,824,489
$13,761,395
The following funds had expenditures in excess of appropriations:
Special Revenue Funds:
Air Quality Management District $ 3,488
Supplemental Law Enforcement 15,780
Misc. Grants 11.014
2,204,638
13,724,645
4,136, 989
1,876,903
6,013,892
At June 30, 2000, the Insurance Reserve Internal Service Fund had an accumulated
deficit of $13,263,735. The accumulated deficit is expected to be eliminated by future
interdepartmental charges. The Assessment District Capital Projects Fund had an
accumulated fund deficit of $99,089. The accumulated deficit is expected to be eliminated
by future contributions from property owners.
42
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
■ June 30, 2000
■
(17) Joint Venture Agreements
■ Bonita Canyon Public Facilities Financing Authority
■ The Bonita Canyon Public, Facilities Financing Authority (Authority is a joint venture
formed by,the. City of Newport Beach, Irvine Unified School District, and Newport-Mesa
Unifed'School District: -The Authority's Board is comprised of two members appointed by
each of the member agencies. The Authority created Community Facilities District 98 -1 to
■ finance public facilities that will benefit the properties within their` boundaries. The 11
Authority;: issued $45;000,000 of'special tax bonds that will be repaid by special
■ assessments; the City is'not obligated in any manner to repay 4he bonds. The Authority
paid the City $30,577,712,1(81,79/6)1 to pay for the costs of acquiring and constructing,public
■ facilities including parks and road improvements. At June 30; 2000, the remaining bond
■ proceeds are held in trust,as restricted cash totaling $6,698,867. The City does not make.
any annual contributions to this, joint venture. The City does not include the Authority as, at
■ component unit, as the City is not , financially accountable for, the Authority's activities and,,:,
the Authority is not fiscally dependent on the City. The City's equity interest in this joint ,
venture is not readily determinable. Complete separate financial statements can be
obtained atthe •Newport.Mesa Unified School District, 2985 Bear Street, Suite 8M, Cosfa�
Mesa, ;California:
■ Air. Borne Law Enforcement
■ The City is a participant in a joint venture agreement with the City of Costa Mesa'for the
. operation of the Air Borne Caw;;;Enforcement program (ABLE). The' oversight Board'
consists of the Chiefs;of Police of Costa Mesa and Newport Beach and one appointee for
■ each Member Agency for a total of four (4) Board Members. The Cities have a 50 percent
interest in the venture, with each ,City having provided an initial investment of two
■ helicopters and related equipment. the City of Newport Beach's cost of participating. in the
ABLE programJs recorded -in the General :F.und,;which provides for the maintenance and
■ operation of the program `as well as . replacement of capital equipment used in the
operation of the program. Annually, the amounts paid by the City to this joint venture are
■ approximately ,$555,500..Operation. costs are offset, by fees collected from surrounding
■ cities that`may subscribe to, regular patrol or request assistance on an as- needed basis.
Shared equally between the Cities` of Newport Beach and Costa Mesa, net income from
■ subscribers and other cities amount to $251,288 for. fiscal yeai 1999 -2000 and $175,676
for the previous fiscal year.:The City's 50% interest in the net equity of this joint venture in
the amount of $1,722,270 has been recorded in the General Fixed Asset Account Group.
Complete separate financial statements can be obtained at the City of Costa Mesa at 77
Fair Drive, Costa Mesa, California.
Central Net
The City of Newport Beach is a Member in a joint venture agreement with the Cities of
■ Huntington Beach and Fountain Valley for the operation of the Central Net Training
43
■
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 2000
facility. The oversight board consists of the existing City Manager of each City and as an
alternate, the Fire Chief of each City. The City of Newport Beach's costs are based on the
number of personnel using the training facilities and is recorded in the General Fund as an
expenditure for service. Upon termination of the agreement, the property and assets of
the joint venture become the property of the City of Huntington Beach,, provided that the
funds remaining in the training facility budget are paid to each Member .in proportion to
their most recent contribution to the budget. Annually, the amounts paid by the City to this
joint venture are approximately $123,856. Cash balances held by this joint venture at June
30; 2000 were immaterial. The City does not have a material measurable equity interest in
the joint venture. Complete financial statements can be obtained at the Central Net offices
at 18301 Gothard Street, Huntington Beach, California.
(18); Commitments and Contingencies
Claims and Judgments
Numerous claims: and suits have been filed against the City in the normal coursevof
business. The estimated liability under such claims, based upon information received from
the City Attorney, contracted attorneys and the Risk Manager, has been estimated and.
recorded as accrued claims and judgments payable (See Note 6).
Circulation Improvement and Open Space Agreement
The. City entered into a Circulation Improvement and Open Space Agreement (CIOSA)`
with a developer whereby the City could receive up to $14,395,572 to be used only for
certain transportation and circulation improvements,. of which $9,277,362 had been
received as of June 30, 2000. The City agreed to match the contribution (without interest)
by pledging 50% of future Fair Share Fees (developer. impact fees) which are recorded in
the' Circulation and Transportation Special Revenue Fund. During the year ended, June
30, 2000, the ,City received $170,967 of Fair Share Fees, and $85,483 was paid to the
CIOSA.Construction capital projects fund. .Through June 30, 2000, $1,205,871 of Fair
Share Fees have been paid. No additional liability has been recorded, because any future
repayment is uncertain; any amounts not contributed by February 20, 2016, will be
forgiven.
(19) Orange County Bankruptcy Recovery
On December 6, 1994, the County of Orange ( "County ")
Investment Pool ( "Pool ") filed petitions under Chapter 9 of the
Code. As a Pool participant, the City of Newport Beach ( "City"
funds invested in the Pool on December 6, 1994.
44
and the Orange County
United States Bankruptcy
had $16,982,001 of City
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CITY OF NEWPORT BEACH
■ Notes to General Purpose Financial Statements
■ June 30, 2000
® A Comprehensive Settlement Agreement ( "Settlement ") for the Pool was accepted by the
■ Newport Beach City Council, at its :meeting on April. 10; ,1 995, and was initially approved
by the United States Bankruptcy Court on May 2, 1995. Under the terms of the
■ agreement, the City recovered approximately 79% of investment principal or $13,399,826
■ upon approval of the settlement agreement and the non- recovered principal balance of
$3,582,175 was exchanged for secured settlement claims in the event the County's
■ litigation against third party defendants was successful.
■ Due to- -`the considerable uncertainty. surrounding the timing and amount of any potential
recovery, the City wrote ;off the outstanding principal balance during fiscal year 1994 -95.
■ As, the City' pools Rs cash and investments, the loss was allocated to ap "prop�iate
participating.,-funds based on each fund's November 30, 1994 cash ;and investments
■ balance.
■ During the current fiscal year, the, County made final bankruptcy related distributions .ta.;
■ the City amounting to $2,426,972, Of this amount $2,289,056 represented investment
recoveries. This - amount was distributed" to the appropriate, ;funds in the same pro -rata -
■ manner as the losses were originally allocated. The I unrecovered investment balance as 4f,,
June 30, 2000 „'amounts to $1,293,119. Total recoveries, including non- investment related,
■ recoveries, were recorded as other revenue (governmentar, funds) and non - operating,,;
investment recoveries (proprietary funds), as applicable, in the following fund types:
■ General Fund ;$420;642, Special . Revenue Funds $170,767 and Enterprise Funds
■ $1,835,563.
■ Investments in OCIP December 6, 1994 $16;982 00t:'
■ Principal recovered through June 30, 1999 (13.3994826)
■ Outstanding Principal balance as of June 30, 1999 3,582;175
■ Principal Recoveries.received during fiscal year ended June 30, 2000` (2:289.056)
■ Unrecovered Principal Balance, (Written- off in prior year) $ 1.293,119
■ (20) Restatement of 6kilnninst Fund Balance
■ The accompanying financial statements reflect certain adjustments that resulted in a
restatement of the beginning fund balance of the General Fund.
■ (a) To more appropriately recognize revenue in the proper reporting period, the
■ accompanying financial statements reflect a change in the City's accounting policy to
accrue certain tax revenue sources that are considered to be measurable and
■ available, but were not accrued in prior years. The cumulative effect of applying this
■ change in accounting policy resulted in a restatement of the beginning fund balance in
■ 45
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■
■
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
■
June 30, 2000
■
General Fund for the year ended June 30, 2000. Prior year data (presented for
comparative purposes as memorandum only totals) have also been restated to reflect
■
the retroactive change in policy.
■
(b) The City also implemented a correction of an error in the prior year, where an error in
billing /revenue recognition procedures resulted in an accumulation of unrecognized
■
derived tax revenue. The error was identified and the procedures were corrected
■
during the current year. The effect of applying this correction to the accompanying
financial statements resulted in a restatement of the beginning fund balance in the
■
General Fund for the year ended June 30, 2000.
■
Fund Balance, at beginning of year as previously reported $15.396.016
■
.(a) Cumulative effect of change in accounting policy 2,562,967
■
(b) EffecLof correction in billing procedure 309.047
■
Fund .Balance, at beginning of year as restated $18.268.030
■
(21) Subsequent Event
■
■
Proposed Annexation
■
The City adopted Resolution. 99 -71 which allowed the City to:fle a reorganization.
application with the Local Agency Formation Commission .(LAFCO) that could lead to.the
■
eventual annexation.of unincorporated area known as Bay Knolls, Santa Ana Heights
(east of Irvine Avenue), Newport.Coast and Newport: Ridge. This action is the first step in
■
the. reorganization process as, outlined in California ,Law (Government Code §56000 et
seq;). Under the proposed reorganization plan, City services would commence.. n or
■
about July 1,:2001. The services that the City would provide differ in each area. in
■
general, the City would provide additional police, fire, paramedic, animal control, library,
recreation, public works„ general maintenance and administrative services to the
■
proposed ,areas of annexation. However, the net economic impact of reorganization is
expected to be favorable.
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CITY OF NEWPORT BEACH
Comparative Balance Sheets - General Fund
■ June 30, 2000
2000 '.
1999
$ 21,894,718
$ 13;800,700
3,381,069
Assets
4,159;871.
.4,839,569"
1,879,663
Cash and investments
169,819
Accounts receivable and accrued revenues
149,588
Due from other governments
84,576
Due from other funds
50,000
Inventories of material and supplies, at cost
$ 31,769,304
Restricted assets - cash and investments
■
Other assets
1,849, 825
Notes receivable
■
729,567
2,472,232 ,
Total Assets
8,190,971.
10, 058, 961
2,947,054
Liabilities and Fund Balance
169,816
108,$74
50,000
Liabilities:'
4,069,284 -
Accounts payable and accrued liabilities
1,723,195
Accrued payroll
14,618,984
Deferred revenue
Deposits
Total Liabilities
Fund Balance:
Reserved:
Reserved for encumbrances
Reserved for inventories
Reserved for long -term receivable
.
Unreserved:
Designated for;special projects
Designated for stabilization
Designated for contingencies .
Total Fund Balance
■
Total Liabilities and Fund Balance
47
2000 '.
1999
$ 21,894,718
$ 13;800,700
3,381,069
2;147,278
4,159;871.
.4,839,569"
1,879,663
51937,324
169,819
108,574 .,
149,588
1,282,050
84,576
211,496
50,000
$ 31,769,304
$ 28;3261991
$ 2,967,904
$ 4,815,091
1,849, 825
1,341,988.
901,010
729,567
2,472,232 ,
3,172,315
8,190,971.
10, 058, 961
2,947,054
1,613 535
169,816
108,$74
50,000
4,069,284 -
3,704,292
1,723,195
1,637,225
14,618,984
11,204,404
23,578,333 18,268,030
$ 31,769,304 $ 28,326,991
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CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures
■
and Changes in Fund Balance - Budget and Actual
General
Fund
For the Year Ended June 30, 2000
■
■
2000
1999
aaance
■
. Favorable
Budget
Actual
(Unfavorable)
Actual
■
Revenues:
Taxes - -
$53,085,500
$58,846,994
$ 5,761,494
- $55,775,521
■
Licenses, fees and permits -
1,929,716
2,244,020
314,304
2,938,425
Intergovernmental revenue
6,784,736
6,622,085
(162,651)
5,387,744
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Charges for services
8,319,971
9,049,844
729,873
8,759,173
Fines, forfeitures . and penalties _
2,463,800
3,227,351
763,551
2,846,186:'.
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Revenue from.use of
money and property -
5,723,999
6,070.417
346,418
5,285,679
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Contributions -
244,949
345,258
100,309
286,371.,
Other
111,366
659,331
547,965
337,006
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Total Revenues.
78,664,037
87,065,300
8,401,263
81,616,105
Expenditures:
Current:
■
General govemm ant
9,317,316
9,441,381
(124,065)
7,471,850
Public safely
41,181,306
41,271,457
(90,151)
:40,190,335
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Public works
16,785,977
16,492,556
293,421
16,023,639
Community development
3,857,916
3,727,624
130,292
3,506,276
■
Community services
6,920,098
6,916,735
3,363
6,699,042
Capital Outlay
6,669,370
5,049,821
1,619,549
6,147,235
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. Debt Service:
Principal
1,152,545
858,525
294,020
825,834
■
Interest and fiscal charges
255,739
134,360
121,379
176,538
Total Expenditures
86,140,267
83,892,459
2,247,808
81,040,749
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Excess (Deficiency) of Revenues
■
Over (Under) Expenditures
(7,476,230)
3,172,841
10,649,071
575,356
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Other Financing. Sources (Uses):,.
Operating, transfers in -
-
3,889,049
4,516,567
627,538
-
- 3,486,311
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Operating transfers out -
(2,300,000)
(2,838,020)
(538,020)
', (546,638)
Proceeds from capital leases
1,950,944
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Proceeds from sale of assets
30,200
458,895
428,695
41,003
Total Other Financing Sources (Uses) 1,619,249
2,137,462
518,213
4,931,620
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Excess (Deficiency) of Revenues
■
and Other Financing Sources
Over (Under) Expenditures
■
and Other Financing Uses
(5,856,981)
5,310,303
11,167,284
5,506,976
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Fund Balance, July 1, as restated
18,268,030
18,268,030
12,761,054
•
Fund Balance, June 30
$12,411,049
$23,578,333
$ 11,167,284
$ 18,268,030
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Misc. Grants Fund is used to account for all other short-term grant programs. ■
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SPECIAL REVENUE FUNDS
■
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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 Arterial Highway Rehabilitation Fund is used to account for federal funds available through the Federal
■
Highway Administration Arterial Highway Rehabilitation Program to share the cost of rehabilitating certain
arterial roadways in the City.
■
The Community Development Block Grant Fund is used to account for revenues and expenditures relating
■
to the City's Community Development Block Grant program. These funds are received from the Federal
Department of Housing and Urban Development and must be expended exclusively on programs for low or
moderate income individuals/families.
■
The Ackerman Donation Fund is used to account for the receipt and disbursement of funds received from the
■
Ackerman Trust. These funds are split between the City and the University of California, Irvine. The City's
portion must be used for library and scholarship purposes.
■
The Air Quality Management District Fund is used to account for revenues received from the South Coast
■
Air Quality Management District restricted for the use of reducing air pollution.
The Environmental Liability Fund is used to account for solid waste fees restricted for mitigation of future
■
environmental liability relating to the handling of solid waste.
■
The Supplemental Law Enforcement Services Fund (SLESF) is used to account for revenues received from
the county to be used exclusively for front line law enforcement services.
■
Misc. Grants Fund is used to account for all other short-term grant programs. ■
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49
Assets
Cash and investments
Accounts receivable
and accrued revenues
Lease receivable
Due from other governments
Total Assets
Liabilities and Fund Balances
Liabilities:
Accounts payable and
and accrued liabilities
Accrued payroll
Due to other funds
Deferred revenue
Deposits
Total Liabilities
Fund Balances:
Reserved for encumbrances
Unreserved:
Designated for special projects
Undesignated
Total Fund Balances
CITY OF NEWPORT BEACH
Combining Balance Sheet
All Special Revenue Funds
June 30. 2000
4,031, 803
4,853,179
557,484
602,642 102,495
Total Liabilities and
Fund Balances $ 4,985,413 $ 605,034 $ 546,129
50
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Tide and
State
Asset
Submerged
Gas Tax
Forfeiture
Land
$ 4,840,123
$ 605,034
$ 251,648
290,731
145,290
3,750
$ 4,985,413
$ 605,034
$ 546,129
$ 132,234
$ 2,392
$ 200,943
26,498
216,193;+
132,234
2,392
443,634
821,376
45,158
102,495
4,031, 803
4,853,179
557,484
602,642 102,495
Total Liabilities and
Fund Balances $ 4,985,413 $ 605,034 $ 546,129
50
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51
Circulation -.
Building
Arterial.
Community
and
Excise'
Combined
Highway
Development
Contributions
Transportation
Tax"
Transportation
Rehabilitation
Block Grant
$
'5,136671:
'` $'
615052
$
1,656,842
62,787
$ 269,609
$
446,465
$ 543,577
$ 269,609
$
5,199,458
$.
615,052
$..1,656,842
$
446,465
$ 543,577
$ 16,488
$
139,962
$
33,644
$
616
$ 29 811 ,
229,520
$
442,566
513,766
4374
$
250,382.
139,962
33,6,44
616
442,566
543,577
19,227
740,835
66,689
490,571
1,165,655
4,318,661
514,719
3,899
19,227
5,059,496
581,408
1,656,226
3,899
$ 269,609
$
5,199,458
$
615,052
$
1,656,842
$
446,465
$ 543,577
51
Assets
Cash and investments
Accounts receivable
and accrued revenues
Lease receivable
Due from other governments
Total Assets
Liabilities and Fund Balances
Liabilities:
Accounts payable and
and'amwed liabilities
Accrued payroll
Due to:other funds
Deferred' revenue
Deposits,;
Total Liabilities
Fund Balances:
Reserved for encumbrances
Unreserved:
Designated for special projects
Undesignated
Total Fund Balances
Total Liabilities and
Fund Balances
CITY OF NEWPORT BEACH
Combining Balance Sheet
All Special Revenue Funds
June 30, 2000
Air Quality
Ackerman Management
Donation District
$ 229,798 $ 91,042
524,167 21,074
$ 753,965. $ 112,116 $ 1,005,386
$ 2,122
524,167
526,289_
$ 1,449
227,676 110,667 $ 1,005,386
227,676 112,116 1,005,386
$ 753,965 $ 112,116 $ 1,005,386
52
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■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
Supplemental
Law Misc
Enforcement Grants
$ 11,410
53
$ 558,212
$ 1,201,198
26,498
20,154
$ 46,134
1,231,986
5,598,847
524,167
837,165
220,567
215,935'
46,134
2,561,430
7,873,299
2,287,800
5,138,756
$ 11,410 14,968
7,125,049
6,109,405
41837,279
4,847,529
11,410 14,968
14, 250,128
16,095,690
$ 11,410 $ 61,102
$ 16,811,558
$ 23,968,989
53
CITY OF NEWPORT BEACH
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
All Special Revenue Funds
For the Year Ended June 30, 2000
Revenues:
Licenses, fees and permits,
Intergovernmental revenue
Charges foe services
Fines, forfeitures and penalties
Revenue'from use of money
and property
Contributions
Other
Total Revenues
Expenditures:
Current:
Public safety
Public works'
Community development
Community services
Capital Outlay
Debt service:
Principal
Interest and fiscal charges
TotaVExpenditures
Excess (Deficiency) of
Revenues Over
(Under) Expenditures
Other Financing Sources (Uses): „
Operating transfers in
Operating transfers out
Sale of property
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues
and Other Sources Over (Under)
Expenditures and Other Uses
Fund Balances (Deficits), July 1
Fund Balances (Deficits), June 30
Tide and
State Asset Submerged
Gas Tax Forfeiture Land
$ 1,120,094
$ 1,357,266
18,683
$ 153,623 95
206,802 7,507 5;071;845
49,220 5,652
1,613,288 166,782 6,210,717
216,301
329,265
877,695
2,593,438 758,083
119,856
116,516
2,593,438 216,301 2,201,416
(980,150) (49,519) 4,009,301
(100,000) (4,049,230)
(100,000) (4,049,230)
(1,080,150) (49,519) (39,929)
5,933,329 652,161 142,424
$ 4,853,179 $ 602,642 $ 102,495
54
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■
Circulation
Building
Arterial
Community
and
Excise
Combined
Highway
Development
■
Contributions
Transportation
Tax _
Transportation
Rehabilitation''
.' BWek,Grant
■
$ 170,967
$„ ,322;859
$ 550,152
$ 977,112
$ 570,727
$ 5431577; '
■
■
■
124,467
220,037
:24,280
39,054
62,787:
644
■
102,875
9,514
■
674,619
556,666
347,783
1,025,680
570,727
543,577
■
■
543,577
■
655,392
1,724,104
313,666
921,917
566,828
■
■
655,392.
1,724,104
313,686.
921,917
566,828.
543,577
■
■
19,227
', : (1,167,438)
:; 34,117
103,763
3,899
■
■
(64,000)
■
(64,000)
■
■
■
19,227
(1,167,438)
34,117
39,763
3,899
6,226,934
547,291
1,616,463
■
■
$ 19,227
$ 5,059,496
$ 581,408
$ 1,656,226
$ 3,899
$
■
55
■
CITY OF NEWPORT BEACH
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
All Special Revenue Funds
For the Year Ended June 30, 2000
M
Air Quality
Ackerman
Management
Environmental
Donation
District `
Liability
Revenues:
Licenses, fees and permits
$ 390,005
Intergovernmental revenue
$ 81,636.
Charges for services
Fines, forfeitures and penalties
Revenue from use of money
and property
$ 8,500
4,544
Contributions
185,000
Other
2,861
Total Revenues
193,500
89,041
390.005
Expenditures:
Current:.
Public safety
Public works
76,808
Community development
Community services.
138,067
Capital Outlay
Debt service:
Principal
Interest and fiscal charges
Total. Expenditures
138,067
76,808
Excess (Deficiency) of
Revenues Over
(Under),Expenditures
55,433
12,233
390,005
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
(45,000)
Sale of property
Total Other Financing Sources (Uses)
(45,000)
Excess (Deficiency) of Revenues
and Other Sources Over (Under)
Expenditures and Other Uses
55,433
(32,767)
390,005
Fund Balances (Deficits), July 1
172,243
144,883
615,381
Fund Balances (Deficits), June 30
$ 227,676
$ 112,116
$ 1,005,386
M
Supplemental
Law
Misc
Totals
Enforcement.
Grants
2000
1998.
$ 2,003,925 ` $
2,742,071
$ 164,608
4,245,078
9,801,580
18,683
20,789
$
61,102
214,820
443,833
41262
5,711,298
4,958,026
248,431
348,368
170,122
168,870'
61,102
12,612;357
18;314,667
176;059
72,116
464,476
324,076
406,074
823,035
543,577
1,181,811
1,015,762.
1.934,678'
7,533,428,
13;095,072
119,856
7:14,694
116,516
121,678
176,059
72,116
10,199,689
16,6951044
(7,189) „.
(11,014)
2,412,668
1,619,623
(4,258,230)
(3,236 311)"
Vol
(4,258,230) s.
(3,078,630)
(7,189) (11,014)
18,599 25,982
$ 11,410 $ 14,968
(1,845,562) (1,459,007)
16, 095, 690 17, 554,697
$ 14,250,128 $ 16,095,690
57
CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2000
Revenues:
Intergovernmental revenue
Revenue from use of
money and property
Contributions
Other -
Total Revenues
Expenditures:
Capital outlay.
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses):
Operating transfers out
Sale of property
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenue
and Other Sources Over (Under),
Expenditures and Other Uses
Fund Balance, July 1
Fund Balance, June 30
2000
Variance
Favorable
Budget Actual (Unfavorable)
1999
Actual
$ 1,312,500
$ 1,357,266
$ 44,766
$ 1,458,336
120,000
206,802
86,802
249,637
49,220.
49,220
1,432,500
1,613,288
180,788
1,707,993
3,998,110
2,593,438
1,404,672
1,122,582
(2,565,610)
(980,150)
1,585,460
585,391'!
(100,000)
(100,000)
(100;000)
157,681
(100,000)
(100,000)
57,681
(2,665,610)
(1,080,150)
1,585,460
643,072
5,933,329
5,933,329
5,290,257
$ 3,267,719
$ 4,853,179.
.$ 1;585,460
$ 5,933,329
58
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CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2000
2000
1999
ariance
Favorable
Budget Actual
(Unfavoratilej,
Actual
Revenues:
Fines, forfeitures and penalties'
$ 153,623
$ - 153,623>
$ ` 377,669
Revenue from use of
money and property
7,507
7,507
31035
Other"
5,652
5,652
Total Revenues
166,782
166,782
380,704, `
Expenditures:
Current:
Publicsafety
$ 297,597 216,301
81,296 `•
1266369
Excess (Deficiency) of
Revenues Over
(Under) Expenditures
(297,597) (49,519)
248,078
254,335„
Fund Balance, July 1
652,161 652,161
397,826';;
Fund Balance, June 30 -
$ 354,565 $ 602,642
$ `248,078
$ 652,161 •
59
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, 2000
,M. e
2000
1999
Variance
Favorable
Budget
Actual
(Unfavorable)
Actual
Revenues:
Licenses,.fees.and permits
$ 1,159,865
$ 1,120,094
$ 1 (39,771)
$ .1,136,643
Intergovernmental revenue
22,638
Charges for services
16,500
18,683
2,183
:20,789
Fines forfeitures and penalty
95
95
8,263
Revenue from use of
money and property
4,714,359
5,071,845
357,486
4,288,311
Other
Total Revenues
5,890,724
6,210,717
319,993
5,476,644
.Expenditures:
Current:
Public Works
305,865
329,266
(23,401)
263,097
Community services
890,929
877,695
13,234
832,291
Capital Outlay
904,671
758,083
146,588
1,127,411
Debt service:
Principal
119,856
119,856
114,694
Interest and fiscal charges
116,516
116,516
121,678
Total Expenditures
2,337,837
2,201,416
136,421
2,459,171
Excess of Revenues
Over Expenditures
3',552,887
4,009,301
456,414
3,017,473
Other Financing Uses:
Operating transfers in
Operating transfers out
(4,049,230)
(4,049,230)
(3,001,311)
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
and Other Uses
3,552,887
(39,929)
(3,592,816)
16,162
Fund Balance, July 1
142,424
142,424
126,262
Fund Balance, June 30
$ 3,695,311
$ 102,495
$ (3,592,816)
$ 142,424
,M. e
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■
CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures and Changes in Fund Balance
■
Budget and Actual
Contributions Special Revenue Fund
■
For the Year Ended June 30, 2000
■
.
2006,
1999
anance
■
Favorable ":
,
Budget Actual
(Unfavorable) ,
",", Actual
■
Revenues:
Intergovemmentatrevenue
$1,305,333 $ 550,152
$ (755,181)
$6368,406
■
Revenue from use of money
.
and property
55,000
(55,000)
Contributions
28,069 124,467
96,398
106;580
■
Total Revenues ..
1,388,402 674,619
(713,783) ` •
6,468,986 , ..
■
Expenditures:
■
Capital outlay
1,019,668 655,3.92
364,276.
". 6;608 871
■
" Excess (Deficiency) of Revenues
Over (Under) Expehditures.
368,734 191227
(349,507)
(139 885)
■
■
Fund Balance, July 1 .
139 885
■
Fund Balance (Deficit),, June 30
$ 368,734 .. $ 19,227
$.'(349 507}:
$
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■
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■
■
■
■
■
61 .
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, 2000
Revenues:
Licenses, fees and permits
Revenue from use of
money and property
Contributions
Other
Total Revenues
Expenditures:
Current:
Public works
Capital Outlay
010441
variance
Favorable
Budget Actual (Unfavorable)
$ 300,000 $ 170,967 $ (129,033)
350,000
am nnn
7 A9R QQR
Total Expenditures 2,426,996
Deficiency of. Revenues
Under Expenditures (1,776,996)
Fund,Balance, July 1 6,226,934
Fund Balance, June 30 $ 4,449,938
220,037
(129,963)
62,787
62,787
102,875
102,875
556,666
(93,334)
1,724,104. 702,892
1,724,104 702,892
(1,167,438)
A ')7C. Q1d
$ 5,059,496
62
609,558
$ 609,558
1999
Actual
$ 630,484
364,149
62,788
8,246,264
$ 6,226,934
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63
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, 2000
2000
1999
aaance
Favorable:..
Budget Actual
(Unfavorable)
Actual
Revenues: ,
Licenses; fees and permits
$ 400,000 $ .322,859 '
$ (77,141)
$ ;498,523
Revenue.from use of
money and property
3,000 24,280
21,280
24,1;98
Other.
644
644.
Total Revenues
403,000 347,783
(55,217) -
- 522,72f'
Expenditures:
Capital outlay
407,829 313,666
94,163
436,319`
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
(4,829) 34,117
38,946
86402
Fund Balance, July 1
547,M, 547,291
"460,889s
Fund Balance, June 30.
$ 542,462 $ 581;408
$ 38,946
$ 547,291
63
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, 2000
2000 1999
ariance
Favorable
Budget Actual (Unfavorable) Actual
Revenues
Intergovernmental revenue
$ 2,048,281
$ 977,112
$ (1,071,169)
$ 850,053
Revenue from use of
money,and property
31,937
39,054
7,117
7,233
Other
9,514
9,514 .
Total Revenues
2,080,218
1,025,680
(1,054,538)
857,286
Expenditures:
Capital outlay
1,649,388
921,917
727,471
1,038,380'.
Excess (Deficiency)
of Revenues Over .
(Under) Expenditures
430,830
103,763
(327,067)
(181,094)'
Other Financing Uses:
Operating transfers out
(64,000)
(64,000)
(90,000)','
Excess (Deficiency) of Revenues
Over (Under) Expenditures
and Other Uses
366,830
39,763
(327,067)
(271,094)
Fund Balance,.July 1
1,616,463
1,616,463
1,887,557
Fund Balance,_June 30
$ 1,983,293
$ 1,656,225
$ (327,067)
$ 1,616,463
M.
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■
CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures and Changes in
Fund Balance
■
Budget and Actual
Arterial Highway Rehabilitation Project
■
For the Year Ended June 30, 2000
■
■
2000
Variance
■
Favorable
Budget Actual
(Unfavorable)
■
Revenues:
Intergovernmental revenue $ 570,727
$ 570,727
■
■
Expenditures:
Capital outlay $ 683,019 566,828.
116,191
Excess (Deficiency) of Revenues
■
Over (Under) Expenditures (683;019) 3,899
686,918
■
Fund. Balance, July 1
■
Fund Balance (Deficit), June 30 $ (683,019) $ 3,899.
$ 686,918
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65
■
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, 2000
C.
2000
1999
Variance
Favorable
Budget
Actual
(Unfavorable)
Actual
Revenues:
Intergovernmental revenue
$ 740,806
$ 543,577
$ (197,229)
$ 807,961
Expenditures:
Current:
Community development
708,607
543,577
165,030
807,961
Excess (Deficiency) of Revenues
Over (Under) Expenditures
32,199
(32,199)
Fund Balance, July 1
Fund Balance, June 30
$ 32,199
$
$ (32,199)
$
C.
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67
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, 2000
2000 -?
1999
Variance.
Favorable
Budget Actual
Unfavorable '.
Actual
Revenues:
Revenue from use of money
and property
$ 15,000 $ 8,500
$' (6,500)
Contributions
185,000 185,000
185;000111
Total Revenues
200,000 193,500
(6,500).
194,084 '
Expenditures
Current:
Community services
226;760 :. 138,067
88,693
242,387
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
(26,760) 55,433 -
% ,193
(8,303) .
Fund Balance, July 1
172,243 172,243
180,546
Fund Balance, June 30
$ .145,483 $ 227,676
$ 82,193 $
172,243
67
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, 2000
Revenues:
Intergovernmental revenue
Revenue from use of money
and property
Other
01161,
Variance
Favorable
Budget Actual (Unfavorable)
$ 75,000 $ 81,636 $ 6,636
Total Revenues
Expenditures:
Current:
Public works
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Uses
. IM,
. ���
73,320
Operating transfers out (45,OD0)
Excess (Deficiency) of Revenues
Over (Under) Expenditures
and Other Uses (38,320)
4,544
2,861
89,041
76,808
12,233
(45,000)
(32,767)
(456)
2,861
9,041
(3,488)
5,553
1999
Actual
$ 130,102
7,281
'' (45,000) .
5,553 (281,467)
Fund
Balance,, July 1
1,44,883
144,883
426,350
Fund
Balance, June 30
$ 106,563
$ 112,116
$ 5,553 $ 144,883
M
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, 2000
Budget
Revenues:
Licenses, fees and permits $ 150,006
Revenue from use of
money and:property 30,000
,Total Revenues 180,000
Expenditures:
Current:
public Works
Excess (Deficiency ),of
Revenues Over
(Under) Expenditures 180,000
Fund.
Balance, July 1
615,38.1
Fund
Balance, June 30
2000 1999
390,005 210,005. 476',421
$ 795,381 $ 1,005,386 $ 21.0,005 $ 615,-381
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, 2000
Revenues:
Intergovernmental revenue
Revenue from use of
money and property
.Total Revenues
Expenditures:
Public Safety
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
and Other Uses
Fund Balance, July 1
Fund Balance, June 30
2000 1999
Variance
Favorable'
Budget Actual (Unfavorable. Actual
$ 165,000
$ 164,608
$ (392)
$ '164,084
15,300
4,262
(11,038)
5,098
180,300
168,870
(11,430)
169,182.
160,279
176,059
(15,780)
162,196
20,021
(7,189)
(27,210)
6,986
20,021
(7,189)
(27,210)
6,986
18,599
18,599
11,613
$ 38,620
$ 11,410
$ (27,211)
$ '18,599
iIi7
CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Miscellaneous Grants
For the Year Ended June 30, 2000
71
2000
1999
Variance.,.
Favorable
Budget
Actual
Unfavorable
Actual,
Revenues:
Fines, forfeitures and penalties
$ 61,102
$ 61,102.
$ ,57,901,:
Revenue from use of
money and property
210
$ (210)
Total Revenues
61,312
61,102
(210)
57,901'.
Expenditures:
Current:
Public safety
61,102
72,116
(11014)
:35,511
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
210
(11,014)
(11,224)
22,390
Fund Balance, July 1
25,982
25,982
3,592
Fund Balance, June 30
$ . 26,192
$ 14,968
$ (11,224)
71
CAPITAL PROJECTS FUNDS
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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 CIOSA Construction Fund is used. to account for the receipt and expenditure of ■
funds for the Circulation Improvement and Open Space Agreement (CIOSA). The
improvements include street and frontage improvements.
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. ■
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73
CITY OF NEWPORT BEACH
Combining Balance Sheet
All Capital Projects Funds
June 30, 2000
74
Assessment
CIOSA
Bonita Canyon
Totals
District
Construction
Development
2000
1999
Assets
Cash and investments
$
$
887,855
$ 887,855
$ 1,031,784
Accounts receivable and accrued revenues
525
525
524
Restricted assets -cash and investments
406
$ 6,698,867
6,699,273
6,104,646
Total Assets
$ 525
$
888,261
$ 6,698,867
$ 7,587,653
$ 7,136,954
Liabilities and Fund Balances
Liabilities: - -
-
Accounts payable and accrued liabilities
$ 4,545
$
1,750
$ 833,628
$ 839,923
$ 69,572
Due to other funds
95,069
309,113
404,182
3,600
Total Liabilities
99,614
1,750
1,142,741
1,244,105
73,172
Fund Balances:
Reserved for encumbrances
66,917
5,556,126
5,623,043
612,109
Unreserved:
Designated for special projects
819,594
819,594
6,451,673
Unreserved,.undesignated
(99,089)
(99,089)
Total Fund Balances (Deficit)
(99,089)
886,511
5,556,126
6,343,548
7,063,782
Total Liabilities and Fund Balances
$ 525
$
888,261
$ 6,698,867
$ 7,587,653
$ 7,136,954
74
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CITY OF NEWPORT BEACH
Combining
Statement of Revenues, Expenditures
■
and Changes in Fund Balances
All Capital Projects Funds
■
For the Year Ended June 30, 2000
■
Assessment CIOSA Bonita:Canyon
Totals
■
District Construction Development
2000
1999
Revenues:
■
Revenue from use of money
and property
$ 525 $ 19 $ 594,609
$..595,153 $
395,438
■
Contributions
85,484
85,484
30,892,954
■
Total Revenues
525 85,503 594,609
680,637
31,288,392
■
Expenditures:
Capital Outlay
$ 150,521 $ 111,209 $ 1,139,141.
1, 400 ,871:-..,..`;,31,441,738
Excess (Deficiency) of Revenues
and Other Sources
Over (Under) Expenditures
(149,996) (25,706) (544,532)
(720;234)
(153,346)
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Fund Balances, July 1
50,907 912,217. 6,1:00,658
7,063,782
7;217,128
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Fund Balances (Deficit), June 30
$ (99,089) $ 886,511 $ 5,556,126
$ 6,343,548 $
7;"63,782
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ENTERPRISE FUNDS
Enterprise Funds are used to account for City operations that are financed and
operated in a manner similar to private business enterprises. The objective of
segregating activities of this type is to identify the costs of providing the
services, and to finance them through user charges. City of Newport Beach
Enterprise funds are those listed below:
The Cannery Village Parking Fund is used to account for the revenues and expenses
of operating the Cannery Village parking facility.
The Water Fund is used to account for the activities associated with the transmission
and distribution of potable water by the City to its users.
The Wastewater Fund is used to account for the activities associated with providing
sewer services by the City to its users.
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77
CITY OF NEWPORT BEACH
Combining Balance Sheet
All Enterprise Funds
June 30, 2000
Assets
Current Assets:
Cash and investments
Accounts receivable and accrued revenues
Restricted assets - cash and investments
Total Current Assets
Fixed Assets:
Land
Structures
Equipment ..
Construction work in progress
Accumulated depreciation
Net Fixed Assets
Total Assets
Liabilities and Fund Equity.
Current Liabilities:
Accounts payable and accrued liabilities
Accrued payroll
Due to other funds
Deposits
Accrued interest payable
Bonds payable - current
Total Current Liabilities
Noncurrent Liabilities:
Bonds payable
Total Liabilities
Fund Equity:
Contributed' capital
Retained eamings
Total Fund Equity
Total Liabilities and Fund Equity
Cannery
Village
Parking . Water Wastewater
$ 13,952,544 $ 2,146,999
3,539,799 423,867
1,466,971
18,959,314 2;570,866
$ 1,039,163
2,016,450
63,D94
107,471
66,582,835
34,750,106
852,747
627,374
43,797,
(50,392).
(27,104,892)
(23,540,280)
1,096,242
42,121,767
11,253,623
$ 1,096,242 $
61,081,081
$ 1.3,824,489.
$
750,903
$ 35,455
76,129
27,615
$ 243,495
81,818 24
275,836
1,105,000
243,495 2,289,686 63,094
12,095,000
243,495
14,384,686
63,D94
6,044,944
9,758,953
852,747
40,651,451
4,002,442
852,747
.46, 696, 395
13, 761, 395
$ 1,096,242 $
61,081,081 $
13,824,489
78
Totals
2000
1999`
$ 16,099,543 $
10,085,007 .
3,963,666
4,352,030
1,466,971
1,460,896
21, 530,180
15,897, 933
3,055,613
1 3,055,613
101, 440, 412
100, 365, 336
671,171.
671,171-
680,026 .
(50,695,564)
(48,938,926)
54,471,632
55,833,220
$ 76,001,812
$ 71,731,153
$ 786,358
$ 1,400,510
103,744
85,794
243,495
,334,877
81,842`
94,045
275;836
294,282
1,105,000
1,025,000
2,596,275
3,234,508
12, 095, 000
A3,200,000
14,691,275
16,434,508
15, 803, 897
15, 803, 897
45,506,640
39,492,748
61,310,537
55,296,645
$ 76,001,812
$ 71,731;153
79
CITY OF NEWPORT BEACH
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
All Enterprise Funds
For the Year Ended June 30, 2000
Operating Revenues:
Charges for services .
Contributions
Other
Total Operating Revenues
Operating Expenses:
Purchase of water
Salaries and wages
Depreciation
Professional services
Maintenance and supplies
Systems maintenance
Other
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Interest income
Other income
Gain on sale of fixed assets
Interest expense
Bond issuance costs
Other expense
Investment recovery
Total Nonoperating
Revenues (Expenses)
Income Before
Operating Transfers
Net Income (Loss)
Retained Earnings, July 1
Retained Earnings, June 30.
Cannery
Village
Parking'
$ 91,382
91,382
4,299
4,299
87,083
87,083
87,083
765,664
$ 852,747
all
Water
$ 17,118,512
102,864
40,282
17,261,658
5,165,205
2,375,209
1,404,268
1,438,881
612,893
964,884
1,156,151
13,117,491
4,144,167
508,833
480
(551,668)
Wastewater
$ 2,702,217
11,015
2,713,232
776,812
796,071
314,503
244,892
566,707
108,508
2,807,493
(94,261)
83,695
1,815,961 19,602
1,773,606 103,297
5,917,773
5,917,773
34,733,678
$ 40,651,451
9,036
9,036
3,993,406
$ 4,002,442
Totals
2000
1999.
$ 19,820,729
$ 20,059,789
102,864
416,500.
142,679
195;270
20,066,272
20,671,559
5,165,205
4,975,890
3,152,021
3,165, 949
2,204,638
2,151,640 .'
1,753,384,
1,732,550
857,785
872,916
1,531,591
108,512 .
1,264,659
1,190,633
15,929,283
15,958,090 .
4,136,989.
4,713,469
592,528
463,954 .
27,742
480
1,337
(551,668)
(593,469)
(578,091)
(1,920)
1,835,563
1,876,903
(680,447)
6,013,892
4,033,022
6,013,892
4,033,022
39,492,748
35,459,726
$ 45,506,640 $ 39,492,748
81
CITY OF NEWPORT BEACH
Combining Statement of Cash Flows - All Enterprise Funds
For the Year Ended June 30, 2000
Cannery
Village
Parking Water
Cash flows from operating activities
Operating income (loss) $ 87,083 $ 4,1.44,167
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation 4,299
Other revenue
Changes in operating assets and liabilities:
(Increase) decrease>In accounts' receivable
Increase "(decrease) in accounts payable
Increase (decrease) in accrued payroll -
Increase (decrease) in accrued interest payable
Increase (decrease) in due to other funds' (91,382)
Increase (decrease) in deposits
Total adjustments (87,083)
Net cash provided by operating activities
Cash flows from capital and related
financing activities:
Acquisition of capital assets
Proceeds from revenue bond refunding
Cost of issuance
Payment to refunded bond escrow agent
Proceeds from sale of capital assets
Principal payment
Trustee fees
Interest paid
Net cash used for capital
1,404,268
169,415
(332,903)
13,620
(18,446)
(12,227)
1,223,727
5,367,894
(317;047)
480
(1,025,000)
(551,668)
Wastewater
$ (94,261)
796,071
218,950 .
(281,250) .`
4,330
24
738,125:
643,864
(526,003)
and related financing activities
(1,893,235)
(526,003)
Cash flowslfrom investing activities:
Interest on investments
508;833
83,695
Investment recovery
1,815,961
19,602
Net cash provided for investing activities
2,324,794
103,297
Net increase (decrease) in cash
:and cash equivalents
5,799,453
221,158 .
Cash and cash equivalents July 1 - - -
9,620,062
- 1,925,841
Cash and cash equivalents, June 30 $ -
$ 15,419,515
$ 2,146.,999
82
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Totals
(1,793;966)
2000
1999
$ 4,136,989 $
4,713,469
2,204,638.
2,151,640 ..
1,338
27,742
388,365
(916,057)
(614,153)
(624;117)
17,950
26,021
(18,446)
592,528
(91,382)
(90;015)
(12,203)
(17,899)
1,874,769
.557,315
6,011,758
5,270,784
(843,050)
(1,793;966)
14,119,780
(158,184)
(15,223,909)
480
1,338
(1,025,000)
(750)
(551,668)
(343,330)
(2,419,238)
(3,399,021)
592,528
463,954
1,835,563
2,428,091
463,954
6,020,611 2,335.717
11,545,903 9,210,186
$ 17,566;514 $ 11,545,903
83
84
�� Ly.
/ f �
���� }
�/ }
/ �
(f / �
" �k
� ., ��.
/:
� , �., Y.
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r "s
r �..
� �.,; /
�4�
� f I?'�'`
i l t ' L�' y �� 1
�' _,' �r q; _ � , 1 �' ; �1
1 1't7 ,� `"� � t ' v r' r" � as 'll � i' " � �. I
�. /r 1� t IU ��'.t
` y 1 /] �{ ��I�q� 1 �, � ���
� �� I � �.- 1 %Y� 1 .t " i �') 1� Vii"
�� �� %I � „ -,� , `� , � .x.
I. " � � �f, .t r
' i ( t 1 r 11 a� �' i
��},,
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services
provided by one department to other departments of the City on a cost
reimbursement basis. City of Newport Beach Internal Service Funds are listed
below:
The Insurance Reserve Fund is used to account for the City's self insured general
liability and workers' compensation program as well as the City's accumulated liability
for Compensated Absences.
The Equipment Fund is used to account for the cost of maintaining and replacing the
City's rolling stock fleet and the rental of the fleet to operating departments.
LI
CITY OF NEWPORT BEACH
Combining Balance
Sheet
All Internal Service Funds
June 30, 2000
Insurance
Totals
Assets
Reserve
Equipment
2000
1999
Current Assets:
Cash and investments
$ 4,448,863
$ 1,450,502.
$ 5,899,365
$
1,327,609
Accrued revenue
7,987
50
8,037
3,001
Inventories of materials and
■
supplies, at cost
108,463
108,463
72,276
Total Current Assets
4,456,850
1,559,015
6,015,865 ;'
1,402,886
Fixed Assets•
■
Equipment '`
12,820,882.
12,820,882
11,416,582
Accumulated depreciation
(6,513,435)
(6,513,435)
(5,590,144)
■
Net Fixed Assets
6,307,447
6,307,447
5,826,438
.
Total Assets
$ 4,456,850
$ 7,866,462
$ 12,323,312
$
7,229,324
Liabilities and Fund Equity
Current Liabilities:
Accounts payable and accrued liabilities
$ 48,271
$ 189,532
$ 237,803
. $
210,67.6'
i
Accrued payroll
35,072
30,335
65,407
105,832
Capital leases--current
611,385
611,385
403,352`
Workers' compensation— current
1,455,000
1,455,000
1,800,000
General liability-- current
1,650,000
1,650,000
1,420,000.
Compensated absences -- current
850,000
850,000
1,000,000
Total Current Liabilities
41038,343
831,252
4,869,595
4,939,860
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Noncurrent Liabilities:
CapgalLeases
441,852
441,852
535,816
.
Workers' compensation
4,535,174
4,535,174
3,917,362
General liability
2,637,258
2,637,258
3,128,703
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Compensated absences
6,509,810
6,509,810
8,920,511
Total Noncurrent Liabilities
13,682,242
441,852
14,124,094
13,502,392
.
Total Liabilities
17,720,585
1,273,104
18,993,689
18,442,252
Fund Equity:
Contributed Capital
4,097,6481
4,097,648
4,097,648
Retained Eamings:(Accumulated Deficit)
(13,263,735)
2,495,710
(10,768,025)
(15,310,576)
Total Fund Equity '
(13;263,735)
6,593,358
(6,670,377)
(11,212,928)
Total Liabilities and Fund Equity
$ 4,456,850
$ 7,866,462
$ 12,323,312
$
7,229,324
.
86
CITY OF NEWPORT BEACH
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
All Internal Service Funds
For the Year Ended June 30, 2000
87
Insurance
Equipment
Reserve
Operating Revenues:
$ 3,726,991
Charges for services
$ 6,193,670
Licenses, fees and permits
8,693
Other
8,196
Total Operating, Revenues
6,201,866
Operating Expenses'.
Salaries and wages
913,492
Depreciation
1,370,376
Professional services
1,244,117
Maintenance and supplies - _
-
Fleet part's and supplies'
511,721
Workers' compensation
1,328,403
Claims and judgments
1,788,555
Disability
104,165
Compensated absences
1,292,220
Total Operating Expenses
4,513,343
Operating lncome'(Loss
1,688,523
Nonoperating Revenues (Expenses):. .
82,262
Intergovernmental revenue
1,292,220
Interest income
71,951
Gain on sale of fixed.assets
8,382,968
Interest expense
2,274,785
Total Nonoperating Revenues,
71,951
Income (Loss) Before
Operating Transfers
1,760,474
Operating transfers:
103,695
Operating transfers in
1,500,000
Operating transfers out
102,556
Total operating transfers
1,500,000
Net Income {Loss).. .- -- :..
- 3,260,474
Retained Earnings (Accumulated
83,540
Deficit), July 1
(16,524,209)
Retained Earnings (Accumulated
732,077
Deficit), June 30
$ (13,263,735)
87
Totals
Equipment
2000
1999
$ 3,726,991
$ 9,920,661
$ 8,949,165
497
8,693
37,060
3,727,488
9,929,354
8,986,225
913,492
913,492
904,667
1,370,376
1,370,376
1,244,117
45,444
45,444
34,272
511,721
511,721
809,766
300,193
300,193
350,326
1,328,403
929,622
1,788,555
2,898,530
104,165
82,262
1,292,220
1,129' 406
3,141,226
7,654,569
8,382,968
586,262
2,274,785
603,257
160
31,744
103,695
52,178
165,095
165,095
102,556
(51,024)
(51,024)
(71,354)
145,815
217,766
83,540
732,077
2,492,551
686,797
800,000
2,300,000
(250,000)
(250,000)
(250,000)
550,000
2,050,000
(250,000)
1,282,077
4,542,551
436,797
1,213,633
(15,310,576)
(15,747,373)
$ 2,495,710
$ (10,768,025)
$ (15,310,576)
r ^i
CITY OF NEWPORT BEACH ■
Combining Statement of Cash Flows - All Internal Service Funds
For the Year Ended June 30, 2000
Cash flows from operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
Intergovernmental revenue
Changes in operating assets and liabilities:
(Increase) decrease.in accrued revenue
(Increase) decrease in inventories of materials
and supplies, at cost _
Increase (decrease) in accounts payable
Increase_(decrease) in accrued payroll,
(increase) decrease in due to other funds
(increase) decrease In workers' compensation
Increase (decrease) in general liability
Increase (decrease) in compensated absences
' -
Total Adjustments
Net cash provided by (used for) operating activities
Cash flows from noncepital financing activities:
Operating transfers from other funds
Operating transfers to other funds
Net cash provided by (used for)
. noncapital financing activities
Cash flows from capital and related .
financing activities:
,Acquisition of capital assets
Principal payment
Proceeds from sale of capital assets.
Interest paid
Net cash used for capital and
related financing activities
cash flows from investing activities:
Interest on investments
Net cash provided by investing activities
Net increase (decrease) In cash
and cash equivalents
Cash and cash,equivalents, July 1
Cash and cash equivalents, June 30
Noncash Activities:
Acquisition of equipment by capital leases
Insurance Totals
Reserve Equipment 2000 1999
$ 1,688,523 $ 586,262 $ 2,274,785 $ 603,257 .
1,370,376
(7,987) 2,951
(36,187)
1,062 26,065
(47,780) 7,355
272,812
(261,445)
439,299
395,961
2,084,484
1,370,560
1,956,822
1,500,000 800,000
(250,000)
1,500,000 550,000
(1,125,936)
(611,385)
165,100
(s1,o2a>
_ (1,623,245)
71,951 31,744
71,951 31,744
3,656,435 915,321
792,428 - 535,181
$ 4,448,863 $ 1,450,502
$ - $ 725,454
88
1,370,376 1,244,117
160
(5,036) 5,022
(36,187) :,
(41,679)
27,127
(62,066)
(40,425): -.
63,180
-
- ,- (66,742)
272,812
-- (183,715)
(261,445)
697,507
439,299
(49,865)
1,766,521
1,605,919
4,041,306
2,209,176
2,300,000'
(250,000)
(250,060)
2,050,000....
(250,000)
(1,125,936)
(1,008,216)
(611,385)
(483,644)
165,100
217,224
(51,024)
(71,354)
(1,623,245)
(1,345,990)
103,695
52,178
103,695
52,178
4,571,756 . -. 665,364
1,327,609 -. 662,245
$ 5,899,365 `- $ 1,327,609
$ - - 725,454 $ 133,443
0
AGENCYFUNDS
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.
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CITY OF NEWPORT BEACH
Combining Balance Sheet
All Agency Funds
June 30, 2000
M1
Special
Special
Business
Assessment
Deposit
Improv. Dist.
Totals
Fund
Fund
Fund
2000
1999
Assets:
Cash and investments
$
5,739,609
$
2,794,737
$
194,459
$ 8,728,805
$ 8,444,614
Restricted assets - cash
and investments,
1,714,885
1,714,885
1,707,354
Total Assets
$
7,454,494
$
2,794,737
$
194,459
$ 10,443,690
$ 10,151,968
Liabilities:
Due to bondholders
$
7,454,494
$ 7,454,494
$ 7,330,297
Due to others
$
2,794,737
$
194,459
2,989,196
2,821,671
Total Liabilities
$
7,454,494
$
2,794,737
$
194,459
$ 10,443,690
$ 10,151,968
M1
CITY OF NEWPORT BEACH
Combining Statement of Changes in Assets and Liabilities
All Agency Funds
For the Year Ended June 30, 2000
Special Deposit:
Assets
Cash and investments $ 2,747,792 $ 425,429 $ (378,484) $ 2,794,737
Liabilities
Due to others $ 2,747,792 $ 425,429 $ (378,484) $ 2,794,737
Business Improvement District:
Assets
Cash and investments $ 73,879 $ 243,111 $ (122,531) $ 194,459
Liabilities
Due to others $ 73,879 $ 243,111 $ (122,531) $ 194,459
Totals - All Agency Funds:
Assets
Cash and investments $ 8,444,614 $ 2,312,329 $ (2,028,138) $ 8,728;805
Restricted assets - cash
and investments 1,707,354 85,015 (77,484) 1,714,885
Total Assets $ 10,151,968 $ 2,397,344 $ (2,105,622) $ 10,443,690
Liabilities
Due to bondholders $ 7,330,297 $ 1,728,804 $ (1,604,607) $ 7,454,494
Due to others 2,821,671 668,540 (501,015) 2,989,196
Total Liabilities $ 10,151,968 $ 2,397,344 $ (2,105,622) $ 10,443,690
91
Balance
Balance
June 30, 1999
Additions
Deductions
June 30, 2000
Special Assessment:
Assets
Cash and investments
$ 5,622,943
$ 1,643,789
$ (1,527,123)
$ 5,739,609
Restricted assets - cash
and investments
1,707,354
85,015
(77,484)
1,714,885
Total Assets
$ 7,330,297
$ 1,728,804
_$_(1,604,607)
$ 7,454,494
Liabilities
Due to bondholders
$ 7,330,297
$ 1,728,804
$ (1,604,607)
$ 7,454,494
Special Deposit:
Assets
Cash and investments $ 2,747,792 $ 425,429 $ (378,484) $ 2,794,737
Liabilities
Due to others $ 2,747,792 $ 425,429 $ (378,484) $ 2,794,737
Business Improvement District:
Assets
Cash and investments $ 73,879 $ 243,111 $ (122,531) $ 194,459
Liabilities
Due to others $ 73,879 $ 243,111 $ (122,531) $ 194,459
Totals - All Agency Funds:
Assets
Cash and investments $ 8,444,614 $ 2,312,329 $ (2,028,138) $ 8,728;805
Restricted assets - cash
and investments 1,707,354 85,015 (77,484) 1,714,885
Total Assets $ 10,151,968 $ 2,397,344 $ (2,105,622) $ 10,443,690
Liabilities
Due to bondholders $ 7,330,297 $ 1,728,804 $ (1,604,607) $ 7,454,494
Due to others 2,821,671 668,540 (501,015) 2,989,196
Total Liabilities $ 10,151,968 $ 2,397,344 $ (2,105,622) $ 10,443,690
91
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92
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ACCOUNT GROUPS
ACCOUNT GROUPS
The General Fixed Assets Account Group was established to account for the cost of
fixed assets of the City that are used in the performance of general government
functions which are not accounted for in the Enterprise Funds of the City.
The General Long -Term Debt Account Group was established to account for the
unmatured long -term indebtedness of the City to be paid from future general revenues.
CITY OF NEWPORT BEACH
Comparative Schedule of General Fixed Assets
June 30, 2000
Sources are not readily available.
M
2000
1999
General Fixed Assets
Land
$ 27,696,681
$ 27,948,681
Structures
44,346,718
42,710,816
Equipment
14,842,176
12,099,459
Total General Fixed Assets
$ 86,885,575
$ 82,758,956
Investment in General Fixed Assets
$ 86,885,575
$ 82,758,956
Total Investment in Fixed Assets "
$ 86,885,575
$ 82,758,956
Sources are not readily available.
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■ CITY OF NEWPORT BEACH
Miscellaneous Statistics
■ June 30, 2000
■
General Information
■
Date of Incorportation ............................
...............................
Form of Government ..............................
...............................
■
Population
■
Permanent ..............................................
...............................
■
Summer ..................................................
...............................
Tourist....................................................
...............................
■
Housing units .........................................
...............................
Occupancy Factor per dwelling unit ......
...............................
■
Area
Square Miles
■
Land .......................................... .............................15
..........
■
Bay ....................................................... ....................2..........
Ocean........................................ .............................17
..........
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Total ................................................... ...................34..........
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Population Density
■
Per square mile ........................... ......................4,933.333
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Recreational Area
OceanWater ..........................................
...............................
■
Harbor Waters ........................................
...............................
Parks ............ .: ........... .......... .. .......... .......
.............................. .
■
Beaches ..................................................
...............................
■
Total ......................................................
...............................
■
Water Frontage
Upper Bay Frontage ...............................
...............................
■
Ocean .....................................................
...............................
■
Harbor ........... ......... ...................
...............................
Total Water Frontage .............................
...............................
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■
■
■
....................... ...........................1906
............................... Council - Manager
.......... ........................... :............ 74,000
.......... ...................................... 100,000
...................20,000 to 100,000 -per day
............... ............................::. :36,807
.......................... ..........................2.207
Acres
............ ............................... 9,526
.. ...........:................:1,3218
.... .........................:.....
.............................. :..........:......21,909.
Per acre ........... ...........................7.77
Acres
................. .......................11,165;
.................... ...........................:.:: 1,218:`; .
::::.....452
.............. ................. :....................... 248 .
......................... .........................13083
Miles
........................ ....................... ::....11
.... .......I ....................... ::........7
..... ......... ..............20
�R
Newport Harbor
Boats............................................:............... ...............................
Residential................................................... ...............................
Commercial Slips and Side Ties .................. ...............................
BayMoorings .............................................. ...............................
■ Public Safety
Number of Stations........
■ Number of Personnel .....
Police
...................1 ............
.................219 ..........
■ Unaudited — See Accompanying Auditors' Report.
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97
... ..........................9,000
... ..........................1,230
............................. 2,119
... ..........................1,221
Fire
...................... ............................... 6
.................... ............................125
Governmental Revenues by Source (1)
(Last Ten Fiscal Years)
1990 - 1991.::'
$52741572
526,911,630
514,456,890
-
Fines,
.
30,987,412
12,372,596
3,411,623
1992 -1993:
Licenses,
later-
Charges
Forfeitures
Revenue from -
::'4;607,009
32,330,338
Fiscal
3,406,712
Fees and
governments]
- for
and
Use of Money
1995 -1996
5,442,862
Year
Taxes
-- Permits
Revenue
Services
Penalties --
and Property -
Other
Total
1990 -1991
540,479,235
$2,808,179
- $11,029,004
$3,466,023
- $3,114,983
$9,999,416
$3,555,699
574,452,539
1991 -1992
40,466,232
1,903,044
10,819.561
- 4,609,812
3,053,246
9,611,524
2,722,037
73,185,456
1992 -1993
-- 38,471,775 -
2,006,805
- 7,621,643
4,703,200
2,582,969
9,469,060
1,031,526 -
65,866,978
1993 -1994
:,_39,809,139
2,247,233
8,993,289
- 5,077,369
2,706,194
8,660,599
_ 1,941,189 -
69,335,012
1994 -1995
- ..- 39,719,830 - -.-
2,409,523
- 10,704,000 :-
5,109,513
3,156,530
9,676,426
- 1,089,385
-- 71,865,207
1995 -1996 -
- 42,853,480
4,851,571
- 8,315,543
- 6276,416
2,855,063
11,000,272
6,540,913
;.82,695,258
1996- 1997':
44,523,935 --
4,081 .5119
11,871,417
7,185,210
2,529,015
10,497,715
10,208,241
90,897,042
1997 -1998 .:
49 .585,360
7,303202
19,656,742
6.514,830
2,573,575
11,422,977
1,593,409
"'9QQ250,215
1998 -1999
52,903,507
5,680,496
15,189,324
8,779,962
3$90,019
10,666,337
31,864,699
128;374,344
1999 - 2000 ,'..
53;085,500
1 3,933,641
11,026,768
8,338,654
2,678,620
12,062,228
860,352
91;985,763
(1) Includes General, Special Revenue; Debt Service and Capital projects Funds.
Governmental Expenditures by Function (1)
eel
(Last Ten Fiscal Years)
Fiscal.
General
Public
Public
Community
Community
Capital
Debt
Year
Government
Safety
Works
Develonment
Services
Outlav
Service
Tdta[
1990 - 1991.::'
$52741572
526,911,630
514,456,890
$2,973,750
1991.1992.
2,937,016
30,987,412
12,372,596
3,411,623
1992 -1993:
.4,359,857
31,209,589
12,779215 -
3,636,092
1993 -1994
::'4;607,009
32,330,338
15,018,898-
3,406,712
19941995
', 3,505,610
33,389,922
14,661 }43
3,336,672
1995 -1996
5,442,862
34,571273
14,779,614
2,952,247
19% -1997
5,673,321
35,647247
15,502,095 -
- 3,329,545
1997 -1998
6,790,020
- 39,168,311 - -
- 16,579,275
3,475,998
1998 -1999
7,471,850
-. 40,514,411
16,846,674
4,688,087
1999 -2000
9,317,316
41,645,783
17,192,051
4,401,493
(I) Includes General, Special Revenue, Capital Projects and Debt Service Funds.
(2) Historical
data for Debt Service
expenditures is unavailable prior to
fiscal year 1992 -93.
Soume: City Administrative Services
Department
Unaudited -See Accompanying Auditors' Report.
98
$7,283,300
$18,768,787
':''.$75,668,929
8,869,639
16,03.4,084
1` 74,612,372
8,520,758
12,226,226
$1,155,407 (2)
73,881,144
5,910,752
13,605,703
1,175,175
76,054,587
5,857,959
8,523,773
1,550,294
72,825,573
5,916,194
11,291,759
1;069,045
76,022,994
6,585,335
20,696,487
- 890,609
88,324,639
6,916,999
20,849,681
1299,284
95,079,568
7,733,720
50,684,045
1252,111
129,190,898
7,935,860
15;558,825
1,649,861
97,701,189
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$140
$120
$100
A
p $80
w
O
c $60
O
$40
$20
$0
9%
1
Governmental Revenues and Expenditures
(Last Ten Fiscal Years) ..
1990 -91 1991 -92 1992 -93 1993 -94 1994 -95 1995 -96 1996 -97 1997 -98 1998 -99 1999-
2000
Governmental Revenues by Source . ,
(Fiscal. Year 1999 -2000)
13% 1%
41/0
Governmental Expenditures by Function
(Fiscal Year 1999 -2000)
1806. 2% -..10% _
1 f 7
Unaudited -See Accompanying Auditors' Report.
KII
Q%
®Taxes
■ Licenses & Permits
* Intergovernmental
VIII Charges for Services
• Fines & Forfeitures
• Use of Money & Property
■ Miscellaneous
■General Government
• Public Safety
7Public Works
■Community Development
■Culture and Recreation
■ Capital Outlay
*Debt Service
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Assessed and Estimated Actual Value of Taxable Property
(Last Ten Fiscal Years) ■
Total
Fiscal Secured Public Unsecured Assessed & Estimated ■
Year Valuation Utility .. Valuation Valuation ■
1990 -1991
$10,013,611,946
$575,220(1)
$894,906,739
$10,909,093,905
■
1991 -1992
10,583,498,762
354,820(1)
1,010,317,328
11,594,170,910
1992 -1993
11,182 809,052
354,820(1)
893,375,850
12,076,539,722
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1993 -1994
11,179,271,032
354,820(1)
865,424,090
12,045,049,942
1994 -1995
11,178,202,789
354,820(1)
686,344,530
11,864,902,139
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1995 -1996
11,078;361,482
354,820(1)
725,943,222
11,804,599,524
1996 -1997
11,154,286,162
354,820(1)
754,892,821
11,909,533,803
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1997 - 1998
11,551,641,504
354,820(1)
778,209,144
12,330,205,468
Collected
1998 -1999
12,343,526,263
354,820(1)
1,009,975,297
13,353,856,380
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1999 -2000
13,091,299 313
324,960(1)
1,295,776,000
14,387,400,273
1990 -1991
$21,031,117 $19,863,098 -
94.45%
$433,571
$20,296,669
- 96.51%
■
(1) Effective FY 1988 -89, public utility values have decreased due to AB2890 and AB454
transferring
98.78%
the public utility values to a county-wide tax rate area.
21,759,177
- 101.13%
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Secured Property Tax Levies and Collections
■
(Last Ten Fiscal Years)
■
.. Total . Total
Percent
Delinquent
%of Total Tax'
Fiscal "
Current .Current
of Levy
Tax
Total
Collections
■
"Year
Levy. Collections
Collected
Collections
I Collections
Total Levy
■
1990 -1991
$21,031,117 $19,863,098 -
94.45%
$433,571
$20,296,669
- 96.51%
■
1991 - 1,992-
21,516,647 - 21,255,177
98.78%
504,000
21,759,177
- 101.13%
1992- 1993- : - -..:
18,859,889(1) - - 18,508,590
98.14% -
536,760
19,396,649 .
- 102.85%
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1993 - 1994 - -'
17,870,028(1) 17,131,159
95.870/c -
526,025
17,657,184.-
98.81%
1994 -1995- -
17,730,237(1) - 17,105,142(2)
96.47%
409,355(2)-
17,514,497 - -.:
98.78%
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1995 -1996
17,843,233 (1) 17,432,840
97.70%
368,913
17,801,753
99.77%
1996 -1997
- 20,563,561 20,096,688 -
97.73%
897,670
- 20,994,358
102.09%
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1997 -1998
21,i44,504 - .. 20,472,716
96.82%
1,040,120 -
": 21,512,836
101,74%
1998 -1999
22,738,432 22,084,910
97.13%
1,113,950
23,198,860
102.02%
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1999 -2000
24,667,494 - 24,207,104.
- 98.13% -
- - 1,398,573
25,605,677
103.80%
■
(1) Effective FY92193-
FY95/96, Orange County reduced
Secured Property Tax
Levy as a result
of the State Budget Process.
(2) Funds were withheld due to the Orange County Bankruptcy.
■
Source: County
of Orange Auditor- Controller's Office
■
Unaudited -See Accompanying Auditors' Report.
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100
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$15,000
$13,500
e $12,000
0
m $10,500
e
O
$9,000
C
m— $7,500
0
$6,000
w
$4,500
N
Q
$3,000
$1,500
$0
Total.Assessed Valuation /Property Tax Collections
(Last Ten Fiscal Yearn)
y mr
v�
�_y-i�. IY+' •;dy''m EC E �Y a•Y i Y.'a. ,, v n ;,.W .'dX..,�'�rc'�''�43._'fi �- +'i`�t°j`i �, k,; n:'
T Pfopertlr TasllC011eetlbro .. "_'' $25,000
ti.
$20,000
O
N
9
N
$15,000 t
l-
0
$10,000 m
0
N
r
$5,000
o.
0
a`
.I r_ F $0
1990 -91 1991 -92 1992 -93 1993 -94 1994 -95 1995 -96 1996 -97 1997 -98 1998 -99 1999 -2000
Total Property Tax Collections /Delinquencies
(Last Ten Fiscal Years) .. .. ..
$27,500
$25,000
$22,500
o $20,000
S
v $17,500
e
u $15,000
$12,500
0
;5 $10,000
m
2 $7,500
a
f° $5,000
$2,500
$0
1990 -91 1991 -92 1992 -93 1993 -94 1994 -95 1995 -96 1996 -97 1997 -98 1998 -99: 1990-2000
Unaudited -See Accompanying Auditors' Report.
101
$1,500
$1,250': m
8
'o
$1,01)0
a
c
x
$750 e
0
L
m
$500 4)
0
c
$250
$0
Construction Activity
(Last Ten Fiscal Years)
Fiscal
BuildingPetmits
Percentage
Estimated
Percentage
Year
Issued
Change
Valuation
Change
1990 -1991
7,600
- 13.64%
$110,500,000 -
-6.43%
1991 -1992
7,268
-4.37%
77,413,996
- 29.94%
1992 -1993
7,251
-0.23%
72,170,274 - -
-6.77%
1993 -1994
6,986
-3.65%
70,339,522
-2.54%
1994 -1995.
7,672
9.82%
79,691,510
13.30% -
1995 -1996
8,302
8.21%
145,760,839
82.91 %.
1996 -1997
9,085
9.43%
203,944,317
39.92%
1997 -1998.
10,332
13.73%
224,507,349
1048%
1998 -1999,
12,076
16.88%
302,598,185
34.78%
1999 -2000
10,412
- 13.78%
202,623,249
- 33.04%
Source: City Building and Planning Department,
Bank Deposits
(Last. Ten Fiscal Years)
(thousands)
CalendarYear,
BankDeposits
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
3,373,053
2000 data for bank deposits will not be available until 12 -31 -00
Source: The Findley Reports on California Financial Insitutions
Unaudited -See Accompanying Auditors' Report.
102
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$6,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
1990
Bank Deposits
(Millions of Dollars)
1991 1992 1993 1994 1995 1996 1997 1998 1999
Unaudited -See Accompanying Auditors' Report
103
Estimated Value of Construction /Number of Building Permits
(Last Ten Fiscal Years)
$350
16,000
m
$300
14,000
0
0
c
$250
•
-`
12,000
u
c
>8
_ ., -� : ,
10,000
E
f
$200
`
fi xy `
8,000
`o
u
$150
6000
E
M
w
$100
4.000
U
$50
2,000
$0
s it s
0
1990 -91 1991 -92 1992 -93 1993 -94 1994 -95 1995 -96 1996 -97 1997 -98 1998 -99 1999 -2000
$6,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
1990
Bank Deposits
(Millions of Dollars)
1991 1992 1993 1994 1995 1996 1997 1998 1999
Unaudited -See Accompanying Auditors' Report
103
Property Tax Rates -- Direct and Overlapping Governments
(Per $100 of Assessed Value)
(Last Ten Fiscal Years)
Computation of Legal Debt Margin
June 30, 2000
Total assessed value of all real & personal property $14,387,400,273 (1)
Debt limit percentage 15%
Total debt limit $2,158,110,041
Amount of debt applicable to debt limit $6,845,000
Legal debt margin $2,151,265,041
(1) The fiscal year 2000 debt limit is based on assessed value being equivalent to 100 % of
market value.
Source: City Administrative Services Department
Unaudited- See Accompanying Auditors' Report.
104
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County
County, City
Metro
Fiscal
School
County
Flood
& School
Water
Year
Districts
Improvement
Control
Levy
District
Total
1990 -1991
0.00252
0.00016
0.00082
1.00000...
0.00970
1.01320
1991 -1992
0.00231
0.00012
0.00063
1.00000
0.00744
1.01050
1992 -1993
0.00239.
0.00013
0.00065
1.00000
0.01171
1.01488
1993 -1994
0.00000
0.00011
0.00067
1.00000
0.00326
1.00404
1994 - 1995
0.00000
0.00013
0.00037
1.00000
0.00881
1.00931
1995 -1996
0.00000
0.00012
0.00000
1.00000
0.00890
100902
1996 -1997
0.00000
0.00000
0.00000
1,00000
0.00857
1.00857
1997 -1998
0.00000
0.00000
0.00000
1.00000
0.00890
A .00890
1998 -1999
0100000
0.00000
0.00000
1.00000
0.00890
166890
1999 - 2000...
0.00000
0.00000
0.00000
L00000
0:00890.
4.00890
Source: County of Orange Auditor - Controller's
Office
Computation of Legal Debt Margin
June 30, 2000
Total assessed value of all real & personal property $14,387,400,273 (1)
Debt limit percentage 15%
Total debt limit $2,158,110,041
Amount of debt applicable to debt limit $6,845,000
Legal debt margin $2,151,265,041
(1) The fiscal year 2000 debt limit is based on assessed value being equivalent to 100 % of
market value.
Source: City Administrative Services Department
Unaudited- See Accompanying Auditors' Report.
104
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CITY OF NEWPORT BEACH
Principal Taxpayer
Conexant Systems Inc.
Deutsche Bank AG %Rockwell Semiconductor
FIMH Properties, Inc.
Irvine Apartment Communities
Irvine Company
Koll Center Newport
Pacific Bay Properties
Park Newport Land Ltd.
Raytheon Company
Rockwell Semiconductor Systems Inc.
(1) Percen"eoftotal secured assessed valuation.
Unaudited -See Accompanying Auditors' Report.
Source: HdL, Coren and Cone Co.
Principal Taxpayers
June 30, 2000
Property Tax
(listed alphabetically)
Tyne of Business
Technology
Aerospace
Real Estate
Real Estate
Real Estate
Office Buildings
Real Estate
Real Estate
Aerospace
Aerospace
Total Top Ten Principal Tax Payers
105
1999 -00
Assessed - -
P, ercent
Valuation
of To- l
$ .. 416,694,209 •::,;
3.19°k
48,334,000..'
0:37%
65,9993 592:
.!'i 0:50%
252,082,303
h93%
864;045,460 ...
6.61 %
37,693,114, .
7`0:290/a
46,303,668
59,149,189
58,851,660
0.45%
65,582,762
0.50%
$ 1,914,735,957:'., 14.64%
Schedule of Direct and Overlapping Bonded Debt
June 30; 2000
1999 -00 Assessed Valuation:
(after deducting $191,157,270 redevelopment incremental valuation)
DIRECT AND - .OVERLAPPING BONDED DEBT:
Orange County Teeter Plan Obligations
Metropolitan Water District -
Newport Mesa Unified School District Community Facilities District No. 90 -1
Santa Ana Unified School District
Irvine Ranch Water District Improvement Districts
City of Newport Beach Special Improvement District No. 95 -1
City of Newport Beach 1915 Act Bonds
Orange County General Fund Obligations
-Orange County Pension Obligations -
Orange County Transit District Authority .
:Orange County Sanitation.District Nos.5, 6 & 7 Certificates of Participation
Orange County Water.District Certificates of Participation
Municipal Water District of Orange County Water Facilities Corporation
Coast Community College District Certificates of Participation
South' Orange County Community College District Certificates of Participation
Santa Ana Unified School District Certificates of Participation
Irvine Ranch Water District Certificates ofParticipation
.:;City of Newport Beach :Certificates of Participation
TOTAL GROSS DIRECT AND OVERLAPPING. BONDED. DEBT (1)
% Applicable
7.890%
1.589%
11.283 %
10.767%
0.136- 20.740 %
100%
100%
7.689%
7.689
7.689%
7.518- 88.717 %
1.280%
0.040%
27.152%
0.982%
.10.767%
2:713 %
100%
Less: Orange County Transit District Authority (80% self-supporting)
Orange County Water District Certificates of Participation (100% self- supporting)
MWDCO Water Facilities Corporation (100%self- supporting)
TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT (1)
(1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and
tax allocation bonds and non- bonded capital lease obligations.
Ratios to Assessed Valuation:
Combined Direct Debt,($7,g70,000) 0.05%
Total Gross Combined Debt 1.38%
Total Net Combined Debt 1.35%
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30100:
Source: California Municipal Statistics, Inc.
Unaudited -See Accompanying Auditors' Report.
MI.]
$0
$14,479,486,750
Debt 6130100
$10,020,689
8,733,382
2,278,602
$ 756,290
2,908,096
25,720
$196,162,335
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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
13,220,028
2,925,279
820,000
898,878
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
16,497;212
12,350,445
4,146,767
875,000
784,390
1,659,390
2.50
1998 -1999
17,658,076
11,145,936
6,512,140
335,000
593,469
928,469
7.01
1999 -2000
17,770,491
11,713,223
6,057,268
1,025,000
551,668
1,576 668 '
3.84
(1) .Gross revenues includes operating revenues, interest and intergovernmental revenues in the Water Fund
(2) Total Water Fund operating expense excludes depreciation.
(3) No revenue bonds were issued prior to fiscal year 1994 -95.
107
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Demographic Statistics
(Last Ten Fiscal Years)
City
Fiscal
City
Orange County Population
Per Capita
Median Unemployment
Year
Population
Population %of County
Income
Age
Rate
1990 -1991
69,927
2,436,074' 2.87% $
21,337
40.5
(1)
1991 -1992
66,643
2,410,556 2.76%
14,390
40.8
(1)
1992 -1993
65,172
2,599,717 2.51%
27,755
38.4.
5.4%
1993 -1994 .,
68,784
2,523,774 2.73%
49,593
40.7
4.2%
1994 - 1995. -
69,301
2,564,345: 2.70%
50,515
40.3
4.2%
1995 -1996
70,098
2,615,046 2.68%
52,452
40.6
3,2%
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1996 -1997 -
69,069 --
2,672,457 158%
53,569
41.7 "-
2.6-W'-
.6%
.
1497 -1998
70,030
2,710,718 2.580/a
56,000
43.5
2. 1%
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1998 -1999
72,623
2;775,600 2.62%
59,051
43.9
1 6% �o■
1999- 2000"
73,965
2,828,400 (2) 2.62%
62,598
44.4
15%
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(1) Unemployment rate not available-prior to fiscal year 1992 -1993.
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(2) Based on
estimated population provided by California Department of Finance
as of January 1, 2000.
Source:. FOCUS: Orange County, a magazine published by Info Outfitters.
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Unaudited -See Accompanying Auditors'
Report.
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108
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