ML13309A439
| ML13309A439 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 12/31/1997 |
| From: | Aghjayan E ANAHEIM, CA |
| To: | |
| Shared Package | |
| ML13309A436 | List: |
| References | |
| NUDOCS 9806220277 | |
| Download: ML13309A439 (48) | |
Text
ADVANCED OPERATIONAL EFFICIENCY We also strive to achieve excellence The direct-buried primary-cable in operational efficiency through replacement program also is a advanced programs and services.
bright spot in electric - and an Notably, customers in downtown Anaheim soon will enjoy improved water supply reliability and quality.
Started in fiscal year 1995, the We began replacing or relining program calls for the replacement water mains in the downtown area of direct-buried cables that are constructed prior to 1939. These near the end of their lifespan.
improvements are 60-percent More than 46,000 feet of cable were complete and will be finished by replaced last year -
without the end of fiscal 2001.
digging trenches along every street Business professionals will benefit from superspeed Internet connections of more than 2 mega bits per second due to our fiber-optic investment.
To maintain our commitment to in a tract. This method inconve advanced operational efficiency, niences residents less and is the we continued to improve water most economical and fastest.
systems in other parts of the City in addition, we have prepared and plan for future water demands for the next century of commu 96/7 ELECTRI DOLhri eern ontd eriyfe into an agreement with SpectraNet replace lasteyarp-eithou thes end opsc
- 0.
International. The agreement on the electric side, we moved allows Anaheim to become the first forward with our dynamic under-City in the nation with a privately ground conversion program, a owned and run fiber-optic network 41%
seven-decade project that will serving the City. It uses the City's eliminate unsightly overhead Universal Telecommunications power and communication lines System -50 miles of 96-strand and poles on public roads. This fiber-optic cable. The fiber-optic not only will improve Anaheim's strands, as thin as single strands 7; -
'7. t aesthetic appearance but also of human hair, can carry vast 00 esrtdevlo0ets improve electrical system reliability amounts of information at remark fU and enhance residential and able speeds-one practical commercial property values, application is superspeed Internet connections of more than 2 megabits per second.
Throughout this annual report, you will In addition, our utility contributed more read exactly how we have set the standards than $1 1 million in fiscal 1997 to the O
of excellence in our community and City's general fund, which supports industry -
understand that we are much-needed programs and services for committed to building on these successes all Anaheim residents and businesses, Ensure excellence in customer service by providing quality, competitively priced, environmentally sensitive utility services and technologies.
for even greater value to Anaheim residents and $4 million in right-of-way fees. Like and businesses. In this report, we have wise, our water services promote resource focused on four areas to illustrate our efficiency and groundwater-protection electric and water programs and services.
programs to help residents and businesses Look for these sections in the following pages:
conserve water and protect their water o Advanced operational efficiency supply while lowering their water bills.
o Sound environmental practices Simply put: We invest in our community.
o Responsive work force o Reponsve orkfrceI am proud of what the Anaheim Public o Unparalleled community investment Let me also point out that the excellence excited by the prospect of continued of our programs and services is recognized excellence. our foundation and future by Standard & Poor's. Among all public are based on our commitment to respon power utilities in Southern California, the sive customer service. We have printed INDEX To FINANCIAL INFORMATION Anaheim Public Utilities garnered the our mission inside the front cover of most positive business profile score from this annual report to share with you.
the agency. Our utility received a busi-I -
along with every Anaheim Public ness profile score of 4 and was assigned a Utilities employee -
dedicate myself credit rating of A+ with a stable outlook.
to excellence by providing high quality, The ranking of 4, out of a 10-point scale competitively priced, environmentally with I being the highest score, reflects the sensitive utility services and technologies.
risks inherent in the ownership of genera tion balanced with the adequate capacity to compete. Additionally, Duff & Phelps rates the electric utility AA. The water Edward K. Aghjayan utility is rated AaA by both agencies.
P$BC miTIoITnEs GENERAL MANAGER
WINt dcfines cellency OAW defnitown D
uhl jora mAy dt'sCribe )tN ize(l1lnCC as tMc quali of Ocilop h I)v u ota lSl~
il uiip To milt, Ili( eniplouces of tilt Andici ot ONden()fl ilol u 'ik Public Utililties Dclpartmn t dcfinc cel-r im ot l o vtw la lccc Our resp~oNsive workforce pu~irsues minnce operationa tficene I'cc
- 08101, l
sound clnvironmealal1 pra'Clice's and labors ollodlAi lch a diIvtloo for, uinparalleled onrm nit ul intvesilnent Publi Ulitie are Oninen ou wa CV and.cvyOWW0 Our-rfesponlsive wrorfore last pair aSSist-tc loidCCOi ld sr (olh Cd mu) or ! Ia 3, 500 walk-ill cushmer uiin slcl-tc101' 11 ld,
nolopa: We enteredl a uiqmauc agreemlIent()
orct~~los d
hlas year to bring sta tf-lc-urt fibr-
',T tI)r Ci il'S ntCV 1cu srv c
Anacia Public U ilities is industr-u-lead-h t tnvlm I
ow tw inq inl our queist for sound cvnvironm tllcl l uo 10 Im rOp practlice In fact a national aroup lyIastIOi o n lc iaiiiiP bi wear reoymni our Unroundwater(1 is(-prottec-can lion cfforls, and Ilhe Orancejt ColIun)otol n
~l]r urV~dllo Water District adopted' the prooram rtSat 8trt11lt' INO~
businwide In addition, UY invys in theoq to u
1 he o
m m l (mniniunity t trough outreadh progrms Id ilw hmishwbc Il toagt all segmencts of It ithedsW a cacuplsl' h'
hlON quli(tC17of our Omploes lway calu bee impornLOu Slo -cine
" Il u ilt inpin in Apromuil I s9 iw hare vcln
- fotunlt, l
Coual
- amon a ua rpn dn ilind P bic visona it i na cl ell ent il ICentury ai il. Oclici our 'lectic suianrtli UldntocAal wim,-0 and ilis di odu
ANAHEIM PUBLIC UTILITIES ANNUAL REPORT Setting the Standards of Excellence 9806220277 9W617 PDR ADOCK 05000206 I
~
PDRt
Ilk wjA
- NOW, T.Agi A
SOUND ENVIRONMENTAL PRACTICES Environmentalism is more than students charged up about energy a buzzword to the Anaheim Public issues. Three City high schools Utilities; it is core to our opera-completed our In Concert With The tions. We invest substantial time Environment program, a compre and resources annually to public-hensive lesson on water and energy benefit and educational programs conservation and other environ that inspire customers to save mental issues.
water and energy and reward them for their efforts.InadtoTeNinl for heireffots.Groundwater Foundation named the Among the highlights:
City of Anaheim as a Groundwater Environmental Faire -
In April, Guardian community because of our the Anaheim Public Utilities innovative, successful community co-sponsored the 1997 Anaheim groundwater-protection efforts. Only Environmental Faire. Its theme:
a few cities in Canada, Mexico and Colors of the Wind. More than the United States received the dis 4,500 community members attend-tinction. About 75 percent of our ed and learned environmental water supply comes from local and conservation tips.
wells, so groundwater conservation Kids across the City can seek relief from the hot sun while earning some cool cash, thanks in part to the TreePower program.
1996/97 ELECTRic DOLLAR TreePower -
Customers obtained and protection are key elements of free shade trees to help them con-our water-resource planning efforts.
serve energy and beautify their AGroundwater Fouardain Teamedth neighborhoods. To date, more than Groundwater Gurda comprised of residents and busi resientil prperies itywde.ness, education and government representatives, worked with the Water Efficient Landscape Award
-Anaheim Public Utilities to develop We recognized three residential and technical assistance programs for wcommercial property owners for businesses to reduce the use of 4%
%,winstalling water-efficient landscapes.
hazardous chemicals. Educational Also in fiscal 1997, the Anaheim aterialh alsower progra schools. Our efforts also earned Public Utilities went back to school ve another recognition: The Orange resietudpoetis ityersabu LCounty Water District picked up this water and energy conservation. We ialgprogram to implement it basinwide.
sixth-graders through the Be Electri Bright program, which aimed to get
oLem 1*4 Pk
RESPONSIVE WORKFORCE Every time a customer calls the The Anaheim Public Utilities con Anaheim Public Utilities or sistently commits to delighting cus walks into our office, we have the tomers. We have employees who opportunity to showcase our are dedicated to the community responsive workforce.
they serve. Case in point: meter Customers can expect the highest-quality service from meter reader Bob Blair -
he exemplifies our responsive workforce.
Our in-house and field staff know reader Bob Blair has read 235,358 how to exceed customers' expecta-meters since December 1994 tions. During fiscal 1997, we without one error. This simply is responded to 172,097 telephone one example of our customer-first inquires from customers with an philosophy.
accuracy rate of 99.5 percent. We The Anaheim Public Utilities has also serviced 13,543 walk-in cus tomers in our Customer Service tomes i ourCusomerSerice exceed customers' expectations in department.
coming years. We implemented a We are just as diligent about meet-state-of-the-art billing system last ing our obligations in the field. We year to more efficiently process respond to most service requests customers' bills with greater accu 1996/97 WATER DOLAR in one day and all within two days.
racy. This system links meter reading, When our meter readers perform billing and cashiering functions their duties, our residential, com-and will let us adapt to customers mercial and industrial customers future needs.
receive the highest quality service.
We read more than 1.2 million meters last year, with an accuracy rate of 99.98 percent.
E E
wihu0n ro.T i
i pyi on exml forcsoe-is
V4
UNPARALLELED COMMUNITY INVESTMENT The Anaheim Public Utilities is Our Helping Hands program is committed to the Anaheim commu-unique among utilities because nity. Our customers are more than of the breadth of services it funds.
simply residents or business It allows customers to donate owners; they are shareholders in money to Anaheim residents in the utility. We are solely account-need of assistance. The Anaheim able to them. This dynamic affords Public Utilities, in conjunction with us unparalleled community invest-the City's Community Services ment superior to the investor-Department, facilitates the project.
owned utility in the area.
The donations help low-income More than $22 million is directed to the City annually. This contribution helps promotes civic programs, such as community policing.
just how do we demonstrate our residents pay their utility bills and commitment to Anaheim residents supports other community-invest and business owners? Through ment projects, such as senior-citizen lower rates -
residential customers and gang-intervention programs.
enjoy electric rates that are The utility also co-sponsored the 28 percent lower than residents Paint Your Heart Out program.
in other Orange County cities.
The 7-year-old program tackles 199697 ATE DOLAR This saves Anaheim residents and the issue of neighborhood blight.
businesses millions each year.
Pormvlner ane h
DPgamet fcltates ited proect in addition to lower rates, we homes of 44 low-income senior reinvest funds into the community.
citizen and disabled residents.
More than $11 million is directed We incorporated our successful to the City's General Fund annually.
TreePower project and water-and 50%
This contribution promotes civic energy-efficiency audits into the programs, such as community Paint Your Heart Out program.
policing. We also contribute to the City about $4 million in right-of nway funds and about $7 million for administrative services.
ctm an bsnesowesTrog loe ae eieta utmr enjo elcrcrtsta r
28prcn-owrthnrsiet inohrOag Cut iis Thssve nhimrsdet n
buiessmliosec<er Inadto oloe aew
MO P
H I"
ndh on~
iaittnnc hexpensue, r
$1t millh n (I 9q to $22 3 ait H n
gh mal inc onU b2an dun g 1 lisca 190 Th ebo 1tii-e at San Un r HillIngduig h
th-sl~e decra sing rte W ee 1 imes te raeurn.
ilind righ' in the [vast hvt yeim <
inm ia arhJ 197d etondcrrm rhncigo nd ril f s lhi nle up n4t1 nlin fhg erltee IAtw l
<f r ni aa t-lhourh 1ol in in aheirl, a 954 M ne ct-rvi Im d
<<ontinue-11< show -tren th renquinL 3 Tk m renerg lin MY 100 re an Uelr sthTd~
in lhe m -, < II t0 ner hi a ince,
d h\\!
he d tnwisir Illlp li<
nt1 utcI
' l 1 0 5 n YI' m a o u f n w e i e
,ii 1
1 1 )
11 1
S 16A milion (8 ll d ln Wal 197 elcti W iyu w o bt 1d m
This 101<<,th iLcredsn "m cl asdl ie ea de~ in m m n
svnh Morsi nd cq r " renwe te'~~s D pt comm tmen to ecro,eluluo oN, Addreto na l min tene exp Ir, e Lil ur M
U% P rclu ed n
h~incrae $3 4 mion a rgel i d u t i o Pow r icane4 mdeup$1
'milion exhbregular Ou man enc e rvUits 2 andg of~~~~~~ ~ ~ ~
H mrn m e inpr yA 2ta s Onwel ocrin g during(-
the
'-,00~~~d ceae $2lndilgIM Q70, r m i ntduing' fisca reclucin, ~~199 dueur totS~qea the cH-ak urrent refud in o I~~erm~wint$11 Po e rjcr n St n r of high rs ntee stetw h Tr~~w~in,,n-ns~~ion o95 4er mpi in el n O N ion qde e by reve ubond ST4~~~~
~~
nk hihe and lu-fr uIt in Can irlin wa,,
mone int thx itiveg raig anee b p bi
continue a twn year tren I incrWYsig WH hd4n Kqead A17 mil iOn (di7 I to SA)M million dAontuclicrwNKm duringc Hscal 19)0T The watler uMliy has 7 "o d
r11 1emn u tii coninued t) w nne revenue partia ky1,ptlcdl~loa Wu to al Swatr Cost adjUIH u KOme factorwae uily
~ogHnn whch hlas incraseNIdannuall Ro recover (d
uswli gi~e 1ad the, highewr codt of purchow
\\e d lc aterA
' Itni" el l
Depa(-rtmnent has nw ivncrae 0ts bdse A
ei yfm imw yn system water rWen in (Aer four years vm wi udn uw,.
Wate~r,ales increased by 16 m illion tham hol fAo that increase was purchased by our-res)idential customiers.Ote (ucsi ldepo e s the samein during7 fiscal 199 iH Inreasmng e
O rs ndw l-in ido 01n1 y 2100 18MO despite p)rouLCing CA~o secq ikd 17 Wmi iodditionl gal ons of water pyinst h
AyAAder o
Ini addition, Ithe water uti iy paodds w e rn eedb l
nipa S2 3 mWlon in litiation costs surre ud-eunewsadin!Pnqr, ing the Anahieim I
s area land bsdc n.W erIsgsemIms ino~~~~enwnt~s es ao tiu nm v p igep ls. D ryA la in0tcr epe tnieat transf terS I-rq iremeintil SU Iotinu whe 111-iJ1 The wate utiiestron tinan rvii corale f5Itie whe I in Othaer source dindud roced frombon sals ad co triutio s1b
ELECTRIC UTILITY Statistics ELECTRIC OPERATING STATISTICS 1996/97 1995/96 1994/95 1993/94 1992/93 POWER SUPPLY (MWH)
Owned Generation San Onofre Nuclear Generating Station 408,135 539,558 491,647 488,916 564,868 San Juan Unit #4 259,414 337,299 298,914 298,721 Combustion Turbine 2,922 3,858 2,622 4,169 11,896 Total Owned Generation:
670,471 880,715 793,183 791,806 576,764 Purchased Power Intermountain Power Project 1,614,901 955,591 1,235,149 1,556,072 1,522,718 Hoover Dam 53,173 54,802 46,850 50,571 38,544 Power contracts 117,117 50,061 114,143 447,382 414,516 Southern California Edison Company 55,722 90,907 91,470 88,051 127,443 Non-firm purchases 399,958 821,749 596,537 289,378 386,180 Total Purchased Power 2,240,871 1,973,110 2,084,149 2,431,454 2,489,401 System total:
2,911,342 2,853,825 2,877,332 3,223,260 3,066,165 System peak demand: (mW) 500.2 501.1 514.1 467.0 530.0 ELECTRIC USE Average Number of Meters Residential 89,467 88,568 87,964 87,602 87,327 Commercial 15,545 15,500 15,248 15,201 15,202 Industrial 614 576 572 573 573 Other 109 160 152 168 172 Other utilities 12 8
1 1
2 Total meters -all classes 105,747 104,812 103,937 103,545 103,276 Megawatt-hour Sales Residential 537,294 530,901 522,622 502,354 534,435 Commercial 602,530 580,454 570,666 555,257 572,952 Industrial 1,169,179 1,127,457 1,129,019 1,118,268 1,151,736 Other 40,400 39,865 34,378 33,913 39,733 Other utilities 425,023 354,351 429,246 733,295 483,635 Total sales -all classes 2,774,426 2,633,028 2,685,931 2,943,087 2,782,491 GROWTH OF SYSTEM Transmission, 69 kV, circuit miles 67 67 68 65 63 Distribution, 12 kV and lower, circuit miles Overhead 851 856 868 895 884 Underground 508 494 488 467 451 Total transmission and distribution 1,426 1,417 1,424 1,427 1,398 Transformer capacity, kVa 220kV to 69kV 840,000 840,000 840,000 840,000 840,000 69kV to 12kV 846,000 830,000 780,000 786,000 776,200 12kv to customer 1,233,000 1,204,000 1,202,000 1,142,000 1,127,400
ELECTRIC SYSTEM SALES COMPARISON Other All Residential Commercial Industrial Other Electric Utilities Classes REVENUE FROM THE SALE OF ELECTRICITY (IN THOUSANDS)
Year ended June 30 1997
$51,626
$63,115
$100,789
$3,164
$5,074
$223,768 1996 51,845 60,979 100,695 3,207 5,285 222,011 Increase (decrease)
(219) 2,136 94 (43)
(211) 1,757 Percent increase (decrease)
(0.4%)
3.5%
0.1%
(1.3%)
(4.0%)
0.8%
MEGA WATT-HOURS ',OLDC Year ended June 30 1997 537,294 602,530 1,169,179 40,400 425,023 2,774,426 1996 530,901 580,454 1,127,457 39,865 354,351 2,633,028 Increase (decrease) 6,393 22,076 41,722 535 70,672 141,398 Percent increase (decrease) 1.2%
3.8%
3.7%
1.3%
19.9%
5.4%
AVERAGE BILLING PRICE PER KILOWATT-HOUR Year ended June 30 1997
$0.0961
$0.1047
$0.0862
$0.0783
$0.0119
$0.0807 1996 0.0977 0.1051 0.0893 0.0804 0.0149 0.0843 Increase (decrease)
(0.0016)
(0.0004)
(0.0031)
(0.0021)
(0.0030)
(0.0036)
Percent increase (decrease)
(1.6%)
(0.4%)
(3.5%)
(2.6%)
(20.1%)
(4.3%)
AVERAGE NUMBER OF METERS Year ended June 30 1997 89,467 15,545 614 109 12 105,747 1996 88,568 15,500 576 160 8
104,812 Increase (decrease) 899 45 38 (51) 4 935 Percent increase (decrease) 1.0%
0.3%
6.6%
(31.9%)
50.0%
0.9%
AVERAGE ANNUAL USE BY METER IN KILOWATT-HOURS Year ended June 30 1997 6,005 38,760 1,904,200 1996 5,994 37,449 1,957,390 Increase (decrease) 11 1,311 (53,190)
Percent increase (decrease) 0.2%
3.5%
(2.7%)
Amounts represent revenue excluding the change in unbilled revenue
Statistics (continued)
ELECTRIC NET REVENUES AVAILABLE FOR LONG-TERM REVENUE BOND DEBT SERVICE (in thousands) 1996/97 1995/96 1994/95 1993/94 1992/93 REVENUES Sale of electricity Residential
$51,626
$51,845
$50,439
$47,433
$50,546 Commercial 63,115 60,979 60,051 57,547 58,243 Industrial 100,789 100,695 99,877 96,718 98,559 Other 3,164 3,207 2,768 2,674 3,267 Other utilities 5,074 5,285 7,240 14,150 9,376 Billed revenue from the sale of electricity 223,768 222,011 220,375 218,522 219,991 Change in unbilled revenue 4,530 667 (1,015)
(625) 25 Total revenue from the sale of electricity 228,298 222,678 219,360 217,897 220,016 Provision for rate stabilization 14,251 20,956 19,750 12,839 12,881 Other (including interest income) 6,586 9,914 8,422 8,847 5,762 Total gross revenues 249,135 253,548 247,532 239,583 238,659 EXPENSES (excluding depreciation and cancelled project costs)
Cost of purchased power 141,120 127,839 128,926 136,602 138,228 Fuel used for generation 2,212 3,370 3,104 2,957 4,618 Operations 38,093 37,994 39,374 33,776 23,344 Maintenance 14,817 11,391 11,924 6,781 21,674 Total operating expenses 196,242 180,594 183,328 180,116 187,864 NET REVENUES (a) 52,893 72,954 64,204 59,467 50,795 Parity Bond debt service requirements (b) 19,649 20,763 20,726 19,567 21,020 Deposits to Renewal and Replacement Account 301 118 152 1,410 790 SURPLUS REVENUES (C) 32,943 52,073 43,326 38,490 28,985 Qualified obligations purchase payments (d) 11,058 11,058 10,920 7,784 5,320 ERAN interest and related expenses 804 845 777 594 566 Net revenues after debt service payments 21,081 40,170 31,629 30,112 23,099 Transfers to Anaheim General Fund 9,674 9,491 9,345 9,455 8,903 BALANCE FOR OTHER PURPOSES
$11,407
$30,679
$22,284
$20,657
$14,196 Times parity bond debt service coverage (a/b) 2.7 3.5 3.1 3.0 2.4 Qualified obligation debt service coverage (c/d) 3.0 4.7 4.0 4.9 5.4
C)
CDO~
>C-.
0 oC O-0 CD CD
- 2 a-C
()
- a i D
-~
6 3
L 3
a-C D~ ~ ~
0 0;
B' aC- ~ O 0
CD '
-C SC
-D 3o m =aF E 3 CDC S<
a-a-c 3D CD 0-C D
CL D
c~
I 0
0
- 2.
0 Fri C
zz C) 20 C"
-D 3
C 0CD
'n CD
-D C)'
m
Ol
=2 0
0
-00 02 0i 0
0c
-00 3:
0C -
-0
(-
- E_
2 CD
<ON zC ~C -( N -
D' CD D
0-N C
D' CD
'0~~
<0 co-S SCC)-
J 0N' C'J DDO' 0
-0 0
0 NJ
=' (S S
m N
b b'
'0 r0N PD 0,
OJ co w)'
N1 1
0'CS O 0)N4 N-0
- 0) 0
- b.
'0w
'0olLh L 0)
NJ Ln' N
'0 t
4o-:
N NlL nK
)0 4
(
wCCCC w)N 0-
'0 UI0 NJ Lh w'0 w
0
-0 NJN'000 C'~0OC')N 0'C')NJCO
~
~
N
-'toQ0 N
S O
C,
'C
'C)
~
N
'N'
-~~Q' C')'
LnOO O0 O
0S-C)CN N
(C
~
~
Statistics (continued)
WATER SYSTEM SALES COMPARISON Commercial/
All Residential Industrial/Municipal Other Classes REVENUE FROM THE SALE OF WATER (THOUSANDS)
Year ended June 30 1997
$23,750
$12,469
$1,663
$37,882 1996 21,722 11,188 1,372 34,282 Increase (decrease)
$2,028
$1,281
$291
$3,600 Percent increase (decrease) 9.3%
11.4%
21.2%
10.5%
UNITS OF WATER SOLD (HUNDRED CUBIC FEET)
Year ended June 30 1997 18,443,116 12,224,252 758,581 31,425,949 1996 17,291,283 11,508,489 477,933 29,277,705 Increase (decrease) 1,151,833 715,763 280,648 2,148,244 Percent increase (decrease) 6.7%
6.2%
58.7%
7.3%
AVERAGE BILLING PRICE PER (HUNDRED CUBIC FEET)
Year ended June 30 1997
$1.2877
$1.0200
$2.1923
$1.2054 1996 1.2562 0.9722 2.8707 1.1709 Increase (decrease)
$0.0315
$0.0478
$(0.6784)
$0.0345 Percent increase (decrease) 2.5%
4.9%
(23.6%)
2.9%
AVERAGE NUMBER OF METERS Year ended June 30 1997 51,119 6,211 1,653 58,983 1996 50,665 6,130 1,644 58,439 Increase (decrease) 454 81 9
544 Percent increase (decrease) 0.9%
1.3%
0.5%
0.9%
AVERAGE ANNUAL USE BY METER IN UNITS OF HUNDRED CUBIC FEET Year ended June 30 1997 361 1,968 1996 341 1,877 Increase (decrease) 20 91 Percent increase (decrease) 5.9%
4.8%
Amounts represent revenue excluding the change in unbilled revenue
Z CUC ~
0 rrU
- l.
0-~~(
m CD0
-,~I
<(
3 m-(0E m
3 z
C.,
m 0
~
~ 0 CD a (U CD Z
C2-CU-z0 (U
3
(
0 c
r
~
~~
~
Z U
(
> U C'
CD Q-CD
=
9:
0c" m1 LU7 o C
00 (U
0 r'o M
CD~
S 0 W(
C
$z 6-C3 E-m.L 0
L M:
3.M 0
r=1 (D
3 U CD 3'
- 0.
(U<
0<m CD r S' D
0 (U
00 m U
-0 B
3 00
<0 3
T 00
>~
(U w
~
w)
-G 0,
-P,,
00
-0~
~ ~ 0'0 (A
TN* :O
- 14.
U, 't
((
C)
(01
'4 N '40r, 0
41 1O Ka0 U) 10
'0o N
Pa C~ )
C.
t7..
-1.
Xo 0
'o Ht.-1 N
Nw t (AONO
'ONN W
N)N)
C1N)-'0D)Nm(0 0
-L 0
cn 1
l
-nJ (c) m0 41N
-03
'0 N)
(o-Cl
)
0
~
>)
wN)U)'
N) 14
'0 L
(0Q co0 '0 r)-
'0 ~-
Ka)'4 0
'0 0'
N)
-!0(
(0 9C1)
CNN) N 0
'0 N 4,
.N)
N)h N,-,
-o 0
(
c) 0c)
'0 4
W~
W' W~
o(
0
(-)C1
'0N) 0' w
(0N C.,
'00 N.. 0' '
- 0)
(-
'00 w) w 0)OD' w'
ELECTRIC UTILITY Audited Financial Statements ELECTRIC UTILITY FUND BALANCE SHEETS (in thousands)
June 30, 1997 June 30, 1996 ASSETS Utility plant:
Production
$288,673
$285,642 Transmission 21,624 18,271 Distribution 208,223 188,818 General 53,815 48,211 Gross utility plant 572,335 540,942 Less: accumulated depreciation (167,635)
(151,311)
Net plant in service 404,700 389,631 Construction work in progress 24,386 32,905 Nuclear fuel, at amortized cost 5,792 4,981 Net utility plant 434,878 427,517 Restricted assets:
Cash and investments 132,405 123,907 Other 1,049 996 Total restricted assets 133,454 124,903 Unrestricted current assets:
Cash and investments 31,143 58,181 Accounts receivable 32,197 27,864 Accrued interest receivable 2,224 2,609 Materials and supplies 5,040 5,080 Prepaid purchased power 2,577 2,372 Total unrestricted current assets 73,181 96,106 Other assets:
Orange County receivable 4,103 4,103 Unamortized bond refunding costs 21,438 19,742 Unamortized project costs 40 30 Unamortized debt issuance costs 1,938 1,485 Total other assets 27,519 25,360 TOTAL ASSETS
$669,032
$673,886 (continued)
- D 00 ff n
=D 0
Co E0 C2 CD c
0 3 D ID M CD2
-0 UD-CD c
=.
oc
-r
-0 CTo 0
CD 0
(D
-0 CLo CD <
6 a
C -0
=
(A
&r C
0 T
0
-0 Z
0 LA 0-0 00 n
30-0 LT CD m
CD Q-o 0
C Q-CD CD 2 CDZ (D ~ C C-0 0a
'C 0
-00 C
0 CI (D
14 Z."It
'14 C)D J.
0' c~
c~0
- 1.
ID a
C 0'(/
- NQC,
-'C k)O
)Nw 0'
O'0 N
co)C )'
-1' 0
0'
Audited Financial Statements (continued)
ELECTRIC UTILITY FUND STATEMENTS OF INCOME (in thousands)
YEAR ENDED June 30, 1997 June 30, 1996 Operating revenues:
Sale of electricity
$228,298
$222,678 Rate stabilization adjustment 14,251 20,956 Other operating revenues 1,646 2,845 Total operating revenues 244,195 246,479 Operating expenses:
Cost of purchased power 141,120 127,839 Fuel used for generation 2,212 3,370 Operations 38,093 37,994 Maintenance 14,817 11,391 Depreciation 18,081 16,558 Canceled project costs 743 Total operating expenses 214,323 197,895 Operating income 29,872 48,584 Other income (expense):
Interest income 4,940 7,069 Interest expense (19,903)
(21,864)
Total other income (expense)
(14,963)
(14,795)
Net income
$14,909
$ 33,789 ELECTRIC UTILITY FUND STATEMENTS OF CHANGES IN RETAINED EARNINGS (in thousands)
YEAR ENDED June 30, 1997 June 30, 1996 Balance at beginning of year -previously reported
$180,594
$155,724 Adjustments (See Note 1)
(3,080)
(2,508)
Balance at beginning of year -restated 177,514 153,216 Net income for the year 14,909 33,789 Transfer to the General Fund of the City (9,674)
(9,491)
Balance at end of year
$ 182,749
$ 177,514 See accompanying notes
(~
0 0
00 CD C
0 0
D Cc P~
2000 0
a Q0 0>
CD0 0
n oo CD m
0 n
CD~l Q0 QA CL 0 CD 0
A O
0 20 CD 0
_0 000 0
0 COL 0
C 0-
'D A 0
0 C2_ U C
-CD 03-2l 03 3
0 0
0 S" O CD 000D 0
0o <2 Q-SC C
(D CD0
<0 03 0 00 0
o C <
Q -
0 0
CD 0
<O 00 C 0 C CM0 0
0 CD 0 D"
a Cl0
-0
.0, a-oc 3
C(D
~
Z3<
0 0
0 5a.
CD 0 5, CD )
-:D 0-C 3
0
~
C) 00 0
C E- --
,6 L-a c
C q-
,~
'ID i6 A= 0gD0 Ao m
m~
0 ID
-0
- 0) a 0
0 O-o 0
<0 00 0C 0
CD CD C_
0 0-
-o (a-
_0
=
D I
C CD C 0 c
a-ca
(
a
~
CD o
0 QC C)
CD 220
-3 C
-c i
0
@C 0
D
<0 ccA A
Q0 a CD 0
0 0r CL 0<
C DC 0
CD CD CC Aa 0
a-0 C
. 0
-0 C
20 0-=
0 co 0-a D(
_0 3
0 CD n
(a CD CD m
S
- E a0 CD a <
9 C.0
- 5.
0 U
0 0"
m C
w4 L, dCQ
~
)
-Z 0z w) wJ-K
- l.
0? C O0C L"
-z C)
C.
wO LAN w
0-rl N)CO C
N)~~
C O5
"-~
C mO 10-k
'O'4 0
C O
,4O C.m) o m
c cOC CO O
CO
)
)
w~
0' N t
00 r-CO
')O 0
O CO
'O
ELECTRIC UTILITY Notes to Financial Statements NOTE 1
SUMMARY
OF SIGNIFICANT Pooled Cash and investments ACCOUNTING POLICIES The City pools available cash from all funds for the Basis of Accounting purpose of enhancing interest income through invest The Electric Utility Fund (the Electric Utility) of the ment activities. Investments are carried at cost or City of Anaheim (the City) was established lune 30, amortized cost, except for deferred compensation 1971, at which time the portion of the Citys General investments which are carried at fair value. The fair Fund equity relating to electric system operations was values of investments are estimated based on quoted transferred to Electric Utility equity. The financial market prices for those or similar investments.
statements of the Electric Utility are presented on the Additional information pertinent to the value of these accrual basis in conformity with generally accepted investments is provided in Note 2. No loss is recorded accounting principles and accounting principles and when fair values decline below cost, as such declines methods prescribed by the Federal Energy Regulatory are considered temporary. The City intends to either Commission (FERC). The Electric Utility is not subject hold the investments until maturity or until fair values to the regulations of the FERC. Under Governmental equal or exceed cost. interest income on investments Accounting Standards Board Statement No. 20, the is allocated to all funds on the basis of average daily Electric Utility has elected not to apply Financial cash and investments balances.
Accounting Standards Board pronouncements issued For purpose of the statement of cash flows, the after November 30, 1989.
Electric Utility considers cash equivalents to be highly Utility Plant and Depreciation liquid short-term investments that are readily convert The cost of additions to utility plant and replacement ible to known amounts of cash and mature within of retired units is capitalized. Utility plant is recorded three months of the date they are acquired. Cash and at cost, including capitalized interest, or in the case of cash equivalents are included in the City's cash and contributed plant, at fair market value at the date of investments pooi and in accounts held by fiscal agents.
the contribution, except those assets acquired prior Revenue Recognition to luly 1, 1977, are recorded at historical cost. Cost To provide a better matching of costs and revenues, includes labor, materials, allocated indirect charges the Electric Utility accrues estimated unbilled such as engineering, supervision, construction and revenues for energy sold but not billed at the end transportation equipment, retirement plan contribu-of a fiscal period. Residential and smaller commercial tions and other fringe benefits, and certain adminis-accounts are billed bimonthly, and all others are trative and general expenses. The cost of minor billed monthly.
replacements is included in maintenance expense.
The net book value of assets retired or disposed On January 28, 1986, a wholesale rate refund policy of, net of proceeds, is recorded in accumulated (Policy) which included establishing a Rate Stabili depreciation.
zation Account IRSA was adopted as part of the Electric Utility's Rates, Rules and Regulations. The Depreciation of utility plant is provided by the Policy provides for establishment of a rate, in cents straight-line method based on the following estimated per kilowatt-hour of sales, by which funds are trans service lives of the properties:
ferred from the RSA to the Electric Utility Revenue Production 30 years Fund. This transfer is made on a monthly basis.
Transmission & distribution plant 20 to 75 years Unbilled electric service charges are included in Other plant and equipment 5 to 50 years accounts receivable at year-end. Unbilled accounts Depreciation on contributed assets is charged directly receivable totaled $13,810,000 and $9,280,000 at to contributions in aid of construction. During lone 30, 1997 and 1996, respectively.
fiscal years 1997 and 1996, $733,000 and $694,000, respectively, was charged to contributions in aid of construction.
(D-ETC
-C m
cc2
~
c c~
nQ I-D I
D C
r (D cca
-~
I-D "i
- 4 cm -)
0-0 c
7 9 ~
~ d D'< 2~
00IaD
<ID' c' ca c7 c cC 4 c 00 ~
~ c c 0 0 c CD~~c 0
W~~2 mc 0
~~9
~
c
~ c S.
n 2
ZBD cc~~~~~~~~~
1ic
=
,c c
. ~ o Q
0
~
2
~
~
2 Dcc~~~~~C (Dc
'D
'0c
~
,c22 2c0
~
Q c
c
~
~
m
~
c 0
CL cc 2~c 2 ~m c
-~
r
.c 2
c- -c CD DO c
2 2
m
-D cc 2-cc a~
wC Cc
-C 0
0C D
cr~
2--.-
- a. X) zD a
c-,ccC 29 0
c 0 'c ID'c cc-0
(
cc~-
(D 0
0 c
c c
(Dc (D,
c D
0 c-
-0~2 2
c c
.~~~~~I 2
0
-'cC 1
c~
-D IDC
.;C C~
=c m cc, (D
0 cq2' c-T
(:
cc
,c cFD-rDc c
cc (Dc cc o
~
c 0
c {
r, 2
B
~
C IDc~,
9 c
c
~
c c-c c
(D M C
0, Mc0.
22 CD 0 C c
=
a r
C, (D
(D ccc 2
2 2 "D o2 C)(
'0 aD ID 0-'
(Cm'
-c 9
c(D cc W
r)
Z
~0.
>02 a
M4 0 IDD-
<2 0
2P.~c c
c 00~
IDc I" Kc c-c 2, c c-C -
ibc,-
O ~D cc C:
c D 2
'm.
20' cw-M r)c-0 (D r)
E; w~
cc ca a-) c 02 BCD c-~~~
u)9 2~c 0_c 2
c D cm'
-11 cc 0,
=1 0cc Ja-CL-c cc 2 cm 0--c ccCw (cm cc7c c
0 2 2 C
0m 0-cc c
ccc(
ml-c-n-~c cc WlC (DD<
cc
- -1
_D
-(Dc 0
~
C7 cc
-D
=c c
C' -
0 20 cc -0c w - D cO 2c.
2-CDCD 2
0 ID->
c C
r)
U-=,
D a
I a
m 0
c 2<
a c -P c
n
~'
a n
~ ~
~
c 2cc0 zc
Notes to Financial Statements (continued)
The Electric Utility's projected minimum payments NOTE 140RANGE COUNTY RECEIVABLE for purchased power due under these take or pay contracts for the next five years are as follows:
and the Orange County Investment Pools (collectively Fiscal Year Amount Pool) filed petitions under Chapter9of the United 1998
$103,306,000 State Bankruptcy Code. At the time of the bankruptcy, 1999
$103,232,000 the City had funds invested in the Pool. On May 2, 2000
$103,326,000 1995, the United States Bankruptcy Court (Bankruptcy 2001
$103,442,000 Court), approved a Comprehensive Settlement 2002
$96,756,000 Agreement entered into by and among the County, the On luly 1, 1988, the Certificate of Completion of the Pool and a majority of the Pool Participants, of which initial facilities of the Intermountain Power Project the City was a part, which allowed the City to recover (IPP) was executed and as a result the surplus in IPAs approximately 80% of its investment in the Pool and Construction Fund was transferred to IPA's General allowed certain classes of claims against the County Reserve Fund and will be allocated to the various (Settlement Secured Claims and Repayment Claims) participants based on the Plan for the Disposition of for the halance of its investment.
Surplus Funds. The Electric Utility's share of these Subsequently, in late 1995, an agreement (the joint surplus funds was approximately $31 million, which Agreement) was proposed and later accepted by a the Electric Utility has used to reduce IPP purchased majority of the Pool Participants, providing for a fund power costs.
ing source and settlement of the County bankruptcy, Deregulation Legislation which allowed the County to emerge from bankruptcy Recent state legislation requires open competition in May 1996. The Joint Agreement provided that the in the furnishing of electricity to all retail customers Settlement Secured Claims and Repayment Claims, by investor owned utilities beginning lanuary 1998.
which are impaired classes of claims under the bank No prediction as to the impact of this legislation on ruptcy. would be made nonrecourse as against the the municipal utility has been included in the County, and would be paid only from net litigation accompanying financial statements.
proceeds of pool-related litigation if and when recov ered by the County from third-party defendants. In Litigation addition. under the Joint Agreement, net litigation A number of claims and suits are pending against proceeds from pool-related litigation would be distrib the City for alleged damages to persons and property uted among the Pool Participants and the County in and for other alleged liabilities arising out of matters accordance with a complex formula. The joint usually incidental to the operation of a utility such as the electric system of the City. In the opinion of million litigation fund to pay litigation costs incurred management, the exposure under these claims and in pool-related litigation.
suits would not materially affect the financial position of the Electric Utility as of lune 30, 1997.
As the City's investment in the Pool was commingled for investment purposes, the receivable was allocated Capital Expenditures to all City funds based on each fund's November 30, The Electric Utility's budget for fiscal 1997-98 provides 1994 cash balance. The Electric Utility's allocated non for capital expenditures of approximately $31.867,000, recovered principal balance of the Pool, amounting to of which $6,823,000 is expected to be funded by bond
$4,103,000 at June 30, 1997, is considered to be long proceeds and contributions in aid of construction, term in nature and is classified as "Orange County receivable."
The outcome of the pool-related litigation is not determinable and, therefore, the ultimate collectibility of the receivable cannot reasonably be estimated.
However, in the opinion of the Electric Utility manage ment, any nonrecovered claims will not materially affect the financial position of the Electric Utility.
a' 0
3 no0
~I 0
0 0
Q 0
C 0
r (D
Co CD C
0D o-C CCD CD' (2)
I
=CID
=D =-O~ I C
8 I
- 0 oD CD 0D RD-cm 0
C 2 ~
0
-o C~,
00 0
0 0-F~
w 2
2Do0Z C(P o-D~ D 00 ID
- m.
C
-D'C L
0n~
C C- ~ 0~0 0 C oC ' 0C C0 D
CO* D.C -D 0-D n0 C
0 DC D
0 2
o 0
0 0
0 C
CD CD ~0282 0
(fl 0
0(D 0
n a
!4 R
CD0 DD i f CD 0 C 0
~
-C CDD 0-D m
8 80-8 DC r
0-*
008 8
D n
8 0)0 0
C O
2 C
C hC D ;
0 0
0
~
MC 0
2 0
0
- 0 0CD
( -
0 0 DC -,< 0 0 D a)-
0-
<0
~
C
- p CD 0-DO
-CD nD T
~
00 0(D 0
~
o 00 0Z 0D 0-.D 2
0 DD02~,0 D
Co ID~
ID r_'
00 Fr 5'2 2
~
0 0 C
~
0 0
(D o
88 0-~
00
~'0"1 D
>~~8
~Q F00 0 D'
0D 2CL-0 0C CD m
14D rD ID L
r0 or ID2 0
.0-(D C0 a,
(D0 8
2C 0
C 0
=
m E_
<Dw D
0 C
22 D
2-0 2
~
(D ID
- 7)
CD 2 0(D a'D 0'
E0 (D
C A
0 0
0-0 CD ID
-D0
-60 0D a, 0 CD TD~.
0
, 0 O' -
C)
(D 00 00 V-r 20 D 20 0
(
O C-0 CD~~
-2.
.'0 0
0 D 0
0D 0'X 0 0_
~~~
n I 0
w
~
'0 0 C O z
0n 0
0 00 0C 7
0<
0 0-CD0
Notes to Financial Statements (continued)
NOTE 2 CASH AND INVESTMENTS investments are uninsured and unregistered, with secu The City maintains a cash and investment pool, which rities held by the counterparty's trust department o includes the cash balance of all funds, and is invested agent in the Electric Utility's name. Category 3 invest by the City Treasurer to enhance interest earnings.
ments are uninsured and unregistered, with securities The pooled interest earned, net of administrative fees, held by the counterparty, or by its trust department or is reallocated to each fund based on average daily agency, but not in the Electric Utility's name.
cash balances.
The Electric Utility's investments pooled with the City Statutes (Govt. Codes 53600 et al. 16429.1 and 53684),
Treasurer or held in guaranteed investment contracts as further limited by the City's Investment Policy, and mutual funds are not subject to categorization authorize the City to invest in obligations of the U.S.
because they are not evidenced by securities that exist Government, Federal Agencies, Medium Term Notes, in physical or book entry form.
Certificates of Deposit, Bankers Acceptances, The Electric Utility maintains cash and investments Commercial Paper rated A-I by Standard & Poor's with the following carrying amounts:
Corporation or P-1 by Moody's Commercial Paper Record, Local Agency Investment Fund (State Pool),
Cash and Investments pooled County Pools, Repurchase Agreements, Reverse with the City Treasurer
$94,839,000 Repurchase Agreements, Mutual Funds and Investments held with Trustee 68,709,000 Collateralized Negotiable Instruments.
$163,548,000 Classification of Credit Risk Cash and investments are recorded on the Electric Cash and investments are categorized to provide a Utility Fund Balance Sheet as follows:
description of the level of risk assumed by the Electric Utility. Category I investments are insured or regis-Restricted assets - Cash and Investments
$132,405,000 tered, or securities are held by the Electric Utility or Currentassets_-_CashandInvestments
_31,143,000 its agent in the Electric Utilitys name. Category 2
$163,548,000 At mune 30e1997, cash and investments were categorized as follows Category Carrying Market 1
2 3
Uncategorized Amount Value Investments held with Trustee U.S. Government securities
$26,224,000
$26,224,000
$27,213,000 Mutual funds 2,226,000 2,226,000 2,226,000 Guaranteed investment contracts 40,259,000 40,259,000 40,259,000 Cash and investments pooled with City Treosurer 94,839,000 94,839,000 94,697,000
$26,224,000
$137,324,000
$163,548,000
$164,395,000 investments held with Trustee Fiscal agents on behalf of the City hold and invest funds from long-term debt issuance. Fiscal agents are mandated by bond indenture as to the types of investments in which proceeds can be invested. Investments by fiscal agents predominantly consist of U.S. Government securities held in book entry form. Amounts invested by fiscal agents include investments that are insured or registered or for which the securities are held by the City's agents in the City's name.
NOTE 3 OPERATING EXPENSES NOTE 4 UNAMORTIZED PROJECT COSTS Operating expenses shared with the Water Utility Unamortized project costs represent advance pay amounted to $11,970,000 and $12,603,000 for the ments made to participating agencies for preliminary fiscal years ended June 30, 1997 and 1996, respectively, engineering and environmental impact studies for of which $9,576,000 and $10,082,000, respectively, the related projects.
were allocated to the Electric Utility.
NOTE 5 JOINTLY OWNED UTILITY PROECTS The shared expenses are allocated to each Utility Pursuant to a settlement agreement with SCE, based on estimates of the benefits each Utility dated August 4. 1972. the City was granted the right derives from those common expenses.
to acquire a 1.66 percent ownership interest in
(
D 0
B CnuI'
-D n0
'0 ZD n*0 0
~
~
0 C
0 r'C D ID'
- ~ ~,0 C
00-0-0 0--( IDo
-'D(C
'~'5n
'0 00(
I~C
(--
=-
-N 00 7O' d ~
0 C 2
~ a a D
-C'C D
~
0 j-0' -4
- 0)
- 3 0 Cl 0 C (D 2C flr:'~
o
, 0
-D
-g 0
o r)~g zC o
C
(
0' 0
~
C D
00 (D
ID Q0(
IDn0 W
(D O0~
~
~
C D0 C
(0FI CD a0 0- -'
,0 0d D ~
0 C)
(D o
a 0
" 0CD LD 0
(D a
5 3
19 C)
E3-n 00 C
3d7 a-10 (D
~~~I a
I D~~~~00D o
-~
C C
0 CD 0 ~ d ~ f 0
CD 0
CD (Da(
rC
( 0 0-(
a IDD D 0 0 H'CD E'
CT (D(3~
CD~I (0
0 00("C P.DC 0'~
'~
P
(
(D IDo (D
(0~
(
D 0
~<0D (0
-'(0 DC cr M-
.0 w) C0)
C
- 3 (D
d
<).
n d
(D (0
CD w
(D 0
(CD
- 3D ctQJ a 0 4
00-=2-0 0
C) 40 0 o 0 2 o'
CL
-0 0D CD0 doCO 2 ~ 0 0
'Qd C7 160 D,.
-'j
-10 0D ID ED" J 0
0-
'WD 0(0 2)'"o 00, D)doC D
'0 (07 0
(0 DC 0~~
'0(0 rr CD o
c>
Z_
ID CD
-D CD 0T "I0 CDC~
0 CDD2ID0DCD -0O~
2-3
(
,-D 0 (0 0' CD z0 0
0 (D' f(Dl(
~
(0
(
CD~~
0-r)
(- a300~>~
'C D (D 0D o
~
30-D 2
~(
-1 On 03 (D
(D o 0(0 Wo.2 0
do00C)<'
~
W~~
CDd r) 0 CD 0 D (D -o ( ~
O >~C N 0
P
- 200 M5 0
a-a; CD 0 F3 a
D
=,,'
0(0 i
0 C,
nDo(
0-0 ( ( 0 C C
0 o 2'
(
o 0 0 C
C0 '<'
0-I a,~0 00
-~
(D o
10 g l
(
o 0
n (0
M0 CD
(
n L
x3(d 00 0-C
- 0) o, a (0(0 n
-J0 a0 D-~
CD
- 0.
0 0d
~ ' ' -
o 0
0 o
F 0 0
(0 0-)
(0) o 0
w 00
Notes to Financial Statements (continued)
Long-term debt consists of the following:
June 30, 1997 June 30, 1996 Electric Revenue Bonds, Issue of 1993, TIC 5,07%, dated June 1, 1993, sold 54,275,000 55,025,000 June 23,1993, in the amount of $60,700,000. The remaining principal of
$54,275,000, at rates ranging from 4.30% to 5.10%, mature serially through October 1, 2007 in annual principal installments ranging from $790,000 to
$6,615,000. The total debt service is $71,978,000 to maturity.
Anaheim Public Financing Authority Revenue Bonds, Issue of 1993. TIC 5.68%,
70,400,000 70,715,000 dated June 1, 1993, sold June 30, 1993, in the amount of $71,300,000. The remaining principal includes: (I1 $43,860,000 at rates ranging from 5.00% to 5.55%, mature serially through October 1, 2013 in annual principal install ments ranging from $335,000 to $5,555,000, (2) $7,115,000 at rates of 5.60%
are term bonds maturing through October 1, 2017 subject to mandatory redemption from October 1, 2014 to October 1, 2016, in annual principal installments ranging from $2,205,000 to $2,540,000, and (3) $19,425,000 at rates of 5.625% are term bonds maturing through October 1, 2022, subject to mandatory redemption from October 1, 2017 through October 1, 2022 in annual principal installments from $2,725,000 to $3,790,000. The total debt service is $128.140,000 to maturity.
Anaheim Public Financing Authority Revenue Bonds, Second Issue of 1993, 61,225,000 61,735,000 TIC 5.80%, dated luly 1, 1993, sold August 12, 1993 in the amount of
$62,810,000. The remaining principal includes: (1) $3,505,000 at rates ranging from 4.50% to 5.40%, mature serially through October 1, 2009 subject to optional redemption on or after October 1, 2003, in annual principal install ments ranging from $120,000 to $485,000, and (2) $57,720,000 at a rate of 5.75% are term bonds maturing through October 1, 2022, subject to mandatory redemption from October 1, 2010 to October 1, 2022 in annual principal installments ranging from $45,000 to $6,690,000. The total debt service is
$131,734,000 to maturity.
Electric Revenue Bonds. Issue of 1994. TIC 5.69%, dated luly 1, 1994, sold 5,280,000 5,280,000 August 3,1994 in the amount of $5,280,000 issued by Financing Authority for Resource Efficiency of California (FARECal), at rates ranging from 4.60% to 5.90% mature serially July 1, 1997 through 2010 subject to optional redemp tion on or after July 1, 2004, in annual principal installments ranging from
$325,000 to $585,000. The total debt service is $7,199,000 to maturity.
Electric Revenue Bonds, Issue of 1996, TIC 4.77%, dated October 1, 1996. sold 95,395,000 October 31, 1996, in the amount of $95,395,000 at rates ranging from 4.25% to 5.00%, mature serially to October 1, 2007, in annual principal installments ranging from $10,045,000 to $13,565,000. The total debt service is
$113,592,000 to maturity.
Total revenue bond debt 289,893,000 320,838,000 Note payable to Internal Service Fund of the City, 8.95%, issued October 13, 674,000 752,000 1984,in the amount of $1,342,000, the remaining annual principal and interest payments ranging from $27,000 to $145,000 through October 31, 2003. The total debt service is $880,000 to maturity.
Electric System Certificates of Participation (Combustion Turbine Peaking 18,730,000 20,775,000 Plant),TIC 7.3 1%, dated September 15, 1989, sold October 12, 1989 in the amount of $44,336,145.10. of which $25,395,000 was advance refunded on June 1, 1993. The remaining principal of $18,730,000, at rates ranging from 6.70% to 7.20%, mature through October 1, 2006 in annual principal install ments ranging from $2.180,000 to $2,845,000. The total debt service is
$19,041,000 to maturity.
Long-term debt consists of the following:
June 30, 1997 June 30, 1996 Electric System Certificates of Participation (Public Utilities Building), TIC 1,150,000 1,275,000 7.15%,dated November 1, 1990, sold November 12, 1990 in the amount of
$41,605,000, of which $40,240,000 was advance refunded on june 1, 1993.
The remaining principal of $1,150,000, at rates ranging from 6.20% to 6.50%,
mature through October 1, 2001 in annual principal installments ranging from $185,000 to $395,000. The total debt service is $1,320,000 to maturity.
Electric System Certificates of Participation, Issue of 1997, TIC 5.92%, dated 25,000,000 May 1, 1997, sold May 13. 1997 in the amount of $25,000,000 issued by Financing Authority for Resource Efficiency of California (FARECal), of which (I) $10,110,000 at rates ranging from 4.50% to 6.00%, mature serially through April 1, 2015 in annual principal installments ranging from $355,000 to
$855,000, but the certificates maturing after April 1, 2012 are subject to optional redemption on or after April 1, 2007, (2) $1,860,000 term certificates at rate of 5.50% are maturing through April 1, 2017 in annual principal install ments ranging from $905,000 to $955,000 and (3) $5,620,000 term certificates at rate of 5.625% are maturing April 1, 2022 in annual principal installments ranging from $1,005.000 to $1.250.000. and (4) $7,410,000 term certificates at rate of 5.75% are maturing through April 1, 2027 in annual principal install ments ranging from $1,405,000 to $1,575,000. The total debt service is
$52,265,000 to maturity.
Total other debt 45,554,000 22,802,000 Total debt 335,447,000 343,640,000 Less: current portion (17,740,000)
(13,543,000)
Less: bond discounts (9,133,000)
(12,920,000)
Total long-term debt
$308,574,000
$317,177,000 Annual debt service requirements at June 30, 1997 to maturity are as follows Revenue Bond Debt Other Debt Total Fiscal Year Principal Interest Total Principal Interest Total Debt Service 1998
$14,935,000
$14,552,000
$29,487,000
$2,805,000
$1,581,000
$4,386,000
$33,873,000 1999 15,555,000 13,882,000 29,437,000 3,048,000 1,555,000 4,603,000 34,040,000 2000 19,341,000 13,082,000 32,423,000 813,000 1,433,000 2,246,000 34,669,000 2001 20,175,000 12,160,000 32,335,000 918,000 1,383,000 2,301,000 34,636,000 2002 18,660,000 11,252,000 29,912,000 3,394,000 1,342,000 4,736,000 34,648,000 Thereafter 201,227,000 102,121,000 303,348,000 34,576,000 20,658,000 55,234,000 358,582,000
$289,893,000 $167,049,000 $456,942,000 $45,554,000 $27,952,000
$73,506,000 $530,448,000 Interest costs of $1,717,000 and $1,728,000 have been capitalized to utility plant for the fiscal years ended June 30, 1997 and 1996, respectively.
In accordance with the bond resolutions, a reserve for maximum annual debt service has been established and a reserve for renewal and replacement is being accumulated in an amount equal to a maximum of 2% of the depreciated book value of the utility plant in service.
The bond issues outstanding at lune 30, 1997 require the establishment of a Bond Service Account by accumulating monthly one-sixth of the interest which will become due and payable on the outstanding bonds within the next six months and one-twelfth of the principal amount which will mature and be payable on the outstanding bonds within the next 12 months.
Notes to Financial Statements (conunued)
Restricted cash and investments include reserved amounts, as well as undisbursed bond proceeds, as follows:
June 30, 1997 June 30, 1996 Held by Fiscal Agent:
Bond Reserve Fund
$16,725,000
$34,042,000 Bond Service Fund 513,000 140,000 Bond Construction Fund 24,262,000 3,169,000 Decommissioning Reserve 27,209,000 21,484,000 Certificates of Participation Proceeds 2,351,000 Held by City Treasurer:
Bond Service Account 17,617,000 15,025,000 Renewal and Replacement Account 24,681,000 23,590,000 Decommissioning and Fuel Reserves 20,275,000 22,632,000 Restricted Bond Proceeds 922,000 1,344,000 Restricted Rebate 201,000 130,000
$132,405,000
$123,907,000 The Electric Utility's interest and other finance charges, except for capitalized interest, for the years ended June 30, 1997 and 1996, were $19,903,000 and $21,864,000, respectively.
NOTE 8 ADVANCED REFUNDING When conditions have warranted, the Electric Utility has sold various issues of bonds to provide for the refunding of previously issued obligations.
The proceeds received from the sales of the bond issues were used to refund the outstanding bond issues or to deposit in an irrevocable escrow fund held by the Escrow Agent, an amount which, when combined with interest earnings thereon, is at least equal to the sum of the outstanding principal amount of the bonds, the interest to accrue thereon to and including the first optional redemption date thereof, and the premium required to redeem the bonds outstanding on such date. Accordingly, the trust account assets and the liability for defeased bonds are not included in the Electric Utility's financial statements. These transactions defeased the outstanding bond issues with a resultant reduction in annual debt service during the term of the issues.
Principal Amount Outstanding Principal Net Present June 30, Amount Value Issue 1997 Refunded Savings 1993 APFA Bond Refunding 1989 Certificates of Participation
$25,395,000
$25,395,000
$ 439,000 1990 Certificates of Participation 40,240,000 40,240,000 1,619,000
$65,635,000
$65,635,000
$2,058,000 On October 31, 1996, the Electric Utility issued $95,395,000 in Electric Revenue Bonds, Issue of 1996. to advance refund $107,520,000 in Electric Revenue Bonds, Issue of 1986 and $7,500,000 in Electric Revenue Bonds, Second Issue of 1986. Over the life of the 1996 bonds, the Electric Utility reduced debt service by $42,611,000 with a net present value savings of approximately $6,024,000.
NOTE 9 PENSION PLAN As a condition of participation, employees are required The City contributes to the State of California Public to contribute a percentage of their annual compensation Employees Retirement System (PERS), an agent to PERS. The City is required to contribute the remain multiple-employer public employee retirement system ing amounts necessary to fund PERS, using the actuarial that acts as a common investment and administrative basis recommended by the PERS actuaries and actuarial agent for California cities which participate in this consultants and adopted by the Board of Administration.
retirement plan.
The Electric Utility's total payroll was $15,248,000 and
INDEPENDENT AUDITORS' REPORT O
To the Honorable City Council City of Anaheim, California We have audited the accompanying balance sheets of the Electric Utility Fund of the City of Anaheim, California, as of June 30 1997 and 1996, and the related statements of income, changes in retained earnings and cash flows for the years then ended. These financial statements are the responsibility of the Electric Utility's management.
Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe our audits provide a reasonable basis for our opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Electric Utility Fund of the City of Anaheim, California, as of lune 30, 1997 and 1996, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles October 3, 1997 Orange County, California
WATER UTILITY Audited Financial Statements WATER UTILITY FUND BALANCE SHEETS (in thousands)
June 30, 1997 June 30, 1996 ASSETS Utility plant:
Land
$1,554
$1,554 Source of water supply 20,802 20,802 Pumping plant 28,741 28,546 Transmission and distribution 151,326 148,255 General plant 2,712 2,712 Gross utility plant 205,135 201,869 Less: accumulated depreciation (38,945)
(35,167)
Construction work in progress 10,530 8,267 Net utility plant 176,720 174,969 Restricted assets:
Cash and investments 16,087 16,118 Accounts receivable 208 140 Accrued interest receivable 220 200 Total restricted assets 16,515 16,458 Unrestricted current assets:
Cash and investments 8,551 5,847 Accounts receivable 10,597 9,411 Accrued interest receivable 289 178 Materials and supplies 195 237 Purchased water in storage 371 337 Total unrestricted current assets 20,003 16,010 Other assets:
Orange County receivable 517 517 MWDOC pipeline receivable 982 1,054 Unamortized bond refunding cost 1,647 1,832 Unamortized debt issuance cost 316 354 Total other assets 3,462 3,757 TOTAL ASSETS
$216,700
$211,194 (continued)
WATER UTILITY FUND BALANCE SHEETS (in thousands)
June 30, 1997 June 30, 1996 EOUITY AND LIABILITIES Equity:
Beginning contribution by the City
$19,280
$19,280 Contributions in aid of construction 78,407 77,366 Retained earnings 67,351 61,619 Total equity 165,038 158,265 Long-term liabilities:
Long-term debt obligation, less current 43,513 44,767 Capital lease obligation, less current 1,182 1,293 Total long-term liabilities 44,695 46,060 Current liabilities (payable from restricted assets):
Current portion of long-term debt 808 768 Accounts payable 101 299 Accrued interest 646 667 Customer deposits 885 787 Total restricted current liabilities 2,440 2,521 Current liabilities (payable from unrestricted current assets):
Current portion of long-term debt 517 490 Current portion of capitalized lease 111 107 Accounts payable and accrued expenses 3,670 3,627 Customer deposits 2229 124 Total unrestricted current liabilities 4,527 4,348 Commitments and contingencies:
TOTAL EOUITY AND LIABILITIES
$216,700
$211,194 See accompanying notes
Audited Financial Statements (continued)
WATER UTILITY FUND STATEMENTS OF INCOME (in thousands)
YEAR ENDED June 30, 1997 June 30, 1996 Operating revenues:
Sale of water
$36,848
$35,181 Other operating revenues 694 1,322 Total operating revenues 37,542 36,503 Operating expenses:
Cost of water 14,687 14,907 Operations 5,454 5,782 Maintenance 4,099 3,782 Depreciation 2,991 2,547 Total operating expenses 27,231 27,018 Operating income 10,311 9,485 Other income (expense):
Interest income 1,424 1,100 Interest expense (2,242)
(2,058)
Non-operating expense, net (2,280)
Total other income (expenses)
(3,098)
(958)
Net income
$7,213
$8,527 WATER UTILITY FUND STATEMENTS OF CHANGES IN RETAINED EARNINGS (in thousands)
YEAR ENDED June 30, 1997 June 30, 1996 Balance at beginning of year
$61,619
$54,380 Net income for the year 7,213 8,527 Transfer to the General Fund of the City (1,481)
(1,288)
Balance at end of year
$67,351
$61,619 See accompanying notes
WATER UTILITY FUND STATEMENTS OF CASH FLOWS (in thousands)
YEAR ENDED June 30, 1997 June 30, 1996 Cash flows from operating activities:
Operating income
$10,311
$9,485 Adjustments to reconcile operating income to net cash provided by operations:
Depreciation 2,991 2,547 Amortization of debt issuances costs, discounts and refundings 293 300 Changes in assets and liabilities:
Current accounts receivable 1,254)
(2,929)
Orange County receivable 42 MWDOC pipeline 72 69 Materials and supplies 42 (29)
Purchased water in storage (34 485 Accounts payable and accrued expenses (155)
(1,498)
Customer deposits 203 159 Total adjustments 2,158 (854)
Net cash provided by operating activities 12,469 8,631 Cash flows from non-capital financing activities:
Transfer to the City's General Fund (1,481)
(1,288) 4Non-operating expense (2,280)
Net cash used in non-capital financing activities (3,761 (1,288)
Cash flows from capital and related financing activities:
Capital expenditures (5,160)
(5,942)
Principal reduction in debts and capitalized lease (1,364)
(1,320)
Interest paid (2,263)
(2,076)
Contributions in aid of construction 1,459 581 Net cash used in capital and related financing activities (7,328)
(8,757)
Cash flows from investing activities:
Purchase of investment securities (9,098)
(14,366)
Proceeds from sale and maturity of investment securities 4,247 8,174 Interest received 1,293 1,032 Reduction in obligations under reverse repurchase agreements
-(1,375)
Net cash used in investing activities (3,558)
(6,535)
Decrease in cash and cash equivalents (2,178)
(7,949)
Cash and cash equivalents at beginning of year 7,272 15,221 Cash and cash equivalents at end of year
$5,094
$7,272 Cash and cash equivalents at end of year
$5,094
$7,272 Investments 19,544 14,693 Total cash and investments
$24,638
$21,965 Schedule of noncash financing and investing activities:
Contributions in aid of construction
$1,059
$1,859 See accompanying notes.
WATER UTILITY Notes to Financial Statements NOTE 1
SUMMARY
OF SIGNIFICANT Pooled Cash and Investments ACCOUNTING POLICIES The City pools available cash from all funds for the Basis of Accounting purpose of enhancing interest income through invest The Water Utility Fund (the Water Utility) of the City ment activities. Investments are carried at cost or of Anaheim (the City) was established lune 30, 1971, amortized cost, except for deferred compensation at which time the portion of the City's General Fund investments which are carried at fair value. The fair equity relating to water system operations was trans-values of investments are estimated based on quoted ferred to Water Utility equity. The financial statements market prices for those or similar investments.
of the Water Utility are presented on the accrual basis Additional information pertinent to the value of these in conformity with generally accepted accounting investments is provided in Note 2 No loss is recorded principles and accounting principles and methods when fair values decline below cost, as such declines prescribed by the California Public Utilities are considered temporary. The City intends to either Commission (CPUC). The Water Utility is not subject hold the investments until maturity or until fair values to the regulations of the CPUC. Under Governmental equal or exceed cost. interest income on investments Accounting Standards Board Statement No. 20, is allocated to all funds on the basis of average daily the Water Utility has elected not to apply Financial cash and investments balances.
Accounting Standards Board pronouncements For purposes of the statement of cash flows, the Water issued after November 30, 1989.
Utility considers cash equivalents to be highly liquid Utility Plant and Depreciation short-term investments that are readily convertible to The cost of additions to utility plant and replacement known amounts of cash and mature within three of retired units is capitalized. Utility plant is recorded months of the date they are acquired. Cash and cash at cost, including capitalized interest, or in the case equivalents are included in the Citys cash and invest of contributed plant, at fair market value at the date ments pool and in accounts held by fiscal agents.
of the contribution, except those assets acquired prior Revenue Recognition to July 1, 1977, are recorded at historical cost. Cost To provide a better matching of costs and revenues, includes labor, materials, allocated indirect charges the Water Utility accrues estimated unbilled revenues such as engineering, supervision, construction and for water sold but not billed at the end of a fiscal transportation equipment, retirement plan contribu-period. Residential and smaller commercial accounts tions and other fringe benefits, and certain adminis-are hilled bimonthly, and all others are billed monthly.
trative and general expenses. The cost of minor replacements is included in maintenance expense.
The Water Utilitys Rates, Rules and Regulations The net book value of assets retired or disposed of, include a water commodity adjustment formula by net of proceeds, is recorded in accumulated which billings to customers are subject to adjustment, depreciation.
up or down, to reflect variations in the cost of water production and water quality measures to the Depreciation of utility plant is provided by the Water Utility.
straight-line method based on the following estimated service lives of the properties:
Unbilled water service charges are included in accounts receivable at year-end. Unbilled accounts Transmission/distribution plant 20 to 75 years receivable totaled $2,550,000 and $3,584,000 at Other plant and equipment 5 to 50 years June 30, 1997 and 1996. respectively.
Depreciation on contributed assets is charged directly to contributions in aid of construction. During fiscal years 1997 and 1996, $1,477,000 and $1,458,000, respectively, was charged to contributions in aid of construction.
Debt Issuance Costs NOTE 2 CASH AND INVESTMENTS Debt issuance costs are deferred and amortized over The City maintains a cash and investment pool, which the lives of the related bond issues on a basis which includes the cash balance of all funds, and is invested approximates the effective interest method.
by the City Treasurer to enhance interest earnings. The Bond Refunding Costs pooled interest earned, net of administrative fees, is Bond refunding costs are deferred and amortized over reallocated to each fund based on average daily cash the lives of the related bond issues on a basis which balances.
approximates the effective interest method.
Statutes (Govt. Codes 53600 et al, 16429 1 and 53684),
Vacation and Sick Pay as further limited by the City's Investment Policy, Vacation and sick pay for all City employees are paid authorize the City to invest in obligations of the U.S.
by the General Benefits and Insurance Fund of the Government, Federal Agencies, Medium Term Notes, City The General Benefits and Insurance Fund is Certificates of Deposit. Bankers Acceptances reimbursed through payroll charges to the Water Commercial Paper rated A-I by Standard & Poors Utility based on estimates of benefits to be earned Corporation or P-I by Moody's Commercial Paper during the year. Vested vacation and sick pay benefits Record, Local Agency Investment Fund (State Pool),
are accrued in the General Benefits and Insurance County Pools, Repurchase Agreements, Reverse Fund and amounted to $418,000 and $341,000 for the Repurchase Agreements, Mutual Funds and Water Utility at lune 30, 1997 and 1996, respectively Collateralized Negotiable Instruments Transfers to the General Fund of the City Classification of Credit Risk Article XII of the City Charter provides that transfers Cash and investments are categorized to provide a to the General Fund of the City shall not exceed description of the level of risk assumed by the Water 4 percent of the gross revenue of the prior year Such Utility. Category I investments are insured or regis transfers are not in lieu of taxes and are recorded as tered, or securities are held by the Water Utility or its distributions of retained earnings agent in the Water Utility'a name. Category 2 invest ments are uninsured and unregistered, with securities Reclassifications held by the counterparty's trust department or agent Certain prior year amounts have been reclassified to in the Water Utility's name. Category 3 investments conform with current year presentation.
are uninsured and unregistered, with securities held Use of Estimates by the counterparty, or by its trust department or The preparation of financial statements in conformity agency, but not in the Water Utility's name.
with generally accepted accounting principles requires The Water Utility's investments pooled with the City management to make estimates and assumptions that Treasurer or held in guaranteed investment contracts affect the amounts reported in the financial statements are not subject to categorization because they are not and accompanying notes. Actual results could differ evidenced by securities that exist in physical or book from those estimates.
entry form.
New Accounting Pronouncements The Water Utility maintains cash and investments with In March 1997, the GASB issued Statement No. 31, the following carrying amounts "Accounting and Financial Reporting for Certain Investments and for External Investment Pools." For Cash and Investments pooled governmental entities, such as the Water Utility, GASB with City Treasurer
$20,238,000 31 establishes fair market value standards for invest-Investments held with Trustee 4,400,000 ments in (a) participating interest-earning investment
$24,638,000 contracts, (b) external investment pools, (c) open-end fund, II dbt ecurtie, ad 11 eqitysecrites.
Cash and investments are recorded on the Water funds, (d) debt securities, and (e) equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values.
Restricted assets - Cash and Investments
$16,087,000 The Water Utility is required to adopt this new standard Current assets - Cash and Investments 8,551,000 in connection with the organization's 1998 financial
$24,638,000 statements, and in management's opinion this adoption will not have a material effect on the Water Utility's financial condition.
Notes to Financial Statements (conunued)
At june 30,1997, cash and investments were categorized as follows:
Category Carrying Market 1
2 3
Uncategorized Amount Value Investments held with Trustee Repurchase agreements
$2,463,000
$ 2,463,000
$ 2,463,000 Guaranteed investment contracts 1,937,000 1,937,000 1,937,000 Cash and investment pooled with City Treasurer 20,238,000 20,238,000 20,208,000
$2,463,000
$22,175,000
$24,638,000
$24,608,000 Investments with Trustee Fiscal agents on behalf of the City hold and invest funds from long-term debt issuances. Fiscal agents are mandated by bond indenture as to the types of investments in which proceeds can be invested. Amounts invested by fiscal agents include investments that are insured or registered or for which the securities are held by the City's agents in the City's name.
NOTE 3 OPERATING EXPENSES Operating expenses shared with the Electric Utility amounted to $11,970,000 and $12,603,000 for the fiscal years ended lune 30, 1997 and 1996, respectively, of which $2,394,000 and $2,521,000, respectively, were allocated to the Water Utility.
The shared expenses are allocated to each Utility based on estimates of the benefits each Utility derives from those common expenses.
NOTE 4 LONG-TERM DEBT Long-term debt consists of the following:
June 30, 1997 June 30, 1996 Water Revenue Bonds, 1986 Series, TIC 7.048%, dated March 1, 1986, sold
$4,670,000
$4,995,000 March 31, 1986 in the amount of $7,160,000, of which $1,170,000 maturing April 1, 1999 through 2001 were advance refunded on June I, 1993. The remaining bonds ( I) mature April 1, 1998 in a principal installment of
$345,000 at a rate of 6.7%, and (2) $4,325,000 term bonds at a rate of 7.0%
maturing April 1, 2009, subject to mandatory redemption from April 1,2002 to April 1,2009 in annual principal installments ranging from $445,000 to
$650,000. Total remaining debt service is $6,879,000 to maturity.
Water Revenue Bonds, 1988 Series, TIC 7.3765%, dated January 1, 1988, sold 300,000 435,000 January 12, 1988 in the amount of $5,000,000, of which $3,830,000 maturing October 1, 1999 through 2012 were advance refunded on June 1, 1993. The remaining bonds mature to October 1, 1998 in annual principal installments of $145,000 and $155,000 at rates of 6.6% and 6.75%. Total remaining debt service is $320,000 to maturity.
Water Revenue Bonds, 1990 Series, TIC 7.0227%, dated July 1, 1990, sold 1,150,000 1,340,000 August 14, 1990 in the amount of $9,000,000, of which $7,010.000 maturing October 1, 2002 through 2016 were advance refunded on lune 1, 1993. The remaining bonds mature serially to October 1, 2001 in annual principal installments of $200,000 to $260,000 at rates ranging from 6.35% to 6.7%.
Total remaining debt service is $1,350,000 to maturity.
Water Revenue Bonds, 1992 Series, TIC 5.9088%, dated March 15, 1992, sold 4,320,000 4,685,000 April 9, 1992 in the amount of $5,740,000 maturing serially to July 1, 2005.
The annual principal installments range from $380,000 to $600,000 at rates ranging from 5.1% to 6.1%. Total remaining debt service is $5,567000 to maturity.
Long-term debt consists of the following:
June 30, 1997 June 30, 1996 Water Revenue Bonds, 1993 Series. TIC 5.4734%, dated lune 1, 1993, sold 13,040,000 13,145,000 June 23, 1993 in the amount of $13,545,000 maturing serially to October 1, 2016. The annual principal installments range from $110,000 to $970,000 at rates ranging from 4. 1% to 5.5%. Total remaining debt service is $20,728,000 to maturity.
Anaheim Public Financing Authority Revenue Bonds, Issue of 1994, TIC 5.231%,
20,000,000 20,000,000 dated lanuary 1,1994, sold February 16, 1994, in the amount of $20,000,000, of which (1) $8,315,000 at rates ranging from 4.85% to 5.20%, mature serially through October 1, 2012, subject to optional redemption on or after April 1, 2004, in annual principal installments ranging from $640,000 to $1,700,000, and (21 $11,685,000 term bonds at a rate of 5 25% mature through October 1, 2019, subject to mandatory redemption from October 1, 2013 to October 1, 2019 in annual principal installments ranging from $620,000 to $2,625,000.
Total remaining debt service is $37,052,000 to maturity.
Total revenue bond debt 43,480,000 44,600,000 Note payable to Internal Service Fund of the City, 8.95%, issued October 13, 169,000 188,000 1984 in the amount of $335,000, semi-annual principal and interest payments ranging from $27,000 to $29,000 through October 31, 2003. Total remaining debt service of $219,000 to maturity.
Advances from the Orange County Water District, 3.5%, a partial installment 1,861,000 1,981,000 under terms of a $750.000 per Well Construction Program Agreement, dated April 18, 1990, for the construction of Wells 46, 47 and 49, semi-annual principal and interest installment payments of $94,000 through July 31, 2010.
Total remaining debt service of $2,311,000 to maturity Total other debt 2,030,000 2,169,000 Total debt 45,510,000 46,769,000 Less: current portion (1,325,000)
(1,258,000)
Less: unamortized bond discounts (672,000)
(744,000)
Total long-term debt
$43,513,000
$44,767,000
Notes to Financial Statements (continued)
Annual debt service requirements at lune 30, 1997 to maturity are as follows:
Revenue Bond Debt Other Debt Long-Term Fiscal Year Principal Interest Total Principal Interest Total Term Debt 1998
$1,180,000
$2,313,000
$3,493,000
$145,000
$77,000
$222,000
$3,715,000 1999 1,260,000 2,234,000 3,494,000 151,000 71,000 222,000 3,716,000 2000 1,330,000 2,166,000 3,496,000 159,000 65,000 224,000 3,720,000 2001 1,400,000 2,094,000 3,494,000 165,000 58,000 223,000 3,717,000 2002 1,465,000 2,027,000 3,492,000 173,000 51,000 224,000 3,716,000 Thereafter 36,845,000 17,582,000 54,427,000 1,237,000 178,000 1,415,000 55,842,000
$43,480,000
$28,416,000 $71,896,000
$2,030,000
$500,000
$2,530,000 $74,426,000 Interest costs of $537,000 and $801,000 have been capitalized to utility plant for fiscal years ended June 30, 1997 and 1996, respectively.
In accordance with the bond resolutions, a reserve for maximum annual debt service has been established and a reserve for renewal and replacement is being accumulated in an amount equal to a maximum of 1% of the depreciated book value of the utility plant in service.
The bond issues outstanding at lune 30, 1997 require the establishment of a Bond Service Account accumulating monthly one-sixth of the interest which will become due and payable on the outstanding bonds within the next six months and by one-twelfth of the principal amount which will mature and be payable on the outstanding bonds within the 12 months.
Restricted cash and investments includes reserved amounts, as well as undisbursed bond proceeds, as follows:
June 30, 1997 June 30, 1996 Held by Fiscal Agent:
Bond Reserve Fund
$4,400,000
$4,400,000 Bond Construction Fund 560,000 Held by City Treasurer:
Bond Service Account 1,454,000 1,433,000 Renewal and Replacement Account 1,662,000 1,667,000 Restricted Bond Proceeds 8,571,000 8,058,000
$16,087,000
$16,118,000 The Water Utility's interest and other finance charges, except for capitalized interest, for the years ended lune 30, 1997 and 1996 were $2,242,000 and $2,058,000, respectively.
NOTE 5 ADVANCED REFUNDING When conditions have warranted, the Water Utility has sold various issues of bonds to provide for the refunding of previously issued obligations.
The proceeds received from the sales of the bond issues were used to refund the outstanding bond issues or to deposit in an irrevocable escrow fund held by the Escrow Agent, an amount which, when combined with interest earnings thereon, is at least equal to the sum of the outstanding principal amount of the bonds, the interest to accrue thereon to and including the first optional redemption date thereof, and the premium required to redeem the bonds outstanding on such date. Accordingly, the trust account assets and the liability for defeased bonds are not included in the Water Utility's financial statements. These transactions defeased the outstanding bond issues with a resultant reduction in annual debt service during the term of the issues.
Principal Amount Outstanding Principal Net Present June 30, Amount Value Issue 1997 Refunded Savings 1993 Water Revenue Bond Refunding 1990 Water Revenue Bond
$7,010,000
$7,010,000
$472,000 NOTE 6 CAPITALIZED LEASE OBLIGATION The City sold its share of the Allen McColloch The City has a long-term noncancelable lease with the pipeline to the Metropolitan Water District of Southern Municipal Water District of Orange County to finance California. The transaction was completed in April the acquisition of a 3.002 percent share in the capacity 1995. The balance of this transaction is shown as notes of the Allen-McColloch Pipeline. Future minimum receivable on the balance sheets. Because the capitaized lease payments under this lease are as follows lease obligation is noncancelable, the City is obligated Years ending June 30, for the future payments.
1998
$176,000 1999 178,000 2000 179,000 2001 181,000 2002 182,000 Thereafter 747,000 1,643,000 Less interest (350,000)
Future minimum lease payments
$1,293,000 Current portion
$ 111,000 Long-term portion 1,182,000
$1,293,000
Notes to Financial Statements (continued)
NOTE 7 PENSION PLAN It is the opinion of the Citys legal counsel that the The City contributes to the State of California Public City has no liability for losses under the plan hut does Employees' Retirement System (PERS), an agent have the duty of due care that would be required of an multiple-employer public employee retirement system ordinary prudent investor. The City believes it is that acts as a common investment and administrative unlikely that it will use the assets to satisfy the claims agent for California cities which participate in this of general creditors in the future.
retirement plan.
Recent legislation requires that a trust be established As a condition of participation, employees are by January 1, 1999 for the exclusive benefit of eligible required to contribute a percentage of their annual employees and their beneficiaries.
compensation to PERS. The City is required to NOTE 9 SELF-INSURANCE PROGRAM contribute the remaining amounts necessary to fund The Water Utility is part of the City's self-insured PERS, using the actuarial basis recommended by workers' compensation and general liability program.
the PERS actuaries and actuarial consultants and The liability for such claims, including claims incurred adopted by the Board of Administration.
but not reported, is transferred to the City in consider The Water Utility's total payroll was $5,648,000 and ation of self-insurance premiums paid by the Water
$4,808,000 and the payroll attributable to Water Utility Utility. Effective July 1,1986, the City became self employees covered by PERS was $4,688,000 and insured. Costs relating to the litigation of claims are
$3,941,000 for the years ended June 30, 1997 and 1996, charged to expense as incurred.
respectively.
NOTE 10 COMMITMENTS AND Information is not available separately for the Water CONTINGENCIES Utility as to the cost of benefits funded, the actuarially Litigation computed present value of vested and non-vested A number of claims and suits are pending against the accumulated plan benefits, the related assumed rates City for alleged damages to persons and property of return used, and the actuarially computed value of and for other alleged liabilities arising out of matters vested benefits over the related pension fund assets.
usually incidental to the operation of a utility such as Refer to the City of Anaheim's Comprehensive Annual the water system of the City.
Financial Report for further information.
In the opinion of management, the exposure under NOTE 8 DEFERRED COMPENSATION these claims and suits would not materially affect the The City offers its employees a deferred compensation financial position of the Water Utility as of June 30 plan created in accordance with the Internal Revenue 1997.
Code, Section 457. The plan, available to all City Anaheim Hills Area Land Movement employees, permits deferral of a portion of an The City has been named as a defendant in severa employee's salary until future years. The deferred lawsuits in connection with land movement which compensation is not available to employees until occurred in the Anaheim Hills area in 1993. Durng termination, retirement, death or an unforeseeable 1997, the Water Utility reimbursed the City's General emergency.
Fund for a portion of the litigation costs incurred by All amounts of compensation deferred under the plan, the City. In August 1997, the Water Utility received all property and rights purchased with those amounts, reimbursement from the City's insurance carriers or and all income attributable to those amounts, property risk pooling entities for a portion of the payments or rights are (until paid or made available to the made to the City, The net payments have been classi employee or other beneficiary) solely the property fled as nonoperating expenses. The Water Utility's and rights of the City, subject to the claims of the ultimate exposure to loss and additional litigation City's general creditors. Participants' rights under the costs, if any, is not determinable and has not been plan are equal to those of general creditors of the accrued in the accompanying financial statements City in an amount equal to the fair market value of Capital Expenditures the deferred account for each participant The Water Utility's budget for fiscal 1997-98 p ov des for capital expenditures of approximately $9 235000 of which $5,244,000 is expected to be funded by bond proceeds and contributions in aid of construction bylnay1 19 o h xcuiebnfi0feiil
1NH I
EI l f U;iAf O
A T
E Ii 45
INDEPENDENT AUDITORS' REPORT To the Honorable City Council City of Anaheim, California We have audited the accompanying balance sheets of the Water Utility Fund of the City of Anaheim, California, as of June 30 1997 and 1996, and the related statements of income, changes in retained earnings and cash flows for the years then ended. These financial statements are the responsibility of the Water Utility's management.
Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Water Utility Fund of the City of Anaheim, California, as of June 30, 1997 and 1996, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
4,4,4
- ?eT LL P October 3, 1997 Orange County, California
City of Anaheim PUBLIC UTILITIEs DEPARTMENT 201 South Anaheim Boulevard Anaheim, California 92805 714
- 765
- 5137
Design:
Arnold Ontes Design Photogrophy:
Joe B