ML13309A447
| ML13309A447 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 12/31/1998 |
| From: | Aghjayan E ANAHEIM, CA |
| To: | |
| Shared Package | |
| ML13309A443 | List: |
| References | |
| NUDOCS 9905110027 | |
| Download: ML13309A447 (47) | |
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ANAHEIM PUBLIC UTILITIES WA'ive stkgws leja ema ts, a chaga we tom aNse W o a1meVd1a at.
Anticipating tomorrow's challenges has marketplace. Phase I analyzed more than become a daily part of today's business.
19 options and found Anaheim favorably We recognize that in order to remain poised for competition with low rates, active competitive, we must stay in touch with internal cost-saving measures, cutting-edge our customers' values and needs, industry technology applications and long-term changes, community issues and planning. Phase 11 is evaluating potential technological advancements.
competitive alliances or agreements for Wheter e ae peparng or lecricservices in three business areas: 1) power Whether we are preparing for electric indutryrestuctrin, deeloingsupply asset optimization, 2) technology industry restructuring, developinganbeodt-mersvisad future water resources, or address ing the Y2K issue; providing
- 3) distribution system operation reliable, quality service, while maintaining a Water Master Plan financially sound and In 1998, we began competitive operation developing a master is critical. That is why we plan to meet water needs place such great emphasis on over the coming decade.
proactive, long-term strategic Forecasts indicate that Anaheim planning.
will experience up to 33 percent Just a few efforts we have underway aroxte 1 t Its ain.
today to benefit future Anaheim generations include:
We are evaluating supply alternatives, as well as distribution and treatment facilities Strategic Options Analysis -
In 1997, we and technologies in order to assure quality initiated a three-year analysis of how to best water will be available when and where it is prepare for competition in the new electric needed to meet consumer demands at an optimal cost. Additionally, Anaheim is at
the forefront of countywide planning and Year 2000 -
Our Y2K review process began efficiency program development efforts in July 1996. We are part of a Citywide Y2K with wholesale and retail water agencies, task force working to assure examination the Orange County Water District and of all our systems for compliance. We have the County Sanitation Districts of Orange inventoried our hardware and software County. Working together, they are seeking systems and have replaced, upgraded or are to develop a cost-effective mix of supply, taking remedial action to achieve compliance.
efficiency and reclamation solutions to We also have retained a consultant to identify benefit consumers.
bedded chips in our equipment and Cutting-edge technology -
Time facilities. As we continue working internally and with the agencies and again, technology proves to be a fundamental ingredient a
mpan tha haeran of cost-effective business operations, quality we believe that Y2K will not pose signifi service and success.
That's why we dedicate resources to evaluating local systems. However, we do applications for up-and-coming techologes.An eampe isourfailures in spite of our best efforts technologies. An example is our application of fiber-optic technology and are developing contingency plans for internal communications and system monitoring as well as a unique public-private impact of Y2K problems on agreement that is making this 21 st century technology available across the community.
Anaheim Public Utilities has built a reputation for anticipating tomorrow's challenges and proactively planning for the future in order to ensure that future t
generations continue to receive the advantages that our customers enjoy today.
mplementinf strategfic solutions to kee rates low whil maintaininf I
e c
ANAHEIM PUBLIC UTILITIES Anahah h~jiwjwI qiAM onbmas to da 1
melobp amw wYas atdaahdns N
ew technologies, changing state*
Overall, our lower rates translate into and federal regulations and approximately $20 million in annual savings increasing consumer expectations for Anaheim Public Utilities' customers; challenge Anaheim Public Utilities to Water advantages:
look at new ways of doing business in lookat ew aysof dingbusnes in*
There have been no increases in overall century-old industries.
centry-od inustres.water base rates since 1 993; For Anaheim, it means implementing
- Reliable delivery of high quality water at creative solutions to keep costs and rates as low as possible, while still maintaining single family residential water bills are lower the highest quality standards for service by:
than two-thirds of Orange County cities;
- Reducing stranded costs through debt restructuring; production and distribution system, Anaheim
- Reducing the work force by 15 percent is one of only a few cities in the United since 1991; States with a Class 1 rating from the Insurance Services Office. The Class 1
+ Renegotiating long-term contracts Reneotitin log-tem cntrctsrating of Anaheim's water system and Fire associated with power generation, including Department is based on a long list of ending a 20-year Integrated Operations Agreement with Southern California Edison.
criteriaincludiniwaterpfielflow,.reventio As a result of our efforts, Anaheim Public is the highest rating and it translates into Utilities offers its customers some of the lower insurance costs for Anaheim business region's lowest and most affordable electric
- as much as 20 percent lower.
and water rates:
Also, Anaheim businesses and residents Electric advantages:
do not pay a utility-user tax, representing
- Anaheim residents continue to enjoy the added savings of up to 10 percent lowest electric rates in Orange County - on compared to other Southern California average, 1O5 percent lower; communities.
- Anaheim Commercial/Industrial rates are Never satisfied with the status quo, were generally lower than charges for comparable continuing to look for innovative ways to service in surrounding communities; control and reduce costs and, in turn, pass even more savings on to our residential and business customers.
I re committed to the quality of sBrvWcB requaram by our most 01531 discriminatingf customers...
.~~~
OwA<A A>AA.
ANAHEIM PUBLIC UTILITIES ank HIM.
unIVImes a n
eecriA-sentee1 thbat is seon o ma naheim's roster of businessesElectric. Increasingly sophisticated manufac includes internationally renowned turing technologies used by Anaheim busi aerospace, electronics, and communi-nesses make power quality and reliability a cations manufacturers; research and develop-priority. A new Supervisory Control and Data ment firms at the cutting edge of technology; Acquisition (SCADA) system is supporting entertainment venues with an international our proactive program to enhance station draw and national brand food processors.
and distribution line voltage regulation. And In meeting their standards of excellence in we are stepping up inspection and mainte service, Anaheim Public Utilities is evolving nance programs to enhance the quality of the a tradition for not only providing reliable, but power we deliver. But, we do not stop there.
also high quality water and electric service.
Utility engineers work closely with businesses Wate. Ahig qulit waer uppy i an-even inside customers' facilities - to identify Water. A high quality water supply is an Anaheim hallmark. Making sure it stays that quality concerns and take appropriate wayAnahim' ownwatr qulit exprtscorrective action to meet customers' needs.
way, Anaheim's own water quality experts perform more than 50,000 tests annually Incorporating new technologies is critical to for more than 100 potential substances improving quality and reliability. Our new regulated by the California Department of SCADA system uses the latest technology to Health Services and U.S. Environmental give operators a fast graphic picture of Protection Agency. Anaheim's water test system status and greater direct control results are consistently better than the drink-over distribution equipment. Operating on ing water standards set by those agencies.
our fiber-optic network, this system supports Weour move to distribution automation and will ozone treatment, to improve water quality wellsystem
- allowing us to rapidly identify the while improving taste. Also, we are replacing lemtin acelrtinguservicenrestation.
old, shallow wells with high production wells that draw water from deep, higher With our ongoing attention to detail and the quality aquifers.
latest technologies, Anaheim Public Utilities is building a tradition of quality, reliable water and electric service that is second to none.
ANAHEIM PUBLIC UTILITIES Rea 1f88 Sunner.-yj a Revenans andl Edpendvue he financial condition of the Water water from the Metropolitan Water District Utility remains healthy. Water sales of Southern California. The Water Utility and revenues were down in the fiscal continues to enhance its ability to pump year ended June 30, 1998 compared to the relatively lower cost water by drilling new prior all time record year. The decrease was wells and improving the efficiency of existing due primarily to significantly higher than pumping facilities. The Water Utility's secure normal rainfall. The Water Utility continues financial position is demonstrated by debt to produce about 75% of its annual water service coverage of 6.3 times - well in excess requirements from relatively low-cost local of bond covenants - and an AA credit rating wells, supplemented by purchases of from Standard & Poor's.
Fiscal 1998 Water Dollar Source of Revenue Distribution of Revenue N Residential Sales 59%
U Water Supply 37%
Commercial & Industrial Sales 30%
Operation & Maintenance 19%
0 Other Sales 5%
U Debt Service 9%
Other Revenue and Income 6%
9 Transfer to General Fund 4%
- Capital Expenditures 31%
T he financial condition of the Electric from reliable, diverse and efficient generating Utility remains solid as the electric and transmission resources and the Electric industry heads toward competition.
Utility's ability to make economical power Anaheim Public Utilities' financial policies purchases in the open market. The Electric are targeted at controlling expenditures, Utility's strong financial position is exhibited reducing and restructuring debt as well as by 2.9 times debt service coverage; well in maintaining competitive electric rates to excess of the ratio required by bond meet the challenges of electric industry covenants. In addition, the Electric Utility restructuring. The Electric Utility and its maintains an A+ with a "stable" outlook customers continued to benefit in fiscal 1998 credit rating from Standard & Poor's.
Fiscal n99d Electric Dollar Source of Revenue Distribution of Revenue p
Residential Sales 21u%
r Purchased Power & Fuel 52%
Commercial Sales 25%
Operation & Maintenance 20%
b Industrial Sales 41%
E Debt Service 13%
Other Sales 8%
Transfer to General Fund 4%
Other Revenue and Income 5%
Capital txpenditures 11 %
or more than a century, Anaheim Public
+ Consumers have a say in Orange County's Utilities has served the community with only customer-owned water and electric utility; low rates and reliable service.
- Consumers have a host of Advantage Today, Anaheim:
Services to choose from to help lower
- Residents continue to enjoy the lowest water and electric utility costs and operate electric rates in Orange County; businesses for success.
- Residents and businesses continue to You see, as part of the Anaheim community, enjoy some of the lowest electric and water we operate with Anaheim's best interests in rates in Southern California; mind. We like to call it the Anaheim Advantage.
- Consumers are served by one of Southern California's best-rated electric utilities; Anaheim City Council City Management Mayor, Tom Daly City Manager, James Ruth Mayor Pro Tem, Shirley McCracken Assistant City Manager, David Morgan Council Member, Frank Feldhaus Assistant City Manager, Thomas Wood Council Member, Lucille Kring Finance Director, Bill Sweeney Council Member, Thomas Tait City Attorney, Jack White City Clerk, Lee Sohl City Treasurer, Charlene Jung Anaheim Public Utilities Board Anaheim Public Utilities Management Chairman, Dale Stanton General Manager, Edward Aghjayan Vice Chairman, Ward L. Wiseman, M.D.
Assistant General Manager Board Member, Stephen Faessel Water Services Robert Carr Board Member, Thomas Kirker Assistant General Manager BoardElectrical Services, Dale Tarkington Board Member, Delia Le Assistant General Manager Finance and Administration, Michael Bell Board Member, Joe White AsitatGeealMnae,
ANAHEIM PUBLIC UTILITIES Operating Analysis, Statistics and Financial Statements Fiscal Year Ended June 30, 1998 A
N N
U A
L R
E P
0 RT
ANAHEIM PUBLIC UTILITIES Anahalm Public Utilites Management Discussion and Analysis of Operations, Statlatics amd Financial Cenliton The financial condition of the Water Utility at the close of the fiscal year ended June 30, 1998, continues to be solid, completing the third year of a five-year rate-restructuring plan and another year without an overall increase in water base rates. The Water Utilty producets abotut 75% of its annumalwrrequiremrents forn relatively lew-costlolcal wells supplemented with purchases of imported water from the Metropolitan Water District of Southern California. The Water Utility's healthy financial position is demonstrated by debt service coverage of 6.3 times - well in excess of bond covenants - and an AA credit rating from Standard & Poor's.
Revenues from the sale of water totaling $35.2 million during fiscal 1998 were down
$1.6 million (4.4%) from the prior year, caused by a decline in consumer water use due primarily to El Nino and the resulting heavier than normal rainfall through the year. The decline in revenues, the first in 10 years, reflects a drop in water sold of approximately 2.0 billion gallons compared to the all time high water sales of 23.5 biltion gallons recorded in fiscal 1997. The Water Utility completed the third year of its five-year rate restructuring plan and has not increased overall water base rates since 1993.
Expenditures for water decreased as well during fiscal 1998, down by $1.4 million (5.3%),
tracking lower production from wells and purchases, which were down by 1.9 billion gallons due to the lower consumer demand. In addition, in fiscal 1998 the Water Utility recovered $659,000- in additional insurance reimbursements to partially offset the
$2.3 million net expenditure recorded in fiscal 1997 for litigation associated with the Anaheim Hills Area Land Movement.
The financial condition of the Electric Utility remains secure as the electric industry heads toward competition. Financial policies targeted at controlling expenditures, reducing and restructuring debt, as well as maintaining competitive electric rates, continue to assist Anaheim Public Utilities meet the challenges of electric industry restructuring. The Electric Utility and its customers continued to benefit in fiscal 1998 from reliable, diverse and efficient generating and transmission resources and a strong financial position; exhibited by 2.9 times debt servite coverage; well in excess of the coverage ratio required by bond covenants. In addition, the Electric Utility maintains an A + with a "stable" outlook credit rating from Standard & Poor's.
ANAHEIM PUBLI U-TIL.ITIE-S Revenues from the sale of electricity totaling $225.9 million were recorded in fiscal year 1998, down $2.4 million (1.do/o) from fiscal 1997 record-'electricity sales revenues. Sales of electricity of 2.7 million megawatt-hours were 11 7,568, megafatt-hours (4.2%) below the prior year due generally to relatively cooler weather patterns. However, sales to Commercial and Industrial customers, which make up 68% of the total megawatt-hours sold, continued to grow; increasing by 1.5% during fiscal 1998. The Electric Utility's customer base grew by 91 customers, mostly due to residential-expansion in the eastern hill and canyon area.
Expenditures for electricity decreased $4.2 million (2.0/6) during fiscal 1 998. This decrease was primarily related to lower purchased power costs; down. by $4.8 million.
Additionally, San Onofre Nuclear Generating Station.(SONGS) was the primary reason for'a shift in costs between operations and maintenance expense compared to fiscal 1 997. Maintenance expenses decreased $3.3 million in fiscal 1998 compared to' fiscal 1997, due largely to a biennial maintenance program that resulted in 'SONGS Units'2 and 3 both being off-line during fiscal 1997. The plant was operational during virtually all of fiscal.1998; accounting for a significant portion of the $3.1-millWon increase in fuel and operations expenses in fiscal 1 998'compared. to the prior year.. The' Electric Utility continues to make progress in reducing future-year expenditures. To that end, Anaheim and participants in the Intermountain 'Power Project are working to reduce overall project debt by $2 billion prior to December 2001. Anaheim's share of that debt-reduction would be in excess of $264 million.
Anaheim Public Utilities pays all costs of operatior' and debt service and a portion of all capital improvements-from-current revenues. Other sources include proceeds from bond sales and contributions by developers and others in aid of construction. Operating costs also include payments to the City of Anaheim for services rendered by various municipal departments., Anaheim Public Utilities makes annual transfers from retained earnings of the Electric and Water utilities-to the General Fund of the City based on each respective utility's prior-year's gross earnings. During fiscal 1998, Anaheim Public Utilities transferred $ 11.1 million in support of municipal government, the maxiilnum allowable under-the Citiyof Anaheim's' Charter.
ANAHEIM PUEBLIC U'TILITIES Water Utility Statistics WATER OPERATING STATISTICS Year Ended June 30, 1998 1997 1996 195 1994.
WATER SUPPLY Production (millions of gallons)
From Metropolitan Water District 5,723.7 5,885.9 5,821.6 7,057.9 8,131.5 Percent of total production 25%
24%
25%
32%
37%
From water system wells 17,131.6 18,884.3 17,254.6
-15,003.0 14,050.5 Percent of total production 75%
76%
75% -
68%
63%
Total Supply Production 22,855.3 24,770.2 23,076.2 22,060.9 22,182.0 Capacity (gallons per minute)
From Metropolitan Water District 76,435
- 76,435 76,435 76,435 58,435 From water system wells, average 52,950 51,943 52,950 54,636' 50,059 Treatment plant capacity 10,417 10,417 10,417 10,417 10,417 Total Supply Capacity 139,802
, 138,795.
139,802 141,488 118,911 Peak day distribution (millions of gallons) 100.6 107.3 90.7 90.3 98.3 Average daily distributior (millions of gallons) 62.5 67.5 64.6 59.9 60.9 WATER USE Average Number of Meters Residential 51,529 51,119 50,665 50,196 49,805 Commercial/Industrial/Municipal 6,309 6,211
.6,130 6,108 6,065 Other 1,634 1,653 1,644 1,610 1,538 Total meters -all classes 59,472 58,983 58,439 57,914 57,408 Millions of Gallons Sold Residential 12,884 13,795 12,934 12,574
.12,302 Commercial/Industrial/Municipal 8,138 9,144 8,608 7,989 8,108 Other 521 567 357 534 373 Total sales - all classes 21,543 23,506 21,899 21,097 20,783 Anaheim population served
.301,176 295,452 293,24' 291,536 290,712 Population served outside city.(estimated) 5,100 5,100 5,100
.5,100 5,100 Total population served 306,276 300,552 298,345 296,636 295,812 Average daily sales per capita (gallons)
- 193 14 201 195 192 GRowrH OF SYSTEM Active wells 24 28 29 31 29 Reservoirs-13 13 13 13 13 Water storage capacity (millions of gallons)
Treated 85 85 85 84 84 Untreated 920 920 920 920.
920 Water mains (miles) 771 Z65 764 759 747 Fire hydrants 7,611 7,496 7,496 7,377 7,340
ANAHE1-M PUBLIC UT.ILI.TIES WATER SALES -COMPARISONS Commercial/
Industrial/,
All Residential Municipal
-Other Classes REVENUE FROM THE SALE OF WATER (IN THOUSANDS)
Year ended June 30 1998 22,013 11,213 2,046 35;272 1997 23,750 12,469 1,663 37,882, Increase.(decrease)
(1,737)
(1,256) 383 (2,610)
Percent increase (decrease)
(7.3%)
(10.1%)
23.1%
(6.9%)
UNITS OF WATER SOLD' (HUNDRED CUBIC FEET)
Year ended June 30 J998 17,224,293 10,879,232 697,488
'28,801,013 1997 18,443,116 12,224,252' 758,581.
31,425,949 Increase (decrease)
(1,218,823)
(1,345,020)
'(61,093)
(2;624,936)
Percent increase. (decrease)
(6.6%)
(11.0%)
(8.1%)
(8.4%)
AVERAGE BILLING PRICE PER HUNDRED CUBIC FEET Year ended June 30 1998 1.2780 1.0307
$-2.9340 1.2247 1997 1.2877 1.0200 2.1923 1.2054 Increase (decrease)
(0.0097) 0.0107
$ 0.7418 0.0193 Percent increase (decrease)
'(0.8%).
1.0%
33.8%
1.6%
AVERAGE NUMBER OF METERS Year ended June 30 1998 51,529 6,309 1,634 59,472 1997 5-1,119 6,211 1,653 58,983 Increase (decrease) 410 98 (19) 489 Percent increase (decrease) 0.8%
1.6%
1.1%)
0.8%
-AVERAGE ANNUAL USE BY METER (HUNDRED CUBIC FEET)
Year ended June'30 1998 334 1,724 427 484 1997.
361 1,968 459 533 Increase (decrease)
(27)
(244)
(32)
(49)
Percent increase (decrease)
(7.4%)
(12.4%)
(70%)
(9.1%)
Amourits represent revenue excluding the change in unbilled revenue
ANA.HE-M PUB-LIC' UTILITIES WATER NET REVENUES AVAILABLE FOR LONG-TERM REVENUE BOND DEBT SERVICE (IN THOUSANDS)
Year Ended June 30 1998 1997 1996 1995 1994 REVENUES Sale of water Residential
$ 22,013
$ 23,750
$ 21,722
$ 19,542
$ 18,565
.Commercial/Industrial/Municipa 11,21'3 12,469 11,188 9,661, 9,350 Other
.2,046-1,663 1,372 1,424 1,227 Billed revenue from the sale of water 35;272 37,882 34,282 30,627 29,142
,Change in unbilled revenue (34)
(1,034) 899 15 (21)
Total rivenue from the sale of water.
35,238 36,848 35,181 30,642 29,121 Other lincluding interest income) 2,402 2,118 2,422 1,981
-2,348 Total gross-revenues 37,640
.38,966 37,603, 32,623 3.1,469 EXPENSES (excluding depreciation and gmortization)
Cost of water 14,645 14,687 14,907 13,058 11,709 Operations 4,496 5,454
.5,782 4,510 3,632 Maintenance 3,529 4,099 3,782 3,559 4,543 Non-operating (519) 2,280 Total expenses 22,151 26,520 24,471 21,127 19,884 NET REVENUES (a) 15,489 12,446 13,132 11,496 11,585 Parity bond debt service requirements (b) 2,456 2,462 2,457 2,463 2,190.
Deposits to renewal and replacement 31 (5) 189 11 116 SURPLUS REVENUES (c).
13,002 9,989 10,486 9,022 9,279 Qualified obligations purchase payments (d) 1,037 1,037 1,037 1,037 Net Reveriues After Debt Service Payments 11,965 8,952-9,449 7,985 9,279 Transfers to City of Anaheim General Fund 1,542 1,481 1,288 1,232 1,123 BALANCE FOR OTHER PURPOSES
$ 10,423
$ 7,471
$ 8,161 6,753 8,156 Times parity bond debt srvice coverage (a/b) 6.3 5.1 5.3
.4.7 5.3 Qualified obliaation debt service coverage (c/d) 12.5 9.6 10.1 8.7 N/A
ANAHEIM PUBL1.C UTILITIES Electric Utility Statistics ELECTRIC OPERATING STATISTICS Year, Ended June 30, 1998
.1997 1996 1995 1994 POWER SUPPLY (MWH)
Owned Generation San Onofre Nuclear Generating Station 526,600 408,135
.. 539,558 491,647 488,916 San Juan Unit #4 376,911 259,414 337,299 298,914 298,721 Combustion Turbine 5,175 2,922 3,858' 2,622 4,169 Total Owned Generation 908,686 670,471 880,715 793,183 791,806 Purchased Power Intermountain Power Prolect 1,565,086 1,614,901 955,591 1,235,149 1;556,072 Hoover Dam 59,873-53,173, 54,802 46,850 50,571 Power cohtracts 99,210 117,117 50,061-114,143 447,382 Southern California Edison Company 114,557.
55,722 90,907 91,470 88,051 Non-firm,purchases 2.90,887 399,958 821,749 596;537 289,378 Total Purchased Power 2,129,613 2,240,871 1,973,110 2,084,149 2,431,454 System total 3,038,299 2,911,342 2,853,825 2,877,332 3,223,260 System peak demand (mW) 5607 500.2 501.1 514.1 464.0 ELECTRIC USE Average Number of Meters Residential 90,345 89,467 88,568 87,964 87,602 Commercial 15,491 15,545 15,500 15,248 15,201.
Industrial 708
.614 576 572 573 Other 108 109 160 152 168 Other utilities 11 12 8
1 1
Total Meters - all classes 106,663 105,747 104,812 103,937 103,545 Megawatt-hour Sales Residential 549,804 537,294 530,901 522,622 502,354 Commercial 584,391
.602,530 580,454 570;666 555,257 Industtial' 1,214,270 1,169,179 1,127,457 1,129,019 1,118,268 Other 41,165 40,400, 39,865.
34,378-33,913 Other utilities 267,228 425,023.
354,351 429,246 733,295 Total Megawatt-hour Sales - all classes 2;656,858 2,774,426
-2,633,028 2,685,931 2,943,087 GROWTH OF SYSTEM Transmission, 69 kV, circuit miles 67 67
-67 68 65 Distribution, 12 kV and lower, circuit miles Overhead 836 851 856 868 895 Underground 525 508.
494 488
'467 Total transmission and distribution 1,428-1,426 1,417 1,424 1,427 Transformer capacity, kVa 220kV to 69kY 840,000 840,000 840,000 840,000 840,000 69kV to 12kV 885,000
'846,000.
'830,000 780,000 786,000 12kV to customer 1,253,320 1,233,000-
'1;204,000 1,202,000 1,142,000-
ANAHEIM PUBLIC.
UTILITIES ELECTRIC SALES COMPARISON Other All Residential Commercial Industrial Other Elecfric Utilities Classes REVENUE FROM THE SALE OF ELECTRICITIY (IN THOUSANDS)
Year ended June 30 1998
$ 53,737
$ 62,337 102,810
$ 3,283 5,090 227,257 1997 51,626 63,115' 100,789 3,164 5,074 223,768 Increase (decrease) 2,111.
(778) 2,021 119 16 3,489 Percent increase (decrease) 4.1%
(1.2%)
2.0%
3.8%-
0.3%
1.6%
MEGAWATT-HQURS SOLD Year ended June 30 1998 549,804 584,391 1,214,270 41,165
- 267,228 2,656,858 1997 537,294 602,530 1,169,179 40,400 425,023 2,774,426 Increase (decrease) 12,510
. (18,139) 45,091 765 157,795)
(117,568)
Percent increase (decrease) 2.3%
(3.0%)
3.9%
1.9%
(37.1%)
(4.2%)
AVERAGE BILLINGPRICE PER KILOWATT-HOUR Year ended June 30 1998
$ 0.0977
$ 0.1067, 0.0847
$ 0.0798
$ 0.0190 0.0855 1997 0
0.0961 0.1047 0.0862 0.0783 0.0119 0.0807 Increase (decrease)
$ 0.0017
$ 0.0019 (0.0015)
$ 0.0014
$ 0.0071 0.0949 Percent increase (decrease) 1.7%
1.8%
(1.8%)
1.8%
59.6%
6.1%
AVERAGE NUMBER OF METERS Year ended June 30 1998 90,345 15,491 708 108 11 106,663 1997 89,467 15,545-614 109 12 105,747 Increase (decrease),
878 (54) 94' (1)
(1) 916
'Percent increase (decrease) 1.0%
(0.3%)
15.3%
(0.9%)
(8.3%).
0.9%
AVERAGE ANNUAL USE B METER (KILOWATT-HOURS)
Year ended June 30 1998 6,086 37,725 1,715,071 381,153 1997 6,005 38,760
.1,904,200 370,642 litcrease (decrease).
81 (1,035)
(189,129) 10,511 Percent increase (decrease) 1.3%
(2.7%)
(9.9%)
2.8%
Amounts represent revenue excluding the change in unbilled revenue
ANAHEIM PUBLIC UTILdITIE S ELECTRIC NET REVENUEs AVAILABLE FOR LONG-TERM REVENUEBOND DEBT SERVICE (IN THOUSANDS)
Year Ended June 30, 1997 1997 1996 1995 1994 REVENUES Sale of electricity Residential
$ 53,737
$ 51,626
$ 51,845
$ 50,439
$ 47,433 Commercial 62,337 63,115-.
60,979 60,051 57,547 Indusfrial 102,810:
100,789 100,695
-99,877 96,718 Other 3,283 3,164 3,207 2,768 2,674 Other utilities 5,090 5,074 5,285 7,240
,14,150 Billed revenue from the sale of electricity 227-,257 223,768
.222,011 220,375 218,522 Change in unbilled revenue (1,320) 4,530 667 (1,015)
(625)
Total revenue from the sale of electricity 225,937 228,298 222,678 219,360 21-7,897 Provision for rate stabilization 13,592 14,251 20,956 19,750 12,839 Other (including interest income) 12,400 6,586 9,914 8,422 8,847 Total gross revenues 251,929 249,135 253,548
.247,532 239,583 EXPENSES (excluding depreciation and cancelled project costs)
Cost of purchased power 136,343 141,120 127,839 128,926 136,602 Fuel used for generation.
2,854 2,212
-3,370 3,104 2,957 Operations 40,560 38,093
. 37,994.
39,374 33,776 Maintenance 11,549 14,817 11,391 11,924 6,781 Non-operating 1,114 Tottil operating expenses 192,420 196,242 180,594 183,328 180,116 NET REVENUES (a) 59,509 52,893
- 72,954 64,204 59,467 Parity bond debt service requirements (b) 20,834 19,649 20,763 20,726
.19,567 Deposits to renewal and replacement 89 301 118 152 1,410 SURPLUS REVENUES (c) 38,586 32,943 52,073 43,326 38,490 Qualified obligations purchase payments (d) 13,007 11,058
.11,058 10,920 7,784 ERAN interest and related expenses 800 804 845 777
-594 Net revenues after debt service payments
.24,779 21,081 40,170 31,629 30,112 Transfers to City of Anaheim General. Fund 9,539 9,674 9,491 9,345 9,455 BALANCE FOR OTHER PURPOSE
$ 15,240
$ 11,407
$ 30,679
$ 22,284
$ 20,657 Times parity bond debt service coverage (a/b) 2.9 2.7 3.5 3.1:
3.0 Qualified obligation debt service coverage (c/d(
3.0 3.0 4.7 4.0 4.9
ANA.HEIM PUBLIC UTILI-TIE.S Water Utility,
AUDITED FINANCIAL STATEMENTS (in thousands)
WATER UTILITY FUND BALANCE SHEETS June 30, 1998 June 30, 1997 ASSETS Utility plant Lafd
$.1,554-1,554 Source of water supply 20,846, 20,802 Pumping plant 28,776 28,741 Transmission and distribution 157,076 151,326 General plant 1
'4,073 2,712 Gross utility plant 212,325 205,135 Less accumulated depreciation (43,053)
(38,945)
Construction work in prqgress 18,122 10,530 Net utility plant 187,394 176,720 Restricted assets Cash and investments 17,674 16,087 Accounts receivable 81 208 Accrued interest receivable-252 220 Total restricted assets 1 8,007 16,515 Unrestricted current assets Cash and investments 15,417 8,551 Accounts receivable 7,799 10,597 Accrued interest receivable 349 289 Materials and supplies
.176 1,95 Purchased water in storage
.420 371-.
Total unrestricted current assets 24,161 20,003 Other assets Orange County receivable, net-377 517 MWDOC pipeline receivable 910 982 Unamortized-bond refunding costs 1,469 1,647 Unamortized debt issuance costs 282 316 Total other assets 3;038 3,462 TOTAL ASSETS
$ 232,600
$-216,700 (continued)
ANAHEIM PUBLIC UTILI T IES WATER UTILITY FUND BALANCE SHEETS June 30, 1998 June 30, 1997 EQUITY-AND LIABILITIES Equity Beginning contribution by the City
$ 19,280
$ 19,280 Contributions in aid of construction 86,542 78,407 Retained earnings 76,057 67,351 Total equity 181,879 165,038 Long-term liabilities Long-rerm debt obligation, less current portion 42,161 43,513 Capital lease obligation, less current portion 1,063 1,182 Total long-term liabilities 43,224 44,695 Current liabilities (payable from restricted assets)
Current portion of long-term debt.
1,045 808 Accounts payable. '
342
.101 Accrued interest' 624
'646 Customer deposits 855 885 Total restricted current liabilities 2,866 2,440 Current liabilities (payable from unrestricted currentfassets)
Current portion of long-term debt 367 517
'Current portion of capitalized lease
.118
-111 Accounts payable and accrued expenses 3,566 3,670 Customer deposits 580 229 Total unrestricted current liabilities 4,631 4,527
..Conmitments atid contingencies TOTAL EOUITY AND LIABILITIES
$ 232,600
$ 216,700 See accompanying notes.
ANAHEIM' PUBLIC UTILI-TIES Water Utility AUDITED FINANCIAL STATEMENTS jin thousands)
WATER-UTILITY FUND STATEMENTS OF INCOME AND CHANGES IN RETAINED EARNINGS Year Ended June 30, 1998 1997 Operating revenues Sale of water
$ 35,238
$ 36,848 Other operating revenues 906 694 Total operating revenues 36,144 37,542 Operating expenses Cost of water 14,645 14,687 Operations 4,496 5,454 Maintenance 3,529 4,099 Depreciation 3,121 2,991 Total operating expenses 25,791 27,231 Operating income 10,353 10,311 Other income (expense)
Interest income 1,496 1,424 Interest expense (2,120)
'(2,242)
Nonoperating income (expense) 659 (2,280)
Orange County receivable adjustment (140)
Total other income (expense)
(105)
(3,098)
Net income
$ 10,248
$ 7,213 Retained earnings at beginning of year 67,351 61,619.
Transfer to the General Fund of the City (1,542)
(1,481)
Retained earnings at end of year
$ 76,057
$ 67,351 See accompanying notes.
ANAHEIM PUBLIC UTI-L-ITIE WATER UTILITY FUND STATEMENiS OF-CASH FLOWS Year Ended June 30, 1998 1997 Cash flows from operating activities Operating income
$10,353
$ 10,311 Adjustments to reconcile operating income to net cash provided by operations Depreciation 3,121 2,991 Amortizati6n of debt issuance costs, discounts and refundings 278 293 Changes-in assets and liabilities Current accounts receivable 2,925 (1 ;254)
MWDOC pipeline 72 72 Materials and supplies '
19 42 Purchased water in storage (49)
(34)
Accounts payable and'accrued expenses 137 (155)
Custoner deposits
.321 203 Net.cash provided by operating activities 17,177 12,469 Cash flows from noncapital financing activities Transfer to the General Fund of the City (1,542)
(1,481)
Nonoperating income (expense) 659 (2,280)
Net cash used-in noncapital financing activities (883)
(3,761)
Cash flows from capital andrelated financing activities Capital expenditures (12,165)
(5,160)
Principal reduction in debts and capitalized lease (1,443)
-(1,364)
Interest paid
,.(2,142)
(2,263)
Contributions in aid of construction 6,505 1;459 Net cash used in capital and related financing activities (9,245)
(7,328)
Cash flows from investing activities Purchase of investment securities (8,521)
(9,098)
Proceeds from sale and maturity of investment securities 1,706 4,247 Interest.received 1,404 1,293
'Net cash used in investirg activities (5,411).
(3,558)
Increase (decrease) in cash and cash equivalents 1,638 (2,178)
Cash and cash equivalents at beginning.of year 5,094 7,272 Cash and cash equivalents at end of year
$ 6,732
$ 5,094 Investments 26,359 19,544 Total cash-and-investments
$ 33,091
$ 24,638 Schedule of noncash financing and investing activities Contributions in aid of construction 3,151
$ 1,059 Depreciation on contributed assets
$ (1,521)
$ (1,477)
OFange County receivable adjustment (140 See accompanying notes.
A N AH EI M PU BL IC UTILITIES Water Utility NOTES TO FINANCIAL STATEMENTS (in thousands)
- 1.
SUMMARY
OF SIGNIFICANT Pooled Cash and Investments ACCOUNTING POLICIES The City pools available cash from all funds for the-purpose Basis of Accounting of enhancing interest income through investment activities..
The Water Utility Fund (the "Water Utility") of the City of AnhiClCona(h ity"), wa salse
- ue3, quoted market prices. Guaranteed investment contracts are Anaheim, California (the "Ct",was established June 30, 1971, at which time the portion.of the City's General Fund carried at fairvalue based on net realizable value. The w~
rnserd Water Utility's cash'and investments poldwith teCity equity relating to water'system operations was transferred to Water 'Utility equity. The financial statements of the Treasurerare carried at fair Yalue based'on the value of Water Utility are presented on the accrual basis in conformi-each-participating dollar. Additional information pertinent to ty with generally accepted accounting principles and
,acounting principles and methods prescribed by the Interest income on investments is allocated to all funds on fthe basis of average daily ca h and investments balances.
ater Utility is not sbject to the regulations of the CPUC.
purses of theStatement of Cas Flows, the Water UnderGovernment Accounting Standards Board Statemeqnt Utility considers cash equivalents to be highl liquid short No. 20, the Water Utility has elected nottoapply Financial term investments that are readily convertile to known Acounting Standards Board pronouncements issued after.
a c
an r
itin r
on t
theovalu of these invesatmenti pried in Nothe
- November 30, 1989.
'date they are acquired. Cash and cash equivalents are Utility Plant and included in the City's cash and investments pool and in Califonia Pu pceUiitiCommsin(hn"PC) h The cost of additionts to utility plant and replacement of accounts heldr by fiscal agents.
retired units is capitalized. 'Utility plant is recorded-at cost, Under ~ ~
~
~
~
~
Rveu GoermntAcontngSanadsBariSaemn including capitalized-interest, or in the case of contributed Tro provide a better' matching of costs and revenues, the~
plaht.at fair market value at the-date of the contrib ution, Water Utility accrues estimated unbilled revenues for water exceptthose assets acquired prior to July 1, 1i977, which ol'but not billed at the. end of a fiscal period. Residential are 'recorded at historical cost. Cost includes labor, materi:'
.and salIe omrilacut r
il iotl n
als, allocated indirect charges such as.'engirieering, supervi-a.11 otsar'ce ci m ontl.~nsaeble iotl n
UtilityePlanteandllepreciation Sion, construction and transportation equipment, retirement The Water Utility's Rates, Rules and Regulations include a plan contributions and other fringe benefits, and certain admiistatie ad gne~al xpeses Th cot 'f mnor water commodity adjustment formula by which'billings to pamntat irvakvle at th xendae ofThe cotributinon, excepter thos assetst acuie priormnt to Jul 1,1977 whichle replacements is included in maintenance e oense.
The net variations in the cost of water production andcwater quality book value if assets retired or disposed of, net'of proceeds, Forapurpes ofteSaeetoCshFw, the Water Uiiy is recorded in accumulated depreciation.
tner invesetsc thatare areicvrlue to kncon Depreciation of utility plant is provided by the straight-linen ot methobased.on the following estim ated service lives Of the-receivable at year-end. Unbilled accounts receivable totaled properties:
.n
$2,463 and i2,550 at Jun v
30, 1998 and 1997, respectively.
Trnsisio/dstibtinplant, 20 to 75 years Other plant and equipmtent-
'5 to 50 yearsth Depreciation' on contributed assets is charged directly to contributions in aid of construction.'
bDuring fiscalnyearoaoaR 1998 and 1997, $1,521 acd$1,477a, respectively, was charged to contributions ih aid of construction.wa isreoredinacuulte dprcitin mesue't teWaerUilt
ANAHE IM PUBLIC UTILlTIES Debt Issuance Costs Effective July.1, 1997, the Water Utility adopted'the prov Debt issuance costs are deferred and amortized over the sions of GASB Statement No. 31, Accounting and Financia lives of the related bond issues on a basis which approxi-Reporting for Certain Investments and for External.
mates the effective interest method.
Investment Pool, which requires reporting certain invest BondRefudingCost
.ments-at fair value. The effect of the change in accounting Bond Refunding CostsL for investments on equity and retained earnings at July, 1,.
Bond refunding costs are deferred and amortized over the I
I I11 997 was not material.
lives of the related bond issues on a basis which approxi mates the effective interest method.
The Water Utility maintains cash and investments with the following carrying amounts:
Vacation and Sick Pay Vacation and sick pay for all City employees are paid by the Cash and investments pooled General Benefits and Insurance Fund of the City. The with City Treasurer
$.28,691 General Benefits and Insurance Fund is reimbursed through Investments held with trustee 4,400 payroll charges to the Water Utility based on estimates of 33,091 benefits to be earned duriog the year. Vested vacation and Cash and investments are recorded on -the Water Utility sick'pay behefits are accrued fh the General1 Benefits and F
wnd Balance Sheet as follows:
insurance Fund a nd-amnounted to $422 and $418 for the..
Restricted assets - cash and investments
$ 17,674 Cirrent assets - cash and investments 15,417 Transfers to the General Fundof the City
$ 33,091 Article XII of the City Charter provides that transfers to the Classification ofUCredit Risk General Fund of the City shall not exceed 4% of the gross revenue of the prior year: Such transfers are not, in lieu of level of risk assumed bythe Water Utility. Category I invest taxes and are recorded as distributions of'retained earnings.
rhents"6re insured or registered, or securities ar held by Use of Estimates
'the Water Utility or its agent ithe Water Utility's name.
The preparation of financial statements in conformity with Category 2 investments are uninsdredland unregistered, generally accepted accounting principles requires manage-with securities held by the counterparty's trust department
. ment to make estimates and assumptions that affect the or agent in the Water Utility's fame. Category 3 investments amounts reported in the financial statements and accompa-are uninsured and unregistered, with securities held by the nying notes. Actual results could differ from those estimates.
counterparty, or by its trust department or agency but not in the Water Utility's name.,
- 2. CASH AND [NVESTMENTS
- 2.
CSH ND
.NVSTMNTSThe'Water Utility's investments pooled with the City.
The City maintains a cash and investment pool, which Treasurer orlheld in guaranteed investment contracts and includes the cash balance of all funds, and is invested by the mutual funds are not subject to categorization because they.
City Treasurer to enhance irterest earnings. The pooled not are ntevidenced by securities that exist in physical or interest earned, net of administrative fees, is. reallocated to each undbasedon
-book entry fotrn.
each fund. based on average daily cash balances. -
The City's Investment Policy further limits the perrii'tted investments in Government Code Sections 53600 et.. al.,
16429.1 and 53684 to the following:- obligations of the U.S. Government, Federal Agencies, Medium Term Notes, Certificates of Deposit, Bankers Acceptances, Commercialo Paper rated A-cI byaStandard and Poor's Corpoaation or P-I by Moody's Commercial Paper Record, Local Agency Investment Fund, County Poals, Repurchase Aareenrsents, Reverse Repurchase Agreements and Mutual Funds.t y
Trasue orhl.ngaate.nvsmn otat n
ANAHEIM PUBLIC UTILITIES Water Utility NOTES To FINANCIAL STATENIENTS (in thousands)
At-June 30, 1998, the cash and investments were categorized as follows; Category Carrying Fair 1
2 3
Uncategorized Value Value Investments held with trustee Repurchase agreements
$ 2,463
$ 2;463
$ 2,463 Guaranteed investment contracts 1,937 1,937 -
1,937 Cash and investments pooled with City Treasurer 28,691 28,691 28,691
$ 2,463
$ 30,628
$ 33,091
$ 33,091 Investments Held 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 invest ments that are insured or registered or-for which the securities are held by the City's agents in the City's.name.
- 3. OPERATING EXPENSES Operating expenses shared, with the Electric Utility Fund amounted to $11,634 and $11,970 for the fiscal years ended June 30, 1998 and 1997., respectively, of which $2,327 and $2,394, respectively, were allocated to the Water Utility.
The shared expenses are allocated to eachUtility based'on estimates of the benefits each Utility derives from those common experses.
- 4. LONG-TERM DEBT Long-term debt coisists of the following:
June 30, 1998 June 30, 1997 Water Revenue Bonds, 1986 series, TIC 7.048%, dated March 1, 1986, sold March 31, 1986 in the amount of $7,160 of which $1., 170 naturing April 1, 1999,through 2001 were advance refunded on June 1, 1993. The remaining
$4,325 term bonds at a rate of 7.0% maturing April 1, 2009, subject to manda tory redemption from April 1, 2002 to April 1, 2009 in annual principal install ments ranging from $445 to $650. Total remaining debt service is $6,262 to maturity.
$ 4,325
$ 4,670 Water Revenue Bonds, 1988 series, TIC 7.3765%, dated January 1, 1988, sold January 12,'1988 in the amount of $5,000 of which $3,830 maturing October 1; 1999 through 2012 were advance refunded on June 1, 1993. The remaining bonds mature October 1, 1998 in an annual principal installment of $155 at a' rate of 6.75%. Total remaining debt service is $160 to maturity.
155 300 Water Revenue Bonds, 1990 Series TIC7.0227%, dated July 1, 1990, sold August 14, 1,990 ih the amount of $9,000, of which $7,010 maturing October 1, 2002 through 2016 were advance refunded on June 1, 1993.' The remaining bonds mature serially to October 1, 2001 in an'nual, principal installments of $215 to $260 at rates ranging from 6.45% to 6.70%. Total remaining debt service is
$1,081 to maturity.
-'950 1,150
AINAHEIM PUtBLI.C UTILITIIES Long-term debt consists of the following:
June 30, 1998 June 30, 1997 Water Revenue Bonds, 1992-series, TIC 5:9088%, dated March. 15, 1992, sold, April 9, 1992 in the amount of $5,740 maturing serially to July.1, 2005. The.
annual principal installments range from $400 to $600 at rates ranging from 5.3% to 6.1%. The t6tal remaining debt,service is $4,949 to maturity.
3,940 4,320 Water-Revenue Bonds, 1993 series, TIC 5.4734%, dated June 1, 1993; sold'June 23, 1993-in the amount of $13,545 maturing serially to October 1, 2016. The annual principal installments range from $490 to $970 at rates ranging from 4.3% to 5.5%. Total fernaining -debt service is $;1 9,937 to maturity.
12,930 13,040 Anaheim Public Financing Authority Revenue Bonds, Issue of 1994, TIC 5.231 %,
dated January 1,;1994, sold February 16, 1994, in the amount of $20,000, of which (1) $8,315 at rates ranging from 4.85% to 5.20%, maturing serially through October 1, 2012, subject to optional redemption 6n or after April 1, 2004; in annual principal installments ranging from $640 to $1,700; and (2)
$11,685 term bonds at a rate of 5.25% maturing through'October 1,.2019, sub ject to mandatory redemption from October 1, 2013 to October V, 2019 in annu al principal installments ranging from $620 to $2,625. Total remaining debt ser vice is $36,014 to maturity.
20,000-20,00Q Total revenue bond debt 42,300 43,480 Note Payable to Internal Service Fund of the City, 8.95%, issued October 13, 1984 in the amount of $335, semiannual principal and interest payments of $16 through October 31, 2003; total remaining debt service of $168 to-maturity.
143 169 Advances from the Orange County Water-District, 3.5%, a partial installment under terms of a $750 per Well Constructi6n Program Agreement, dated April 18, 1990; for the construction of Wells 46, 47 and 49, semiannual principal and interest installment payments of $94 through July 31, 2010; total remain ing debt service of $2,123 to maturity.
1,737 1,861 Total other debt 1,880 2,030 Total debt -
-44,180 45,510 Less current pprtion (1,412)
(1,325)
Less unamortized bond discounts (607)
(672)
Total long-term debt
$42,161
$ 43,513 Annual debt service requirements at June 30, 1998 to maturity are as follows:'
Total All Revenue Bond Debt Other Debt Long-Term Fiscal Year Principal
'Interest
- Total Principal Interest Total Debt 1999
$ 1,260
$ 2,234
$ 3,494 152
$ 68 220
$ 3,714 2000 1,330 2,166 3,496 158 62 220 3,716 2001 1,400 2,094 3,494 165 55 220 3,714 2002 1,465 2,027 3,492 171 49 220 3,712 2003 1,540 1,943
.3;483 178 42
.220
. 3,703 Thereafter 35,305 15,639 50,944 1,056 135 1,191 52,135
$42,300
$ 26,103
$68,403
$ 1,880
$411
$-2,291
$70,694 Interest costs of $576 and $537 have been capitalized to utility plant for fiscal years ended June 30, 1998 and-i1997, respectively.
AN-AHEIM PUBLIC UTILITIE-S Water Utility NOTES TO FINANCIAL STATEMENTS (in thousands)
In accordance with the boid resolhtions, 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 10/6 of the depreciated book value of the utili-ty plant in'service.
The bond issues outstanding at June 30, -1998 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 bondswithin the 12 months.
Restricted cash and investments includesreserved amounts, as well as undisbursed bond proceeds at June 30, is as follows:
June 30, 1998 June 30, 1997
'Held by.fiscal agent Bond reserve fund
$ -4,400
$ 4,400 Held by City Treasurer lBond service account 1,669 1,454 Renewal and replacement account 1,693 1,662 Restricted bond proceeds 9,912 8,571
$ 17,674
$'-16,087 The Water Utility's interest and other finance charges, except for capitalized interest, for the years ended June 30, 1998 and 1997 were $2,120 and $2,242, respectively.
- 5. ADVANCED REFUNDING When conditions have warranted, theWater Utility has sold various issues of bonds to provide for the refunding of previously issued obligations. The proceeds received from tie 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 transac tions defeased the outstanding bond issues with a resultant reduction in annual debt service during the term of the issues.
Principal Amount Principal Outstanding at Amount Net Present Principal Amount Issue
, June 30, 1998 Refunded Value Savings 1993 -Water Revenue Bond Refunding 1990 Water Revenue Bond
$7,010
$7,010
'$472
- 6. CAPITALIZED LEASE OBLIGATION The City has a-long-term non-cahcelable lease with the Years ending June 30,
'Munidipal Water District of Orange County to finance the 1999 178
-acquisition of a 3.002% share in thescapacity of the Allen-2000 179 McColloch Pipeline. Future minimum lease payments under 2001 181 this lease are as follows:
2002 182 2003 184 Thereafter 563 1,467 Less interest (286)
Future minimum lease paymernts 1,181 Current portion 1,18
- Long-term portion 1,063
$ 1.161
ANAHEI-M PUBLIC UTILITIES The City sold its share of the All6n-Mv'cColloch pipeline to the All amounts of compensation deferred under the plan, all Metropolitan Water District of Southern California (the property and rights purchased with those amounts, and all "MWD"). The transaction was completed in April 1995. The income attributable to those'amounts, property or rights balance of this transactionis shown as notes receivable on are (until paid or made available to the employee or other the balance sheets. Because the capitalized lease obligation beneficiary) solely the property 6nd rights of the City, sub is non-cancelable, the City is obligated for the future pay-ject to the claims of the City's general creditors. Participants' ments, which are partially offset by payments received from rights underthe credi the MWD.
of the City. in an amount equql to thei'air market value of the deferred account for deach pa utticipnt pIt isthe opinion of the City's leal counsel that'the City has iThe City 'cantributes to the State of California Publicrh are(unili or mase uder vilbe toa the emoeeorthert Emplyee' Rtirmen Sytem("PES") anaget rnulipl-
,of due care that would be required of an ordinary prudent employ~er public employee retirement system that acts'as a einvestor.
sThe City belaves it is unlikely that it will use the common investment and administrative agent for California -
ast ostsytecam fgnrlceiosi h
uue jset tosaf the claims of eCt' general creditors Paticipats'e gThetSmall Business Job Protection Act of 1996 changed As a condition of parti ci patio n,,.employees'a re required to, ItraRenu.CdScio45byrttngptc contribute 7% of their annual compensation. too PERS. The.of pant assets from creditors of a bankrupt or financially trou City is required to.contribute the remainingamounts.neces ybledspublic jurisdiction. To effect this change, the employers sary to fund PERS, using the actuarial basis recommended omust comply with the provisions of the act by January,
bythe PERS actuaries and actuarial consultants and adopt 1999 at which time the City will, implement GASB ed b th Boad o~dmiistatio.
,Statenment No. 32, Accounting and Financial Reporting for The Water Utility contributed $605 and $588.to PERS for Internal Revenue Code Section 457 Deferred Compensation the years ended June 30, 1 r998 and 1997; respectively.s-Plans, which'ill nothave a material effect on the City's finasycial position:a Informaion is not available separately for the Water Utility, as to the cost of benefits funded, the actuarially computed present Value of vested and non-vested accumulated plan presnt alu ofvesed andnonvesed ccuu~aed lan The Water Utility'is part of the City's self-insurdd workers' benefits, the related assumed rates of return used, and the actuarially coriputed value of vested benefits over-the such claims, including claims incurred but not reported, is related pension fund assets. Refer to the-City of-Anaheim's trasferedto heCity in considleration of self-insurance pre Comprehensive Annual Financial Report for further miumspaid by the Water Utility. Effective July 1,. 1.986, the information.
/City became self-insured. Costs relating to the litigation of
- 8. Deferred Compensation are charged-to expense as incurred.
The City offers its employees a deferred compensation plan
- 10. COMMITMENTS AND CONTINGENCIES
'created in accordance with the Internal Revenue Code, SectionLitigation Section 457. The plan, available to all City employees, per-.
IA numberof claims-and, suits are pending against the City
-mits deferral of a portionof an employee's salary until future years. The deferred compebsation is not available to alleged liabilities arising out of matters usually incidental to employees until termination, retirement, death or an unfore saegcs the operation of a utility'such as the water system of the City.
fIn the opinion of mlnagement the exposure under these vclaims and suits would not materially affect the financial position of the Water Utility as of June 30, 1998.
1999, hc iyeteCt ilipeetGS
ANAHEIM PUBL1,C UTILITIES Water Utility NOTES TO FINANCIAL STATEMENTS (in thousands).
Anaheim Hills Area Land Movement' Joint Agreement, net litigation proceeds from pool-related The City has been named as a defendant in several lawsuits litigation would be distributed among the Pool Participants in connection with land movement which occurred in-the and the County in accordance with-a complex formula: The Anaheim Hills area in 1993. During June 1997, the Water County is pursuing proposed settlements with certain-defen Utility reimbursed the City's General Fund for a portion of dants, the proceeds.of which will be distributed pursuant to the litigation costs incurred by the City. In August 1997,
.,the-terms of the Joint Agreement. The Joint Agreement
'the Water Utility received reimbursement from the City's provided for the establishment of a-$50,000 litigation fund insurance carriers or 'risk pooling entities for a portion of to pay litigation costs incurred in pool-rel the payments.madb to the City. The net reimbursements AtiJune 30, 1997, the Water-Utility's nonrecovered princi received in 1998 and the net payments made in 1997 of pal balance of its investment in the Pool amounted to $517,
$659 and $2,280, respectively, are classified as nonoperat was classified as a "County receivable" and was considred ingincome and expense in the accompanying statements of long-term in nature. In the last several months, multiple operations and changes in retained earnings. The Water Utility's. ultimate exposure to loss and additional litigation costs; if any, is not determinable and has not been accrued result of an 'analysis of the recoverabilityof the Orange in'the accompanying financial statements.
in-te acomanyig fnanialstatmens.
',County receivable from th6 proceeds of proposed and esti Chpital Expenditures mated-future settlements, the Water Utility has adjusted The Water Utility's budget for-fiscal 1998-99 provides for this amount from $517 to $377.
capital expenditures of approximately $7,618, of which captalexpndiure ofappoxma'ely$768, f wich As the City's investment in the Pool was commingled for
$4,560 is expected to be funded by water reven~ues and
$4,50 i expcte to e fndedby aterrevnuesand investment purposes, the receivable was allocated to all-,City contributions in aid of construction.
contibut ons n a d of cons ruct on.-funds based on each fund's N ovem ber 30, 1994 cash bal 11 ORANGE COUNTY RECEIVABLE receivable adjusted) Is reported as log-erm.
COUNY REEIVALE The outcome' of the remaining pool-related litigation is not On December 6, 1994, the County of Orarige (the "County")
On Dcemer 6 194, he Cunt of rane (he "ouny")
determinable, and, thereore,, thd ultimate collectibility of the and the Orange County Investment Pools (collectively; the receivable cannot reasonably be estimated. However, in the "Pool") filed petitions under Chapter 9 of the United States
-Bankruptcy Code. At the time of the bankruptcy, the City Bankuptc Cod.
A thetimeOf te bnkrutcythe tY claims willnhot j'naterially affect the financial position or had funds invested in the Pool. On May 2, 1995, the United States Bankruptcy Court approved a Comprehensive Settlement Agreement entered into by and among the CQunty, the Pool and a majority df the Pool participants, of which the City was a part, which allowed the City-to recover approximately 800 of its investment in the Pool and
'result, those computer programs have time-sensitive soft-allowed certain classes of claims against the County' ware that recognize a date using "00" as the year 1900 (Settlement Secured Claims and Repayment Claims) for the balace o itsinvetmens
-rather than the year 2000 (the "Year 2000 Issue"). This balance of its investment:,
could cau~se a system failure or miscalculations causing dis Subsequently, in late' 1995, an agreement (the "Joint
'ruptions of operations, including, among other things, a Agreement")-was proposed and later accepted by a majority temporary inability to processtransactions ogrtengge in of the Pool Participants, providing for a funding'source and other normal business activities.
- a.
settlement of the County bankdruptcy, which allowed the.o County toeemert from bankruptcy in May 1J996. The Joint Agreement provided that the Settlementr SecuredoClaims and Repayment Claims, which are impaired classes of claims't' underA the ban1kruptcy, would be made nonrWcourse againstnc the County, and wsuld be patd only from',net litigation pro ceeds of pool-related litigation if and when recovere by the County frora third-party defendants. In addition, under the
ANA-HEI.M PU BLIC UITILITIES Management of the Water Utility believes that the Year, As of June 30, 1998, the Water Utility was in the remedia 2000 Issue will not pose significanf operational problems tion, validation and testing stages of the project. Actual for its computer systems. However, if software modifications changes have been made to many of the affected systems, and conversions are not made, or are not completed timely, the which include conversion, of existing systemsas well as Year 2000 Issue could have a material irrfpact on the opera-replacemept of certain legacy systems to achieve Year 2000 tions of the Water Utility. In addition, there is no guarantee Issue compliance. To ensure sucessful conversions, valida that the systems of other companies on which the Water Utility's ton and testing of'some of th& larger systems has begun systems.rely will be converted timely in order to avoid an and theWater Utility anticipates, completing the Year2000 adverse effect on the Water-Utility. The'City-estimates that Year Issue piroject by June 30, 1999.
2000 Issue project costs incurred during fiscal year 1.997-98 t
viThe costs of the project and the date on which the Water rs$350; and that an additional commitmenttUtihitestm repxaUlacem of believes lgcwill complete the Year 2000 Issue modifi exists of approximately $1,500 for the remaining informatione esi s,
i ction ad testngo mafthnargeret' systetmas, gun technology related projects, as well as $500 to complete other operational systems related projects. The entire project is being events including nued avaii of er hresources, third-party modification plans and other factors.
oswever, there canbe no guarantee that these estimates will be achieved and actual results could differ materially from those anticipated.
Report of Independent Auditors 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 (the "Water Utility"),jas of June 30,.1998 and 1997, and the related statements of income and changes in retained earnings and cash flows for the years.fhen erided. 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 also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial tatement 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, 1998 and 1997, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles.
October 2, 1998
.ANAHEIM PUBLIC UTILITIES Electric Utility, AUDITED FINANCIAL STATEMENTS (in-thougands)
ELECTRIC UTILITY FUND BALANCE SHEETS June 30, 1998 June 3.0, 1997 ASSETS Utility plant Production
$291,964
$ 288,673 Transmission 21,953 21,624 Distribution 222,089 208,223
-General 59,386 53,815.
Gross utility plant 595,392 572,335 Less accumulated depreciation (186,2331 (167,635)
Net plant in service 409,159 404,700 Construction Work in progress 32,290 24;386 Nuclear fuel, at amortized cost 4,023 5,792 Net utility plant 445,472 434,878 Restricted assets Cash and investments 201,49 132,405 Other 2,489 1,049 Total restricted assets 3203,983 13,454 Unrestricted current as-sets Cash and investments, 13,685 31,143 Accounts receivable 29,917 32,197 Accrued interest receivable.
1,458 2,224 Materials and supplies 4,402
'5,040, Prepaid purchase power 2,579 2,577 Total unrestricted current assets 52,041 73 1'81 Other assets Orange County receivable, net 2,989 4,103 Unamortized bond refunci'ng costs 17,719 21,438 Unamortizedproject costs 40 Unamortized debt issuance costs 2,128 1,938 Total other assets 22,836 27,519 TOTAL ASSETS-
$ 724,332
$ 669,032 (continued)
ANAHEIM PUBLIC UTI.LIT,I,E-S ELECTRIC UTILITY FUND BALANCE-SHEETS June 30, 1998 June 30, 1997 ELllTY AND LIABILITIES Equity Beginning contribution by the City
$ 14,629
$ 14,629 Contributions in aid of construction 49,887 45,181 Retained earnings 192,925 182,749 Total equity 257,441 242,559 Long-term liabilities Long-term debt obligation, less current portion 356,206 308,574 Decommissioning reserve
.37,161 30,983 Total long-term liabilities
.393,367 339,557 Current liabilities (payable from restricted assets)
Current portion of long-tetm debt 13,781 13,145 Accounts payable 682 1,090 Accrued interest 4,671 4,194 Tax-exempt commercial paper 20,450 21,900 Total restricted current liabilities 39,584 40,329 Current liabilities (payable from unrestricted current assets)
Current portion of long-term debt 4,826 4,595 Accounts payable and accrued expenses 11,809 12,115 Rote stabilization account 11,901 24,565 Customer deposits 5,404
-5,312 Total uhrestricted current liabilities 33,940 46,587 Commitments ancrcontingencies TOTAL EQUITY AND LIABILITIES
$ 724,332
$ 669,032 See accompanying notes.
ANAHEIM PUBLIC UTILITIES Electric Utility AUDITED FINANCIAL STATEMENTS (in thousdnds)
ELECTRIC UTILITY FUND STATEMENTS OF INCOME AND CHANGES IN RETAINED EARNINGS Year Ended June 30, 1 998 1997 Operating revenues Sale of electricity
$ 225,937
$ 228,298.
Rate stabilization adjustment 13,592 14,251'
'Other operating revenues 4,710 1,646 Total operating revenues 244,239 244,195 Operating'expenses Cost of purchased power 136,343.
141,120 Fuel used for.generation 2,854 2,212 Operations 40,560 38,093 Maintenance 11,549 14,817 Depreciation 18,834 18,081 Total operating expenses
-210,140 214,323 Operating income 34,099 29,872 Other income (expense)"
Interest income 7;690 4,940 Interest expense (20,960),
(19,903)
Orange County receivable adjustment (1,114)
Total other expense (14,384)
(14,963),
Net income
. $ 19,715
$ 14,9C9 Retained earnings at beginning of year 182,749 177,514
'Transfer to the General Fund of the City (9,539)
(9,674)
Retained earnings at end of year
$ 192,925
$ 182,749 See accompanying notes.
A N A H EI M PUB LIC UTILITI ES.
ELECTRIC UTILITYFUND STATEMENTS, OF CASH FLOWS
-Year EndedJune 30,
.1998 1997 Cash flows from oper6ting activities.
Operating income
$ 34,099
$ 29,872 Adjustments to reconcile operating income to net cash provided by operations Depreciation 18,834.
18',081 Amortization of debt issuance costs, discounts and refundings 6,247 4,875 Amortization of nuclear fuel 2,854
-2,212 Increase in decommissioning reserve 6,178 5,539 Changes in assets and liabilities' Current accounts receivable 1,901 (4,327)
Materials and supplies 638 40 Prepaid purchased power
.(2)
(205)
Accounts payable and accrued expenses' (714) 82 Rate stabilization account (12,664)
(12,612)
. Customer deposits 92 (377)
Net cash provided by operating activities.
57,463 43,180 Cash flows from n6ncapital financing activities Transfer to the General Fund of-the City (9,539)
(9,674)
Net cash used irrnoncapital financing activities (9,539)
(9,674)
Cash flows from capjtal and related -financing activities Proceeds from borrowings 65,000 120,395 Principal reduction in debts (19,269 (130,587)
Capital expenditures (31,278)
(24,318)
Nuclear fuel expenditures (1,085) l(3,023)
Project refOnds (costs)
- 40.
(10)
Interest paid (20,483)
(20,581)
Issuance, refunding and discount cost on new financing (1,400)
(3,238)
-Contributions in aid of construction 4,787 4,050 Net cash used in capital and related financing activities (3,688)
(57,312)
Cash flows from investing activities Purchase of investment securities (40,599)
(35,212)
Proceeds from sale and maturity of investment securities 40,469' 37,993 Interest received 7,395 5,266 Net cash provided by investing activities 7,265 8,047 Increase Idecrease) in cash and cash equivalents 51,501 (15,759)
Cash and cash equivalents at beginning.of year 38,089 53,848 Cash and cash equivalents at end of year
$ 89,590
$ - 38,089 Investments 125,589 125,459 Total cash and investments
$ 215,179
$ 163,548 Schedule of noncash financing and investing-activities Contributions in aid-of construction -
68p 1,046 Depreciation on contributed assets (761)
(733)
Orange County receivable adjustment (1,114)
See accompanying notes.
AN.AHEIM PUBLIC UTILIT.IES Electric Utility NOTES TO FINANCIAL STATEMENTS (in thousands)
- 1.
SUMMARY
OF SIGNIFICANT
. Pooled Cash and Investments ACCOUNTING PoLICIES The City pools available cash-from all funds for the purpose Basis of Accounting of enhancing interest income through investment activities.
The Electric Utility Fund (the "Electric Utility") of the City of Anaheim, California (the "City"), was established June 30, value based on quoted market prices. Treasury mutual funds 1971, at which time the portion of the Citys General Fund are carried atfairvalve based on the'fund's share price, equity relating to electric system operations was transferred toaraeetrinvUtmentoeqrctslbased on unet realizable value.
to Electric Utility equity. The financial statements of the Electric Utility are presented on the accrual basis in confor-Additionalinformation peetinent to the value of these invest mity with generaily accepted accounting principles and ments is provided in Note 2. Interest income on invest accounting principles and methods prescribed by the ments is allocated to all funds on the basis of average daily Federal Energy Regulatory Commission ("FERC"). The cash and investments balances.
Electric Utility is not subject to the regulations of the FERC.
'Uner ovenmetalAccuntng tanard BordFor purpose of the Statement of Cash Flows, the Electric bUnder Governmental Accounting Standards Board Statement No. 20, the Electric Utility has elected not to Utility considerscash equivalents to highly liquid short apply Financial Accounting Standards Board pronounce ment isuedaftr Noembr 3, 189.amounts of cash and mature within three months of the nents issued after November 30, 1989.
date they are acquired. Cash and cash equivalents are Utility Plant and Depreciation inclbded in the City's cash and investments pool and in The cost of additions to utility plant and replacement of accounts held by fiscal agents.
retired units is capitalized. Utility plant is recorded at cost, Revenue Recognition including capitalized interest, or in the case of contributed plant, 'at fair market value at the date of the contribution, provide abetter matching of costs and revenues, the
'Electric Utility accrues estimated unbilledi revenues for enerr except those assets 'acquired prior to July 1, 1977, are recorded at historical cost. Cost includes labor, materials, gy Sold but not billed at, the 'nd of a fiscal period.
allocated indirect charges such as engineering, supervision, construction -and transportation equipment, retirement plan contributions and other fringe benefits, and certain adminis-Qn January 28, 1986, a wholesale rate refund policy (the ments is included in maintenance expense. The net book' Account (the "RSA), was as of the Electric value of assets retired or disposed of, net of proceedsis
-Utility's Rates, Rules and Regulations. The Policy provides recorded in accumulated depreciation.
for establishment of a rate, in cets per kilowatt-h Depreciation of utility plant is provided by the straight-line method based on the following estimated service lives-of the Electric Utility Revenue Fund. This transfer is. made on a' propeties:monthly basis.
properties:.
s c
Production 30 years 75 -
receivable at.year-end. Unbilled accounts receivable totaled Transmission-and distribution plant 20 to 75 years Other plant and equipment 5 to-50 years respectively.
Depreciation on contributed assets is charged directly to contributions in aid of construction. During fiscal years 1998 and 1997, $761 and $733, respectively, was charged to contributions-in aid of construction.th l
he
ANAHEIM PAUBLIC UTILITIES Nuclear Fuel Vacatioi and Sick Pay The-Electric Utility amortizes the cost of nuclear fuel 'to.
Vcation and sick pay-for all City employees are paid by* the expense using the "as burned" methpd. In accordance with General Benefits and Insurance Fund of the City.The the Nuclear Waste Disposal Act of 1982, the Electric Utility General Benefits and Insurance Fund is reimbursed through is charged a fee for the disposal of nuclear fuel at the rate payroll charges to the Electric Utility based on estimates of of one mill per kWh oh the Electric Utility's share of electrici-benefits to be earned during the year. Vested vacation an ty generated by the San Onofre Nuclear.Generating Station, sick pay benefits are accrued in the General Benefits and Units 2 and 3 ("SONGS"). The Electric Utility pays the fee Insurance Fund and amounted to $1,146 and $1%164for quarterly to Southern California Edison Company ("SCE"),
the Electric Utility at June 30; 1998 and 1997, respectively.
which is acting as. the agent for SONGS participants.
Nuclear Decommissioning Reserve Article XII of the City Charter provides that transfers to the Federal regulations require the Electric Utility to provide for General Fund of the City-shall not exceed 4% of the gross the future decommissioning of its ownership share of the revenue of the prior year. Such transfers are not in lieu of nuclear units at San Onofre. The Electric Utility has estab-taxes and.are recorded as distributions of retained earnings.
lished a reserve fund for tal decommissioning of the nuclear Use of Estimates poGeera Benefit and rensurance Fudof the City.ro aThen The preparation of financial statements in conformity with Onofre. The Electric Utility funds the reserve and recognizesll cete cti il e
esmae
- expense over the useful life of the generating plant. A sepa-metomaesiaesndsupinshtafcte beneft to bae esiarne duringutheiyeartVete vaffctonhan rate trust account has been established for prior and future.
amounts reported in the financial-statements and accompa ansuranc Funde and amounte toont
$1r14 anda$1i164dfor amouts unde an~thee aouns ar clssifed s nying notes. Actual results could materially differ from those restricted assets in the accomnpanying balance'sheet. To esiae intena em tdate,h the Electric Utility has reserved $37,161 as Anaheim'sr eStimated share of the decommissioning-cost of San Onofre.
et t
Based on a cost estimate completed by SCE and approvede t
i a Sh nese o
i nuclear ~ ~
~
~ ~ ~ ~ ~ ~ ~~~~Te units atSnOofeahletintliyhseta-txs andn recddas adstibueton o
etineerins by the California Public Utility Commission ("CPUC"), the-Sincludes the cash balance of all funds, and is invested by the Electric Utility plans to set aside approximately $3,000 to expense overure the usefule lifee~
ofni h
thpgnrainllat.Asea
$4,000 p'er year until 2003 and approximately $750 to-interest earned, net ofhadministrative fees is reallocated to
$1,300 per year from 2004 to 20-14 tosfund this obligaretceeach fund based on average daily cash balances.
tion. Decommissioning is expscted to commence around the' year 2013.
The City's Investment Policy further limits the permitted Electriinvestments in goernment Code Sections 53600 et. a Debt Issuance Costs
$ 0 ee12land 53684 to the following: obligations of.the Debt issuance costs are deferred and amortized over the N
US. Government, Federal Agencies, Medium Term Notes, lives of the related bond issues on a basis which aproxi-ec amoutifcts eortDedoithe fianrcitames, adComa emates the effective interest method.
Paper rated A-I byStandrd and Poor's-Corporation or P-I BondRefunding Costs by Moody's Commercial Paper-Record, Local Agency Bond refunding costs are deferred and amortized over the Investment Fund, Repurchase Agreements, Reverse lives of the related bond issues on a basis which approxi-Repurchase Agrements and Mutual Funds. i b
mates the effective i nterest -method.
Detlsac Costs
AN-AHEIM PUBLIC UTI-LITIES' Electric Utility NOTES TO FINANCIAL STATEMENTS (in thousands)
Effective July 1,, 1997, the Electric Utility adopted the provi-Classification of Credit Risk sions.of GASB Statement No. 31, Accounting and Financial Investments are categorized to provide a description of the Reporting for Certain Investments and for External level of risk assumed.by the Electric Utility. Category 1 Investment Pools, which requires reporting certain invest-investmehts are insured orregistered, br securities ard held ments at fair value. The effect of the change in accounting by the Electric Utility or its agent in the Elecfric Utilify's for investments on equity and retained earnings at July 1, name. Categor' 2 investments are uninsured and unregis 1997. was not material.
tered, with securities held by the counterparty's trust department or agent in the Electric Uti lity's name. Category The Electric Utility maintains cash and investments with the follwingcaryingamouts:3 investments are uninsured and unregistered, with securi following carrying amounts:
ties held by the counterparty,' or by its trust department or Cash and investments pooled agency, but not in the Electric Utility's name.
with the City Treasurer 89,489 The Electric Utility's investmenfts pooled with the City Investments held with trustee 1
125,690
'Trasuer or held in guaranteed investment contract and.
$ 215,179
$ 21,179 mutual funds are not subject to categorization because they Cash and investments are recorded on the Electric Utility are not evidenced by securities that exist in physical or Fund Balance Sheet as follows:
book entry-form.
Resirictnd assets - cash and investnrents
$ 201,494 Current assets - cash anod investments 13,685 215,179 At June 30, 1998:n the cash and investments were categorized as follows; Category Carrying Fair dprm1 2' 3 agn Uncategorized Value Value Investments held with trustee U.S. Government securities 3,$
$ 32,664
$ 32,64
-Mutual funds
-1,706 1,706 1,706 Guaranteed in /estment 5ontracts
-91,320 91,320.,
91,320 TeltCash and investments pooled withtC City TreasurerTa erln a
t 89,489 89,489 89,489
$ 32,664
$ 182,515
$- 215,179
$ 215,179 Investments Held with Trustee Fiscal agents on behalf of the City hold and investfunds from long-term debt issuance. Fiscal agents are'mandated by bond indenture asto the types of investments in which $roceeds can be invested. Investments byfiscal agents predominantly con sist of U.S. Government secrities held in book entry form. Amounts invested by fiscal'agents include investmentsthat are insue or registered or for which the securities ar6 held by the City's agents in the City's name.
.3.
OPERATING EXPENSES
- 4. UNAMORTIZED PROJECT COSTS Operating expenses shared with the Water' Utility Fund Uhamortized project costs represent advance payments amounted to $11,634 and $11,970 for the fiscal S'ears made to participating agencies for preliminary.,enginee rin~g ended June 30, 1998 and 1 9n, respectively, of which and environmetal impact studies for the related'projects.
$9,300 and -$9,576, respectfully, were allocated to the, Electric Utility.
-5.
JOINTLY OWNED UTILITY PROJECTS.
ese e
rePursuant to a settlement agreement with SCE dated August Gu s
aratexed nesten lcaontac
-tlt bae on 130 9130-9,2 estim Iates of the benefits each Utility derives from those 4,- 1972, the. City was granted the right to acquire a 1.66%
C n eens ownership interest in SONGS, Units 2and 3, and subse quenl n
est ensaewithrTrust indetur asto te tpesof nvesmens i whchocedsan eneted. Iwnestmentas byte fiscrae ets, predoinany conee
ANAHEIM'PUBLIC UT.ILITIEIS ment of the parties. In the settlement agreement, SCE On August 12,1993, the Electric Utility purchased a agreed to provide the necessary transmission service to 10.04 ownership interest in the existing coal-fired San deliver the output of SONGS to the City. SCE and the City Juan Generating Station, Unit 4,' located near Waterflow, entered into the SONGS Participation Agreement that sets New Mexico. Otherparticipants include Public Service of forth the terms and conditions under which the City, New Mexico, 45.485%; the City of Farmington, 8.475; through the Electric U.tility, participates in the ownership the County of Los Alamos 7.20%; and M-S-R Public Power and output of SONGS. Other participants in the project Agency, 28.80.
The Electric Utility' purchase cost and include SCE, 75.05%; San Diego Gas & Electric Company, cumulative share of ongoing construction c6sts, which 20.00%; and the City of Riverside, 1.79%. 'Maintenance amounts to $57638 at June 30, 1998, are included in and operation of SONGS'remain the responsibility of SCE, utility plant.
as operating, agent for the City.
-6.
SHORT-TERM DEBT The Electric Utility's cumulative share of construction c6sts, The Electric Utility has outstanding Revenue Anticipation which amounted'to $ 197,863 at June 30, 1998, is includ ed in utility plant. The Electric 'Utility recorded depreciation relaed o SNGSof 6,81 an $7474 fo th ficalpaper for the purpose. of financing nuclear fuel purchases related to SONGS of $6,891 and $7,474, for the fistal years ended June 30, 1998 and 1997, respectively. The related to the ownership interest in SONGS. The balance Electric Utility made provisions during fiscal years 1998.and 997 utur decmmisionng cstsand
$21,900, respectively. The interest rates on this debt 1997 for future decommissioning costs (Note 1) of $3,861 at June 30, 1998, ranged between 3.40/
and 3.65% with and $3,008, respectively. Decommissioning costs along with the Electric Utility's share of SONGS operating costs have maturitiesranging from 13 to 99 days. The Electric Utility continues to maintain a $28,000 revolving credit agree been included in operating expenses.
bee inludd i opraingexpnse.'
.ment, which can be used in the event that the commercial As a participant in SONGS, the Electric Utility would be sub-paper cannot be refinanced as it matures. During fiscal ject to asessment of retrospective insurance premiums in years 1998 and 1997, there were no amounts borrowed
-the event of a nuclear incident at San Onofre or any other from the revolving credit agreement.
lieensed reactor in the United States.
- 7. LONG-TERM DEBT Long-term debt consists of the following:
June 30, 1998 June 30, 8
9 Electric Revenue Bonds, Issue of 1991, dated and d,
191 in the amount of $3,434.. The remauining principal of $3s2 7, at a rateoof 6.50o, maturing serially from October 1, 1999 to October 1, 2004 in annual principal installments ranging from a131 to $714. Theatotal debt service is $4,009 toJ maturity.
$u 3,257
$ 3,318 TElectric Revenue Bonds, Issue of 1993, TIC 5.07%, dated June 1,E1993, sold June 23, 1993, irN the amooent of $60,700.-The remaining principal of $53,485, at rates ranging from 4.3r0% to 5.31.0%, maturiag serially through October 1, m2007 in annual principal installments ranging from $835 to $6,615. The total debt service is p68a559 to maturity.
p r
53,485.
D 5A,275 7.. )
LO R
E
ANAHEIM P.UBLI'C UTILITIES
-- Electric Utility NOTES TO FINANCIAL STATEMENTS (in thousands)
Long-term debt consists of the following:
June 30, 1998 June 30, 1997 Anaheim Public Financing Authority Revenue Bonds, Issue of '1993, TIC 5.68%,
dated June 1, 1993, sold June 30, 1993, in the amount of $71,300. The remain ing principal includes: (1) $43,525 at rates ranging from 5.00% to 5.55%, matur ing serially through October 1, 2013 in annual principal installments ranging from
$345 to $5,555; (2) $7,115 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 to
$2,540; and (3) $19,425 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 to
$3,790. The total debt service is $123,984 to maturity.
70;065 70,400 Anaheim Public Financing Authority Revenue Bonds, -Second Issue of 1993, TIC 5.80%, dated July 1, 1993, sold August 12, 1993 in the amount of $62,810.
The remaining principal includes: (1) $3,020 at-rates.ranging from 4.50% to 5.40%, maturing serially through October 1, 2009 subject to'optional redemp tion on or after October 1, 2003, in annual principal installments ranging from
$120 to $465; and (2) $57,720 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 to
$6,690. The total debt service is $127,774 to maturity.
60,740 61,225 Electric Revenue Bonds, Issue.of 1994, TIC 5.69%, dated July 1, 1994, sold August 3, 1994 in the amount of $5,280 issued by Financing Authority for Resource Efficiency of California ("FARECal"). The remaining principal of $4,955, at rates ranging from-4.75% to 5.90% maturing serially July 1, 1997 through 2010 subject to optional redemption on or after July 1; 2004, in annual principal installments ranging fron $345 to $585. The total debt service is $6,602 to maturity.
4,955 5,280 Electric Revenue Bonds, Iue e of 1996, TIC 4.77%, dated October 1, 1996, sold October 31, 1996, in the amount of $95,395. The remaining principal of
$82,395'at rates ranging from 4.50% to 5.00%, maturing serially to October 1, 2007, in annual principal installments ranging from $10,045 to $13,565. The total-debt service is $96,452 to maturity.
82,395 95,395 Anaheim Public Financing Authority Revenue Bonds, Issue of 1998,.TIC 5.08%,
dated May 1, 1998, sold June 2, 1998 in the armount of $65,000 of which,
'(1) $36,180 serial bonds at rate of 4.75% to 5.00%-maturing from October 1, 2001 through 2020 in annual principal installment from $1,075 to $2,825;,and (2) $28,820 term bonds at rate-of, 5.00% maturing from October'1, 2023 through 2028 in annual principal installments from $3,305 to $4,300. The total debt service is $130,238 to maturity.
65,000 Total revenue bond debt 339,897 289,893
ANA-HE1M PUBLIC UTILITI'ES Long-term debt consists of the following:
June-30, 1998 June 30, 1997 Note payable to Internal Service Fund of the City, 8.95%, issued October 13, 1984, in the am6unt of $1,342, of which $977 was advance refunded on January 14, 1.993 at rate of 6.03%.. The remaining principal of $570, in annual principal installments ranging from $23 to $123 through October 31,,2003. The total-debt service is $672 to maturity.
570 674 Electric System Certificates of Participation (Combustion Turbine Peaking Plant),
TIC 7.31%, dated September 15, 1989, sold October 12, 1989 inthe amount of
$44,336, of which $25,395 was advance refunded on June 1, 1993. The remain ing principal of $16,550, at rates ranging from 6.80% to 7.20%, maturing through October 1, 2006 in annual principal installments ranging-from $2,330 to
$2,845. The total debt service is $16,629 to maturity.
16,550 18,730 Electric System Certificates of.Participation (Public Utilities Building), TIC 7.15%,
dated November 1, 1990, sold November 12, 1990 in the amount of $41,605, of which $40,240 was-advance refunded on June 1, 1993. The remaining princi pal of $965, at rates ranging from 6.30%to 6.50%, maturing through October 1, 2001 in annual principal installments ranging from $250 to $395. The total debt service is $1,068 to maturity.
965 1,150 Electric System Certificates of Participation, Issue of 1997, TIC 5.92%, dated May 1, 1997, sold May 13, 1997 in the amount of $25,000 issued by FARECal, of
-which (1) $9,755 at rates ranging from 4.50% to 6.00%, maturing serially' through April 1, 2015 in annual principal installments ranging from $375 to
$855, but the certificates maturing after April 1, 2012 are subject to optional redemption-on or after April 1, 2007; [2) $1 860 term certificates at rate of 5.50% mafuring through April 1, 2017 in annual principal installments ranging from $905 to $955; (3) $5,620 term certificates at rate of.5.625% maturing April 1, 2022 in annual principal installments ranging, from $1;005 to S 1,250; and(4) $7,410 term certificates at rate of 5:75% maturing through April 1, 2027 in annual principal installments ranging from.$1 405 to $1,575. The total debt service is $50,681 to maturity.
24,645 25,000 Total other debt
,.42,730 45,554 Total debt-382,627 335,447 Less current portion (18,607)
(17,740)
Less bond discounts (7,814)
(9,133)
Total long-term debt
$ 356,206
$ 308,574
ANAHEIlM PU.BLIC UTILITIES Electric Utility NOTES TO FINANCIAL STATEMENTS (in thousands)
Annual debt service requirements at June 30, 1998 to maturity are as follows:
Total Al Revenue Bond Debt Other Long-Term Debt l.ong-Term Fiscal Year Principal Interest Total Principal Interest T6tal Debt 1999 15,555 16,570 32,125
$ 3,052 1,541
$ 4,593
$.36,718 2000 19,327 16,319 35,646 813 1,420 2,233 37,879 2001 20,166 1-5,399 35,565 913 1,372 2;285 37,850 2002 19,718 14,466 34,184 3,386 1,334 4,720 38,904 2003 20,714 13,502 34,216 3,418 1,307 4,725 38,941 Thereafter 244,417
.141,465 385,B82 31,148 19,346 50,494 436,376.
$ 339,897
$ 217,721
$557,618
$42,730
( $ 26,320
$ 69,050
$ 626,668 Interest costs of $1,674-and $1,717 have been capitalized to utility plant for fiscal years ended June 30,'1998/1997, 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 June 30, 1998 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 outstandin( bonds within the next 12 months.
Restricted cash and investments include reserved amounts, as well as undisbursed bond proceeds at June 30 are as follows:
June 30, 1998 June 30, 1997 Held by fiscal agent Bond reserve fund
$ 16,725 16,725 Bond service fund 482 513 Bond construction fund 74,596 24,262 Decommissioning reserve 33,887 27,209 Held by City Treacisurer Bond service account 18,453 17,617 Renewal, and replacement account 25,619.
24,681 Decommissioning and fuel reserves.
23,395 20,275 Restricted projects 8,305-922 Restricted rebate 32 201
$ 201,494
$ 132,405 The Electric Utility's interest and other finance charges, except for capitalized interest, for the years ended June 30, 1998 and 1997, were $20,960 and $19,903, respectively.
- 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 bf 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 redction in-annual debt service durina the term of the issues.
ANAHEIM PU BLIC UTILlIT ElS Principal Amount Principal Outstanding at
'Amount Net Present Issue June 3.0, 1998 Refunded Value Savings 1993 APFA Bond refunding' 1989 Certificates of Participation.
$ 25,395
$ 25,395
$ 439 1990 Certificates of Participation 40,240 40,240
. 1,619
$ 65,635
$ 65,635
$ 2,058
- 9. PENSION PLAN It is the opinion of the City's legal counsel that the City-has The City contributes to the State of California Public no liability for losses under the plan but does have the duty Employees' Retirement System ("PERS"), an agent multiple-of due care that would be required of an ordinary prudent employer public employee retirement system that acts as a investor. The City believes it is unlikely that it will use the ernpleth claims ofloe generalen creditor ina thes future.
common investment and administrative agent for California assets to satisfy the claims of general creditors in the future.
cities which participate in this retirement plan.
The Small Business Job Protection Act of 1996 changed As a condition of participation, employees are required to.
Internal Revenue Code Section 457 by protecting participant contribute 7% of their annual compensation to PERS. The assets from creditors of a bankrupt or financially troubled City is required to contribute the remaining amounts neces-public jurisdiction. To effect this change, the employers must sary to fund PERS, using the actuarial basis recommended by comply with the provisions of the act by January 1, 1999, at the PERS actuaries and actuarial consultants and adopted by which time the City will implement CASB Statement No 32, the Board of Administration.
Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, which will The Electric Utility contributed $ 1,656 and $1,587 to PERS not have a material effect on the City's financial position.
Ifor the years ended June 30, 1998 and 1997, respectively.
normation is not available separately for the Electrics Utility EF R
R tcthe cost o benefits funded, the actuarially computedcpre-The Electric Utility is partof the City's self-insured workers' se nt value of vested and non-vested accumulated plan bene-,
compensation and general liability program. The liability for fits, the related assumed rates of return used,. and the actuari-such claims, including claims incurred but noteported, is allycomputed value of vested benefits over the related pen-transfer'red to the City in consideration of self-insurance pre sion fund assets. Refer to the City of Anaheim's Comprehensive
'miums paid by the'Electric Utility. Effective July 1, 1986, the Annual Financial Report for further information.
City became self-i nsured. Costs relating to the litigation of claims are charged to expense as incurred. n
- 10. DEFERRED COMPENSATION The City offers its employees a deferred compensation plan 1 2.. REFUNDS created in accordance with the Internal Revenue Code, Section Since fiscal year 1986, the Electric Utility has received 457. The plan,'availablet6'aII City employees, permits defdrral refunds from SCE totaling $1 39,066. These refunds have.
of a portion of an employee's salary until future years. The been plated in the RSA. At June 3, 1998, and 1997, total*
deferred-compensation is not.available to employees until ter-principal and interest in the RSA amounted to $11,901 and mination, retirement, death or a
$24-565,respectively. Although the City expectsemergency.
'a[ refunds, any additional amounts would be refunded to All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, andall income attributable to those amounts, property or rights are These refunds hav& ben reflected in the Electrh Utility's (until 'paid or made available to th-e employee or other benefi-financial statements as part'of the RSA.,
ciary) solIly the property and rights of the City, subject to-the claims of the City's general creditors. Participafts' rights
- 13. COMMITMENTS AND CONTINGENCIES under the plan are equal to those of general creditors of the Take or Pay Contracts City ih-an am6unt equal to the fair market value of the-The City has entered into agreements with the Intermountain deferred account for each participant.
Power Agency ("IPA"), a political subdivision of the State of t
ANAHEIM PUBLIC
.UTILITIES
-Electric Utility NOTES TO FINANCIAL STATEMENTS (in thousands)
Utah, Utah Power & Light ("UP&L") and the Southerr Capital Expenditures California Public Power Authority ("SCPPA"), a public intity The Electric Utility's'budget for fiscal 1998-99 provides for organized under the laws of the State of California. The City capital expenditures of approximately $32,663, of which has agreed with IPA and UP&L, pursuant to power sales con-
$27,267 is expected to be funded by bond proceeds and tracts, to purchase 13.225% of the-generation output of contributions in aid of construction.
IPAs 1,600 megawatt two-unit coal-fueled generating station (the "Station") in central Utah. Unit 1 of the Station became
- 14. ORANGE COUNTY RECEIVABLE available for commercial operation June 10, 1986. Unit 2 was On December 6, 1994, the County of Orange (the 'County")
commercially available May 1., 1987. Cost of construction of and the Orange County Investment Pools (collectively, the the Station and related transmission lines, including the.
"Pool") filed petitions under Chapter 9 of the United Sates Southern Transmission System ("STS") from'Utajh to Southern Bankruptcy Code. At the time of the bankruptcy, the City had California, was financed principally through sales of IPA's furcds invested inthe Pool. On May 2, 1995, the United power supply revenue bonds and payments in aid'of construc-States Bankruptcy Court approved a Comprehensve tion by 5CPPA. The City has agreed with SC PeA to p.urchase Settlement Agreement entered into by and among the County, rights to 17.6%. of. the transmission capacity-in the STS.
the Pool and a majority of the Pool articipants, of which the City was a part,- which allowed the City to recover approximate Banrutc Cod.ct Atsitt the timeaioo oftebnrplthe City had ly 80% of its investment in the Pool and allowed certain classes payments-solely from the revenues of the Electric Utility.
These payments, which are based on the City's share of IPAs of claims against the County (Settlement Secured Claims and
-debt service requirements and production costs and SCPPA's Repayment Claims) for the balance of its investment.
debt service requirements, began.in July 1986, the month in Subsequently, in late 1995, an agreement (the "Joint.
which' Unit. 1 of the Station and the STS began commercial Agreement") was proposed and later accepted by a majority operation. These payments will be considered a cost of pur-of thPool Participants, providing for a funding source and
_chased power..As of June 30, 1998, IPA has issued-settlement of the County bankruptcy, which allowed the
$5,000,000 in revenue bonds and revenue bond anticipatibn County to emerge from bankruptcy in May 1996. The Joint" notes to finance construction of the Station and SCPPA has Agreement provided that the Settlement Secured'Claims and issued $1,100,000 in revenue bonds and revenue bond
-Repayment Claims, which are impaired classes of claims a nticipatibn notes t6, finaie payments. in aid of cnstruction.
under the bankruptcy, would be madenonrecourse against the County, and would be paid only fror net litigation pro The Electric Utility's projected minimum payments for pur-n ore s
eCounty from third-party-defendants. In addition, under the next five years are as follows:
Joint Agreement, net litigation proceedsfrom pool-related lit 200 10145 igation would be distributed among the Pool Participants and 2001 105,265
-the County in-accordance with a comple forrsula. Th 2002i constructi
-County is pursuing proposed settlements with certain defen dantsthe proceeds of which Will be distributed pursuant to 2003 85,558 the terms of the Joint Agreeraeni.
The Joint Agreement pro Deregulation Legislation vided for the establishment of a 50,000 litigation fund to Recent state legislation requires open competition in the fur-
-pay litigation costs incurred in eool-related litigation.
-nishing of ele'ctricity to all retail customers by investor-owned utiitis bginingJanary198.
o peditio asto he At June 30, 1997, the Electric Utility's nonrecovered princi iglation wol bes ivstbut amn the Pool aticiptsn impact of this legislation on the municipal utility-has been' a aad fisi smeti h ol-mutdt I ncIuded in the fnacia
$4,103, was classified as a "County receivable" and was con Countye is puruin proposedn settlement withcertin dfen hsidered long-term in Agture. In the last several months, mul Litigation L
ntiple settlements with key litigants have been negotiated.
A number of claims and suits are pending against the Cityfor Which are subject to the approval of'the bankruptcy court.
alleged damages to paersons and property-and for other alleged Asa result of an analysisof-th6 recoverabilit' of the Orange liabilities arising out of matters sually incidental to the opera-County receivable from the liroceeds of proposed-and esti tion of a utility such as the electric systm of the City. In the mated future settlements, the Electric Utility has adjusted opinion-of managementv the-exposure under-thefe claims bthis amount from $4,103 to
$2,989.0 andpsuits would not materially affect the financial position ofo AJe017the Electric Utility as of June 30, 1998.prni pal baac-fisivsmn ntePo mutdt
ANAHEIM PUBLIC UTILITIES
'As the City's investment in the Pool was commingled for.
that the systems of other companies on which the Electric investment purposes, the receivable was allocated toall City Utility's systems rely will be converted timely in order to funds based on each fund's November 30, 1994 cash bal-.
avoid an adverse effect on the Electric'Utility. The City esti ance. The receivable (as adjusted) is reported as long-term.
mates that Year 2000 Issue project costs incurred during fis The outcome of the remaining pool-related litigation is not cal year 1997:98 were approximately $350, and that an determinable and, therefore, the ultimate collectibility of the additional commitment exists of approximately $1,500 for receivable cannot reasonably be estimated. However, in the the remaining information technology related projects, $500.
opinion of Electric Utility management, any nonrecovered to complete other operational systems related projects: The claims will not materially affect the financial position or oper-entire project is being funded through operating cash flows.
ations of the Electric Utility.
As of June-30, 1998, the Electric Utility was in the remedia
- 15. YEAR 2000 READINESS (UNAUDITED) tion, validation and testing stages of the project. Actual changes have been made to many of the affected systems, Certain older computer programs were written using two digits rather than four to define the applicable year. As a result, replacement of certain legacy systems to achieve X~ar 2000 those computer programs have time-sensitive software that recognize a date using "00" as the year 1900 rather than the t
a t
year 2000 (the "Year 2000 Issue"). This could cause a system the Electric Utility anticipates completing theYear 2000
-failure or miscalculations causing disruptions of operations, Issue projecf by June 30, 1999.
including, among other things, a temporary inability to process transactions or engage in other normal business activities.
The costs of the project and the date on which the Electric Utility believes it will comnplete the Year 2000 Issue modifica Management of the Electric Utility believes that the Year 2000 Issue will not pose significant operational problems for were derived utilizing numerous assumptions of future events, its computer systems. However, if software modifications and including the continued availability of certain resources, third Oconversions are not made, or are not completed timely, the party modification'plans and other factors. However, there can
-Year 2000 Issue could have a inaterial impact'on the opera tions of the Electric Utility. In addition, there is no guarante e actual results could differ materially from those anicipated.
Report of Independent Auditors To the Honorable City Council City of Anaheim, California We have audited the accompanying balance sheets of the Electric Utility Fund (the "Electric Utility") of the City of Anaheim, California, as of June 30, 1998 and J1 997, and the relatedstatements of income and 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 resonsibility is to express an opinion on these financial statements based on our audits.c 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 also includes assessing the accounting principles used and significant estimates made by-management, as well as eval-'
uating 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 June 30, 1998 and 1997, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles.
t IsOctober 2, 1998
Anaheim Public Utilities 201 South Anaheim Boulevard, Suite 1101 Anaheim, California 92805 714-765-5137 www.anaheimadvantage.com
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