ML062620418
| ML062620418 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 09/13/2006 |
| From: | Scherer A E Southern California Edison Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML062620418 (229) | |
Text
SOUTHERN CALIFORNIA EDISON'An EDISON INTERNATIONALI Company A. Edward Scherer Manager of Nuclear Regulatory Affairs September 13, 2006 U.S. Nuclear Regulatory Commission Attention:
Document Control Desk Washington, D. C. 20555
Subject:
Docket Nos. 50-361 and 50-362 Annual Corporate Financial Reports San Onofre Nuclear Generating Station Units 2 and 3
Dear Sir or Madam:
In accordance with the requirements of 10 CFR Part 50, Section 50.71(b) enclosed are copies of the annual financial reports for the licensees of the San Onofre Nuclear Generating Station, Units 2 and 3, who do not submit a Form 1 0-Q with the Securities and Exchange Commission or a Form I with the Federal Energy Regulatory Commission, the City of Riverside, California (for the fiscal year ending June 30, 2005);and the City of Anaheim, California (for the fiscal year ending June 30, 2005). Each report includes the appropriate certified financial statement required by Section 50.71(b).If you have any questions or need additional information regarding this matter, please feel free to contact me.Sincerely, Enclosures cc: B. S. Mallett, Regional Administrator, NRC Region IV N. Kalyanam, NRC Project Manager, San Onofre Units 2, and 3 C. C. Osterholtz, NRC Senior Resident Inspector, San Onofre Units 2 and 3 P.O. Box 128 San Clemente, CA 92672 949-368-7501 Fax 949-368-7575 f4o CITY OF RIVERSIDE, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2005 Prepared by the Finance Department Paul C. Sundeen, Chief Financial Officer 3900 Main Street, Riverside, California 92522 (951) 826-5660 This report was printed on recycled stock I-11 C-od *.N=mwmmwm
-I I-CITY OF RIVERSIDE COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30,2005 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of T ransm ittal ..............................................................................................................................
v GFOA Certificate of Achievement
.............................................................................................................
x Legislative and City Officials
..................................................................................................................
xi O rgan ization C hart ...............................................................................................................................
xi FINANCIAL SECTION Independent Auditor's Report ..................................................................................................................
1 Management's Discussion and Analysis ....................................................................................................
3 Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets ..............................................................................................................
19 Statement of Activities
..............................................................................................................
20 Fund Financial Statements:
Balance Sheet -Governmental Funds ................................................................................................
21 Reconciliation of the Balance Sheet of Governmental Funds to Statement of Net Assets ....................................
22 Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds .............................
23 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
...........................................................................................
24 Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual -General Fund .............
25 Statement of Net Assets -Proprietary Funds .......................................................................................
26 Statement of Revenues, Expenses and Changes in Fund Net Assets -Proprietary Funds ....................................
28 Statement of Cash Flows -Proprietary Funds .....................................................................................
29 Statement of Fiduciary Net Assets -Fiduciary Fund -Agency Fund ...........................................................
31 Notes to Financial Statements
...........................................................................................................
32 Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet -Nonmajor Governmental Funds ...................................................................
57 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Governmental Funds ..............................................................................................................................
60 Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual -Nonmajor Governmental Funds .............................................................................................................
63 Combining Statement of Net Assets -Nonmajor Enterprise Funds ............................................................
67 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets -Nonmajor Enterprise Funds ...........
69 CITY OF RIVERSIDE COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30,2005 TABLE OF CONTENTS Page FINANCIAL SECTION (CONTINUED)
Combining Statement of Cash Flows -Nonmajor Enterprise Funds ...........................................................
70 Combining Statement of Net Assets -Internal Service Funds ..................................................................
73 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets -Internal Service Funds ................
74 Combining Statement of Cash Flows -Internal Service Funds ..................................................................
75 Combining Statement of Changes in Assets and Liabilities
-Fiduciary Fund ................................................
77 Capital Assets Used in the Operation of Governmental Funds: Schedule by Source ..............................................................................................................
79 Schedule by Function and Activity ............................................................................................
80 Schedule of Changes by Function and Activity ..............................................................................
81 STATISTICAL SECTION Table 1 General Governmental Expenditures by Function -Last Ten Fiscal Years ...................................................
83 2 General Governmental Revenues by Source -Last Ten Fiscal Years ..........................................................
84 3 General Governmental Tax Revenues by Source -Last Ten Fiscal Years .....................................................
85 4 Property Tax Levies and Collections
-Last Ten Fiscal Years ...................................................................
86 5 Assessed and Estimated Actual Value of Taxable Property -Last Ten Fiscal Years .........................................
87 6 Property Tax Rates -Direct and Overlapping Governments
-Last Ten Fiscal Years ........................................
88 7 Computation of Direct and Overlapping General Obligation Debt ............................................................
89 8 Computation of Legal Debt Margin for City General Obligation Bonds .......................................................
90 9 Ratio of Net General Obligation Bonded Debt to Assessed Value and Bonded Debt per Capita -Last Ten Fiscal Y ears .................................................................................................................................
91 10 Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures
-Last Ten Fiscal Years ..........................................................................................
92 11 Revenue Bond Coverage -Last Ten Fiscal Years .................................................................................
93 12 Special Assessment Collections
-Last Ten Fiscal Years .........................................................................
94 13 Principal Taxpayers
...................................................................................................................
95 14 Miscellaneous Statistical Data .......................................................................................................
96 15 Demographic Statistics
-Last Ten Fiscal Years ....................................................................................
98 16 Construction, Bank Deposits, and Property Value -Last Ten Fiscal Years ...................................................
99 CITY O September 30, 2005 To the Honorable Mayor, Members of the City Council and Citizens of the City of Riverside:
It is our pleasure to submit the Comprehensive Annual Financial Report (CAFR) of the City of Riverside (the City) for the fiscal year ended June 30, 2005.This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement.
As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.The City's financial statements have been audited by McGladrey
& Pullen, LLP, a firm of certified public accountants.
The independent auditor concluded, based on the audit, that there was a reasonable basis for rendering an unqualified opinion on the City's financial statements for the fiscal year ended June 30, 2005. The independent auditor's report is presented as the first component of the financial section of this CAFR.The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies.
The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on internal controls and compliance with legal requirements, with emphasis on those involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report.V Management has provided an overall analysis of the financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors.Profile of the City of Riverside The City of Riverside, incorporated on October 11, 1883, is located in the western portion of Riverside County about 60 miles east of Los Angeles. The City currently occupies a land area of 85.6 square miles.The City operates under the council-manager form of government, with a seven-member council elected by ward for four-year overlapping terms. The mayor is elected at large for a four-year term and is the presiding officer of the Council, but does not have a vote except in the case of a tie. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager, City Attorney and City Clerk. The City Manager is responsible for carrying out the policies and ordinances of the Council, for overseeing the day-to-day operations of the City, and for appointing the heads of various departments.
The Council is elected on a non-partisan basis.The City provides a full range of services which include general government, public safety (police, fire, disaster preparedness and building inspection), construction and maintenance of highways and streets, economic development, culture and recreation, electric, water, airport, refuse, sewer, and senior citizen/handicap transportation.
In addition to general City activities, the Council is financially accountable for the Riverside Redevelopment Agency, Riverside Public Financing Authority and the Riverside Municipal Improvements Corporation; therefore, these entities are included as an integral part of the City's financial statements.
Additional information on these legally separate entities can be found in Note 1.A in the notes to the financial statements.
The annual budget serves as the foundation for the City's financial planning and control. The City Manager presents the proposed budget to the City Council for review at least thirty-five calendar days prior to the beginning of each fiscal year. The Council is required to hold public hearings on the proposed budget and to adopt a final budget no later than June 30, which is the close of the City's fiscal year. The appropriated budget is prepared by fund and department.
Department heads may make transfers of appropriations within a department.
Transfers of appropriations between departments, however, require the approval of the Council.Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on page 25 as part of the basic financial statements for the governmental funds. For governmental funds other than the general fund, with appropriated annual budgets, this comparison is presented in the governmental fund subsection of this report, which begins on page 63.vi Local economy. The City is located in the Inland Empire, which consists of Riverside and San Bernardino Counties.
The population of the Inland Empire at 3.66 million people is larger than 21 states. The City leads the Inland Empire in most measures of economic power, including population, income, employment, bank deposits, assessed valuations, office space and college enrollment.
The population of the City is 285,537, which places the City as the seventh largest in Southern California behind the City of Bakersfield.
The Inland Empire has a very strong economic environment, as does the City. This area is expected to add about 30,000 jobs during calendar year 2005. The City owned electric utility gives it a competitive advantage at this time when energy costs and reliability are issues. Riverside's challenges include a lack of available space for manufacturing and industrial development within its current boundaries.
America's Most Livable Communities Award was conferred upon the City of Riverside in 2004. This award is conferred once each decade to those communities whose innovations have brought vitality and growth to their regions, a marked improvement in the quality of life, and are taking major strides to prepare for the new global economy.Grubb and Ellis, a national real estate broker, ranked the Riverside metro area as one of the top five in all four national markets (retail, office, industrial and apartment) in their 2003 Global Forecast:
U.S. Market Strength Forecast 2002-2007.
Priorities for the future: A Citywide Strategic Planning document has been developed through a series of meetings, workshops, and surveys with the community, elected officials, and City employees.
The plan, as updated, sets forth four goals as follows:* Economic Development" Growth and Annexation
- Transportation
- Liveable Communities and Neighborhoods Long-term financial planning.
Annually, the City updates a six (6) year capital improvement program; planned capital expenditures during fiscal years 2004/2005 through 2009/2010 (except for the Park and Recreation Department which only plans projects as funds become available) total $402 million, a 6% decrease over the prior 6 year plan. Electric, Water and Sewer fund projects make up 63%of the $402 million, while transportation-related projects (traffic signal and streets) comprise 19 percent. Major inputs to the CIP include a new power generation plant (the second for the City), the major and minor street rehabilitation and construction program, recurring and system improvements to the electric program, water and main replacements, sewer plant primary system upgrade, and Agricultural Park cleanup.Vii Cash management policies and practices.
Cash temporarily idle during the year was invested principally in federal agency securities and the State of California Local Agency Investment Fund. The maturities of the investments do not exceed five (5) years, with the average maturity not exceeding three (3) years. All securities are held in third party safekeeping by Union Bank of California as agent for the City. The money market sweep account is held by Bank of America. All transactions originated and authorized by the City are transacted on a delivery versus payment (DVP) basis in order to perfect delivery.
The average yield on the investments was 2.77% for the fiscal year.Risk management.
Risk exposures to the assets of the City are managed through a combination of self-insured retention and insurance coverage.
The City believes they have current assets adequate to cover the actuarially determined liability for general liability and workers' compensation claims, including estimated claims incurred but not reported.
The City maintains excess liability insurance to provide coverage beyond a self-insured retention of $3,000,000 per occurrence for general liability and $4,000,000 for workers' compensation.
Pension benefits.
The City provides pension benefits for all employees through a statewide plan managed by the California Public Employees Retirement System (CalPERS).
The City has no obligation in connection with employee benefits offered through this plan beyond its annual contractual payment to CalPERS. Additional information on the plan can be found in Note 13 in the notes to the financial statements.
Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Riverside for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2004. This was the eighteenth consecutive year that the City has received this prestigious award. The City received this award for publishing an easily readable and efficiently organized CAFR that satisfied both GAAP and applicable legal requirements.
This award is valid for a period of one year only. We believe that our current CAFR continues to meet the Program's requirements and we are submitting it to the GFOA again this year.The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department, particularly the leadership of Brent Mason, Assistant Finance Director and Laura Nomura, Controller.
We would like to express our appreciation to all members of the Department who assisted and contributed to its preparation.
Credit also must be given to the Mayor and the City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City's finances.viii Respectfully submitted, City Manager Paul C. Sundeen Assistant City Manager/CFO/Treasurer ix Certificate of Achievement for Excellence in Financial Reporting Presented to City of Riverside, California The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Riverside for our Comprehensive Annual Financial Report for the fiscal year ended June 30, 2004.For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2004 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards.
Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only.We believe our current report continues to conform to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate.
a'-7 Pre siden President Executive Director x ORGANIZATION CHART LEGISLATIVE OFFICIALS city Council&Mo mew I City Clerk I-Ronald 0. Loverldge
.............................................
Mayor Doa Betro ................................
Councilmember-Ward i Ameal Moore ............................
Councilmember-Ward 2 Art Gage ...................................
Councilmember
-Ward 3 Frank Schiavone
...........
Councilmember
-Ward 4 Ed Adkison ...............................
Councilmember
-Ward 5 Nancy Hart ...............................
Councilmember-Ward 6 Steve Adams .............................
Councilmember
-Ward 7 CITY OFFICIALS Bradley J. Hudson ...................................
City Manager*Michael Beck ...............................
Assistant City Manager Tom DeSantis ..............................
Assistant City Manager Paul C. Sundeen ...................
Assistant City Manager/CFO Colleen J. Nicol ..............................................
City Clerk*Gregory P. Priamos ....................................
City Attorney*Tom Boyd .................................................
City Engineer Russ Leach ..............................................
Chief of Police Steve Reneker ...........................
Chief Information Officer Scott Barber .................
Community Development Director Belinda Graham .............................
Development Director Tedd Laycock ..................................................
Fire Chief Kris Martinez .................
Interim General Services Director Rhonda Strout ............
Interim Human Resources Director Judith Auth .............................................
Library Director Vince Moses ..........................................
Museum Director Ralph Nuflez .........................
Park and Recreation Director David Wright ................................
Public Utilities Director Siobhan Foster ...................
Interim Public Works Director*Appointed by City Council Note: All department heads officially report to the City Manager xi II II --0 McGladrey&
Pullen Certified PRubi Accountants Independent Auditor's Report The Honorable Mayor and Members of the City Council City of Riverside Riverside, California We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Riverside, California, (the City) as of and for the year ended June 30, 2005, which collectively comprise the City's basic financial statements, as listed in the table of contents.
These financial statements are the responsibility of the City's management.
Our responsibility is to express opinions on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinions.In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Riverside, California, as of June 30, 2005, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the general fund for the year then ended, in conformity with accounting principles generally accepted in the United States of America.In accordance with Government Auditing Standards, we have also issued our report dated September 30, 2005 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.The Management's Discussion and Analysis, as listed in the table of contents, is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.McGladrey
& Pulen, LLP Is a member firm ofRSM Intemadonal, an affilation of separate and Independent legal entities.1 Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements.
The combining and individual nonmajor fund financial statements and other schedules, listed in the table of contents as supplementary information, are presented for purposes of additional analysis and are not a required part of the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.The accompanying introductory and statistical sections, as listed in the table of contents, are presented for the purpose of additional analysis and are not a required part of the basic financial statements.
This information has not been subjected to the auditing procedures applied In the audit of the basic financial statements and, accordingly, we express no opinion on it.Riverside, California September 30, 2005 2 Management's Discussion and Analysis As management of the City of Riverside (the City), we offer this narrative overview and analysis of financial activities for the fiscal year ended June 30, 2005. We encourage readers to consider the information presented here in conjunction with additional information furnished in our letter of transmittal, which can be found on page v. of this report. All amounts, unless otherwise indicated, are expressed in thousands of dollars.Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City's basic financial statements, compromised of three components:
- 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains certain supplementary information.
Government-wide financial statements.
The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business.The statement of net assets presents information on all of the City's assets and liabilities, with the excess of assets over liabilities reported as net assets. Over time, increases or decreases in the net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business type activities).
The governmental activities of the City include general government, public safety, highways and streets, and culture and recreation.
The business type activities of the City include Electric, Water, Sewer, Refuse, Public Parking, Airport and Transportation services.3 The government-wide financial statements include the City and it's component units. The City's component units are the Riverside Redevelopment Agency, Riverside Public Financing Authority, and the Riverside Municipal Improvements Corporation.
Although legally separate, these entities function for all practical purposes as departments of the City and therefore have been blended as part of the primary government.
Both the Governmental Activities and the Business Type Activities are presented on the accrual basis of accounting, a basis of accounting that differs from the modified accrual basis of accounting used in presenting governmental fund financial statements.
Note 1.C. of the Notes to the Basic Financial Statements fully describe these bases of accounting.
Proprietary funds, discussed below, also follow the accrual basis of accounting.
The government-wide financial statements can be found on pages 19-20 of this report.Fund financial statements.
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives.
The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
All of the funds of the City can be divided into three categories:
governmental, proprietary, and fiduciary.
Governmental funds. Governmental funds are used to account for the same functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year.It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements.
Reconciliations to facilitate this comparison are provided for both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances.
The major reconciling items relate to capital assets and debt. In the Governmental Funds, acquisitions of capital assets are treated as"expenditures" because upon purchase of a capital asset, cash used for the acquisition is no longer available for other purposes.
The issuance of debt provides cash, which is now available for specified purposes.
Accordingly, at the end of the fiscal year, the unreserved fund balances of the Governmental Funds reflect spendable resources available for appropriation by the City Council.Spendable balances are not presented on the face of the government-wide financial statements.
The City maintains seventeen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund and the Redevelopment Agency Debt Service Fund, both of which are major funds. Data from the other fifteen governmental funds are 4 combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and can be found on pages 57-66 in this report.The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided to demonstrate compliance with this budget.The basic financial statements can be found on pages 19-55 of this report.Proprietary funds. The City maintains two different types of proprietary funds, enterprise and internal service funds. Enterprise funds are used to report the same functions presented as business type activities in the government-wide financial statements.
The City uses enterprise funds to account for Electric, Water, Sewer, Refuse, Parking, Airport and Transportation services.
Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions.
The City uses internal service funds to account for self-insured insurance programs, central stores and its fleet of vehicles.
Because these services predominantly benefit governmental rather than business type functions, they have been included within governmental activities in the governuent-wide financial statements.
Internal service funds are presented as proprietary funds because both enterprise and internal service funds follow the accrual basis of accounting.
Proprietary funds provide the same type of information as the government-wide financial statements (business type activities), only in more detail. The proprietary fund financial statements provide separate information for the Electric, Water and Sewer operations, all of which are considered to be major funds of the City. The four remaining proprietary funds noted above are combined into a single, aggregated presentation.
All internal service funds are also combined into a single, aggregated presentation in the proprietary fund financial statements.
Individual fund data for the non-major proprietary funds and the internal service funds is provided in the form of combining statements and can be found on pages 67-71 in this report.The basic proprietary fund financial statements can be found on pages 26-30 of this report.Agency funds. Agency funds are used to account for situations where the City's role is purely custodial.
Agency funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City's own programs.
All assets reported in Agency funds are offset by a liability; the accrual basis of accounting is used to recognize receivables and payables.The Agency fund financial statement can be found on page 31 of this report.Notes to the financial statements.
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements begin on page 32 of this report.5 Government-wide Financial Analysis The following table presents a summarization of the City's assets, liabilities and net assets for its governmental and business type activities.
As noted earlier, a government's net asset position may serve over time as a useful indicator of its fimancial position.Governmental Business type Activities Activities Total 2005 2004 2005 2004 2005 2004 Current and other assets $571,535 $483,015 $ 396,346 $453,186 $ 967,881 $ 936,201 Capital assets, net 543,970 507.243 809,277 693,448 1,353.247 1.200.691 Total assets 1,115,505 990,258 1,205.623 1.146.634 2,321.128 2.136.892 Current liabilities 72,940 60,284 87,797 85,075 160,737 145,359 Long-term liabilities 418,673 349.417 431,447 453,514 850,120 802,931 Total liabilities 491,613 409,701 5 538.589 1,010,857 948,290 Net assets: Invested in capital assets, net of related debt 515,354 484,784 402,377 341,041 917,731 825,825 Restricted 154,957 137,126 54,540 49,242 209,497 186,368 Unrestricted (46.419) 229,462 217.762 183.043 176,409 Total net assets S623.822 $580.557 S6§.32 60.02 $1,188.602 The City's assets exceeded liabilities by $1,310,271 at June 30, 2005, an increase of $121,669 from June 30, 2004.By far the largest portion of the City's net assets (70 percent) reflects its investment in capital assets (i.e., land, buildings, machinery, equipment and infrastructure), net of any related debt that is still outstanding used to acquire those assets and net of unspent bond proceeds and cash held in bond reserve accounts.
The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.An additional portion of the City's net assets (16 percent) represents resources that are subject to external restrictions on how they may be used. The remaining unrestricted net assets (14 percent) may be used to meet the government's ongoing obligations to citizens and creditors.
Of this amount, $229,462 is held by the business type activities; the governmental activities reflect a negative $46,419.The Riverside Redevelopment Agency (the Agency), a blended component unit of the City, represents
$116,932 of negative 6 unrestricted net assets for 2005 and was a negative $108,865 in the prior year. The remaining governmental activities of the City have positive unrestricted net assets of $70,513 in 2005 and $67,512 in 2004, mostly attributable to the City's General Fund.The Agency exists to finance improvements that serve to remediate blight within the City. Often these activities do not result in a residual asset, but rather underwrite the cost of a development activity deemed beneficial in meeting the Agency's objectives.
The resulting statement of net assets reflects the debt obligation to be repaid through future tax revenues, without an offsetting asset.While this is the routine functioning of such an entity, when blended with the City, its negative unrestricted net assets causes the governmental activities to report a negative position.The government's total net assets increased by $121,669 during the current fiscal year, which reflects the growth in both the governmental
($43,335) and business type ($78,334) activities.
This is primarily due to continued investment by the City in its infrastructure, which is largely funded by grants and dedicated revenue sources. Lastly, business type unrestricted assets grew based on municipal service charges for service exceeding the current years operating expenditures.
The following condensed summary of activities of the City's governmental and business type operations for the period ended June 30, 2005 shows total net assets increasing by $121,669.
The prior fiscal year is also presented for comparative purposes.
Also included in the following analysis are revenue and expense graphs to aid the reader in their understanding of the results of the current year's activities.
7 Governmental Business Type Activities Activities Total 2005 2004 2005 2004 2005 2004 Revenues: Program Revenues: Charges for services $ 63,087 $ 57,001 $327,032 $304,911 $ 390,119 $ 361,912 Operating Grants and Contributions 16,140 12,935 2,261 1,723 18,401 14,658 Capital Grants and Contributions 5,292 1,136 32,317 26,390 37,609 27,526 General Revenues: Sales taxes 53,348 46,624 -53,348 46,624 Property taxes 61,553 39,211 -61,553 39,211 Other taxes and fees 32,237 41,364 -32,237 41,364 Grants and contributions not restricted to specific programs 15,220 18,710 -15,220 18,710 Other 13,571 6,760 14,910 9,569 28,481 16,329 Total revenues 260,448 223,741 376,520 342,593 636.968 566,334 Expenses: General government 69,520 63,000 -69,520 63,000 Public safety 105,131 102,500 105,131 102,500 Highways and streets 17,983 22,017 17,983 22,017 Culture and recreation 23,512 22,988 23,512 22,988 Interest on long-term debt 15,885 10,996 -15,885 10,996 Electric -200,030 196,727 200,030 196,727 Water -36,709 33,921 36,709 33,921 Sewer -26,108 23,273 26,108 23,273 Refuse -12,841 11,510 12,841 11,510 Airport -1,185 1,088 1,185 1,088 Transportation
-2,557 2,286 2,557 2,286 Public Parking --824 1.389 824 1,389 Total expenses 232,031 221,501 280,254 270,194 512.285 491,695 Increase in net assets before Special item and Transfers 28,417 2,240 96,266 72,399 124,683 74,639 Special item -canal abandonment
-(3,014) -(3,014)Transfers 14,918 10.302 (14.918) (10.302_ -Increase in net assets 43,335 12,542 78,334 62,097 121,669 74,639 Net assets -beginning 580.557 568.015 608.045 545.948 1.188.602 1.113.963 Net assets -ending 62390 $686.379 6i0 8 Governmental activities.
Governmental activities increased the City's net assets by $43,335, accounting for 36 percent of the total growth in net assets. The net assets in the prior fiscal year increased by $12,542. Key elements of this year's activity in relation to the prior year are as follows:* Charges for services increased by approximately
$6,000 primarily as a result of increased revenues from building and related fees from new development within the City." Operating and capital grants and contributions increased approximately
$7,400 in 2005 primarily due to increased grant funding for capital projects, public safety items, and housing projects." Sales and property taxes increased approximately
$29,000 in 2005, principally because of the strong local economy and the expansion of redevelopment project areas and activities, plus the reclassification of vehicle licenses fees, as described below.* Other taxes and fees decreased about $9,000 because the majority of vehicle license fee revenue is now received in the form of property taxes." Other revenues increased approximately
$6,800 mainly due to an increase in investment income resulting from an unrealized market value adjustment required for financial statement reporting purposes." While significant variances between years exist for the various expense functions, the total net increase was approximately
$11 million. The more significant items are: (1) increased salaries and benefits, coupled with costs associated with substantial technological improvements and increased training for police officers; (2) increased interest expense arising from the issuance of$75,400 of new debt (net of debt refinancing and bond premiums) during 2005; and (3) increased costs associated with capital projects and development activities.
These increases are partially offset by a decrease in depreciation expense in the current year in the highways and streets category due to an adjustment in fiscal year 2004 associated with a new accounting pronouncement." Transfers to governmental funds increased
$4,616 primarily due to increased operating revenue realized by the Electric and Water funds (transfers are a percentage of gross revenues, as defined).9 Expenses and Programs Revenues -Governmental Activities
-Fiscal Year Comparison 2005 vs. 2004$120,000$100,000$80,000$60,000$40,000$20,000$0 General Public safety Highways and Culture and Interest on government streets recreation long-term debt 10 Revenues by Source -Governmental Activities
-Fiscal Year Comparison 2005 2004 Operating grants and contributions 6%Capital grants and contributions 2%Operating giants and contribuio6%
n Capital grants and contributions 1%Property taxes K 16%Charges for services 24%Property taxes 24%Charges for services 26%Grants and contributions not restricted to specific programs 6%Miscellaneousj
-Investment incomeI Ivsm3% mcm Utility Franchis-J users taxes Francies Intergovernmental, Prue rs 2%unrestricted 1%1%Grants and contributions not restricted to specific programs 8%Miscellaneous 2%%Investment income I% % _Other unresricted 1%6%es taxes 21%Franchise taxes I 2S Utility users taxes 10%/0 11 Business type activities.
Business type activities increased the City's net assets by $78,334, accounting for 65 percent of the total growth in net assets. The change in net assets of business type activities increased from the prior fiscal period by $16,237. Key elements of this year's increase in relation to the prior year are as follows: " In 2005, charges for services increased
$22,121 to $327,032 from $304,911 in 2004 primarily due to an increase in the volume of electric and water sales, in conjunction with a 2.2% electric rate increase and an 8.5% water rate increase.* Capital grants and contributions increased
$5,927 in the current year to $32,317 from $26,390 in the prior year. The increase is mainly due to contributions in aid related to a CALTRANS project." Other general revenues increased due to an increase in investment income due to an unrealized market value adjustment required for financial statement reporting purposes and the sale of surplus land." Although operating revenues in the Water fund increased, capital grants and contributions decreased, leading to an overall decrease in program revenues in this fund." The total net increase in expenses in Business type activities was approximately
$10 million. Significant items include: increases in personnel and public benefits expenses in the Electric fund; increased maintenance and repair of the City's water mains, and;increased personnel and operational costs associated with the Sewer and Refuse funds.Expenses and Program Revenues -Business Type Activities
-Fiscal Year Comparison 2005 vs. 2004$275,000 S16,000 S250,000-
$15,000 0'05 Expenses S14,000 S225,000 -'04 Expenes $13,000 AO0 Expenses S ,.P r m v sS12,000 M'04 Expenses$200,000 Program revenues $11,000 '06 Program revenues S175,000-12'04 Program revenus $101,000 I 1'04 Program revenues$150,000 -S9,000$125,000-
$7,000'$100,00 $60000$7$5,000 iii: i, ', $4,000 ;$50,000 $3,000$25,00 $2,00$1,9000$Soltri 1ater A cwer Retua -i4r rasotdo a Electric Water Sewer 12 Refuse Airport Treasportation P~arig Revenues by Source -Business Type Activities
-Fiscal Year Comparison 2005 2004 Operating grants and contributions 1%Capital grants and contributions 90/0 Operating grants and contributions 1%Charges for service 87%kInvestment Income Miscell ous 1%Charges for services 890/0 Capital grants and contributions 8%Investmnt income 1%-Misc~ellaneous IV1%13 Financial Analysis of the City's Funds Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources.
Such information is useful in assessing the City's financing requirements.
In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.The following table sunmarizes the balance sheet of the City's General Fund, Redevelopment Debt Service Fund, and Total Governmental Funds. As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements.
General Fund 2005 2004 S 55.849 S 58,151 Total assets Total liabilities Redevelopment Debt Service 2005 2004 S27,61 $28.139 13,499 11,517 13,499 11,517 122" ~ a Total Governmental Funds 2005 2004 S!26.757 S117,833 Fund balances Reserved Unreserved Total Total liabilities and fund balances 44,487 153,753 S209,602 17,268 117,259 134.527 S 19Z67 92,164 223,487 315,651 i42.A08 52,445 227,160 279,605 L3ULM3 As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $315,651, an increase of $36,046 in comparison with the prior year. About 29% of this amount ($92,164) is reserved to indicate funds are not available for new spending because it has already been committed for a variety of restricted purposes.
The remainder of the fund balance is unreserved, meaning it is available for spending at the City's discretion.
Of that amount, $184,348 has been designated for specific capital projects and economic contingencies, leaving $39,139 without a commitment; at June 30, 2004 the comparable amount was $40,728. The decrease in uncommitted, unreserved fund balance is due principally to an increase in the amount designated for specific capital projects.The General Fund is the principal operating fund of the City. At the end of the current fiscal year, the unreserved fund balance was$109,266, of which $92,993 was designated for future operations, economic contingencies and liability insurance, leaving $16,273 unreserved and undesignated; at June 30, 2004 the comparable number was $15,693. The General Fund realized higher than 14 anticipated taxes and permit fees due to continued significant development within the City, which resulted in the General Fund not having an operating deficit, exclusive of capital expenditures, as originally anticipated.
The total fund balance reached $153,753, an increase of $19,226 over the prior year.The Redevelopment debt service fund has a total fund balance of $13,499, all of which is reserved for the payment of debt service. A net increase in the fund balance occurred during the current year ($1,982) mainly due to the issuance of new bonds.Proprietary funds. The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.Unrestricted net assets of the Electric, Water and Sewer operations at the end of the year amounted to $118,880, $15,870, and$69,795, respectively.
The total growth in net assets for these funds was $57,454, $5,141 and $3,478, respectively, demonstrating the adequacy of the current rate structure for these funds.General Fund Budgetary Highlights Final budgeted revenues increased from the amount originally budgeted to the final as a result of grant related programs.Total budgeted expenditures increased from $238,648 to $270,370 or $31,722. The increases can be generally summarized as follows: o The General Services department added appropriations of $4,900 for construction of the Magnolia Street Police Precinct and other City-wide capital improvement projects.o The Police department added appropriations of $13,000 primarily for grant funded operational charges as well as negotiated salary and benefit increases.
o The Fire department added appropriations of $5,400 primarily for grant funded operational charges as well as negotiated salary and benefit increases.
u The Park and Recreation department added appropriations of $3,900 primarily for grant funded improvement projects.o Other miscellaneous appropriations were added in other departments throughout the year of approximately
$4,500.15 Actual amounts differed from those budgeted as follows: o Actual total revenues were more than the amount budgeted principally as a result of greater than anticipated development activity and sales and property taxes associated therewith.
u Budgeted expenditures exceeded actual amounts by $78,000. As in prior years, the principal reason is associated with capital projects not completed at year-end.
Such projects and related amounts are continued to the next fiscal year.u Other financing sources (uses) exceeded the final amount budgeted by $54,232. The major event causing this variance is the issuance of $60 million of pension obligation bonds to fund the unfunded actuarial accrued liability (UAAL) associated with the City's miscellaneous employees.
o The net effect of all of the above was a favorable variance from the amounts budgeted of 107,219.Capital Asset and Debt Administration Capital assets. The City's investment in capital assets for its governmental and business type activities as of June 30, 2005 amounted to $1,353,247 (net of accumulated depreciation).
This investment includes land, buildings and improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the City's net investment in capital assets for the current fiscal year was $152,556 ($36,727 for governmental activities including internal service funds and $115,829 for business type activities).
Major capital improvements during the current fiscal year included:
new infrastructure, consisting primarily of street improvements
($27,462);
Riverside Canal ($8,415);
replacement of the water transmission main at the 60/215 interchange
($4,160);
Sewer department upgrades ($12,456), Electric Utility upgrades ($32,464);
and Water Utility system upgrades ($20,446).
Construction in progress totaled $172,136 at June 30, 2005. Some of the major projects in process are the Riverside Energy Resource Center, the downtown power upgrade project, the water system expansion, an upgrade to the electric distribution system, the Magnolia Street Police Precinct, the Janet Goeske Center and the Airport Fire Station. Depreciation expense during the fiscal year was $18,039 for governmental activities and $27,420 for business type activities.
16 City of Riverside's Capital Assets (net of depreciation)
Governmental Activities Business Type Activities Total Land Buildings Improvements other than Buildings Machinery and equipment Inftastructure Construction in progress Total 2005$124,475 42,933 20,303 12,176 304,812 39,271 S54U97 2004$116,925 52,826 20,675 12,883 286,789 17,145 S507,241 2005$ 31,262 140,513 492,804 11,833 1309286 2004$ 32,725 135,062 2005$ 155,737 183,446 449,683 513,107 9,074 24,009-304,812 66904136$12144a 2004$ 149,650 187,888 470,358 21,957 286,789 84,049 SI1200.691 Additional information on the City's capital assets can be found in note 5 on page 40 of this report.Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of $850,120, which includes bonded debt of$789,501.City of Riverside's Long-Term Debt Governmental Activities Business Type Activities Total Lease/Revenue Bonds General Obligation Bonds Pension Obligation Bonds Certificates of Participation Notes Payable Capital Leases Compensated Absences Water Acquisition Rights Total 2005$144,024 20,280 148,280 57,336 10,645 7,431 30,677 2004$131,590 20,285 89,540 58,706 11,057 8,938 29,301$3492417 2005 2004 2005$419,581 $440,970 $563,605 S- 20,280 S- 148,280 S- 57,336 10,459 11,066 21,104 392 439 7,823-30,677 5L039 1O15$431,447 $85S4 g0,120 2004$572,560 20,285 89,540 58,706 22,123 9,377 29,301 1.039 17 The City's total debt increased by $47,189 (6 percent) during the current fiscal year due to the issuance of $60,000 in Pension Obligation bonds and $25,693 in Redevelopment Agency debt; these were offset by scheduled debt service payments.The City's Electric and Water Utilities maintain an "A+" and "AA-", respectively, from Standard & Poors and Fitch for their revenue bonds. The City's general obligation bond ratings are "AA-" and "AA".State statutes limit the amount of general obligation debt a governmental entity may issue to 15 percent of its total assessed valuation.
The legal debt margin for the City is $1,880,200, after deducting the general obligation debt of $220,710.Additional information on the City's long-term debt can be found in note 7 beginning on page 41 of this report.Economic Factors and Next Year's Budget and Rates El The assessment roll for the City increased 9.8% between fiscal year 2004 and fiscal year 2005.O Property taxes increased between fiscal year 2004 and 2005 by 58.4% primarily as a result of the State's swapping of Property Tax revenue for Vehicle License fees as well as new development and the expansion of redevelopment activity.O Employment in Riverside County is 3.4% over the prior year and unemployment is down to 5.9% as compared to 6.2% for 2004.E The required contribution rates as a percentage of payroll for the City's retirement program, including the employee portion which is paid by the City, will be changing effective July 1, 2006 as follows: " Miscellaneous Plan -22.80% to 22.89%" Safety Plan -27.41% to 30.54%At the time of budget preparation for fiscal year 2006, the economic outlook for the City was considered to be very good. The General Fund Budget for fiscal year 2006 of $192 million contemplates the use of approximately
$7 million of the beginning fund balance.Request for information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances.
Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City Manager's Office, Finance Division, 3900 Main Street City of Riverside, CA 92522.18 City of Riverside Statement of Net Assets June 30, 2005 (amounts expressed In thousands)
Governmental Assets Activiies Cash and investments
$ 218,094 Receivables, net 55,546 Inventory 4,743 Nuclear material Inventory Prepaid items 4,535 Deferred charges 126,310 Internal balances 18,752 Land and improvements held for resale 6,386 Restricted assets: Cash and cash equivalents Cash and investments at fiscal agent 110,019 Other Capital leases receivable 27,150 Land and other capital assets not being depreciated 163,746 Capital assets (net of accumulated depreciation) 380,224 Total assets 1,115,505 Liabilities Accounts payable and other current liabilities Accrued interest payable Unearned revenue Deposits Current liabilities payable from restricted assets Claims and judgments payable Decommissioning liability Landfill capping Noncurrent liabilities:
Due within one year Due In more than one year Total liabilities Net Assets Invested in capital assets, net of related debt Restricted for Capital projects Debt service Other purposes Programs Unrestricted Total net assets 21,165 4,059 1,540 28,627 17,549 20,844 397.829 491,613 515,354 118,309 8,442 28,206 (46,419)$ 623,892 Business-type Activities
$ 170.199 47,699 1,311 6,631 58,538 (18,752)61,455 68.661 606 164,127 645,150 1,205,623 31,406 502 3,964 4,172 44,030 3,723 23,037 408,410 519,244 402,377 46,459 3,217 4,864 229,462$ 686,379 Total 388,293 103,245 4,743 1,311 11,166 184,846 6,386 61,455 178.680 606 27,150 327,873 1,025,374 2,321,128 52,571 4,059 2,042 32,591 4,172 17,549 44,030 3,723 43,881 806,239 1,010,857 917,731 118,309 54,901 31,423 4,864 183,043$ 1,310,271 19 The notes to the financial statements are an integral part of this statement.
City of Riverside Statement of Activities For the fiscal year ended June 30,2005 (amounts expressed In thousands)
Not (Expense)
Revenue and Changes In Net Assets Program Revenues FunctionslPrograms Governmental activities:
General government Public safety Highways and streets Culture and recreation Interest on long-term debt Total governmental activities Business type activities:
Electric Water Sewer Refuse Airport Transportation Public parking Total business type activities Total Indirect Expenses Expenses Allocation
$ 58,460 $ 11,060 110,969 (5,838)20,364 (2,381)26,353 (2,841)15,885 232,031 Charges for Services$ 25,995 6.982 23,108 7,002 Operating Grants and Contributions
$ 9.923 4,577 229 1,411 Capital Grants and Contributions
$ 1,946 472 1,224 1,650 Governmental Activities
$ (31,656)(93,100)6,578 (13,449)(15,885)(147,512)Business type Activities 63,087 16,140 5,292 Total$ (31,656)(93,100)6,578 (13,449)(15,885)(147,512)69,008 9,119 (626)1,830 122 (234)2,137 81,356 (66,156)200,030 36,709 26,108 12,841 1,185 2,557 824 280,254$ 512,285 252,322 34,002 21,967 14,492 1,088 200 2.961 327,032 S 390,119 182 2,079 2,261$ '18,401 16,716 11,826 3.515 179 37 44 32,317$ 37,609$ 69,008 9,119 (626)1,830 122 (234)2,137 81.356 81,356 (147,512)General revenues: Taxes: Sales Property Utility users Franchise Other Intergovernmental, unrestricted Grants and contributions not restricted to specific programs Investment income Miscellaneous Subtotal Special item -canal abandonment Transfers, net Total general revenues, special items, and transfers Change in net assets Net assets -beginning Net assets -ending 53,348 61,553 22,133 4,481 3,828 1,795 15,220 7,815 5,756 175,929 14,918 190,847 43,335 580,557$ 623.892 53,348 61,553 22,133 4,481 3,828 1,795 15,220 7,548 15,363 7,362 13,118 14,910 190,839 (3,014) (3,014)(14,918)(3,022) 187,825 78,334 121,669 608,045 1,188,602$ 686,379 $ 1,310,271 The notes to the financial statements are an integral part of this statement 20 City of Riverside Balance Sheet Governmental Funds June 30, 2008 (amounts expressed In thousands)
Assets Cash and Investments Cash and Investments at fiscal agent Receivables (net of allowance for uncollectbles):
Interest Property taxes Sales tax Utiliy bled Accounts Intergovernmental Notes Capital lease receivable Prepal Items Due from other funds Advances to other funds Land & improvements held for resale Total assets Uabilities and fund balances UaIties: Accounts payable Accrued payrol RetWng payable Intergovemmental Unearned revenue Deposits Due to other funds Advances from other funds Total liabilities Fund balances: Reserved Unreserved, designated for economic contingencies Unreserved, designated for liability Insurance Unreserved, designated for future operations:
General fund Special revenue funds Capital project funds Permanent fund Unreserved, undesignated:
General fund Special revenue funds Capital project funds Total fund balances Total lablities and fund balances General Fund S 78,366 63.165 922 8,438 9,103 552 3,110 5.066 70 176 6,921 33,715 209,602$ 4,234 7,908 382 138 12,427 28.564 50 2,146 55,849 Raedevelopsk nt Other Debt Governmental Service Funds$ 5,982 $ 113,610 7,430 39,424 59 261 27,150 228$ 41,110 1,096 382 173 8,937 17,124 4,352 232 6,386$ 191.696 Total Governmental Funds 197,958 110,019 2,077 8,798 9,103 552 3,544 14.003 17,194 27,150 4,528 6.921 34,175 6,386$ 442,408$ 432 $ 6,144 $ 10,810 7,908 1,484 1.866 138 27,179 18,622 58,228 44 28.608 2,001 2,051 15,002 17,148 27,611 43.297 126,757 44,487 27,000 6,400 59.593 13,499 34,178 19,544 71,684 127 92,164 27,000 6,400 59,593 19.544 71,684 127 16.273 153,753$ 209.602 13,499$, 41,110 5,447 17,419 148,399$ 191,696 16,273 5.447 17,419 315.651$ 442.408 The notes to the financial statements are an Integral part of this statement.
21 CITY OF RIVERSIDE RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS June 30, 2005 (amounts expressed In thousands)
Total fund balances -governmental funds Amounts reported for governmental activities In the Statement of Net Assets are different because: Capital assets net of accumulated depreciation used in governmental activities that are not current financial resources and, therefore, are not reported in the funds.Issuance costs from issuing debt are expenditures at the fund level but are deferred and subject to capitalization and amortization in the Statement of Net Assets.Special item, pension contribution, is a use of current financial resources and an expenditure at the fund level, is deferred and recognized as a deferred charge on the Statement of Net Assets.Revenues that do not meet the "availability" criteria for revenue recognition and therefore, are deferred in the funds.Long-term liabilities, as listed below, are not due and payable in the current period and therefore are not reported in the funds.Bonds Payable Accrued Interest Payable Certificates of Participation Payable Notes Payable Capital Leases Payable Bond Premiums Compensated Absences Internal service funds are used by management to charge the costs of insurance, centralized purchasing and fleet management to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Statement of Net Assets.$315,651 540,383 4,105 120,548 56,688$ (307,999)(4,059)(57,336)(10,645)(7,431)(4,585)(30,052)(422,107)8,624$623,892 Net assets of governmental activities The notes to the financial statements are an integral part of this statement 22 City of Riverside Statement of Revenues, Expenditures, and Changes In Fund B Governmental Funds For the fiscal year ended June 30, 2005 (amounts expressed In thousands)
Revenues Taxes Licenses end permits Intergovernmental Charges for services Fines and forfeitures Special assessments Rental and Investment Income Miscellaneous Total revenues Expenditures Current: General government Public safety Highways and streets Culture and recreation Capital outlay Debt service: Principal Interest Bond Issuance costs Total expenditures Deficiency of revenues under expenditures Other financing sources (uses): Transfers in Transfers out Proceeds from Issuance of long term obligations Premiums on bonds issued Sale of capital assets Total other financing sources before special item Special Item -pension contribution Net change in fund balances Fund balances -beginning Fund balances -ending Redevelopment Other Debt Governmental General Fund Service Funds$ 116,018 $ 16,994 $ 9,044 7,374 7,015 15,366 200 27,002 11,291 -8 1,783 223 4,118 2,154 4,251 2,486 4,178 4,749 591 4,656 164,950 20,271 54,280 21,351 119,036 13,446 26,198 261 7,188 7,982 48,366 Total Governmental Funds$ 142,056 14,389 42,568 11,299 2,006 6,272 10,915 9,996 239,501 28,800 119,036 13,446 34,180 48,366 17,766 15,025 1,538 278,157 (38,656)49,944 (35,026)85,578 113 6,230 106,839 (32,141)36,042 279,605$ 315,647 3,522 13,674 570 8,337 6,377 311 487 1,051 192,377 21,363 64,417 (27,427) (1,092) (10,137)22,846 (8,076)60,000 8,575 (17,068)11,454 113 18,523 (9,882)14,124 92 6,138 74,862 3,074 28,903 (28,213) (3,928)19,222 1,982 14,838 134,527 11,517 133,561$ 153,749 $ 13,499 $ 148,399 The notes to the financial statements are an integral part of this statement.
23 CITY OF RIVERSIDE RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended June 30, 2005 (amounts expressed In thousands)
Net change in fund balances-total governmental funds $36,042 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures.
However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period, as listed below.Capital Outlay 53,797 Depreciation Expense (17,273) 36,524 Revenues In the statement of activities that do not meet the *avallability" criteria for revenue recognition and therefore are not reported as revenue in the funds. 4,085 Special Item, Pension Contribution that is deferred and amortized in the statement of activities.
32,141 The issuance of long-term debt (e.g., bonds, leases, notes) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.
The net effect of these differences in the treatment of long-term debt and related items Is listed below: Principal repayments 17,634 Deferred Charges 1,251 Compensated Absences (1,211)Interest (910)Proceeds from LTD (85,693)Other 182 (68,747)Internal service funds are used by management to charge the costs of insurance, centralized purchasing and fleet management to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities.
3,290 Change in net assets of governmental activities
$ 43,335 The notes to the financial statements are an integral part of this statement 24 City of Riverside Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual General Fund For the year ended June 30. 2005 (amounts expressed in thousands)
Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues Taxes Ucenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Rental and investment Income Miscellaneous
$ 110,594 6,735 15,943 8,129 2,045 3,755 3,015 2,155$ 110,594 6,735 22,102 8,191 2,045 3,755 3,057 5,264$ 116,018 7,374 15,366 11,291 1,783 4,118 4,251 4,749$ 5,424 639 (6,736)3,100 (282)363 1,194 (515)Public safety: Police Fire Animal regulation Building and zoning inspection Street lighting Total public safety Highways and streets 74,685 61,381 2,870 2,061 3,859 144,856 87,816 86,839 2.870 2,524 3,859 163,908 75,974 34,688 2,119 2,433 3.822 119,036 11,842 32,151 751 91 37 44,872 13,442 15,247 13,446 1.801 32,248 36,116 26,198 9,918 Total revenues 152,371 161,743 164,950 3,207 Culture end recreation Expenditures General government Mayor Council Manager Attorney Clerk Planning Human Resources General Services Finance Information System Non-departmental Subtotal Allocated expenditures Total general government 536 78 769 179 208 5,058 3.928 26,007 6,633 13,580 14.946 653 143 1,031 391 284 5,663 4,292 30,907 6,106 13,486 15,083 498 97 767 98 195 4,990 3,587 13,561 3,103 11,114 10,728 155 46 264 293 89 673 705 17.346 3.003 2,372 4,335 Debt service: Principal interest Bond issuance costs Total debt service Total expenditures 750 2,416 1,538 2,528 3,522 8,337 487 12,346 (1,984)(5,809)(487)(8,280)3,166 4,066 238,648 270.370 192,377 77,993 Deficiency of revenue under expenditures (88,277) (108,627)
(27,427) 81.200 71,922 78.019 48,738 29,281 (26,986) (26,986) (27,387) 401 44,936 51,033 21,351 29.882 continued Other financing sources (uses)Transfers in Transfers out Proceeds from issuance of long-term debt Sale of capital assets Total other financing sources before special item Special item -pension contribution Net change in fund balances 23,522 (3,450)0 100 26,325 (5,798)0 100 22,540 (8.076)60,000 92 (3,48U)(2.278)60.000 (8)20,172 20,630 74,862 54,232 0 0 (28,213) (28,213)The notes to the financial statements are an integral part of this statement, (66,105)(87,997)19,222 107.219 Fund balance, beginning Fund balance, ending 134,527 134,527 134,527 0 68,422 $ 46,530 $ 153,749 $ 107,219 mm;m===25 City of Riverside Statement of Net Assets Proprietary Funds June 30, 2005 (amounts expressed in thousands)
Business-type Activities
-Enterprise Funds Other Enterprise Funds Total Enterprise Funds Governmental Activities-Internal Service Funds Assets Current assets: Cash and Investments Receivables (net of allowances for uncollectibles)
Interest Utility billed Utility unbilled Accounts Intergovernmental Nuclear materials inventory Inventory Prepaid items Due from other funds Restricted assets: Cash and cash equivalents Cash and investments at fiscal agent Public benefit programs receivable Conservation
& reclamation programs receivable Total current assets Non-current assets: Advances to other funds Deferred charges Capital assets: Land Buildings Accumulated depreciation-buildings Improvements other than buildings Accumulated depreciation-improvements other than buildings Machinery and equipment Accumulated depreciation-machinery and equipment Construction in progress Total non-current assets Total assets Electric Water Sewer$ 88,292 $ 15,911 $ 58,794 $7,202 $ 170,199 $ 20,136 941 11,332 10,813 8,637 3,133 1,311 6,628 50 50,003 64.474 595 217 1,591 2,152 1,713 396 4,339 4,187 11 720 568 782 690 491 98 428 596 271 2,130 I 1,976 13,919 14,343 11,311 6,150 1,311 6,631 50 61,455 68,661 595 11 213 6 56 4,743 7 3,896 3,217 246,209 30,518 65,942 13,943 356,612 25,161 3 40,015 6,848 12,243 (3,051)473,765 (215,853)14,609 (11,423)98,385 415,541 661,750 48 7,135 12,552 14,787 (2,280)293,244 (92,356)8,672 (5.576)12,656 248,882 279,400 10,728 3,922 7,464 2,698 173,947 (57,173)37,471 (7,628)6,126 (4,269)257 166.079 232,021 9,164 4,509 (2,469)7,178 (3,017)10,676 (6,982)21,567 48,090 62,033 10,779 58,536 31,262 205,486 (64,973)811,658 (318,854)40,083 (28,250)132,865 878,592 1,235,204 2,506 1,657 1,488 (32)9,335 (7,204)7,750 32,911 continued 26 City of Riverside Statement of Net Assets Proprietary Funds June 30,2005 (amounts expressed In thousands)
Business-type Activities
-Enterprise Funds Liabilities Current liabilities:
Accounts payable Accrued payroll Retainage payable Intergovernmental Claims and judgments Unearned revenue Deposits Due to other funds Capital leases-current Water stock acquisitions-current Current liabilities payable from restricted assets: Revenue bonds Accrued interest Other payables Total current liabilities Non-current liabilities:
Revenue bonds Notes payable Capital leases Advances from other funds Decommissioning liability Water stock acquisitions Landfill capping Total non-current liabilities Total liabilities Net Assets Invested in capital assets, net of related debt Restricted for debt service Restricted for other purposes Restricted for programs Unrestricted Total net assets Electric Water Sewer 16,260 4,708 1,273 43 2,599 15,015 2,678 108 42,684 306,144 13,690 44,030 363,864 406,548 97,207 34,383 4,732 118,880$ 255,202 1,383 2,027 645 87 1.365 150 1,238 1,158 26 196 42 Other Enterprise Funds 1,740 905 219 941 17 3,822 4,075 610 1 10,343 62,819 5,890 865 69,574 79,917 175,041 8,440 132 15,870$ 199,483 3,120 775 618 7,173 Total Enterprise Funds 20,621 8,798 1,944 43 502 3,964 941 59 150 22,210 4,063 727 64,022 397,371 9,841 333 28,640 44,030 865 3,723 484,803 548,825 402,377 46,459 3,217 4,864 229,462$ 686,379 Governmental Activities-Internal Service Funds 397 624 47 17,549 19 3,979 22,615 1,672 1.672 24,287 3,587 5,037$ 8,624 28,408 9,841 116 3.768 217 5,292 42,133 49,306 3,723 9,232 13,054 109,284 3,636 20,845 3,217 69,795 24,917$ 182,715 $ 48,979 The notes to the financial statements are an Integral part of this statement.
27 City of Riverside Statement of Revenues, Expenses, and Changes In Fund Net Assets Proprietary Funds For the fiscal year ended June 30, 2006 (amounts expressed In thousands)
Business-type Activities
-Enterprise Funds Other Enterprise Funds Total Enterprise Funds Governmental Activities.
Internal Service Funds Operating revenues: Charges for services Operating expenses: Personal services Contractual services Maintenance and operation General Materials and supplies Insurance Depreciation and amortization Total operating expenses Operating income (loss)Nonoperating revenues (expenses):
Operating grants Interest income Other Gain (loss) on retirement of capital assets Capital improvement fees Interest expense and fiscal charges Total nonoperating revenues (expenses)
Income (loss) before capital contributions, transfers and special item Capital contributions Transfers in Transfers out Total before special item Special Item .canal abandonment Change in net assets Electric$ 252,322 13,274 2,849 145.820 10,165 454 834 15,116 188,512 63,810 5,183 1,255 217 (11,518)(4,863)58,947 16,716 363 (18.572)57,454 57,454 197,748$ 255,202 Water$ 34,002 7,543 2,105 7,948 7,937 422 628 6,314 32,897 1,105 582 1,171 620 (3,812)(1,439)(334)11,826 150 (3,487)8,155 (3,014)5,141 194,342$ 199,483_Sewer$ 21,967 $ 18,741 $ 327,032 $ 17,373 7,169 837 6,451 3,435 1,394 378 4,715 24,379 (2,412)1.496 1,809 627 3,494 (1,729)5,697 3,285 21 172 3,478 4,815 3,663 4,807 1,509 815 436 1,275 17,320 1,421 2,261 287 1,998 (335)(87)4,124 5,545 260 6,456 12,261 32,801 9,454 165,026 23,046 3,085 2,276 27,420 263,108 63,924 2,261 7,548 6,233 1,129 3,494 (17,146)3,519 67,443 28,823 7.141 (22,059)81,348 2,966 62 1,324 1,606 129 7,738 767 14,592 2,781 688 (279)89 (15)483 3,264 26 3,290--(3,014) _3,478 12,261 78,334 3,290 Total net assets -beginning Total net assets -ending 179,237$ 182,715 36,718$ 48,979 608,045$ 686,379 5,334$ 8,624 The notes to the financial statements are an integral part of this statement.
28 City of Riverside Propdetary Funds Statement of Cash Flows For the fiscal year ended June 30, 2005 (amounts expressed In thousands)
Business-type Activities.
Enterprise Funds Other Enterprise Funds Governmental Total Activities-Enterprise Internal Funds Service Funds Electric Water Sewer Cash flows from operating activities:
Cash received from customers and users Cash paid to employees for services Cash paid to other suppliers of goods or services Other receipts (payments)
Canal abandonment Net cash provided (used) by operating activities Cash flows from noncapital financing activities:
Transfers in Transfers out Operating grants Advances from interfund receivables Payments on interfund receivables Advances to other funds Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities:
Purchase of capital assets Purchase of nuclear fuel Proceeds from the sale of capital assets Principal paid on long-term obligations Interest paid on long-term obligations Capital Improvement fees Capital contributions Net cash used for capital and related financing activities Cash flows from Investing activities:
Purchase of Investments Income from investments Net cash provided by investing activities Net Increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning (including
$110,029 for Electric,$10,100 for Water, $3,809 for Sewer and $3,333 for other enterprise funds In restricted accounts)Cash and cash equivalents, ending (including
$50,003 for Electric,$4,339 for Water, $3,896 for Sewer and $3,217 for other enterprise funds in restricted accounts)245,314 (13,415)(150,200)1,255 82.954$ 38,702 (7,679)(20,287)1,171 (1.147)81760$22,529 (7,390)(12,404)2,071 4.806$18.764 (4,871)(12.057)(4,283)$323,309 (33,355)(194,948)214 (1,147)94,073$17,768 (3,149)(12,465)(280)1.874 (2.447)363 150 (18,572) (3,487)172 8,458 1,966 8,749 1,000 (839)7,141 (22,059)1,965 8,749 1,024 (3,836)24 (2.997)560 560 (18,209) (3,313) (2,825) 17,331 (7.016)(95,562)(984)274 (14,555)(11,259)12,864 (17,242) (12,691)999 (4,069)(2,548)1,014 (3,619)(1,817)(13,690) (139,185)-(984)5 2,292 (4) (22,247)(65) (15,689)3,494 44 22,629 (930)76 3,494 9,721 (109,222)
(13,139) (13,619) (13,710) (149,690)
(854)(2,803)4,939 2,136 (42,341)(3)543 540 (7,152)1,480 1.460 (10,178)274 274 1,448 (2,808)7,216 4,410 (58,223)653 653 2233 180,636 27,402 72,888 8,971 289,877 17,903$ 138,295 $ 20,250 $ 62,690 $ 10,419 $ 231,654 $ 20,136: = ý X s continued 29 City of Riverside Proprietary Funds Statement of Cash Flows For the fiscal year ended June 30, 2005 (amounts expressed In thousands)
Business-type Activities
-Enterprise Funds Governmental Activities.
Other Enterprise Funds Total Electric Water Sewer Enterprise Internal Funds Service Funds Reconciliation of operating income (loss) to net cash provided (used) by operating activities:
Operating Income (loss)Other receipts (payments)
Canal abandonment Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation and amortization Amortization of nuclear fuel (Increase) decrease in utility billed receivables Decrease (increase) in utility unbilled receivables (Increase) decrease in accounts receivable (Increase) decrease In Intergovernmental receivables Decrease in notes receivable (increase) decrease in prepaid items Decrease in nuclear materials inventory (Increase) in inventory Increase (decrease) in accounts payable (Decrease)
In accrued payroll Increase (decrease) in retainage payable Decrease in intergovernmental receivables (Decrease) in unearned revenue Increase (decrease) in deposits Increase (decrease) in due to other funds Increase In claims and judgments Increase in decommissioning liabilitity Decrease in landfill capping Net cash provided (used) by operating activities Noncash financing and Investing activities:
Capital contributions Advance from other funds -pension obligation bonds Canal abandonment The notes to the financial statements are an integral part of this statement 63,810 1,255 15,116 4,331 (651)(855)267 (1,832)(2,044)(82)688 (142)1,088 27 (683)(212)2,873 82,954$1,105 1,171 (1,147)6,314 105 (283)440 1,467$(2,412)1,809$1,421 1,998$63.924 6,233 (1,147)4,71 73 (23 33 (992)(136)(77)(178)971 (22 (7j 15 1,275 i3 23 5 (24)W8 29 30) (1.661)37 11 (1)72 (656)21) (56)4 75) (18)(4,378)(399)56 $ (2,447)27,420 4,331 (470)(1,157)1,474 (2,256)337 (2,034)(82)(888)(555)1,015 27 (954)759 (4,378)2,873 (399)$ 94,073$ 2,781 (280)767 (6)391 (1,849)(283)(15)(34)137 265$ ,1,874$ 8,760$ 4,80$$$3,852 13,690$$$2.105 5.890 (1.867)$$$21 3,768$$$216 2,532$$$6,194 25,880 (1,867)$$$26 1,672 30 City of Riverside Statement of Fiduciary Net Assets Fiduciary Fund June 30, 2006 (amounts expressed In thousands)
Assets: Cash and investments Cash and investments at fiscal agent Interest receivable Property tax receivables Total assets Liabilities:
Accounts payable Due to other funds Held for bond holders Total liabilities Agency Funds$ 2,991 13,996 48 166$ 17,201$1 6 17,194$ 17,201 The notes to the financial statements are an integral part of this statement 31 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands)
- 1. Summary of Significant Accounting Policies The City of Riverside (City) was incorporated on October 11, 1883 as a Charter City and operates under a Council-Manager form of Government.
The more significant accounting policies reflected in the financial statements are summarized as follows: A. Reporting Entity These financial statements present the City and its component units, entities for which the City is financially accountable.
Blended component units are legally separate entities, but in substance are part of the City's operations and their data is combined with that of the City's. The City has no component units that meet the criteria for discrete presentation.
All of the City's component units have a June 30 year end.Blended Component Units Riverside Redevelopment Agency (Redevelopment Agency) was established in 1971 by the City. The Redevelopment Agency's primary purpose is to eliminate blighted areas in the City by encouraging commercial development.
City Council members serve as the Redevelopment Agency's directors and have full accountability for fiscal matters.Riverside Public Financing Authority (Public Financing Authority) was organized in December 1987 by the City and the Redevelopment Agency.The purpose of the Public Financing Authority is to provide financing for public capital improvements to the City or the Redevelopment Agency. City Council members serve as the Public Financing Authority's directors and have full accountability for fiscal matters.Riverside Municipal Improvements Corporation (Municipal Improvements Corporation) was created in 1978 and operates under provisions of the Nonprofit Public Benefit Corporation Law of the State of California.
The Municipal Improvements Corporation's primary purpose is to provide financing assistance by obtaining land, property and equipment on behalf of the City. Three members of the City Council serve as the Municipal Improvements Corporation's directors and have full accountability for fiscal matters.Complete financial statements for each of the individual component units except the Riverside Municipal Improvement Corporation (which does not generate a financial statement) may be obtained from the City's Finance Department, 3900 Main Street, Riverside, California, 92522.B. Government-wide and Fund Financial Statements The govemment-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the City and its component units. Interfund activity has been removed from these statements except for utility charges, as this would distort the presentation of function costs and program revenues.Governmental activities, which normally are supported by taxes and intergovemmental revenues, are reported separately from business type activities, which rely to a significant extent on fees and charges for support.The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues.Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Indirect expenses are allocated to the various functions based on a proportionate utilization of the services rendered.
Such allocations consist of charges for accounting, human resources, information technology and other similar support services.Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the govemment-wide financial statements.
Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The govemment-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are 32 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands) recognized as revenues in the year for which they are levied on the property.Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. An allowance for doubtful accounts is maintained for the utility and other miscellaneous receivables.
Agency funds report only assets and liabilities, therefore have no measurement focus.Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for sales tax revenue which is seven (7) months, as described below. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.Effective with the current fiscal year, the State temporarily began to exchange 25% of sales taxes for an equal amount of property taxes to securitize a short-term State bond issue. The State bond issue will remain outstanding for an uncertain number of years, but is currently estimated not to exceed eight (8) years. These in-lieu sales taxes will be paid to the City by the State on a different calendar than sales taxes, which are paid monthly, three months in arrears. The vast majority of the in-lieu amount will be paid during the applicable fiscal year; however, the final payment of the in-lieu sales taxes will not be paid until the January following the end of the applicable fiscal year. The City has budgeted this final payment in the current fiscal year and will continue this practice during this temporary period, effectively extending the availability period to seven (7) months for the in-lieu sales taxes and thus provide consistency in the reporting of sales tax revenue.Property taxes, special assessments, sales taxes, franchise taxes, licenses, charges for services, amounts due from other governments and interest associated with the current fiscal period are all considered to be susceptible to accrual. Other revenue items such as fines and permits are considered to be measurable and available only when the govemment receives cash, and are therefore not susceptible to accrual.The government reports the following major governmental funds: The General fund is the governments primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.The Redevelopment Agency's debt service fund accounts for the resources accumulated and payments made for principal and interest on long-term obligation debt of the Redevelopment Agency.The government reports the following major proprietary funds: The Electric fund accounts for the activities of the City's electric distribution operations.
The Water fund accounts for the activities of the City's water distribution operations.
The Sewer fund accounts for the activities of the City's sewer systems.Additionally, the government reports the following fund types: Internal service funds account for the central stores, central garage, and the three self-insured risks of workers compensation, unemployment and public liability on a cost reimbursement basis.The agency fund is used to account for special assessments that service no-commitment debt The permanent fund is a fiduciary fund that is used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's Library programs.Pronouncements regarding accounting and financial reporting issued by the Financial Accounting Standards Board prior to December 1, 1989 generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board.Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation.
The City has elected not to follow subsequent private-sector guidance.33 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands)
Significant interfund activity has been eliminated from the government-wide financial statements with the exception of charges between the City's electric, water, sewer and refuse functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations.
The sewer fund also recognizes as operating revenue the portion of connection fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.D. Cash and Investments The City values its cash and investments in accordance with the provisions of Government Accounting Standards Board (GASB) Statement No. 31,"Accounting and Financial Reporting for Certain Investments and External Investment Pools (GASB 31)," which requires governmental entities, including governmental external investment pools, to report certain investments at fair value in the statement of net assets/balance sheet and recognize the corresponding change in the fair value of investments in the year in which the change occurred.
Fair value is determined using published market prices.Cash accounts of all funds are pooled for investment purposes to enhance safety and liquidity while maximizing interest earnings.
Investments are stated at fair value. All highly liquid investments (including restricted assets)with a maturity of 90 days or less when purchased are considered cash equivalents.
Cash and investments held on behalf of proprietary funds by the City Treasurer are considered highly liquid and are classified as cash equivalents for the purpose of presentation in the Statement of Cash Flows.E. Restricted Cash and Investments Certain proceeds of Enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net assets because their use is limited by applicable bond covenants.
Additionally, unspent proceeds received from the City's landfill capping surcharge are also recorded as restricted assets.F. Land and Improvements Held for Resale Land and improvements held for resale are generally acquired under Developer Disposition Agreements in the normal course of Redevelopment Agency activity.
The Developer Disposition Agreements provide for transfer of property to developers after certain redevelopment obligations have been fulfilled.
This property is carried at cost until an event occurs to indicate a lower net realizable value.G. Inventory Supplies are valued at cost using the average-cost method. Costs are charged to user departments when consumed rather than when purchased.
H. Prepaid Items Payments to vendors for services benefiting future periods are recorded as prepaid items and expenditures are recognized when items are consumed.I. Capital Assets and Nuclear Fuel Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets ( e.g., roads, bridges, sidewalks, right of way, and similar items), are reported in the applicable governmental or business-type activities columns In the government-wide financial statements.
The government defines capital assets as assets with an initial, individual cost of more than five thousand dollars and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Costs include: labor, materials; interest during construction; allocated indirect charges such as engineering, construction and transportation equipment, retirement plan contributions and other fringe 34 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2005 (amounts expressed In thousands) benefits.
Donated capital assets are recorded at estimated fair market value at the date of donation.The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Capital assets other than land are depreciated using the straight-line method.Nuclear Fuel The Electric Utility amortizes the cost of nuclear fuel to expense using the "as burned" method. In accordance with the Nuclear Waste Disposal Act of 1982, the Electric Utility is charged one dollar per megawatt-hour of energy generated by the City's share of San Onofre Nuclear Generating Station's Units 2 and 3 to provide for estimated future storage and disposal of spent fuel. The Electric Utility pays this fee to its operating agent, Southern California Edison Company, on a quarterly basis.J. Compensated Absences City employees receive 10 to 25 vacation days a year based upon length of service. A maximum of two years' vacation accrual may be accumulated and unused vacation is paid in cash upon separation.
City employees generally receive one day of sick leave for each month of employment with unlimited accumulation.
Upon retirement or death, certain employees or their estates receive a percentage of unused sick leave paid in a lump sum based on longevity.
The General, Library, Redevelopment Agency Capital Projects and the Housing and Community Development Special Revenue funds have been used to liquidate such balances.The liability associated with these benefits is reported in the government-wide statements.
Vacation and sick leave of proprietary funds is recorded as an expense and as a liability of those funds as the benefits accrue to employees.
K. Long-Term Obligations Long-Term Debt In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are classified as deferred charges and amortized over the life of the bonds using the effective interest method.Bonds payable are reported net of the applicable bond premium or discount.In the fund financial statements, government fund types recognize bond issuance costs as expenditures during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuance are reported as other financing uses.Decommissioninq Federal regulations require the Electric Utility to provide for the future decommissioning of its ownership share of the nuclear units at San Onofre.The Electric Utility established a trust account to accumulate resources for the decommissioning of the nuclear power plant and restoration of the beachfront at San Onofre. Each year the Electric Utility recognizes an expense in the amount of the contribution to the trust account. The funding will occur over the useful life of the generating plant.Amounts held in the trust account are classified as restricted assets in the accompanying balance sheet. To date, the Electric Utility has set aside$44,030 in cash and investments with the trustee as Riverside's estimated share of the decommissioning cost of San Onofre. Based on a cost estimate completed by Southern California Edison and approved by the California Public Utilities Commission, the Electric Utility plans to set aside approximately
$1,600 per year to fund this obligation.
Decommissioning is expected to commence around the year 2014.L. Claims and Judgments Payable Claims and judgments payable are recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.
Such claims, including an estimate for claims incurred but not reported at year end, are recorded as liabilities in the appropriate internal service fund.M. Fund Equity In the fund financial statements, reserves represent those portions of fund equity not available for appropriation or legally segregated for a specific 35 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousandsl future use. Designated fund balances represent amounts identified by management or the governing board for the future use of financial resources.
N. Net Assets Net assets represent the difference between assets and liabilities.
Net assets invested in capital assets, net of related debt, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net assets invested in capital assets, net of related debt excludes unspent debt proceeds.
Net assets are reported as restricted when there are limitations imposed on their use either through legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments.
Restricted resources are used first to fund appropriations.
- 0. Interfund Transactions Interfund transactions are accounted for as revenues and expenditures or expenses.
Transactions, which constitute reimbursements, are eliminated in the reimbursed fund and accounted for as expenditures or expenses in the fund to which the transaction is applicable.
During the year, transactions occur between individual funds for goods provided or services rendered.
Related receivables and payables are classified as "due from/to other funds" on the accompanying fund level statements.
The noncurrent portion of long-term interfund loans receivable are reported as interfund receivables/payables and, for governmental fund types, are equally offset by a fund balance reserve to indicate that the receivable does not constitute available expendable financial resources.
Interfund payables also include accrued interest, which has been offset by deferred revenue.Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances".
P. Unearned Revenues Governmental and proprietary funds report unearned revenue on the statement of net assets. Unearned revenues arise in governmental funds when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to meeting all eligibility requirements.
In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, revenue is recognized.
The majority of the City's governmental fund unearned revenue for June 30, 2005 relates to unearned revenue on a capital lease.See Note 4.Q. Property Tax Calendar Under California law, general property taxes are assessed for up to 1% of the property's assessed value. General property taxes are collected by the counties along with other special district taxes and assessments and voter approved debt. General property tax revenues are collected and pooled by the county throughout the fiscal year and then allocated and paid to the county, cities and school districts based on complex formulas prescribed by State statutes.Property taxes are calculated on assessed values as of January 1 for the ensuing fiscal year. On July 1 of the fiscal year the levy is placed and a lien is attached to the property.
Property taxes are due in two installments.
The first installment is due November 1 and is delinquent on December 10. The second installment is due February 1 and is delinquent on April 10. Property taxes receivable represent current and prior years' uncollected tax levies, adjusted for uncollectable amounts.R. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures.
Specifically, the City has made certain estimates and assumptions relating to the collectability of its receivables, the valuation of property held for resale, the useful lives of capital assets and the ultimate outcome of claims and judgments.
Actual results may differ from those estimates and assumptions.
36 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands)
S. Implementation of new accounting principles The City adopted Governmental Accounting Standards Board (GASB)Statement No. 46, Net Assets Restricted by Legislation-an amendment of GASB Statement No. 34. GASB 34 requires that limitations on the use of net assets imposed by enabling legislation be reported as restricted net assets.GASB 46 clarifies that a legally enforceable enabling legislation restriction is one that a party external to a government
-such as citizens, public interest groups, or the judiciary
-can compel a government to honor. Statement 46 further requires that legal enforceability of an enabling legislation restriction be reevaluated if any of the resources raised by the enabling legislation are used for a purposes not specified by the enabling legislation or if a government has other cause for reconsideration.
This statement requires governments to disclose the portion of total net assets that is restricted by enabling legislation.
Accordingly, net assets restricted by legislation have been reported to conform to the provisions of GASB Statement No. 46.Currently, the City has no such restrictions.
GASB has issued several pronouncements prior to June 30, 2005 (for years ending after June 30, 2005) that have effective dates that may impact future financial presentations.
Management has not currently determined what, if any, impact implementation of the following statements may have on the financial statement of the City of Riverside., GASB Statement Number 42, "Accounting and Financial Reporting for Impairment of Capital Assets and Insurance Recoveries." GASB Statement Number 44, *Economic Condition Reporting:
The Statistical Section" which amends portions of previous guidance related to the preparation of a statistical section when presented as a required part of a comprehensive annual financial report (CAFR).2. Legal Compliance
-Budgets Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for all departments within the general, special revenue and capital project funds. Formal budgets are not employed for debt service funds because debt indenture provisions specify payments.
The permanent fund is not budgeted.During the period December through February of each fiscal year, department heads prepare estimates of required appropriations for the following fiscal year. These estimates are compiled into a proposed operating budget that includes a summary of proposed expenditures and financial resources and historical data for the preceding fiscal year. The operating budget is presented by the City Manager to the City Council for review. Public hearings are conducted to obtain citizen comments.
The City Council generally adopts the budget during one of its June meetings.The City Manager is legally authorized to transfer budgeted amounts between divisions and accounts within the same department.
Transfer of appropriations between departments or funds and increased appropriations must be authorized by the City Council. Expenditures may not legally exceed budgeted appropriations at the departmental level within a fund.3. Cash and Investments Cash and investments at fiscal year end consist of the following:
Investments Cash and investments at fiscal agent$413,194 225,685 638,879 6.536 MAMIE41 Cash on hand and in transit The amounts are reflected in the government-wide statement of net assets: Cash and investments Restricted cash and cash equivalents Restricted cash and investments at fiscal agent Total per statement of net assets Fiduciary fund and investments
$388,293 61,455 178,680 628,428 16,987 The City follows the practice of pooling cash and investments of all funds except for funds required to be held by outside fiscal agents under the provisions of bond indentures, which are administered by outside agencies.Interest income earned on pooled cash and investments is allocated monthly to funds based on the beginning and month-end balances.
Interest income from cash and investments held at fiscal agents is credited directly to the related account Bank deposits are covered by federal depository insurance for the first $100 or by collateral held in the pledging bank's trust department in the name of the City.37 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2005 (amounts exoressed in thousands)
Authorized Investments Under provisions of the City's investment policy, and in accordance with California Government Code Section 53601, the City Treasurer may invest or deposit in the following types of investments:
Securities of the U.S. Gov't.and its sponsored agencies Repurchase Agreements Reverse Repurchase Agreements Negotiable Certificates of Deposit Bankers Acceptances Commercial Paper of *prime' quality Local Agency Investment Fund (State Pool)Mutual Funds Medium-Term Corporate Notes Max Maturity 5 Years 1 Year 90 Days 5 Years 180 Days 270 Days N/A N/A 5 Years Max % of Portfolio 100%100%20%30%40%25%100%20%30%Investments in money market funds rated in the single highest classification Municipal obligations rated Aaa/AAA or general obligations of states with ratings of at least A2/A or higher by both Moody's and S&P Investment Agreements No maximum percentage of the related debt issue or maximum investment in one issuer is specified.
Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes In market interest rates will adversely affect the fair value of an investment Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City's investment policy requires that the Interest rate risk exposure be managed by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City's investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Investments in Medium Term Corporate Notes may be invested in securities rated A or better by Moody's or Standard and Poor's rating services and no more than 15% of the market value of the portfolio may be invested in one corporation.
The City's investment policy provides two exceptions to the above; one is for investments authorized by debt agreements (described below) and the other for funds reserved in the San Onofre Nuclear Generating Station Decommissioning Account for which the five-year maturity limitation may be extended to the term of the operating license.Investments Authorized by Debt Agreements Provisions of debt agreements, rather than the general provisions of the California Government Code or the City's investment policy, govern investments of debt proceeds held by bond fiscal agents. Permitted investments are specified in related trust agreements and include the following:
Securities of the U.S. Government and its sponsored agencies Bankers' Acceptances rated in the single highest classification Commercial Paper rated in the single highest classification Remaining Maturity (in Months)12 Months 13 to 24 25 to 60 More than or Less Months Months 60 Months Investment TI=e Money Market Funds Federal Agency Securities Corp Medium Term Notes Municipal Securities State Investment Pool Held by Fiscal Agent Money Market Funds Investment Contracts State Investment Pool Certificates of Deposit Fed Agency Securities Total$66,831 250.161 69,969 1,190 25,043 9,473 100,230 42,732 5,528 67.722$66.831 9.968 24.551 25,043 9,473 403 42,732 5,328 21.597 173.197 35,436 30,424 26,968$ -66,996 9.982 40.308 200 19,157$ -1,190 29,095 285ZS The City assumes that callable investments will not be called.38 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands)
Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the actual rating as of year-end for each investment type: Rating as of Year End M 6a.a A United Money Market Funds Federal Agency Securities Corp Medium Term Notes Municipal Securities State Investment Pool Held by Fiscal Agent Money Market Funds Investment Contracts State Investment Pool Certificates of Deposit Fed Agency Securities Total$ 66,831 250,161 69,969 1,190 25,043 9,473 100,230 42,732 5,528 67-722 21138$ -250,161 40,460 9,473 99,362 5,528 67,722$ -17,984 1 11,545$66,831 1,190 25,043 42,732 its investment or collateral securities that are in the possession of another party. The City's investment policy requires that a third party bank trust department hold all securities owned by the City. All trades are settled on a delivery vs. payment basis through the City's safekeeping agent. The City has no deposits with financial institutions; bank balances are swept daily into a money market account.Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Govemment Code Section 16429 under the oversight of the Treasurer of the State of California.
The fair value of the City's investment in this pool Is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).
The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.4. Capital Lease Receivable The Redevelopment Agency has a direct financing lease arrangement with the State of California (the State) for a twelve-story office building.
The lease term Is for thirty years and the State takes ownership of the facility at the conclusion of that term. The lease calls for semi-annual payments not less than the debt service owed by the Redevelopment Agency on the lease revenue bonds issued for the purchase and renovation of the building.
The future minimum lease payments to be received are as follows: 8W8 Concentration on Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stated above. Investments in any one issuer that represent 5% or more of total City investments are as follows: FHLB FHLMC FNMA Investment Toye Federal Agency Securities Federal Agency Securities Federal Agency Securities Reported Amount$183,654 39,060 57,785 2006 2007 2008 2009 2010 Thereafter Total Due Less: amount applicable to interest Total capital lease receivable
$2,249 2,273 2,298 2,324 2,355 38,990 50,489 (23.339)W2Z7 l0 Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a govemment will not be able to recover the value of 39 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands)
- 5. Capital Assets The following Is a summary of changes in the capital assets during the fiscal year ended June 30, 2005.Governmental activities:
Capital assets, not being depreciated:
Land Construction In progress Total capital assets not being depreciated Capital assets being depreciated:
Buildings Improvements other than Buildings Machinery and Equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation for.Buildings Improvements other than Buildings Machinery and Equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net Governmental activities capital assets, net Business type activities:
Capital assets, not being depreciated:
Land Construction in progress Total capital assets not being depreciated Capital assets being depreciated:
Buildings Improvements other than Buildings Machinery and Equipment Total capital assets being depreciated Beginning Balance$116,925 17.145 134O070$7,617 24.760 32.377 1,410 3,683 28.454 Deletions/
Tansfers$ (67)(2.634)(271z1 Ending$124,475 39.271 1163346 Business type activities (cont): Less accumulated depreciation for Buildings Improvements other than Buildings Machinery and Equipment Total accumulated depreciation Total capital assets being depreciated, net Business type activities capital assets, net (298,352)(20,677)(1L974)175_2.10 2,275 Beginning Balance Additions Deletions/
Ending Transfers Balance (64,973)(60,404) (4,569)(318,854)(4128,25 593,819 51.826 (495) 645.150 a1092M 77,813 (8,422) 69,391 Estimated useful lives used to compute depreciation are as follows: 45,088 54,020 438.800 615.721 (2,902)(5,897)46,498 54,801 461,357 632.047 Buildings and Improvements Improvements other than Buildings Machinery and Equipment Infrastructure 30-50 years 20-99 years 3-15 years20-100 years (24,987) (1,599) 128 (26.458)(24,413) (1,782) -(26,195)(41,137) (4,227) 2,739 (42,625)(1201 (041 5,897 (156.5451 (2248 8.764 (251.8231 373,173 15Q0 (8.487) 380.224 Depreciation expense was charged to functions of the government as follows: Beginning Balance$ 32,725 66.904 99.629 195,466 748,035 37.450 980,951 Deletions/
Ending Addtilons Transfers Balance Governmental activities:
General government Public safety Highways and streets, including depreciation of general infrastructure assets Culture and recreation Total depreciation expense -governmental activities Business type activities:
Electric Water Sewer Refuse Special Transportation Airport Public Parking Total depreciation and amortization expense -business type activities
$ 790 2,780 11,806 2,663$15,116 6,314 4,715 664 301 242 68$ 1,051 150.679 10,020 63,866 5,160$ (2,514)(87.232)(243)(2,527)(2,7701$31,262 132.865 205,486 811,658 40.083 1,57227 40 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2005 (amounts expressed in thousands)
- 6. Risk Management Changes in Long-Term Obliqations:
The following is a summary of changes in long-term obligations during the fiscal year.Governmental Activities:
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.
Property insurance coverage has a limit of $100,000, with a deductible of $50. Earthquake and flood insurance coverage has a limit of $15,000, with a deductible of 5% for earthquake and 2% for flood.Workers' compensation insurance coverage has a limit of $25,000, with a deductible of $4,000 per occurrence.
The City carries commercial insurance up to $23,000 for general and auto liability claims greater than $3,000 per occurrence.
There were no claims settled in the last three fiscal years that exceed insurance coverage.
Internal service funds have been established to account for and finance the uninsured risks of loss.All funds of the City participate in the Risk Management program and make payments to the Internal Service Funds based on actuarial estimates of the amounts needed to fund prior and current year claims and incidents that have been incurred but not reported.
Interfund premiums are accounted for as quasi -external transactions and are therefore recorded as revenues of the Internal Service funds in the fund financial statements.
Beginning Balance Due Ending Within Balance One Year Additions Reductions Redevelopment Agency bonds General Obligation Bonds Pension Obligation Bonds Certificates of Participation Capital leases Notes Payable Compensated Absences Total$131,590 $25,693$13,259 $144,024 20,285 5 20,280 89,540 60,000 1,260 148,280$ 3,695 410 1,810 1,715 1,764 458 58,706 8,938 11,057 133 1,370 1,640 412 57,336 7,431 10,645 29Q0 12.936 11,560 30o677 10.992 762O 19J=~Business type activities:
Changes in the funds' claims liability amounts are: Unpaid Claims, June 30, 2003 Incurred claims Claim payments Unpaid Claims, June 30, 2004 Incurred claims (including IBNR's)Claim payments Unpaid claims, June 30, 2005 Workers'Comoensation
$10,353 3,442 Unemployment Compensation Public Liability$ 76 $7,936 $18,365 3,762 7,204 Revenue Bonds Notes Payable Capital Leases Water Stock Acquisition Rights Total Beginning Balance$440,970 11,066 439 1.039 Additions Reductions
$21,389 607 47 Ending Balance$419,581 10,459 392 Due Within One Yer$22,210 618 59 (2,678)$11,117 3,083 (3.053)24- A 1 ,01 150$ 76 $6,091 $17,284-3,886 6,969-(3651) (6704)L .. a .i £IZIW Current Refunding:
On November 30, 2004, the City of Riverside Redevelopment Agency sold$24,115 of Housing Set-Aside Tax Allocation and Refunding Bonds with a true interest cost of 4.65% to provide project funds and to refund $10,200 of previously outstanding Housing Set-Aside Tax Allocation Bonds. The Agency completed the current refunding to reduce aggregate debt service payments over the next 20 years by $3,276 and to obtain an economic gain (difference between present value of the old and new debt service payments)of $1,493.7. Long-Term Obligations 41 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands)
In prior years the City defeased certain Revenue and Tax Allocation Bonds by placing the proceeds of the new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's financial statements.
At fiscal year end $2,385 of bonds outstanding are considered defeased.Long-Term Obligations at June 30, 2005: Principal Outstandinq Water Revenue Bonds: Electric$98,730 1998 Electric Revenue Bonds (partial refunding issue); $63,165 serial bonds, 4.25% to 5.38%, due in annual installments from $4,650 to$7,085 through October 1, 2013; $35,565 term bonds, 5%, due October 1, 2022$47,215 2001 Electric Revenue Bonds; 2.9% to 5.25%, due in annual installments from $2,855 to $4,750 through October 1, 2016.$75,405 2003 Electric Revenue Bonds; 2.0% to 5.0%, due in annual installments from $1,035 to $8,535 through October 1, 2013.$27,500 2004 Electric Revenue Bonds; Series A fixed rate bonds, 4.0% to 5.25%, due in annual installments from $2,615 to $3,695 through October 1, 2014.$82,500 2004 Electric Revenue Bonds; Series B Auction Rate Securities, variable rate subject to weekly repricing (rate at June 30, 2005 was 2.0%), due in annual installments from $1,250 to $7,000 through October 1, 2029.Principal Outstanding
$ 89,085 44,360 67,665 27,500$69,840 1991 Water Revenue Bonds; $25,050 serial bonds, 4.25% to 9.0%, due in annual installments from$675 to $3,100 through October 1, 2002; $25,900 Capital Appreciation Bonds, due in annual Installments from $3,235 to $3,240 from October 1, 2003 to October 1, 2010; (partially advance refunded in 1998)$4,710 1994 Water Revenue Bonds (FARECAL Pool);$2,420 serial bonds, 4.75% to 5.90%, due in annual Installments from $135 to $255 through June 1, 2010;$2,290 term bonds, 6.0%, due June 1, 2017$30,965 1998 Water Revenue Bonds (partial refunding issue); $15,055 serial bonds, 4.0% to 5.38%, due in annual installments from $205 to $4,055 through October 1, 2013; $15,910 term bonds, 5%, due October 1, 2027$20,000 2001 Water Revenue Bonds; 2.6% to 5.0%, due in annual installments from $345 to $1,230 through October 1, 2031 Subtotal Less: Unamortized bond discount Sewer$49,145 1993 Sewer Revenue Refunding Serial Bonds;4.0% to 7.0%, due in annual installments from $335 to$4,745 through August 1, 2012 Add: Unamortized bond premium 3,425$19,425 29,230 18,935 71,015 (4.121)$66,894$ 31,270 258 31,528 Subtotal 311,110 10,049$321,159 Total Revenue Bonds Add: Unamortized bond premium Remaining revenue bond debt service payments will be made from revenues of the Electric, Water, and Sewer Utility Enterprise funds. Annual debt service requirements to maturity are as follows: 42 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2005 (amounts expressed in thousands)
Fiscal Year 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2025 2026-2030 2031-2035 Premium (Discount)
Total Fiscal Year 2006 2007 2008 2009 2010 2011-2015 Premium Total Electric Utility Fund Prini Interest Total$ 15,015 $ 13,353 $ 28,368 18,215 12.728 30.943 18,935 11,983 30,918 19,795 11,133 30,928 20,725 10,197 30,922 98,580 35,840 134,420 49,935 17.536 67,471 37,460 8,814 46,274 32,450 2.701 35,151 Water Utility Fund Princal Interest$4,075 $ 2,565 4,115 2.530 4.155 2,492 4,190 2,451 4,245 2,407 23,370 9,777 10.245 5.021 6,955 3,320 7,265 1,427 2,400 122 Total$ 6,640 6,645 6,647 6.641 6,652 33,147 15,266 10.275 8.692 2,522 1004- 10,049 (4,111$124=g Principal$3,120 3,285 3,515 3,760 4,020 13,570 258 Sewer Utility Fund Interest$1,780 1,584 1,346 1.092 819 1,040 (4,1211$4,900 4,869 4,861 4,852 4,839 14,610 258$6,055 1999 University Corridor/Sycamore Canyon Merged Project Area, Subordinate Tax Allocation Bonds, Series B; $1,900 serial bonds, 4.5% to 5.5%due in annual installments from $35 to $190 through September 1, 2013; $1,135 term bonds at 5.5% due September 1, 2018; and $3,020 term bonds at 5.625%due September 1, 2027$20,395 1999 Casa Blanca Project Area, Tax Allocation Bonds, Series A; $8,925 serial bonds, 3.4%to 4.7% due in annual installments from $455 to $780 through August 1, 2014; $2,565 term bonds at 4.75%due August 1, 2017; $4,035 term bonds at 4.75% due August 1,2021; and $4,870 term bonds at 5.0% due August 1, 2025.$4,550 Arlington Redevelopment Project, 2004 Tax Allocation Bonds, Series A; $420 term bonds at 3.8%due August 1, 2014; $615 term bonds at 4.6% due August 1, 2024; and $3,515 term bonds at 4.7% due August 1, 2034$2,975 Arlington Redevelopment Project, 2004 Tax Allocation Bonds; Series B: 5.5% due in annual installments from $85 to $235 through August 1, 2024$26,255 State of California Department of General Services Project, 2003 Lease Revenue Refunding Bonds, Series A; 2.0% to 5.0% due in annual installments from $545 to $2,230 through October 1, 2024$4,810 State of California Department of General Services Project, 2003 Lease Revenue Refunding Bonds, Series B; $310 serial bonds 1.20% to 1.42%through October 1, 2004; $620 term bonds at 3.090%due Oct. 1, 2008; $1,110 term bonds at 4.340% due Oct. 1, 2014 and $2,770 term bonds at 5.480% due Oct. 1, 2024 Principal Outstanding 5,575 17,965 Redevelopment Agency Bonds: Principal OutstandinM 4,550 2,975$13,285 1991 Public Financing Authority Revenue Bonds, Series A, Multiple Project Areas; $1,470 serial revenue bonds 7.15% to 7.6%, due in annual installments from $100 to $145 through February 1, 2003; and $4,175 term bonds, 8.0%, due in annual installments from $155 to $450 through February 1, 2018 (portion not refunded)$17,025 1999 University Corridor/Sycamore Canyon Merged Project Area, Tax Allocation Bonds, Series A;$6,205 serial bonds, 3.4% to 4.7% due In annual installments from $40 to $570 through August 1, 2014;$4,810 term bonds at 4.75% due August 1, 2021; and$6,010 term bonds at 5.0% due August 1, 2027 24,965$ 200 15,550 4,500 43 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands)
$40,435 Merged Project Area, 2003 Tax Allocation and Refunding Bonds; $32,720 serial bonds 2.0% to 5.25%due in annual Installments from $1,220 to $1,955 through August 1, 2023; and $7,715 term bonds at 5.0% due in annual installments from $195 to $2,060 through August 2034$24,115 2005 Housing Set-Aside Tax Allocation Bonds;$17,025 serial bonds 3.0% to 4.625% due in annual installments from $505 to $1,165 through August 1, 2025; $2,425 term bonds at 5.0% due August 1, 2028;and $4,665 term bonds at 4.85% due August 1, 2034$1,465 California Statewide Communities Development Authority 2005 Taxable Revenue Bonds, Series A (CRA/ERAF Loan Program);
3.87% to 5.01% due in annual Installments of $105 to $180 through August 1, 2015 Subtotal Add: Unamortized bond premium Total Redevelopment Agency Bonds Principal Outstanding 39,215 24,115 General Obligation Bonds: Principal Outstanding
$20,000 Fire Facility Projects, Election of 2003 General Obligation Bond; 3.0% to 5.5%, due in annual installments from $410 to $1,740 through August 1, 2024 Add; Unamortized bond premium Total General Obligation Bonds$20,000 280 S20. 280 Remaining general obligation bond debt service payments will be made from unrestricted revenues of the General fund. Annual debt service requirements to maturity are as follows: 1,465 141,075 2,949 Fiscal Year 2006 2007 2008 2009 20010 2011-2015 2016-2020 2021-2025 Premium Total$ 410 515 545 590 625 3,920 5,600 7,795 280$g0.280 Interest$ 886 873 857 840 819 3,674 2,698 1,097 Total$1,296 1,388 1,402 1,430 1,444 7,594 8,298 8,892 280 E32 02 Remaining debt service will be paid by the Redevelopment Agency Debt Service Funds from future property tax revenues.
Annual debt service requirements to maturity are as follows: Fiscal Year 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2025 2026-2030 2031-2035 Premium Total Principal$ 3,695 3,970 4,145 4,305 4,485 25,740 31,905 39,830 16,025 6,975 2,949 Interest$6,514 6,233 6,102 5,961 5,807 26,079 19,724 10,765 3,282 745 Total$10,209 10,203 10,247 10,266 10,292 51,819 51,629 50,595 19,307 7,720 2.949 Pension Obligation Bonds: Principal Outstandinag
$89,540 California Statewide Community Development Authority (Public Safety) 2004 Taxable Pension Obligation Bond; 2.65% to 5.896%, due in annual installments from $1,125 to $10,715 through June 1, 2023$30,000 2005 Taxable Pension Obligation Bonds Series A4 3.85% to 4.78%, due in annual installments
$630 to $3,860 through June 1,2020$88,280 30,000 44 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2005 (amounts expressed in thousands)
$30,000 2005 Taxable Pension Obligation Bonds Series B (Auction Rate Securities);
variable rate subject to weekly repricing (rate at June 30, 2005 was 2.0%), due in annual installments from $1,475 to $6,750 through June 1, 2025.Total Pension Obligation Bonds Principal Outstandina 30,000 Remaining certificates of participation debt service payments will be made from unrestricted revenues of the Debt Service funds. Annual debt service requirements to maturity are as follows: Remaining pension obligation bond debt service payments will be made from unrestricted revenues of the General fund. Annual debt service requirements to maturity are as follows: Fiscal Year 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2025 2026-2030 2031-2035 Premium Total$1,715 1,785 1,870 1,950 2,045 6,840 8,460 10,190 10,585 10,540 1,356 Interest$2,658 2,585 2,505 2,419 2,319 10,567 8,879 6,554 4,010 1,086$43-582ýTotal$ 4,373 4,370 4,375 4,369 4,364 17,407 17,339 16,744 14,595 11,626 1,356$10.91 Fiscal Year 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2025 Total Principal$ 1,810 2,020 2,480 2,985 3,535 27,665 50,000 57,785 Interest$ 7,553 7,719 7,642 7,539 7,406 33,825 24,353 7,941 Total$ 9,363 9,739 10,122 10,524 10,941 61,490 74,353 65,726 Principal Outstandina Contracts
-Enterprise Funds: Principal Outstandina Certificates of Participation:
$6,360 1999 Municipal Improvements Corporation Certificates of Participation; 6.0% to 7.6%, due in annual installments from $310 to $815 through April 1, 2010$53,185 2003 Riverside Public Financing Authority Certificates of Participation; 2.0% to 5.0%, due in annual installments from $755 to $2,830 through September 1,2033 Subtotal Add: Unamortized bond premium Total Certificates of Participation
$3,550 Water stock acquisition rights payable on demand to various water companies, renewable through 2004 Notes Payable -Redevelopment Agency: These notes payable have been issued to promote development and expansion within the City's redevelopment areas.Pepsi Cola Bottling Company of Los Angeles, 10.5%, payable in net annual installments of $341, including principal and interest through June 2020 HUD Section 108 loan for University Village, 5.36% to 7.66%, payable in semi-annual installments beginning August 1, 1996 of$272 to $425 through August 1, 2015 2,988 52,430 55,980 1,5736 3,075 45 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2005 (amounts expressed In thousands)
HUD Section 108 loan for Mission Village Project. 6.15% to 6.72%, payable in semi-annual installments beginning August 1, 1999 of $110 to $420 through August 1, 2018 Principal Outstanding 3,965 Sewer fund loan from State of California for Headworks project, 1.803%, payable in net annual installments of$477,387, beginning November 6, 1999 through November 6, 2018 Principal Outstanding Note payable to California Housing Finance Agency, interest at 3%, payable in annual installments of $88 through 2013, for housing projects.Total notes payable -Redevelopment Agency Remaining notes payable debt service payments unrestricted revenues of the Redevelopment Agency.requirements to maturity are as follows: 617 Total notes payable -Sewer Fund Remaining notes payable debt service payments will be made from unrestricted revenues of the Sewer fund. Annual debt service requirements to maturity are as follows: will Ann Fiscal Year 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2025 2026-2030 Total Redevelopment Agency Principal Interest$ 458 $ 798 488 769 523 738 559 704 600 667 3,575 2,656 2,386 1,464 777 932 1,279 430 be made from ual debt service Total$ 1,256 1,257 1,261 1,263 1,267 6,231 3,850 1,709 1.709 Principal Outstanding Fiscal Year 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2023 Total Principal$ 618 630 642 654 666 3,524 3,392 333 ilgQd~a Sewer Fund Interest$199 187 175 163 151 560 214 7 S1LSM Total$ 817 817 817 817 817 4,084 3,607 339$1231§Capital Leases: The City leases various equipment through capital leasing arrangements in the governmental and proprietary fund types. These activities are recorded for both governmental and business-type activities In the government-wide financial statements.
The assets and related obligations under leases in governmental funds are not recorded in the fund statements.
For proprietary funds, the assets and their related liabilities are reported directly in the fund.Amortization applicable to proprietary assets acquired through capital lease arrangements is included with depreciation for financial statement presentation.
The assets acquired through capital leases are as follows: Notes payable -Sewer Fund: Sewer fund loan from State of California for Cogeneration project, 2.336%, payable in net annual installments of $339,474, beginning January 29, 2003 through January 29, 2022$4,455 46 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands)
Asset Buildings Equipment Subtotal Less: Accumulated Depreciation Total Governmental Activities
$8,660 5,825 14,485 Business-Type Activities
$868 Following are required debt service ratios for the year ended June 30, 2005.The ratio measures operating income in relation to debt service. The City is in compliance with these ratios.1.658)Electric fund Water fund Sewer fund Minimum Debt Service Ratio Required 1.10 1.25 1.25 The future minimum lease obligations as of June 30, 2005 were as follows: Years Endinq June 30, 2006 2007 2008 2009 2010 2011-2012 Total Minimum lease payments Less: Amount representing interest (rates ranging from 2.5% to 9%)Total capital lease payable Governmental Activities
$1,955 1,883 1,723 1,469 535 517 8,082 (651)Business-type Activities
$86 73 92 75 51 428 (36)The following are legally required debt service cash reserves.
These amounts, at a minimum, are held by the City or fiscal agents at June 30, 2005: General Iona-term obligqations:
There are also a number of limitations and restrictions contained in Assessment Bond indentures.
The City believes they are in compliance with all significant limitations and restrictions.
- 8. Other Long-Term Obligations Assessment Districts Bonds (Not obligations of the City)As of June 30, 2005, the City has several series of Assessment District Bonds outstanding in the amount of $59,944. Bonds issued for improvements in certain special assessment districts, in accordance with the provisions of the Municipal Improvements Acts, are liabilities of the property owners and are secured by liens against the assessed property.
The City Treasurer acts as an agent for the property owners in collecting the assessments, forwarding the collections to bondholders and initiating foreclosure proceedings, if applicable.
Since the debt does not constitute an obligation of the City, it is not reflected as a long-term obligation of the City and is not reflected in the accompanying basic financial statements.
Conduit Debt Obligations Mortgage Revenue Bonds outstanding of $15,785 and Industrial Development Revenue Bonds of $11,275 are not included in the accompanying financial statements.
These bonds are special obligations of third parties and payable solely from and secured by a pledge of the receipts received from the acquired mortgage loans and certain other reserve funds and related monies. The bonds are not payable from any other revenues or assets of the City or Redevelopment Agency. Neither the faith and credit nor the taxing power of the City, the Redevelopment Agency, the State of California or any political subdivision thereof is pledged to the payment of the principal and interest on the bonds.Redevelopment Agency Certificates of Participation Total Enterprise funds: Electric Water Sewer Total$ 7,032 4,148$20,443 4,907 S 350 47 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2005 (amounts expressed in thousands)
- 9. Reserved Fund Balances: Reserved fund balances at June 30, 2005 for the General Fund and the Redevelopment Debt Service Fund consist of the following:
Advances To/From Other Funds: These balances consist of advances used to fund capital projects in advance of related financing/assessments and for other long-term borrowing purposes.The following table shows amounts advanced from funds within the City to other funds within the City at June 30, 2005: Reserved for: Encumbrances Interfund receivable Debt service Prepaid items Notes receivable Police Asset Forfeiture Fire bond Total reserved fund balance General Fund$8,918 33,715 176 70 523 1.085 i4.A Q Z Redevelopment Debt Service Fund$ -13,499 Receivable Fund General Payable Fund Electric Water Sewer Nonmajor governmental funds Nonmajor enterprise funds Workers' compensation
- Central stores *Central garage *Amount$13,690 5,890 3,768 5,163 3,532 247 259 1,166 10. Interfund Assets, Liabilities and Transfers Due From/To Other Funds: These balances resulted from expenditures being incurred prior to receipt of the related revenue source.The following table shows amounts receivable/payable between funds within the City at June 30, 2005: Redevelopment debt service Electric Water General General General 228 3 48 Receivable Fund General Payable Fund Nonmajor governmental funds Nonmajor enterprise funds Central stores *Amount$2,001 941 3,979 Sewer General Nonmajor governmental funds Nonmajor enterprise funds 968 8,000 1,760 Electric General 50 Nonmajor govermental funds Workers' compensation
- General 232 667 Total General Nonmajor governmental funds* Internal service funds Total* Internal service funds 48 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands)
Transfers In/Out: Transfers are used to (1) move revenues to the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, (3) move the remaining fund balances of closed funds to the General fund and (4) use unrestricted revenues collected in the General fund to finance various programs accounted for in the other funds in accordance with budgetary operations.
The following table shows amounts transferred to/from funds within the City as of June 30, 2005: Transfer In Fund General Redevelopment debt Service Transfer Out Fund Electric Water Nonmajor governmental funds Nonmajor governmental funds Amount$18,572 3,487 787 8,575 363 150 12. Litigation The City is a defendant in various lawsuits arising in the normal course of operations.
City management, based in part on the opinion of outside legal counsel, does not believe that the ultimate resolution of these matters will have a material affect on the financial position or results of operations of the City. Management also believes that adequate reserves exist in the internal service funds to cover outstanding lawsuits.On January 1, 2003, the City became a Participating Transmission Owner with the California Independent System Operator (ISO), entitling the City to receive compensation for use of its transmission facilities committed to the ISO's operational control. The compensation is based upon the City's Transmission Revenue Requirement (TRR) as approved by the Federal Energy Regulatory Commission (FERC). The California Investor Owned Utilities (IOU's), the California Department of Water Resources (CDWR), and the CPUC, among others, objected to various aspects of the City's TRR at the FERC. The City and the objecting parties submitted a settlement agreement for filing. The settlement agreement disposes of all City TRR issues except for CDWR's and CPUC's contention that the City is not entitled to its TRR for the majority of the transmission facilities committed to the ISO's control. After trial on this issue, the FERC Administrative Law Judge rendered a decision in favor of the City in March 2005. The objecting parties are appealing this decision to the full Commission.
It is unknown when the Commission will render its decision.
If the objecting parties prevail upon appeal, the City may have to refund to the ISO up to $26,600 collected through June 30, 2005.13. City Employees Retirement Plan (A) Plan Description.
The City of Riverside contributes to the California Public Employees Retirement System (CalPERS), an agent multiple employer public employee defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries.
CaIPERS acts as a common investment and administrative agent for participating public entities within the State of California.
Benefit provisions and all other requirements are established by state statute and City ordinance.
Copies of CalPERS annual financial report may be obtained from their executive office: 400 P Street, Sacramento, CA 95814.Electric Water Sewer General General General 172 Nonmajor governmental funds Nonmajor enterprise funds General Redevelopment debt service Nonmajor governmental funds 935 17,068 520 General Total 11. Deficit Fund Balance A deficit fund balance of $55 exists in the Library fund at fiscal year end.This deficit will be recovered through the normal course of business in the upcoming year 49 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands)(B) Funding Policy. Participants are required to contribute 8% (9% for safety employees) of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate; the fiscal year 2004-2005 rate was 12.340% for non-safety employees, and 31.248% for safety employees, of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by CalPERS.(C) Annual Pension Cost. For 2005, the City's annual pension cost of$28,948 for CalPERS was equal to its annual required contribution of$29,056 less the effect of amortization of the net pension asset of $108. The required contribution was determined as part of the June 30, 2002 actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 8.25% Investment rate of return (net of administrative expenses), (b) projected salary increases of 3.75% per year compounded annually, attributable to inflation, and (c) 3.5% expected long term inflation.
The actuarial value of CalPERS assets was determined using techniques that smooth the affects of short-term volatility in the market value of investments over a four-year period (smoothed market value). CalPERS unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis over 20 years.Three-year trend information for CalPERS: Schedule of funding for CalPERS (unaudited):
Entry Age Normal Actuarial Accrued Liability (AALU Unfunded/(Overfunded)
Actuarial Accrued uability (UAALl Actuarial Valuation Plan Date Actuarial Value of Assets Funded M2~Annual Covered Payroll UAAL as a % of Covered Paroll Misc. 6130/02 $498,057 507,610 Safety 6130/02 381,311 328,395 Misc. 6W30/03 568,712 511,281 Safety 6/30/03 413,125 329,673 Misc. 6130/04 611,841 537,352 Safety 6/30104 454,795 440,172 (9,553) 101.9 72,257 (13.2)52,916 86.1 41,038 128.9 57,431 89.9 75,838 75.7 83,451 79.8 44,611 187.1 74,488 87.8 77.960 95.5 14,623 96.8 48,635 30.1 During the year, the City issued Pension Obligation Bonds (POB) in the amount of $60,000 in order to partially fund the unfunded actuarial accrued liability (UUAL) for non-safety employees.
The projected actuarial certified unfunded liability for non-safety employees at June 30, 2005 was $73,400.Proceeds from the bonds of $59,434 were deposited with CalPERS which is recorded as a special item in the Statements of Changes in Revenues, Expenditures and Changes in Fund Balances for the funds affected.
A total of $147,842 of net pension assets, which includes the 2004 POB sourced deposit of $88,300, are included as a deferred charge in the Government-wide Statement of Net Assets. The deferred charge relating to the net pension assets will be amortized over 19 years in accordance with the method used by CalPERS for calculating actuarial gains and losses.14. Commitments and Contingencies Fiscal Year June 30.2003 2004 2005 Annual Pension Cost (APC)12,196 20,051 28,948 Percentage of APC Contributed 100%540%305%Net Pension Obligation (Asset)$0 ($88,300)($147,842)
A. Long-Term Electric Utility Commitments Intermountain Power Aaency The City's Electric Utility has entered into a Power Purchases Contract with the Intermountain Power Agency (IPA) for delivery of electric power. The City's share of IPA power is equal to 7.6%, or approximately 137.1 megawatts, of the generation output of IPA's 1,800 megawatt coal-fueled generating station, located in Central Utah. The contract expires in 2027 and the debt fully matures in 2024.50 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2005 (amounts exoressed in thousands)
The contract constitutes an obligation of the Electric Utility to make payments solely from operating revenues and requires payment of certain minimum charges, which are based on debt service requirements.
Such payments are considered a cost of production and are quantified below.IPA Southern California Public Power Authority Fiscal Year 2006 2007 2008 2009 2010 Thereafter Total Inter-mountain Power Proiect$ 22.532 22,361 22,847 22,087 23,026 269.997 LUZ=Palo Verde Nuclear Generating Preiect$ 830 825 825 825 688 4,812 Trans-mission System$ 6,968 7,192 6,693 6,575 6,329 1005.86 The Electric Utility is a member of the Southern California Public Power Authority (SCPPA), a joint powers agency. SCPPA provides for the financing and construction of electric generating and transmission projects for participation by some or all of its members. To the extent the Electric Utility participates in projects developed by SCPPA, the Electric Utility is obligated for its proportionate share of the project cost The projects and the Electric Utility's proportionate share of SCPPA's obligations are as follows: SCPPA Hoover Dam Upratina$ 708 704 704 704 703 Mead-Phoenix Trans-mission$ 132 259 260 259 259 2,871 Mead-Adelanto Trans-$1,388 2,816 2,819 2,814 2,818 30,744 Total$32,558 34,157 34,148 33,264 33,823 414.579 Take-or-pay commitments expire upon final maturity of outstanding bonds for each project. Final fiscal year maturities are as follows: Proiect Palo Verde Nuclear Generating Station Southern Transmission System Hoover Dam Uprating Mead -Phoenix Transmission Mead -Adelanto Transmission Terms of Take or Pay Commitments Percent Share 5.40%10.20%31.91%4.00%13.50%Entitlement 11.7MW 195.0MW 30.0MW 12.0MW 118.0MW Proiet Intermountain Power Project Palo Verde Nuclear Generating System Southern Transmission System Hoover Dam Uprating Mead-Phoenix Transmission Mead-Adelanto Transmission Final Maturity Date 2024 2017 2023 2017 2020 2020 As part of the take or pay commitments with IPA and SCPPA, the Electric Utility has agreed to pay its share of current and long-term obligations.
Payment for these obligations will be made from operating revenues received during the year that payment is due. A long-term obligation has not been recorded on the accompanying financial statements for these commitments.
Interest rates on the outstanding debt associated with the take or pay obligations range from 3.0% to 6.125%. The following schedule details the amount of principal and interest, which is due and payable by the Electric Utility for each project in the fiscal year indicated.
In addition to debt service, Riverside's entitlement requires the payment for fuel costs, operating and maintenance, administrative and general and other miscellaneous costs associated with the generation and transmission facilities discussed above. These costs do not have a similar structured payment schedule as debt service and vary each year. The costs incurred for 2004 and 2005 fiscal years are as follows: Fiscal Yea IPA EY 2005 21,362 1,906 1,714 MAP MPP Hoover Total 212 43 90 25,327 B. Other Commitments Power Purchase Agreements:
The City has executed five firm power purchase agreements for non-renewable power. The agreements are with Deseret Generation and Transmission Cooperative (Deseret) of Murray, Utah; CDWR; and Bonneville Power Administration (BPA). The minimum annual obligations under each of these contracts are shown in the table below.51 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands)
Minimum Obligations 2005-2006 Suoolier Deseret CDWR III CDWR IV BPA Caoaaitv$3,463 523 682 1.810 Enerav$1,839 Total$5,302 523 682 1.810 The agreement with Deseret is for five megawatts of capacity and associated energy from January 1, 1992, through December 31, 1994, then increasing to 52 megawatts of capacity and associated energy through December 31, 2009. A notice of termination of the power purchase agreement was provided to Deseret effective March 31, 1998, resulting in litigation that was settled on July 31, 1999. Under the terms of the settlement agreement, the notice of termination was rescinded and the power purchase agreement was amended to reflect substantial price reductions after fiscal year 2002 through the term of the agreement in 2009. In exchange, the Electric Utility paid Deseret $25 million from reserves, which is reflected on the Statement of Net Assets as unamortized purchase power. On July 1, 2002, the Electric Utility began to amortize the related price reductions, and will continue to amortize the remaining balance over the term of the agreement using the straight-line method. As of June 30, 2005, unamortized purchased power was $15,034 and the Electric Utility had recorded amortization of $3,341.There are two separate agreements with CDWR. The two agreements, CDWR III and IV are for the purchase of 23 and 30 megawatts of capacity and associated energy from May through October. CDWR III and CDWR IV are for a period of 15 years beginning June 1, 1996, subject to termination.
In early 2005, CDWR and the City disagreed upon whether the Power Sale Agreements III and IV were still in effect as of December 31, 2004. While CDWR believed the agreements were terminated, the City contended that CDWR did not provide proper notification under the terms of the power sale agreements.
During May and June, CDWR continued to provide power under the original terms of the contracts, pending staff's resolution of the dispute. On September 13, 2005, in order to maintain the City's long-term relationship with CDWR and to avoid costly litigation, City Council approved the contract amendments, effectively terminating the contract in 2007 and reducing the final two years of the contracts to a period of May through September.
An agreement with Bonneville Power Administration (BPA) is for a purchase of firm capacity and associated energy of 23 megawatts in the summer and 16 megawatts in the winter for a period of twenty years ending February 1, 2011. A second agreement with BPA was executed in 1996 and is for the purchase of firm capacity (50 megawatts during the summer months and 13 megawatts during the winter months) and associated energy beginning April 30, 1996 for twenty years. Effective May 1, 1998, these summer and winter capacity amounts increased to 60 and 15 magawatts, respectively, for the remainder of the second agreement On July 8, 2003, and June 6, 2003, the City Council and Public Utilities Board, respectively, adopted the Renewable Portfolio Standard to increase procurement of renewable resources to reach a target of 20 percent of the Utility's energy from renewable sources by 2015. The contracts in the following table were executed as part of compliance with this standard.
The Electric Utility has agreements with Bonneville Power Administration for the purchase of energy credits that add to the total renewable portfolio.
In the current year, renewable resources provided approximately 14 percent of the retail energy requirements, approximately 10 percent of the total power supply.Long-term renewable power purchase agreements:
Supplier Milliken Genco Mid Valley Genco Riverside County (Badlands Landfill)Wintec Salton Sea Total I=e Landfill Gas Landfill Gas Landfill Gas Wind Geothermal Maximum Contract 2.3MW 2.3MW 1.2MW 1.3MW 20.0MW Contract Exoiration 12/31/2007 12/31/2007 12/31/2008 4/30/2018 5/31/2013 Estimated Annual Cost for 2006$825 943 255 162 9.619$11-80 Under the terms of the renewable power purchase agreements, Riverside's financial obligation is only for actual energy delivered.
On August 23, 2005, the City Council approved an amendment to the Power Sales Agreement between Salton Sea and the City. The agreement increases the amount of renewable energy available to the City from the current 20 MW to 46 MW effective June 1, 2009 through May 31, 2020, at the same price under the current contract until 2013, with escalation thereafter based on an inflationary type index. Similar to other renewable power purchase agreements, the City is only obligated for purchases of energy delivered to the City.52 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2005 (amounts expressed in thousands)
Construction Commitments:
As of June 30, 2005, the Electric Utility had major construction commitments of approximately
$28,100 with respect to unfinished capital projects, of which$21,300 is for construction of an $85 million, 100 megawatt power plant Of these commitments, $1,400 is expected to be funded by others, $24,600 funded by bonds and $2,100 funded by rates.As of June 30, 2005, the Water Utility had major construction commitments of approximately
$648 with respect to unfinished capital projects, which is expected to be funded by rates.C. Jointly Governed Organizations On November 1, 1980, the City of Riverside joined with the cities of Los Angeles, Anaheim, Vernon, Azusa, Banning, Colton, Burbank, Glendale, Pasadena, and Imperial Irrigation District to create the Southern California Public Power Authority (SCPPA) by a Joint Powers Agreement under the laws of the State of California.
As of July 2001, the cities of Cerritos and San Marcos were admitted as members of SCPPA. In August 2003, the Authority rescinded the membership of the City of San Marcos, as the City no longer met the criteria for membership.
The primary purpose of the Authority is to plan, finance, develop, acquire, construct, operate and maintain projects for the generation and transmission of electric energy for sale to its participants.
The Authority is governed by a Board of Directors, which consists of one representative for each of the members. During the 2005 fiscal year, the Electric Utility paid approximately
$13,032 to SCPPA under various take-or-pay contracts, which are described in greater detail in Note 14A. These payments are reflected as a component of purchased power in the financial statements.
On July 1, 1990, the City of Riverside joined with the cities of Azusa, Banning and Colton to create the Power Agency of California (Agency) by a Joint Powers Agreement under the laws of the State of California.
The City of Anaheim joined the Agency on July, 1 1996. The primary purpose of the Agency is to take advantage of economies of scale resulting from the five cities acting in concert. The Agency has the ability to plan, finance, develop, acquire, construct, operate and maintain projects for the generation and transmission of electric energy for sale to its participants.
The Agency is governed by a Board of Directors (the Board), which consists of one representative for each of the members. The term of the Joint Powers Agreement is fifty years. On April 5, 2001 the Board placed the Agency in an inactive status, effective June 30, 2001. It can only be reactivated with authorization from the Agency Board.On July 1, 1993, the City of Riverside joined with the cities of Anaheim, Colton, Compton, Healdsburg, Los Angeles, Palo Alto, Pasadena, Redding, the North Marin Water District, the Northern California Power Agency, the Sacramento Municipal Utility District, and Turlock Irrigation District to create the Financing Authority for Resource Efficiency of California (FARECal).
The City of Santa Cruz joined in 1994, Trinity Public Utility District joined in 1996, and the cities of Azusa and Victorville joined in 2002. The primary purpose of FARECal is to issue bonds and use the proceeds to promote, advance, encourage and participate in conservation, reclamation and other programs that are designed to utilize energy or water resources more efficiently.
FARECal is administered by a Board of Directors currently represented by the cities of Anaheim, Colton, Palo Alto, Pasadena, Azusa, Riverside and Trinity Public Utility District D. Jointly-Owned Utility Project Pursuant to the Settlement Agreement with Southern California Edison (SCE) dated August 4, 1972, the City was granted the right to acquire a 1.79% ownership interest in San Onofre Nuclear Generating Station (SONGS) Units 2 and 3. Pursuant to the Settlement Agreement, SCE agreed to provide the necessary transmission service to deliver the output of SONGS to Riverside.
SCE and the City entered into the SONGS Participation Agreement which sets forth the terms and conditions under which the City, through the Electric Utility, participates in the ownership and output of SONGS. Other participants in this project include SCE, 75.05 percent; San Diego Gas and Electric Company, 20.00 percent; and the City of Anaheim, 3.16 percent Maintenance and operation of SONGS remains the responsibility of SCE, as operating agent for the City.SCE, as operating agent, has declared an *operating impairment' due to deterioration of the steam generators
("SGse), which would likely result in permanent shutdown of the plant in the 2009-2010 timeframe.
The estimated cost to replace the SGs is $680 million, of which approximately
$12.2 million would represent the City's share. The replacement is expected to enable plant operations through at least 2022, and perhaps beyond if Nuclear Regulatory Commission approval is obtained.
Although the City Council has approved participation in the replacement of the SGs, both the City of Anaheim and San Diego Gas and Electric Company have opted not to participate.
As a result, upon replacement of the SGs, Riverside will retain its 53 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2005 (amounts expressed in thousands) 1.79 percent share and SCE will assume the interest of those entities opting out, for a combined 98.21 percent interest in both units 1 and 2 at SONGS.There are no separate financial statements for the jointly-owned utility plant since each participants interest in the utility plant and operating expenses is included in their respective financial statements.
The Electric Utility's share of the capitalized construction cost and operating expenses is included in the financial statements.
As of June 30, 2005, Riverside's 1.79% share of the capitalized construction costs for SONGS totaled $132,912 with accumulated depreciation of $97,647. The Electric Utility made provisions during fiscal year 2005 for nuclear fuel bum of $991 and for future decommissioning cost of $1,581 (See Note 1). The Electric Utility's portion of current and long-term debt associated with SONGS is included in the accompanying financial statements.
As a participant in the SONGS, the Electric Utility could be subject to assessment of additional insurance premiums in the event of a nuclear incident at San Onofre or any other licensed reactor in the United States.E. Contingencies To comply with certain State and local regulations, the City is funding the costs of closure and "final capping" of the Tequesquite landfill located in the City. This area, comprised of approximately 120 acres, operated as a "Class II Sanitary Landfill" until its closure in 1985. During its operation, the landfill did not accept hazardous waste and no clean up and abatement or cease and desist orders have been issued to the City.The estimated costs as determined by an independent consultant and updated by the City's Engineering Department are associated with flood control upgrades, remediation of possible ground water contamination and control of methane gas. There Is the potential for these estimates to change due to inflation, deflation, technology, or change In application laws or regulations.
To fund the cost, the City imposed a landfill capping surcharge on customers effective August 1, 1988. The minimum unamortized estimated cost of $4,955 is recorded as a deferred charge in the accompanying financial statements of the Refuse fund and is being amortized on a straight-line basis over the remaining post closure period, currently 26 years. The estimated cost of meeting the State's requirements was increased by 2.2 million during 2002 based on the engineer's annual review of closure and post-closure maintenance costs. Additionally, payments made during the year of $399 reduced that liability to its June 30, 2005 balance of $3,723 as reflected in the balance sheet of the Refuse fund.15. Special Item In 1984 the City Council adopted a report by and recommendations of the Riverside Canal Abandonment Task Force, which outlined abandoning those portions of the Riverside Canal (*canalo) that do not serve any agricultural water conveyance purposes.
One critical component of the abandonment required significant construction of new storm drain facilities to carry water that would otherwise be carded in the canal. During the current fiscal year, the required construction by the Water Fund has been completed.
The remaining portions of the storm drain will be constructed in conjunction with a development project planned adjacent to the canal, and upon completion, the water fund will then abandon it's portions of the canal. These new facilities will be owned and operated by the Riverside County Flood Control District.As a result, the water fund has recorded a charge against operations in the current period of $3,014, comprising
$1,147 in current period and $1,867 in prior period construction costs.16. Subsequent Event On September 13, 2005, the City Council authorized the issuance of up to$130,000 Electric ($65,000 Series A and $65,000 Series B) and $65,000 Water, variable rate, Revenue and Refunding bonds, in the form of Auction Rate Securities, to finance capital improvement programs and refund certain existing Electric and Water bonds. $60,000 of Electric and $30,000 of Water revenue bonds will be used to finance the costs of certain improvements to the City's Electric and Water System as part of the Capital Improvement Program. The remaining portion will be used to refund all the outstanding 1994 Farecal bond issue and a portion of the outstanding 1998 and 2001 Electric and Water bond issues.The City Council also approved entering into synthetic interest rate swap agreements on the entire not-to-exceed
$130,000 Electric and $65,000 Water issuances.
Under the swap agreements, the City pays the counterparty a fixed rate of 3.201% on the Electric 2005 Series A, 3.204% on the Electric 2005 Series B, and 3.2% on the Water 2005 Revenue and Refunding bonds. In exchange the City receives a floating rate index equal to 62.68% of the London Interbank Offered Rate (LIBOR), plus 12 basis points.54 CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30. 2005 (amounts expressed in thousands)
Also on September 13, 2005. the City Council authorized a similarly structured synthetic rate swap agreement for the outstanding
$82,500 Electric 2004 Series B, Auction Rate Securities.
Under the swap agreement, the City pays the counterparty a fixed rate of 3.111% and in exchange the City receives a floating rate index equal to 62.68% of LIBOR, plus 12 basis points.Although pricing has been determined, the actual issuance and closing for the 2005 Revenue and Refunding bonds will occur on October 6, 2005.Various risks associated with these derivative instruments (including credit, counterparty, basis, and tax risk) have been identified and analyzed, and are considered acceptable by management, in order to hedge against rising interest rates and better manage the Electric and Water Utility's balance sheets.55
-I I-City of Riverside Combining Balance Shoot Nonmajor Governmental Funds June 30, 2005 (amounts expressed in thousands)
Assets Cash and investments Cash and investments at fiscal agent Receivables (net of allowances for uncollectibles):
Interest Property taxes Accounts Intergovernmental Notes Land & Improvements held for resale Total assets Liabilities and Fund Balances Liabilities Accounts payable Retainage payable Unearned revenue Deposits Due to other funds Advances from other funds Total liabilities Fund balances (deficits):
Reserved for encumbrances Reserved for notes receivable Reserved for land and improvements held for resale Unreserved.
designated for future operations Unreserved, undesignated Total fund balances (deficits)
Total liabilities and fund balances Special Revenue Housing & Redevelop-NPDES Air Quality Community ment Special Storm Ubrary Gas Tax improvement Development Agency Designation Drain Total$ 2,568 $ 9,430 $ 439 $ 133 $ 4,243 $ 1,666 $ -$ 18,479-6 12,702 12,708 362 12$ 2,942 101 492 4 2 2,304 5,662 31 7.240 16 315$ 10,023 $ 443 $ 8,107 106$ 24.322 $ 1,682 $ 315 152 362 2 3,123 12,902 106$ 47,834$ 1,088 753 13,260 10 1,445 3,170 19,726 141 $ 379 745 308 3$ 548 8 5,798$ 16 $7,154 10-S 1 2,548 2,997 111 1.565 (1,731)(55)$ 2,942--1,131-.622 1,124 3 8,107-314 7,180 315 1,368 1 710 734 87 2,924 87 3,861 134 3,670 305 (710)8,899 440$ 10,023 $ 443 $ 8.107 106 106 13,984 19,544 2,231 1,682 5,447 17,142 1,682 28,108$ 24,322 $ 1,682 $ 315 $ 47,834 continued 57 City of Riverside Combining Balance Sheet Nonnmajor Governmental Funds June 30, 2005 (amounts expressed In thousands)
Assets Cash and investments Cash and investments at fiscal agent Receivables (net of allowances for uncollactibles):
Interest Accounts Intergovernmental Prepaid Items Advances to other funds Land & improvements held for resale Total assets: Debt Service Riverside Municipal Debt Improvements Service Corporation
$ 47 $ 92 642 capital Projects Total$ 139 642 Capital Outlay$ 44.419 Special capital Improvement
$ 22.100 6.434 storm Drain$ 4,336 Transportation
$I 1 438 52 5,026 235 165 523 45 13 4 118$ 47 $ 735 $ 782 m210 WEMMNM$ 49,935 $ 29,457$ 4,398 $ 118 Uabillties and Fund Balances Uabilites Accounts payable Retalnage payable Unearned revenue Due to other funds Advances from other funds Total liabilities S .$-$$ 1,261 92 1,396$ 126 611 23 507 1,267$ $2 25 27 49 5,000 7,749 25 78 Fund balances Reserved for encumbrances Reserved for Interfund receivable Reserved for debt service Reserved for prepaid Items Unreserved, designated for future operations Unreserved, undesignated Total fund balances Total liabilities and fund balances 14,351 1.207 374 4 47 735 782 47 735$ 47 $ 735 I lMMNMM 782$ 782 27.467 368 42.186$ 49,935 523 13,183 13,277 28.190$ 29,457 3.289 706 4.373$ 4.398 40 40$ 118 58 City of Riverside Combining Balance Sheet No o Gowesnmena Funds June 30, 2005 (amounta expressed In thousand)Capia projects Redevelop.
ment Agency TotaW$ 22.937 $ 93.792 19.640 26.074 Penmanent Fund special$ 1,200 Asset Cash and invesbnents Cash end investments at fiscal agent Receivables (net of llowances for uncolctibles):
Interest Property Taxes Accounts Intergovemmental Notes Prepald items Advances to other funds Land & Improvements held for resale Total easets:~iabliitie and Fund Balances Liabilites Accounts payable Retanage payable Unearned revenue Deposits Due to other funds Advances from other funds Total iabilites Fund balances Reserved for encumbrances Reserved for interfund receivable Reserved for debt service Reserved for library services Reserved for prepaid Items Reserved for notes receivable Reserved for land and Improvements held for resale Unreserved.
designated for future operations Unreserved, undesignated Total fund balances Total Ilab"*es and fund balances 225 106 505 4.222 3.829 228 6.280$ 57.972 943 171 5.814 4=222 4.352 232 8.280$ 141,880 $ 1,200 I-Total Noninwor Goveonmentai Funds$ 113,610 39.424 1.096 382 173 8.937 17,124 4,352 232 6.386$ 191.696$ 3.67 $ 5.058 $28 731 3.891 5.382 34 34 556 6,832 11,832 14.452 23.571$6.144 1.484 18.622 1,983 228 3.829 427 6.280 27.745 3.028 43,520$ 57.972 17.915 232 4,352 427 6.280 71,684 17.419 118.309 S 141,880 1.073 127 1.200 1 1,200 2.001 15,002 43.297 20.639 232 782 1.073 4.352 614 6.386 91,355 22868 148,399$ 191.696 59 City of Riverside Combining Statement of Revenues, Expenditures, and Changes In Fund Balances Nonmajor Governmental Funds For the fiscal year ended June 30, 2005 (amounts expressed in thousands)
Special Revenue Housing and Redevelop-Community ment Development Agency Ubrary Gas Tax Air Quality Improvement Special Designation NPDES Storm Drain Revenues Taxes Intergovernmental Charges for services Fines and forfeitures Special assessments Rental and investment income Miscellaneous Total revenues Expenditures Current: General government Culture and recreation Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses)Transfers in Transfers out Proceeds from issuance of long-term obligations Sale of capital assets Total other financing sources (uses) before special item Special item -pension contribution Net Change in fund balances Fund balances (deficits)
-beginning Fund balances (deficits)
-ending$ 4,796 191 8 210 15 25 5,245 7,820 7,820 (2,575)$5.708$-$ -$ 4,248 $331 8,984 -$178 24 5,910 1,168 4,379 5,547 363 8 339 63 1,998 11,045 167 953 21 188 151 9,475 10,428 617 297 317 4,862 860 941 1,801 3,061 200 (2,517)12,700 (170)10,213 13,274 33 127 160 2C 735 59 59 Total-$ 9,044 15,214 8 210 i5 595 594 2,491 95 28,156 10 3,348 7,820 5 14.931 15 26,099 0 2,057 160 (657)(657)(497)11 31 28 497 1,232 (2,524)(3.807)3,812$ (55)363 8,536$ 8,899 (617)280 935 (3.174)12,700 327 10,788 (3,141)9,704 18,404$ 28,108 continued 151 289$ 440 3,868 2.179 (280)$ 17,142 $ 1.682 60 City of Riverside Combining Statement of Revenues, Expenditures, and Changes In Fund Balances Nonmajor Governmental Funds For the fiscal year ended June 30,2006 (amounts expressed in thousands)
Debt Service Revenues Taxes $Ucenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Rental and investment income Miscellaneous Total revenues Expenditures Current General government Culture and recreation Capital outlay Debt service: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (use")Transfers in Transfers out Proceeds from issuance of long-term obligations Sale of capital assets Total other financing sources (uses)Net Change in fund balances Fund balances (deficits)
-beginning 4 Fund balances -ending $ 4 Debt Service Riverside Municipal improvements Corporation Totals Capital Projects Special Capital Capital Outlay Improvement Storm Transportation Drain Projects$-$$$5,961 1.054 10,519 1 898 899 1 898 899 1,527 811 236 13.093 525 162 6,648 32 82 79 1,247 352 352 7 7 56 38 6,656 920 290 16,506 570 570 311 311 888 888 1 10 11 16,562 (3,469)6,694 (46)520 (130)920 327 (520)(520)(193)4.566$ 4.373 290 62 62 (22)$ 40 continued 1 10 11 6 725 771$7 735 $ 782 382 382 (3,087)45,273$ 42.186 390 344 27,846$ 28,190 61 City of Riverside Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the fiscal year ended June 30, 2005 (amounts expressed in thousands)
Capital Projects Redevelop-ment Agency Total Revenues Taxes Licenses and pennits Intergovernmental Charges for services Fines and forfeitures Special assessments Rental and investment income Miscellaneous Total revenues Expenditures Current General government Culture and recreation Capital outlay Debt servne: Principal Interest Total expenditures Deficiency of revenues under expenditures Other financing sources (uses)Transfers in Transfers out Proceeds from issuance of long-term obligations Sale of capital assets Total other financing sources before special item Special Item -pension contribution Net Change in fund balances Fund balances -beginning Fund balances -ending 917 13 1,240 1,572 3,742 3,739 9,063 12802 (9,060)17,068 (6,058)1,424 5,429 17,863 (787)8,016 35,504$ 43.520 7,015 11,788 13 1,559 2,658 2,049 25,082 3,833 33,435 37,268 (12,186)17,588 (6,708)1,424 5,811 18,115 (787)5,142 113,167$ 118,309 Permanent Fund Total Nonmajor Library Governmental Special Funds$ $ 9,044 7,015 27,002 8 223 2,154 27 4,178 116 4,656 143 54,280 162 7,188 7,982 48,366 570 311 162 64.417 (19) (10,137)(19)1,219 S 1,200 18,523 (9,882)14.124 6.138 28,903 (3,928)14,838 133,561$ 148,399 62 City of Riverside Schedule of Revenues, Expenditures and Changes In Fund Balances -Budget and Actual Nonmajor Governmental Funds For the fiscal year ended June 30, 2005 (amounts expressed In thousands)
Special Revenue Library Gas Tax Air Quality Improvement Variance Revenues Taxes Ucenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Rental and Investment Income Miscellaneous Total revenues Expenditures Current General government Culture and recreation Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses)Transfers In Transfers out Sale of capital assets Total other financing sources Special Item -pension contribution Net change in fund balances Fund balances, beginning Fund balances, ending Final Budget 4,468 276 9 200 14 115 5,082 9,606 9,606 (4,524)735 735 (3,789)3,812$ 23 Variance to Final Final Actual Budget Budget to Final Final Actual Budget Budget to Final Actual Budget Variance$ 4,796 191 8 210 15 25 5,245 7.820 7,820 (2,575)735 497 1,232 (2,524)(3,867)3,812 T (55)$ 328 $(85) 5,050 (1)10 1 250 (90)163 5,300 1,179 1,786-10,785 1,786 11,9864 1,949 (6,664)497 497 (2,524)(78) (6,664)8,536$ (78) $ 1,872 63$5,708$658$473$331 178 24 5,910 (72)24 610 1,168 11 4,379 5,547 363 363 8,536$ 8.899 6,406 6,417 7,027 7,027 7,027 473 289 102 391 82 82 289$ 371 8 339 167 21 188 151 151 289$ 440$(142)8 (134)122 81 203 69 69$ 69 continued City of Riverside Schedule of Revenues, Expenditures and Change" in Fund Balances -Budget and Actual Nonmajor Governmental Funds For the fiscal year ended June 30, 2006 (amounts expressed In thousands)
Special Revenue Housing & Community Development Variance Redevelopment Agency Variance Special Designation Variance Final Budget to Final Final Actual Budget Budget to Final Final Actual Budget Budget to Final Actual Budget Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Rental and investment income Miscellaneous Total revenues Expenditures Current General government Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses)Transfers in Transfers out Proceeds from issuance of long-term obligations Sale of capital assets Total other financing sources (uses) before special item Special item -pension contribution Net change In fund balances Fund balances, beginning Fund balances (deficits), ending$ -$17,058 8,984 19 63 2,044 1,998 19,121 11,045 1.072 953 18,078 9,475 19,150 10,428 (29) 617-(617)(29) -$ (29) $$(8,074)44 (46)(8,076)119 8.603 8,722 646 (617)29$ 29 64$ 3.360 $ 4.248 $888 $-$$57 65 3,482 988 14,998 15,986 (12,504)200 (2,517)12,700 10,383 (2,121)3,868$ 1,747 297 317 4,862 860 941 1,801 3,061 200 (2,517)12,700 (170)10,213 13,274 3,868$ 17,142 240 252 1,380 128 14,057 14,185 15,565 (170)(170)15,395$ 15,395 35 35 35 (657)(657)(622)2,179$ 1,557 33 127 160 160 (657)(657)(497)2,179$ 1,682 (2)127 125 125 125$ 125 City of Riverside Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Nonmajor Governmental Funds For the fiscal year ended June 30, 2005 (amounts expressed in thousands)
Special Revenue Capital Projects NPDES Storm Drain Capital Outlay Special Capital improvements Final Budget Variance to Final Actual Budget Final Budget Variance to Final Final Actual Budget Budget Variance to Final Actual Budget Revenues Licenses and permits Intergovernmental Special assessments Rental and investment Income Miscellaneous
.$595 397-$-24,656 198 350-500 157 10,519 1,527 811 236$ $ $ 5.961 (14,137) 365 1,177 311 525 79 22 162$ 5.961 (365)525 140 Total revenues 397 595 198 25,663 13,093 (12,570) 387 6,648 6,261 Expenditures Current General government Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures 447 200 247 123 56 93 115 (22) 66.306 16,506 540 315 225 66.429 16,562 67 49,800 49,887 21,120 21.120 38 6,656 6,694 (38)14,464 14,426 (143) 280 423 (40,766) (3,469) 37.297 Other financing sources (uses)Transfers in Transfers out Sale of capital assets Total other financing sources Net change in fund balances Fund balances (deficits), beginning Fund balances (deficits), ending (20,733) (46) 20,687 520 520-(130) (130)520 390 (130)* -382 382* -382 382 (143)280 423 (40,766) (3,087)37,679 (20,213)344 20,557 (280)$ (423)(280)$45,273 45,273 27,846 27.846$ 423 $ 4,507 $ 42,186 $ 37,679 $ 7,633 $ 28,190 $ 20.557--MM1MX- = MMM1==M -65 City of Riverside Schedule of Revenues, Expenditures and Changes In Fund Balances -Budget and Actual Nonmajor Governmental Funds For the fiscal year ended June 30, 2005 (amounts expressed in thousands)
Capital Projects Storm Drain Transportation Revenues Licenses and permits Intergovernmental Fines and forfeitures Special assessments Rental and investment income Miscellaneous Total revenues Final Budget$ 150 70 38 258 Actual$ 1.054 32 82 79 1,247 Variance to Final Budget$ 904 (38)44 79 989 Final Budget$322 322 Actual Variance to Final Budget Redevelopment Agency Variance Final to Final Budget Actual Budget$ -$ $352 30 352 30 Expenditures Current General government Culture and recreation Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses)Transfers in Transfers out Proceeds from Issuance of long-term obligations Sale of capital assets Total other financing sources (uses) before special item'Special item -pension contribution Net change in fund balances Fund balances (deficits), beginning Fund balances (deficits), ending 3,468 920 2,548 384 290 94 3,468 920 2,548 384 290 94 (3,210) 327 3,537 (62) 62 124 1.268 1.149 114 2,531 4,977 37,719 42.696 (40,165)10,418 (6,058)1,425 5,785 (34,380)35,504$ 1,124 917 13 1,240 1,572 3.742 3,739 9,063 12.80Z (9,060)17,068 (6,058)1,424 5,429 17,863 (787)8,016 35,504$ 43,520 (351)13 91 1,458 1,211 1,238 28,656 29,894 31,105 6,650 (1)5,429 12,078 (787)42,396$ 42,396 (520)(520)(3,730)(520) -(520) --(62) 62.124 (193) 3,537 (82) 62 124 4,586 4,566 -(22) (22) e$ 838 $ 4,373 $ 3.537 $ (84) $ 40 $ 124 66 City of Riverside Combining Statement of Not Assets Nonmajor Enterprise Funds June 30, 2006 (amounts expressed In thousands)
Trans- Public portation Parklng Assets Current assets: Cash and investments Receivables (net of allowances for uncollectibles)
Interest Utility billed Utility unbilled Accounts Intergovernmental Prepaid items Restricted assets: Cash and cash equivalents Total current assets Non-current assets: Deferred charges Capital assets: Land Buildings Accumulated depreciation-buildings Improvements other than buildings Accumulated depreciation-Improvements other than buildings Machinery and equipment Accumulated depreciation-machinery and equipment Construction in progress Total non-current assets Airport Refuse Total$123 $4,778 $$ 2,301 $4 94 428 596 67 7,202 98 428 596 271 2,130 1 161 43 1,664 466 1_ 3,217 3,217 1,834 9,180 467 2,462 13,943 256 7,061 2,114 (770)6,853 (2,692)276 (117)4,893 17,874 6,349 671 22 (6)188 2,103 2,373 (1,693)325 (325)422 (416)16,666 19,643 8,325 (5,555)1,653 (894)7,464 9,164 4,509 (2,469)7,178 (3,017)10,676 (6,982)21,567 48,090 62,033 continued 8 9,119 1,454 Total assets 19,708 18,299 1,921 22,105 67 City of Riverside Combining Statement of Net Assets Nonmajor Enterprise Funds June 30,2005 (amounts expressed In thousands)
Liabilities Current liabilities:
Accounts payable Accrued payroll Unearned revenue Due to other funds Capital leases-current Total current liabilities Airport Refuse Trans-portation Public Parking Noncurrent liabilities:
Capital leases Advances from other funds Landfill capping Total noncurrent liabilities Total liabilities 717 56 101 17 891 217 508 725 1,616 14,221 3,871$ 18.092 508 675 12 142 117 284 1,183 555 1,193 503 32 1 657 Total 1,740 905 219 941 17 3,822 217 5,292 3,723 9.232 13,054 20,845 3,217 24,917$ 48,979 2.917 3.723 6,640 7,823 1,261 3,217 5,998$ 10,476 677 677 1,232 1,190 1,190 2,383 Net assets Invested In capital assets, net of related debt Restricted for other purposes Unrestricted Total net assets 783 4,580 (94) 15,142$ 689 $ 19,722 68 City of Riverside Combining Statement of Revenues, Expenses, and Changes In Fund Not Assets Nonmajor Enterprise Funds For the Year Ended June 30, 2005 (amounts expressed in thousands)
Trans-Portatson Operating revenues: Charges for services Operating expenses: Personal services Contractual services Maintenance and operation General Materials and supplies Insurance Depreciation and amortization Total operating expenses Operating income (loss)Nonoperating revenues (expenses):
Operating grants Interest Income Other Loss on retirement of capital assets Interest expenses and fiscal charges Total nonoperating revenues Income (loss) before capital contributions and transfers Capital contributions Transfers in Change In net assets Total net assets -beginning Total net assets -ending Airport$ 1,088 447 23 186 222 13 27 242 1,160 (72)182 1,829 (275)(25)1,711 1,639 37 99 1,775 16,317 18.092 Refuse$ 14,492 2,686 2,944 4,113 1,625 608 147 664 12,787 1,705 150 169 (54)265 1,970 179 193 2,342 8,134$ 10,476 Public Parking Totals$ 200 $ 2,961 1.360 24 329 1568 191 188 301 2,551 (2,351)2,079 (60)(6)2,013 322 672 179 (496)3 74 68 822 2,139 137 (2)135$ 18,741 4,815 3,663 4,807 1,509 815 436 1,275 17,320 1,421 2,261 287 1.998 (335)(87)4,124 5,545 260 6,456 12.261 36.718$ 48,979 (338)2.274 (294)983 689 6.164 8,438 11,284$ 19,722 69 City of Riverside Combining Statement of Cash Flows Nonmajor Enterprise Funds For the fiscal year ended June 30, 2005 (amounts expressed in thousands)
Airport Refuse Trans- Public portation Parking Cash flows from operating activities:
Cash received from customers and users Cash paid to employees for services Cash paid to other suppliers of goods or services Other receipts (payments)
Net cash provided (used) by operating activities Cash flows from noncapital financing activities:
Transfers In Operating grants Advances from interfund receivables Payments on Interfund receivables Advances to other funds Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities:
Purchase of capital assets Proceeds from the sale of capital assets Principal paid on long-term obligations Interest paid on long-term obligations Capital contributions Net cash used for capital and related financing activities Cash flows from investing activities:
Income from investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending 1,107 (437)(5O4)(3,063)$ 14,533 (2,697)(10,271)169$ 200 (1,412)(617)2,924 (325)(665)(1,389)Totals$ 18,764 (4,871)(12.057)(4,283)(2,897) 1,734 (1,829) 545 (2,447)99 182 2,913 193-6,164 1,783 5,836 1,000 1,783 13,000 6.456 1.965 8,749 1,000 (839)17,331 (88) (751)3,106 (558)(1,283)(4)(24)(866)(41)(159)5 (11,382)(13,690)5 (4)(65)(1,311I) (907)44 -44 (110) (11,382) (13,710)(1,102)1,225 123 136 136 405 7,590$ 7,995 138 138 2,301 (156)274 274 1,448 8,971$ 10,419 continued 156-$ 2,301 70 City of Riverside Combining Statement of Cash Flows Nonamajor Enterprise Funds For the fiscal year ended June 30, 2005 (amounts expressed in thousands)
Trans. Public Airport Refuse portation Parking Totals Reconciliation of operating Income (loss) to net cash provided (used) by operating activities:
Operating Income (loss)Other receipts Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation and amortization Increase In utility billed receivable Increase in utility unbilled receivable (Increase) decrease in accounts receivable Decrease in intergovernmental receivable (Increase) in prepaid items (Decrease) in accounts payable Increase (decrease)
In accrued payroll Increase (decrease) in deferred revenue Increase (decrease) in due to other funds Decrease In landfill capping Net cash provided (used) by operating activities Noncash financing and Investing activities:
Capital contributions Advance from other funds -pension obligation bonds (72) $ 1,705 $1,829 169 (2,351) $301 2,139 $ 1.421 1,998 242 19 664 23 (24)47 68 1,275 23 (24)29 (37)(1,661) -- (1,661)(1) (1)(15) (398) (10) (233) (656)10 (11) (52) (3) (56)24 (42) (18)(3,273) -284 (1.389) (4,378)(399) -(399)$ (2,897) $ 1.734 $ (1,829) $ 545 $ (2,447)$ 37 $258 179 $1,407-$677 S$ 216 190 2,532 71
-I I--4I II4-l City of Riverside Combining Statement of Net Assets Internal Service Funds June 30,2005 (amounts expressed In thousands)
Assets Current assets: Cash and Investments Receivables (net of allowances for uncollectibles):
Interest Accounts Intergovernmental Inventory Prepaid items Total Current assets Deferred charges Advances to other funds Capital assets: Buildings Accumulated depreciation-buildings Machinery and equipment Accumulated depreclation-machinery and equipment Capital assets (net of accumulated depreciation)
Total assets Liabilities Current liabilities:
Accounts payable Accrued payroll Retainage payable Claims and judgments Deposits Due to other funds Total current liabilities Advances from other funds Total liabilities Net Assets Invested in capital assets, net of related debt Unresticted Total net assets Workers'Compensation
$ 8.683 90 52 8,825 245 2,506 7 (7)11.576 Self Insurance Unemployment Compensation Public Central Central Liability Stores Garage Totals 524 $ 9,419 $6 103.$ 1.510 $ 20.136 2 4.369 7 14 6 2 374 530 9,522 9.522 4,378 257 180 (134)46 4,681 1,906 1,155 1.488 (32)9,148 (7,063)3,541 6,602 530 213 6 56 4,743 7 25,161 1.657 2,506 1,488 (32)9.335 (7,204)3,587 32.911 397 624 47 17,549 19 3,979 22,615 1.672 24,287 3.587 5,037$ 8,624 8-96-11,147 76 19 -11,270 76 247 -11,517 76 59 454$ 59 $ 454 64 185 94 140 434 47 6,326-3,979 6.390 4.258-259 6.390 4,517 621 1.166 1,787 3,541 1,274$ 4,815 3.132$ 3,132 46 118$ 164 73 City of Riverside Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Internal Service Funds For the fiscal year ended June 30, 2005 (amounts expressed In thousands)
Operating revenues: Charges for services Operating expenses: Personal services Contractual services Maintenance and operation General Materials and supplies Insurance Depreciation and amortization Total operating expenses Operating income (loss)Nonoperating revenues (expenses):
Interest income Other Gain (loss) on retirement of capital assets Interest expense and fiscal charges Total nonoperating revenues (expenses)
Income (loss) before capital contributions Capital contributions Change in net assets Total net assets -beginning Total not assets -ending Workers'Compensation
$ 3,205 446 50 55 342 4 3,256 4 4,157 (952)371 (1)(2)368 Self insured Unemployment Public Central Central Compensation Liability Stores Garage Totals$ 64 $ 7,140 $ 2.484 $ 4,480 $ 17,373 487 2,033 2,966 6 6 62-1 24 1,244 1,324 9 350 335 570 1,606--10 115 129 92 4,333 12 45 7,738--14 749 767 101 4,690 882 4,762 14,592 (37) 2,450 1,602 (282) 2.781 18 251 48 688-(279) (279)--90 89 (2) (11) (15)18 251 (2) (152) 483 (584) -(19) -2,701 -1,600 -(434) 3,264-26 26 (584) (19) 2,701 1,600 (408) 3.290 643 473 431 (1,436) 5.223 5,334$ 59 $ 454 $ 3,132 $ 164 $ 4,815 $ 8,624 74 City of Riverside Combining Statement of Cash Flows Internal Service Funds For the fiscal year ended June 30, 2005 (amounts expressed in thousands)
Self Insured Workers'Compensation Unemployment Compensation Public Central Central Uability Stores Garage Total Cash flows from operating activities:
Cash received from customers and users Cash paid to employees for services Cash paid to other suppliers of goods or services Other (payments)
Net cash provided (used) by operating activities Cash flows from noncapital financing activities:
Payments on Interfund receivables Net cash provided by noncapital financing activities Cash flows from capital and related financing activities:
Purchase of capital assets Proceeds from the sale of capital assets Net cash provided (used) for capital and related financing activities Cash flows from Investing activities:
Income from investments Net cash provided by Investing activities Net increase (decrease) in cash and cash equivalents
$ 3,175 $(453)(3,760)64 $ 7,140 $ 2,484--(489)(101) (4,571) (1,994)(1)(37) 2,569$ 4,905 (2,207)(2,039)(279)380$ 17,768 (3,149)(12,465)(280)1,874 (1,038)547 547 13 560 13 560 1 -I * -(930) (930)75 76 (855) (854)366 366 (124)8,807$ 8,683 17 17 (20)544$ 524 220 220 2,802 6,617$ 9,419 50 50 (425)653 653 2,233 17.903$ 20,136 continued Cash and cash equivalents, beginning Cash and cash equivalents, ending 1,935$ -$ 1,510 75 City of Riverside Combining Statement of Cash Flows Internal Service Funds For the fiscal year ended June 30, 2005 (amounts expressed in thousands)
Self Insured Reconciliation of operating Income (loss) to net cash provided (used) by operating activities:
Operating Income (loss)Other (payments)
Adjustments to reconcile operating Income (loss) to net cash provided (used) by operating activities:
Depreciation and amortization (Increase) in accounts receivable (increase) decrease In Intergovernmental receivables (increase) in Inventory increase (decrease)
In accounts payable (Decrease) in accrued payroll (Decrease) in unearned revenue Increase in due to other funds Increase in claims and judgments Net cash provided (used) by operating activities Noncash financing and Investing activities:
Capital contributions Advance from other funds -pension obligation bond Workers'Compensation Unemployment Compensation Public Central Central Liability Stores Garage Total$ (952) $(37) $ 2,450 $1,602 (1)$(282) $(279)2,781 (280)4 14 (30)(83)(7)(116)(1,786)36 (2)137 749 (6)421 (63)(120)(6)(34)$ 380 767 (6)391 (1,849)(283)(15)(34)137 265$ 1,874$ 26 1.672 30 (1,038)$ (37)235$ 2,569$$24$247.$ -S-$ 26 259 1,166 76 City of Riv 9rscIde Frciuatary Fumd -Agency Fun di Carmb~ning Statemeant afClhanges In Assets and Lrablfllles For the Fiscal Year Ended J tne 30~, 2005 (aiouistasi epressed ina thousands)
Balance Balanace July 1. June 30, 2004 Add~itins DeOductiosts 1006 Ass ets: Cash and investmentas Cash and Invesinlerbis at fiscal' agent k~teuesi.
ieooivable Roperfy iaxes rsceiwatfe Tot-alI a s els 5 4,952 $ 9,930 9,395 11.520 34 297 205 168 14,586 $ 21,913$ 11,691 6,91-9 283 205$ 19,29a$ 2. W$ 17,201 Liabilities:
Accounts payable Due to olier kundf9 Held to r bond hold eas Total liabilities S1 $ 134 $ 134 $ 1 0 6 0 6 14,585 12,811 10,202 17,194$ 14,586 $ 12,951 $ W0,336 $ 17,201 77 I .....-I I-city of Riverside Capital Assets Used In the Operation of Governmental Funds Schedule By Source June 30, 2005 (amounts expressed in thousands)
Governmental funds capital assets: Land Buildings and improvements Improvements other than buildings Machinery and equipment Infrastructure Construction in progress Total governmental funds capital assets$ 124,475 69,391 46,497 54,802 461,357 39,271$ 795,793 Investments In governmental funds capital assets by source: Certificates of participation
$ 24,818 Gifts 32,707 Operating revenue 114,457 General obligation bonds 4,536 Revenue bonds 21,104 County contracts and grants 218 State grants 29,035 Asset forfeiture
-state 264 Asset forfeiture
-federal 657 Housing and community development grants 14,678 Other federal grants 14,987'Community facilities bonds 1,026 Assessment district bonds 397 Capital leases 9,616 RDA tax Increment bonds 2.279 Capital projects funds 525,014 Total governmental funds capital assets $ 795,793 79 City of Riverside Capital Assets Used in the Operation of Governmental Funds Schedule By Function and Activity June 30, 2005 (amount expressed In thousands)
Land Construction In Progress/Buildings and Improvements
$ 18,428 27,334 14,059 78,516 370 Construction in Progress/Improvements Other than Buildings$ 2,978 2,441 0 11,032 0 Machinery and Equipment Infrastructure Total General government Public safety Highways and streets Recreation and culture Community development 2,829 1,913 97,104 21,340 1,289 6,052 29,760 14,549 4,158 284$ 0 $ 30,287 0 61.448 461,357 587,069 0 115,046 0 1,943 Total governmental funds capital assets$ 124,475 $ 138,707 $ 16,451 $ 64,803 $ 461,357 $ 795,793 80 City of Riverside Capital Assets Used In the Operation of Governmental Funds Schedule of Changes By Function and Activity For the fiscal year ended June 30, 2005 (amount expressed in thousands)
Governmental Funds Capital Assets July 1, 2004 Additions Governmental Funds Capital Deductions and Assets Transfers June 30,2005 General government Public safety Highways and streets Recreation and culture Community development
$ 23,166 53,628 556,499 106.140 10,358$ 8,242 9,017 37,537 11.482 7$ 1,120 1,197 6,968 2,576 8,422$ 30,288 61,448 587.068 115,046 1.943 Total governmental funds capital assets$ 749,791 $ 66,285 $ 20,283 $ 795,793 81
-I b -
Table 1 City of Riverside General Governmental Expenditures by Function Last Ton Fiscal Years LastTenFiscl Yars(in thousands)
Fiscal General Public Highways & C1 Year Government Safety Streets RE 1996 $ 65.226 $ 69,545 $ 20.608 $1997 41,894 72,329 16,726 1998 37,579 70,116 15,389 1999 40,279 72,687 21,232 2000 47,934 76,386 16,261 2001 52,388 84,134 17,300 2002 46,028 91,245 20,517 2003 45,300 96.487 23,483 2004 56,574 107,637 27,433 2005 48,394 119,036 35.562 1. The table Includes all general governmental types of expenditures from the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds.2. The table Includes all component units.3. Capital outlay expenditures and lease payments have been recorded in functions.
- 4. Source: City of Riverside Annual Financial Report.iture &wcreatlon 29,369 26,142 17,472 18,047 20,775 23,277 36,647 31,959 28,009 40,836 Debt Service$ 15,792 17,024 32,575 18,552 23,296 17,480 13,959 12,255 71.974 34,329 Total$ 200,540 174.115 173,131 170.797 184,652 194,579 208.396 209,484 291,627 278,157 83 Table 2 City of Riverside General Governmental Revenues by Source Last Ten Fiscal Years (in thousands)
Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Taxes and Special Assessments
$ 72,570 72,657 76,954 81,677 91,031 93,379 99,299 108,610 123,377 148,328 Ucenses and Permits$ 5,461 6,062 6,331 7,854 12,273 13,232 12.317 14,394 11,343 14,389 Inter-governmental Revenue$ 38,097 39,858 35,534 44,055 42.259 48,950 47.410 43,829 42,609 42,568 Charges for Services$ 4,980 4,986 5,499 6,922 7,160 7,879 7,866 8,878 10,046 11.299 Use of Fines and Money and Forfeitures Property$ 886 964 872 1,702 2,226 2,330 2,346 2.095 2,188 2,006$ 9,506 9,289 11,878 11,856 12,470 22,329 13,017 11,255 10,587 10,915 Miscellaneous Revenue$ 5.505 10,418 4,828 4,503 7,900 6.325 4.816 5,042 7,133 9,996 Total$ 137,005 144,234 141,896 158.569 175.319 194,434 187,071 194,103 207.283 239,501 1. The table includes all general governmental types of revenues from the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds.2. The table includes all component units.3. Source: City of Riverside Annual Financial Repor.84 Table 3 City of Riverside General Governmental Tax Revenues by Source Last Ten Fiscal Years (in thousands)
General Transient Special Fiscal Property Sales and Property utility Street Light Occupancy Assessments Total Year Tax Use Tax Transfer Tax Users Tax Excise Tax Franchises Tax Levied Taxes 1996 $ 22.322 $ 25.395 $ 508 $16,267 $ 221 $ 2,902 $ 1,359 $ 3,596 $ 72,570 1997 21,410 25,415 708 16,569 234 2.833 1,437 4,051 72,657 1998 21,743 28.101 694 17,392 269 3,085 1,652 4,018 76,954 1999 22,629 30.481 936 17,552 312 3,787 1,920 4,060 81,677 2000 24,444 34.571 1,087 18,479 336 3,464 2,064 6,586 91,031 2001 24.973 35,850 1,213 19,613 382 3,746 2,344 5,258 93,379 2002 27,685 39,271 1,568 18,510 36 4,070 2,739 5,420 99,299 2003 31,561 41,995 2,024 19,928 99 3,811 2,868 6,324 108,610 2004 34,250 47,608 2,424 21,362 43 4,261 3,170 6,023 119,141 2005 54,252 54,483 3,279 22,135 9 4.480 3.418 6,272 148,328 1. The table Includes all component units.2. Source: City of Riverside Annual Financial Report.85 Table 4 City of Riverside Property Tax Levies and Collections Last Ten Fiscal Years (In thousands)
Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Total Tax Levy$ 23,086 22,202 22,429 23,113 24,241 25,205 25,237 26,050 31.954 37,144 Percent of Current Tax Current Taxes Collections Collected$ 21,787 20,750 21,055 21.888 23,431 24,436 23.098 25,186 31,092 36,004 94.4%93.5%93.9%94.7%96.7%96.9%91.5%96.7%97.3%96.9%Delinquent Tax Collections
$ 535 569 584 537 626 370 513 603 966 706 Ratio of Total Tax Total Tax Collections to Collections Total Tax Levy$ 22,322 21,319 21,639 22,425 24,057 24,806 23,611 25,789 32,058 36,710 96.7%96.0%96.5%97.0%99.2%98.4%93.6%99.0%100.3%98.8%Outstanding Delinquent Taxes$ 8,135 9,019 9.810 10,497 9,994 11,081 12,707 11.715 11,612 12,046 Percent of Delinquent Taxes to Total Tax Levy 35.2%40.6%43.7%45.4%41.2%44.0%50.4%45.0%36.3%32.4%1. The table Includes the City of Riverside Redevelopment Agency.2. Source: Riverside County Auditor Controller's Office.3. Total tax collections Include supplemental tax levies not Included in the total tax levy column.86 Table 5 City of Riverside Assessed and Estimated Actual Value of Taxable Property Last Ton Fisc~al Years (in thousands)
Last Ten Fiscal Yearn (in thousands)
Fiscal Year Secured Roll 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005$ 10,347,384 10.135,216 10,188,885 10,158,747 10,557.523 11,269,877 12,103,179 13,071,416 14.188,658 15,540,982 Unsecured Roi$ 557,258 548,897 540,358 576,029 632,940 686,215 799,323 980,529 845,8568 951,211 Total Secured and Unsecured$ 10,904,642 10,684,113 10,729,243 10,734,776 11,190,463 11,956,092 12,902,502 14,051,945 15,034,516 16,492,193 Exemptions Veteran, Church, etc.$(1,634,835)
(1.574,851)
(1.598,304)
(1,580,501)
(1,685,818)
(1,784,167)
(1,894,558)
(2,166,760)
(2,264,397)
(2,486,126)
Total Assessed Value Net Total Exemptions Assessed Homeowners Value Estimated Actual Value$ 9,269,807 9,109,262 9,130,939 9,154,275 9,524,645 10,171,925 11.007,944 11,885,185 12,770,119 14,006,067 S (243.489)(242,473)(241,776)(238,588)(233,807)(233,376)(234,557)(240,201)(262,106)(265,718)$ 9,026,318 8,866.789 8,889,163 8.915,687 9,290,828 9,938,549 10,773.387 11,644,984 12,508.013 13,740,349
$ 9,269,807 9,109,262 9,130,939 9,154,275 9,524,645 10,171,925 11,007,944 11,885,185 12,770,119 14.006,067
- 1. Assessed valuations are based on 100 percent of estimated actual value and do not Include Riverside Redevelopment Agency.2. Source: Riverside County Assessor's Office.87 Table 6 City of Riverside Property Tax Rates-Direct and Overlapping Governments Last Ten Fiscal Years Fiscal Basic School County of Year Levy City Districts Riverside Other Total 1996 1.00 0.00000 0.00000 0.00000 0.02262 1.02262 1997 1.00 0.00000 0.00000 0.00000 0.02306 1.02306 1998 1.00 0.00000 0.00000 0.00000 0.02179 1.02179 1999 1.00 0.00000 0.00000 0.00000 0.00890 1.00890 2000 1.00 0.00000 0.00000 0.00000 0.00890 1.00890 2001 1.00 0.00000 0.00000 0.00000 0.00890 1.00890 2002 1.00 0.00000 0.00000 0.00000 0.00770 1.00770 2003 1.00 0.00000 0.05000 0.00000 0.00670 1.05670 2004 1.00 0,00000 0.04993 0.00000 0.00610 1.05603 2005 1.00 0.01092 0.04048 0.00000 0.02380 1.07520 1. Information above is taken from the districts that exist within the City of Riverside.
- 2. If taxes become delinquent, the underlying property may be deeded to the state and sold by the county tax collector for taxes due plus 11/2% per month redemption fee after the third month of being delinquent.
- 3. All property taxes are collected by the County of Riverside with 1/4 of 1% of the assessment going to the County for collection fee.4. Rates are based on $100 of assessed valuation.
Source: Riverside County Auditor-Controller's Office.88 Table 7 City of Riverside Computation of Direct and Overlapping General Obligation Debt As of June 30, 2005 (in thousands)
Direct Debt: City of Riverside Overlapping Debt: School Districts:
Riverside Unified Other Districts:
Metropolitan Water District Total Overlapping Debt Total Direct and Overlapping Debt Total General Obligation Debt$ 220,710 53,590 419,390 472,980$ 693,690 Percentage Applicable to City of Riverside*
City of Riverside Share of Debt 100.00% $ 220,710 84.38%45,221 1.03% 4,320 49,541$ 270,251-Determined by ratio of assessed valuation of property subject to debt service taxation in overlapping agency to valuation of property subject to taxation in the City of Riverside.
Source: Riverside County Auditor-Controllers Office and Other District Offices.89 Table 8 City of Riverside Computation of Legal Debt Margin For City General Obligation Bonds As of June 30, 2005 (in thousands)
Total Assessed Value. June 30. 2005 Debt limit: 15.00% of Total Assessed Value Amount of debt applicable to debt limit: Total bonded debt Less amount available for repayment of general obligation bonds Other deductions allowed by law: Revenue bonds Redevelopment Agency tax allocation bonds Certificates of participation Total deductions Total General Obligation Debt Applicable to Debt Limit Legal Debt Margin$ 14,006.067
$ 2.100,910 784,915 0 449,245 111,410 3.550$ 564.205 220,710$ 1,880.200 Debt limit set by City Charter at 15% of total assessed value for general obligation bonds.Source: Riverside County Assessors Office and City of Riverside Annual Financial Report.90 Table 9 City of Riverside Ratio of Net General Obligation Bonded Debt to Assessed Value and Bonded Debt per Capita Last Ten Fiscal Years (in thousands)
Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Population 243 242 251 254 260 262 266 274 277 285 Assessed Value$9,269,807 9,109,262 9,130,939 9,154,275 9,524,645 10,171.925 11,007.944 11,885,185 12,770,119 14,006,067 Gross Bonded Debt 162,725 220,710 Less Debt Service Fund$.Net Bonded Debt$162,725 220,710 Ratio of Net Bonded Debt To Assessed Value 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%1.27%1.58%Net Bonded Debt per Capita S 587.45 774.42 1. Population figures supplied by the State of California Finance Departmnent.
- 2. Assessed value is from Table 5.3. Gross bonded debt consists of general obligation bonds only.4. Debt service fund is the amount available for repayment of general obligation bonds.91 Table 10 City of Riverside Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures Last Ten Fiscal Years (in thousands)
Fiscal Year Principal 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005$20 2,015 Interest$75 7,594 Total Debt Service 9,609 Total General Governmental Expenditures Ratio of Debt Service to General Expenditures
$ 200,540 174,115 173.131 170,797 184,652 194.579 208,396 209,484 291,627 278,157 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%3.45%1. Table includes all component units.2. Source: City of Riverside Annual Financial Repor.92 Table 11 City of Riverside Revenue Bond Coverage Last Ten Fiscal Years (in thousands)
Fiscal Year Electric 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Water 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Sewer 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Net Revenue Gross Operating Available for Revenues Expenses Debt Service Debt Service Requirements 173,112 183.932 207,934 180,171 197,842 271.828 229.529 211,553 239,842 271,987 24,942 26,643 26,126 30.739 33,327 36,259 43,215 36,837 47,093 45,626 20,684 21,315 21,530 21,322 23,851 25,056 23,872 24,297 24,176 25.444 132,172 137,964 143,828 145,402 150,175 227,081 190,426 157,450 168,162 169,064 15,149 15,013 14.776 15,659 16,397 18,643 19,244 19,928 23,767 26,583 11,937 11,894 11,901 12,117 12,300 12,451 12,387 13,433 17,006 19,163 40,940 45,968 64,106 34,769 47,667 44,747 39,103 54,103 71,680 102,923 9,793 11,630 11,350 15,080 16,930 17,616 23,971 16,909 23,326 19,043 8,747 9,421 9,629 9,205 11,551 12,605 11,485 10,884 7,170 6,281 Principal 5,865 6,190 6,635 6,555 6,610 6,930 7,385 7,840 10,780 14,555 1,900 2,015 2,265 2,780 2,755 2,955 3,215 3,845 4,010 4,045 1.860 1,960 2,075 2,200 2,330 2,435 2,550 2,665 2,800 2,970 Interest 10,232 9,891 10,371 10,701 10,669 10,350 9,841 10,966 10,183 12,143 2,712 2,599 2,642 2,667 2,591 2,364 2,941 2,720 2,622 2,591 3,030 2,917 2,792 2,662 2,557 2,729 2,423 2.165 2,341 2,081 Total Coverage 16,097 16,081 17,006 17,256 17,279 17,280 17,226 18,806 20,963 26,698 4,612 4,614 4,907 5,447 5,346 5,319 6,156 6,565 6,632 6,636 4,890 4,877 4,867 4,862 4,887 5,164 4,973 4,830 5,141 5,031 2.54 2.86 3.77 2.01 2.76 2.59 2.27 2.88 3.42 3.86 2.12 2.52 2.31 2.77 3.17 3.31 3.89 2.58 3.52 2.87 1.79 1.93 1.98 1.89 2.36 2.44 2.31 2.25 1.39 1.25 1. Gross revenues include operating, interest, and other revenues.
Gross revenues also Include the cash portion of impact fees.2. Operating expenses are net of depreciation.
Operating expenses are also net of nuclear fuel bum in the Electric Fund.Beginning with 2003, operating expenses are also net of the Deseret amortization charge in the Electric Fund.3. Debt service requirements are the principal and interest expense for the same period.4. Source: City of Riverside Annual Financial Report.93 Table 12 City of Riverside Special Assessment Collections Last Ten Fiscal Years (in thousands)
Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Special Assessments Billed 120 124 107 107 75 76 78 0 0 0 Current Assessments Collected 117 130 111 73 74 76 83 0 0 0 Percentage of Collections to Amount Due Total Outstanding Assessments 97.5%104.8%103.7%68.2%98.7%100.0%106.4%0.00%0.00%0.00%650 540 480 285 245 195 135 0 0 0 1. Street Light Assessment District collections are not Included.2. Source: City of Riverside Assessment Register and Annual Financial Report.94 Table 13 City of Riverside Principal Taxpayers June 30, 2005 Taxpayer Tyler Mall LTD Partnership Riverside Healthcare System State Street Bank &Trust Co. of California BRE Prop Inc.Calif State Teachers Retirement System Pepsi Bottling Group Press Enterprise Rohr/Goodrich Mission Grove Park Apartments Ralphs Grocery Company Type of Business Regional Shopping Center Healthcare Realty Investment 2005 Assessed Valuation$144,601 101,878 78,581 Realty Investment Realty Investment Manufacturer Newspaper Manufacturer Apartments Grocery 66,543 56,482 50,607 47,893 47,007 45,051 41,064$679,707 (in thousands)
Percentage of Total Assessed Valuation 0.8%0.6%0.4%0.4%0.3%0.3%0.3%0.3%0.3%0.2%3.8%Source: Riverside County Assessors Office.95 Table 14 Mlscellanous Statistical Data June 30, 2005 Geographic Location -In Southern California approximately 50 miles east of Los Angeles and 90 miles north of San Diego, contiguous to desert and mountain regions.Elevation
-Varies from 800 to 1200 feet.Area and Population:
Year Area, Square Miles 2005 (January) 79.65 2000 79.05 1990 77.04 1980 71.95 1970 71.52 1960 43.59-1950 39.20 1940 39.20 1930 39.20 1920 39.20 1910 39.20 1900 56.00 1890 56.00 1883 56.00 2005 population per square mile = 3,585 Average Rainfall -10.22 inches Climate, Average Minimum and Maximum: Spring 50-76 Degrees Summer 62-92 Degrees Fall 54-83 Degrees Winter 43-69 Degrees Date of Incorporation
-1883 Form of Government
-Council/Manager City Charter Adopted -1952 Number of Budgeted Positions (full time equivalents):
General Government Departments Police Department Fire Department Public Works Department Library Department Park and Recreation Department Museum Public Utilities Department Airport Department Page I of 2 Population 285.537 259.738 218,499 165,087 140,089 83,714 46,399 34,696 30,645 19,341 15,212 7,793 4,683 2.000 est.Taxable Retail Sales:(In thousands) 2005 $5,293,347 2000 3,219,894 1990 .2,148,399 1980 994,264 1970 307,378 1960 137,326 Miles of Streets -838 Miles of Sewers -755 Number of Street Lights -28,581 Traffic Signals -322 Municipal Services and Facilities (budgeted positions shown in full time equivalents);
Police Budgeted positions Fire Library Museum Stations Substations Helicopters Budgeted positions Stations Active apparatus Reserve apparatus Training Facilities Budgeted Positions Library branches Budgeted positions Fixed exhibits Special exhibits Reference library volumes Budgeted positions Community centers Playgrounds Public swimming pools Softball and baseball diamonds Total parks acreage 568.83 7 2 4 221.11 13 30 5 1 97.06 5 18.94 8 1 5,224 184.92 11 26 7 35 2,534 Parks and Recreation 331.88 568.83 221.11 329.84 97.06 184.92 18.94 435.60 6.00 2,194.18 96 Table 14 Miscellanous Statistical Data June 30, 2005 Page 2 of 2 Auditorium and Exhibit Hall Municipal Utilities Municipal auditorium seating capacity Exhibit Hall Meeting and showrooms (300 to 20,800 square feet each)Assembly capacity Budgeted positions
-Electric-Water Number of Accounts -Electric-Water Miles of overhead distijbution system Miles of underground system Annual consumption:
Electric (kwh)Water (ccf)Number of fire hydrants 1,776 7 40 to 2,000 305.6 130.0 103,463 62,492 531.0 622.0 1.962,000.000 27.697,000 6.926 Education
-Riverside includes portions of Riverside Unified School District and Alvord Unified School District Riverside Unified School District: Senior High Schools Enrollment Middle School (7-8)Enrollment Elementary Schools (Klndergarten-6)
Enrollment Alvord Unified School District: Senior High Schools Enrollment Middle School (6-8)Enrollment Elementary Schools (Kindergarten-5)
Enrollment 10 13.686 6 6,660 31 21.965 3 5,485 4 4.869 12 9,610 Source of supply: Electric-Intermountain Power Project Palo Verde Nuclear Generating Station San Onofre Nuclear Generating Station Deseret Generation and Transmission Hoover Power Plant Southern Califomia Edison and others Water -City owned sources, supplemented as necessary by Metropolitan Water District of Southern California Riverside Community College District: Riverside City College Enrollment State of Califomra University of California, Riverside Enrollment School for the Deaf Enrollment United States Sherman Institute (Government School for Indians)Enrollment Other Schools Califomla Baptist College Enrollment La Sierra University, Riverside Enrollment.
Private or Parochial Schools (Kindergarten-12) 31,081 17,104 470 633 (est)2.718 1,908 50 Source: Various City Departments and School Districts.
97 Table 15 City of Riverside Demographic Statistics Last Ten Fiscal Years Fiscal Per Capita Median Unemployment Year Population Income Age Rate (1) (2) (3) (4)1996 243,421 12,497 31.3 9.1%1997 241.630 12,567 31.6 7.8%1998 250.799 13,481 31.8 7.0%1999 254,300 14,093 32.0 6.2%2000 259,738 13,825 32.2 5.3%2001 262,335 14,241 32.4 5.2%2002 265,700 13,687 31.6 6.5%2003 274,100 14,137 32.1 6.8%2004 277,030 14,928 30.0 6.2%2005 285,537 15,070 29.7 5.9%Sources: 1. State Department of Finance 2. Sales & Marketing Management
-2005 Survey of Buying Power 3. ESRIBIS Business Solutions 4. State of California, Employment Development Department 98 Table 16 City of Riverside Construction, Bank Deposits.
and Property Value Last Ten Fiscal Years (values in thousands)
Commercial Construction (1)Residential Construction (1)Bank Deposits (2)Property Values (3)Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Number of Units 1,804 1,599 1.621 1.710 1,573 1,718 1,899 1,982 2,153 1,923 Value 70.448 56,691 44,194 54,805 47,835 82,009 91,027 134.945 262,704 126,278 Number of Units 2,417 2,654 3,053 3,074 3,694 3,747 4,099 4,444 4,145 4,542 Value 69.378 83,550 100,611 147,977 278,035 273,389 264.995 316.394 189,004 388,845 1,448,021 2,337,691 2,700,352 2,488,049 2,634,597 2,559,80W 2,702,018 3,007,719 3.475,359 NA Commercial 4,237,613 4,239,980 4,139,302 4.323,469 3,939.530 4,163.934 4,799,848 4.933,988 5,195,623 5,281,154 Residential 5,844,620 5,889,169 5,948,479 6.160,694 6,665.754 7,219,923 7,960,167 8,471,469 9,336,641 10,667,343 Sources: 1. City Planning Department
- 2. Available from Federal Deposit Insurance Corporation after January 1, 2006.3. County Land Use Statistical Recap Report 99 YEAR ENDED JUNE 30. 2005 PREPARED BY DEPARTMENT OF FINANCE WILLIAM G. SWEENEY Finance Director 02&14ý'
CITY OF ANAHBIM Comprehensive Annual Financial Report Table of Contents June 30,2005 Pulp INTRODUCTORY SECTION Letter of Transmittal 1 GFOA Certificate of Achievement for Excellence in Financial Reporting 5 CSMFO Certificate of Award for Outstanding Financial Reporting 6 Organization Chart 7 Administrative Personnel 8 FINANCIAL SECTION Independent Auditors' Report 9 Management's Discussion and Analysis (Unaudited) 11 Basic Financial Statements Government-wide Financial Statements Statement of Net Assets 21 Statement of Activities 23 Fund Financial Statements Balance Sheet -Governmental Funds 25 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 26 Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds 27 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 28 Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Budgetary Basis Actual -General Fund 29 Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual -Housing Authority 30 Statement of Fund Net Assets -Proprietary Funds 31 Statement of Revenues, Expenses and Changes in Fund Net Assets -Proprietary Funds 33 Statement of Cash Flows -Proprietary Funds 34 Statement of Fiduciary Assets and Liabilities
-Agency Fund -Mello-Roos 36 Notes to the Financial Statements 37 Combining Individual Fund Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet -Nonmajor Governmental Funds by Fund Type 65 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Governmental Funds by Fund Type 66 Combining Balance Sheet -Nonmajor Special Revenue Funds 67 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit)
-Nonmajor Special Revenue Funds 69 Combining Balance Sheet -Nonmajor Debt Service Funds 71 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Debt Service Funds 72 (continued)
CiTY OF ANAHEIM Comprehensive Annual Financial Report Table of Contents June 30, 2005 (continued) pape Combining Balance Sheet -Nonimajor Capital Projects Funds 73 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonniajor Capital Projects Funds 74 Internal Service Funds Combining Statement of Fund Net Assets -Internal Service Funds 75 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets -Internal Service Funds 76 Combining Statement of Cash Flows -Internal Service Funds 77 Other Supplementary Schedules Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficit)
-Budget and Budgetary Basis Actual -Nonmajor Special Revenue Funds 79 Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual -All Debt Service Funds 82 Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Budgetary Basis Actual -All Capital Projects Funds 83 Capital Assets Used in the Operation of Governmental Funds -Schedule by Source 85 Capital Assets Used in the Operation of Governmental Funds -Schedule by Function and Activity 86 Capital Assets Used in the Operation of Governmental Funds -Schedule of Changes by Function and Activity 87 Statement of Changes in Fiduciary Assets and Liabilities
-Agency Fund -Mello-Roos 88 STATISTICAL SECTON (Unaudited)
General Governmental Expenditures by Function -Last Ten Fiscal Years 899 General Governmental Revenues by Source -Last Ten Fiscal Years 89 Assessed Values of All City Property -Last Ten Fiscal Years 90 Current Tax Levies and Tax Collections
-Last Ten Fiscal Years 90 Property Tax Rates -All Direct and Overlapping Governments
-Last Ten Fiscal Years 91 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures
-Last Ten Fiscal Years 91 Schedule of Direct and Overlapping Bonded Debt 92 Schedule of Debt Ratios -Last Ten Fiscal Years 93 Statement of Legal Debt Margin 93 Schedule of Revenue Bond and Certificates of Participation Coverage -Electric Utility Fund 94 Schedule of Revenue Bond Coverage -Water Utility Fund 94 Schedule of Revenue Bond and Certificates of Participation Coverage -Convention, Sports and Entertainment Venues Fund 95 Demographic Statistics 9 Construction and Bank Deposit Activity -Last Ten Fiscal Years 97 Principal Taxpayers 97 Schedule of Insurance in Force 98 Miscellaneous Statistical Information 99 City of Anaheim Map 100 City of Anaheim, California Finance Department December 16, 2005 To the Honorable Mayor and City Council City of Anaheim Anaheim, California In accordance with the Charter of the City of Anaheim (City), we are submitting the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2005. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City, as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain maximum understanding of the City's financial activities have been included.The CAFR is presented in three sections:
Introductory, Financial, and Statistical.
The Introductory Section includes the table of contents, this transmittal letter, certificates of achievement, the City's organization chart, and a list of administrative personnel.
The Financial Section includes the report of the independent auditors, Management's Discussion and Analysis (MD&A), the basic financial statements including the government-wide financial statements comprised of the Statement of Net Assets, the Statement of Activities and the accompanying notes to the financial statements.
The Financial Section also includes the fund financial statements including the governmental funds financial statements, the proprietary funds financial statements and the fiduciary fund financial statements, and the combining individual funds financial statements for the nonmajor governmental funds and the internal service funds. The Statistical Section includes selected pertinent financial and demographic information, on a multi-year basis. This transmittal letter is designed to complement and should be read in conjunction with the MD&A.In addition to the financial audit, the City is required to undergo an annual Single Audit in conformity with the provisions of the Single Audit Act Amendments of 1996 and the U.S. Office of Management (OMB) and Budget Circular A-133, Audits of State, Local Governments, and Non-Profit Organizations.
The information related to the Single Audit, including the schedule of expenditures of federal awards, schedule of findings and questioned costs, and auditors' reports on internal control and compliance, is not included with this report and is issued as a separate document.This CAFR includes all funds of the City. The City provides a full range of services, including:
police and fire protection, highways and streets, public improvements, planning and zoning, utilities (electric and water), sanitation and solid waste, stadium, convention center, golf courses, street and park maintenance, recreational and cultural programs for citizen participation, and general administrative services.
In addition to general governmental activities, the City Council is financially accountable for the Anaheim Housing Authority, Anaheim Redevelopment Agency, Community Center Authority, Anaheim Public Improvement Corporation, and Anaheim Public Financing Authority; therefore, these activities are included in the reporting entity.ECONOMIC CONDION AND OUTLOOK The City is located in northwestern Orange County, about 28 miles southeast of downtown Los Angeles and 90 miles north of San Diego. The City lies on a coastal plain, which is bordered by the Pacific Ocean on the west and the Santa Ana Mountains on the east. The City is the oldest and second most populous city in Orange County. Anaheim is home to the Disneyland Resort, the Anaheim Convention Center, and two major league professional sports teams--the Anaheim Angels American League Baseball team that utilizes the Angel Stadium of Anaheim and the Anaheim Mighty Ducks National Hockey League team that utilizes the Arrowhead Pond of Anaheim.Anaheim and Orange County are home to a wide spectrum of industries-more than 4,600 manufacturing plants are located in the county, most notably aerospace, electronics, machinery, computers, and food product manufacturers.
Unionization is prevalent in manufacturing, construction, hotels, trucking, warehousing, grocery stores, drug stores, and some larger retail outlets. High-tech businesses are typically nonunion.As the City continues to attract population growth and economic expansion, its municipal services are constantly being improved to serve residential and business needs. This growth in City service demand presents the City with significant challenges; and if the high level of service is to be maintained, the City will need to continue to explore new methods of obtaining financial resources and more efficient methods to deliver services.1 CITY OF ANAHEIM The unemployment rate in the Orange County, California area for June 2005 was 3.9%/, which remains below both the state (5.4%) and national (5.01/6) averages.
Increases in the professional and business services sectors have provided an overall increase in Orange County job creation over the last twelve months.Tourism related spending provides significant discretionary revenue to the City of Anaheim, and the City closely monitors and projects trends related to this market.Revenue from tourism was very strong in fiscal year 2005, and local economic forecasts indicate continued strength well into fiscal year 2006. The City's revenue from sales and use taxes continues to be a solid source of revenue, supported by a diversified base that is also expected to perform well.MAJOR INITIATIVES The Anaheim City Council has provided policy and direction to lead the City on a path of long-term investment and improvement for the future. Four major themes have been identified to focus and guide the efforts of the City's overall workplan: " A unified, inspirational vision for our City* A fiscally responsible course for our highly valuable assets" A sense of pride instilled in neighborhoods" A dedication to deliver unparalleled service to our customers The vision for our City was recently codified by the City Council's adoption of the most ambitious planning effort in City history, the updated General Plan and Zoning Code.As a result of extensive public input, the City created an opportunities based, long-range planning tool created to address the livability of Anaheim's neighborhoods, beautification efforts, and new land use options for commercial properties, as well as the corresponding infrastructure and transportation needs. The new General Plan is a comprehensive guide for future development and associated City services and facilities.
It addresses the preservation and enhancement of neighborhoods and maximization of open space and recreational opportunities, as well as the continued development of The Anaheim Resort and Stadium Area. It also anticipates the completion of the Downtown Anaheim Revitalization Project, a vibrant City center and activity hub. In addition to the General Plan, the City Council also adopted a new overlay zone for the approximately 800 acre Platinum Triangle.
When completed, the Platinum Triangle will be a vibrant 24-hour, high density, mixed-use, urban environment unique to Orange County that could include up to 9,175 dwelling units, 5 million square feet of office space and over 2 million square feet of commercial uses. The introduction of mixed-use opportunities into this area will be the catalyst for realizing the development potential of The Platinum Triangle's strategic location and surrounding amenities including Angel Stadium of Anaheim, the Arrowhead Pond of Anaheim, The Grove of Anaheim and the Amtrak/Metrolink Station and proposed Anaheim Regional Transportation Intermodal Center (ARTIC).The City continues to draw from and build on its fiscal responsibility as it maximizes the assets under its control and direction which include the Angel Stadium of Anaheim, the Arrowhead Pond, the Anaheim Convention Center, the City's golf courses, and its Anaheim-owned, Anaheim-focused water and electric utilities.
Through sound fiscal management, the City continues to operate these economic engines at optimal levels to assist in better providing for the many other necessities of the community.
The re-dedication to neighborhood pride is another important facet of the City's planning and operations.
Various programs were established in the Other Capital Improvements Fund upon the completion of the Anaheim Resort Revitalization Project to direct increased revenues received from the City's investment in resort improvements toward continued improvements in our community.
This and other resources contribute toward infrastructure maintenance including roads, sidewalks, and sewers, new and/or enhanced parks and open space, increased sports fields and gymnasiums, facilities such as the West Anaheim Police Sub-station and Youth Center, the East Anaheim Gymnasium, Anaheim Hills Golf Clubhouse, Haskett Library in Maxwell Park, and the Tiger Woods Learning Center at Dad Miller Golf Course.The City's commitment to deliver unparalleled service continues to show Anaheim's commitment to being one of the finest municipal workforces in the nation. Anaheim has built a reputation on its consistent delivery of outstanding service that residents, businesses and guests have come to expect. The Anaheim Service Initiative, based on examples of the City's outstanding service delivery leaders, was developed to reinforce and train others the corporate service culture's best practices.
FINANCIAL INFORMATION Management of the City is responsible for establishing and maintaining internal control designed to ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. Internal control is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (i) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.
This report consists of management's representations concerning the finances of the City. As a result, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. Management asserts that, to the best of their knowledge and belief, this financial report is complete and reliable in all material respects.2 C1TY OF ANAHEIM SINGLE AUDIT. As a recipient of federal awards, the City is also responsible for ensuring that adequate internal control is in place to ensure compliance with applicable laws and regulations related to those programs.
This internal control is subject to periodic evaluation by management and the internal audit staff of the City.As a part of the City's Single Audit, tests are made to determine the adequacy of internal control related to federal award programs, as well as to determine that the City has complied with applicable laws and regulations.
No significant instances of noncompliance or internal control weaknesses were identified in the Single Audit for fiscal year ended June 30, 2005.BUDGETARY CONTROLS:
The City maintains budgetary controls, the objective of which is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, special revenue funds, debt service funds, capital projects funds, and all the proprietary funds are included in the annual appropriated budget The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount)is established at the departmental level. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbrances generally are reappropriated as part of the following year's budget.Regarding long-term financial planning, as of June 30, 2005, the City Council adopted the fiscal year 2006 budget. Additionally, as a companion to approving the budget plan, a five-year Capital Improvement Plan was presented to the City Council. The five-year plan links anticipated expenditures for infrastructure development with community needs and desires and provides a citywide perspective of recommended projects and proposed funding sources. The Capital Improvement Plan was finalized in May 2005, and totaled $678.5 million for the five-year fiscal period ending June 30, 2010. The five-year Capital Improvement Plan has been submitted and annually updated, in its present form, since 1982, for effective long-range planning purposes.
It is City Management's belief that these two plans give City Council members an expanded opportunity to set policy and provide direction for implementation, resulting in improved management efficiency and improved financial results.DEBT ADAINSTRA770N:
At June 30, 2005, the City had a number of debt issues outstanding, as shown in detail in the notes to the financial statements.
The City's ratio of net bonded debt to assessed valuation and the amount of net general bonded debt per capita are useful indicators of our debt position to management, citizens, and investors.
As of June 30, 2005, the City has $6.6 million in authorized, outstanding tax-supported general obligation bonds with no authorized but unissued general obligation bonds. This level of general obligation debt was well below the legal limit of $3.5 billion, or 15% of assessed valuation.
The City's general obligation bonds are rated Aa2 by Moody's Investors Services and rated AA by Standard and Poor's.CASH MANAGEMENT." The City Treasurer invests temporarily idle funds in accordance with the Government Code and a formal investment policy approved by the City Council and the Investment Advisory Commission.
During fiscal year 2005, funds were invested in such instruments as U.S. Treasury notes, federal agency or U. S.Government-sponsored enterprise obligations, commercial paper, corporate medium term notes, money market mutual funds, and the Local Agency Investment Fund (State Pool). The average maturity of the portfolio as of June 30, 2005 was I year and 3 months. Interest earnings for the fiscal year were approximately
$13.4 million with an average earned yield of 2.48%. Bond proceeds are not commingled with the portfolio but are invested pursuant to the bond indentures.
Consequently, earnings and yield on bond proceeds are not reflected in the previously stated figures.RISK MANAGEMENT:
Through the utilization of professional risk management techniques of risk identification, risk control, risk transfer, and risk financing, the City has a comprehensive risk management program designed to protect the City's assets and resources from accidental loss. In the risk financing area, the City utilizes a combination of fully funded, actuarially based, self-insurance programs, an excess risk-sharing pool, an industry-captive excess insurer, and commercial insurers.
Operational expenses and reserves are maintained in the General Benefits and Insurance Fund. The City's Risk Management Division continues to be very successful with programs that generate material cost savings while, at the same time, eliminating or transferring risk to the maximum extent OTHMR INFORMATION THE INDEPENDENT AUDIT: The City Charter requires an annual audit of the financial statements of the City by an independent certified public accountant.
Accordingly, this year's audit was completed by KPMG LLP. In addition to meeting the requirements set forth in the City Charter, the audit was also designed to meet the requirements of the Single Audit Act Amendments of 1996 and related OMB Circular A-133. The auditors' report on the basic financial statements is included in the financial section of this report. The auditors' reports related specifically to the single audit are presented as a separate document.3 CITY OF ANAHEIM GOVERNMENT FINANCE OFFICERS ASSOCTATION OF THE UNITED STATES AND CANADA (GFOA) CERTIFICATE OF AHIEMWENT AWARD: The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Anaheim, California, for its comprehensive annual financial report for the fiscal year ended June 30, 2004. This was the 29th consecutive year that the City has achieved this prestigious award (fiscal years ended 1976 -2004). In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report continues to conform to the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate.
CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS (CSMFO)CERTIFICATE OF AWARD FOR OUTSTANDING FINANCIAL REPORTING:
The CSMFO awarded a Certificate of Award for Outstanding Financial Reporting to the City for its CAFR for fiscal year ended June 30, 2004. The certificate is issued in recognition of meeting professional standards and criteria in reporting which reflect a high level of quality in the annual financial statements and in the underlying accounting system from which the reports were prepared.
This was the 29th consecutive year that the City has received this prestigious State of California award. We believe our current report continues to conform to the Certificate of Award for Outstanding Financial Reporting Program requirements, and we are submitting it to CSMFO.ACKNOWLEDMEN The preparation of this report on a timely basis could not have been accomplished by the Finance Director alone without the efficient and dedicated service of the entire staff of accountants in the Finance Department led by Edward Zacherl, Assistant Finance Director.
Appreciation is also expressed to Council Members Bob Hernandez and Harry Sidhu, and Assistant City Manager Tom Wood for their significant contributions as members of the Audit Committee.
In closing, without the leadership and support of the City Council, preparation and results of this report would not have been possible.
Its leadership has made possible the implementation of these important and innovative concepts in fiscal management by the city.Respectfully submitted, David M. Morgan City Manager William G. Swteney Finance Director 4 CITY OF ANAHEIM Certificate of Achievement for Excellence in Financial Reporting Presented to City of Anaheim, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30,2004 A Cetificate of Achievemen for E in Financial Reporting is prosenned by the Glovernment Finance Officers Associaion of the United states and Canada to government units and public enmployee retirenat systens whoe cmrtrebensive annual financial reposts (CAFR&) achieve the h4hest standas igovernment accounting and financisa repoting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Anaheim, California for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2004. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards.
Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement program requirements, and we are submitting it to GFOA.President Executive Director 5 CITY OF ANAHEIM California Society of J 4 lunicipal 5i nance Officers Certificate of Award Outstanding Financial Reporting 2003-04 Presented to the City of Anaheim Thus ceftificate is issued in recognition of uusetingprofessional standards and ciltera In reporting which reflect a high level of quality in the annualfinanciul statem&ets and in th. underlying accounting system from which the reports were prepared.February24, 2005 mW Thaa,* Cawr ProfaidiawaI Te~ackl Standrel Coanmutt Dedicated to Excellence in Municipal Financial Manmgement 6
CITY OF ANAHEIM DýT Legend 0 Esdwkm"w 1*O-fV-*- w.UN 7 CITY OF ANAHEIM Administrative Personnel City Manager Assistant City Manager Deputy City Manager Chief of Police City Attorney City Clerk City Treasurer Community Development Executive Director Community Services Director Convention, Sports & Entertainment Executive Director Finance Director Fire Chief Human Resources Director Planning Director Public Utilities General Manager Public Works Director David M. Morgan Thomas J. Wood Joel H. Fick John Welter Jack L. White Shleyll A. Schroeder Charlene C. Parker Elisa Stipkovich Terry Lowe Gregory L. Smith William 0. Sweeney Roger E. Smith David H. Hill Sheri Vander Dussen Marcie L. Edwards Gary E. Johnson 8
I KkyP',w M,, !W 600 Anton Boulevard Suite 700 Costa Mesa, CA 92626-7651 Telephone 714 850 4300 Fax 714 850 4488 Independent Auditors' Report The Honorable Mayor and City Council City of Anaheim, California:
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Anaheim, California (City), as of and for the year ended June 30, 2005, which collectively comprise the City's basic financial statements as listed in the table of contents.
These financial statements are the responsibility of the City's management Our responsibility is to express opinions on these financial statements based on our audit.We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standazis, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes consideration of internal control over fimancial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting.
Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinions.In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Anaheim, California, as of June 30, 2005, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the General and Housing Authority Funds for the year then ended in conformity with accounting principles generally accepted in the United States of America.Management's discussion and analysis on pages 11 through 19 and the pension plan required supplementary information on page 58 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.In accordance with Government Auditing Standards, we have also issued a report dated December 16, 2005 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government A ting Standards and should be considered in assessing the results of our audit.Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements.
The combining individual fund statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the financial statements.
The combining individual fund statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.December 16, 2005 9 (This page left blank intentionally) 10
CITY OF ANAEM Management's Discussion and Analysis (Unaudited)
As management of the City of Anaheim (City), we offer readers of the City's basic financial statements this narrative overview and analysis of the financial activities of the City as of and for the fiscal year ended June 30, 2005. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report and the City's basic financial statements in the financial section of this report All amounts, unless otherwise indicated, are expressed in thousands of dollars.OVERVIEW OF TIM BASIC FINANCIAL STATBMMMTS This discussion and analysis are intended to serve as an introduction to the City's basic financial statements.
The City's basic financial statements are comprised of three components:
- 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial statements themselves.
COMPONENTS OF THE ANNUAL FINANCIAL REPORT managementea Basic Financial Reqi 1e It_[Discussion and [ tatieminaO
[ Supplementary Government-wide Fes e Financial1 StaemetsStatements Financial Statement cash flows. Thus, assets, liabilities, revenues and expenses are reported in these statements for some items that will only result in cash flows in future fiscal periods (e.g. uncollected revenues and accrued but unpaid interest expense).The Statement of Net Assets presents information on all of the City's assets and liabilities, including capital assets and long-term liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City as a whole is improving or deteriorating.
The Statement of Activities presents information showing how the City's net assets changed during the most recent fiscal year. Functional activities are highlighted in this statement whereby direct and indirect functional costs are shown net of related program revenue. This statement shows the extent to which the various functions depend on general taxes and non-program revenues for support Both the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities).
The governmental activities of the City include general government police, fiur, community development planning, public works, community services, public utilities (street lighting), convention, sports and entertainment (Visitor and Convention Bureau and the Arrowhead Pond of Anaheim), and interest on related long-term debt. The business-type activities of the City include an electric and water utility, solid waste and sanitation, golf courses, and convention, sports and entertainment venues (Anaheim Convention Center, Angel Stadium of Anaheim, and The Grove of Anaheim) operations.
The government-wide financial statements include not only the City itseli but also the Anaheim Housing Authority, Anaheim Redevelopment Agency, Community Center Authority, Anaheim Public Improvement Corporation, and Anaheim Public Financing Authority.
Although these entities are legally separate, they function for all practical purposes as a part of the City, and therefore have been included as blended component units as an integral part of the primary government.
The government-wide financial statements can be found on pages 21-23 of this report Fund finial statements.
The fund financial statements focus on current available resources and are organized and operated on the basis of funds, each of which is defined as a fiscal and accounting entity with a self-balancing set of accounts, established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations.
All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.Summary 4 PP Detail Government-wide financial statement&.
The government-wide financial statements are comprised of the Statement of Net Assets and the Statement of Activities.
These tvo statements are designed to provide readers with a broad overview of the City's finances utilizing the full accrual method of accounting, in a manner similar to a private-sector business.
Under the full accrual method of accounting, transactions are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related 11 CITY OF ANAHEIM Govenmental funds. Governmental funds ar used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, the governmental funds financial statements utilize the modified accrual basis of accounting, which focuses on near-term inflow and outflow of spendable resources, as w:l1 as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial requirements.
Because the focus of the governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government's near-term financing decisions.
Both the governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains nineteen individual governmental funds. Information is presented separately in the governmental funds Balance Sheet and in the governmental flmds Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund and Housing Authority Special Revenue Fund, both of which are considered to be major funds. Data for the other seventeen governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form of supplementary combining statements on pages 65-74 of this report The City adopts an annually appropriated budget for all governmental and proprietary funds. Budgetary comparison statements for the General Fund and all major special revenue funds (Housing Authority) are required to be presented and are included in the basic financial statements on pages 29-30 of this report. Additionally, budgetary schedules for the other governmental funds have been provided to demonstrate compliance with the budget and can be found as part of other supplementary schedules on pages 79-83 of this report.The governmental funds financial statements can be found on pages 25-28 of this report Proprietary fund& The City maintains tme different types of proprietary funds.Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements.
The City uses its enterprise funds to account for its electric and water utility, solid waste and sanitation, golf courses, and convention, sports and entertainment venues operations.
Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions.
The City uses internal service funds to account for its general benefits and insurance, motorized equipment, duplicating and printing, information services, and office maintenance and equipment operations.
Because these services predominantly benefit governmental rather than business-type functions, they have been included with governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary funds financial statements provide separate information for all of the enterprise funds, which are considered to be major funds of the City. Conversely, all of the internal service funds are combined into a single, aggregated presentation in the proprietary funds financial statements.
Individual fiud data for the internal service funds is provided in the form of combining statements elsewhere in this report.The proprietary funds financial statements can be found on pages 31-35 of this report Fiduciary finds. Fiduciary funds awe used to account for resources held for the benefit of parties outside the government Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs.The fiduciary fund financial statements can be found on page 36 of this report Notes to the financial statments.
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements can be found on pages 37-63 of this report Other supplementay information.
In addition to the basic financial statements and accompanying notes, this report also presents combining individual fund statements referred to earlier in connection with nonmajor governmental funds and internal service funds. Also included are the budgetary comparison Schedules of Revenues, Expenditures and Changes in Fund Balances for all nonmajor special revenue funds, all debt service funds, and all capital projects funds. These statements and schedules can be found on pages 79-83 of this report.FINANCIAL HIGHLIGHTS (Amounts in thousands)
- The City's net assets increased as a result of this year's operations.
Net assets of the City's governmental activities increased
$15,372 (2%) and business-type activities net assets increased
$13,234 (1%).12 CITY OF ANAEMM At the close of the current fiscal year, the City's governmental funds reported total ending fund balances of $205,469, an increase of $3,634. More than half of ending fund balances, $119,009, is available for spending at the City's discretion (unreserved fund balance)." At the end of the current fiscal year, unreserved undesignated fund balance for the General Fund was $39,179, or 20% of the total General Fund expenditures." The City's total long-term liabilities decreased by $6,705 (less than 1%) during the current fiscal year.GOVERNIMNT-WIDE FINANCIAL ANALYSIS NET ASSETS JUNE 30,2005 AND 2004 Governmental Activities 2005 2004 Business-type Activities 2005 2004 Total Government 2005 2004 Current and other assets Capital assets Total assets Other liabilities Long-term liabilities outstanding Total liabilities Net assets: invested in capital assets, net of related debt Restricted Unrestricted (deficit)Total net assets$ 449,054 1,177,304 1,626,358 74,517 907,110 981,627 605,346 95,459 (56,074)$ 644,731$ 426,638 1,150,311 1,576,949 54,350 893,240 947,590 576,922 91,291 (38,854)$ 629,359$ 635,031 1,172,394 1,807,425 80,986 770,886 851,872 645,802 80,700 229,051$ 955,553$ 650,412 1,156,750 1,807,162 73,382 791,461 864,843 621,507 77,924 242,888$ 942,319$1,084,085 2,349,698 3,433,783 155,503 1,677,996 1,833,499 1,251,148 176,159 172,977$1,600,284
$1,077,050 2,307,061 3,384,111 127,732 1,684,701 1,812,433 1,198,429 169,215 204,034$1,571,678 By far the largest portion of the City's net assets (78%) reflects its investment in capital assets (e.g. land, buildings, utility plant, machinery, equipment, and infrastructure), net of any related debt used to acquire those assets that is still outstanding.
The City uses these assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City's net assets (11%) represents resources that are subject to external restrintion on how they may be used. The remaining unrestricted net assets of$172,977 may be used to meet the City's ongoing obligations to citizens and creditors.
Of the unrestricted net assets, $229,051 is attributable to business-type activities, which offsets the governmental activities deficit unrestricted net assets of $56,074. The Anaheim Redevelopment Agency (Redevelopment Agency), a blended component unit of the City, represents
$129,715 of the deficit in unrestricted net assets. The Redevelopment Agency was established for the purpose of promoting economic revitalization and eliminating blight within the designated project area of the City. Often these activities do not result in residual assets, but rather underwrite the cost of a development activity deemed beneficial in meeting the Redevelopment Agency's objectives.
The resulting Statement of Net Assets reflects the debt obligation to be repaid through future tax revenues, without an offsetting asset While this is a routine function of such an entity, when blended with the City, its deficit of unrestricted net assets causes the governmental activities to report a consolidated deficit position.13 CITY OF ANAHEIM CHANGE IN NET ASSETS YEARS ENDED JUNE 30,2005 AND 2004 Governmental Business-type Total Activities Activities Government 2005 2004 2005 2004 2005 2004 REVENUES Program revenues: Charges for services $ 42,581 $ 39,454 $407,453 $417,895 $ 450,034 $ 457,349 Operating grants and contributions 77,870 81,877 2,473 1,471 80,343 83,348 Capital grants and contributions 20,906 11,904 11,513 7,468 32,419 19,372 General revenues: Taxes;Property taxes 78,620 57,239 78,620 57,239 Sales and use taxes 61,779 56,566 61,779 56,566 Transient occupancy taxes 67,141 63,268 67,141 63,268 Motor vehicle license fees 2,113 21,143 2,113 21,143 Other taxes 10,175 9,561 10,175 9,561 Unrestricted investment earnings 8,071 3,991 16,592 6,120 24,663 10,111 Other 1,499 928 418 1,917 928 Gain (loss) on sale of capital assets (722) 169 (1,164) 1,723 (1,886) 1,892 Total revenues 370,033 346,100 437,285 434,677 807,318 780,777 EXPENSES Program activities:
Governmental activities:
General government 8,221 7,582 8,221 7,582 Police 91,713 77,541 91,713 77,541 Fire 46,596 37,610 46,596 37,610 Community Development 83,183 86,542 83,183 86,542 Planning 13,206 12,628 13,206 12,628 Public Works 39,463 41,672 39,463 41,672 Community Services 28,314 27,050 28,314 27,050 Public Utilities 1,557 1,566 1,557 1,566 Convention, Sports and Entertainment 7,703 7,536 7,703 7,536 Interest on long-term debt 47,105 48,503 47,105 48,503 Business-type activities:
Electric Utility 274,622 280,878 274,622 280,878 Water Utility 41,313 42,949 41,313 42,949 Sanitation 45,429 41.431 45,429 41,431 Golf Courses 4,062 4,278 4,062 4,278 Convention, Sports and Entertainment Venues 46,225 43,406 46,225 43,406 Total expenses 367,061 348,230 411,651 412,942 778,712 761,172 Excess (deficiency) before transfers 2,972 (2,130) 25,634 21,735 28,606 19,605 Transfers in (out) 12,400 11,534 (12,400) (11,534)Increase in net assets 15,372 9,404 13,234 10,201 28,606 19,605 Net as tsat beginning of year 629,359 619,955 942,319 932,118 1,571,678 1,552,073 Net assets at end of year $644,731 $629,359 $955,553 $942,319 51,600,284
$1,571,678 14 CITY OF ANAHBEIM REVENUES BY SOURCE -GO UAL ACTIVITIES mwinv ml CK16u Other Odierajte 2% 1 3%Motor veltido 11kcese floes'rrnsumt occupane laxes 19%Cluges for leAmls 11%Op ting grants/-Wand1cc enm Sales nd u txes 17%C itgrants and contnbution 6%Govvwmment activilim.
The most significant revenues of the governmental activities are general taxes (59%), which include property taxes (21%), sales and use taxes (17%), transient occupancy taxes (18%), other taxes (3%) motor vehicle license fees (VLF) (less than 1%). Program revenues are 39% of the total revenues of the governmental activities, which include charges for services (12%), operating grants and contributions (2 1%), and capital grants and contributions (6%).Public safety (police and fie) expenses are most significant (38%) of all governmental activities expenses, followed by community development (23%), interest on long-term debt (13%), public works (11%), and various other programs (15%). Included in these amounts is depreciation expense, which is 6% of the total expenses for governmental activities.
Governmental activities revenues increased
$23,933 (7%) in the current fiscal year.Capital grants and contributions increased
$9,002 (76%) primarily due to funding for the Burlington Northern Santa Fe (BNSF) Soundwall project. The soundwall is approximately 13,000 feet long extending from Imperial Highway (SR-90) to Yorba Linda Boulevard/Weir Canyon Road. Property taxes increased
$21,381 (37%), primarily as a result of the effect of shifling revenue from motor vehicle license fees to property taxes ($15,818) as part of the State of California 2004 Budget Act. The overall strength in the economy also contributed to the increase in property taxes, as well as the sales and use taxes increase of $5,213 (9%) and the transient occupancy taxes (TOT) increase of $3,873 (6%). Additionally, investment earnings increased
$4,080 (102%), primarily due to the reduction in the change in unrealized investment losses.Governmental activities expenses increased
$18,831 (5%) in the current fiscal year. The most significant change in program expenses was the increase in police expenses of$14,172 (18%), primarily due to increased costs for benefits, including retirement and worker's compensation costs of $9,399. Additionally, fire expenses increased
$8,986 (24%) primarily due to increased costs for benefits, including retirement and workers'compensation costs. These increases were partially offset by various decreases in other programs expenses.There were no other programs with significant or unusual changes.rop taxes 21%EXPENSES AND PROGRAM REVENUES -GOVERNMENTAL ACTIVITIES SIM-slowa 570=SIGA.so/$/li I,/U Program rUeM U Eapaes.15 CITY OF ANAHEIM REVENUES BY SOURCE -BUSINESS-TYPE ACTIVITIES Unresticted Capital grants and contributions 3%operating grants and conrbutons------
\ aargoa for sevicea 93%EXPENSES AND PROGRAM REVENUES -BUSINESS-TYPE BuWAinuyp aciviti. Business-type activities increased the City's net assets by S 13,234. Key elements of this change are as follows: Charges for services of $407,453 decreased
$10,442 (3%). The most significant decrease in charges for services is due to the Electric Utility decrease of $6,983 (2%) as a result of a decrease of 3% in megawatt hours sold.Investment earnings of $16,592 increased
$10,472 (171%) primarily due to the reduction in the change in unrealized investment losses and $134 million in Electric Utility bond proceeds received at the end of the prior fiscal year that were available for investment during fiscal year 2005.Program expenses of $411,651 decreased
$1,291 (less than 1%). The most significant change in program expenses is the decrease in the Electric Utility of $6,256 (2%). This is primarily due to the decrease in the cost of purchased powe due to decreases in demand.This decrease was offset by the increase in Sanitation expenses of $3,998 (10%M) primarily related to the implementation of a flow monitoring project as a requirement of the National Pollutant Discharge Elimination System (NPDES) permit and the increase in Convention, Sports and Entertainment Venues expenses of $2,819 (7%) primarily due to increased labor and professional services expenses.FINANCIAL ANALYSIS OF THI CITY'S FUNDS Governmwatal funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources.
Such information is useful in assessing the City's financing requirements.
In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.As of the end of the current fiscal year, the City's governmental funds reported total ending fund balances of $205,469, an increase of $3,634 in comparison with the prior fiscal year.More than half of the total ending fund balances ($119,009) constituted unreserved fund balances, which are considered available for appropriation.
The remainder of the fund balances is reserved to indicate that it is not available for new spending because it has already been committed
- 1) to pay debt service ($34,872), and 2) to offset non-current financial resources that arc not anticipated to be liquidated in the near term ($51,588).
General Fund revenues were $25,023 (13%) greater than in the prior fiscal year primarily due to the increases in property taxes, sales taxes and in transient occupancy taxes as discussed in the government-wide financial analysis of governmental activities.
Expenditures increased
$11,347 (16%) for police and $7,491 (21%) for fire as discussed in the government-wide financial analysis of governmental activities.
There were no other significant expenditure variances.
- -h f&MM I tszom 4--Sim= 4--Mass I-l Wd- L'" 110b.!!_.ebs~
so J--U Program rs M UM M XP"n 16 CITY OF ANAREHIM The Housing Authority revenues and other financing sources decreased by $7,100 (11%)and expenditures and other financing uses decreased by $6,784 (11%) primarily due to a decrease in the number of units leased for the Section 8 Rental Assistance Program.Propriotary funds. The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detaiL The Electric Utility's fund net assets increased
$13,301 (4%) in the current fiscal year.The most significant factors of the changes in fund net assets are discussed in the government-wide financial analysis of business-type activities.
The Water Utility's fund net assets decreased
$1,960 (less than 1%) in the current year.There ware no significant or unusual changes.Sanitation's fund net assets increased
$39 (less than 1%) in the current fiscal year. There ware no significant or unusual changes, other than that previously discussed in the government-wide financial analysis of business-type activities.
The Golf Courses' fund net assets decreased
$221 (3%) in the current year. There were no significant or unusual changes.The Convention, Sports and Entertainment Venues fund net assets increased
$3,432 (1%)in the current year. There were no significant or unusual changes.GENERAL FUND BUDGBTARY H[GHIOUHTS During the year the original budget was amended to increase appropriations by $9,280 (5%). Following are the main components of the increase:* $2,539 for carryover of prior year expenditure appropriations
- $2,046 for additional public warks expenditures for a landslide* $1,769 for additional police workers' compensation expenditures
- $1,769 for additional fire warkers' compensation expenditures
- $750 for additional police expenditures related to the addition of new swom officers and participation in special events that were not budgeted The increase in appropriations was to be funded from additional revenues, primarily property taxes, of $5,879 and the remaining
$3,401 from fund balance.General Fund revenues of $223,138 exceeded budgeted revenues of $210,992 by $12,146 (6%). The excess was primarily due to property taxes ($2,860), sales and use taxes ($4,317) and transient occupancy taxes ($2,947) due to the overall strength in the economy.General Fund expenditures were less than budgeted.
Of the total appropriations of$201,581 approximately two percent, or $3,982 went unspent. There were no significant variances.
CAPITAL ASSETS AND DEBT ADMINISTRATION CAPITAL ASSETS (net of accumulated depreciation)
JUNE 30,2005 AND 2004 Governmental Activities 2005 2004 Business-type Activities 2005 2004 Total Government 2005 2004 Land Consuction in progress Nuclear fuel at amortized cost Buildings, structures and improvements Utility plant Machinery and equipment Infastr ure Total$ 495,006 46,105 141,587 33,950 460,656$1,177,304
$ 490,917 19,597 145,125 25,329 469,343$1,150,311 S 36,281 27,951 2,197 350,518 741,354 14,093$ 31,538 45,950 2,730 360,361 707,339 8,832$ 531,287 74,056 2,197 492.105 741,354 48,043 460,656$2,349,698
$ 522,455 65,547 2,730 505,486 707,339 34,161 469,343$2,307,061
$1,172,394
$1,156,750 17 MYr OF ANALEIM Capital assets. The City's investment in capital assets for its governmental and business-type activities at June 30, 2005, amounted to $2,349,698 (net of accumulated depreciation).
This investment in capital assets included land, construction in progress, nuclear fuel at amortized cost, buildings, structures and improvements, utility plant, machinery and equipment, and infrastructure.
The total increase in the City's investment in capital assets resulted from many various projects throughout the City. The total increase over the prior fiscal year was two percent, of which governmental activities increased two percent and business-type activities increased one percent Additional information on the City's capital assets can be found in note 5 of the notes to the financial statements, on pages 47-48 of this report.LONG-TERM LIABIITIES JUNE 30,2005 AND 2004 Governmental Activities 2005 2004 Business-type Activities 2005 2004 Total Government 2005 2004 General obligation bonds Revenue bonds Tax allocation bonds Certificates of participation Capital lease obligations Notes and loans payable Self-insrance Retired medical Decommissioning provision Total S 6,625 569,016 164,134 33,174 1,523 28,669 29,920 74,049$907,110 S 7,060 562,118 168,360 36,107 2,001 22,747 26,382 68,465$893,240$528,130 132,952 180 15,842 93,782$770,886$543,780 140,355 349 16,678 90,299$791,461$ 6,625 1,097,146 164,134 166,126 1,703 44,511 29,920 74,049 93,782$1,677,996
$ 7,060 1,105,898 168,360 176,462 2,350 39,425 26,382 68,465 90,299$1,684,701 LoAg-term liabilities, The City's outstanding long-term liabilities, including bonds, certificates of participation, capital leases, notes and loans payable, self-insurance, retired medical, and the provision for decommissioning costs totaled $1,677,996 at June 30, 2005. Of this total, $907,110 (54%) was in governmental activities and $770,886 (46%)was in business-type activities.
The City's outstanding long-term liabilities decreased$6,705 (less than 1%) in fiscal year 2005. The decrease is primarily due to the repayment of principal on long-term liabilities.
Additional information on the City's long-term liabilities can be found in note 7 of the notes to the financial statements, on pages 49-57 of this report.ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES" The unemployment rate in the Orange County, California area for June 2005 was 3.9%9, which remains below both the state (5.4%) and national (5.0%) average.Increases in the professional and business services sectors have provided an overall increase in Orange County job creation over the last twelve months." TOT revenue continues to be the City's largest General Fund revenue source. TOT was budgeted at $64.2 million for the current fiscal year and actual TOT revenue was $67.1 million. The City has budgeted a continuation of this increased hotel demand in fisal year 2006 and has budgeted $70.8 million for the 2006 fiscal year.18 CITY OF ANABEIM For the 2006 fiscal year, the City appropriated
$222.7 million of the budgeted $251.6 REQUESTS FOR INFORMATION million in estimated available fund balance in the General Fund for spending.
This leaves $28.9 million in estimated available reserves, which is 13% of General Fund This financial report is designed to provide a general overview of the City's finances for appropriations.
The City's long-standing policy is to maintain General Fund reserves all those with an interest in the government's finances.
Questions concerning any of the of at least 7% to 10% of annual appropriations, information provided in this report or requests for additional information should be addressed to the Office of the Finance Director, City of Anaheim, 200 South Anaheim" The City annually reviews all of its fees as part of the budget adoption process. Boulevard, Suite 643, Anaheim, California, 92805.Developer, construction, and other fees applicable to residents and developers doing business with the City were adjusted in June 2005, generally by the average of CPI (3.7%). This is consistent with the City's policy of recovering costs without becoming an undue financial burden on existing tax and rate payers." In fiscal year 2006, cities and counties will contribute
$700 million ($350 million for cities and $350 million for counties) as part of an effort to assist the State balance its budget (ERAF II). The City's share of the contribution is $3,750 and has been included in the City's fiscal year 2006 budget. The contribution will come from a reduction in the City's secured property taxes.19 (This page left blank intentionally) 20
MTY OF ANAIHIM Statement of Net Assets June 30, 2005 (in thousands)
Govetrmental Buuinass-y Activities Activitie Total ASSTS Cash and cash equivalents
$ 42,930 $ 33,164 S 76,094 Inestments 243,633 192,477 436,110 Accounts receivable, net 9,134 45,671 54,805 Accrued interest receivable 2,562 3,865 6,427 Internal balances, net (675) 675 Due from othe governments 26,312 26,312 Notes receivable, net 44,097 44,097 Inventories 796 7,460 8,256 Land held for resale, net 27,866 27,866 Restricted cash and cash equivalents 32,793 8,619 41,412 Restricted investments 17,594 292,968 310,562 Unamortizod debt issuance costs 1I 7,680 7,691 Bond payment receivable 19,542 19,542 Pipeline receivable 405 405 Prepaids and oher assets 2,001 22,505 24,506 Capital assets, net: Nondepreciable 541,111 66,429 607,540 Depreciable 636,193 1,105,95 1 42158 Total assets 1,626,358 1,807,425 3,433,783 IJABUJT[ES Accounts payable 20,500 22,808 43,308 Wages payable 22,075 1,348 23,423 Due to other governments 5,734 5,734 Interest payable 13,217 8,831 22,048 Arbitrage rebate liability 183 183 Deposits 4,713 10,142 14,855 Regulatory credits 36,659 36,659 Unearned revenues 8,278 1,015 9,293 Noncurrent liabilities:
Due within one year 30,937 23,950 54,887 Due in more than one year 876,173 746,936 1,623,109 Total liabilities 981,627 851,872 1,833,499 NETAS8ET8 Invested in capital assets, net of related debt 605,346 645,802 1,251,148 Restricted fo.Debt service 12,602 57,252 69,854 Capital projects 12,561 18,631 31,192 Community development 45,602 45,602 Streets and roads 20,443 20,443 Other purposes 4,251 4,817 9,068 Unresricted (deficit)
(56,074) 229,051 172,977 Total netassets
$ 644,731 $ 955,553 $1,600,284 The accompanying notes are an integral part of these financial statements 21 (This page left blank intentionally) 22 CITY OF ANAHEIM Statement of Activities Year Ended June 30, 2005 (in thousands)-R " Allocation
_________________Ne&
~) Reveuie and Prorni Revnus NiotAnct Operating Capital Chaiuq for Grants and Grants and Govenumental Busns-type Servioe Contributions Contributions Acfiviu Activitics Total FunationalPrograms Governmental activities:
General government police Fire Community Development Planning Public Works Community Services Public Utilities Convention, Sports and Entertainment Interest on long-term debt Total governmental activities Business-type activities:
Electric Utility Water Utility Solid Waste and Sanitation Golf Courses Convention, Sports and Entertainment Venues Total business-type activities Total government
$18,357 89,865 45,456 82,397 12,693 38,702 27,774 1,557 7,703 47,105 371,609 272,594 40,444 45,118 3,931 45,016 407,103$778,712$(10,136)1,848 1,140 786 513 761 540$ 1,442 $ 120 9,840 4,164 7,909 494 4,667 57,135 6,994 1,242 6,544 13,611 4,985 1,104 200 (4,548) 42,581 77,870$ 152 147 22 17,324 579 2,682 20,906 1,797 1,402 8,314 11,513$32,419$ (6,659)(77,557)(38,046)(21,359)(4,970)(1,984)(21,646)(1,557)(4,821)(47,05)(225,704)$ (6,659)(77,557)(38,046)(21,359)(4,970)(1,984)(21,646)(1,557)(4,821)(47,105)(225,704)2,028 869 311 131 1,209 4,548 284,740 34 43,427 46,480 1,276 5,394 27,412 1,163 407,453 2,473$450,034 $80,343 General revenues: Taxes: Property taxes Sales and use taxes Transient occupancy taxes Motor vehicle license fees (unrestricted intergovernmental)
Other hs Unrestricted investment earnings Other Loss on sale of capital assets Transfers Total general revenues and transfers Change in net assets Net assets at beginning of year Net assets at end of year$ 11,949 11,949 3,516 3,516 2,327 2,327 1,332 1,332 (9,336) (9,336)9,788 9,788 (225,704) 9,788 (215,916)78,620 78,620 61,779 61,779 67,141 67,141 2,113 2,113 10,175 10,175 8,071 16,592 24,663 1,499 418 1,917 (722) (1,164) (1,886)12,400 (12,400)241,076 3,446 244,522 15,372 13,234 28,606 629,359 942,319 1,571,678$644,731 $955,553 $1,600,284 The accompanying notes are an integral part of these financial statements 23 (This page left blank intentionally) 24 CITY OF ANAHEIM Balance Sheet Governmental Funds June 30, 2005 (in thousands)
Nonmajor Total Housing Guvconuntal Gowamoutal General Authority Fund Funds ASSETS Cash and cash equivalents
$ 4,972 $ 2,181 S 14,856 $ 22,009 lnvesunents 28,598 9,786 84,841 123,225 Accounts receivable, net 8,484 111 8,595 Accrued interest receivable 293 99 1,035 1,427 Notes receivable 16,446 31,804 48,250 Interfimd receivable 10,272 12,145 22,417 Due from other governments 14,466 322 11,524 26,312 Inventories 164 164 Land held for resale, net 27,866 27,866 Prepaids and other assets 168 1,814 1,982 Restricted cash and cash equivalents 32,776 32,776 Restricted investnents 17,121 17,121 Total assets $67,417 $28,834 $235,893 $332,144 LIABILHI1BS AND FUND BALANCES Liabilities:
Accounts payable $ 3,218 $ 478 $ 11,397 S 15,093 Wages payable 4,043 101 276 4,420 Deposits 3,659 71 983 4,713 lnterfind payable 104 27,012 27,116 Due to other governments 5,734 5,734 Deferred liabilities 7,322 16,768 45,509 69,599 Total liabilities 18,346 23,152 85,177 126,675 Fund balances: Reserved for noncurrent intcrftmd receivable 9,560 12,016 21,576 Reserved for inventories 164 164 Reserved for debt service 34,872 34,872 Reserved for land held for resale 27,866 27,866 Reserved for prepaids and other assets 168 1,814 1,982 Unreserved
-designated for debt service, reported in Debt Service Funds 1,457 1,457 Unreserved
-designated for capital projects, reported in: Special Revenue Funds 14,974 14,974 Capital Projects Funds 36,497 36,497 Unreserved
-undesignated, reported in: General Fund 39,179 39,179 Special Revenue Funds 5,682 25,955 31,637 Capital Projects Funds (4,735) (4,735)Total fund balances 49,071 5,682 150,716 205,469 Total liabilities and fund balances $67,417 $28,834 $235,893 $332,144 The accompanying notes are an integral part of these finacial statements 25 CITY OF ANAHEIM Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets June 30, 2005 (in thousands)
Total fund balances -governmental funds $ 205,469 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in the operation of governmental funds are not financial resources and, therefore, are not reported in the funds. These assets consist of: Land $ 495,006 Construction in progress 39,239 Buildings, structures and improvements 214,399 Machinery and equipment 31,298 Infiastructure 713,165 Accumulated depreciation (344,189)Total capital assets, net 1,148,918 Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds. 57,764 Internal service funds are used by management to charge the costs of certain activities, such as insurance, employee benefits, and fleet services, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Assets. 47,148 Compensated absences, not otherwise included in the internal service funds, are not due and payable in the current period and, therefore, ar not reported in the funds. (362)Long-term liabilities of governmental funds, including bonds, certificates of participation, and notes and loans payable ($801,035), and accrued interest payable ($13,171), are not due and payable in the current period and, therefore, are not reported in the funds. (814,206)Net assets of governmental activities S 644,731 The wccompanying notes are an integral part of these financial statements 26 CITY OF ANABEIM Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended June 30, 2005 (in thodusads)
No=mjo TOWa Genra AthriyGund Farunaids Revenues:
Gnr ud ud Property taxes S 42,878 $ 39,071 S 81,949 Sales and use taxe 59,976 59,976 Transient occupancy taxes 67,141 67,141 Other taxes 7,542 7,542 Licenses, fees and permits 17,315 S 73 1,361 18,749 Integovenmental revenues 9,511 53,116 38,820 101,447 Charges for services 12,130 12,130 Fines, forfeits and penalties 3,454 3,454 Use of money and property 2,554 382 6,208 9,144 Other 637 1,356 4,150 6,143 Total revenues 223,138 54,927 89,610 367,675 Expendiurs City Council 306 306 City Administration 2,261 2,261 City Attorney 3,627 120 3,747 City Clerk 536 536 Human Resources 1,207 1,207 Finance 3,711 3,711 City Treasurer 508 508 Police 82,721 3,808 86,529 Fire 43,760 422 44,182 Community Development 363 54,651 28,370 83,384 Planning 11,024 1,289 12,313 Public Works 15,609 6,639 22,248 Community Services 24,495 1,229 25,724 Public Utilities 1,557 1,557 Convention, Sports and Entertainment 4,967 173 5,140 Capital outlay 676 953 39,672 41,301 Debt service: Principal retirement 206 9,928 10,134 Interest and fiscal agent charges 65 38,616 38,681 Total expenditures 197,599 55,604 130,266 383,469 Excess (deficiency) of revenues over (under) expenditures 25,539 J67) (40,656) (15,794)Other financing sources (uses).Transfers in 25,974 1,000 72,192 99,166 Transfers out (48,668) (291) (39,318) (88,277)Issuance of debt 125 7,164 7,289 Litigation claim settlement proceeds 1,250 1,250 Total other financing sources (uses) (21,444) 834 40,038 19,428 Net change in fund balances 4,095 157 (618) 3,634 Fund balances at beginning of year 44,976 5,525 151,334 201,835 Fund balances at end of year S 49,071 $ 5,682 $150,716 $205,469 The accompanying notes are an integral part of these financial statements 27 CITY OF ANAHEAIM Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30,2005 (in thousands)
Net change in fund balances -total governmental funds $ 3,634 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures.
However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.This is the amount by which capital outlays ($41,301) exceeded depreciation
($23,803) in the current period. 17,498 Transfers of capital assets between governmental funds and proprietary funds do not provide current financial resources and are not reported as transfers in the funds. 1,511 The net effect of other miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase net assets. 1,540 Revenues that provide current financial resources in the governmental funds but have been reported in the Statement of Activities in prior fiscal years. (3,731)Proceeds from long-term debt provide current financial resources to governmental funds, but the issuing of debt increases long-term liabilities in the Statement of Net Assets. (7,289)Repayment of principal on long-term debt is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Assets. 10,134 Certain expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (6,644)Internal service funds are used by management to charge the costs of certain activities, such as insurance, employee benefits, and fleet services, to individual funds. The net expense of the internal service funds is reported with governmental activities.
(1,281)Change in net assets of governmental activities
$15,372 The accompanying notes are an integral part of these financial statements 28 CITY OF ANAHBEIM Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Budgetary Basis Actual -General Fund Year Ended June 30, 2005 (in thousands)
Varianoll With Budgetal Amounts Fia nBe -Oriowna Final Actual Over/(Under)
Revenues: Property taxes $ 21,724 S 40,018 $ 42,878 $ 2,860 Sales and use taxes 55,659 55,659 59,976 4,317 Transient occupancy taxes 64,194 64,194 67,141 2,947 Other taxes 7,142 7,142 7,542 400 Licenses, fees and permits 17,076 17,412 17,315 (97)Intergovernmental revenues 21.601 8,625 9,511 886 Charges for services 12,437 12,230 12.130 (100)Fines, forfeits and penalties 2,896 2,896 3,454 558 Use of money and property 2,318 2,316 2,554 238 Other 66 500 637 137 Total revenues 205,113 210,992 223,138 $12,146 Expenditures:
City Council 309 309 306 (3)City Administration 2,416 2,422 2,267 (155)City Attorney 3,627 3,627 3,627 (0)City Clerk 547 551 536 (15)Human Resources 1,215 1,215 1,207 (8)Finance 3,833 3,837 3.711 (126)City Treasurer 580 580 508 (72)Police 80,488 83,329 83,252 (77)Fire 41,598 44,264 43,773 (491)Community Development 313 363 363 0 Planning 11,324 11,770 11,024 (746)Public Works 14,001 16,421 15,655 (766)Community Services 25,617 26,326 24,846 (1,480)Public Utilities 1,592 1,592 1,557 (35)Convention, Sports and Entertainment 4,841 4,975 4,967 (8)Total expenditures 192,301 201,581 197,599 (3,982)Excess of revenues over expenditures 12,812 9,411 25,539 16,128 Other financing sources (uses): Transfers in 26,557 26,557 25,974 (583)Transfirs out (42,621) (48,024) (48,668) (644)Litigation claim settlement proceeds 1,250 1,250 Total other financing uses (16,064) (21,467) (21,444 23 Net change in fund balance (3,252) (12.056) 4,095 16,151 Fund balance at beginning of year 44,976 44,976 44,976 Fund balance at end of year $ 41,724 S 32,920 $ 49,071 $16,151 The notes are an integral part of these financial statements 29 CITY OF ANAHEIM Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual -Housing Authority Year Ended June 30, 2005 (in thousands)
Vanaane with B_ _ _ _t__Amounts Finl Budget -Original Final ActUal Over/(Under)
Revenues: Licenses, fees and permits $ 80 $ 80 $ 73 $ (7)Intergovernmental revenues 60,116 62,950 53,116 (9,834)Use of money and property 263 263 382 119 Other 797 797 1,356 559 Total revenues 61,256 64,090 54,927 (9,163)Expenditures:
Community Development 68,346 72,077 55,604 (16,473)Total expenditures 68,346 72,077 55,604 (16,473)Deficiency of revenues under expenditures (7,090) (7,987) (677) 7,310 Other financing sources (uses): Transfers in 150 150 1,000 850 Transfers out (1,216) (303) (291) 12 Issuance of debt 1,920 1,920 125 (1,795)Sales of capital assets 3,165 3,165 (3,165)Total other financing sources 4,019 4,932 834 (4,098)Excess (deficiency) of revenues and other sources over (under) expenditures and other uses (3,071) (3,055) 157 3,212 Fund balance at beginning of year 5,525 5,525 5,525 Fund balance at end of year $ 2,454 S 2,470 S 5,682 $ 3,212 The accompanying notes ame an integral part of these fmancial statements 30 CrrY OF ANAhEIM Statement of Fund Net Assets Proprietary Funds June 30, 2005 (in thousands)
Businuayp Aadvtie -Enterprise Minds ASSETS Current assets: Cash and cash equivalents Investments Restricted cash and cash equivalents Restricted investments Accounts receivable, net Accrued interest receivable Interfund receivable Inventories Bond payment receivable Prepaids and other assets Total current assets Noncurrent assets: Restricted cash and cash equivalents Restricted investments Unamortized debt issuance costs Bond payment receivable, less current portion Pipeline receivable Interfund receivable, less current portion Prepaids and other assets Capital assets: Land Buildings, structures and improvements Utility plant Machinery and equipment Construction in progress Less accumulated depreciation Nuclear fuel, at amortized cost Capital assets, net Total noncurrent assets Total assets Electri& Water Golf Utility Utility Sanitation Counes S 19,742 $ 4,711 $ 3,993 $ 49 115,015 27,443 23,247 288 6,824 1,000 9,714 2,140 31,726 5,918 6,860 106 2,605 324 236 1 280 7,274 178 349 343 193,529 42,057 34,336 444 261,655 3,686 5,993 222 405 700 21,811 Conv"i4 Sports and Entertainment Vanua$ 4,669 26,484 1,061 699 8 1,260 2 34,183 Govammetal Activites
-Intenal Servic Total Funds 14,308 1,573 316 48 1,949 15,581 795 15,773 1,465 18,282 10,699 18,135 462,005 25,557 996 506,693 (133,956)372,737 419,751 453,934$ 33,164 192,477 7,824 11,854 45,671 3,865 280 7,460 1,260 694 304,549 795 281,114 7,680 18,282 405 11,399 21,811 36,281 477,634 1,152,329 30,443 27,951 1,724,638 (554,441)2,197 1,172,394 1,513,880 1,818,429$ 20,921 120,408 539 1,135 632 19 143,654 17 473 11 104 6,603 47,770 6,866 61,239 (32,853)28,386 28,991 172,645 863,555 288,774 4,116 770 2 4 , 3 0 5 2 , 6 5 0 _ _ i _ 4 8 _ 1 8 ,3 0 902,168 292,997 4,480 18,300 (335,674)
(75,301) (3,721) (5,789)2,197 568,691 217,696 759 12,511 858,850 222,009 759 12,511 1,052,379 264,066 35,095 12,955 (contiWed) 31 CiTY OF ANAHEBIM Statement of Fund Net Assets Proprietary Funds June 30, 2005 (n thousands) (continued)
Busniess-typ Activities
-Enterprise Funds Electric Water Utilty Uay Goo Santaton Golf. Entertakinent Sanitaion Corses aes Gowvenental Acfiviti-Internal service Total Funds LIABUTI, ES Current liabilities (payable from current assets): Accounts payable Wages payable Interest payable Compensated absences Long-term obligations Unearned revenues Deposits Interfund payable Regulatory credits Total current liabilities (payable from current assets)Current liabilities (payable from restricted assets): Accounts payable Wages payable Interest payable Arbitrage rebate liability Long-term obligations Total acrrent liabilities (payable from restricted assets)Total current liabilities Noncurrent liabilities:
Interflnd payable, less current portion Long-term obligations, less current portion Provision for decommissioning costs Total noncurrent liabilities Total liabilities FUND NET ASSETS Invested in capital assets, net of related debt Restricted for.Debt service Capital projects Other purposes Unrestricted (deficit)Total fund net assets$ 11,492 680 3,546 5,479$ 5,419 S 3,511 157 96$ 74 13 180$ 1,930 373 2,134 7,837 1,015 1,622 280 15,191 2,236 36,497 162 57,694 8,154 800 5 548 4,407 640 382 29 6,347 181 9,599 16,538 74,232 501,981 93,782 595,763 669,995 350 2 2,788 3,140 11,294 24,483 24,483 35,777 4,407 640 5,556 15,191 700 126,690 127,390 142,581 264,319$ 22,426 1,319 2,134 11,563 1,015 10,142 828 36,659 86,086 382 29 6,697 183 12,387 19,678 105,764 6,256 653,154 93,782 753,192 858,956 645,802 57,252 18,631 4,817 232,971 959,473$ 5,407 1,071 46 16,222 16,398 596 39,740 4,407 5,556 6,196 39,740 89,677 89,677 129,417 26,291 446 16,491$ 43,228 177,746 190,467 759 12,511 43,623 10,844 4,817 145,354$ 382,384 4,297 2,177 31,348$228,289 9,332 5,610 29,929 (5,752) 32,092$30,688 $ 6,759 $311,353 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.Net assets of business-type activities The accompanying notes are an integral part of these financial statements (3,920)$955,553 32 CITY OF ANAHEIM Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Funds Year Ended June 30, 2005 (In thousads)Bwsinea-yp Activitiesa-Enterpriae Fundh Operating revenues: Sales of light and power Transmission revenues Sales of water Sanitation fees Green fees and cart rentals Facilities rental Concession fees Other Total operating revenues Operatin e=pPnses Fuel and generation of power Cost of purchased water Treatment and pumping of water Maintenance, operations and administation Insurance premiums and claims Compensated absences and other benefits Depreciation and amortization Total operating expenses Operating income (loss)Nonoperating income (expenses):
Intergovernmental revenues Interest income Debt service recovery Other nanoperating income Interest expense Gain/(loss) from disposal of capital assets Total nonoperating income (expenses)
Income (loss) before contributions and transfers Capital contributions Transfers in Transfers out Change in fund net assets Fund net assets at beginning of year Fund net assets at end of year Electric Utility$257,406 24,085 Water Ut$ 2ty S 42,336 Sports and Golf Entertainment Sanitation Courses Vmuea$45,156 Goverimental Acivitie -Internal Sevice Funds$ 5,013 181 3,249 1,091 1,324 200 284,740 43,427 46,480 5,394 146,472 37,114 34,976 29,764 248,326 36,414 34 12,669 (25,730)(13,027)23,387 2,277 3,248 (15,611)13,301 369,083$382,384 17,759 3,401 12,152 6,539 39,851 3,576 1,057 418 (1,010)465 4,041 1,402 (7,403)(1,960)230,249$228,289 44,928 388 45,316 1,164 1,276 658 (38)1,896 3,060 (3,021)39 30,649$30,688 3,342 579 3,921 1,473 5 (141)(136)1,337 142 (1.700)(221)6,980$ 6,759$ 23,253 3,107 1,052 27,412 25,555 12,376 37,931 (10,519)2,203 1,163 (8,068)(1,126)(5,828)(16,347)8,314 11,465 3,432 307,921$311,353 Total$257,406 24,085 42,336 45,156 5,013 23,253 3,288 6,916 407,453 146,472 37,114 17,759 3,401 120,953 49,646 375,345 32,108 1,310 16,592 1,163 418 (34,949)(1,164)(16,630)15,478 11,993 14,855 (27,735)14,591 (1,357)$ 13,234$112,990 112,990 29,662 11,691 73,592 3,788 118,733 (5,743)3,167 (149)87 3,105 (2,638)2,183 (455)43,683$ 43,228 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.Change in net assets of business-type activities The accompanying notes are an integral part of these financial statements 33 CITY OF ANAhEIM Statement of Cash Flows Proprietary Funds Year Ended June 30, 2005 (In thousads)Businea-type Ativities
-Enterprise Funds Electric Water Utilty Uiity Sports and Golf Entertainment Sanitation Coursit -Vaues Governmmal Activities-Internal Service Total Funds Cash flows fiom operating activities:
Receipts from customers and users Receipts from interfund services provided Payments to suppliers Payments to employees Payments for interfund services used Payments for insurance premiums and claims Other receipts (payments)
Net cash provided by operating activities Cash flows from noncapital financing activities:
Receipt (payment) of interfund balances Transfers in Transfers out Operating grant receipts Net cash provided by (used in) noncapital fMnancing activities Cash flows from capital and telated financing acivities:
Proceeds from sale of capital assets Capital contributions Capital purchases Nuclear fuel purchases Debt service recovery Principal payments on long-term debt Interest payments Receipt (payment) of interfund balances for capital purposes Net cash used in capital and related financing activities Cuah flar fiom investing aWivities:
Purchase of investment securities Proceeds from sale and maturity of investment securities Interest received Collection of note receivable Net cash provided by investing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year$ 297,024 1,691 (186,831)(26,323)(8,429)$ 43,037 270 (21,941)(8,924)(3,634)$43,992 34 (38,326)(3,745)(2,415)$5,161 (2,894)(458)(211)S 27,961 (7,842)(14,482)(1,938)$ 417,175 1,995 (257,834)(53,932)(16,627)$112,975 (16,644)(75,044)(2,332)(7,792)(89)11,074 368 418 1,290 200 77,132 9,226 830 1,798 280 1,908 3,699 92,685 434 11,465 (15,216) (2,417)34 (14,902) (2,417)(3,021) (1,700)1,276 (1,745) (1,700)11,899 1,527 (46,179)(966)(15,875)(25,008)(86,501)(982,349)989,558 14,822 22,031 (2,240)28,806$ 26,566 162 87 (8,618)(44) (1,766)(2,401)(993)(11,763)(80,751)85,771 1,478 73 6,571 1,617 4,094$ 5,711 (continued)
(124)(144)(312)(58,845)60,001 943 2,099 1,184 2,809$ 3,993 (546)743 II 208 (6)55$ 49 2,338 (7,565)(7,357)(280)(14.630)(110,629)108,506 2,519 396 1,364 4,100$ 5,464 714 11,465 (22,354)1,310 (8,865)162 1,614 (56,607)(966)2,338 (25,841)(33,482)(424)(113,206)(1,233,120) 1,244,579 19,773 73 31,305 1,919 39,864$ 41,783 368 105 (10,250)(485)(153)(10,783)(309,909)311,573 4,571 6,235 6,894 14,044$ 20,938 34 CITY OF ANAHEIM Statement of Cash Flows Proprietary Funds Year Ended June 30, 2005(In thousands) (continued)
Business-ype Activitie
-Enterris Funds Electric Water utiity Utility Sanitation
$36,414 $ 3,576 $1,164 Conveion.sports and Golf Entortainment Courm Venues Governmental Activities-LAterMi Service Total Funds Reconclation of operating income los) to net cash prnided by operating activites:
Operating income (loss)Adjustment to reconcile operating income (loss)to net cash provided by operating activities:
Depreciation and amortization Amortization of nuclear fuel Increase in provision for decommissioning costs Other nonoperating income Changes in assets and liabilities:
Accounts receivable Inventories Prepaids and other assets Accounts payable Wages payable Unearned revenues Compensated absences post retirement and self-insurance liabilities Deposits Regulatory credits Total adjustments Net cash provided by operating activities Schldle of noncash investing, capital and finamin activities:
Capital contributions Transfers in (out) of capital assets Transfers in (out) of other assets Decrease in fair value of investments Reconciliation of cash and cash equivalents:
Cash and cash equivalents Restricted cash and cash equivalents, current portion Restricted cash and cash equivalents, noncurrent portion Total cash and cash equivalents
$1,473$(10,519)12,376 29,764 1,499 3,483 5,113 (1,099)(4,300)(2,677)73 (516)9,378 40,718$77,132$ 270 85 3,248 (2,223)$19,742 6,824$26,566 6,539 388 579 418 57 (14)(79)(1,030)(64)(177)5,650$ 9,226$ 1,315 (1,738)(3,248)(414)$ 4,711 1,000$ 5,711 (1,248)440 2 84 (334)$ 830 (37)(221)4 325$1,798$ 142 (4)$ 49$ 49 216 2 1,322 (29)47 284 14,218$ 3,699$ 8,314 (354)$ 4,669 795$ 5,464$32,108 49,646 1,499 3,483 418 4,101 (1,111)(4,379)(2,166)(18)47 (321)9,378 60,577$92,685$ 9,899 (1,511)(3,311)$33,164 7,824 795$41,783 S(5,743 3,788 91 (100)71 2,182 340 31 10,414 16,817$11,074$ 2,183 (1,476)$20,921 17$20,938$ (316)$33,993$33,993 The accompanying notes are an integral part of these financial statements 35 CITY OF ANAHEIM Statement of Fiduciary Assets and Liabilities Agency Fund -Mello-Roos June 30, 2005 (in thousands)
ASSEIS Restricted cash and cash equivalents Due from other governments Total assets$3,554 43$3,597 LIABIIUTIES Due to bond holders $3,597 The accompanying notes are an integral part of thwe financial sttements 36 CITY OF ANAHEIM Notes to Financial Statements (Amounts in thousands)
NOTE 1 -
SUMMARY
OF SIGNIFICANTACCOUNTINO POLICIES: The financial reporting entity As defined by accounting principles generally accepted in the United States of America (GAAP) that are established by the Governmental Accounting Standards Board (GASB), the financial reporting entity consists of the primary government, as well as its component units, which are legally separate organizations for which the elected officials of the primary government are financially accountable.
Financial accountability is defined as appointment of a voting majority of the component unit's board, and either a) the ability to impose will by the primary government, or b) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the primary government.
The accompanying financial statements present the City of Anaheim (City), the primary government, and its component units. The fimancial data of the component units are included in the City's reporting entity because of the significance of their operational or financial relationships with the City.The component units described below are each legally separate from the City, but are so intertwined with the City that they are, in substance, the same as the City. They are reported as part of and accountable to the City and blended into the government-wide and fund financial statements.
Anaheim Housing Authorbv (lHousing Authoritlv is a separate entity primarily funded by the US. Department of Housing and Urban Development to administer funds received under the Federal Housing Assistance Payments program. City Council members, in separate session, serve as the governing board of the Housing Authority, and all accounting and administrative functions are performed by the City. The financial activity of the Housing Authority has been blended into the City's Comprehensive Annual Financial Report (CAFR) in the government-wide governmental activities and in the fund financial statements as the Housing Authority Special Revenue Fund.Anaheim Redevelopment Azencv (Redevelopment Agencvy is a separate government entity created to develop and execute plans for improvement, rehabilitation and redevelopment of blighted areas within the City. City Council members, in separate session, serve as the governing board of the Redevelopment Agency, and all accounting and administrative functions are performed by the City. The financial activity of the Redevelopment Agency has been blended into the City's CAFR in the government-wide governmental activities and in the fund fimancial statements as the Redevelopment Housing Set-Aside Special Revenue Fund, the Redevelopment Agency Debt Service Fund, and the Redevelopment Agency Capital Projects Fund. For a copy of separate financial statements, contact the Finance Director of the City.Community Center Authoritv (CCA), a joint powers authority, was created primarily to finance the initial construction of the Anaheim Convention Center. A five-member board appointed by the City Council governs the CCA. The City has entered into a noncancelable long-term lease with the CCA, which provides for lease payments in amounts sufficient to meet the annual debt service requirements on the certificates of participation issued by the CCA to fimance the construction of the facility.
The lease is a financing arrangement, which transfers the ownership of the facility to the City at the end of the lease term, and the sole activity of the CCA is to provide financing for the City. As such, the financial data for the CCA has been blended into the City's CAFR in the government-wide business-type activities and in the fund fimancial statements with the City's Convention, Sports and Entertainment Venues Fund, as all activity related to the Anaheim Convention Center is accounted for in this enterprise fund. The capital lease has been eliminated in the financial statements.
For a copy of separate f'mancial statements, contact the Finance Director of the City.Anaheim Public Improvement Corporation (APIC. a non-profit corporation, was created primarily to finance several construction projects in the City. City Council members, in separate session, serve as the governing board of APIC. The City has entered into noncancelable long-term leases with APIC, which provide for lease payments in amounts sufficient to meet the annual debt service requirements on the certificates of participation issued by APIC to friance these construction projects.
The leases are financing arrangements, which transfer ownership of the constructed assets to the City at the end of the lease terms. The fimancial data of APIC has been blended into various governmental and business-type activities and funds of the City as applicable, and the capital leases have been eliminated.
Anaheim Public Financing Authori (Authority), ajoint powers authority, was established as a vehicle to reduce local borrowing costs and promote greater use of existing and new financial instruments and mechanisms.
City Council members, in separate session, serve as the governing board of the Authority.
Financial activity of the Authority has been blended into the City's CAFR into various governmental and business-type activities and funds of the City as applicable.
The City is a participant in four joint ventures and jointly-owned properties (see note 10), which am not considered part of the financial reporting entity, as the City does not have any significant equity interests in the joint ventures and jointly-owned properties.
37 CY OF ANAHEIM Baske financa statemmt In accordance with GASB Statement No. 34 -Basic Financial Statements and Managemvntý Discussion and Analysis for State and Local Govemments, the basic financial statements include both government-wide and fund financial statements.
The government-wide financial statements (Statement of Net Assets and Statement of Activities) report on the City and its component units as a whole, excluding fiduciary activities.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. All activities, both governmental and business-type, are reported in the government-wide financial statements using the economic resources measurement focus and the accrual basis of accounting, which includes long-term assets and receivables as well as long-term debt and obligations.
The government-wide financial statements focus more on the sustainability of the City as an entity and the change in aggregate financial position resulting from the activities of the fiscal period.Generally, the effect of interfund activity has been removed from the government-wide financial statements.
Net interfund activity and balances between governmental activities and business-type activities are shown in the government-wide financial statements.
The"doubling up" effect of internal service fund activity has been eliminated from the government-wide financial statements with the expenses shown in the various functions and programs on the Statement of Activities.
The government-wide Statement of Net Assets reports all financial and capital resources of the City (excluding fiduciary funds). It is displayed in a format of assets less liabilities equal net assets, with the assets and liabilities shown in order of their relative liquidity.
Net assets are required to be displayed in three components:
- 1) invested in capital assets, net of related debt, 2) restricted, and 3) unrestricted.
Invested in capital assets, net of related debt is capital assets net of accumulated depreciation and reduced by outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted net assets are those with constraints placed on their use by either. 1) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments, or 2) imposed by law through constitutional provisions or enabling legislation.
All net assets not otherwise classified as restricted, are shown as unrestricted.
Generally, the City would first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available.
The government-wide Statement of Activities demonstrates the degree to which both direct and indirect expenses of the various functions and programs of the City are offset by program revenues.
Direct expenses are those that are clearly identifiable with a specific function or program. Indirect expenses for administrative overhead are allocated among the functions and programs using a full cost allocation approach and are presented separately to enhance comparability of direct expenses between governments that allocate direct expenses and those that do not. Interest on general long-term debt is not allocated to the various functions.
Program revenues include: i) charges to customers or users who purchase, use or directly benefit from goods, services or privileges provided by a particular function or program and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or program. Taxes, unrestricted investment income and other revenues not identifiable with particular functions or programs are included as general revenues.
The general revenues support the net costs of the functions and programs not covered by program revenues.Also, part of the basic financial statements are fund financial statements for governmental funds, proprietary funds and fiduciary funds, even though the lat are excluded from the government-wide financial statements.
The focus of the fund financial statements is on major funds, as defined by GASB Statement No. 34. Although this reporting model sets forth minimum criteria for determination of major funds (a percentage of assets, liabilities, revenues, or expenditures/expenses of fund category and of the governmental and enterprise funds combined), it also gives governments the option of displaying other funds as major funds. Other nonmajor funds, as well as the internal service funds, are combined in a single column on the fund financial statements.
The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.The Housing Authority Special Revenue Fund accounts for the providing of housing assistance to low and moderate-income families in the Anaheim area. Financing is provided primarily from Federal Section 8, US. Department of Housing and Urban Development (HUD) receipts.The City reports the following major enterprise funds: The Electric Utility Fund accounts for the operation of the City's electric utility, a self-supporting activity, which renders services on a user charge basis to residents and businesses located in Anaheim.The Water Utility Fund accounts for the operation of the City's water utility, a self-supporting activity, which renders services on a user charge basis to residents and businesses located in Anaheim.38 CITY OF ANAHEIM The Sanitation Fund accounts for the operation of the City's solid waste and sanitation program, a self-supporting activity, which provides for the collection and disposal of solid waste, street sweeping, and sanitary sewer cleaning on a user charge basis to residents and businesses located in Anaheim.The Golf Courses Fund accounts for the operation of the Anaheim Municipal
("Dad Miller") Golf Course and the Anaheim Hills Golf Course, a self-supporting activity that renders services on a user charge basis.The Convention, Sports and Entertainment Venues Fund accounts for the operations of the Anaheim Convention Center, Stadium (Angel Stadium of Anaheim, home to the Anaheim Angels of the American Baseball League), and The Grove of Anaheim. See note 11 for further discussions of the Stadium and The Grove of Anaheim.The internal service funds, which provide services to the other funds of the City, are presented in a single column in the proprietary funds fnmancial statements.
Because the principal users of the internal service funds are the City's governmental activities, the assets and liabilities of the internal service funds are consolidated into the governmental activities column of the government-wide Statement of Net Assets. The costs of the internal service fund services are spread to the appropriate function or program on the government-wide Statement of Activities and the revenues and expenses within the internal service funds are eliminated from the government-wide financial statements to avoid any doubling effect of these revenues and expenses.Mesurcmt focsw and bask of accounting The governmental fund financial statements are prepared on a current financial resources measurement focus and modified accrual basis of accounting.
To conform to the modified accrual basis of accounting, certain modifications must be made to the accrual method.These modifications are outlined below: A. Revenue is recorded when it becomes both measurable and available (received within 60 days after year-end).
Revenue considered susceptible to accrual includes: property taxes, sales and use taxes, transient occupancy taxes, licenses, fees and permits, intergovernmental revenues (including motor vehicle license fees), charges for services, fines, forfeits and penalties, and interest B. Expenditures are recorded when the related fund liability is incurred.
Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year.C. Disbursements for the purchase of capital assets providing future benefits are considered expenditures.
Bond proceeds are reported as an other financing source.With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance as a measure of available spendable resources.
This is the traditional basis of accounting for governmental funds and also is the manner in which these funds are normally budgeted.
This presentation is deemed most appropriate to: 1) demonstrate legal and covenant compliance, 2) demonstrate the sources and uses of liquid resources, and 3) demonstrate how the City's actual revenues and expenditures conform to the annual budget. Since the governmental funds financial statements are presented on a different basis than the governmental activities column of the government-wide financial statements, a reconciliation is provided immediately following each fund statement.
These reconciliations briefly explain the adjustments necessary to transform the fund financial statements into the governmental activities column of the government-wide financial statements.
The proprietary funds financial statements are prepared on the same basis (economic resources measurement focus and accrual basis of accounting) as the government-wide financial statements.
Therefore, most lines for the total enterprise funds on the proprietary funds financial statements will directly reconcile to the business-type activities column on the government-wide financial statements.
Because the enterprise funds are combined into a single business-type activities column on the government-wide financial statements, certain interfimd activities between these funds are eliminated in the consolidation for the government-wide financial statements, but are included in the fund columns in the proprietary funds financial statements.
The net costs of the internal service funds are also partially allocated to the business-type activities column on the government-wide financial statements.
A reconciliation of the total enterprise funds on the fund financial statements to the business-type activities column on the government-wide financial statements is provided on the face of the fund financial statements.
Enterprise funds account for operations where the intent of the City is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges and space rentals. Under GASB Statement No.34, enterprise funds are also required for any activity whose principal revenue sources meet any of the following criteria:
- 1) any activity that has issued debt backed solely by the fees and charges of the activity, 2) if the cost of providing services for an activity, including capital costs such as depreciation or debt service, must legally be recovered through fees and charges, or it is the policy of the City to establish activity fees or charges to recover the cost of providing services, including capital costs.On the proprietary funds financial statements, operating revenues are those that flow directly from the operations of the activity, Le. charges to customers or users who purchase or use the goods or services of that activity.
Operating expenses are those that are incurred to provide those goods or services.
Non-operating revenues and expenses are items such as investment income and interest expense that are not a result of the direct operations of the activity.39 CITY OF ANAHEIM Under GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Eatities That Use Propnetary Fund Accountmn the City has elected for enterprise funds not to apply Financial Accounting Standards Board (FASB) statements issued after November 30, 1989.The Utility funds follow the uniform system of accounts prescribed by the Federal Energy Regulatory Commission (Electric Utility) and the California Public Utilities Commission (Water Utility).
The Utilities are not subject to the regulations of these commissions.
Fiduciary funds account for assets held by the City in a trustee or agency capacity on behalf of others and, therefore, are not available to support City programs.
The reporting focus is upon net assets and changes in net assets and employs accounting principles similar to proprietary funds. Fiduciary funds are not included in the government-wide financial statements as they are not an asset of the City available to support City programs.The City currently maintains an agency fund to account for the monies collected and paid on behalf of the Mello-Roos Districts located in the City.Cash and Ineshoents The City pools available cash from all funds for the purpose of increasing income through investment activities.
Investments in U.S. government and agency securities and corporate notes are carried at fair value based on quoted market prices. Participating guaranteed investment contracts and flexible repurchase agreements are carried at fair value based on net realizable value. Money market mutual funds am carried at fair value based on the fund's share price. The City's investment in the State of California Local Agency Investment Fund (LAIF) is carried at fair value based on the value of each participating dollar as provided by LAIF LAW is authorized by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.
Commercial paper, non-participating guaranteed investment contracts and negotiable certificates of deposit are carried at amortized cost (which approximates fair value). Interest income, which includes changes in fair value, on investments is allocated to all funds on the basis of daily cash and investment balances.
See note 2 for further discussion.
For purposes of the basic financial statements, the City considers cash equivalents to be highly liquid short-term investments that are readily convertible to known amounts of cash and mature within three months of the date they are acquired.
Cash and cash equivalents are included in the City's cash and investments pool and in accounts held by fiscal agents.Notes reeivable In the government-wide financial statements, notes receivable includes accrued interest receivable of $9,324 ranging from 3% to 10% interest rate per annum, net of allowances of$13,477 for uncollectible accounts at June 30, 2005. Allowances for uncollectible accounts%tre estimated based on certain assumptions; therefore, actual results could differ from the estimates.
In the governmental funds fmancial statements, due to the extended period of time over which notes receivable ame to be collected and the contingent nature of certain sources of repayment, the City has generally not recorded the related accrued interest and has recorded deferred revenue equal to the outstanding principal balance of the notes receivable.
Inventories, as determined by annual physical counts, are stated at average cost.Inventories in the General Fund are recorded as expenditures when used and are reported under the consumption method of accounting.
Land held for reasl The Redevelopment Agency has acquired parcels of land as part of their primary purpose to develop or redevelop blighted areas. The Redevelopment Agency records these parcels as land held for resale in their financial records. The properties held for resale are recorded at the lower of cost or estimated net realizable value. At June 30, 2005, land held for resale with a cost of $57,212 was recorded net of the allowance for decline in value of $29,346 and totaled $27,866, with this amount offset by a reservation of fund balance in the governmental funds financial statements.
Rtatricted assets Certain proceeds of the City's bonds, as well as certain resources set aside for their repayment, are classified as restricted on the Statement of Net Assets, Balance Sheet, or Statement of Fund Net Assets, because they are maintained in separate bank accounts and their use is limited by applicable debt covenants.
Additionally, resources set aside by the Electric Utility for future decommissioning of its ownership share of the units at San Onofre Nuclear Generating Station, Units 2 and 3 (SONGS) are classified as restricted on both the government-wide Statement of Net Assets and proprietary funds Statement of Fund Net Assets.Capital assets Under GASB Statement No. 34, all capital assets, whether owned by governmental activities or business-type activities are recorded and depreciated in the government-wide financial statements.
No long-term capital assets or depreciation are shown in the governmental funds financial statements.
Capital assets, including public domain infrastructure (e.g., roads, bridges, sidewalks and other assets that are immovable and of value only to the City) are defimed as assets with an initial, individual cost of more than $5 ($50 for infrastructure) and an estimated useful life greater than one year. Capital assets are recorded at cost or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at the estimated fair market value at the date of donation.40 CrrY OF ANAHBEIM The costs of normal maintenance and repairs that do not add to the value of the capital asset or materially extend capital assets lives are not capitalized Major improvements are capitalized and depreciated over the remaining useful lives of the related capital assets.Major outlays for capital assets and improvements are capitalized as the projects are constructed.
Interest incurred during the construction phase of projects is reflected in the capitalized value of the asset constructed for proprietary funds. For the year ended June 30, 2005, business-type activities capitalized net interest costs of $1,702 in the government-wide and fund financial statements.
Total interest expense incurred by the business-type activities (and the enterprise funds on the proprietary funds statements) before capitalization was $36,651.Capital assets are depreciated using the straight-line method over the following estimated useful lives: Buildings, structures and improvements Utility plant Machinery and equipment Infrastructure 5 to 85 years 5 to 75 years 2 to 40 years 25 to 75 years Capital assets transferred between funds are transferred at their net book value (cost less accumulated depreciation), as of the date of the transfer.Debt cots Debt issuance costs in the amount of $7,691 are included in noncurrent assets at June 30, 2005. Unamortized discounts includes unamortized loss on refundings of S 1,312 and has been reduced by unamortized premiums net of unamortized discounts of $8,071, and are reflected in net long-term obligations.
Both debt issuance costs and discounts are amortized over the lives of the related bond issues using the effective interest method.Accwtion.Accretion is an adjustment of the difference between the price of a bond or certificate of participation (COP) issued at an original discount and the par value of the bond or COP.For the governmental activities debt, the accreted value is recognized as it accrues by fiscal year. For the business-type activities debt, the accreted value at maturity is recognized at the time of issuance with an offset to bond or COP discount.Regulatory codits The Electric Utility's rates, rules and regulations provide for a power cost adjustment billing factor to reflect variations in the cost of power to the Electric Utility. This billing factor provides increased flexibility by allowing the adjustment of revenues from the sale of electricity for differences between the Electric Utility's actual cost of power and the amount billed to customers through standard rates. The over or under collections are recorded as regulatory credits until they are refunded to or recovered from utility customers.
The Electric Utility obtained Council approval to change the rate from $0.00 to approximately
$0.0049 for all retail kilowatt (kWh) sales of electricity except residential lifeline usage beginning April 1, 2001. At June 30, 2005, the liability recorded for regulatory credits totaled $36,497 for the Electric Utility.The Water Utility's rates, rules and regulations provide for a water rate stabilization account to reflect variations in the cost of water to the Water Utility. This stabilization account provides increased flexibility by allowing the adjustment of revenues from the sale of water for differences between the Water Utility's actual cost of water and the amount billed to customers through standard rates. The account is funded through expense reimbursements such as water supply cost refiuds received from the Metropolitan Water District and Orange County Water District and other miscellaneous credits and revenue. At June 30, 2005, the liability recorded for regulatory credits totaled $162 for the Water Utility.Deferrd liabilities Deferred liabilities arise in governmental funds when revenue does not meet both the"measurable" and "available" criteria for recognition in the current period. Deferred liabilities also arise, in both governmental and proprietary funds, when resources are received by the government before it has a legal claim to thean, as when grant monies are received prior to incurring qualifying expenditures (unearned).
In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, revenue is recognized Deferred liabilities in the governmental funds amounted to $69,599 at June 30, 2005. Of this amount, $48,250 represents notes receivable that did not meet the available criterion, $13,667 represents various other revenues that did not meet the available criterion, and $7,682 represents resources for which the City did not have legal claim.Compensate absomce Compensated absences, vacation and sick pay, for all City employees are generally paid by the General Benefits and Insurance Fund, an internal service fund. The General Benefits and Insurance Fund is reimbursed through payroll charges to all other funds based on estimates of benefits to be earned and used during the fiscal year. It is the policy of the City to pay all accumulated vacation pay when an employee retires or terminates.
Accumulated sick pay in excess of 175 hours0.00203 days <br />0.0486 hours <br />2.893519e-4 weeks <br />6.65875e-5 months <br /> per employee is paid to employees at their then current rate of pay in January each year or upon termination from the City. Employees are paid for all accumulated sick pay when they retire from the City. Vested vacation and sick pay benefits are accrued when incurred in the General Benefits and Insurance Fund and at June 30, 2005, totaled $16,222. Also included in the statement ofNet Assets at June 30,2005, is compensatory time liability of $362. The total compensated absences liability of $16,584 is included in wages payable in the Statement of Net Assets at June 30, 2005.41 CITY OF ANAHEIM Changes in the City's compensated absences liability in fiscal year 2005 were as follows: Compensated absences liability at beginning of year Current year compensated absences benefits earned Current year compensated absences used Compensated absences liability at end of year$ 15,254 17,940 (16,610$ 16,584 Nuclea fhio and decom1ssoningr co-Ats The Electric Utility amortizes the cost of nuclear fuel to expense using the "as burned" method. In accordance with the Nuclear Waste Disposal Act of 1982, the Electric Utility is chaiged a fee for the disposal of nuclear fuel at the rate of one mill per kWh on the Electric Utility's share of electricity generated by SONGS. The Electric Utility pays the fee quarterly to Southern California Edison Company (SCE), which is acting as the agent for SONGS participants.
Federal regulations also require the participants to provide for the future costs of decommissioning SONGS. Decommissioning costs are charged to operating expenses and are provided for over the remaining life of the plant. At June 30, 2005, the provision for decommissioning costs totaled $93,782.Pension plan Full-time City employees are members of the State of California Public Employees' Retirement System (System).
The City's policy is to fund all pension costs accrued; such costs to be funded are determined annually as of July I by the System's actuary. See note 9 for further discussion.
Fund balaams In the fund financial statements, governmental funds report reservations of fund balances for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change.The accumulated deficit fund balances at June 30, 2005, for the Workforce Development, Community Development Block Grant and Grants funds included in nonmajor governmental funds in the amount of $183, $52, and $229, respectively, will be eliminated in future years by the receipt of reimbursements for grant expenditures.
Budgetary principl The City is required by its charter to adopt an annual budget on or before June 30 for the ensuing fiscal year. The General, special revenue, debt service, and capital projects governmental fund types and proprietary fund types have legally adopted budgets approved by City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level. From the effective date of the budget, the amounts stated therein as proposed expenditures/expenses become appropriations to the various City departments.
Throughout the fiscal year the budget was amended to add supplemental appropriations.
All amendments to the budget which change the total appropriation amount for any department require City Council approval and all increases in appropriations must be accompanied by an increase in revenue sources of a like amount to maintain a balanced budget. The City Manager has the authority to change individual budget line items within a department as long as the total department's appropriation amount is not changed.The City utilizes an encumbrance system as a management control technique to assist in controlling expenditures.
All appropriations lapse at the end of the fiscal year, except for capital projects (other than the Redevelopment Agency Capital Projects Fund), which are carried forward until such time as the project is completed or terminated and for encumbered balances that are re-appropriated in the next year.GASB Statement No. 34 requires that budgetary comparison statements for the General Fund and major special revenue funds be presented in the basic financial statements.
These statements must display original budget, amended budget and actual results (on a budgetary basis).Budgeted revenue amounts represent the original budget modified by City Council-authorized adjustments during the year, which %ere contingent upon new or additional revenue sources. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year. Budgets are prepared in conformity with GAAP using the modified accrual basis of accounting, with the exception of the capital lease in the General Fund and land held for resale in the Redevelopment Agency funds, which are budgeted on a cash basis.Property taxes Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments due on November 1 and February 1 and become delinquent after December 10 and April 10. The County of Orange, California (County) bills and collects the property taxes and remits them to the City in installments during the year. City property tax revenues are recognized when levied to the extent that they result in current receivables collectable within 60 days after year-end.The County is permitted by State law (Proposition
- 13) to levy taxes at 1% of full market value (at time of purchase) and can increase the property tax rate no more than 2% per year from the full market value at the time of purchase.
The City receives a share of this basic levy proportionate to what it received in the 1976 and 1978 periods.42 CITY OF ANAHEIM Enfitiement shazed triwnues and Pants Deposits and investments is comprised of the following at June 30, 2005: Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurre4 all eligibility requirements have been met, and reimbursement is received within the availability period.kevane recognition for Eetric Utility, Water Utility and Sauitation d Revenue is recorded in the period in which services are provided As such, revenue is recorded as billed to customers on a cyclical basis. Residential and smaller commercial customers are billed bimonthly and all other customers monthly. At June 30, 2005 unbilled but earned service charges recorded in accounts receivable for the Electric Utility, Water Utility, and Sanitation Funds amounted to S 13,555, $3,197, and $3,075 respectively.
Use of estimat The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. As such, actual results could differ from those estimates.
NOTE 2 -DEPOSITS AND INVESTMENTS:
The City maintains a cash and investment pool, which includes the cash balances of all funds, and is invested by the City Treasurer to enhance interest earnings.
The pooled interest earned, net of administrative fees, is allocated to each fund based on daily cash balances.The City's Investment Policy further limits the permitted investments in Government Code Sections 53600 et al, 16429.1 and 53684 to the following:
obligations of the U.S.government, federal agencies, and government sponsored enterprises; medium -term corporate notes; certificates of deposit; bankers acceptances; commercial paper rated A-I by Standard and Poor's Corporation (S&P), P-I by Moody's Investors Service (Moody's)or F-I by Fitch Ratings (Fitch); LAIF; repurchase agreements; reverse repurchase agreements; and money market mutual funds.The City has been actively managing short-term treasuries to enhance revenues.
This program has involved buying and selling of up to 10% of the operating portfolio in short-term treasuries, which are short-term investments of the highest quality. These securities meet the City's investment parameters and can be held to maturity.Governmental activities; General Fund Housing Authorty Nonmajor governmental funds Internal service funds Total governmental activities Business-type activities:
Electric Utility Water Utility Solid Waste and Sanitation Golf Courses Convention, Sports and Entertainment Venues Total business-type activities Government-wide totals Fiduciary fund Total cash and investments Cash and Cash Equivalents
$ 4,72 2,181 14,856 20,921 42,930 Cash and Cash Investmnents Equivalents Restrcted Investmnents Total$ 28,598 9,786 84,841 243,633$ 33,570 11,967$32,776 S 17,121 149,594 17 473 141,819 3L29 17,594 336950 6,824 271,369 412,950 1,000 5,826 38,980 27,240 337 19,742 115,015 4,711 27,443 3,993 23,247 49 288 4_669 26,48 795 15,773 47,721 33,164 192477 8,619 292, 527,2 76,094 436,110 _IL 310,562 864,17 3,554 3,554$76,094 4 .44966 $310,52 867.732 Deposits at June 30, 2005, consist of bank balances of $7,878 that mere maintained in various federally regulated financial institutions.
The bank balances, with no carrying value at June 30, 2005, represent deposits in transit, outstanding checks, and other reconciling items. Deposits with a bank balance of $395 are insured by the Federal Depository Insurance Corporation.
For deposits with a bank balance of $7,483, California state statutes require federally regulated financial institutions to secure a city's deposits by pledging collateral consisting of either government securities with a value of 1100/. of a city's total deposits or by pledging frst trust deed mortgage notes having a value of 150%of a city's total deposits.
The collateral is required by regulation to be held by the counterparty's agent in the name of the City.The City Treasurer prepares an Investment Policy Statement annually, which is presented to the Investment Advisory Commission for review and the City Council for approval.
The approved Investment Policy is submitted to the California Debt and Investment Advisory Committee in accordance with State Law The policy provides the basis for the management of a prudent, conservative investment program. Public funds are invested for the maximum security of principal, to meet daily cash flow needs, while providing a return. All investments are made in accordance with the California Government Code and, in general, the Treasurer's policy is more restrictive 43 CITY OF ANAHEIM than State law. The City did not have any violations of its policy during the current fiscal year. Section 53607 of the California Government Code allows the Council to delegate its investment authority to the Treasurer and requires that the Treasurer provide a monthly report to Council of investment transactions.
The annual delegation of authority is incorporated in the investment policy. The Treasurer's Report meets the requirements for monthly investment reporting.
Investments Authorized by the California Government Code and the City's Investment The table below identifies the investment types that are authorized for the City by its Investment Policy which is more restrictive than State Code. The table also identifies certain provisions of the City's Investment Policy that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's Investment Policy.authorized for investments held by bond trustees.
The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.Authorized Investment Tyne US. agency securities Guaranteed investment contracts Collateralized Investment contracts Flexible repurchase agreements Mutual funds LAIF Maximum Maturity None None None None None None Maximum Percentage of Portfolio*
None None None None None None Maximum Investment in One Issuer None None None None None None Authorized Investment I=p US. Treasury obligations US. agency securities Bankers acceptances Commercial paper Negotiable certificates of deposit Repurchase agreements Reverse repurchase agreements Medium term corporate notes Money market mutual funds LAIF Tine certificates of deposit (TCD)Maximum Matuty 5 years 5 years 18o days 270 days 3 years 90 days 92 days 3 years N/A N/A 5 years Maximnum Percentage of Portfolio*
None 75%25%25%15%75%20%15%20%80 Million 30%Maximum Investment in One Issuer None 20%5%5%5%None None 5%10%None 5%At June 30, 2005 the investments controlled by fiscal agents exceeded five percent concentration in the following Federal agency and guaranteed investment securities:
Federal Home Loan Bank $75,896 (25%) and Transamerica Life $124,294 (409/6). All guaranteed investment securities have downgrade language that requires collateral should credit ratings drop below certain levels.Custodial Credit Risk Custodial credit risk for investments is the risk that the City will not be able to recover the value of investment securities that are in the possession of an outside party. All securities owned by the City with the exception of LAIF and money market mutual funds are deposited in trust for safekeeping with a custodial bank different from the City's primary bank. Securities are not held in broker accounts.
Funds held by LAIF and money market mutual funds are held in the City's name.Custodial credit risk for investments held by bond trustee is the risk that the City will not be able to recover the value of investment securities that are in the possession of an outside party. All securities held by bond trustee are in the name of the bond issue in trust for safekeeping with the bond trustee which is different from the City's primary bank.InerstRate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment The Treasurer mitigates this risk by investing in longer-term securities only with funds that are not needed for current cash flow purposes and holding these securities to maturity.
The Treasurer uses the segmented time distribution method to identify and manage interest rate risk. In accordance with its Investment Policy, the Treasurer monitors the segmented time distribution of its investment portfolio and analysis of cash flow demand.*Excluding amounts held by bond trustees that are not subject to California Government Code restrictions At June 30, 2005 the City exceeded five percent concentration in the following Federal agency securities:
Federal Farm Credit Bank $88,438 (16%), Federal Home Loan Bank$95,148 (17%) and Federal Home Loan Mortgage Corporation
$49,077 (9%).Investments Authorized bX Debt Agreements Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's Investment Policy. The table below identifies the investment types that are 44 ciTyOF ANAEIUM Interest rate risk for investments held by bond trustees is offset by the fact that the long term investments are for the reserve funds with the semi-annual interest payments used to pay a portion of the debt service. These are long term securities which are not adversely affected by interest rate changes. Investment contracts for construction funds are usually limited to three years or less. Money market funds are used to accumulate monthly or semi-annual debt service payments.Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table. The distribution of the City's investments by maturity at June 30,2005, is as follows: NOTE 3 -ACCOUNTS RECEIVABLE DUB FROM OTHER GOVERNMENTS, AND CERTAIN INTERFUND TRANSACTIONS, RECEIVABLE AND PAYABLE BALANCES: Accounts receivable for the City's governmental and business-type activities including the applicable allowance for uncollectible accounts at June 30, 2005, are as follows: Less: Accounts Allowance for Receivable Uncollectibles Fair Credit Value Rating 6/30/2005 12 Months or 13 to 24 Months 25 to 36 Months 37 to 60 Months More Than 60 Monfhs bIvenats Trmsurerý Pooled Investments:
US. Treasury notes Federal agency securities Medumat notes Commercial paper Mutua fiaxls LAIF Total inestments controlled by CityTreasurer l nt ts Contmlled by Fscal Agent Federal agency securities Guaranteed investment agreement Collaterized investment contracts Flexible repurchase agreements Mutual fimds LAIF Total investments controlled by fiscal agents Total Investments Governmental activities:
General Fund Nonmajor governmental funds Internal service funds Total governmental activities Business-type activities:
Electric Utility Water Utility Solid Waste and Sanitation Golf Courses Convention, Sports and Entertainment Venues Total business-type activities Total accounts receivable S 9,048 115 539 9,702 31,781 5,922 6,987 106 1,061 45,857$55,559$(564)(4)(568)(55)(4)(127)_(L86)S(75J4 Total$ 8,484 III 539 9,134 31,726 5,918 6,860 106 1,061 45,671$54,805 Exempt AAA Aa2-AA-PI-AI+AAA Unated AAA Urrated Urated Urmad AAA Unrated$204,403 242,952 14,985 44,871 21,765 25,682 S 15,316 $ 93,519 $ 80,781 514,787 99,522 85,801 57,629 14,985 44,871 21,765 25,682 554,658 222,141 179,320 138,410 14,787 Due from other governments for the City's governmental activities at June 30, 2005, are as follows: 91,843 135,071 19,074 28,450 29,279 9,357 38,376 47,525 124,294 2,306 29,279 9,357 S 5,942 10,777 19,074 2,396 23,748 Taxes Grants Other Total Governmental activities:
General Fund Housing Authority Nonmajor governmental funds Total due from other governments
$13,767 999$14,766$ 94 322 10,525$10,941$605 $14,466 322 11,524 313,074 79,318 171,819 %2,3% 59,541$867,732 $301,459 T35-1,139
$138,410 $17,183 $59,54$605$26,312 Revenues are reported net of uncollectible amounts. Total uncollectible amounts related to revenues of the current period are as follows: General Fund Electric Utility Water Utility Sanitation Otheia Total$153 292 38 123 3$609 Net internal balances between governmental activities and business-type activities of $675 are included in the government-wide financial statements at June 30, 2005.45 CrTY OF ANAHEIM The following interfund receivables and payables are includ statements at June 30, 2005: ,d in the fund financial Other Capital Improvements Capital Projects Fund from the nonmajor governmental funds (Redevelopment Agency Capital Projects Fund). The Redevelopment Agency entered into a Cooperation Agreement with the City on April 1, 2003 whereby the City lnterfind Interfund will assist the Redevelopment Agency with the development of Westgate utilizing Receivable Payable $10,000 of funds from the HUD Section 108 loan program. The Redevelopment
$10,272 S 104 Agency is obligated to pay the City for the repayment of the HUD 108 loan from property tax increment and certain project revenues generated by Westgate.
As of June 12,145 27012 30, 2005, the Redevelopment Agency has utilized $9,423 of HUD 108 funds to acquire 22,417 27,116 certain properties.
Governmental funds: General Fund Housing Authority Nonmajor governmental funds Total governmental funds Enterprise funds: Electric Utility Golf Coures Convention, Sports and Entertainment Venues Total enterprise funds Internal service funds Total 980 11,679 104$34,200 6,104 980 7,084$34,200 There are interfund balances at June 30, 2005 that are generally short-term loans to cover temporary cash deficits in various funds. The following interfund balances are expected to be repaid in more than one year.Genera Fund Of the total intcrfund receivable in the General Fund, $3,313 is due from nonmajor governmental funds (Redevelopment Agency Capital Projects Fund). On September 3, 2002, the City loaned the Redevelopment Agency $3,388 in order to acquire two properties for redevelopment The properties are located at 1234 and 1300 South Anaheim Boulevard.
The loan is to be amortized over 30 years and is repayable over five years with the first annual payment due on August 1, 2003, and the final lump sum payment due on August 1, 2007. The loan bears interest at the City's average annual investment yield.Of the total interfund receivable in the General Fund, $855 is due from nonmajor governmental funds (Redevelopment Agency Capital Projects Fund). The balance is expected to be repaid from future proceeds of the Anaheim Westgate Center (Westgate).
Of the total interfund receivable in the General Fund, $6,104 is due from the Golf Courses Fund, On September 24, 2002, the City Council approved a loan up to $6,400 from the General Fund to the Golf Courses Fund for construction of the Anaheim Hills Golf Clubhouse.
The loan is payable in annual amounts of not less than $548 beginning in July 2004 until July 2023 and bears interest at the City's investment yield as of June 30th of each year.Nonmior Governmental Funds Of the interfund receivable in the nonmajor governmental funds, $9,423 is due to the Of the interfund receivable in the nonmajor governmental funds, $2,394 is due to the Redevelopment Agency Capital Projects Fund from nonmajor governmental funds (Other Capital Improvements Capital Projects Fund). On March 15, 1999, the Redevelopment Agency entered into a Cooperation Agreement with the City where the Redevelopment Agency and the City will share in the cost of the west Lincoln Avenue Street improvement project. The Agreement also provides that the Redevelopment Agency will receive transportation fee credits in the amount of its contribution to the project Electric Utility Fund The interfund receivable of $980 in the Electric Utility Fund is due from the Convention, Sports and Entertainment Venues Enterprise Fund for the installation of energy efficient HVAC equipment, and building envelope improvements.
The loan is payable in monthly installments of $23 beginning January 2004 until December 2008.Convention, Sports and Entertainment Venues Fund The interfund receivable of $10,699 in the Convention, Sports and Entertainment Venues Fund is due from nonmajor governmental funds (Redevelopment Agency Capital Projects Fund). The City entered into a Cooperation Agreement with the Redevelopment Agency on May 14, 1996, for the renovation of the Stadium. The Redevelopment Agency ageed to reimburse the City for $10,000 of renovation costs plus 5% simple interest on the unpaid balance. The Agencys reimbursement obligation is payable from the Stadium Project Area (SPA) property tax increment revenue. Any outstanding balance ceases to be an obligation of the Redevelopment Agency on August 9,2039, the expiration of the SPA. It is expected that the balance will be repaid prior to the expiration of the SPA.The net transfers of $12,400 from the business-type activities to the governmental activities on the government-wide Statement of Activities are primarily comprised of operational subsidies to the General Fund that are offset by debt service subsidies to the Convention, Sports and Entertainment Venues Fund and the transfer of capital assets from the business-type activities to governmental activities in the amount of $1,511.46 CITY OF ANAHEIM The following interfund transfers are reflected in the fund financial statements at June 30, 2005: NOTE 5 -CAPITAL ASSETS: Capital asset activities for the year ended June 30, 2005 are as follows: Beginning Ending Balance Additions Deletions Balance Governmental funds: General Fund Housing Authority Other governmental funds Total governmental funds Enterprise funds: Electric Utility Water Utility Solid Waste and Sanitation Golf Courses Convention, Sports and Entertainment Venues Total enterprise funds Total Transfers In Transfers Out S 25,974 $ 48,668 1,000 291 72192 39,31 99,166 88,277 3,248 15,611 7,403 3,021 142 1,700 14,855 27,735$114,021 i116,012 Governmental activities:
Nondepreciable assets: Land Construction in progress Total Depreciable assets: Buildings, structures and improvements Machinery and equipment Infirastructure Total Total assets S 490,917 19,597 510,514 219,176 66,726 705,956 991,858 1,502,372 S 5,109 32,467 37,576 1,992 14,990 7,209 24,191 61,767 (5,523)(6,172)(15,896 (27,591$ 34,176 Less accumulated depreciation for The net difference of transfers in the amount of $1,991 is due to a transfer of capital assets from the Electric Utility and Water Utility funds to governmental funds.The interfund transfers generally are made for the purpose of debt service payments made from a debt service fund but funded from an operating fund or subsidy transfers.
There were no significant transfers during the fiscal year that were either non-routine in nature or inconsistent with the activities of the fund making the transfer.NOTE 4 -BOND PAYMENT RECEIVABLE:
On August 3, 1995, the Los Angeles Rams Football Company, currently the St. Louis Rams (Rams), exercised its right to terminate its lease under the Fourth Amendment to the Exhibition Agreement between the Rams and the City (Rams Agreement).
Under the Rams Agreement, the Rams became obligated to repay the City for the debt service on the 1979 Anaheim (California)
Stadium Inc. Lease Revenue Bonds in the principal amount of$28,110, which obligation is supported by an irrevocable standby letter of credit with Dresdner Bank AG and will be repaid by August 15, 2015. The 1979 Anaheim (California)
Stadium Inc. Lease Revenue Bonds were subsequently refunded, and are no longer outstanding, by a portion of the Convention, Sports and Entertainment Venues Fund 1993 Refunding Projects Certificates of Participation.
At June 30, 2005, there remained principal outstanding of $19,542 on that portion of the Convention, Sports and Entertainment Venues Fund 1993 Refunding Projects Certificates of Participation.
During fiscal year 2005, the Rams reimbursed the City $2,338 (representing
$1,175 for principal and $1,163 for intest) for the current portion of their debt service obligation.
The City accounted for the termination of the lease by recording a bond payment receivable from the Rams and a contribution to the Convention, Sports and Entertainment Venues Enterprise Fund in the amount of the debt obligation assumed by the Rams under the Rams Agreement Buildings, strtre and improvements Machinery and equipment Infiasuctue Total accumulated depreciation Total governmental activities capital assets, net Business-type activities:
Nondepreciable assets: Land Construction in progress Nuclear fuel at amortized cost Total Depreciable assets: Buildings, structures and improvements Utility plant Machinery and equipment Total Total assets (74,051)(41,397)(236,613)(352,061)$1,150,311
$ (1,020)(5,959 (6,979)(166)(2,648)(2,814)(9,793)159 2,451 2,610$L(7,183)$(75,582)(1.499 (77,081)(327)(2,787)(4,799)(7,913)(85,994)214 1,961 3,749 5,924$(79,070)$ 495,006 46,105 541,111 221,002 79,068 713,165 1,013,235 1,554,346 (79,415)(45,118)(252,509)(377,042)$1,177,304 S 36,281 27,951 2,197 66,429 477,634 1,152,329 30,443 1,660,406 1,726,835 (127,116)(410,975)(16,350)(554,441,$1,172,394
$ 31,538 $ 4,743 45,950 57,583 2,730 966 80,218 63,292 476,804 1,083,972 26,475 1,587,251 1.667,469 Less accumulated dereciatian for Buildings, structures and improvements (116,443)Utility plant (376,633)Machinery and equipment (17,643)Total accumulated depreciation (510,719 Total business-type activities capital assets, net $1,156,750 1,157 71,144 8,767 81,068 144,360 (10,887)(36,303)(2,456)(4966$ 95,714 47 CITY OF ANAHEIM Depreciation expense was charged to fumctions/programs of the City as follows: Governmental activities:
General government Police Fire Community Development Planning Public Works Community Services Convention, Sports and Entertainment Capital assets held by the City's internal service funds are charged to the various functions based on their usage of the assets Total depreciation expense -governmental activities Business-type activities:
Electr Utility Water Utility Solid Waste and Sanitation Golf Courses Convention, Sports and Entertainment Venues Total depreciation expense -business-type activities RodcwlopmentAgawcy At June 30, 2005, the Redevelopment Agency earned revenues as lessor from certain parking structure property and retail spaces, carried at cost of $7,861, less accumulated depreciation of $5,848, under operating leases. The following is a schedule of minimum future rentals on noncancelable operating leases at June 30, 2005:$ 272 1,500 301 1,113 154 16,302 1,598 2,563 3,788 U27,591 29,764 6,539 388 579 12,376$49,646 Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 201 1-2015 2016-2020 2021-2025 2026-2030 2031-2034 Total minimum future rentals$ 332 342 346 338 304 1,309 1,338 1,265 1,173 938$7,685 NOTE 6 -GENERAL BENEFITS AND INSURANCE FUND: Capital leases Included in the capital assets amounts listed above are the following capitalized leased assets: Machinery and equipment Less acctunulated amortization Capitalized leased assets, net$3.217__(711)$2,506 operating loame Hawing Aithority At June 30, 2005, the Housing Authority earned revenues as the lessor of land, carried at cost of $25,486 in the government-wide financial statements, under three operating ground leases. These leases to developers are noncancelable.
Two of the leases are for a term of 55 years, expiring in 2055 and 2057. The term of the third lease is 57 years expiring in 2060. The total base rent amounts to be collected over the terms of the leases are $12,400, $8,700 and $7,505, respectively, with simple interest accruing on unpaid portions at a rate of 4.0%, 4.5% and 4.00/% respectively.
Minimum lease payments are calculated annualy, based on residual receipts, as defined in the lease agreements.
It is estimated that the full amounts of the leases are collectible.
At June 30,2005, the Housing Authority has recorded notes receivable due from developers related to these transactions of $7,162 in both the government-wide and fund financial statements.
The General Benefits and Insurance Fund, an internal service fund, is used to account for employee compensated absences, retirement and health benefits, workers' compensation related benefits, self-insurance, commercial insurance purchases, and alternative risk financing activities.
Revenues of the General Benefits and Insurance Fund are derived from charges to City departments using estimates of benefits earned and cost allocation charges established at the beginning of the year and from interest income on reserves.At June 30, 2005, the City was fully funded for self-insured workers' compensation and general liability claims (self-insured retention levels of $1,000 per occurrence, $750 in previous years, for workers' compensation claims and $1,000 per occurrence for general liability claims). Above these self-insured retention levels, the City's potential liability is covered through various commercial insurance and intergovernmental risk pooling programs.
Settled claims have not exceeded insurance coverage in any of the past three years, nor does management believe that there are any pending claims that will exceed insurance coverage.The unpaid claims liability included in the General Benefits and Insurance Fund is based on the results of actuarial studies and includes amounts for claims incurred but not reported, allocated loss adjustment expenses, and unallocated loss adjustment expenses.Claims liabilities are calculated using a discount of three percent and consider the effects of inflation, multi-year loss development trends, and other economic and social factors. It is the City's practice to obtain full actuarial studies biennially for general liability and workers' compensation coverages.
Premiums are charged by the General Benefits and Insurance Fund using various allocation methods that include actual costs, trends in claims experience, exposure base, and number of participants.
Revenues of the General Benefits and Insurance Fund, together with funds to be provided in the future, are expected to provide adequate resources to meet liabilities as they come due.48 CITY OF ANAHEIM Changes in the General Benefits and Insurance Fund's claims liability in fiscal years 2005 and 2004 were as follows: Beginning Additions/
Reductions/
Balance Proceeds Payments Due Ending Within Balance One Year Claims liability at beginning of year Current year claims and changes in estimates Claims payments Claims liability at end of year 2005$26,382 9,741 (6,203)$29,920 2004$24,878 7,134 (5,630)$26,382 Current year incurred losses increased primarily due to (i) increased workers'compensation costs coupled with unrealized cost savings from legislation, which mere included in prior year actuarial assumptions, and (ii) an increase in self-insured retention from $750 to $1,000 per occurrence for workers' compensation in the current fiscal year.Above the self-insured retention of $1,000 per occurrence for workers' compensation losses, the City purchases pooled and commercial excess insurance to $75,000 per occurrence.
Above the self-insured retention of $1,000 per occurrence for liability losses, the City purchases pooled and commercial excess insurance to $43,000 for all City operations, excluding (i) Utilities operations for which the City purchases pooled and commercial excess insurance to $68,000, and (ii) helicopter operations for which the City purchases
$50,000 of commercial excess insurance (on a first-dollar basis). This excess liability coverage is procured through the Authority for California Cities Excess Liability (ACCEL), a joint powers insurance authority pooling catastrophic general, automobile, personal injury, and public officials errors and omissions liability losses among twelve California cities, through both risk-sharing and joint purchase arrangements.
In addition, the City continues to maintain some limited excess liability risk sharing exposure directly with ACCEL. This pooled coverage has exposure (i) from the run-out periods from prior years in which commercial excess insurance was not obtained, (ii) from losses, which are covered under ACCEUs Memorandum of Coverage but not covered under the commercial excess liability policies, and (iii) from an ACCEL retained layer of $2,000 in excess of$1,000. Each ACCEL member's share of pooled losses is based on a risk-sharing formula which includes, but is not limited to, exposure and loss experience factors.In order to provide funds to pay claims, ACCEL collects a deposit from each member. The deposits are credited with investment income at the rate earned on ACCEIs investments.
At June 30, 2005, ACCEns cash and investments totaled $20,834 of which $4,002 consists of deposits provided by the City. The City has no specific equity interest in ACCEL.Deposits provided to ACCEL by the City are expensed when paid by the General Benefits and Insurance Fund.ACCEL is responsible for deciding the risks it will underwrite, monitoring the handling of large claims, and arranging financial programs.
ACCEL does not have any debt outstanding.
For a copy of separate financial statements for ACCEL, contact the Finance Director of the City.NOTE 7 -LONG-TERM LIABILITIES:
The following is a summary of changes in long-term liabilities reported in the government-wide financial statements for the year ended June 30, 2005: Governmental activities:
Bonds Payable: Geneial obligation City lease revenue Redevelopment Agency Accretion (note 1)Total COPs: city cops Motorized Equipment Unamortized COP discount Total Capital lease city Duplicating and Printing Information Services Total Notes and loans payable: city Redevelopment Agency Housing Authority Total Self-insurance (note 7)Retired medical (note 10)Governmental activities total Busirss-type activities:
Bonds payable: Electric Utility Water Utility Convention, Sports and Entertainment Venues Unamortized bond premium/discount Total COPs: Electric Utility Convention, Sports and Entertainment Venues Accretion (note I)Unamortized COP discount Total Capital lease obligation:
Water Utility Notes and loans payable: Water Utility Unamortized note discount Total Decommissioning provision (note I)Business-type activities total Government-wide total$ 7,060 509,022 162,108 59,348 737,538 34,048 2,062 (3)36,107 1,470 177 354 2,001 11,990 8,857 1,900 22,747 26382 68 465 893,240 510,225 13M65 23,160 (2,870)543,780 22,125 112,476 7,372 (1,6 18)140,355 349 17,212 (534)16,678 791,461$ (435)(2.590)(3,014)$10147 (1,971)10147 (7,910 (2,721)(213)(2,933)(206)(86)(16)(478)5,289 (829)1,875 (538)125 1,441 (7,857 40,618 (26,748 (15,380)(i,340)(70)____ (15,650)(495)(5,792)(1,703)587_ _ (7,403)______ (169 (892)56 3.483 3,43 (24,058$4,101 $(50,$ 6,625 506,432 159,094 67,624 739,775 31,327 1,849 33,174 1,264 91 168 1,523 16,450 10,194 2,025 28,669 29,920 74,049 90711O 494,845 11,925 23,090 (1.730 528,130 21,630 106,684 5,669 (1,031)132,952 180 16,320 (478)15,42 93,782 770,886$ 455 3,955 2,976 19735 2,881 227 236 52 168 456 1,529 534 2,063 8.094 7,857 30.937 12,625 1,870 75 520 5,962 1,800 8,282 ISOS 180 918 918$54,887 49 CITY OF ANAHEIM GOVERI LACTWIV1T[ES:
BONDS PAYABLE At June 30, 2005, bonds payable consisted of the following:
bond insurer to enable the issuer to obtain municipal bond insurance, resulting in the bonds receiving an AAA rating from S&P and an Aaa rating from Moody's. LPMR began on January 1, 2001, with the first payment made to the trustee on July 7, 2001, for the LPMR generated during the period January through June 2001. Subsequent to that date, LPMR is collected and remitted to the trustee monthly. During the fiscal year ended June 30, 2005, $25,447 was remitted to the trustee.Debt service requirements to maturity for the 1993 General Obligation Refunding Bonds and the 1997 Anaheim Lease Revenue Bonds to be paid by the Municipal Improvements Debt Service Fund from future property tax revenues and by the Anaheim Resort Improvements Debt Service Fund from future LPMR, respectively, are as follows: Date Final Issued Maturity Range of Interest Rates at Issue Date Authorized and Issued Out-standing 6/30/05 City 1993 General Obligation Refunding Bonds 11/01/93 1997 Anaheim Lease Revenue Bonds 2/01/97 Accretion Total City bonds RedeWlopnentAgamcy 1992 Project Alpha Tax Allocation Bonds 2/01/02 Accretion 1997 Project Alpha Tax Allocation Bonds, Series A 6/01/97 2000 Project Alpha Tax Allocation Bonds, Series A & B 12/01/00 Total Redevelopment Agency bonds Total governmental activities bonds 10/01/16 4.00/%-7.0%
3/01/37 4.5%/-6.9%
12128/18 4.00/6-6.45%
2/01/18 4.4/-5.33%
2/01/18 4.1%-7.7%$ 10,055 $ 6,625 510,427 506,432 62,584 575,641 134,433 107,719 5,040 27,905 21,025 Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2025 2026-2030 2031-2035 2036-2037 Total bonds Principal S 4,410 5,760 7,050 8,240 9,615 72,960 77,819 68,089 83,784 103,270 72,060$513,057 Interest$ 22,869 22,609 22,274 21,836 21,290 94,827 114,153 153,254 172,133 192,389 98,258$935,892 Total$ 27,279 28,369 29,324 30,076 30,905 167,787 191,972 221,343 255,917 295,659 170,318$1,448,949 31,850$714,670 30,350 164,134$739,775 Included in interest is $62,584 related to accretion on capital appreciation bonds.Bonds Psyable -City Bonds Payable -developmaent Agancy Loa payment meas"umat Zrnues In February 1997, the Anaheim Public Financing Authority sold $510.4 million of lease revenue bonds to construct public improvements in The Anaheim Resort The Bonds are special obligations of the Authority payable solely from lease payments to be made by the City to the Authority for the use and occupancy of the leased premises.
Debt service requirements to maturity for these lease revenue bonds are paid from lease payment measurement revenues (LPMR) defined as: 1) 3% of the 15% transient occupancy taxes (TOT) (i.e. 20% of the total transient occupancy taxes) for all hotel properties in the City, excluding Disney properties, and 2) 100% of the incremental TOT, sales, and property tax revenues from all Disney properties over the 1995 base, adjusted each year by the Consumer Price Index (CPI) change, with a minimum 2% increase annually.
The City is not required to pay any additional sums should the LPMR fall short of the amount required to pay debt service on the bonds. The Walt Disney Company provided a guarantee to the Debt service requirements to maturity for the Redevelopment Agency Tax Allocation bonds are to be paid by the Redevelopment Agency Debt Service Fund from future tax increment revenue are as follows: Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 2011-2015 2016-2019 Total bonds Principal$ 2,976 3,983 7,790 8,260 10,685 64,330 61,070$159,094 Interest$11,727 13,417 9,409 9,373 8,365 30,665 7,966$90,922 Total$ 14,703 17,400 17,199 17,633 19,050 94,995 69,036$250,016 Included in interest is $5,040 related to accretion on capital appreciation bonds.50 CrTY OF ANAHEIM CERIIFICATES OF PARTICIPATION CAPITAL LEASE OBLIGATIONS At June 30, 2005, certificates of participation consisted of the follov Range of Date Final Interest Rates Issued Maturity at Issue Date City 1993 Refunding Projects 1/14/93 8/01/19 5.47%.1993 Police Facilities Refinancing Project 7/15/93 8/01/08 4.47%1993 Arena Land Refinancing 11/01/93 11/01/19 6.00/9-7.505%
Total City Motorized Equipment 1993 Refunding Projects 1/14/93 8/01/11 5.470/a Unamortized COP discount Total Motorized Equipment Total governmental activities COPs Awing: The City has a long-term noncancelable lease with Motorola, Inc. to finance the Out- acquisition of certain software utilized by the City's Police Department.
The lease and standing qualifies as a capital lease for accounting purposes as defined under the FASB Statement Issued 6/30/05 No. 13, Accounting for Leases, and therefore has been recorded at the present value of future minimum lease payments at the date of inception of the lease. Future minimum S 9,696 $ 6,207 lease payments to be made from unrestricted revenues of the General Fund under the 26,000 8,400 capital lease are as follows: 21,210 16,720 Fiscal Year Ending 6/30 31,327 2006 2007 4,584 1,849 2008 (2) 2009 1,847 2010 S 296 296 296 296 247 1,431 (167)$1,264$61,490 $33,174 Total Less amount representing interest, variable Present value of future minimum lease payments Certiiates of Participatiou Payable -City Certificates of participation debt service payments are to be paid fium unrestricted revenues of the Certificates of Participation Debt Service Fund. COP debt service requirements to maturity are as follows: Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 2011o2015 2016-2020 Total COPS Principal$ 2,881 3,040 3,204 3,388 1,208 7,462 10,144$31,327 Interest$ 1,761 1,607 1,445 1,273 1,149 4,442 1,682$13;359 Total$ 4,642 4,647 4,649 4,661 2,357 11,904 11,826$44,686 The City has long-term noncancelable leases with Xerox Corporation and Cannon Finance Service, Inc. to finance the acquisition of a Xerox Copier and a Canon Digital Color Copier. The leases qualify as capital leases for accounting purposes as defined under the FASB Statement No. 13, Accounting for Leases, and therefore have been recorded at the present value of future minimum lease payments at the date of inception of the leases.Future minimum lease payments to be made from unrestricted revenues of the Duplicating and Printing Internal Service Fund under these capital leases are as follows: Fiscal Year Ending 6/30 2006 2007 Total Les amount representing interest, variable Present value of future minimum lease payments$59 36 95$91 Certificates of Partic4ip Payable -Motorizd Bquint Debt service requirements to maturity for Motorized Equipment certificates of participation are to be paid by the Motorized Equipment Internal Service Fund from future revenues are as follows: Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 2011-2012 Total Unamortized COP discount Total COPS Ptrincipal
$ 227 240 251 261 274 596 1,849__L,)$1,847 Interest$ 100 87 72 58 42 34 393 Total$ 327 327 323 319 316 630 2,242 (__2)$2,24M The City has a long-term noncancelable agreement with EDS Corporation to finance the acquisition of the City's mainframe computer system. The agreement qualifies as a capital lease for accounting purposes as defined under the FASB Statement No. 13, Accounting for Leases, and therefore has been recorded at the present value of future minimum lease payments at the date of inception of the lease. Future minimum lease payments to be made from unrestricted revenues of the Information Services Internal Service Fund under the capital lease are as follows: Fiscal Year Ending 6/30 2006 Less amount repesenting interest, variable Present value of future minimum lease payments$175$168 51 CITY OF ANAHEIM NOTES AND LOANS PAYABLE At June 30, 2005, notes and loans payable are as follows: Homer Street land acquisition In July 1995, the Redevelopment Agency executed an installment note secured by a deed of trust with the County for acquisition of land at 1133 Homer Street and 1170 Anaheim Boulevard.
The land will be developed by the Community Services Department as part of La Palma Park. The amount of the note is $500 and bears interest at 7.25% per annum for a term of 15 years. Based on a cooperative agreement between the Redevelopment Agency and the Community Services Department, principal and interest on the note will be paid by the Community Services Department At June 30, 2005, the outstanding balance on the note was $211. Note debt service requirements to maturity are as follows: 5.97% and is payable over 20 years beginning on February 1, 2004 until August 1, 2023.Loan debt service requirements to maturity are as follows: Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2024 Total notes and loans Principal$ 156 162 169 175 272 2,182 3,431 3,453$10,000 Interest$ 521 518 513 508 499 2,234 1,509 397$6,699 Total$ 677 680 682 683 771 4,416 4,940 3,850 F16,699 Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 Total notes and loans Principal$ 37 39 42 45 48$211 Interest$15 13 10 7 3$48 Total$ 52 52 52 52 51$259 ComputerAided Dispatch and Records Manag-ment System (CAD/RMS) loan payable In December 2004, the City entered into an agreement with Suntrust to finance the acquisition and implementation of the CAD/RMS system. The amount of the loan is$5,289 and bears interest at 3.30% per annum for aterm of 5 years. Principal and interest payments of $578 are due semiannually beginning on June 30, 2005 until December 31, 2009. The outstanding balance at June 30, 2005 was $4,799. Loan debt service requirements to maturity are as follows: HUD Section 108 guaranteed l"m payable In May 1999, the City entered into an agreement with HUD, making available
$3,000 to finance the acquisition of certain property for park use. The loan bears interest ranging from 6.56% to 7.22% and is payable over a nine-year period beginning on August 1, 2000 until August 1, 2008. The outstanding balance at June 30, 2005, was $1,440. Loan debt service requirements to maturity to be paid from the Community Development Block Grant Special Revenue Fund are as follows: Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 Total notes and loans Principl$1,006 1,040 1,074 1,110 569$4,799 Interest$150 117 82 46 9 i4O4 Total$1,156 1,157 1,156 1,156 578$5,203 Fiscal Year Ending 6/30 2006 2007 2008 2009 Total notes and loans Principa$ 330 350 375 385$1,440 Interest$92 67 41 14 S214 Total$ 422 417 416 399$1,654 Redevelopment Agenc notes payable In July 1989, the Redevelopment Agency executed a note with Savi Ranch Associates, a California general partnership.
The amount of the note is $2,707 and bears interest at 9.5%per annum. The note is payable from net property tax increment as defined in the Redevelopment Agency note. If there is insufficient property tax increment to pay for principal and interest at the termination of the River Valley project area plan, the note ceases to be an obligation of the Redevelopment Agency.In February 2003, the Redevelopment Agency executed a balloon payment promissory note with Suzanna Luiso, a property owner, for the purchase of a commercial development site. The amount of the note is $450 and bears simple interest at 6% per annum. The note is payable at $3 monthly over 10 years, with a balloon payment of $379 in March 2013.At June 30, 2005, the outstanding balance of the note is $437.In May 2003, the City entered into an agreement with HUD, making available
$10,000 to provide financial assistance related to the development of Westgate on a former landfill site located at the northeast comer of Beach Boulevard and Lincoln Avenue. The loan is payable from sales tax revenue generated by Westgate, from Community Development Block Grant yearly entitlement, and from the Redevelopment Agency's property tax increment and project participation revenues generated by Westgate.
The outstanding balance at June 30, 2005 was $10,000. The loan bears interest ranging from 1.74% to 52 CrrY OF ANAHERIM In November 2004, the Redevelopment Agency executed a promissory note with the Orange County Transportation Authority for the acquisition of various parcels for commercial development The amount of the note is $1,225 and bears 5% interest per annum. The note is payable at $70 quarterly over 5 years. At June 30, 2005, the outstanding balance of the note is $1,116.In January 2005, the Redevelopment Agency executed a promissory note with Robert and Betty Williams, co-trustees of the Williams Family Trust, for the acquisition of a certain property for commercial development The amount of the note is $650 and bears 3.5%interest per annum. The note is payable over 6 years. At June 30, 2005, the outstanding balance of the note is $617.Redeiwvokmet Agency conkactual commitments As part of the Redevelopment Agency's economic development program to attract and retain businesses in the City, the Redevelopment Agency has entered into various contractual commitments.
Generally, the Redevelopment Agency reimburses the business for its tenant improvement costs from property tax increment revenues received by the Redevelopment Agency. At June 30, 2005, the outstanding balance of these commitments totaled $702.The Redevelopment Agency has entered into an agreement, dated December 15, 1992, with California State Teachers Retirement System (CALSTRS) to share in the development costs of the Plaza Redevelopment Project. In March 2004, CALSTRS assigned the agreement to the new owners, Pan Pacific Retail Properties, Inc. (PPRP).The PPRP participation note bears 7% simple interest rate and has a maximum term of 25 years. The Redevelopment Agency's obligation to repay the note is entirely contingent on the revenues generated by the project. The note will be forgiven at the end of the term whether or not the entire amount has been repaid. At June 30, 2005, the outstanding balance of the participation note is $4,615.Debt service requirements to maturity for the Redevelopment Agency notes and contractual commitments to be paid from future revenues are as follows: Housing Authority CHFA loan agpenemnt In October 2003, the Housing Authority entered into a loan agreement for an amount up to$1,800 with the California Housing Finance Agency (CHFA), to provide funding for first-time homebuyers down payment assistance.
The note bears 3% simple interest, with principal and interest due in October 2013. At June 30, 2005, the outstanding balance of this loan is $375.In November 1999 and April 2000, the Housing Authority entered into separate loan agreements totaling S 1,650 with CHFA to provide funding to several property owners for the rehabilitation of properties to provide affordable housing. The notes bear 3% simple interest, with principal payments in the amount of $1,150 and $500 due in November 2009 and April 2010, respectively.
BUSINESS-TYPE ACTIVITIES:
BONDS PAYABLE Date Final Issued Maturity Eactrio Utility 1993 Revenue Bonds 1998 Revenue Bonds 1999 Revenue Bonds 2002 Revenue Bonds 2003 Revenue Bonds 2004 Revenue Bonds Total Unamortized bond discount Total Electric Utility Waer Utility 1992 Revenue Bonds 2004 Revenue Bonds Total Unamortized bond discount Total Water Utility 6/01/93 5/01/98 9/01/99 2/15/02 4/01/03 6/01/04 10/01/07 10/0128 10/01/27 10/01/31 10/01/22 10/01/34 Range of Interest Rates at Issue Date 3.50/-5.1%
4.75%-5.0%
4.625%3.3%-5.25%
3.00/&-5.0%
2.5Y-5.0%Authorized and Issued$ 60,700 65,000 45,000 178,705 60,415 131,265 Out-standing 6/30/05$ 19,105 60,355 45,000 178,705 60,415 131,265 494,845 (1,000)493,845 3/15/92 7/01/05 3.1%-6.1%5/01/04 10/01/16 4.0/-4.5%Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021 Total notes and contractual commitments prmcipal S 534 439 464 607 488 1,435 4,396 1,831$10,194 Interest$ 687 662 647 619 593 2,694 1,657 136$7,695 Total S 1,221 1,101 1,111 1,226 1,081 4,129 6,053 1,967$17,889 5,740 600 12,105 11,325 11,925 (496)11,429 26,260 23,090 (234)22,856$585,190 $528,130 Counvatio, sports and Entertainment VW=e 2002 Revenue Bonds 7/02/02 8/01/23 Unamortized bond discount 3.0'/,-5.5%
Total Convention, Sports and Entertainment Venues Total business-type activities bonds 53 CIY OF ANAHEIM Bonds Payable -Electri uUIl Boada Payable -Conwatidon, Sports and Entcxtalument Wnemm Bond debt service requirements to maturity for the Electric Utility to be paid from revenues are as follows: Bond debt service requirements to maturity for the Convention, Sports and Entertainment Venues to be paid from revenues are as follows: Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2025 2026-2030 2030-2035 Total Unamortized bond discount Total bonds Bonds Payable -Water Utility Principal S 12,625 13,315 13,920 14,735 15,255 81,625 97,165 95,425 94,675 56,105 494,845$493,845 Interest$ 23,903 23,351 22,735 22,102 21,439 96,121 73,822 49,837 25,809 4,497 363,616$363,616 Total$ 36,528 36,666 36,655 36,837 36,694 177,746 170,987 145,262 120,484 60,602 858,461 (1,000)$857,461 Fiscal Year Ending 6/30 2006 2007 2008 209 2010 2011-2015 2016-2020 2021-2024 Total Unamortized bond discount Total bonds Principal$ 75 75 80 3,215 3340 15,815 270 220 23,090$22,856 Interest$1,133 1,131 1,129 1,071 944 1,945 90 24 7,467$7,467 Total S 1,208 1,206 1,209 4,286 4,284 17,760 360 244 30,557 (234)$30,323 Out-standing 6/30/05 CERTIFICA.TE OF PARTICIPATION Bond debt service requirements to maturity for the Water Utility to be paid from revenues are as follows: Range of Date Final Interest Rates Issued Maturity at Issue Date 5/01/97 4/01/27 4.5%-6.0%Authorized and Issued Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 2011-2015 2016-2017 Total Unamortized bond discount Total bonds Principal$ 1,870 1,325 1,375 1,435 1,490 3,840 590 11,925 (4962$11,429 Interest S 450 380 324 269 211 477 13 2,124$2,124 Total S 2,320 1,705 1,699 1,704 1,701 4,317 603 14,049 (496$$13,553 mWrio Utliy 1997 Distribution Plant Unamortized COP discount Total Electric Utility Coavention, Sports and Entertainment Veues 1992 Convention Center Financing Project 1/01/92 8/01/23 3.9%-6.4%Accretion 1993 Refunding Projects 1/14/93 8/01/19 5.47%Unamortized COP discount Total Convention, Sports and Entertainment Venues Total business-type activities COPs$ 25,000 $ 21,630 (349)21,281 92,777 41,840 5,669 114,564 64,844 (682)S111,671$232,341 $132,952 54 CITY OF ANAHEIM Certifica of Participation Payable -Elecic Utiit Certificates of participation debt service requirements to maturity for the Electric Utility to be paid from revenues are as follows: defined under FASB Statement No. 13, Accounting for Leases, and therefore, has been recorded at the present value of the future minimum lease payments at the date of inception ofthe lease. Future minimum lease payments to be paid from unrestricted Water Utility revenues under the terms of this capital lease are as follows: Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2025 2026-2027 Total Unamortized COP discount Total COPs Principal$ 520 545 575 610 645 3,845 5,045 6,630 3,215 21,630 (349)$21,281 Interest S 1,229 1,202 1,173 1,138 1,102 4,891 3,693 2,105 280 16,813$16,813 Total$ 1,749 1,747 1,748 1,748 1,747 8,736 8,738 8,735 3,495 38,443 (349)$38,094 Fiscal Year Ending 6/30 2006 I.ss amount representing interest variable Present value of future minimum lease payments 189 (9)$180 Certificates ofParticipation Payable- Coawation.
Sports and Enterntaimet Venues Certificates of participation debt service requirements to maturity for the Convention, Sports and Entertainment Venues Fund to be paid from unrestricted revenues are as follows: NOTES AND LOANS PAYABLE At June 30, 2005, notes and loans payable are as follows: Orange County Water District Promissory Note In April 1990, the Water Utility executed a Well Construction Program Agreement with the Orange County Water District to assist in financing the construction of three super wells to be located within the City. Advances totaling $2,177 at an interest rate of 3.5% for a period of 15 years were for wells 46, 47 and 49. The outstanding balance on this note at June 30, 2005, totaled $740.State of C"nifomia Realvig Fund Note Payable In June 2001, the Water Utility executed a note payable to the State of California Revolving Fund at a rate of 2.8% in the amount of $18,063. There are semi-annual payments of principal and interest in the amount of $592 through June 12, 2021. The outstanding balance on this note at June 30, 2005, totaled $15,580.Notes and Loans Payable- Water Utility Notes and loans debt service requirements to maturity for the Water Utility are as follows: Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2024 Total Unamortized COP discount Total COPS priNipal$ 5,962 6,143 6,327 5,396 5,669 28,276 39,911 9,000 106,684 (682$106,002 Interest$ 7,764 7,582 7,378 5,096 4,774 19,141 8,201 440 60,376$60,376 Total$ 13,726 13,725 13,705 10,492 10,443 47,417 48,112 9,440 167,060 (6826$166,378 Included in interest is $5,669 related to accretion on capital appreciation certificates.
CAPITAL LEASE OBLIGATION The City has a long-term noncancelable lease with the Municipal Water District of Orange County to finance the acquisition of a 3.002% share in the capacity of the Allen-McColIoch Pipeline.
Such lease qualifies as a capital lease for accounting purposes as Fiscal Year Ending 6/30 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021 Total Unamortized note discount Total notes and loans PrMin l$ 918 945 941 935 962 4,619 5,270 1,730 16,320 (478)sis,942 Interest$ 454 427 400 373 346 1,338 655 49 4,042$4,042 Total$ 1,372 1,372 1,341 1,308 1,308 5,957 5,925 1,779 20,362 (478)$19,884 55 CiTY OF ANAHEIM ARBITERAG CONDUIT FWNANCINGS The Tax Reform Act of 1986 (Act) substantially revised the treatment to be afforded to earnings on the proceeds of tax-exempt debt, and now requires the City to calculate and remit rebatable arbitrage earnings to the Internal Revenue Service. Certain of the City's debt and interest earned on the proceeds thereof are subject to the requirements of the Act.The City has accrued a liability for estimated rebatable arbitrage earnings and has set aside such earnings as restricted cash. At June 30, 2005, the arbitrage rebate liability for governmental and business-type activities was zero and $183, respectively.
COMPLANCE WITH DEBT COVENANTS There are various limitations and restrictions contained in the City's bond and certificates of participation indentures.
The City believes they are in compliance with all significant limitations and restrictions.
DEBT DEFEASED Certain bonds and certificates of participation defeased by the City prior to June 30, 2005, are summarized below: Outstanding 6/30/05 Redwovast Agancy Local Government Finance Authority Revenue Bonds, 1986 Issue A $38,410 Electric Utility Fund Electric System Certificates of Participation, Issue of 1989 2,840 Electric System Revenue Bonds, Issue of 1993 275 Electric System Authority Revenue Bonds, First Issue of 1993 61,375 Electric System Authority Revenue Bonds, Second Issue of 1993 58,495 Electric System Revenue Bonds, Issue of 1994 2,145 Water Utty Fund Water System Authority Revenue Bond, Issue of 1994 20,000 In each of these refundings, the proceeds of the refunding issues mere placed in irrevocable escrow accounts and invested in government securities that, together with interest earnings thereon, will provide amounts sufficient for future payments of interest and principal on the issues refunded.
Refunded debt is not included in the City's accompanying financial statements as the City has satisfied its obligation through the in-substance defeasance of these issues.city The City has entered into two conduit financings on behalf of community care provider facilities and one to facilitate the management agreement for the Arrowhead Pond of Anaheim. In accordance with applicable agreements, the City has no obligation for debt service payments and therefore, the debt is not reflected in the accompanying financial statements.
Bonds payable and certificates of participation related to conduit financings outstanding at June 30, 2005, are as follows: Date Issued 1985 West Anaheim Convalescent Home 12/30/85 1993 Anaheim Memorial Hospital Association 10/15/93 2003 Anaheim Arena Financing Project 12/i 1/03 Total Final Amount Outstanding Maturity Issued 6/30/05 12/01/05 $ 3,204 $ 2,349 5/15/20 46,690 6/01/23 42,600$92,494 34,160 41,500$78,009 Anaheim ousing Authoity The Anaheim Housing Authority has entered into 13 conduit debt financings on behalf of various developers to assist with the acquisition, construction, equipping, rehabilitation and refinancing of multifamily residential rental projects within the City of Anaheim. In accordance with the bond documents, neither the City nor the Housing Authority has an obligation for debt service payments and therefore, the debt is not reflected in the accompanying financial statements.
Housing Authority revenue bonds related to conduit financings outstanding at June 30, 2005, are as follows: 1985 West Anaheim Royale 1990 Bel Age Apartments 1992 Heritage Village Park 1997 Monterey Apartments 1997 Port Trinidad Apartments 1997 Casa Granada Apartments 1998 Sage Park Project 2000 Founins at Anaheim 2000 Cobblestone Apartments 2000 Seawinds Apartments 2000 Park Vista Apartments 2001 Solara Court Apartments Total Date Issued 12/01/85 8/01/90 11/12/92 5/15/97 5/15/97 5/15/97 11/01/98 7/03/00 7120/00 7/20/00 7/24/00 1/01/01 Final Maturity 12/01/15 8/01/20 11/12/07 5/15/27 5/15M27 5/15M27 11/01/28 2/15/33 3/15/33 7/15/33 7/01/33 12/01/34 Amount Issued$ 4,664 10,000 8,485 4,545 2,140 3,795 5,5W 20,244 3,980 7,000 27,180 8,200$105,733 Outstanding 6/30/05$ 3,439 7,000 5,485 4,245 1,940 3,495 5,500 20,244 3,880 6,900 27,180 6,260$95,568 56 CITY OF ANAHEIM Mdlio-Roos Community Faclhii Dutbi In June 1989, the City issued $26,620 in special tax bonds to finance a portion of the cost of acquisition and construction of facilities in East Anaheim Hills. The bonds mere authorized pursuant to the Mello-Roos Community Facilities Act of 1982. In April 1995,$15,389 of the 1989 bonds were advance refunded through the Anaheim Public Financing Authority and in June 2004, $11,160 of the 1995 bonds were refunded through the Anaheim Public Financing Authority.
In December 1999, $7,720 of the 1989 bonds were refunded by the City. The 2004 and the 1999 bonds are payable from a special assessment tax and are non-recourse bonds secured by the properties.
Neither the faith and credit nor the taxing power of the City, the State of California or any political subdivision of either of the foregoing is pledged to the payment of the bonds. The bonds are not general or special obligations of the City, nor do they contain any credit enhancements that secondarily pledge existing or future resources of the City, accordingly they are not reflected in the accompanying financial statements.
The City is acting as agent only for the property owners in collecting the special assessments and forwarding the collections to the fiscal agent. This activity is recorded in an agency fund in the financial statements.
At June 30, 2005, the 2004 Anaheim Public Financing Authority bonds outstanding amounted to $11,210, and the 1999 Mello-Roos bonds outstanding amounted to $6,620.NOT 8 -ITBMREST RATE SWAPS: Objective of the interest rate swaps. As a means to lower its borrowing costs, when compared against fixed-rate bonds at the time of issuance, the City entered into interest rate swap agreements for certain COPs. The intention of the swaps was to effectively change the City's variable interest rate on the COPs to a synthetic fixed rate.Terms and fair values. The terms and fair values of the outstanding swaps at June 30, 2005, are as follows. The City's swap agreements contain scheduled reductions to outstanding notional amounts that are expected to approximately follow scheduled or anticipated reductions in the associated COPs payable category.then-existing market conditions, mauld enable the remarketing agent to sell such COPs.Fair Wdua Because interest rates have declined since execution of the swaps, the swaps had a negative fair value of $12,060 at June 30, 2005. The swaps' negative fair value may be countered by a reduction in total interest payments required under the variable-rate COPs, creating a lower synthetic interest rate. Because the coupons on the City's variable-rate COPs adjust to changing interest rates, the COPs do not have a corresponding fair value increase.
The fair values were estimated using the present value of expected cash flows.Credit Risk At June 30, 2005, the City was not exposed to credit risk because the swaps had negative fair values. However, should interest rates change and the fair values of the swaps become positive, the City would be exposed to credit risk in the amount of the derivatives' fair values. The swap counterparty was rated AAA by S&P and Aan by Moody's at June 30, 2005. To mitigate the potential for credit risk, if the counterparty's credit quality falls below AA-/Aa3, the fair value of the swaps will be fully collateralized by the counterparty with cash or securities.
Collateral would be posted with a third-party custodian.
Termination Risak The City or the counterparty may terminate the swaps if the other party fails to perform under the terms of the contracts.
The swaps may be terminated by the City if the counterparty's credit quality rating falls below "A-" as issued by S&P or "A3" as issued by Moody's. Additionally, the swaps may be terminated by the counterparty if the City's credit quality rating falls below "BBB-" as issued by S&P or "Baa" as issued by Moody's or if the COPs' credit quality ratings fall below "AA-" as issued by S&P or "Aa3" as issued by Moody's. If the swaps are terminated, the variable-rate COPs would no longer carry synthetic interest rates. Also, if at the time of termination the swaps had negative fair values, the City would be liable to the counterparty for a payment equal to the swaps'fair values.NOTE 9 -RlElREMENT PLANS: The City contributes to the California Public Employees' Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries.
PERS acts as a common investment and administrative agent for participating public entities within the State of California.
Benefit provisions and all other requirements are established by State statute and City ordinance.
A copy of PERS' annual financial report may be obtained from its executive office at 400 P Street, Sacramento, California 95814.COP Issues 1993 Refunding Projects 1993 Police Facilities Refmancing Project Notional Amounts$67.800 Variable Effective Fixed Rate Rate Date Paid Received 1/1/1993 5.47% 2.21%t Swap Fair Termination Values Date S( 1,719) /11/2019 (~341 811/2008 U(12,060J 6,450 6/1/1993$74,250 4.47% 2.21%0" tVariable rate received effective at June 30, 2005. The variable rate received is a weekly interest rate determined by the remarketing agent on the determination date to be the minimum interest rate, which, in the opinion of the remarketing agent under 57 CITY OF ANAHEIM Funding Policy: Participants are required to contribute 7.0% (9.0% for safety employees) of their annual covered salary. The City pays participant contributions for miscellaneous employees, while contributions for safety employees are paid by the employees through payroll deductions.
In addition, the City is required to contribute at an actuarially determined rate applied to annual covered payroll; the current rates are 2.364% for miscellaneous employees, 25.494% for fire safety employees and 28.680% for police safety employees.
The contribution requirements of plan members and the City are established and may be amended by PERS.Annual Pension Cost For fiscal year 2005, the City's annual pension cost of S29,591 for PERS was equal to the City's required and actual contributions.
The required contribution was determined as a part of the 2004 actuarial valuations, using the entry age normal actuarial cost method. The actuarial assumptions included: (a) 7.75% investment rate of return (net of administrative expenses), (b) projected annual salary increases that vary by duration of service, and (c) 2% per year cost-of-living adjustments.
Both (a) and (b)included an inflation component of 3.0%. The actuarial value of PERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a 15-year period (smoothed market value). The PERS unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization periods at June 30, 2004, were 19 years for the miscellaneous plan and 32 years for safety fire and police plans for years of service unfunded.Retirement Medical Benefits In addition to the pension benefits described above, the City provides postretirement medical benefits to eligible retirees (hired prior to January 1, 2002, and Anaheim Police Association employees hired prior to July 6, 2001) in accordance with City Personnel Resolutions and various Memoranda of Understanding.
Depending upon the employee's date of hire and employee group, eligibility requirements may be age 50 and five years of City service or age 50 and ten years of City service.In all cases, eligible retirees may participate in any health plan made available to active City employees.
The contribution made by the City toward the cost of the plan is determined by Personnel Resolution or Memorandum of Understanding.
At June 30,2005, 1,204 retirees or surviving spouses met the various eligibility requirements and were receiving benefits.The City has several plans with different contribution levels and benefit provisions.
City contributions vary up to 100% of annual premium cost, depending on the employee's status (single, two-party, family, Medicare participant) and employee group.The most recent actuarial valuation was as of July 1, 2004, using the Projected Unit Credit cost method to determine reserving requirements.
The valuation was based on the following assumptions:
THEEYARTRED IFOMTINFO EM Fiscal Year Ending 6130/03 6130/04 6/30/05 Annual Pension Cost (APC)$10,924 20,072 29,591 Percentage of APC Contributed 100%100 100 Net Pension Obligation
$0 0 0 Discount rate Increase in future payroll Medical trend Non-economic 4.5% annual 4.0% annual 9.0% increase in 2005, declining to 5.0%increase by 2010 System-wide PERS assumptions RF1JRDSPLMNAYIFRMATION (Uwa nadtd)Actuarial Valuation Date 6/30V2 6/30/03 6/3/04 (A) (B) (C)Excess/Entry Age (Deficiency)
Actuarial Accrued Over Asset Liability AAL Value (S950,992 $ 931,633 $ 19,359 954,147 1,020,648 (66,501)998,831 1,129,864 (131,033)(D) (E) (F)Excess/(Deficiency)
Funded Annual of Covered Ratio Covered Payroll (AY(B) Payroll (CY 102.1 S135,360 14.3 93.5 142,034 (46.8)88.4 145,210 (90.2)The July 1, 2004, actuarial valuation estimated the current normal cost of the benefit at 3.27% of payroll. An additional 3.34% of payroll was estimated as the cost of amortizing prior service obligations over a 30-year perkL Currently, the accrued liability is estimated at $205,551 of which $74,049 is funded, available, and reserved for future obligations and$131,502 is unfunded.
The City's contribution to the postrfirement medical plan for the period July 1, 2004 to June 30, 2005 was $5,584.The City provides postretirement medical benefits in the form of defimed contribution retiree medical plans to eligible retirees in accordance with City Personnel Resolutions and various Memoranda of Understandings for all newly hired employees as of January 1, 2002 (July 6, 2001 for the Anaheim Police Association).
Under the plans, the City is required to make one-time contributions ranging from $3 to $8 per employee.
The City's total contribution to the plans for the period July 1, 2004 to June 30, 2005, was $468.58 CITY OF ANAHEIM NOTE 10 -JOINT VENTURES AND JOINTLY-OWNED PROPERTIES:
Authoiy for Oanm County -City Hazardous Mateniab Emrgcy Respowse The City participates in a joint powers authority, the Authority for Orange County-City Hazardous Materials Emergency Response (Hazmat), for the purposes of responding to, assessing the nature of, and stabilizing any emergency created by the release or threatened release of hazardous materials.
The following entities are members of Hazmat: City of Anaheim, Orange County Fire Authority, City of Santa Ana, and the City of Huntington Beach. Members of the Board of Directors consist of one voting Board member and an alternate appointed by the governing body from the City of Anaheim, Orange County Fire Authority, City of Santa Ana, and the City of Huntington Beach.Distribution of fair share contributions to reimburse the provider agencies are as follows: City of Anaheim, 27.30/a; Orange County Fire Authority, 27.3%; City of Santa Ana, 27.30/c; City of Huntington Beach, 18.1/.At the direction of the Board, revenues are disbursed to the provider agencies at the end of each preceding quarter. Audited financial information for the joint powers authority as of and for the year ended June 30, 2005, is as follows: The following entities are members of the Fire Authority:
City of Anaheim, City of Fountain Valley, City of Fullerton, City of Garden Grove, City of Huntington Beach, City of Newport Beach, and the City of Orange.Public entities in Orange County may receive services from the Fire Authority by executing an agreement and paying a fair share contribution.
Audited financial information for the Fire Authority as of and for the year ended June 30, 2005, is as follows: Total assets Total liabilities Members' equity Total revenues Total expenses Revenues over expenses$1,191 375 816 3,721 3,711 10 Total assets Total liabilities Members' equity Total -evenues Total expenses Revenues over expenses S 67 45 22 149 141 8 The City has no significant equity interest in the Fire Authority, and accordingly neither assets nor liabilities of the Fire Authority have been recorded in the City's basic financial statements.
For a copy of separate financial statements, contact the Finance Director of the City.Jointly-own utfi plants The City's Electric Utility owns a 10.04% ownership interest in the coal-fired San Juan Generating Station, Unit 4, located near Waterflow, New Mexico. The other participants in Unit 4 and their respective ownership include: Public Service of New Mexico, 45.48%;City of Farmington, New Mexico, 8.4 8 0/9; County of Los Alamos, New Mexico, 7.20%;and M-S-R Public Power Agency, 28.800a There are no separate financial statements for this venture, as each participant's interest in the utility plant is included in their respective financial statements.
The City's cumulative share of construction costs included in the utility plant at June 30, 2005, amounted to $60,237. The City's bonded indebtedness incurred to finance the purchase of the 10.04% ownership interest is also included in the accompanying financial statements.
In addition, the City's Electric Utility owns a 3.16% interest as a tenant in common in SONGS. The other participants and their respective ownership interests in SONGS are: SCE, 75.05%; San Diego Gas and Electric Company, 20.00%0 and the City of Riverside, California, 1.79%. There are no separate financial statements for this venture, as each participant's interests in the utility plant and operating expenses are included in their respective financial statements.
At June 30, 2005, the Electric Utility's carrying value (participating share) of the SONGS was $71,261, net of accumulated depreciation of$139,331, which is included in utility plant. The Electric Utility recorded depreciation related to the SONGS of $7,495 for the year ended June 30, 2005. The City's bonded indebtedness incurred to finance its portion of the construction costs is also included in the accompanying financial statements.
Hazmat does not have any debt outstanding at June 30, 2005.The City has no significant equity interest in Hazmat, and accordingly neither assets nor liabilities of Hazmat have been recorded in the City's basic financial statements.
For a copy of separate financial statements, contact the Finance Director of the City.Metro CWt Fire At rity The City participates in a joint powers authority, Metro Cities Fire Authority (Fire Authority), for the purpose of providing a central communication network and record keeping system to support fire suppression, emergency medical assistance, rescue service, and related services provided by the members of the Fire Authority.
59 CrrY OF ANA]HEDM The operation and maintenance of SONGS is the responsibility of SCE. The five-member San Onofre Board of Review (Board) approves the joint venture's budgets for capital expenditures and operating expenses.
SCE has two participants on the Board, including the chairman; the City and the other participants each have one representative on the Board.On June 22, 2004, SCE, as operating agent for the SONGS Nuclear Power Plant gave notice that SCE had, pursuant to Section 16 of the Second San Onofre Operating Agreement (Agreement), declared an Operating Impairment As a result of SCE's action, on October !1, 2004, the Anaheim Public Utilities (City) exercised its option, pursuant to Section 16 of the Agreement, not to participate in the restoration work related to the impairment and to have its ownership share reduced per provisions of the Agreement The City believes the result will be termination of the City's Ownership Share in fiscal year 2010. The potential termination of the City's Ownership Share is contingent upon certain regulatory approvals obtained by SCE and the City obtaining approval from City Council, which had not been obtained at June 30,2005. The City cannot predict the outcome and/or schedule of this matter.NOT 11 -COM[TMENTS AND CONMhNGENCIES:
bitermountain Pwmt Agen , The Electric Utility has entered into a power purchases contract with the Intermountain Power Agency (EPA) for delivery of electric power. The share of IPA power is equal to 13.225% of the generation output of IPA'S two coal-fueled generating units located in Delta, Utah. The City is obligated for the following percentage of electrical facilities at IPA: it is obligated for its proportional share of the cost of the project. The City is obligated for the following percentage of electrical facilities owned by SCPPA: Transmission Southern Transmission System (STS)Mead-Adelanto Project (MAP)Mead-Phoenix Project (MPP)Generation Hoover Dam Upating (Hoover)Magnolia Generating Station (Magnolia)
Entitlement 17.6%13.5%24.2%Entitlement 42.6%38.0%Expiration 2027 2030 2030 Expiration 2018 2036 Take or pav commitments As part of the take or pay commitments with IPA and SCPPA, the Electric Utility has agreed to pay its share of current and long-term obligations.
Payment for these obligations will be made from the operating revenues received during the year that the payment is due. A long-term obligation has not been recorded in the accompanying fmancial statements for these commitments.
The following schedule details the amount of debt service that is due and payable by the Electric Utility for each project and the final maturity date.Fiscal Year Ending 6/30 IPA STS 2006 S 39,700 $ 12,265 2007 38,383 12,740 2008 39,574 12,562 2009 36,853 12,133 2010 39,460 12,220 2011-2015 206,824 69,119 2016-2020 158,714 69,450 2021-2025 61,852 40,796 2026-2030 2031-2035 2036-2037 MAP S 2,852 2,856 2,852 2,857 2,928 14,532 14,513 MPP S 1,586 1,591 1,589 1,586 1,822 8,490 7,778 Hoover Magnolia Total$ 959 $ 7,162 S 64,524 957 7,444 63,971 958 7,443 64,978 958 7,444 61,831 957 7,442 64,829 4,787 37,213 340,965 2,871 37,215 290,541 37,213 139,861 37,212 37,212 37,211 37,211 20,588 20,588$12,447 $243,587 $1,186,511 Generation Intermountain Powvr Project Entitlement 13.2%Expiration 2027 The contract constitutes an obligation of the Electric Utility to make payments from revenues and requires payment of certain minimum charges. These minimum charges include debt service requirements on the financial obligations used to construct the plant These requirements are considered a cost of purchased power and are quantified below.Southern California Public Poemr Authority The Electric Utility is a member of the Southern California Public Power Authority (SCPPA), a joint powers agency. SCPPA provides for the financing and construction of electric generating and transmission projects for participation by some or all of its members. To the extent the Electric Utility participates in projects developed by SCPPA, Total$621,360 $241,285 $43,390 $24,442 In addition to debt service, the City's entitlement requires the payment for fuel costs, operations and maintenance (O&M), administration and general (A&G) and other miscellaneous costs associated with the generation and transmission facilities discussed above. These costs do not have a similar structured payment schedule as debt service, however, prior experience indicates that annual costs are generally consistent from year to year. The fiscal year 2006 budget for fuel, O&M, A&G and other costs at these projects are as follows: Fiscal Year IPA STS MAP MPP Hoover Magnolia Total 2006 $41,880 $2,705 $225 $120 $78 $43,708 $88,716 60 CITY OF ANAHEIM The Electric Utility has prepaid purchased power costs for the following take or pay contracts at June 30, 2005: SCPPA -Stabilization fund prepayment
$17,978 SCPPA -Magnolia required prepayment 3,833 SCPPA -Hoover required prepayment 291 San Juan -Fuel acquisition prepayment 58 Prepaid purchased power $22,160 Sports and Entertainment Arena The City entered into agreements with Ogden Facility Management Corporation of Anaheim (OFM), a subsidiary of Ogden Corporation, now known as Covanta Energy Corporation (Ogden) regarding the construction and operation of a 19,500-seat Sports and Entertainment Arena (Arrowhead Pond of Anaheim), which was completed in June 1993.The grand opening of this facility occurred on June 18, 1993, and shortly thereafter Ogden announced that it was able to secure a National Hockey League (NHL) expansion franchise, "The Mighty Ducks," as a major tenant in the facility, which actually began its first year of operation in September 1993. The agreement with the NHL team runs for 30 years, subject to termination by the tenant after the 1998-99 season, on certain conditions.
As a result of negotiations between the City, Ogden and the owner of the Mighty Ducks, now known as Mighty Ducks Hockey Club, Inc., it was agreed to increase the size of the original $103,500 debt issue which financed construction of the facility by $23,000 to reimburse Ogden for the $12,500 Hockey Franchise Fee and additional enhancements to the Sports and Entertainment Arena for such items as completing the team locker rooms, the restaurant, and a $3,000 state-of-the-art scoreboard (the 1993 Issue). Final negotiations resulted in elimination of the City's contingent liability for the first three years. Since there was one professional franchise signed during this period, the maximum contingent liability to the City was $1,500 for years four through eight. A $1,500 payment was made during fiscal years 1998, 1999, 2000, 2001 and 2002 resulting in the elimination of the City's obligation at June 30, 2002.On November 5, 2003, pursuant to a termination agreement between OFM, Ogden and the City, OFM agreed to the termination and rejection by OFM of the Second Amended and Restated Arena Management Agreement (the Management Agreement) dated December 1, 1993, whereby OFM had the exclusive right to operate and maintain the facility.
OFM and Ogden were subject to the jurisdiction of the United States Bankruptcy Court under a Chapter 11 proceeding.
On December 8, 2003, the United States Bankruptcy Court approved the rejection of certain existing operating contracts, termination of the Management Agreement and settlement of certain claims under a bank agreement whereby $40,000 was paid to Credit Suisse First Boston (which issued the credit enhancement supporting the 1993 Issue) from the proceeds of Taxable Lease Revenue Bonds issued by the Anaheim Public Financing Authority in the aggregate amount of $42,600. Effective December 16, 2003, the City and Anaheim Arena Management LLC (AAM) entered into a Facility Management Agreement (FMA)whereby AAM has the exclusive right and license to manage, maintain and operate all aspects of the facility in accordance with the FMA through June 30, 2023 with an option to extend the term for an additional period not to exceed 10 years. Annual distributions to the City, AAM and the County of Orange are required for their respective share of adjusted net revenues, as defined in the FMA. In the event that cash on hand is insufficient to pay operating expenses, debt service, distributions to the City, the County of Orange, or other amounts payable, AAM shall make or cause an affiliate or third-party lending institution to make loans for such purposes, as defined in the FMA. Such funds will be repaid from gross revenues or adjusted net revenues, if any, as defined in and in accordance with disbursement priorities established in the FMA. At June 30, 2005, the outstanding conduit debt on the Arrowhead Pond of Anaheim totaled $41,500. The debt is non-recourse, payable from revenues generated by the facility.
Neither the faith and credit nor the taxing power of the City is pledged to the payment of the debt. The debt is not a general or special obligation of the City, nor does it contain any credit enhancements that secondarily pledge existing or future resources of the City (other than revenues generated by the facility), and accordingly it is not reflected in the accompanying financial statements.
On January 26, 1999, the City entered into a series of lease transactions for the Arrowhead Pond of Anaheim. Under these transactions, the City leased the Arrowhead Pond of Anaheim to a third party trustee acting for the benefit of an equity investor for a term of approximately 39.2 years. The trustee sublet the facility back to the City for 20 years, which is shorter than the remaining term of the management agreement between the manager and the City in consideration of an advance rental payment for the entire lease term. At the end of the sublease, the City has a purchase option to purchase the trustee's rights under the lease for a fixed amount. The advance rent payments to the City were deposited into a trust fund and invested.
The cash scheduled to be available from this trust fund is sufficient to pay the City's rent payments for the term of the sublease and to exercise the City's purchase option at the end of the sublease.
The excess of the amount of the advance rent payment made by the trustee to the City over the deposit to the trust funds, after the payment of transaction expenses and payment to Ogden for agreeing to pledge its interest as manager under the Management Agreement and agreeing to undertake certain additional obligations to the transaction, was approximately
$4,000.This amount was recognized by the City as deferred revenue and is being amortized over the sublease term. The City has secured its obligations to the other parties to these lease transactions by a pledge of its respective interest in revenues from the facility, subordinate (with certain exceptions) to any interests of the debt holders of the facility.
The City's obligations under these lease transactions are considered to be defeased in substance, and 61 CITY OF ANAHEIM therefore the related liabilities as well as the trust assets have been excluded from the City's financial statements.
AAM has pledged its interest as manager under the FMA and assuned certain of Ogden's obligations pursuant to separate agreements with the parties to the lease transactions.
Stadium On May 14, 1996, the City and the California Angels, LP (Team) (renamed Anaheim Angels), was then managed by Disney Sports Enterprises, Inc. (subsequently known as Anaheim Sports, Inc.), entered into an agreement to provide for the operation and refurbishment of the Stadium. Pursuant to the agreement, the Team assumed responsibility for the operation of the Stadium on October 1, 1996. The agreement runs for 33 years (subject to a limited Team option to cancel at 20 years and the Team's right to extend the term).In addition to operational control, the agreement provides for a minimum $100,000 renovation to the Stadium, which was funded by the City ($20,000) and Disney Sports Enterprises, Inc. ($80,000 plus overruns).
This renovation, which commenced on October 1, 1996, was substantially complete by the opening of the 1998 baseball season.Under the terms of the agreement, the Team assumed full responsibility for all Stadium operations and maintenance, including capital maintenance.
The Team books all Stadium and parking lot events (except for ten annual City events), pays all expenses, and retains all revenue (subject to the City's rights to share in certain net revenues) except that the City credits the Team up to $500 per year adjusted annually for CPI for a capital reserve, calculated on the basis of property taxes. The City's participation in net revenues includes amounts received by the Team above certain thresholds including paid admissions
($2.00 per paid admission in excess of 2.6 million admissions per year), net income from non-game events (in excess of $2,000 per year adjusted annually for CPI), and parking lot net income (25% in excess of $4,000 per year adjusted annually for CPI). Additionally, as indicated above, the City retained the right to book and retain all revenue from ten parking lot events per year. Major League Baseball consented to the transfer of the Team in fiscal year 2003 to interests controlled by Arte Moreno. No changes in the terms of the agreement with the Team were made in connection with that transfer.This agreement ensured the retention of the Team under a long-term agreement (the prior agreement with the California Angels expired in 2001), accomplished a major overhaul of the Stadium at minimum cost to the City, and provided for the privatization of Stadium operations and shift of operating risL The Agreement also provided that the City had the right to develop its Sportstown complex on approximately 42 acres of the parking lot. In 1998 a land sale of $1,000 for a 1.25 acre site was approved with an affiliate of Ogden for the construction of an 1,100-seat theatre called "Tinseltown Studios" (now known as "The Grove of Anaheim").
In November 2002, the City purchased the facility and the land for $6,700 from SMG, a Pennsylvania partnership, an affiliate of Aramark Entertainment, Inc., the successor to Ogden Entertainment, Inc. Concurrent with the purchase, the City granted to Nederlander-Grove LLC (Nederlander) a license to operate the facility for three years with the right to extend another five years, which Nederlander has exercised.
Under the terms of the agreement, Nederlander receives a management fee of $150. Additionally, The City and Nederlander each participate 50% in the annual net profits and net losses from operations, as defimed in the management agreement.
Nederlander is responsible for 100% of losses in excess of $400, thereby limiting the City's share of net losses to a maximum of $200 in any given year. Upon expiration of the term of the agreement, the City may elect to extend the term or pay the unamortized balance of capital assets purchased during the term to Nederlander.
In May 1999, the City approved the sale to Summit Commercial Properties of a 1.5 acre building site on the Sportstown site for $4,190. The transaction closed in March 2000, and the owner, HPMC Stadium Gateway Associates, LLC, constructed a 250,000 square foot, six-story office building on the parcel. The "Stadium Gateway Anaheim" office building opened for business on October 1, 2001. In April 2003, the building was sold to Principal Financial Group and is now operated by Stadium Gateway LLC, who has reported 100%occupancy.
The owner pays the City $160 per year for parking and common area maintenance.
The City is continuing to pursue other opportunities for future development of the Sportstown site.Ttigation A number of claims and suits are pending against the City for alleged damages to persons and/or property and for other alleged liabilities arising out of matters usually incident to the operation of a city such as Anaheim. Although the aggregate amount asserted for such lawsuits and claims is significant, in the opinion of City management, the City has strong defenses against such claims, and thus the ultimate loss, if any, relating to these claims and suits not covered by insurance, will not materially affect the financial position of the City.Granta Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies.
Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.
62 CITY OF ANAHEIM Conkmtmcion and other &ignfw;ant commitments NOTE 12- SUBSEQUENT EVBNTS At June 30, 2005, the City had the following commitments with respect to unfinished Change to Post Emploiyment Benefits capital projects: Automotive Equipment Acquisitions BNSF Railroad Corridor Soundwall East St/Santa An St to South St Haskctt Libray Katella Avel9th Street to Humor Katella Frontage Lighting and Landscape Lincoln -State College Intersection Park 69/12KV "GIS" Substation
&Roosevelt Park Facilities Parking Structure South St/State College to East St Technology Development Youth Center and Police Station Remaining Construction Commitment
$ 1,580 2,537 541 2,397 1,045 633 999 13,837 18,786 518 2,141 6,449 Expected Completion Date 06/06 04/06 08/05 01/06 08/07 07/05 07/05 06/06 12/06 08/05 12/05 05/06 In August 2005, the City restructured employee benefits for its miscellaneous (non-safety) employees.
A pension enhancement (2.7% @ 55) wias adopted in connection with a reduced retir medical benefit This reduced benefit for miscellaneous employees other than members of the International Brotherhood of Electrical Workers (IBEW), 1) freezes service credit as of December 31, 2005, for employees with no less than ten years of service, and 2) transfers over 300 employees that did not meet such criteria from the defimed benefit program to the existing defined contribution program. The same pension enhancement was adopted for IBEW members whereby benefits for members retiring on or after October 1, 2005, wvre transferred into the IBEW's benefit plan. This plan is provided solely through the terms of a Trust Fund established and maintained by the IBEW. The Trust is responsible for determining benefit eligibility and benefit schedules.
SONGS Nuclear Povwr Plant As discussed in note 10, the potential termination of the City's Ownership Share in SONGS is contingent upon certain regulatory approvals obtained by SCE and the City obtaining approval from City Council. On December 15, 2005, the California Public Utilities Commission (CPUC) announced its decision finding the restoration work to be cost effective, but imposing a cap on the amount that SCE may recover from its ratepayers without further CPUC approval.
The City remains unable to predict the outcome and/or schedule of this matter.63 (This page left blank intentionally) 64
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Nonmajor Governmental Funds SPECIAL REVENUE FUNDS are used to account for revenue derived from specific taxes or other earmarked revenue sources (other than for major capital projects) that are restricted by law or administrative action to expenditures for specified purposes.GAs TAX AND ROADS FUND -Established to account for the construction and maintenance of the road network system of the City. Financing is primarily provided by the City's share of Federal, State, and local gasoline taxes. Federal, State, and local regulations require that these gasoline taxes be used to improve and maintain streets, and includes programs that improve the air quality of the region.WORKFORCE DEVELOPMENT FUND -Established to account for the City's involvement in Federal, State, and local programs to create jobs for the unemployed citizens in the Anaheim area.COMMUNITY DEVELOPMENT BLOCK GRANT FUND -Established to account for financing of rehabilitation of privately held homes and government infrastructure.
Financing is provided by the Federal Housing and Community Development Act.COMMUNITY SERVICES FACILITES FUND -Established to account for the development of new parksite, playground, and other community facilities.
Financing is provided by State and Federal reimbursement programs in conjunction with fees charged to residential and commercial developers.
SEWER AND STORM DRAIN CONSTRUCTION FUND -Established to account for the construction of the City's sewer and storm drain system. Financing is provided by fees charged to residential and commercial developers.
GRANTS FUND -Established to account for miscellaneous grants requiring segregated fund accounting.
Financing is provided by Federal. State, and local agencies.ANAHEIM RESORT MAINTENANCE DISTRICT FUND -Established to account for the levy and collection of special assessments to pay the cost of annual maintenance and improvements within the maintenance district, for those parcels which specifically benefit from the maintenance and improvements.
NARCOTIC ASSET FORFEITURE FUND -Established to account for funds received from Federal and State agencies which are derived from monies and property seized by the Police Department in drug related incidents.
These funds are used to supplement existing resources of the City's law enforcement activities.
REDEVELOPMENT HOUSING SET-ASIDE FUND -Established for the purpose of increasing and improving the community's supply of low and moderate income housing in accordance with the California Community Redevelopment Law. Financing is provided from property tax increment.
DEBT SERVICE FUNDS are used to account for the accumulation of resources and the payment of principal and interest on general debt of the City and related entities.MUNICIPAL IMPROVEMENTS FUND -Established to accumulate resources for the payment of principal and interest on general obligation bonds of the City. Debt service is financed by property tax revenues.REDEVELOPMENT AGENCY FUND -Established to accumulate resources for payment of principal and interest on Redevelopment Agency tax allocation bonds. Debt service is financed by property tax revenues.CERTIFICATES OF PARTICIPATION FUND -Established to accumulate resources for payment of the principal and interest on the certificates of participation for the Parking Facility Project, Police Facilities Projects, Arena Land Acquisition, and other various acquisitions and capital improvements.
ANAHEIM RESORT IMPROVEMENTS FUND -Established to accumulate resources for payment of the principal and interest on the lease revenue bonds for The Anaheim Resort improvements.
CAPITAL PROJECTS FUNDS are established to account for resources used for the acquisition and construction of capital facilities by the City, except for those financed by proprietary funds.MELLO-Roos PROJECTS FUND -Established to account for road, sewer, and water improvements and the construction of a police sub-station.
Financing was provided by the sale of special tax bonds which are secured by and payable from the proceeds of an annual special assessment tax on the property within the district.REDEVELOPMENT AGENCY FUND -Established to account for the acquisition, relocation, demolition, and sale of property for those portions of Anaheim earmarked as in need of redevelopment related activities.
Financing is provided by property tax increment and bond proceeds.OTHER CAPITAL IMPROVEMENTS FUND -Established to account for miscellaneous capital projects as determined by the City Council. Currently, financing is provided by fees from developers for infrastructure improvements and subsidies from the General Fund.ANAHEIM RESORT IMPROVEMENTS FUND -Established to account for the public improvements in The Anaheim Resort. Financing was provided by the sale of lease revenue bonds.
CITY OF ANAHEIM Combining Balance Sheet Nonmajor Governmental Funds by Fund Type June 30, 2005 (In thousands)
Nowmwjor Nonmjor Total Special Nonmajor Capital Nonmajor ROVuO Debt Service Pje Gove ktal Funds Funds Fn Funds ASSETS Cash and cash equivalents
$ 6,325 $ 1,200 $ 7,331 $ 14,856 Investments 35,825 6,737 42,279 84,841 Accounts receivable, net 71 40 111 Accrued interest receivable 309 346 380 1,035 Notes receivable 22,621 9,183 31,804 Interfund receivable 83 12,062 12,145 Due from other governments 11,188 336 11,524 Land held for resale, net 9,170 18,696 27,866 Prepaids and other assets 709 72 1,033 1,814 Restricted cash and cash equivalents 3,600 12,017 17,159 32,776 Restricted investments 17,121 17,121 Total assets $89,901 $37,829 $108,163 $235,893 IJABUITrS AND FUND BALANCES Liabilities:
Accounts payable $ 5,795 $ 1,428 $ 4,174 $ 11,397 Wages Payable 192 84 276 Deposits 226 757 983 Interfund payable 328 26,684 27,012 Deferred liabilities 32,469 13,040 45,509 Total liabilities 39,010 1,428 44,739 85,177 Fund balances: Reserved for noncurrent interfund receivable 83 11,933 12,016 Reserved for debt service 34,872 34,872 Reserved for land held for resale 9,170 18,696 27,866 Reserved for prepaids and other assets 709 72 1,033 1,814 Unreserved
-designated for debt service 1,457 1,457 Unreserved
-designated for capital projects 14,974 36,497 51,471 Unreserved
-undesignated 25,955 (4,735) 21,220 Total fund balances 50,891 36,401 63,424 150,716 Total liabilities and fund balances $89,901 $37,829 S108,163 $235,893 65 CITY OF ANAhBEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Governmental Funds by Fund Type Year Ended June 30, 2005 (in thousands)
No:ar Nonmajor Total Special Nonajor CaRital Nonmajor RGVwuc Debt eiviomm tal Funds Funds PFuds Funds Revenues: Property taxes $10,326 $28,745 $ 39,071 Licenses, fees and permits 1,301 $ 60 1,361 Intergovernmental revenues 38,288 8 524 38,820 Use of money and property 1,394 1,325 3,489 6,208 Other 2,259 1,891 4,150 Total revenues 53,568 30,078 5,964 89,610 Expenditures:
Current: City Attorney 120 120 Police 3,794 14 3,808 Fire 422 422 Community Development 9,352 5,609 13,409 28,370 Planning 1,185 104 1,289 Public Works 6,188 451 6,639 Community Services 932 297 1,229 Convention, Sports and Entertainment 173 173 Capital outlay 22,663 17,009 39,672 Debt service: Principal retirement 524 9,099 305 9,928 Interest and fiscal agent charges 107 37,431 1,078 38,616 Total expenditures 45,287 52,139 32,840 130,266 Excess (deficiency) of revenues over (under) expenditures 8,281 (22,061) (26,876) (40,656)Other financing sources (uses): Transfers in 2,105 33,115 36,972 72,192 Transfers out (8,758) (24,294) (6,266) (39,318)Issuance of debt 7,164 7,164 Total other financing sources (uses) (6,653) 8,821 37,870 40,038 Net change in fund balances 1,628 (13,240) 10,994 (618)Fund balances at beginning of year 49,263 49,641 52,430 151,334 Fund balances at end of year $50,891 $36,401 $63,424 $150,716 66 CITY OF ANAHEIM Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2005 (in thousands)
GaS Tax Comm"Any Communty Sewer and and Wozk-rce Dewlopmont Szvicas Storm Dain Roads Dewlopmeat Block Gankt Facilitfis Construction ASSETS Cash and cash equivalents
$ 1,424 $ 4 $1,168 S 446 Investments 8,192 $ 1 23 6,803 2,597 Accounts receivable, net 3 2 5 Accrued interest receivable 66 6 58 27 Notes receivable 4,016 Interfund receivable Due from other governments 8,703 296 74 483 Land held for resale, net Prepaids and other assets 139 11 52 Restricted cash and cash equivalents Total assets $18,527 $ 310 $4,128 $8,564 $3,070 LIABIuTIES AND FUND BALANCES Liabilities:
Accounts payable $ 3,393 $ 85 $ 104 $ 339 S 78 Wages payable 64 32 8 7 6 Deposits 1 Interfund payable 129 199 Deferred liabilities 7,262 247 4,068 299 Total liabilities 10,719 493 4,180 845 84 Fund balances (deficits):
Reserved for noncurrent interfund receivable Reserved for land held for resale Reserved for prepaids and other assets 139 11 52 Unreserved
-designated for capital projects Unreserved
-undesignated 7,669 (194) (52) 7,667 2,986 Total fund balances (deficits) 7,808 (183) (52) 7,719 2,986 Total liabilities and fund balances $18,527 $ 310 $4,128 $8,564 $3,070 (continued) 67 CITY OF ANAHEIM Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2005 (In thousands) (continued)
Anaheim Resort Narcotic RedewlcpMznt Maiznisnance Asset HousMing Grants District Forfeitue Set-Aside Total ASSETS Cash and cash equivalents
$ 194 $ 806 $ 481 $ 1,802 $ 6,325 Investments 417 4,632 2,751 10,409 35,825 Accounts receivable, net 23 38 71 Accrued interest receivable 6 43 29 74 309 Notes receivable 18,605 22,621 Interfund receivable 83 83 Due from other governments 1,521 31 80 11,188 Land held for resale, net 9,170 9,170 Prepaids and other assets 503 4 709 Restricted cash and cash equivalents 3,600 3,600 Total assets $2,641 $5,535 $3,261 $43,865 $89,901 LIABIITIES AND FUND BALANCES Liabilities:
Accounts payable $ 861 $ 149 $ 17 $ 769 $ 5,795 Wages payable 21 13 6 35 192 Deposits 225 226 Interfund payable 328 Deferred liabilities 1,988 18,605 32,469 Total liabilities 2,870 162 $ 23 19,634 39,010 Fund balances (deficits):
Reserved for noncurrent interfund receivable 83 83 Reserved for land held for resale 9,170 9,170 Reserved for prepaids and other assets 503 4 709 Unreserved
-designated for capital projects 14,974 14,974 Unreserved
-undesignated (732) 5,373 3,238 25,955 Total fund balances (deficits)
(229) 5,373 3,238 24,231 50,891 Total liabilities and fund balances $2,641 $5,535 $3,261 $43,865 $89,901 68 CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
-Nonmajor Special Revenue Funds Year Ended June 30, 2005 (in thousands)
Gas Tax Commuiommunmmht S r and and Workorce opmct Sovc Storm Drai Roads DowlopneatBlock rat FadIlities Construction Revenues: Property taxes Licenses, fees and permits $ 130 $1,080 $ 91 Intergovernmental revenues 22,957 $2,389 $4,627 1,485 419 Use of money and property 81 138 202 81 Other 176 749 Total revenues 23,344 2,389 5,514 2,767 591 Expenditures:
Current City Attorney 120 Police 1,700 Fire Community Development 2,657 1,542 Planning 1,185 Public Works 1,901 331 Community Services 591 237 Capital outlay 16,222 1,456 483 Debt service: Principal retirement 34 Interest and fiscal agent charges 20 Total expenditures 18,123 2,657 5,138 1,747 814 Excess (deficiency) of revenues over (under) expenditures 5,221 (268) 376 1,020 (223)Other financing sources (uses): Transfers in 55 Transfers out (4,649) (428)Total other financing sources (uses) (4,594) _(428)Net change in fund balances 627 (268) (52) 1,020 (223)Fund balances at beginning of year 7,181 85 6,699 3,209 Fund balances (deficits) at end of year $ 7,808 $ (183) $ (52) $7,719 $2,986 (confined) 6 69 CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
-Nonmajor Special Revenue Funds Year Ended June 30,2005 (in thousands) (continued)
Anaheim Resort Narcotic Roed lomn M t nAsset E Grant District Foreitum Set-Askc Total Revenues: Property taxes $3,329 $ 6,997 $10,326 Licenses, fees and permits 1,301 Intergovernmental revenues $ 5,114 $1,297 38,288 Use of money and property 27 68 78 719 1,394 Other 2 4 1,328 2,259 Total revenues 5,143 3,401 1,375 9,044 53,568 Expenditures:
Current: City Attorney 120 Police 1,643 451 3,794 Fire 422 422 Community Development 5,153 9,352 Planning 1,185 Public Works 23 3,933 6,188 Community Services 104 932 Capital outlay 3,976 499 16 11 22,663 Debt service: Principal retirement 490 524 Interest and fiscal agent charges 87 107 Total expenditures 6,168 4,432 1,044 5,164 45,287 Excess (deficiency) of revenues over (under) expenditures (1,025) (1,031) 331 3,880 8,281 Other financing sources (uses): Transfers in 200 1,850 2,105 Transfers out (290) (3,391) (8,758)Total other financing sources (uses) (290) 200 (1,541) (6,653)net change in fund balances (1,315) (831) 331 2,339 1,628 Fund balances at beginning of year 1,086 6,204 2,907 21,892 49,263 Fund balance (deficits) at end of year $(229) $5,373 $3,238 $24,231 $50,891 70 CITY OF ANAHEIM Combining Balance Sheet Nonmajor Debt Service Funds June 30,2005 (In thousands)
Municipal Redwlopmunt Certficates of Anaheim Rort Impmwenbtm Agenc Participation ImprMM taB Total ASSETS Cash and cash equivalents S 1,200 $ 1,200 Investments 6,737 6,737 Accrued interest receivable
$ 4 293 $ 49 346 Due from other governments 16 320 336 Prepaids and other assets 72 72 Restricted cash and cash equivalents 95 518 181 $11,223 12,017 Restricted investments 552 2,306 5,292 8,971 17,121 Total assets $667 $11,446 $5,522 $20,194 $37,829 LIABUIBS AND FUND BALANCES Liabilities:
Accounts payable $ 1,423 $ 5 $ 1,428 Total liabilities 1,423 5 1,428 Fund balances: Reserved for prepaids and other assets 72 72 Reserved for debt service $667 8,494 5,517 $20,194 34,872 Unreserved
-designated for debt service 1,457 1,457 Total fund balances 667 10,023 5,517 20,194 36,401 Total liabilities and fund balances $667 $11,446 $5,522 $20,194 $37,829 71 CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Debt Service Funds Year Ended June 30, 2005 (n thousands)
Munidpd Redewvlopmnnt Certifiae of Anaheim Raoa Impwwunm Agcopy Partiipadton Impruvemn Total Revenues: Property taxes $758 $ 27,987 $ 28,745 Intergovernmental revenues 8 8 Use of money and property 11 871 S 347 $ 96 1,325 Total revenues 777 28,858 347 96 30,078 Expenditures:
Current Community Development 5,609 5,609 Debt service: Principal retirement 435 3,353 2,721 2,590 9,099 Interest and fiscal agent charges 302 12,452 1,906 22,771 37,431 Total expenditures 737 21,414 4,627 25,361 52,139 Excess (deficiency) of revenues over (under) expenditures 40 7,444 (4,280) (25,265) (22,061)Other financing sources (uses): Transfers in 2,763 4,288 26,064 33,115 Transfers out (24,294) (24,294)Total other financing sources (uses) (21,531) 4,288 26,064 8,821 Net change in fund balances 40 (14,087) 8 799 (13,240)Fund balances at beginning of year 627 24,110 5,509 19,395 49,641 Fund balances at end of year $667 $10,023 $ 5,517 $ 20,194 $ 36,401 72 CITY OF ANAHEIM Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2005 (In thousands)
Mello-Roos Radevelopmant Other capital Anaheim Reort Pjeocta Agmwy Impsomnenta Implummenta Total ASSETS Cash and cash equivalents
$ 1,924 $ 3,866 $ 1,541 $ 7,331 Investments 11,193 22,228 8,858 42,279 Accounts receivable, net 40 40 Accrued interest receivable 62 215 103 380 Notes receivable 9,183 9,183 Interfund receivable 2,639 9,423 12,062 Land held for resale, net 18,696 18,696 Prepaids and other assets 1,001 32 1,033 Restricted cash and cash equivalents 9,671 5,980 1,508 17,159 Total assets $54,409 $41,744 $12,010 $108,163 LIABILITIES AND FUND BALANCES Liabilities:
Accounts payable $ 2,639 $ 1,469 $ 66 $ 4,174 Wages payable 68 12 4 84 Deposits 757 757 Interfund payable 24,290 2,394 26,684 Deferred liabilities 9,183 3,857 13,040 Total liabilities 36,937 7,732 70 44,739 Fund balances: Reserved for noncurrent interfund receivable 2,510 9,423 11,933 Reserved for land held for resale 18,696 18,696 Reserved for prepaids and other assets 1,001 32 1,033 Unreserved
-designated for capital projects 24,557 11,940 36,497 Unreserved
-undesignated (4,735) (4,735)Total fund balances 17,472 34,012 11,940 63,424 Total liabilities and fund balances $54,409 $41,744 $12,010 $108,163 73 CITY OF ANAIEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Capital Projects Funds Year Ended June 30, 2005 (in thousd)Moflo-Row RedOlopma=
Other Capital Anahaem Resort Projeds Agency Impowments Impwanents Total Revenues: Licenses, fees and permits $ 25 S 35 $ 60 Intergovernmental revenues 524 524 Use of money and property $ 2,652 544 293 3,489 Other 1,720 112 59 1,891 Total revenues 4,372 1,205 387 5,964 Expenditures:
Current: Police 14 14 Community Development 13,409 13,409 Planning 104 104 Public Works 124 327 451 Community Services $57 240 297 Convention, Sports and Entertainment 173 173 Capital outlay 17 8,503 8,095 394 17,009 Debt service: Principal retirement 305 305 Interest and fiscal agent charges 580 498 1,078 Total expenditures 74 22,492 9,276 998 32,840 Deficiency of revenues under expenditures (74) (18,120) (8,071) (611) (26,876)Other fimancing sources (uses): Transfers in 25,891 11,081 36,972 Transfers out (6,245) (21) (6,266)Issuance of debt 1,875 5,289 7,164 Total other financing sources (uses) 21,521 16,370 (21) 37,870 Net change in fund balances (74) 3,401 8,299 (632) 10,994 Fund balances at beginning of year 74 14,071 25,713 12,572 52,430 Fund balances at end of year $ -$17,472 $34,012 $11,940 $63,424 74
Internal Service Funds INTERNAL SERVICE FUNDS are used to account for the financing of centralized services to City departments on a cost-reimbursement basis (including depreciation).
GENERAL BENEFITS AND INSURANCE FUND -Established to account for employee compensated absences, retirement and health benefits, and self-insurance programs.MOTORIZED EQUIPMENT FUND -Established to account for motorized equipment used by City departments.
DUPLICATING AND PRINTING FUND -Established to account for central duplicating, printing and mailing services provided to City departments.
INFORMATION SERVICES FUND -Established to account for data processing services to City departments.
OFFICE MAINTENANCE AND EQUIPMENT FUND -Established to account for City office maintenance services and equipment used by City departments.
CITY OF ANAUEIM Combining Statement of Fund Net Assets Internal Service Funds June 30, 2005 (in thousands)
Generd Offie BenefiD Eqplicang Mantenane and Motorized and Inrmation and Inurance Equipment Printing SOMriM Equipment Total ASSETS_ _Current assets: Cash and cash equivalents S 18,031 $ 1,693 $ 161 S 268 S 768 S 20,921 Investments 103,700 9,735 937 1,560 4,476 120,408 Accounts receivable, net 510 20 9 539 Accrued interest receivable 945 III 9 29 41 1,135 Interfwud receivable Inventories 632 632 Prepaids and other assets _F23__ 19 19 Total current assets 123,186 12,210 1,107 1,866 5,285 143,654 Noncurrent assets: Interfind receivable, less current portion 104 104 Restricted cash and cash equivalents
_17 17 Restricted investments 473 473 Unamortized debt issuance costs II 11 Capital assets: Buildings and improvements 3,230 3,373 6,603 Equipment 81 39,221 552 6,229 1,687 47,770 Construction in progress 6,808 58 6,866 Less accumulated depreciation (40) (25,485 (424) (3,127) _,777) (32,853)Capital assets, net 41 16,966 128 9,910 1,341 28,386 Total noncurrent assets 145 17,467 128 9,910 -T9 28,991 Total assets 123,331 29,677 1,23. 5 11,776 6 172,645 LIABIIELESm Current liabilities:
Accounts payable 1,125 2,903 62 1,035 282 5,407 Wages payable 901 77 8 15 70 1,071 Interest payable 44 1 1 46 Compensated absences 16,222 16,222 Self-insurance liability 8,094 8,094 Long-term debt 227 52 168 447 Post retirement employment benefits 7,857 7,857 Unearned revenues 5%9 5%Total current liabilities 34,795 3,251 123 1,219 352 39,740 Noncurrent liabilities:
Self-insurance liability, less current portion 21,826 21,826 Long-term debt, less current portion 1,620 39 1,659 Post retirement employment benefits, less current portion 66,192 66,192 Total noncurrent liabilities 88,018 1,620 39 89,677 Total liabilities 122,813 4,871 162 1,219 352 129,417 FUWD NT ASSETS Invested in capital assets, net of related debt 41 15,130 37 9,742 1,341 26,291 Restrict for debt service 446 446 Unrestricted 477 9,230 1,036 815 4,933 16,491 Total find net assets r_518 $ 24,806 $1,073 $10,557 $'6,274 $ 43,228 75 CITY OF ANAHEIM Combining Statement of Revenues, Expenses and Changes in Fund Net Assets -Internal Service Funds Year Ended June 30, 2005 (in thousands)
Genral Office Benefits Duplicing Maintenance and Motorizod and Information and Insurance Equipment Ptinting Services Equipmont Total Operating revenues: Charges for services $84,357 $ 9,119 $1,739 $ 9,978 $7,782 $112,975 Other 2 4 9 15 Total operating revenues 84,359 9,119 1,739 9,982 7,791 112,990 Operating expenses: Salaries and wages 2,116 3,282 336 409 2,450 8,593 Maintenance and operations 2,201 4,004 1,322 8,595 4,947 21,069 Insurance premiums and claims 11,691 11,691 Compensated absences and other benefits 73,592 73,592 Depreciation 2 2,565 83 1,006 132 3,788 Total operating expenses 89,602 9,851 1,741 10,010 7,529 118,733 Operating income (loss) (5,243) (732) (2) (28) 262 (5,743)Nonoperating income (expenses):
Interest income 2,615 327 27 76 122 3,167 Interest expense (111) (15) (23) (149)Gain (loss) from disposal of capital assets 89 (2) 87 Total nonoperating income 2,615 305 10 53 122 3,105 Income (loss) before capital contributions (2,628) (427) 8 25 384 (2,638)Capital contributions 2,183 2,183 Change in fund net assets (2,628) (427) 8 2,208 384 (455)Fund net assets at beginning of year 3,146 25,233 1,065 8,349 5,890 43,683 Fund net assets at end of year $ 518 $24,806 $1,073 $10,557 $6,274 $ 43,228 76 CITY OF ANABEIM Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2005 (in thousands)
Cash flows fiom opeating activities:
Receipts from interfund services provided Payments to suppliers Payments for salaries and wages to employees Payments for interfimd services used Payments for insurance premiums and claims Payments for compensated absences and other benefits Other receipts (payments)
Net cash provided by operating activities Cash flows fom. noncapital finaning activities:
Payment of interfimd balances Net cash used in noncapital financing activities Cash flows from capital and related financin activities:
Proceeds from sale of capital assets Capital purchases Principal payments of long-term debt Interest payments Net cash used in capital and related financing activities Cash flows from ietng activits Purchase of investment securities Proceeds from sale and maturity of investment securities Interest received Net cash provided by investing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year General Benefits and Insurance$ 84,357 (1,593)(1,799)(855)(7,792)(66,791)17 5,544 368 368 Daplicatings Motorized and Equlpment Printing Offine Mainfenance Informiation and Servics -Equipiaxat Total S 9,119 (1,062)(3,280)(357)(120)4,300$1,739 (944)(336)(440)19$ 9,978 (8,541)(404)(226)4 811 S 7,782 $ 112,975 (4,504) (16,644)(2,434) (8,253)(454) (2,332)(7,792)(66,791)10 (89)400 11,074 368 368 105 (318) (10,250)(485))(153 (318) (10,783)105 (42) (5,831)(213)(42)___ (113)(42) (6,052)(270,771)267,497 3,869 595 6,465 11,566 S 18,031 (24,636)26,320 449 2,133 381 1,329 S 1,710 (18)(86)__(15)(119)(2,269)2,386 26 143 43 118 S 161 (4,041)(186)(4,252)(893)3,972 109 3,188 (253)521$ 268 (11,340)11,398 118 176 258 510$ 768 (309,909)311,573 4,571 6,235 6,894 14,044$ 20,938 (contnued) 77 MY OF ANAHEIM Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2005 (in thousands) (continued)
Geneal office Benefits Diqfficating Maintenance and Motorized and Information and Insurance Equipment Printing Services Equipment Total ReconUiliaon of operating inome (loss) to net cash provided by operating Operating income (loss) S(5,243) S(732) $ (2) $(28) $262 S(5,743)Adjustment to reconcile operating income (loss)to net cash provided by (used in) operating activities:
Depreciation 2 2,565 83 1,006 132 3,788 Changes in assets and liabilities:
Accounts receivable 119 (20) (9) 1 91 Inventories (100) .(100)Prepaids and other assets 30 41 71 Accounts payable (126) 2,544 (62) (163) (11) 2,182 Wages payable 317 2 5 16 340 Unearned revenues 31 31 Compensated absences 1,292 1,292 Self-insurance liability 3,538 3,538 Post retirement employment benefits 5,584 5,584 Total adjustments 10,787 5,032 21 839 138 16,817 Net cash provided by operating activities S 5,544 $4,300 $ 19 $ 811 $400 $11,074 Schedule of noncash investing&
capital and noncapital fiancin activities:
Decrease in fair value of investments S(1,348) $ (128) $(1,476)Transfers in of capital assets $2,183 2,183 Reconciliation of cmah and cash equivalents:
Cash and cash equivalents
$18,031 $1,693 $161 $ 268 $768 $20,921 Restricted cash and cash equivalents 17 17 Total cash and cash equivalents
$18,031 $1,710 $161 S 268 $768 $20,938 78
CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits)
-Budget and Budgetary Basis Actual -Nonmajor Special Revenue Funds Year Ended June 30, 2005 (In thousands)
Gu Tax Workfoion Commuinit Development and Roads Development Block Gant Budget Actual Budget Budgt Atual Revenues: Property taxes Licenses, fees and permits S 200 $ 130 Intergovernmental revenues 55,596 22,957 $3,074 $2,389 $10,092 $4,627 Use of money and property 82 81 68 138 Other 139 176 360 749 Total revenues 56,017 23,344 3,074 2,389 10,520 5,514 Expenditures:
City Attorney 120 120 Police 1,700 1,700 Fire Community Development 3,025 2,657 5,492 1,542 Planning 1,192 1,185 Public Works 55,357 18,123 643 Community Services 816 591 Total expenditures 55,357 18,123 3,025 2,657 9,963 5,138 Excess (deficiency) of revenues over (under) expenditures 660 5,221 49 (268) 557 376 Other financing sources (uses): Transfers in 55 55 Transfers out (4,649) (4,649) (469) (428)Sales on capital assets Total other financing sources (uses) (4,594) (4,594) (469) (428)Net change in fund balances (3,934) 627 49 (268) 88 (52)Fund balances at beginning of year 7,181 7,181 85 85 Fund balances (deficits) at end of year $ 3,247 7,808 $ 134 (183) $ 88 (52)Adjustments to reconcile to GAAP: Purchases of land held for resale Decline in value of land held for resale Proceeds on sale of land held for resale Gain on sale of land held for resale Ending fund balance (deficits)-GAAP basis $ 7,808 $ (183) $ (52)(continued) 79 CITY OF ANABEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits)
-Budget and Budgetary Basis Actual -Nonmajor Special Revenue Funds Year Ended June 30, 2005 (In thou d) (continued)
Community Sewr and Storm Drain Survos Facilitim Constuction Grants Budget ActUa Budget Actual Budget Actual Revenues: Property taxes Licenses, fees and permits $ 1,413 $1,080 $ 240 $ 91 Intergovernmental revenues 8,025 1,485 419 $29,124 $5,114 Use of money and property 61 202 65 81 2 27 Other 2 Total revenues 9,499 2,767 305 591 29,126 5,143 Expenditures:
City Attorney Police 21,215 3,997 Fire 753 631 Community Development 1,000 Public Works 6,502 422 1,208 814 5,705 1,436 Community Services 8,737 1,325 1,014 104 Total expenditures 15,239 1,747 1,208 814 29,687 6,168 Excess (deficiency) of revenues over (under) expenditures (5,740) 1,020 (903) (223) (561) (1,025)Other financing sources (uses): Transfers in Transfers out (245) (290)Sales on capital assets 1,400 Total other financing sources (uses) 1,400 (245) (290)Net change in fund balances (4,340) 1,020 (903) (223) (806) (1,315)Fund balances at beginning of year 6,699 6,699 3,209 3,209 1,086 1,086 Fund balances (deficits) at end of year $ 2,359 7,719 $2,306 2,986 $ 280 (229)Adjustments to reconcile to GAAP: Purchase of land held for resale Decline in value of land held for resale Proceeds on sale of land held for resale Gain on sale of land held for resale Ending fund balance (deficits)-GAAP basis (continued)
$7,719 $2,986 $ (229)80 CIMY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits)
-Budget and Budgetary Basis Actual -Nonmajor Special Revenue Funds Year Ended June 30, 2005 (in thousands) (continued)
Anahalm Resor Maintenance District Budget Actual$3,417 $ 3,329 NarcoAicAne B orMt Acu Budget Actua Redevelopment Housing Set-Aside$Budgt Actual$ 6,767 $ 6,997 Revenues: Property taxes Licenses, fees and permits Intergovernmental revenues Use of money and property Other Total revenues Expenditures:
City Attorney Police Fire Community Development Planning Public Works Community Services Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Sale of capital assets Total other financing sources (uses)Net change in fund balances Fund balances at beginning of year Fund balances (deficits) at end of year Adjustments to reconcile to GAAP: Purchase of land held for resale Decline in value of land held for resale Proceeds on sale of land held for resale Gain on sale of land held for resale Ending fund balance (deficits)-GAAP basis 167 4 3,588 68 4 3,401$1,328 1,328$1,297 78 483 11,400 1,375 18,650 719 4,598 12,314 1,738 1,044 6,552 6,552 (2,964)4,432 4,432 (1,031)1,738 (410)1,044 331 200 200 18,532 18,532 118 303 (2,618)(2,315)(2,197)21,892$19,695 200 (2,764)6,204$ 3,440 200 (831)6,204 5,373 (410)2,907$2,497 331 2,907 3,238 7,462 7,462 4,852 1,850 (3,391)(1,541)3,311 21,892 25,203 3,035 (737)(3,298)28$24,231$ 5,373$3,238 81 CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual -All Debt Service Funds Year Ended June 30, 2005 (in thousands)
Municipal ImpBge Budget Ata Redvelopmvat Agean Budget Acua Certificaot of Pardcipaton Budget A Revenues: Property taxes Intergovernmental revenues Use of money and property Total revenues$739 739$758 8 11 777$ 27,070 739 27,809$27,987 871 28,858 Anaktm Resort Improvwnent Budget Actual$ 96 96 Expenditures:
Finance Police Community Development Public Works Convention, Sports and Entertainment Total expenditures 739 739 737 737 40 Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses)Net change in fund balances Fund balances at beginning of year Fund balances at end of year 21,916 21,916 5,893 2,891 (10,759)(7,868)(1,975)24,110$ 22,135 21,414 21,414 7,444 2,763 (24,294)(21,531)(14,087)24,110$10,023$ 2,031 269 627 1,700 4,627 (4,627)4,627 4,627 5,509$ 5,509$ 347 347 2,031 269 627 1,700 4,627 (4,280)4,288 4,288 8 5,509$ 5,517 25,365 25,361$ 25,365 (25,365)24,946 24,946 (419)19,395$18,976 (25,265)26,064 26,064 799 19,395$ 20,194 25,361 40 627$627 627 S667 82 CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Budgetary Basis Actual -All Capital Projects Funds Year Ended June 30, 2005 (in thousands)
M6U1-Roos B Pud octs Budget Actual Radeviuopmcnt Agency -Budget Actual Othe capital Implummenta Budget Ata Revenues: Licenses, fees and permits Intergovernmental revenues Use of money and property Other Total revenues Expenditures:
Police Community Development Planning Public Works Community Services Convention, Sports and Entertainment Total expenditures Deficiency of revenues under expenditures Other financing sources (uses): Transfers in Transfers out Issuance of debt Total other financing sources (uses)Net change in fund balances Fund balances at beginning of year Fund balances at end of year Adjustments to reconcile to GAAP: Purchases of land held for resale Decline in value of land held for resale Proceeds on sale of land held for resale Loss on sale of land held for resale Ending fund balance-GAAP basis$ 1,843 6,900 8,743 37,624$ 2,652 2,023 4,675 18,891$ 800 395 25 1,220 5,300 815$ 74$ 74 37,624 (28,881)21,271 3,672 18,891 31,058 (14,216) (29,838)$ 25 524 544 112 1,205 964 803 7,191 318 9,276 (8,071)11,081 5,289 16,370 8,299 25,713 34,012 (74)(74)Anaheims Resort Improvements Budgt Actual$ 35 293 59 387$ 125 751 841 1,717 (1,717)(1,717)12,572$10,855 13,857 (74)74$-(74)74 13,857 (15,024)14,071$ (953)25,891 (6,245)1,875 21,521 7,305 14,071 21,376 1,426 (5,024)(303)$17,472 9,523 (2,500)7,789 14,812 (15,026)25,713$10,687 104 721 173 998 (611)(21)(21)(632)12,572 11,940$11,940$34,012 83 (This page left blank intentionally) 84 CITY OF ANAHEIM Capital Assets Used in the Operation of Governmental Funds Schedule by Source June 30,2005 (in thousands)(With comparative totals for June 30, 2004)2005 2004 Governmental funds capital assets: Land $ 495,006 $ 490,917 Buildings, structures and improvements 214,399 212,820 Machinery and equipment 31,298 26,529 Infrastructure 713,165 705,956 Construction in progress 39,239 16,013 Total governmental funds capital assets $1,493,107
$1,452,235 Investments in governmental funds capital assets by source: General Fund $ 50,087 $ 50,566 Special revenue funds 1,153,451 1,133,043 Capital projects funds 154,400 138,129 Contributed capital 135,169 130,497 Total investments in governmental funds capital assets by source $1,493,107
$1,452,235 85 CITY OF ANAHEIM Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activity June 30, 2005 (In thousands)
General government:
City Administration City Attorney City Clerk Human Resources Finance City Treasurer General government buildings Total general government Public safety: Police Fire Total public safety Community Development Planning Public Works Community Services Convention, Sports and Entertainment Total governmental funds capital assets Buldinaa Machine Structunn and and Land Impmowents Equipment$ 142 250 6 17 80 9 Const ion, in Total Ianfrestructum Progms 2005$ 142 250 6 17 80 9 14,997 15,501$ 1,120 1,120 2,577 3,086 5,663 43,551 396,764 24,549 23,359$495,006$ 13,871 6 13,871 510 23,027 8,377 31,404 36,985 1,962 39,858 90,319$214,399 11,632 1,877 13,509 209 215 3,751 3,588 9,516$31,298$713,165 S 974 70 1,044 7,213 26,143 4,748 91$39,239 38,210 13,410 51,620 87,958 215 1,141,785 72,743 123,285$1,493,107
$713,165 86 CITY OF ANAHEIM Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function and Activity Year Ended June 30, 2005 (in thousands)
General government City Administration City Attorney City Clerk Human Resources Finance City Treasurer General government buildings Total general government Public safety: Police Fire Total public safety Community Development Planning Public Works Community Services Convention, Sports and Entertainment Total governmental funds capital assets Bala=ce at July , 2004$ 99 250 6 17 80 9 14,997 15,458 37,501 13,517 51,018 79,516 289 1,117,768 67,582 120,604$1,452,235 Addios S 43 RetawmwAt and tlansfem not Balane at June 30,2005$ 142 250 6 17 80 9 14,997 15,501 43 1,297 393 1,690 8,473 28,191 6,034 3,817$48,248$ 588 500 1,088 31 74 4,174 873 1,136$ 7,376 38,210 13,410 51,620 87,958 215 1,141,785 72,743 123,285$1,493,107 87 CITY OF ANAHEIM Statement of Changes in Fiduciary Assets and Liabilities Agency Fund -Mello-Roos Year Ended June 30, 2005 (i thousands)
Beginning Ending Balane Additioaw Deduction Balawe ASSETS Restricted cash and cash equivalents
$2,507 $2,839 $(1,792) $3,554 Due from other governments 47 2,830 (2,834) 43 Total assets $2,554 $5,669 $(4,626) $3,597 LIABuxT1BS Due to bond holders $2,554 $5,669 $(4,626) $3,597 88
Statistical Section The Statistical Section is included to provide detailed data on the physical, economic, social and political characteristics of the reporting government.
It is intended to provide the user with a broader and more complete understanding of the government and its financial affairs than is possible from the basic financial statements and supplementary information included in the Financial Section.
CITY OF ANABEIM General Governmental Expenditures by Function Last Ten Fiscal Years (In thousands)(Unaudited)
Fiscal General Public Community Year Govonument Safety Development Convention, Public CommMui Public Sports and Works Services Utilities Entertainment 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005$13,540 9,011 18,234 13,512 12,394 12,926 12,403 12,823 11,370 12,276$ 83,506 82,608 85,009 88,519 91,268 95,967 102,925 110,202 110,633 130,711$52,826 42,377 48,058 45,469 43,848 67,493 72,492 91,933 87,778 83,384 Plannin$ 6,382 6,996 7,702 9,096 9,471 10,145 10,463 10,285 11,904 12,313$ 29,836 49,117 76,404 129,406 126,700 72,964 37,377 21,425 25,224 22,248$13,791 19,822 20,912 22,526 22,949 24,296 26,011 25,938 25,203 25,724$1,699 3,039 3,532 3,530 4,286 2,612 2,651 1,811 1,566 1,557$ 334 4,605 6,482 6,322 6,246 6,738 6,003 4,677 5,353 5,140 capital Outla and Debt Service$ 27,217 36,876 93,475 125,790 107,419 75,919 81,188 87,231 80,216 90,116 Total$229,131 254,451 359,808 444,170 424,581 369,060 351,513 366,325 359,247 383,469 NOTE: Includes all governmental fund typs.Source: City Finance Department General Governmental Revenues by Source Last Ten Fiscal Years (in thousands)(Unaudited)
Transient Fiscal Property Sales and Occupancy Year Taxes Use Taxes Taxes 19%1997 1998 1999 2000 2001 2002 2003 2004 2005$34,854 38,000 39,492 41,131 49,478 53,860 53,018 57,151 60,563 81,949$37,676 40,068 42,214 43,210 46,915 50,733 52,368 54,066 55,409 59,976$44,703 44,992 44,767 45,155 46,183 58,112 57,780 56,199 63,268 67,141 Other Taxes$4,742 5,247 5,492 5,755 5,831 6,365 6,460 6,570 7,095 7,542 Feew and Permits$11,858 11,764 15,677 23,110 16,298 16,299 15,806 15,731 15,578 18,749 Race, Forfeits and Penlties$1,583 1,518 1,556 2,807 3,187 3,118 2,769 2,673 2,812 3,454 Intel-governmental
$ 61,914 65,088 78,617 74,225 82,186 85,500 104,434 107,973 108,673 101,447for Miscellaneous Services RDveu$14,208 21,127 11,515 10,851 10,575 11,712 14,299 14,569 15,241 12,130$13,825 16,258 35,912 30,700 36,099 21,350 18,532 15,790 11,898 15,287 Total$225,363 244,062 275,242 276,944 296,752 307,049 325,466 330,722 340,537 367,675 NOTE: Includes all governmental fund types.Source: City Finance Department 89 CITY OF ANAHEIM Assessed Values of All City Property Last Ten Fiscal Years (In thousands)(Unaudited)
Percent Fiscal Common AwsedFu Incrase Year Pnlpexty Public Utility Unecured Madket Valuation (eea)1996 $13,467,399
$12,304 $ 868,647 $14,348,350 (1)%1997 13,506,138 13,557 816,859 14,336,554
-1998 13,690,399 15,235 937,993 14,643,627 2 1999 14,216,632 13,546 1,040,586 15,270,764 4 2000 15,025,480 15,623 969,070 16,010,173 5 2001 16,348,803 13,432 1,141,173 17,503,408 9 2002 18,376,992 12,050 1,086,486 19,475,528 11 2003 20,136,261 9,503 2,641,697 22,787,461 17 2004 20,816,660 9,572 1,287,967 22,114,199 (3)2005 22,278,532 9,971 1,162,358 23,450,861 6 Source: Orange County Assessor's Office Current Tax Levies and Tax Collections Last Ten Fiscal Years (in thousands)(Unaudited)
Total Total Percent of Fiscal Current Current Levy Year Levy Collection Collected 1996 $19,471 $19,379 99.5%1997 19,291 18,905 98.0 1998 19,854 20,338 102.4 1999 19,333 19,850 102.7 2000 24,915 24,690 99.1 2001 26,860 26,661 99.3 2002 29,203 28,690 98.2 2003 32,856 32,554 99.1 2004 32,326 31,923 98.8 2005 30,868 49,915 161.7 NOTE: The increase in fiscal year 2000 and subsequent years is primarily due to the formation of the Anaheimn Resort Maintenance District.The increase in Total Current Collection in fiscal year 2005 is due to the effect of shifting revenue from the VLF category to the property tax category, part of the State of California 2004 budget act Sources: City Finance Department and Orange County Assessors Office 90 CITY OF ANAHEIM Property Tax Rates -All Direct and Overlapping Governments Last Ten Fiscal Years (Per $100 Assessed Valuation)(Unaudited)
Fisnal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Basic County, city, school Levy 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 City 0.0041 0.0049 0.0047 0.0045 0.0038 0.0038 0.0035 0.0029 0.0035 0.0030 Ornge county 0.0001 0.0001 Elementary School District 0.0285 0.0250 0.0264 High North Metropolitan School Orange County Flood District Community College Control 0.0257 0.0237 0.0277 0.0157 0.0159 0.0144 0.0004 Water District 0.0089 0.0089 0.0089 0.0089 0.0088 0.0088 0.0077 0.0067 0.0061 0.0058 Total 1.0135 1.0139 1.0136 1.0134 1.0126 1.0126 1.0112 1.0795 1.0742 1.0773 NOTE: Based upon a "representative" tax rate area Source: Orange County Auditor/Controller's Office Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures Last Ten Fiscal Years (in thousds)(Unaudited)
Fiscal Year Principal 1996 S215 1997 225 1998 245 1999 270 2000 315 2001 330 2002 355 2003 390 2004 400 2005 435 NOTE: Includes all governmental fund types.Source: City Finance Department Interest$488 473 456 438 419 396 373 345 322 302 Total Debt Service$703 698 701 708 734 726 728 735 722 737 Total General Governmental Expenditures
$229,131 254,451 359,808 444,170 424,581 369,060 351,513 366,325 359,247 383,469 Ratio of Debt Service to General Governmental Expeaditures 0.3%0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 91 CITY OF ANAHEIM Schedule of Direct and Overlapping Bonded Debt (In thousands)(Unaudited) 9MM11= % Applicable Bonded Debt DIRECTADOVRAPNTAADASSSHT Orang County Teete Plan Obligations 1.359% S 10,342 Metropolitan Water District 1.763 7,394 North Orange Joint Community College District 28.851 71,185 Rawnh Santiago Community College District 15.520 33,012 Anaheim Union High School District 70.809 84,127 Placentia -Yorba Linda Unified School District 12.109 11,833 Anaheim School District 99.805 61,942 Magnolia School District 76.167 7,487 Other School Districts Various 2,587 City of Anaheim 100.000 6,625 City of Anaheim Community Facilities Districts 100.000 17,830 Orange Unified School District Community Facilities Districts 100.000 9,905 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT S 324,269 DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT: Orange County General Fund Obligations 8.359% S 73,267 Orange County Pension Obligations 8.359 9,343 Orange County Board of Education Certificates of Participation 8.359 1,663 Orange County Transit Authority 8.359 310 Orange County Sanitation District Certificates of Participation 11.399 16,224 Municipal Water District of Orange County Water Facilities Corporation 0.002 1 Yorba Linda County Water District Ctifcates of Participation 1.094 115 Orange Unified School District Certificates of Participation 30.457 15,934 Placentia-Yorba Linda Unified School District Certificates of Participation 12.109 636 Anaheim Union High School District Certificates of Participation 70.809 28,929 Fullerton Joint Union High School District Crtificates of Participation 0.297 11 Centalia School District Cartificates of Participation 12.436 443 Fullerton School District Certificates of Participation 0.074 6 City of Anaheim General Fund Obligations 100.000 669,383 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT 816,265 Less: Orange County Transit Authority (80% self-supporting) 248 City of Anaheim Convention Center, Stadium Inc., and Parking Facilities Certificates of Participation (100% self-supporting) 106,684 City of Anaheim Public Financing Authority (100% selfsupporting) 529,522 MWDOC Water Facilities Corporation (100% self-supaorting)
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 179,810 GROSS COMBINED TOTAL DEBT $1,140,534 (I)NET COMBINED TOTAL DEBT S 504,079 (1) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and tax allocation bonds and non-bonded capital lease obligations.
Ratios to 2005 Assessed Valuationr Direct Debt ($6,625) 0.03%Total Direct and Overlapping Tax and Assessment Debt 1.22%Ratios to AdiusteAlAssssd AValaion Gross Combined Direct Debt ($676,008) 2.88%Net Combined Direct Debt ($39,801) 0.17%Gross Combined Total Debt 4.86%Net Combined Total Debt 2.15%State Scdnl Building_
Aid Renayable as of 6/30/051 $0 92 Source: California Municipal Statistics, Inc.
CITY OF ANAHEIM Schedule of Debt Ratios Last Ten Fiscal Years (in thousands)(Unaudited)
Fisnd Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Net Geond Bonded Debt$ 9,590 9,365 9,120 8,850 8,535 8,205 7,850 7,460 7,060 6,625 Amaessed Valuation$14,348,350 14,336,554 14,643,627 15,270,764 16,010,173 17,503,408 19,475,528 22,787,461 22,114,199 23,450,861 Ratlo to Assessed Valuation.07%.07.06.06.05.05.04.03.03.03 Populaidon 293 295 301 306 328 330 335 337 343 345 Net Genad Bonded Debt Per Capita S32.73 31.75 30.30 28.92 26.02 24.86 23.43 22.14 20.58 19.20 Source: City Finance Department Statement of Legal Debt Mari June 30, 2005 (in thousands)(Unaudited)
Assessed Valuation Charter Debt Limit 15% of Assessed Valuation Amount of Debt Applicable to Limit Legal Debt Margin Percent of Charter Debt Limit Authorized and Issued Source: City Finance Department
$23,450,861
$ 3,517,629 6,625$ 3,511,004.19%93 CITY OF ANAHEIM Schedule of Revenue Bond and Certificates of Participation Coverage Electric Utility Fund (In thousands)(Unaudited)
Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Grow$253,548 249,135 251,929 262,336 287,132 345,615 308,329 280,471 295,988 297,443 Dhvd$180,594 196,242 191,306 194,012 205,699 292,395 238,124 216,841 232,050 218,562 Net Rownue Available for Debt Service$72,954 52,893 60,623 68,324 81,433 53,220 70,205 63,630 63,938 78,881 Debt Service RAquirementa Interest$12,704 13,490 17,716 18,543 15,462 15,731 14,779 15,566 14,840 15,875$19,117 17,218 16,125 18,356 18,082 17,586 16,450 22,625 20,102 24,780 Total$31,821 30,708 33,841 36,899 33,544 33,317 31,229 38,191 34,942 40,655 Coverage 2.3 1.7 1.8 1.9 2.4 1.6 2.2 1.7 1.8 1.9 NOTES: (1) Gross revenue includes operating revenue plus interest income.(2) Direct operating expenses includes operating expenses less depreciation and amortization.
Source: City Public Utilities Department Schedule of Revenue Bond Coverage Water Utility Fund (In thousands)(Unaudited)
Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Grow Revenue (1)$37,603 38,966 37,640 40,489 43,539 43,995 43,944 43,669 44,659 44,484 Direct Operating$24,471 24,240 22,670 26,900 30,193 26,479 31,103 29,775 35,602 33,312 Net Renwue Available for Debt Service$13,132 14,726 14,970 13,589 13,346 17,516 12,841 13,894 9,057 11,172 Debt Service Requit"mets Principal$1,055 1,120 1,180 1,260 1,330 1,400 1,465 1,540 1,625 1,340 Intelet$2,440 2,379 2,313 2,234 2,166 2,094 990 906 819 485 Total$3,495 3,499 3,493 3,494 3,496 3,494 2,455 2,446 2,444 1,825 Coverage 3.8 4.2 4.3 3.9 3.8 5.0 5.2 5.7 3.7 6.1 NOTES: (1) Gross revenue includes operating revenue plus interest income.(2) Direct operating expenses include operating expenses less depreciation and amortization.
Source: City Public Utilities Department 94 CITY OF ANAHEIM Schedule of Revenue Bond and Certificates of Participation Coverage Convention, Sports and Entertainment Venues Fund (n thousands)(Unaudited)
Fiscal Yeao 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Gross Revmae (1)$39,771 35,027 31,646 29,873 33,335 40,435 38,638 41,947 43,802 42,243$20,174 17,620 15,309 13,636 15,248 17,479 18,430 22,174 22,981 25,555 Net Raevnue Available for Debt Service Debt Service Requitements Interest$19,597 17,407 16,337 16,237 18,087 22,956 20,208 19,773 20,821 16,688$5,699 5,947 6,285 6,482 6,784 7,179 6,994 7,126 7,585 5,862$10,878 10,560 10,226 9,870 9,497 9,100 8,698 7,525 7,661 9,061 Total$16,577 16,507 16,511 16,352 16,281 16,279 15,692 14,651 15,246 14,923 Coverage 1.2 1.1 1.0 1.0 1.1 1.4 1.3 1.3 1.4 1.1 NOTES: (1) Gross revenue includes operating revenue, interest income, allocated transient occupancy taxes (transfer), and beginning in 1996, debt service recovery.(2) Direct operating expenses include operating expenses less depreciation and amortization.
Source: City Finance Department 95 CITY OF ANAHEIM Demographic Statistics June 30,2005 City of Anahoimu School Square Median Enrollment MiE Age (000)Median Buying Inoome Per Household ($000)Year 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004 2005 3.70 3.70 3.70 3.70 3.70 4.40 27.34 33.10 42.05 45.03 49.79 49.79 49.79 49.80 49.90 49.90 Population (000)3 6 11 11 15 104 167 219 266 328 330 335 337 343 345 AMange Annual Population Percent Change 20.0%10.0 8.3 3.6 59.3 6.1 3.1 2.1 2.3.6 1.5.6 1.8 0.6 Orange County Population (000)20 34 61 119 131 216 704 1,420 1,932 2,411 2,846 2,880 2,939 2,979 3,017 3,057 city Population Percent of County 5.0%/o 8.8 9.8 9.2 8.4 6.9 14.8 11.8 11.3 11.0 11.5 11.5 11.4 11.3 11.4 11.3 Rank in Sin, of califomia cities 51 66 42 44 N/A 68 12 8 8 9 10 10 10 10 10 10 Orag County Unemployment Rate 4.3%2.4 2.8 3.0 4.0 4.0 3.6 3.9 29.0 34.0 30.3 30.3 30.3 30.3 30.3 32.3 25 35 62 62 63 63 65 64$25 33 43 48 49 41 42 42 NOTE: Statistics pertaining to Median Age, School Enrollment, Buying Income per Household
& Orange County Unemployment Rate prior to 1980 are not available.
Public School Enrollment includes grades Kindergarten through Sixth, Junior High School and High School.Source: U.S. Bureau of Census, California Department of Finance, State of California Employment Development Department, Sales & Marketing Management Survey of Buying Power, Center for Demographic Research, California State University, Fullerton, City Planning Department 96 CrrY OF ANAHEIM Construction and Bank Deposit Activity Last Ten Fiscal Years (in thousds)(Unaudited)
Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Number of Permits Ise 5 4 5 5 4 5 4 5 5 3 Percent Change 25%(20)25 (20)25 (20)25 Estimated Valuation$191,556 227,413 337,638 491,296 214,862 255,042 205,750 202,114 190,488 228,374 Perent Chauge 13%19 48 46 (56)19 (19)(2)(6)20 Bank Deposits$2,320,273 2,431,086 2,407,659 2,859,583 2,973,078 3,197,393 3,599,527 4,121,197 5,900,644 Percent Change (12)%5 (1)19 4 7 13 14 43 (40)NOTE: Bank deposit statistics for 2005 are not available at the present time.Source City of Anaheim Planning and Building Divisions and the Findley Reports on California Financial Institutions.
Principal Taxpayers (in thousands)(Unaudited)
Taxpoer Walt Disney World Company Allstate Life Insurance Company Reef America REIT II Pan Pacific Retail Boeing North America Angeli LLC Joan M TR Schlund Lennar Platinum Triangle OTR Fairfield Resorts, Inc.Type of Buuimas Family Recreation Insurance Industry Property Management Property Management Aircraft and Navigation Systems Anaheim Marriott Hotel Ground Lessor Property Management Pension Fund (Ohio Teachers Retirement)
Timeshare Apartments 2005 Full Market Valuation of Poperty$3,169,133 111,282 108,431 87,518 82,683 73,773 72,414 70,501 66,763 59,102$3,901,600 Percent of 2005 Total City Full Market Valuation 13.51%0.47 0.46 0.37 0.35 0.31 0.31 0.30 0.28 0.25 16.61%Sources: Orange County Assessor's Office and City Finance Department 97 CITY OF ANAHIMM Schedule of Insurance in Force June 30,2005 (Unaudited)
Name of Company PROPERTY Lexington Insurance Co.(Lead Underwriter)
Lexington Insurance Co.(Lead Underwriter)
BONDS Hartford Fire Insurance Co.Hartford Fire Insurance Co.Policy Number RKMI03900344 RKMI03900344 Policy Prod 7/1/04-7/1/05 7/I/04-7/1/05 Type ofCofrage All Risk Blanket Property, including Flood Boiler and Machinery$750,000,000 All-Risk Property$50,000 All Risk Property Ded.S250,000 Flood Deductible (A&Z)$100,000 Flood Deductible (other)$100,000,000 per Accident (includes Business Interruption/
Extra Expense) Deductibles vary Great American West Insurance LIABILITY Authority for California Cities Excess Liability/Insurance Company of the State of Pennsylvania/
Lexington Insurance Company/Axis Specialty Insurance/Arch Specialty Insurance Energy Insurance Mutual (Utility Department only)72B5BCW5216 72BSBCT'9180 GVT375664004 ACCO405ANAIOI 8/9/04-8/9/05 7/1/04-7/1/05 7/!/04-7/1/05 7/1/04-7/1/05 Public Officials (Finance Director)Public Officials (City Treasurer)
Commercial Blanket Bond, Commercial Crime Excess Comprehensive General/Auto/Public Officials Liability Excess Comprehensive General and Auto Liability Helicopter Liability (Aviation)
Heliport Liability (Airport)Excess Workers! Compensation
$100,000$100,000$5,000,000 Faithful Performance Blanket Bond$250,000 Loss Inside/Loss Outside$2,000,000 Depositors Forgery$5,000,000 Computer Fraud$42,000,000 Excess of $1,000,000 Self-Insured Retention$25,000,000 Excess of $43,000,000 Underlying
$50,000,000 per Occurrence
$20,000,000 per Occurrence
$75,000,000, Excess of $1,000,000 Self-Insured Retention Old Republic Insurance Group Old Republic Insurance Group WORKEIRS' COMPBNSATION Authority for California Cities Excess Liability 501435-03GL HL 000706-01 ORPR00230901 CPEIA04EWC-04 12/31/04-7/1/05 6/30/04-6/30/05 6/30/04-6/30/05 7/1/04-7/1/05 Source: Finance Department-Risk Management Division 98 CITY OF ANAEDM Miscellaneous Statistical Information (Unaudited)
Founded-October5, 1857-January 14,1965 Charter City approved by State Legislature and became effective Government
-Council-Manager Form Municipal Water Plant-63,500,000 Gallons Daily Average Distribution 94,000,000 Gallons Peak Daily Distribution 7,848 Hydrants 133,035 Gallons per Minute: System Supply Capacity 747 Miles of Mains 62,205 Customers Municipal Electric Plant-110,635 Customers 1,490 Circuit Miles of Line 1,860,204 KVA Distribution Capacity Police Protection
-4 Stations 572 Full-time Employees 94 Part-time Employees-12 Stations 279 Full-time Employees 18 Part-time Employees Fire Protection Sources: City Finance and Public Utilities Departments and City Manager's Office 99 CITY OF ANAHEIM PARKS 1. HANSEN PARK 1300 S. Knott St 2. REID PARK 3100 W. Orange Ave.3. SCHWEITZER PARK 238 S. Bel Air SL 4. MAXWELL PARK 2660 W. Orange Ave.5. PETER MARSHALL PARK 801 N. Magnola Ave.6. BROOKHUPRST COMMUNITY PARK 2271 W. Creeent Ave.7. JOHN MARSHALL PARK 2066 Falimouth Ave.I. MODJESKA PARK 1331 S. Nutwood St.9. CLARA BARTON PARK 1926 Clearbiook Ln.10. CHAPARRAL PARK 1770 2. Broadway 11. WILLOW PARK 1625 W. Crone Ave.12. PALM LANE PARK 1595 Peals Rd.13. SAGE PARK 1313 Lido PL 14. STODDARD PARK 901 S. Ninth St 15. MANZANITA PARK 1260 Riaere St 16. LA PALMA PARK & STADIUM 1161 La Palms Park Way 17. PEARSON PARK 400 N. Harbor Blvd 18. LIMTLE PEOPLES PARK 220 W. Elm St 19. JULIANNA PARK 309 E. Julans St.20. GEORGE WASHINGTON PARK 2502 E Cypress St.21. COLONY PARK 210 E. Lincoln Ave.22. WALNUT GROVE PARK 905 S. Anaheim Blvd.23. CITRUS PARK 104 S. Atchison St 24. PONDEROSA PARK 2100 S. Hlestr St 25. LINCOLN PARK 1440 E. Licoln Ave.28. EDISON PARK 1145 Baxer St 27. BOYSEN PARK 951 State Colleg Blvd.25. JUAREZ PARK 841 S. Sunlst St.29. PIONEER PARK 2566 .UnderMl Ave.30. RIO VISTA PARK 201 N. Parkvisa St 31. OLIVE HILLS PARK 4200 NoN Ranch Rd.32. RIVERDALE PARK 4645 2. RIlverdale Ave.33. PERALTA CANYON PARK 115 N. Pbmey or.34. PELANCONI PARK 222 .Avwnlda Margaits 38. IMPERIAL PARK 450 S. Hwy.36. EUCALYPTUS PARK 100 N. Qulnlana Dr.37. OAK PARK 6400 E. NoN Ranch Rd.38. YORSA REGIONAL PARK 7600 E. La PaIlm Ave.38. OAK CANYON NATURE CENTER 6700 Wakrit Canyon Rd.40. SYCAMORE PARK 8268 Monte Vista Rd.41. CANYON RIM PARK 730 E. Canyon Rim Rd.42. WEIR CANYON REGIONAL PARK 43. TOYON PARK 945 S.WeWr Canyon Rd.44. CHINO HILLS STATE PARK 4195 Chino Hills Parkway Chino Kitls, CA 91709 100
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