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1996-1997 CAFRCITY OF CHINO HILLS CALIFORNIA CFFY OF CHINO HILLS I N C O R P O R A T E D 1 9 9 1 COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 1997 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 309 1997 CITY OF CHINO HILLS CALIFORNIA CITY OF CHINO HILLS I N ICORPORATED 1991 Prepared By: City of Chino Hills Finance Department INTRODUCTORY SECTION CITY OF CHINO HILLS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 1997 TABLE OF CONTENTS Page INTRODUCTORY SECTION Table of Contents Letter of Transmittal vii Organizational Chart X,i City Officials xvii Certificate of Achievement for Excellence in Financial Reporting xviii FINANCIAL SECTION Independent Auditors' Report General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups 2 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types 6 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types 8 Combined Statement of Revenues, Expenses, and Changes in Retained Earnings - All Proprietary Fund Types 12 Combined Statement of Cash Flows - All Proprietary Fund Types 14 Notes to Financial Statements 16 Combining, Individual Fund and Account Group Statements and Schedules General Fund Comparative Balance Sheets 48 Comparative Statements of Revenues, Expenditures, and Changes in Fund Balance 49 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 50 iii TABLE OF CONTENTS (Continued) cv Page All Special Revenue Funds Combining Balance Sheet 54 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 58 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 62 Debt Service Fund Comparative Balance Sheets 74 Comparative Statements of Revenues, Expenditures, and Changes in Fund Balance 75 All Capital Projects Funds Combining Balance Sheet 78 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 80 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 82 All Enterprise Funds Combining Balance Sheet 88 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings 91 Combining Statement of Cash Flows 92 All Internal Service Funds Combining Balance Sheet 96 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 97 Combining Statement of Cash Flows 98 cv TABLE OF CONTENTS (Continued) V Page All Agency Funds Combining Balance Sheet 100 Combining Statement of Changes in Assets and Liabilities 104 Comparative Schedules of General Fixed Assets 112 Comparative Schedules of General Long -Term Debt 113 STATISTICAL SECTION Last Six Fiscal Years General Governmental Revenues by Source 116 General Governmental Expenditures by Function 116 Secured Property Tax Levies and Collections 117 Assessed and Estimated Actual Values of Taxable Property 117 Property Value, Construction and Bank Deposits 118 Property Tax Rates - All Direct and Overlapping Governments 118 Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds 119 Principal Taxpayers 120 Miscellaneous Statistics 121 V This page intentionally left blank. vi January 28, 1998 CITY OF CHINO HILLS 2001 GRAND AVENUE CHINO HILLS, CALIFORNIA 91709-4869 (909) 590-1511 • (909) 590-5646 FAX The Honorable Mayor and City Council City of Chino Hills, California CITY COUNCIL: ED M. GRAHAM GARY G. LARSON GWENN E. NORTON -PERRY JAMES S. THALMAN MICHAEL G. WICKMAN The Comprehensive Annual Financial Report for the City of Chino Hills for the fiscal year ended June 30, 1997, is hereby presented by the City's Finance Department. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner that presents fairly the financial position and results of operations of the various funds, account groups, and component units of the City of Chino Hills. All disclosures necessary to enable the reader to gain an understanding of the City of Chino Hills's activities have been included. The Comprehensive Annual Financial Report is presented in three sections: introductory, financial, and statistical. The introductory section, which is unaudited, includes this transmittal letter, an organizational chart, and a list of the City of Chino Hills' principal elected and appointed officials. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the independent auditors' report on these general purpose financial statements. The statistical section, which is unaudited, includes selected financial and demographic information, generally presented on a multi-year basis. THE REPORTING ENTITY AND ITS SERVICES The financial reporting entity (the government) includes all the funds and account groups of the City of Chino Hills as well as its component unit, the Chino Hills Capital Improvement Corporation. A component unit is a legally separate entity for which the primary government (the City of Chino Hills) is financially accountable. The City of Chino Hills provides a full range of services including: police protection (via contract with the County of San Bernardino's Sheriffs Department); solid waste disposal services (via contract with USA Waste Disposal); the construction and maintenance of streets and infrastructure; economic development; recreational activities and cultural events. Fire protection services are provided by the Chino Valley Independent Fire District, an entity governed by its own independently elected board of directors and financed by its own share of property taxes, contractual charges, and other fees. Vii City of Chino Hills Transmittal Letter (Continued) CHINO HILLS - A BRIEF PROFILE The City of Chino Hills was incorporated in December 1991 as a general law City and operates under the Council -Manager form of government. The City, located in southwestern San Bernardino County, has a population of 51,471 and has a land area of 46 square miles. The City is governed by a non-partisan five member council elected to serve staggered four year terms. The City elections are consolidated with the Statewide general election held in November of even numbered years. The City Council appoints the City Manager, City Clerk, and City Attorney as well as members of various commissions and citizen advisory groups ensuring a broad base of citizen input into the City's decision making process. Since its incorporation, the City continues to grow and is one of the few areas in Southern California in which significant numbers of single family residential units are still being constructed. The City is one of the largest master -planned communities in Southern California and, at build -out, is expected to have about 85,000 residents. A comprehensive financial plan was developed to fund all necessary infrastructure required for new residential and commercial development. Through the use of special assessment districts as well as benefit assessment districts and development fees, funds were made available for the installation of parks, infrastructure, and government facilities, and the maintenance of the City's open space, parks, and landscaped areas. The City has developed a reputation for being a family oriented community with significant amounts of recreation opportunities for its adults and youths. The City was also recently recognized as one of the safest communities in Southern California. ECONOMIC CONDITION AND OUTLOOK The economic condition of the area in which the City is located (southwestern San Bernardino County) has stabilized and it is expected to slightly improve in the near future. The Southern California economy has been in the doldrums for several years but forecasts indicate that improvements can be expected in the next few years. Generally, the home-building industry has recovered from its slump. One of the bright spots for this industry is Chino Hills, which is a current "hot spot" for residential construction. Over 1,000 building permits were issued for new residential units in the 1996-97 fiscal year and it is estimated that at least 1,200 permits will be issued in the 1997-98 fiscal year. Additionally, the City is aggressively seeking commercial economic development within the City. A number of retail commercial sites are available for development and the City's Economic Development Manager is actively marketing these sites. At this time, the City is primarily a "bedroom community" with very little commercial and industrial businesses. Viii City of Chino Hills Transmittal Letter (Continued) MAJOR INITIATIVES AND ACCOMPLISHMENTS The major initiatives and accomplishments for the 1996-97 fiscal year include the completion of the City's "Vision" process which included the establishing of the City's mission statement, the pursuit of one major and several minor national retail tenants for various commercial sites, and the completion of the Phillips Ranch Road bridge. Other major accomplishments include the completion of the design and the implementation of upgrades at various City Parks, and the major renovation of landscaped areas within several Landscaping and Lighting District zones. The major future initiatives that the City will undertake includes the completion of a long term financial plan, develop a revenue enhancement program, update the development impact fees, implement a revised development standards and design review guidelines, complete the equestrian center master plan, and complete municipal services privatization study. Future major capital projects include Chino Avenue widening, Soquel Canyon/Central Avenue bridge, Community Park expansion, Rincon storm drain channel installation, and development of potable water sources. FINANCIAL INFORMATION Accounting System and Budgetary Controls. Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City 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 generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgments by management. In addition, the City maintains budgetary controls. The objective of these controls 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, and capital projects 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 department level within an individual fund. Open encumbrances are reported as reservations of fund balance at the end of a fiscal year. Appropriations for outstanding encumbrances lapse at the end of a fiscal year and are rebudgeted as of July 1 in the next fiscal year. cx City of Chino Hills Transmittal Letter (Continued) The following schedule presents a summary of general fund, special revenue funds, debt service funds, and capital projects funds' revenues for the fiscal year ended June 30, 1997, and the amount and percentages of increases and decreases in relation to prior year revenues. Dollar amounts are expressed in thousands. Total Revenues $39.198 100.00 $9.352 31.33 The most significant revenue increases, which are reported in the Licenses and Permits, Development Fees, Charges for Services, and Other categories, were caused by a significant increase in residential development this fiscal year. The revenue increases occurred from issuances of additional building permits over the preceding fiscal year, development fees, and charges received from residential developers for plan checking services and other cost recovered activities. The following schedule presents a summary of general fund, special revenue funds, debt service funds, and capital project funds' expenditures for the fiscal year ended June 30, 1997, and the amount and percentages of increases and decreases in relation to prior year expenditures. Dollar amounts are expressed in thousands. Increase Percent Percent (Decrease) of Increase Revenue Amount of Total from 1996 (Decrease) Taxes $5,227 13.33 $ 196 3.90 Special Assessments 5,437 13.87 286 5.55 Licenses and Permits 1,952 4.98 460 30.83 Use of Money and Property 2,973 7.59 177 6.33 Intergovernmental 1,993 5.08 1 .05 Development Fees 11,781 30.06 4,187 55.14 Contributions from Developers 718 1.83 49 7.32 Charges for Services 6,985 17.82 2,752 65.01 Fines and Forfeitures 150 .38 (4) (2.60) Other 1.982 5.06 1,248 270.03 Total Revenues $39.198 100.00 $9.352 31.33 The most significant revenue increases, which are reported in the Licenses and Permits, Development Fees, Charges for Services, and Other categories, were caused by a significant increase in residential development this fiscal year. The revenue increases occurred from issuances of additional building permits over the preceding fiscal year, development fees, and charges received from residential developers for plan checking services and other cost recovered activities. The following schedule presents a summary of general fund, special revenue funds, debt service funds, and capital project funds' expenditures for the fiscal year ended June 30, 1997, and the amount and percentages of increases and decreases in relation to prior year expenditures. Dollar amounts are expressed in thousands. X Increase Percent Percent (Decrease) of Increase Expenditures Amount of Total from 1996 Decrease Current: General Government $ 3,388 8.60 (126) (3.59) Public Safety 3,405 8.64 274 8.75 Public Works 10,680 27.11 204 1.95 Community Development 2,466 6.26 697 39.40 Cultural and Leisure 847 2.15 (20) (2.31) Other Expenditures 8,308 21.09 6,206 295.24 X City of Chino Hills Transmittal Letter (Continued) Increase Percent Percent (Decrease) of Increase Expenditures Amount of Total from 1996 (Decrease) Capital Outlay 4,238 10.76 (2,189) (34.06) Debt Service: Principal Interest 3,639 9.23 (1,006) (21.66) Interest and Fiscal Charges 2,427 6.16 1,583 187.56 Total Expenditures $39.398 100.00 $5.622 16.64 The increase in the Community Development and Other Expenditures categories was due to the significant increase in residential development activities for the fiscal year. The expenditure decrease in the Capital Outlay category was due to a lesser level of fiscal year capital project activity. The expenditure increase in the Interest and Fiscal charges category and the expenditure decrease in the Principal Retirement category were principally due to the annual variations in the debt service requirements specified in development reimbursement agreements. Fund Balance Changes Within The General Fund. The General Fund balance decreased by $2,530,773 from $11,863,093 in 1995-96 to $9,332,320 in 1996-97. The above fund balance amounts include reserved, unreserved but designated, and unreserved/undesignated amounts. The principal cause of the decrease was primarily due to the transfer of $3.9 million to the Facilities Development Fee Fund for the excess fees that were contained within the assessment district funds for the retirement of assessment district liens. Enterprise Operations. The City has two enterprise operations: the Water Utility and Sewer Utility. For both utilities, the City is responsible for installation of transmission and distribution lines as well as maintenance on the facilities. However, the treatment of the imported water sold and the sewage generated within the City is provided by agencies in which the City is a member. The water sales revenue increased by $1,251,483 (from $8,591,285 to $9,842,768), in the 1996-97 fiscal year as a result of an increase in customers in 1996-97 due to recent residential development in the current fiscal year, and an increase in consumption per customer. The net loss generated from the fiscal year water utility activities was $666,120. This result is irf contrast to last fiscal year's net income (as restated) of $465,232. The principal reason for the decrease in net income was due to the increase in water cost and other operating costs for the fiscal year. The sewer utility operating revenue increased slightly by $155,712 from $3,313,051 received in the 1995-96 fiscal year to $3,468,763 in the current fiscal year. The increase was a result of an increase in customers in the current fiscal year. The net income from the sewer utility operations for the 1996-97 fiscal year is $629,098, in contrast with the $850,331 net income earned in the 1995-96 fiscal year. The increase in net income is primarily attributed to the increase in the number of customers. X1 City of Chino Hills Transmittal Letter (Continued) Fiduciary Funds. The City acts as an agent on behalf of community facilities districts, assessment districts, and the City employees' deferred compensation plan. The total bonds outstanding for all of the community facilities districts and assessment districts, for which the City has an agency responsibility, amounts to $71,855,000 as of June 30, 1997. This is a reduction of $5,185,000 from the total debt obligation of $77,040,000 outstanding as of June 30, 1996. Since the City is not obligated in any way on these bonds, they are not reported within the City's Long Term Debt Account Group. Debt Administration. The City's General Long Term Debt increased by $1,498,145 from $28,547,305 reported in last fiscal year to $30,045,450 reported in this fiscal year. The principal reason for the increase was the net addition of $2,320,456 in the Development Fee Program obligations which constitutes about 86 percent of the General Long Term Debt. The total amount debt outstanding in this program increase from $23,479,736 in 1995-96 to $25,800,192 in 1996- 97. The Development Fee Program obligations arose from the installation of major City infrastructure by the residential and commercial developers and the commitment of the City's development fee revenue to the repayment of this obligation. The only bonded indebtedness included in the City's General Long Term Debt is the Certificates of Participation (COP) debt issued by the Chino Hills Capital Improvement Corporation for the purpose of constructing Civic Center facilities. This COP debt outstanding as of June 30, 1997 is $1,170,000 and will be paid off in 1999. The City's Proprietary Fund long term debt is recorded in the Water Utility and Sewer Utility enterprise funds. The total long term debt reported in these funds as of June 30, 1997 amounts to $21,879,987 and $1,038,180, respectively. The principal debt outstanding in these funds is the $21,225,000 of Certificates of Participation indebtedness included in the Water Utility Fund. This bonded indebtedness was issued in 1996 for the purpose of refunding prior C.O.P debt issues. Cash Management. Cash temporarily idle during the year was invested in demand deposits and pooled investment accounts operated by the State of California's Local Agency Investment Fund, the San Bernardino County Investment Pool, and the Los Angeles County Investment Pool. The average yield on maturing investments during the fiscal year was about 5.5 percent, and the amount of interest received by all of the governmental fund types amounted to $2,972,771. This was $176,340 more than was received in the past fiscal year. Risk Management. The City is a member of the California Joint Powers Insurance Authority (CJPIA), through which the City receives coverage for liability and workers compensation claims, as well as property damage and certain other coverage. The CJPIA is a consortium of local government agencies that was formed for the purpose of providing insurance coverage for its member agencies. Xii City of Chino Hills Transmittal Letter (Continued) The liability insurance coverage is funded through contributions paid to the CJPIA for the first $20,000 of loss, and through sharing losses with the other agencies for the $20,000 through $500,000 increment. Separate deposits are collected from member cities to cover claims from $500,000 to $10,000,000. The workers compensation program includes pooling of retained losses plus excess insurance. The City's self insured retention is $50,000 and is covered via deposits with the CJPIA. Claims from $50,000 to $500,000 are covered by the pool, and claims from $500,000 to $5,000,000 are covered by insurance policies through the CJPIA. Voter Initiative. In November 1996, the State's voters approved Proposition 218 which establishes voting requirements for any new or increased taxes, assessments, and property -related fees. The proposition also limits assessments to the special benefit conferred on the property subject to the assessment, limits property -related fees and charges to the cost for providing the service, and prohibits imposing property -related fees for general governmental services available to the public. The proposition's impact on the City is currently being studied and alternatives will be presented to the City Council in the near future to implement the provisions of the proposition. OTHER INFORMATION Independent Audit. City policy requires that its financial statements be audited by a certified public accountant selected by the City Council. This requirement has been satisfied and the auditor's opinion is included in the financial section of this report. Awards. The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Chino Hills for its comprehensive annual financial report for the year ended June 30, 1996. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. Such CAFR 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 that our current report continues to conform to the Certificate of Achievement program requirements and we are submitting it to the GFOA. City of Chino Hills Transmittal Letter (Continued) Acknowledgments. We would like to express our appreciation to members of the Finance Department staff who assisted and contributed to the preparation of this report. Their efforts over the past year toward upgrading the accounting and financial reporting systems of the City have contributed substantially to the improved quality of the information being reported to the citizens and City Council, to State agencies, and to other users of municipal financial reports. Respectively Submitted, Dou N. La Belle City Manager xiv Stan McCartney J Finance Director This page intentionally left blank. M CITY OF CHINO HILLS ORGANIZATION OF CITY GOVERNMENT OPERATING SUMMARY CITY CLERK CITY OF CHINO HILLS VOTERS CITY COUNCIL VARIOUS COMMISSIONS CITY MANAGER COMMUNITY SERVICES DEPARTMENT COMMUNITY DEVELOPMENT DEPARTMENT FINANCE DEPARTMENT xv[ PUBLIC SAFETY DEPARTMENT PUBLIC FACILITIES AND OPERATIONS DEPARTMENT CITY ATTORNEY CITY OF CHINO HILLS LIST OF ELECTED AND APPOINTED OFFICIALS ELECTED OFFICIALS - CITY COUNCIL Gwenn Norton -Perry Mayor Gary G. Larson Mayor Pro Tem Ed Graham Council Member James S. Thalman Council Member Michael G. Wickman Council Member APPOINTED OFFICIALS Douglas N. La Belle City Manager Linda D. Ruth City Clerk Mark D. Hensley City Attorney Denise C. Cattern Community Services Director Bruce A. Coleman Community Development Director Pat Hagler Public Facilities and Operations Director Stan McCartney Finance Director/City Treasurer xvii Certificate of Achievement for Excellence in Financial Reporting Presented to City of Chino Hills, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1996 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. E OFFj�� � IfTFO STATES � W Mp N A President SEAL GIICAG7 Y�� zerf-� Executive Director Xviii FINANCIAL SECTION This page intentionally left blank. 1201 DOVE STREET, SUITE 680 �'J ,,/%, NEWPORT BEACH CALIFORNIA 92660 M oreland C7 eJ Y/J���.� (714) 221-0025 CERTIFIED PUBLIC ACCOUNTANTS 570 RANCHEROS DRIVE SUITE 260 SAN MARCOS. CA 92069 (760)752-3390 October 31, 1997 The Honorable City Council of the City of Chino Hills, California Independent Auditors' Report We have audited the accompanying general purpose financial statements of the City of Chino Hills, California, as of and for the year ended June 30, 1997, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Chino Dills management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Chino Hills as of June 30, 1997, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing, Standards, we have also issued a report dated October 31, 1997 on our consideration of the City of Chino Hills internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying combining, individual fund and account group financial statements and schedules listed as supplementary information in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Chino Hills. The information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The statistical information listed in the table of contents was not audited by us and, accordingly, we do not express an opinion thereon. 1 CITY OF CHINO HILLS Combined Balance Sheet All Fund Types and Account Groups June 30, 1997 Assets and Other Debits Cash and investments (Note 2) Restricted assets: Cash and investments with fiscal agents (Note 2) Receivables (net, where applicable of allowance): Accounts Interest Taxes Grants Special assessments receivable Deferred special assessments receivable Prepaid items Deposits Deposit with Water Facilities Authority Due from other funds (Note 3) Due from other agencies Materials and supplies inventories Lease payments receivable (Note 13) Installment receivable (Note 14) Due from other governments Deferred charges (Note 1) Investment in Water Facilities Authority (Note 12) Property, plant and equipment, net (Note 4) Amount available for long-term debt Amount to be provided for retirement of long-term debt Total Assets and Other Debits See Accompanying Notes to Financial Statements. Governmental Fund Types Special Debt Capital General Revenue Service Projects Fund Funds Funds Funds $ 9,328,503 $ 30,742,247 $ 252,997 $ 2,482,104 93,905 415,697 371,970 477,460 26,153 202,138 164,433 86,889 429,240 1,250,909 84,292 27,606 395,049 6,639 210,043 166,821 $ 10,297,490 $ 33,761,302 $ 252,997 $ 2,903,306 2 Fiduciary Proprietary Fund Types Fund Type Account Groups General General Internal Agency Fixed Long -Term Enterprise Service Funds Assets Debt $ 18,184,897 $ 2,665,297 $ 29,178,503 Totals (Memorandum Only) 1997 1996 $ 92,581,551 $ 77,486,509 2,546 7,268,054 7,523,597 8,425,288 1,801,940 2,311,542 2,664,708 302,878 33,804 229,540 1,441,805 1,077,754 366,571 345,370 86,889 89,447 188,945 618,185 168,713 1,250,909 1,117,450 102,936 102,936 101,648 110,000 110,000 110,000 14,525 14,525 14,525 58,175 565,122 1,280,778 74,489 81,128 81,128 163,923 163,923 130,782 1,917,660 1,917,660 2,150,160 901,584 901,584 901,584 376,864 457,706 565,811 565,811 612,800 4,832,321 4,832,321 4,941,513 83,659,747 565,968 $ 15,076,470 99,302,185 99,741,361 $ 252,997 252,997 259,662 29,792,453 29,792,453 28,287,643 $ 112,693,432 $ 3,265,069 $ 36,865,042 $ 15,076,470 $ 30,045,450 $ 245,1601-558 $ 230,446,529 (Continued) 3 CITY OF CHINO HILLS Combined Balance Sheet All Fund Types and Account Groups (Continued) June 30, 1997 Liabilities, Equity and Other Credits Liabilities: Accounts and contracts payable Salaries and benefits payable Deposits Retentions payable Due to other funds (Note 3) Due to other governments Due to Chino Basin Municipal Water District Deferred revenue Deferred compensation payable (Note 7) Compensated absences payable Funds held for others (Note 11) Accrued interest payable to Inland Empire Public Facilities Corporation Long-term debt (Note 9) Total Liabilities Equity and Other Credits: Investment in general fixed assets Contributed capital (Note 15) Retained earnings Fund balances: Reserved (Note 18) Unreserved, designated (Note 18) Unreserved, undesignated Total Equity and Other Credits Total Liabilities, Equity and Other Credits See Accompanying Notes to Financial Statements. 23,763 15,430 965,170 2,753,778 754,813 234,819 Governmental Fund Types 9,088,383 16,118,975 Special Debt Capital General Revenue Service Projects Fund Funds Funds Funds $ 785,680 $ 2,306,608 $ 336,758 161,443 75,679 30,696 288,356 2,617 310,823 129,699 6,209 23,763 15,430 965,170 2,753,778 754,813 234,819 1,331,194 $ 252,997 197,603 9,088,383 16,118,975 9,118 13,557,355 1,950,890 9,332,320 31,007,524 252,997 2,148,493 $ 10,297,490 $ 33,761,302 $ 252,997 $ 2,903,306 4 Proprietary Fiduciary Fund Types Fund Type Account Groups General General Totals Enterprise Internal Agency Fixed Long -Term (Memorandum Only) Funds Service Funds Assets Debt 1997 1996 $ 1,731,062 $ 45,661 $ 411,103 $ 5,616,872 $ 5,106,705 56,364 2,621 296,107 285,511 865,659 3,225,313 4,090,972 3,171,999 319,052 297,953 31,067 90,916 565,122 1,280,778 5,607 11,816 24,228 11,262,056 11,262,056 9,425,295 23,763 7,989 1,316,291 1,316,291 780,745 79,034 4,236 98,700 20,559,363 20,559,363 19,913,688 99,050 99,050 203,001 22,839,133 $ 30,045,450 52,884,583 52,670,667 25,706,976 52,518 36,865,042 30,045,450 97,143,747 93,168,559 $ 15,076,470 15,076,470 15,152,084 75,379,839 2,528,947 77,908,786 73,175,975 11,606,617 683,604 12,290,221 10,740,469 2,016,613 2,919,286 25,207,358 24,453,917 15,517,363 10,836,239 86,986,456 3,212,551 15,076,470 148,016,811 137,277,970 $ 112,693,432 $ 3,265,069 $ 36,865,042 $ 15,076,470 $ 30,045,450 $ 245,160,558 $ 230,446,529 5 CITY OF CHINO HILLS Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types For the Year Ended June 30, 1997 Revenues: Taxes (Note 5) Special assessments Licenses and permits Use of money and property Intergovernmental Development fees Contribution from developers Charges for services Fines and forfeitures Other Total Revenues Expenditures: Current: General government Public safety Public works Community development Cultural and leisure Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances - Beginning of Year Equity transfers in (Note 16) Equity transfers out (Note 16) Fund Balances - End of Year See Accompanying Notes to Financial Statements. 6 Special Debt General Revenue Service $ 5,227,280 $ 5,436,894 1,951,966 1,187,000 1,646,240 $ 12,515 1,993,586 11,781,051 413,509 3,448,596 3,536,589 149,952 AM d00 1 170 '240 12,567,293 25,773,729 426,024 3,386,140 1,712 11,863,093 3,404,575 875 193,705 1,827,902 8,852,473 $ 9,332,320 2,466,175 338,806 508,790 7,920,136 900,480 4,362 3,279,243 355,000 55 2,349,385 77,689 11,428,015 23,812,219 432,689 1,139,278 1,961,510 (6,665) 4,952,615 678,798 3,996,300 (4,091,307) (2,319,868) (3,412,509) 6,629,047 (2,273,231) 8,590,557 (6,665) 11,863,093 22,532,024 259,662 875 193,705 (258,417) (308,762) $ 9,332,320 $ 31,007,524 $ 252,997 Totals Capital (Memorandum Only) Projects 1997 1996 $ 5,227,280 $ 5,030,839 5,436,894 5,150,908 1,951,966 1,492,243 $ 127,016 2,972,771 2,796,431 1,993,586 1,992,328 11,781,051 7,593,825 304,385 717,894 669,314 6,985,185 4,232,550 149,952 153,720 1,981,868 733,687 431,401 39,198,447 29,845,845 3,387,852 3,514,027 3,404,575 3,130,731 10,680,375 10,476,394 2,466,175 1,769,414 847,596 867,721 387,824 8,307,960 2,102,315 3,337,611 4,238,091 6,426,631 3,638,605 4,645,188 2,427,129 843,811 3,725,435 39,398,358 33,776,232 (3,294,034) (199,911) (3,930,387) 205,231 5,157,846 400,124 2,055,187 6,730,285 8,295,788 (309,710) (6,720,885) (7,184,312) 1,950,708 5,167,246 1,511,600 (1,343,326) 4,967,335 (2,418,787) 3,554,663 38,209,442 41,187,176 194,580 (62,844) (630,023) (558,947) $ 2,148,493 $ 42,741,334 $ 38,209,442 7 CITY OF CHINO HILLS Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Governmental Fund Types For the Year Ended June 30, 1997 Revenues: Taxes (Note 5) Special assessments Licenses and permits Use of money and property Intergovemmental Development fees Contributions from developers Charges for services Fines and forfeitures Other Total Revenues Expenditures: Current: General government Public safety Public works Community development Cultural and leisure Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances - Beginning of Year Equity transfers in (Note 16) Equity transfers out (Note 16) Fund Balances - End of Year See Accompanying Notes to Financial Statements. 8 General Fund Variance Favorable Budget Actual (Unfavorable) S 4,771,900 S 5,227,280 $ 455,380 1,406,800 1,951,966 545,166 912,500 1,187,000 274,500 3,647,300 3,448,596 (198,704) 182,700 149,952 (32,748) 519,100 602,499 83,399 11,440,300 12,567,293 1,126,993 3,978,317 3,386,140 592,177 3,497,600 3,404,575 93,025 2,254,309 1,827,902 426,407 2,438,357 2,466,175 (27,818) 446,400 338,806 107,594 4,362 4,362 55 55 12,619,400 11,428,015 1,191,385 (1,179,100) 1,139,278 2,318,378 900,700 678,798 (221,902) (4,787,000) (4,091,307) 695,693 (3,886,300) (3,412,509) 473,791 (5,065,400) (2,273,231) 2,792,169 11,863,093 11,863,093 875 875 (258,417) (258,417) S 6,797,693 S 9,332,320 S 2,534,627 Special Revenue Funds Variance Favorable Budget Actual (Unfavorable) $ 5,099,900 $ 5,436,894 $ 336,994 1,062,800 1,646,240 583,440 2,199,700 1,993,586 (206,114) 18,167,900 11,781,051 (6,386,849) 3,719,100 3,536,589 (182,511) 1,497,300 1,379,369 (117,931) 31,746,700 25,773,729 (5,972,971) 626,900 1,712 625,188 9,815,509 8,852,473 963,036 684,600 508,790 175,810 7,920,300 7,920,136 164 1,076,700 900,480 176,220 3,547,282 3,279,243 268,039 2,395,109 2,349,385 45,724 26,066,400 23,812,219 2,254,181 5,680,300 1,961,510 (3,718,790) 4,353,800 4,952,615 598,815 4,031,000 3,996,300 (34,700) (12,999,300) (2,319,868) 10,679,432 (4,614,500) 6,629,047 11,243,547 1,065,800 8,590,557 7,524,757 22,532,024 22,532,024 193,705 193,705 (308,762) (308,762) $ 23,597,824 $ 31,007,524 $ 7,409,700 E Debt Service Fund Variance Favorable Budget Actual (Unfavorable) $ 12,100 $ 12,515 $ 415 433,000 413,509 (19,491) 8,400 (8,400) 453,500 426,024 (27,476) 230,000 355,000 (125,000) 203,000 77,689 125,311 433,000 432,689 311 20,500 (6,665) (27,165) 20,500 (6,665) (27,165) 259,662 259,662 $ 280,162 $ 252,997 $ (27,165) (Continued) CITY OF CHINO HILLS Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Governmental Fund Types (Continued) For the Year Ended June 30, 1997 Revenues: Taxes (Note 5) Special assessments Licenses and permits Use of money and property Intergovernmental Development fees Contributions from developers Charges for services Fines and forfeitures Other Total Revenues Expenditures: Current: General government Public safety Public works Community development Cultural and leisure Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances - Beginning of Year Equity transfers in (Note 16) Equity transfers out (Note 16) Fund Balances - End of Year See Accompanying Notes to Financial Statements. 10 Capital Projects Funds Variance Favorable Budget Actual (Unfavorable) $ 83,500 S 127,016 S 43,516 1,133,800 304,385 (829,415) 1,217,300 431,401 (785,899) 568,100 387,824 180,276 26,562,600 3,337,611 23,224,989 27,130,700 3,725,435 23,405,265 (25,913,400) (3,294,034) 22,619,366 205,300 205,231 (69) 22,346,400 2,055,187 (20,291,213) (899,300) (309,710) 589,590 21,652,400 1,950,708 (19,701,692) (4,261,000) (1,343,326) 2,917,674 3,554,663 3,554,663 (62,844) (62,844) $ (706,337) S 2,148,493 $ 2,854,830 This Page Intentionally Left Blank 11 CITY OF CHINO HILLS Combined Statement of Revenues, Expenses and Changes in Retained Earnings All Proprietary Fund Types For the Year Ended June 30, 1997 Operating Revenues: Water sales Sanitation services Charges for services Permit and inspection fees Meter and installation fees Other Total Operating Revenues Operating Expenses: Purchased water Salaries and benefits Utilities Contractual services Depreciation and amortization Repairs and maintenance Services and supplies Other general and administrative Total Operating Expenses Operating Income Non -Operating Revenues (Expenses): Loss on investment in Water Facilities Authority (Note 12) Interest earnings Interest expense Net Non -Operating (Expenses) Revenues Net Income (Loss) Before Operating Transfers Operating transfers in Operating transfers out Net Income (Loss) Add back depreciation expense on contributed assets Retained Earnings, Beginning of Year, Restated (Note 17) Equity transfer out (Note 16) Retained Earnings, End of Year See Accompanying Notes to Financial Statements. 12 Internal Enterprise Service Funds Fund S 9,842,768 3,466,957 S 578,400 103,455 291,697 238,026 6,761 13,942,903 585,161 5,008,313 923,340 39,848 491,849 2,488,446 65,923 2,293,653 147,959 547,756 128,445 135,847 126,712 1,485,286 666 13,374,490 509,553 568,413 75,608 (109,191) 1,001,889 128,803 (1,473,133) (580,435) 128,803 (12,022) 204,411 15,600 (25,000) (37,022) 220,011 1,376,505 139,434 10,416,310 324,159 (149,176) S 11,606,617 $ 683,604 Totals (Memorandum Only) 1997 1996 $ 9,842,768 $ 8,591,285 3,466,957 3,313,051 578,400 379,622 103,455 93,205 291,697 192,734 244,787 241,208 14,528,064 12,811,105 5,008,313 3,272,468 963,188 826,646 491,849 676,997 2,554,369 2,253,188 2,441,612 2,358,813 676,201 470,173 262,559 180,952 1,485,952 27,255 13,884,043 10,066,492 644,021 2,744,613 (109,191) 1,524 1,130,692 758,889 (1,473,133) (859,546) (451,632) (100,657) 192,389 2,643,956 15,600 1,524 (25,000) (1,113,000) 182,989 1,532,480 1,515,939 1,450,983 10,740,469 9,267,981 (149,176) (1,510,975) $ 12,290,221 $ 10,740,469 13 CITY OF CHINO FMLS Combined Statement of Cash Flows All Proprietary Fund Types For the Year Ended June 30, 1997 Cash Flows from Operating Activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (Increase) in prepaid items Decrease in due from other funds (Increase) in due from other agencies (Increase) in deposits (Increase) in materials and supplies inventory Decrease in deposit with Water Facilities Authority Increase in accounts and construction contracts payable Increase (decrease) in salary and benefits payable Increase in customer deposits Increase (decrease) in compensated absences Increase (decrease) in due to other funds Net Cash Provided by Operating Activities Cash Flows from Noncapital Financing Activities: Equity transfer out Operating transfers in Operating transfers out Net Cash Provided by (Used for) Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Repayment of 1996 Certificates of Participation Repayment of advances for construction Contributed capital received Payment to refunding escrow agent Interest paid Purchases of property, plant and equipment Lease payments received Net Cash Provided by Capital and Related Financing Activities Enterprise Totals Internal (Memorandum Only) Service 1997 1996 S 568,413 $ 75,608 $ 644,021 $ 2,744,613 2,293,653 147,959 2,441,612 2,358,813 302,440 302,440 (716,178) (1,288) (1,288) (101,648) 4,862 4,862 44,061 (20,728) (357,629) (74,489) (357,629) 388,696 (35,000) (33,141) (33,141) (17,121) 200,970 33,592 34,238 67,830 387,456 10,801 2,621 13,422 (19,704) 162,450 162,450 11,896 6,047 4,236 10,283 (20,728) (357,629) (357,629) 388,696 2,990,200 264,662 3,254,862 5,151,637 (134,132) (134,132) (1,166,602) 15,600 15,600 1,524 (25,000) (25,000) (1,113,000) (159,132) 15,600 (143,532) (2,278,078) (420,000) (420,000) (63,964) (63,964) (70,889) . 3,364,682 403,000 3,767,682 3,007,586 (1,215,736) (1,577,084) (1,577,084) (717,671) (216,443) (75,872) (292,315) (682,147) 232,500 232,500 213,900 1,319,691 327,128 1,646,819 535,043 See Accompanying Notes to Financial Statements. 14 (Continued) CITY OF CHINO HILLS Combined Statement of Cash Flows All Proprietary Fund Types (Continued) For the Year Ended June 30. 1997 Cash Flows from Investing Activities: Interest received Increase in cash and cash equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Noncash Financing Activities Enterprise Funds: Enterprise SZ07A C10 Totals Internal (Memorandum Only) Senice 1997 1996 121,470 995,989 717,759 5,025,278 728,860 5,754,138 4,126,361 13,162,165 1,936,437 15,098,602 10,972,241 S 18,187,443 $ 2,665,297 $ 20,852,740 S 15,098,602 1. The Water and Sewer Funds transferred $10,238 and $4,806, respectively, of fixed assets to the Data Processing Internal Service Fund. 2• The Water and Sewer Funds received capital contributions from developers in the form of capital improvements totaling $232,215 and $112,037, respectively, as part of the Developer Fee Liability Program. 3_ The Water and Sewer Funds' developer fee liability was reduced by $1,079,821 and $42,504, respectively, for developers' use of construction credits with a corresponding addition to contributed capital. 4. The Water and Sewer Funds received capital contributions from developers in the form of capital improvements totaling $544,297 and $526,689, respectively with a corresponding additon to contributed capital. Internal Service Funds: 1. The Equipment Maintenance Fund and the Data Processing Fund received contributed assets from other funds in the net amounts of $111,583 and $148,112, respectively. See Accompanying Notes to Financial Statements. 15 CITY OF CHINO HILLS Notes to Financial Statements June 30, 1997 SIGNIFICANT ACCOUNTING POLICIES Description of the Reporting Entity: The City of Chino Hills (the "City") was incorporated December 1, 1991 under the General Laws of the State of California. The City operates under a Council -Manager form of government and provides the following services: contracted police, lighting and landscaping, public improvements, water, sanitation, planning and zoning and general administrative services, animal control, building and safety, community services and street and highway maintenance. The inclusion of an organization within the scope of the reporting entity of the City of Chino Hills is based on the provisions of GASB Statement 14. These organizations include those legally separate entities for which the City of Chino Hills is financially accountable. Financial accountability is established based on whether: (1) the City appoints a voting majority of the component unit's governing board, and (2) the component unit provides a financial benefitiburden to the City. As a result, the financial statements of the Chino Hills Capital Improvement Corporation (Corporation) described below is blended with the City's financial statements. Separate financial statements for the Corporation are not prepared. The Corporation, a California nonprofit public benefit corporation, was established on May 19, 1992 to facilitate the financing of capital improvements on behalf of the City of Chino Hills. The accounts of the City are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self -balancing accounts which comprise its assets, liabilities, equity, revenues and expenditures/expenses. The various funds and account groups are defined as follows: Governmental Fund Types: The General Fund is used to account for all revenues and activities financed by the City which are not accounted for in another fund. S12ecial Revenue Funds are used to account for taxes and other revenues which are set aside for a specific purpose in accordance with law or administrative regulation. The Debt Service Fund is used to account for the current interest and principal payments on the general long-term debt. 16 CITY OF CHINO HELLS Notes to Financial Statements (Continued) June 30, 1997 Capital Projects Funds are used to account for resources used for the acquisition and construction of major capital facilities. Proprietary Fund Types: Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the stated intent is that the cost of providing goods and services to the general public on a continuing basis be financed or recovered through user charges. The Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments of the City on a cost reimbursement basis. Fiduciary Fund Type: Agency Funds are used to account for money and property held by the City as trustee or custodian. They are also used to account for various assessment districts for which the City acts as an agent for debt service activity. Account Groups: The General Fixed Assets Account Group is used to account for capital assets of the City which are long-term in nature, and used in the operation of the City other than those which are capitalized in the proprietary fund type. The General Lona -Term Debt Account Group is used to account for the City's outstanding long-term obligations other than those which are included in the proprietary fund type. Measurement Focus and Basis of Accounting: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of the funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund -type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. 17 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 The modified accrual basis of accounting is followed for the governmental and fiduciary fund types (General, Special Revenue, Debt Service, Capital Projects and Agency Funds). Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual; i.e., when they become measurable and available to finance expenditures of the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers property taxes as available if they are remitted within 60 days after the year end. Other revenues considered susceptible to accrual include taxpayer -assessed tax revenues (sales taxes, transient occupancy taxes, franchise taxes, etc.), certain state revenues, interest income and charges for services. Licenses and permits, fines and forfeitures are not susceptible to accrual because they are not measurable until received in cash. Grant revenues have been recorded according to the provisions of GASB Cod. Sec. G60, whereby grant funds earned but not received are recorded as a receivable, and funds received before the related revenue recognition criteria have been met are reported as deferred revenue. Expenditures are recorded when the related fund liability is incurred, except that principal and interest on general long- term debt is recognized when due. The long-term liability to be paid from governmental funds' resources for accumulated unpaid vacation, sick pay, and compensatory time is recorded in the General Long -Term Debt Account Group as it is expected to be paid from future resources. The full accrual method of accounting is followed by the City's proprietary fund types. Revenues are recognized when earned, and expenses are recognized when incurred. Unbilled receivables are recorded at year end. In accordance with Governmental Accounting Standards Board (GASB) Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the City applies all GASB pronouncements currently in effect as well as Financial Accounting Standard Board Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989. Budget Procedures: All financial activities of the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds are part of the appropriated budget. Appropriated amounts are as originally adopted or as amended by the City Council throughout the year. The following general procedures are followed in establishing the annual budget: 1) The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and estimated revenues. 18 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 2) The City Manager is authorized to transfer appropriations between items, accounts, programs, and funds. The budgeted amounts used in the combined financial statements are the final adjusted amounts, which do not vary significantly from the original adopted budget. 3) The budget is formally integrated into the accounting system and employed as a management control device during the year for all funds. 4) The budget is adopted on an annual basis. 5) The budget is adopted on a basis consistent with generally accepted accounting principles. The modified accrual basis of accounting is employed in the preparation of the budget. 6) At fiscal year-end, operating budget appropriations lapse; however, incomplete capital improvement project appropriations within Capital Projects Funds, and authorized non -capital appropriations, can be carried over to the following fiscal year as approved by the City Council. 7) The legally adopted budget requires that expenditures not exceed appropriations at the department level. Encumbrances: Encumbrance accounting is employed as an extension of formal budgetary integration in governmental funds. Encumbrances, such as purchase orders, contracts, and other commitments for the expenditure of monies, are reported as reservations of fund balances. Outstanding encumbrances at year-end are reappropriated in the following year. Investments: Investments are stated at cost except for investments of the deferred compensation plan which are stated at market value. (See Notes 2 and 7.) Materials and Supplies Inventories: Materials and supplies consist of water pipe, meters, valves, tools and miscellaneous items used in installing, monitoring and repairing these items. The water pipe, meters, valves and long-term items are removed from inventory and capitalized as fixed assets and depreciated upon installation. The remaining items are recorded as expenses when used in accordance with the consumption method. Inventories are recorded at the lower of cost or market on a FIFO (first -in, first -out) basis. General Fixed Assets: General fixed assets are recorded as expenditures in the various governmental funds at the time of purchase. Such assets include land, buildings, building improvements, furniture, fixtures, vehicles and equipment, and are capitalized at historical cost in the General 19 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Fixed Assets Account Group. Donated fixed assets are recorded at their fair market value on the date donated. The cost of roads and streets, bridges, curbs and gutters, and lighting systems are not capitalized. No depreciation is provided on general fixed assets. Fixed Assets of Proprietary Funds: Fixed assets purchased for the proprietary funds are capitalized at cost, while contributed assets are recorded at fair market value at the time received. Depreciation has been provided on a straight-line basis over their estimated useful lives as follows: Equipment 3 - 12 years Vehicles 4 - 10 years Utility Plant in Service 5 - 100 years Meters 30 years Pipeline in Service 40 - 75 years Interest is capitalized on proprietary funds' assets acquired with debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period in accordance with Statement of Financial Accounting Standards No. 62. No interest was capitalized in the proprietary funds in fiscal year 1996-97. Compensated Absences: In accordance with GASB Cod. Sec. C60, the City of Chino Hills records a liability for vacation and compensatory leave that is earned and unused at year-end; sick leave liability recorded has been estimated using the "vesting method" which is calculated "... based on the sick leave accumulated at the balance sheet date by those employees who currently are eligible to receive termination payments as well as other employees who are expected to become eligible in the future to receive such payments." Vacation, sick and compensatory leave liabilities relating to governmental funds have been recorded in the General Long -Term Debt Account Group, as these amounts are expected to be paid from future resources; liabilities relating to proprietary funds are recorded within those respective funds. Deferred Charges: Deferred charges consist of issuance costs representing capitalized costs incurred in connection with the issuance of long-term debt in proprietary funds. These costs are amortized on a straight-line basis, which approximates the interest method. 20 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Balance at July 1, 1996 1996-97 amortization expense Balance at June 30, 1997 Cash and Cash Equivalents: $612,800 4��) $565,811 All cash and investments, except those which are held by fiscal agents, are held in a City pool. These pooled funds are available upon demand and therefore are considered cash and cash equivalents for purposes of the statement of cash flows. Investments held by fiscal agents with an original maturity of three months or less are also considered cash equivalents. Development Fees: Development fees represent amounts collected from developers for building permits to begin residential and commercial building construction. Proceeds. from such fees are used to fund improvements made in the City. Total Column on Combined Statements: The total column on the Combined Financial Statements is captioned "Memorandum Only" to indicate that it is presented only to facilitate financial analysis and such data is not comparable to a consolidation. Data in this column does not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. Comparative Data: Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative data by fund type have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Certain reclassifications have been made to the prior year financial data to conform with the current year presentation. 2. CASH AND INVESTMENTS Cash and investments at June 30, 1997 consist of the following: Petty Cash 21 $ 3,350 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Pooled Deposits and Investments: Demand Deposits $ 601,099 Pooled Investments 91,977,102 Cash and Investments with Fiscal Agents: Deferred Compensation Plan Other Total Cash and Investments 92,578,201 1,316,291 6,207,306 $100,105,148 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 and funds in its deferred compensation plan (See Note 7). Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on average daily cash and investment balances for the quarter. Interest income from cash and investments with fiscal agents and in the deferred compensation plan is credited directly to the related fund. Authorized Investments: Under provision of the City's investment policy, and in accordance with Section 53601 of the California Government Code, the City may invest in the following types of investments: • Bonds issued by the City • Repurchase Agreements • Registered state warrants or treasury notes or bonds of this State • Bonds, notes, or warrants of any local agency within this State • United States treasury notes, bonds, bills, or certificates of indebtedness • Obligations of a federal agency or United States government sponsored agency • Negotiable certificates of deposit • Mutual funds • State and County Investment Pools Pooled Deposits/Credit Risk: The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total deposits. 22 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 The City may waive collateral requirements for deposits which are fully insured up to $100,000 by federal depository insurance. In accordance with GASB Statement 3, deposits are classified as to credit risk by three categories as follows: Category 1: Insured or collateralized with securities held by the City or by its agent in the City's name. Category 2: Collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 3: Uncollateralized. The City's deposits are summarized below: Category Carrying 1 2 3 Amount D osits: Pooled Deposits: Demand Deposit Accounts, Bank Balance $100,000 $897,183 $ 997,183 Add: Deposits in Transit 175,239 Less: Outstanding Warrants5( 71,323) Total Pooled Deposits 100,000 897,183 601,099 Deposits with Fiscal Agents: Bank Investment Contracts $2,772,610 2,772,610 Total Deposits 100 000 JU2,183 $2,772,610 $3373,709 Credit Risk, Carrying Amount, and Market Value of Investments: The investments that are represented by specific identifiable investment securities are classified as to credit risk by three categories as follows: Category 1: Insured or registered, or securities held by the City or its agent in the City's name. Category 2: Uninsured and unregistered with securities held by the counterparty's trust department or agent in the City's name. 23 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Category 3: Uninsured and unregistered with securities held by the counterparty, or by its trust department or agent but not in the City's name. All of the pooled investments, investments with fiscal agents and investments of the City's deferred compensation plan are not represented by specific identifiable investment securities and, therefore, are not subject to categorization. The investments are summarized below. Pooled Investments State of California Local Agency Investment Fund Los Angeles County Investment Pool San Bernardino County Investment Pool Total Pooled Investments Investments with Fiscal Agents Mutual Funds Guaranteed Investment Contract Total Investments with Fiscal Agents Deferred Compensation Plan Mutual Funds Total Investments Contractual/ Carrying Market Amount Value $19,091,416 $19,091,416(') 43,640,010 43,627,784(2) 29,245,676 28,982,2893) 91,977,102 91,701,489 1,693,696 1,741,000 3,434,696 1,316,291 1,693,696 1,741,000 3,434,696 1,316,291 $96,728,089 $96,452,476 The management of the State of California Pooled Money Investment Account (generally referred to as LAIF) has indicated to the City of Chino Hills that as of June 30, 1997 the carrying amount of the pool was $28,515,398,747 and the estimated market value of the.. pool (including accrued interest) was $28,637,448,331. The City's proportionate share of that value is $19,173,131. Included in LAIF's investment portfolio are certain derivative securities or similar products in the form of structured notes, totalling $740,750,000, and asset-backed securities totalling $406,649,000. LAIF's (and the City's) exposure to risk (credit, market or legal) is not currently available. 24 3. CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 (Z) The management of the Los Angeles County Investment Pool (LACIP) has indicated to the City that as of June 30, 1997 the carrying amount of the pool was $6,410,083,799 and the estimated market value of the pool was $6,408,288,032. The City's proportionate share of that value is $43,627,784. Included in the LACIP's investment portfolio are certain derivative securities in the form of asset- backed securities and floating rate notes, representing approximately 4.77% of the LACIP total investment portfolio. LACIP's (and the City's) exposure to risk (credit, market or legal) is not currently available. (3) The management of the San Bernardino County Investment Pool (SBCIP) has indicated to the City that as of June 30, 1997 the carrying amount of the pool was $1,225,292,899 and the estimated market value of the pool was $1,214,258,273. The City's proportionate share of that value is $28,982,289. Included in the SPCIP's portfolio are certain derivative securities or similar products in the form of structured notes and asset-backed securities. SBCIP'S (and the City's) exposure to risk (credit, market or legal) is not currently available. Cash and Investments with Fiscal Agents: The City has monies held by trustees or fiscal agents pledged to the payment or security of certain bonds and certificates of participation. The California Government Code provides that these monies, in the absence of specific statutory provisions governing the issuance of bonds or certificates, may be invested in accordance with the ordinance, resolutions or indentures specifying the types of investments its trustee or fiscal agents may make. Included in the monies held by trustees or fiscal agents are deposits with various institutions for the payment of long-term debt. INTERFUND RECEIVABLES/PAYABLES Receivable Payable General Fund $ 84,292 $ 2,617 Special Revenue Funds: Lighting and Landscape District 27,606 100,007 Gas Tax 20,000 Federal Grants 36,242 Solid Waste 31,420 Miscellaneous Grants 123,154 Capital Projects Fund: Capital Improvement 395,049 Pomona Construction 129,699 Enterprise Fund: Water Utility 58,175 10,318 Sewer 20,749 25 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Agency Fund: CFD #8 Butterfield General Agency Totals 4. PROPERTY, PLANT AND EQUIPMENT 57,746 33,170 565122 $565,122 Changes in the components of the General Fixed Assets Account Group for the year ended June 30, 1997 were as follows: Balance at Balance at July 1, 1996 Additions Deletions June 30, 1997 Land $12,175,258 $195,731 $12,370,989 Equipment 814,044 63,211 $334,556 542,699 Buildings 2,162,782 2,162,782 Total $15,152,084 $258,942 $334,556 $15,076,470 A summary of changes in the Enterprise Fund property, plant and equipment for the year ended June 30, 1997 were as follows: Balance at July 1, 1996 as Restated (See Note 17) Land $ 3,074,759 Easements 537,940 Utility Plant in Service 18,657,542 Pipeline in Service 71,905,592 Meters 894,740 Buildings and Improvements 130,236 Equipment 550,469 Construction in Progress 1,894,050 Balance at Additions Deletions June 30, 1997 $1,299,361 1,555,139 49,800 $ 3,074,759 537,940 19,956,903 73,460,731 944,540 130,236 11,824 $ 137,533 424,760 660,490 1,838,343 716,197 Total 97,645,328 $3,576,614 $1,975,876 Accumulated depreciation (13,434,410) S(2,274,232) $ 122,323 Net $84,210,918 26 99,246,066 (15,586,319) $83,659,747 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 A summary of changes in the Internal Service Fund property, plant and equipment for the year ended June 30, 1997 were as follows: PROPERTY TAXES Property taxes are attached as an enforceable lien on property as of March 1. Taxes are levied on July 1 and are payable in two installments on December 10 and April 10. Any unpaid amounts at the end of the fiscal year are recorded as accounts receivable. The County of San Bernardino bills and collects the property taxes and subsequently remits the amount due to the City of Chino Hills in installments during the year. Historically, the City has received substantially all of the taxes levied within two years from the date they are levied. The County is permitted by State Law (Article XIII A of the California Constitution) to levy taxes at one percent (1%) of full market value (at time of purchase) and can increase the property's value no more than two percent (2%) per year. In accordance with an agreement with the County, the City receives 4% of the I% levy. RETIREMENT Plan Description: The San Bernardino County Employees' Retirement Association (SBCERA) is a defined benefit pension plan (the "Plan") operating under the California County Employees' Retirement Act of 1937. The pension plan is a cost-sharing multiple -employer public employee retirement system. Although legally established as a single employer plan, the City of Chino Hills, the City of Big Bear Lake, the County Supervisors Association of California and the South Coast Air Quality Management District were later included along with the County of San Bernardino (the "County") and are collectively referred to as the "Participating Members." Substantially all employees of the Participating 27 Balance at Balance at July 1, 1996 Additions Deletions June 30, 1997 Vehicles $1,647,356 $ 119,487 $1,766,843 Equipment 289,505 586.959 876,464 Total 1,936,861 706,446 $ 2,643,307 Accumulated depreciation (1,558,502)$(518,837)(2,077,339) Net $ 378,359 $565.968 PROPERTY TAXES Property taxes are attached as an enforceable lien on property as of March 1. Taxes are levied on July 1 and are payable in two installments on December 10 and April 10. Any unpaid amounts at the end of the fiscal year are recorded as accounts receivable. The County of San Bernardino bills and collects the property taxes and subsequently remits the amount due to the City of Chino Hills in installments during the year. Historically, the City has received substantially all of the taxes levied within two years from the date they are levied. The County is permitted by State Law (Article XIII A of the California Constitution) to levy taxes at one percent (1%) of full market value (at time of purchase) and can increase the property's value no more than two percent (2%) per year. In accordance with an agreement with the County, the City receives 4% of the I% levy. RETIREMENT Plan Description: The San Bernardino County Employees' Retirement Association (SBCERA) is a defined benefit pension plan (the "Plan") operating under the California County Employees' Retirement Act of 1937. The pension plan is a cost-sharing multiple -employer public employee retirement system. Although legally established as a single employer plan, the City of Chino Hills, the City of Big Bear Lake, the County Supervisors Association of California and the South Coast Air Quality Management District were later included along with the County of San Bernardino (the "County") and are collectively referred to as the "Participating Members." Substantially all employees of the Participating 27 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Members are covered by the plan. For the year ended June 30, 1997 the City of Chino Hills total base salaries for covered employees was $3,733,825. Total payroll for the year was $4,504,673. Employees become eligible for membership on their first day of regular employment and become fully vested after 5 years. General members are eligible for retirement benefits upon completion of 10 years of service and attaining age 50, or 30 years of service regardless of age. Retirement benefits are calculated at 2% of final compensation for each completed year of service based on a normal retirement age of 55 for general members. The plan also provides disability benefits to members and death benefits to beneficiaries of members. Employee and Employer Contribution Obligations: Employees are required to contribute a percentage of their annual compensation to the Plan based on the member's age at entry into the Plan. The City contributes an amount, based on actuarial assumptions, that, together with employee contributions, is intended to provide sufficient reserves for payment of all prospective benefits to members. Employer rates are as follows: Category General members Funding Status and Progress: Member Rates as a Percentage of Base salaries 9.30% The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help assess the funding status of the system on a going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons with other public employee retirement systems. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to SBCERA. The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1996, adjusted for amendments through June 30, 1997. Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 8 percent a year compounded annually, (b) projected salary increases of 5 percent a year compounded annually, attributable to inflation, (c) additional projected salary increases of 1 percent a year, attributable to merit and longevity, (d) pre - and post-retirement mortality based on the 1971 Group Annuity Mortality Table set back one year for men and seven years for women, and (e) cost of living increase of 2 percent per year. 28 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 The total assets in excess of pension benefit obligation is not calculated separately for the City; however, the plan's total assets in excess of pension benefit obligation applicable to SBCERA was $717,508 at June 30, 1997, (based upon June 30, 1996 data) as follows (in $000's): Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits $ 827,519 Current Employees: Employee contributions with interest 357,738 Employer -financed vested 253,240 Employer -financed non -vested 446,017 Total Pension Benefit Obligation 1,884,514 Net Assets Available for Benefits at Market 2,602,022 Assets in Excess of Pension Benefit Obligation 717 508) Actuarially Determined Contribution Requirements and Contribution Made: SBCERA uses the Projected Unit Credit Normal Cost Method which is an accrued benefit method. That is, it focuses on benefits earned by employees as a result of service through the valuation date. According to this "benefit" method, the normal cost is the actuarial present value on the valuation date of the benefits credited for employee service through that date. SBCERA uses this same method for amortizing any unfunded actuarial liabilities, which ends June 30, 2022. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation, as previously described. The City's contribution to the system for 1997 of $742,904 was made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1996. The contribution consisted of normal cost of approximately $681,669 (18.26% of current covered payroll) and amortization of the unfunded actuarial accrued liability of approximately $61,235 (1.64% of current covered payroll). The City contributed employer contributions of $664,447 (17.71% of current base salaries); and employee contributions were $78,457 (2.00% of current base salaries), of which the City contributed $15,937 (.40% of current base salaries). 29 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Trend Information: Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Within the City's financial statement, ten years of historical trend information are required. 1988-89 is the first year that this actuarial information has been made available by SBCERA. Until ten years of data are available, as many years as are available are presented as follows (in $000's) for SBCERA as a whole: 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 Net Assets Available for Benefits $737,515* $794,849 $899,799 $983,894 $1,204,258 $1,284,346 $1,512,361 $2,602,022 Pension Benefit Obligation $888,738 $1,017,149 $1,155,902 $1,224,652 $1,354,021 $1,542,565 $1,669,936 $1,884,514 Net Assets Available 83.26% 90.56% 138.07% $149,763 for Benefits $157,575 $(711,508) $441,641 $460,442 Expressed as a $479,681 Percentage of the Pension Benefit Obligation 82.6% 78.1% 77.8% 80.34% Unfunded (Assets in Excess of) Pension Benefit Obligation $151,223 $222,300 $256,103 $240,758 Annual Base Salaries $280,193 $344,010 $392,683 $435,575 Unfunded (Assets in (Excess of) Pension Benefit Obligation, Expressed as a Percentage of Annual Base Salaries 54.0% 64.6% 65.2% 55.3% Participant Member Contributions *' $44,411 $45,890 $47,404 Participant Member Contributions Expressed as a Percentage of Annual Base Salaries. These contributions were made in accordance with actuarially determined requirements. *' 12.9% 11.7% 10.88% 30 88.9% 83.26% 90.56% 138.07% $149,763 $258,219 $157,575 $(711,508) $441,641 $460,442 $467,983 $479,681 33.9% 56.1% 33.7% (149.6%) $51,342 $36,107 $36,663 $42,189 11.63% 7.84% 7.83% 8.80% CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 * These amounts represent market value. ** This information not available. The City's 1997 contribution represented 1.76 percent of total contributions required of all participating entities. Part -Time Employee Defined Contribution Plan: The City provides pension benefits for all of its part-time employees through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The plan is administered as part of the City's 457 plan. All part-time employees are eligible to participate from the date of employment. Federal legislation requires contributions of at least 7.5 percent to a retirement plan, and City Council resolved to contribute 2.5 percent and employees contribute the remaining 5 percent. The City's contributions for each employee (and interest earned by the accounts) are fully vested immediately. For the year ended June 30, 1997, the City's payroll covered by the plan was $363,147. The City made employer contributions of $9,078 (2.5 percent of current covered payroll), and employees contributed $18,158 (5.0 percent of current covered payroll). These amounts are included in the Agency Fund with the deferred compensation plan of the full-time employees. 7. DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all full-time City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. Assets of the fund totaled $1,316,291 at June 30, 1997. 31 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 8. INSURANCE PROGRAMS The City is a member of the California Joint Powers Insurance Authority (CJPIA). CJPIA is a consortium of cities and other public agencies in California established under the provisions of California Government Code Section 6500, et seq.. CJPIA provides risk coverage for its members through the pooling of risks and purchased insurance. This coverage extends to workers' compensation and general and vehicle liability. CJPIA is governed by a Board consisting of one board member appointed by each member agency. The Board elects officers which meet monthly to supervise and conduct CJPIA affairs. CJPIA maintains a staff headed by a Manager to implement the policies of the Board. In the event of termination and after all claims have been settled, any excess or deficit will be divided among the agencies in accordance with an approved formula. General liability insurance: Annual deposits are paid by member cities and are adjusted retrospectively to cover costs. Each member city, including Chino Hills, self -insures through the CJPIA for the first $20,000 of each loss. However, this self-insurance retention is funded through annual contributions; therefore, the City effectively has no exposure except for specific limits as described herein. Participating cities then share in the next $20,000 to $500,000 per loss occurrence. Specific coverage includes comprehensive and general automotive liability, personal injury, errors and omissions and certain other coverage. Separate deposits are collected from the member cities to cover claims between $500,000 and $10,000,000. These deposits are also subject to retrospective adjustment. Workers' compensation: The workers' compensation program includes pooling of retained losses plus excess insurance. Annual deposits are paid by member cities and are adjusted retrospectively on an annual basis to cover costs and to reflect claims experience of both the individual member and the pool. The annual retrospective computation of the deposit is based on (1) the member's own losses up to its retention level plus, (2) a pro rata share of all losses from the retention level up to $100,000 plus, (3) a pro rata share of general/administrative expenses and losses between $100,000 and $500,000. The City of Chino Hills has a retention level of $50,000, and all claims up to that level are paid by the City. However, this self-insured retention is funded through annual contributions; therefore, the City effectively has no exposure except for specific limits as described- herein. escribedherein. Benefits from $50,000 to $500,000 are covered by the pool. Excess insurance covers claims from $500,000 up to the statutory benefits schedule under California Workers' Compensation Law. In addition to this coverage, workers' compensation claims arising out of employer liability are covered up to $5,000,000 per occurrence. 32 W CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 There have been no significant changes in insurance coverage as compared to last year and settlements have not exceeded coverage in each of the past three fiscal years, except as explained in Note 9. The following is a summary of the changes in the claims liability over the past two fiscal years: Claims payable, June 30, 1995 $1,105,279 Payments (122,809) Claims payable, June 30, 1996 982,470 Payments (122,808) Claims payable, June 30, 1997 $ 859,662 CHANGES IN LONG-TERM DEBT Governmental Funds The following is a summary of the changes in the General Long -Term Debt Account Group for the year ended June 30, 1997: Compensated Absences Advances from Developers Installment Obligation Due Enterprise Fund Development Fee Program Obligations Claim Payable (Note 8) Capital Lease Obligations Certificates of Participation Balance at Balance at July 1, 1996 Additions Deletions June 30, 1997 $ 224,411 $ 14,501 $ 209,910 1,429,061 324,959 1,104,102 901,584 23,479,736 982,470 5,043 1,525,000 $5,157,846 2,837,390 122,808 5,043 355,000 901,584 25,800,192 859,662 1,170,000 Totals $28,547,305 $5,157,846 $3,659,701 $30,045,450 Compensated Absences: The City's policies relating to compensated absences are described in Note 1 of the Notes to Financial Statements. This liability will be paid in future years from fixture resources. 20$ 9,910 33 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Advances from Developers: Advances from developers included in the General Long -Term Debt Account Group represent monies owed to developers for development fees collected in advance. The City will repay these developers by allowing them to use the $2,700 credit per unit against their development fees as they obtain their building permit releases. $1,104,102 Installment Obligation due Enterprise Fund: In February 1992, City Council approved the sale of land owned by the Enterprise Fund for the construction of the Civic Center. The source of funds for payment to the Enterprise Fund has not been identified. Payment will be made as funds become available. $901,584 Development Fee Program Obligations: The City has executed many agreements with outside developers requiring developers to provide funding up front for the costs of backbone infrastructure (major thoroughfares, water and sewer mains, etc.) concurrent with the development of their residential and commercial projects. This up front funding is generally in the form of the developer constructing the backbone infrastructure. Future development fees will be used to reimburse the developers (either as credits against fees owed or cash reimbursements if not fully credited) for their costs. A liability has been recorded for the project costs incurred to date, including estimated construction in progress. $25,800,192 Claim Payable: This liability represents a settlement agreement with Industry Urban Development Agency related to the acquisition of land and rights of way used for what is now Chino Hills Parkway. This liability will be repaid in ten (10) equal installments of $122,808 payable on January 15 of each year, commencing January 15, 1995, which includes interest at the rate in effect pursuant to Section 1268.350 of the Code of Civil Procedure.85$ 9.662 34 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Chino Hills Capital Improvement Corporation - Certificates of Participation: On September 1, 1992, the Chino Hills Capital Improvement Corporation (Corporation) issued 1992 $2,490,000 Certificates of Participation in order to provide lease financing to the City of Chino Hills for (1) the acquisition and construction of public facilities, (2) a debt service reserve fund, and (3) to pay the costs of issuing the Certificates. Pursuant to the lease agreement between the City and the Corporation, the City is required to pay the Trustee specified lease payments for use of the facilities, which amounts are intended to be sufficient in both time and aggregate amount to pay, when due, the principal and interest with respect to the Certificates. The registered Certificates were issued in denominations of $5,000 each or any integral multiple thereof. Interest is payable semi-annually, at rates ranging from 3.7% to 6%, commencing March 1, 1993, and principal is payable annually commencing September 1, 1993 in amounts ranging from $310,000 to $410,000. The Certificates, including portions thereof, maturing on September 1, 1996, and thereafter are subject to redemption and payment prior to maturity, upon instructions from the City, at the respective redemption prices set out below: Redemption Dates Redemption Price September 1, 1996 and March 1, 1997 101% September 1, 1997 and each March 1 and September 1 thereafter 100% The debt service requirements to maturity on the Certificates of Participation are as follows: Year Ending June 30, Principal Interest Total 1998 $ 370,000 $ 54,737 $ 424,737 1999 390,000 34,300 424,300 2000 410,000 11,788 421,788 Totals 1 170 00010$ 0,825 825 JL2L0.,.825 35 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Proprietary Funds The following is a summary of the changes in enterprise fund debt for the year ended June 30, 1997: Certificates of Participation: On May 1, 1996 the City issued $21,645,000 in certificates of participation. The certificates consist of serial certificates maturing in principal amounts of $420,000 to $1,440,000 beginning June 1997 through June 2015 with interest rates ranging from 4.65% to 7.0% and term certificates of $4,440,000 maturing on June 1, 2018 with an interest rate of 5.6%. The certificates were issued in order to advance refund $22.4 million of outstanding installment obligation due the Inland Empire Public Facilities Corporation and Water Facilities Authority. There is no principal amount outstanding on the original debt at June 30, 1997. The annual requirements to amortize the Certificates of Participation outstanding, as of June 30, 1997 are as follows: Year Long Term Debt 1998 Balance at 1999 1,740,455 Balance at 1,739,155 July 1, 1996 Additions Deletions June 30, 1997 Thereafter 27,803,490 Advances for Construction $ 331,066 $ 63,964 $ 267,102 Development Program Obligations 3,187,547 $344,252 1,122,325 2,409,474 Certificates of Participation 21,645,000 420,000 21,225,000 Compensated Absences (Note 1) 72,987 20,632 14,585 79,034 Totals $25,236,600 $364,884 $1,620,874 23,980,610 Deferred Amount on Refunding (1,062,443) Total Long -Term Debt $22,918,167 Certificates of Participation: On May 1, 1996 the City issued $21,645,000 in certificates of participation. The certificates consist of serial certificates maturing in principal amounts of $420,000 to $1,440,000 beginning June 1997 through June 2015 with interest rates ranging from 4.65% to 7.0% and term certificates of $4,440,000 maturing on June 1, 2018 with an interest rate of 5.6%. The certificates were issued in order to advance refund $22.4 million of outstanding installment obligation due the Inland Empire Public Facilities Corporation and Water Facilities Authority. There is no principal amount outstanding on the original debt at June 30, 1997. The annual requirements to amortize the Certificates of Participation outstanding, as of June 30, 1997 are as follows: Year Long Term Debt 1998 $ 1,733,605 1999 1,740,455 2000 1,739,155 2001 1,736,630 2002 1,745,475 Thereafter 27,803,490 36 10 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Loniz Term Debt Subtotal 36,498,810 Less interest (15,273,810) Total Principal 21,225,000 Deferred amount on refunding (1,062,443) $20,162,557 Advances for Construction: In the Agreement for the acquisition of the Pomona Valley Water Company ("Pomona Valley"), the City agreed to assume responsibility for repayment of certain cash advances made to Pomona Valley by various developers and individuals under individual contracts for the construction of main extension pipeline and special facilities. The advances are to be repaid, without interest, based on a percentage of water revenues received from the main extension pipeline payable annually, and within 20 years of the origination of each individual advance with final payment on all advances by the year 2003. Development Program Obligations: The City has executed many agreements with outside developers requiring developers to provide funding up -front for the costs of backbone infrastructure (major thoroughfares, water and sewer mains, etc.) concurrent with the development of their residential and commercial projects. This up front funding is generally in the form of the developer constructing the backbone infrastructure. Future development fees will be used to reimburse the developers for their up -front funding. A liability has been recorded for the project costs incurred to date, including estimated construction in progress. CONTINGENCIES A. Liti ag tion: $267,102 2 409 474 The City is involved in several pending lawsuits of a nature common to many similar jurisdictions. City management estimates that potential claims against the City, not covered by insurance, will not have a material adverse effect on the financial statements of the City. 37 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 B. Voter Initiatives: 1. The California Supreme Court issued an opinion in December 1995 relating to the validity of Proposition 62 which was passed by the voters in 1986 (the Guardino case). This case could potentially affect the City with respect to the monies the City received and will receive from the County of San Bernardino pursuant to the Measure I voter -approved initiative, and the monies the City has received and will receive from its business license fees and from its property transfer tax. The City cannot further assess its potential liabilities at this time until additional opinions are issued by the State of California courts. 2. Proposition 218, which was approved by the voters in November 1996, will regulate the City's ability to impose, increase and extend taxes, assessments and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future by the voters. Therefore, the City's ability to finance the services for which the taxes, assessments, and fees were imposed may be significantly impaired. The taxes, fees, and assessments that are subject to the provisions of Proposition 218 that the City currently imposes for its own benefit or as an agent for a special district, or receives from other governmental agencies potentially include the Measure I taxes, business license fees, community facilities districts special taxes, landscape and lighting district assessments, streetsweeping assessments, water utility fees, sewer utility fees, and refuse disposal fees. Certain language in the initiative is unclear as to the scope and impact of the proposition. Future court rulings or state legislation may clarify these issues. At this time it is uncertain how Proposition 218 will affect the City's ability to maintain or increase the revenue it receives from taxes, assessments and fees. 11. ASSESSMENT DISTRICT AND COMMUNITY FACILITIES DISTRICT BOND ISSUES Excluded from the General Long -Term Debt Account Group are special assessment and special tax bonds related to various special assessment districts and community facilities districts included within the City. The City acts as an agent for the property owners benefitted by the projects financed from the bond proceeds in collecting the assessments and taxes, forwarding the collections to bond holders and initiating foreclosure proceedings, if appropriate. Neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds and the City is not legally obligated for payment of the bonds. Included in the Agency fund is $20,559,363 of funds due to bondholders relating to these obligations. 38 CITY OF CHINO HELLS Notes to Financial Statements (Continued) June 30, 1997 The debt outstanding at June 30, 1997 consists of the following individual issues: 1988 $5,310,000 Community Facilities District No. 2, Special Tax Bonds, Series "A", due in annual installments of $95,000 to $615,000 through September 1, 2011; interest ranging from 5.50% to 7.65% $ 4,905,000 1991 $5,435,000 Community Facilities District No. 9, Special Tax Bonds, Series "A", due in annual installments of $35,000 to $645,000 through September 1, 2015; interest ranging from 6.00% to 8.38% 5,320,000 1991 $17,065,000 Community Facilities District No. 9, Special Tax Bonds, Series "B", due in one installment of $17,065,000 on September 1, 1998; interest rate at 8.00% 15,425,000 1993 $9,460,000 Community Facilities District No. 1, Special Tax Refunding Bonds due in annual installments of $10,000 to $975,000 through September 1, 2011; interest ranging from 5.3% to 6.25% 8,935,000 1993 $2,880,000 Community Facilities District No. 4, Special Tax Refunding Bonds due in annual installments of $5,000 to $305,000 through September 1, 2011; interest ranging from 3.5% to 5.9% 2,725,000 1993 $2,090,000 Community Facilities District No. 5, Special Tax Refunding Bonds due in annual installments of $50,000 to $230,000 through September 1, 2011; interest ranging from 5.20% to 6.25% 1,985,000 1993 $3,095,000 Community Facilities District No. 8, Special Tax Refunding Bonds due in annual installments of $10,000 to $320,000 through September 1, 2011; interest ranging from 3.5% to 5.9% 2,815,000 1994 $7,265,000 Reassessment District of 1994, Limited Obligation Bonds due in annual installments of $380,000 to $420,000 through September 2, 2008; interest ranging from 5.5% to 7.5%. 5,510,000 12 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 1995 $26,440,000 Reassessment District of 1995, Limited Obligation Bonds due in annual installments of $120,000 to $975,000 through September 2, 2021; interest ranging from 4.9% to 7.2%. 24,235,000 $71,855,000 JOINT VENTURE On February 19, 1980, the Water Facilities Authority (Authority) was created under a joint exercise of powers agreement between the CSA 70 Zone CH (now part of the City of Chino Hills) and other local entities. It was formed for the acquisition and construction of facilities directly benefitting the participants by supplying water to the inhabitants within the boundaries of its members. Thus, each participant has an ongoing financial interest in the Authority. The governing Board of Directors consists of one member appointed from each participating agency and has approval of all budget and finance activities. The City's investment in the Authority has been recorded under the equity method of accounting and is shown as an investment in joint venture in the Water Enterprise Fund. On October 1, 1986, the Authority issued $33,715,000 Refunding Certificates of Participation, 1986 Series A (Agus de Lejos Project), with fixed interest rates varying between 4% and 6.5%. Final maturity is due in 2015. The outstanding balance at June 30, 1997 is $26,520,000. Each participant in the joint venture has pledged gross revenues from its respective Enterprise Fund and has agreed to restrictive covenants that establish rates and charges for each respective water enterprise fund at levels sufficient to maintain net revenues equal to at least 1.25 times the aggregate amount of each respective party's installment payments to the Authority as well as any parity debt which shall become due and payable within the succeeding twelve months. Each City has an ongoing financial responsibility as each has assumed a portion of the Authority's debt. During 1995-96, the City issued Certificates of Participation to advance refund the City's portion of this debt (See Note 9). The City's investment in the Authority at June 30, 1997 is $4,832,231. Audited financial information of the Authority is presently unavailable for the fiscal year ended June 30, 1997. Audited financial information of the Authority for the fiscal year ended June 30, 1996 is summarized as follows: Total assets Total liabilities Total fund equity 40 $47,830,234 $31,444,712 $16,385,522 13 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Operating revenues Operating expenses Non-operating revenue (net) Net Loss Property, plant and equipment (net) Net working capital Capital contributions $ 9,210,889 (10,159,140) 316,719 $ (631,532) $36,276,360 $ 6,617,364 $15,856,029 The participants and their audited financial contributions through June 30, 1996 were as follows: Financial statements of the Authority can be obtained from the offices of Vavrinek, Trine, Day and Company, CPA, 8270 Aspen Street, Rancho Cucamonga, CA 91730. LEASE PAYMENTS RECEIVABLE Leases include certain water improvements, facilities, capacity rights and real and related personal property to the City of Chino and the Monte Vista Water District. The lease provides that, upon satisfaction of the terms of the agreement, legal title to the facilities will transfer to the lessees. The following is a schedule of minimum lease payments receivable by years as of June 30,1997: Year Ending June 30, 1998 $ 429,675 1996 430,835 Amount Percent City of Chino Hills $ 5,039,688 31.78% Monte Vista Water District 2,329,200 14.69 City of Chino 1,943,424 12.25 City of Ontario 3,995,934 25.20 City of Upland 2,547,783 16.08 Total $15,856,029 100.00% Financial statements of the Authority can be obtained from the offices of Vavrinek, Trine, Day and Company, CPA, 8270 Aspen Street, Rancho Cucamonga, CA 91730. LEASE PAYMENTS RECEIVABLE Leases include certain water improvements, facilities, capacity rights and real and related personal property to the City of Chino and the Monte Vista Water District. The lease provides that, upon satisfaction of the terms of the agreement, legal title to the facilities will transfer to the lessees. The following is a schedule of minimum lease payments receivable by years as of June 30,1997: Year Ending June 30, 1998 $ 429,675 1999 430,835 2000 429,519 2001 429,697 2002 430,864 41 14. 15. CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Thereafter Minimum lease payments Less unearned interest Lease receivable INSTALLMENT RECEIVABLE 432,827 2,583,417 (665,757) J1,917,660 In February 1992, the City Council approved the sale of land owned by the Enterprise Fund to the General Fund for the construction of the Civic Center. Payment will be made as funds become available. (See Note 9). CONTRIBUTED CAPITAL Enterprise Funds: Enterprise Funds' contributed capital is the portion of equity derived from pipeline constructed and serviced by developers and donated to the City. Such equity also includes connection fees received from developers and customers to join new or extend existing water systems, as well as proceeds from special assessment bonds issued to finance utility plant in service. The following is a summary of the changes in contributed capital: Balance at July 1, 1996 As Restated Deletions Balance at (See Note 17) Additions (Depreciation) June 30, 1997 $71,170,291 U.586 053 $1,376,505 $75,379,839 Internal Service Funds: The Internal Service Funds' contributed capital consists of cash and fixed assets donated from other funds and the General Fixed Assets Account Group. The following is a summary of the changes in contributed capital. Balance at July 1, 1996 As Restated Deletions Balance at (See Note 17) Additions (Depreciation) June 30, 1997 X2,005,684 66$ 2,697 13$ 9,434 $2,528,947 42 16 17. CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 RESIDUAL EQUITY TRANSFERS Residual Residual Equity Equity Transfer In Transfer Out General Fixed Assets Account Group $120,969 General Fund $ 875 258,417 Special Revenue Funds: Lighting and Landscape District 193,705 205,198 Development Fee 103,564 Capital Projects Fund: CFD #2 Los Ranchos 62,844 Enterprise Funds: Water Utility 141,724 Sewer Utility 7,452 Agency Fund: CFD#2 Los Ranchos 62,844 Equity transfers recorded as contributed capital in Enterprise Funds 103,564 Equity transfers recorded as contributed capital in Internal Service Fund 539,180 Total $900,168 $900,168 PRIOR PERIOD ADJUSTMENTS A. The Water Enterprise Fund did not reduce its expense for a reimbursement due from the Water Facilities Authority for water purchases of $378,599 during fiscal year 1995-96. B. The Water and Sewer Enterprise Funds did not record contributed assets of $32,800,851 and related accumulated depreciation of $4,327,401 as of June 30, 1996. C. The Equipment Maintenance Internal Service Fund did not record fiscal year 1995- 96 depreciation expense on contributed assets as a reduction of contributed capital. 43 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 Beginning retained earnings and contributed capital have been restated as follows: Balance as Special Originally Reported Prior Period Restated June 30, 1996 Adjustments June 30, 1996 Retained Earnings Fund Enterprise Funds $10,037,711 $ 378,599 $10,416,310 Internal Service Funds 216,917 107,242 324,159 Contributed Capital Enterprise Funds 42,696,841 28,473,450 71,170,291 Internal Service Funds 2,112,926 (107,242) 2,005,684 18. FUND BALANCE RESERVES AND DESIGNATIONS Fund balance reserves and designations are as follows: Desi n ated: Structure replacement $11,201,365 Capital improvements 579,200 Cash flow $3,225,244 2,233,818 Assessment District Lien Payoffs 2,104,592 Contingencies 5,863,139 Total Designated $9,088,383 $16,118,975 44 Special Debt Capital General Revenue Service Projects Fund Funds Fund Funds Reserved: Non-current portion of assessments receivable $1,250,909 Encumbrances $234,819 80,285 $197,603 Debt service $252,997 Total Reserved23$ 4,819 $1,331,194252 997 $197,603 Desi n ated: Structure replacement $11,201,365 Capital improvements 579,200 Cash flow $3,225,244 2,233,818 Assessment District Lien Payoffs 2,104,592 Contingencies 5,863,139 Total Designated $9,088,383 $16,118,975 44 CITY OF CHINO HILLS Notes to Financial Statements (Continued) June 30, 1997 19. SEGMENT INFORMATION Water Utility Sewer Utility Total Operating revenues $10,474,140 $ 3,468,763 $ 13,942,903 Depreciation and amortization 1,641,421 652,232 2,293,653 Operating income 193,970 374,443 568,413 Operating transfers out 21,000 4,000 25,000 Net income (loss) (666,120) 629,098 (37,022) Current capital contributions 4,863,106 722,947 5,586,053 Fixed asset additions 1,046,321 688,955 1,735,276 Net working capital 12,494,212 5,240,648 17,734,860 Total assets 85,403,815 27,289,617 112,693,432 Total equity 61,437,589 25,548,867 86,986,456 45 This Page Intentionally Left Blank 46 GENERAL FUND The General Fund accounts for all financial resources and transactions except those required to be accounted for in other funds. 47 CITY OF CHINO HILLS Comparative Balance Sheets General Fund June 30, 1997 and 1996 Assets Cash and investments Receivables (net, where applicable of allowance): Accounts Interest Taxes Due from other funds Due from other agencies Due from other governments Total Assets Liabilities and Fund Balance Liabilities: Accounts and contracts payable Salaries and benefits payable Due to other funds Compensated absences payable Due to other governments Total Liabilities Fund Balance: Reserved for encumbrances Unreserved: Designated for cash flow Designated for contingencies Undesignated Total Fund Balance Total Liabilities and Fund Balance 48 1997 1996 $ 9,328,503 $ 11,677,116 93,905 158,043 371,970 328,380 202,138 196,924 84,292 257,356 6,639 6,639 210,043 175,984 $ 10,297,490 $ 12,800,442 $ 785,680 $ 712,737 161,443 164,786 2,617 41,486 15,430 18,340 965,170 937,349 234,819 192,954 3,225,244 3,463,100 5,863,139 7,961,104 9,118 245,935 9,332,320 11,863,093 $ 10,297,490 $ 12,800,442 CITY OF CHINO HILLS Comparative Statements of Revenues, Expenditures and Changes in Fund Balance General Fund For the Years Ended June 30, 1997 and 1996 Expenditures: Current: General government Public safety Public works Community development Cultural and leisure Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balance - Beginning of Year Equity transfers in Equity transfers out Fund Balance - End of Year 49 3,386,140 3,404,575 1,827,902 2,466,175 338,806 4,362 55 1996 $ 5,030,839 1,492,243 1,203,452 852,757 153,720 527,059 9,260,070 3,407,736 3,130,731 1,992,787 1,769,414 305,564 11,428,015 10,606,232 1,139,278 (1,346,162) 678,798 1997 Revenues: (122,286) Taxes $ 5,227,280 Licenses and permits 1,951,966 Use of money and property 1,187,000 Charges for services 3,448,596 Fines and forfeitures 149,952 Other 602,499 Total Revenues 12,567,293 Expenditures: Current: General government Public safety Public works Community development Cultural and leisure Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balance - Beginning of Year Equity transfers in Equity transfers out Fund Balance - End of Year 49 3,386,140 3,404,575 1,827,902 2,466,175 338,806 4,362 55 1996 $ 5,030,839 1,492,243 1,203,452 852,757 153,720 527,059 9,260,070 3,407,736 3,130,731 1,992,787 1,769,414 305,564 11,428,015 10,606,232 1,139,278 (1,346,162) 678,798 2,756,233 (4,091,307) (122,286) (3,412,509) 2,633,947 (2,273,231) 11,863,093 875 (258,417) $ 9,332,320 1,287,785 10,699,414 (124,106) $ 11,863,093 CITY OF CHINO HILLS Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund For the Year Ended June 30, 1997 Revenues: Taxes Licenses and permits Use of money and property Charges for services Fines and forfeitures Other Total Revenues Expenditures: General Government: City council City manager City clerk City attorney Finance Personnel Risk management Non -departmental 11,440,300 114,700 501,250 567,700 3 96, 000 926,800 149,350 678,100 644,417 Total General Government 3,978,317 Public Safety: Law enforcement Fire protection Animal control Total Public Safety Public Works: Public works Community Development: Community development Building and safety Planning Code enforcement Economic development Total Community Development 12,567,293 90,248 418,109 353,603 389,796 895,904 137,480 651,607 449,393 3,386,140 1,126,993 24,452 83,141 214,097 6,204 30,896 11,870 26,493 195,024 592.177 3,302,400 3,210,173 Variance 130,000 129,280 Favorable Budget Actual (Unfavorable) 3,497,600 3,404,575 $ 4,771,900 $ 5,227,280 $ 455,380 1,406,800 1,951,966 545,166 912,500 1,187,000 274,500 3,647,300 3,448,596 (198,704) 182,700 149,952 (32,748) 519,100 602,499 83,399 11,440,300 114,700 501,250 567,700 3 96, 000 926,800 149,350 678,100 644,417 Total General Government 3,978,317 Public Safety: Law enforcement Fire protection Animal control Total Public Safety Public Works: Public works Community Development: Community development Building and safety Planning Code enforcement Economic development Total Community Development 12,567,293 90,248 418,109 353,603 389,796 895,904 137,480 651,607 449,393 3,386,140 1,126,993 24,452 83,141 214,097 6,204 30,896 11,870 26,493 195,024 592.177 3,302,400 3,210,173 92,227 130,000 129,280 720 65,200 65,122 78 3,497,600 3,404,575 93,025 2,254,309 1,827,902 426,407 50 3 02, 700 1,223,857 609,100 59,200 243,500 2,438,357 299,751 1,523,185 473,341 55,473 114,425 2,466,175 2,949 (299,328) 135,759 3,727 129,075 (27,818) (Continued) CITY OF CHINO HILLS Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund (Continued) For the Year Ended June 30, 1997 Cultural and Leisure: Recreation services Community services Total Cultural and Leisure Debt Service: Principal retirement Interest and fiscal charges Total Debt Service Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Budget Variance Favorable Actual (Unfavorable) 91,700 80,544 354,700 258,262 446,400 338,806 4,362 4,362 55 55 4,417 4,417 11,156 4r% 11'tR M7 5911 12,619,400 11,428,015 1,191,3 85 (1,179,100) 1,139,278 2,318,378 900,700 678,798 (221,902) (4,787,000) (4,091,307) 695,693 (3,886,300) (3,412,509) 473,791 Deficiency of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (5,065,400) (2,273,231) 2,792,169 Fund Balance - Beginning of Year Equity transfers in Equity transfers out Funds Balance - End of Year 11,863,093 11,863,093 875 875 (258,417) (258,417) $ 6,797,693 $ 9,332,320 $ 2,534,627 51 This Page Intentionally Left Blank 52 SPECIAL REVENUE FUNDS LiOting_and Landscape District - To account for receipts and expenditures of money in benefit assessment district zones for operating expenditures, maintenance, and capital outlay for street lighting, landscaping, and parks located within the district. CSA - To account for receipts and expenditures of money for landscape and other maintenance in the area of the City formerly designated as County Service Area No. 19. Development Fee - To account for receipts and expenditures of money in the facilities development program which provides for the construction of various infrastructure facilities within the City and is financed from fees collected from the development of residential and commercial properties. FBA - To account for receipts and expenditures of money in the facilities benefit assessment program which provides for the acquisition of land (on which infrastructure facilities are constructed) and is financed from fees collected from the development of residential and commercial properties. Parkland Fee - To account for receipts and expenditures of money in the park development fee program which provides funds for the acquisition of land and construction of parks within the City and is financed from fees collected from the development of residential and commercial properties. Traffic Signal Fee - To account for the receipts and expenditures of money in the traffic signal fee program which provides funds for the installation of traffic signals within the City. Gas Tax - To account for receipts and expenditures of money apportioned under the State of California Streets and Highways Code Sections 2105, 2106, and 2107. Air Quality - To account for receipts and expenditures of money in the State and Federally mandated program to improve air quality within the South Coast Air Quality Management District. Federal Grants - To account for receipts and expenditures of money for certain federal grants received by the City. Measure I - To account for receipts and expenditures of money in providing qualifying street maintenance activities in conformance with provisions of the voter approved Measure I '/s cent sales tax levy. Solid Waste - To account for receipts and expenditures of money for the collection, transportation, and disposal, via contract, of solid waste materials. Community Services - To account for receipts and expenditures of money in providing cultural and recreational programs. Street Sweeping - To account for receipts and expenditures of money in providing street sweeping services as financed through assessment fees collected from residential and commercial property owners. Frontline Policing - To account for the receipts and expenditures of money for the Frontline Policing Grant received from the State of California for qualifying police activities. Miscellaneous Grants - To account for receipts and expenditures of money for various grants received from Local, State, and Federal agencies. 53 CITY OF CHINO HILLS Combining Balance Sheet All Special Revenue Funds June 30, 1997 Assets Cash and investments Accounts receivable Interest receivable Taxes receivable Grants receivable Special assessments receivable Deferred special assessments receivable Due from other funds Due from other governments Total Assets Liabilities and Fund Balances Liabilities: Accounts payable Salaries and benefits payable Retentions payable Due to other funds Due to other governments Deferred revenue Total Liabilities Fund Balances: Reserved: Long-term deferred special assessments receivable Encumbrances Unreserved: Designated for: Structure replacement Capital improvements Assessment district lien payoffs Cash flow Undesignated Total Fund Balances Total Liabilities and Fund Balances Lighting and Landscape District CSA $ 13,631,969 $ 58,590 3,266 226,646 916 61,927 92,600 149 27,606 Development Fee FBA $ 9,239,211 $ 1,860,068 130,117 331,625 1,250,909 29,396 $ 14,044,014 $ 59,655 $ 10,951,862 $ 1,889,464 $ 412,612 55,498 100,007 68,495 10,927,365 2,233,818 246,219 $ 59,655 13,475,897 59,655 $ 1,107,461 $ 34,704 1,107,461 34,704 1,250,909 4,452 579,200 2,104,592 5,905,248 1,854,760 9,844,401 1,854,760 $ 14,044,014 $ 59,655 $ 10,951,862 $ 1,889,464 54 Parkland Traffic Fee Signal Fee Gas Tax $ 2,149,736 $ 138,797 $ 1,081,993 32,735 2,829 19,566 94,454 Air Federal 902,013 Quality Grants Measure I $ 154,437 $ 37,082 $ 1,085,097 2,272 278 18,301 69,979 24,962 12,876 30,791 $ 2,182,471 $ 141,626 $ 1,196,013 $ 169,585 $ 93,113 $ 1,173,377 $ 20,000 20,000 274,000 $ 30,696 36,242 6,209 19,700 92,847 $ 2,182,471 $ 141,626 902,013 $ 169,585 266 $ 1,173,377 2,182,471 141,626 1,176,013 169,585 266 1,173,377 $ 2,182,471 $ 1411626 $ 1,196,013 $ 169,585 $ 93,113 $ 1,173,377 (Continued) 55 CITY OF CHINO HILLS Combining Balance Sheet All Special Revenue Funds (Continued) June 30, 1997 56 Solid Community Street Frontline Assets Waste Services Sweeping Policing Cash and investments $ 302,967 $ 82,487 $ 824,226 $ 87,282 Accounts receivable 412,431 Interest receivable 12,998 1,406 Taxes receivable Grants receivable Special assessments receivable 4,866 Deferred special assessments receivable Due from other funds Due from other governments Total Assets Liabilities and Fund Balances $ 715,398 $ 82,487 $ 842,090 $ 88,688 Liabilities: Accounts payable $ 683,978 $ 36,984 $ 26,627 Salaries and benefits payable 20,181 Retentions payable Due to other funds 31,420 Due to other governments Deferred revenue Total Liabilities 715,398 57,165 26,627 Fund Balances: Reserved: Long-term deferred special assessments receivable Encumbrances 2,328 5,010 Unreserved: Designated for: Structure replacement Capital improvements Assessment District lien payoffs Cash flow Undesignated 22,994 810,453 $ 88,688 Total Fund Balances 25,322 815,463 88,688 Total Liabilities and Fund Balances $ 715,398 $ 82,487 $ 842,090 $ 88,688 56 Miscellaneous $ 2,306,608 Totals Grants 1997 1996 $ 8,305 $ 30,742,247 $ 21,777,513 123,154 415,697 402,285 13,557,355 477,460 317,664 4,063 164,433 148,446 131,459 86,889 89,447 429,240 53,858 1,250,909 1,117,450 27,606 6,451 123,154 166,821 281,722 $ 131,459 $ 33,761,302 $ 24,194,836 $ 4,242 $ 2,306,608 $ 1,142,178 186,358 75,679 75,162 579,200 30,696 9,926 123,154 310,823 421,669 13,557,355 6,209 5,888 4,063 23,763 7,989 131,459 2,753,778 1,662,812 1,250,909 1,117,450 80,285 186,358 11,201,365 10,776,458 579,200 96,800 2,104,592 2,233,818 2,156,455 13,557,355 8,198,503 31,007,524 22,532,024 $ 131,459 $ 33,761,302 $ 24,194,836 57 CITY OF CHINO HILLS Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Special Revenue Funds For the Year Ended June 30, 1997 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public works Cultural and leisure Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances, Beginning of Year Equity transfers in Equity transfers out Fund Balances, End of Year Lighting and Landscape Development District CSA Fee FBA $ 5,137,752 $ 10,109 780,542 2,907 $ 476,482 $ 98,674 10,016,165 492,197 47,884 6,092,001 13,016 11,745,953 590,871 4,722,553 473,036 32,678 7,778,327 141,809 1,766 877,590 682 2,900,233 378,328 9 2,312,850 36,526 4,725,010 14,342,036 589,341 1,366,991 13,016 (2,596,083) 1,530 4,844,265 108,350 3,916,600 (963,179) (47,464) (26,633) (963,179) 8,713,401 81,717 403,812 13,016 6,117,318 83,247 13,083,578 46,639 3,830,647 1,771,513 193,705 (205,198) (103,564) $ 13,475,897 $ 59,655 $ 9,844,401 $ 1,854,760 58 Parkland Traffic Air Federal Fee Signal Fee Gas Tax Quality Grants Measure I $ 85,837 $ 6,360 $ 60,667 $ 6,787 $ 588 $ 61,282 928,420 52,282 369,154 429,604 1,103,082 169,607 1,188,919 175,967 989,087 59,069 369,742 490,886 4,000 2,100 322 418,854 4,000 2,100 419,176 1,184,919 173,867 989,087 59,069 (49,434) 490,886 49,700 (46,260) (763,338) (376,182) (46,260) (763,338) 49,700 (376,182) 1,184,919 127,607 225,749 59,069 266 114,704 997,552 14,019 950,264 110,516 1,058,673 $ 2,182,471 S 141,626 S 1,176,013 $ 169,585 $ 266 $ 1,173,377 (Continued) 59 CITY OF CHINO HILLS Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public works Cultural and leisure Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances, Beginning of Year Equity transfers in Equity transfers out Fund Balances, End of Year Solid Community Street Frontline Waste Services Sweeping Policing $ 289,033 $ 22,802 38,599 $ 4,713 115,797 $ 3,026,595 462,110 240 3,026,595 485,152 327,632 120,510 1,390 3,026,595 161,832 508,790 21,124 3,026,595 508,790 161,832 22,514 (23,638) 165,800 97,996 30,000 (9,308) 30,000 (9,308) 6,362 165,800 88,688 18,960 649,663 $ - $ 25,322 $ 815,463 $ 88,688 Miscellaneous Totals 102,349 Grants 1997 1996 (308,762) $ 5,436,894 $ 5,150,908 $ 22,532,024 1,646,240 1,262,699 $ 98,329 1,993,586 1,992,328 11,781,051 7,593,825 3,536,589 3,379,793 10,825 1,379,369 92,397 98,329 25,773,729 19,471,950 8,590,557 1,712 102,349 10,825 8,852,473 8,483,607 (308,762) 508,790 562,157 $ 22,532,024 7,920,136 1,811,813 900,480 176,515 3,279,243 4,310,188 2,349,385 752,349 10,825 23,812,219 16,198,978 87,504 1,961,510 3,272,972 4,952,615 400,124 3,996,300 1,323,622 (87,504) (2,319,868) (4,420,830) (87,504) 6,629,047 (2,697,084) 8,590,557 575,888 22,532,024 22,390,977 193,705 (308,762) (434,841) $ - $ 31,007,524 $ 22,532,024 61 CITY OF CHINO HILLS Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds For the Year Ended June 30, 1997 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public works Cultural and leisure Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances - Beginning of Year Equity transfers in Equity transfers out Fund Balances - End of Year Lighting and Landscape District Variance Favorable Budget Actual (Unfavorable) $ 4,870,300 $ 5,137,752 $ 267,452 454,300 780,542 326,242 100,000 47,884 (52,116) 86,500 125,823 39,323 5,511,100 6,092,001 580,901 5,641,009 4,722,553 918,456 10,700 1,766 8,934 682 682 9 9 5,652,400 4,725,010 927,390 (141,300) 1,366,991 1,508,291 (4,175,700) (963,179) 3,212,521 (4,175,700) (963,179) 3,212,521 (4,317,000) 403,812 4,720,812 13,083,578 13,083,578 193,705 193,705 (205,198) (205,198) $ 8,766,578 $ 13,475,897 $ 4,709,319 62 914,600 CSA 441,564 7,778,400 Development Fee 73 951,600 877,590 Variance 3,168,200 2,900,233 Variance 2,358,500 2,312,850 Favorable 15,171,300 14,342,036 Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 10,500 $ 10,109 $ (391) 3,916,600 (1,318,700) 700 2,907 2,207 $ 303,900 $ 476,482 $ 172,582 10,653,600 10,016,165 (637,435) 1,410,800 1,253,306 (157,494) 11,200 13,016 1,816 12,368,300 11,745,953 (622,347) 914,600 473,036 441,564 7,778,400 7,778,327 73 951,600 877,590 74,010 3,168,200 2,900,233 267,967 2,358,500 2,312,850 45,650 15,171,300 14,342,036 829,264 11,200 13,016 1,816 (2,803,000) (2,596,083) 206,917 4,211,900 4,844,265 632,365 3,916,600 3,916,600 (1,318,700) (47,464) 1,271,236 6,809,800 8,713,401 1,903,601 11,200 13,016 1,816 4,006,800 6,117,318 2,110,518 46,639 46,639 3,830,647 3,830,647 (103,564) (103,564) $ 57,839 $ 59,655 $ 1,816 $ 7,837,447 $ 9,844,401 $ 2,006,954 (Continued) 63 CITY OF CHINO HILLS Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public works Cultural and leisure Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances - Beginning of Year Equity transfers in Equity transfers out Fund Balances - End of Year 64 FBA Variance Favorable Budget Actual (Unfavorable) $ 85,000 $ 98,674 $ 13,674 470,000 492,197 22,197 555,000 590,871 35,871 32,700 32,678 22 141,900 141,809 91 378,400 378,328 72 36,600 36,526 74 589,600 589,341 259 (34,600) 1,530 36,130 141,900 108,350 (33,550) (44,300) (26,633) 17,667 97,600 81,717 (15,883) 63,000 83,247 20,247 1,771,513 1,771,513 $ 1,834,513 $ 1,854,760 $ 20,247 Parkland Fee Variance Favorable Budget Actual (Unfavorable) $ 39,700 $ 85,837 $ 46,137 6,506,200 1,103,082 (5,403,118) 6,545,900 1,188,919 (5,356,981) 4,000 4,000 4,000 4,000 6,541,900 1,184,919 (5,356,981) (4,615,000) 4,615,000 (4,615,000) 4,615,000 1,926,900 1,184,919 (741,981) 997,552 997,552 $ 2,924,452 $ 2,182,471 $ (741,981) 65 Traffic Signal Fee Variance Favorable Budget Actual (Unfavorable) $ 6,360 $ 6,360 $ 538,100 169,607 (368,493) 538,100 175,967 (362,133) 2,100 2,100 2,100 2,100 536,000 173,867 (362,133) (536,000) (46,260) 489,740 (536,000) (46,260) 489,740 127,607 127,607 14,019 14,019 $ 14,019 $ 141,626 $ 127,607 (Continued) CITY OF CHINO HILLS Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public works Cultural and leisure Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Gas Tax Variance Favorable Budget Actual (Unfavorable) $ 11,800 $ 60,667 878,400 928,420 890,200 $ 48,867 50,020 989,087 98,887 Total Expenditures Excess (Deficiency) of Revenues Over Expenditures 890,200 989,087 98,887 Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in 37,800 (37,800) Operating transfers out (1,444,500) (763,338) 681,162 Total Other Financing Sources (Uses) (1,406,700) (763,338) 643,362 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (516,500) 225,749 742,249 Fund Balances - Beginning of Year 950,264 950,264 Equity transfers in Equity transfers out Fund Balances - End of Year $ 433,764 $ 1,176,013 $ 742,249 66 Air Quality Variance Favorable Budget Actual (Unfavorable) $ 4,600 $ 6,787 $ 2,187 54,600 52,282 (2,318) 59,200 59,069 (131) 59,200 59,069 (131) 59,200 59,069 (131) 110,516 110,516 $ 169,716 $ 169,585 $ (131) 67 Federal Grants Variance Favorable Budget Actual (Unfavorable) $ 588 $ 588 $ 678,600 369,154 (309,446) 678,600 369,742 (308,858) 625,500 322 625,178 418,854 (418,854) 625,500 419,176 206,324 53,100 (49,434) (102,534) 46,600 49,700 3,100 46,600 49,700 3,100 99,700 266 (99,434) $ 99,700 $ (99,434) (Continued) CITY OF CHINO HILLS Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public works Cultural and leisure Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances - Beginning of Year Equity transfers in Equity transfers out Fund Balances - End of Year Measure I Variance Favorable Budget Actual (Unfavorable) $ 47,700 $ 61,282 $ 13,582 389,400 429,604 40,204 437,100 490,886 53,786 437,100 490,886 53,786 (832,000) (376,182) 455,818 (832,000) (376,182) 455,818 68 (394,900) 114,704 509,604 1,058,673 1,058,673 $ 663,773 $ 1,173,377 $ 509,604 Solid Waste Variance Favorable Budget Actual (Unfavorable) $ 3,026,600 $ 3,026,595 $ (5) 3,026,600 3,026,595 (5) 2,948,100 3,026,595 (78,495) 2,948,100 3,026,595 (78,495) 78,500 (78,500) 78,500 78,500 $ 78,500 $ - $ 78,500 Community Services Variance Favorable Budget Actual (Unfavorable) $ 84,700 $ 22,802 $ (61,898) 592,500 462,110 (130,390) 240 240 677,200 485,152 (192,048) 684,600 508,790 175,810 684,600 508,790 175,810 (7,400) (23,638) (16,238) 30,000 30,000 30,000 30,000 22,600 6,362 (16,238) 18,960 18,960 $ 41,560 $ 25,322 $ (16,238) (Continued) CITY OF CHINO HILLS Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public works Cultural and leisure Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances - Beginning of Year Equity transfers in Equity transfers out Fund Balances - End of Year 70 Street Sweeping Variance Favorable Budget Actual (Unfavorable) $ 219,100 $ 289,033 $ 69,933 30,400 38,599 8,199 249,500 327,632 78,132 255,200 161,832 93,368 255,200 161,832 93,368 (5,700) 165,800 171,500 (5,700) 165,800 171,500 649,663 649,663 $ 643,963 $ 815,463 $ 171,500 Frontline Policin Variance Favorable Budget Actual (Unfavorable) $ 4,713 $ 4,713 $ 115,800 115,797 (3) 115,800 120,510 4,710 1,400 1,390 10 114,400 21,124 93,276 115,800 22,514 93,286 97,996 97,996 (9,308) (9,308) (9,308) (9,308) 88,688 88,688 $ - $ 88,688 $ 88,688 71 Miscellaneous Grants Variance Favorable Budget Actual (Unfavorable) $ 82,900 $ 98,329 $ 15,429 82,900 98,329 15,429 17,800 10,825 6,975 17,800 10,825 6,975 65,100 87,504 22,404 (33,100) (87,504) (54,404) (33,100) (87,504) (54,404) 32,000 (32,000) $ 32,000 $ - $ (32,000) (Continued) CITY OF CHINO HILLS Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public works Cultural and leisure Contributions to assessment districts Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances - Beginning of Year Equity transfers in Equity transfers out Totals Variance Favorable Budget Actual (Unfavorable) $ 5,099,900 $ 5,436,894 $ 336,994 1,062,800 1,646,240 583,440 2,199,700 1,993,586 (206,114) 18,167,900 11,781,051 (6,386,849) 3,719,100 3,536,589 (182,511) 1,497,300 1,379,369 (117,931) 31,746,700 25,773,729 (5,972,971) 626,900 1,712 625,188 9,815,509 8,852,473 963,036 684,600 508,790 175,810 7,920,300 7,920,136 164 1,076,700 900,480 176,220 3,547,282 3,279,243 268,039 2,395,109 2,349,385 45,724 26,066,400 23,812,219 2,254,181 5,680,300 1,961,510 (3,718,790) 4,353,800 4,952,615 598,815 4,031,000 3,996,300 (34,700) (12,999,300) (2,319,868) 10,679,432 (4,614,500) 6,629,047 11,243,547 1,065,800 22,532,024 8,590,557 22,532,024 193,705 (308,762) 7,524,757 193,705 (308,762) Fund Balances - End of Year $ 23,597,824 $ 31,007,524 $ 7,409,700 72 DEBT SERVICE FUND Chino Hills Corporation - To account for receipts and expenditures of money for the debt service for the Certificates of Participation that were issued to finance the construction of the Civic Center facilities. 73 CITY OF CHINO HILLS Comparative Balance Sheets Chino Hills Corporation Debt Service Fund June 30, 1997 and 1996 Assets 1997 1996 Cash and investments with fiscal agents $ 252,997 $ 259,662 Fund Balance Fund Balance: Reserved for debt service 74 $ 252,997 $ 259,662 CITY OF CHINO HILLS Comparative Statements of Revenues, Expenditures and Changes in Fund Balance Chino Hills Corporation Debt Service Fund For the Years Ended June 30, 1997 and 1996 1997 1996 Revenues: Use of money and property $ 12,515 $ 13,690 Contributions from developers 413,509 417,112 Total Revenues 426,024 430,802 Expenditures: Current: General government 3,942 Debt service: Principal retirement 355,000 335,000 Interest and fiscal charges 77,689 91,462 Total Expenditures 432,689 430,404 Excess (Deficiency) of Revenues Over Expenditures (6,665) 398 Fund Balance, Beginning of Year 259,662 259,264 Fund Balance, End of Year $ 252,997 $ 259,662 75 This Page Intentionally Left Blank W CAPITAL PROJECTS FUNDS Capital Improvement - To account for receipts and expenditures of money for the construction of the Civic Center facility. Pomona Construction - To account for receipts and expenditures of money in accordance with agreements with the cities of Pomona and Diamond Bar, to widen the Phillips Ranch Road bridge. Community Facilities Districts: Regional, #2 Los Ranchos #5 Soauel Canyon, and #9 Rincon Villaw, - To account for receipts and expenditures of money for the construction of projects on behalf of these community facilities districts. 77 CITY OF CHINO HILLS Combining Balance Sheet All Capital Projects Funds June 30, 1997 Assets Cash and investments Interest receivable Due from other funds Total Assets Liabilities and Fund Balances Liabilities: Accounts payable Claims payable Retentions payable Due to other funds Total Liabilities Fund Balances: Reserved for encumbrances Unreserved: Undesignated Total Fund Balances Total Liabilities and Fund Balances 78 Capital Pomona Improvement Construction $ 97,389 $ 779,079 2,863 395,049 $ 492,438 $ 781,942 $ 254,443 237,995 492,438 $ 492,438 $ 129,699 129,699 652,243 652,243 $ 781,942 Community Facilities Districts #2 #5 #9 Los Soquel Rincon Totals Regional Ranchos Canyon Village 1997 1996 $ 642,244 $ 963,392 $ 2,482,104 $ 4,367,456 9,682 13,608 26,153 59,435 395,049 953,934 $ 651,926 $ - $ - $ 977,000 $ 2,903,306 $ 5,380,825 $ 12,602 $ 69,713 $ 336,758 $ 1,058,732 164,984 50,361 288,356 288,027 129,699 314,419 12,602 120,074 754,813 1,826,162 86,355 111,248 197,603 1,162,862 552,969 745,678 1,950,890 2,391,801 639,324 856,926 2,148,493 3,554,663 $ 651,926 $ - $ - $ 977,000 $ 2,903,306 $ 5,380,825 79 CITY OF CHINO HILLS Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Capital Projects Funds For the Year Ended June 30, 1997 Revenues: Use of money and property Contribution from developers Other Total Revenues Expenditures: Current: Contribution to assessment districts Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances, Beginning of Year Equity transfers out Fund Balances, End of Year 80 Capital Improvement $ 2,055,187 2,055,187 (2,055,187) Pomona Construction $ 18,916 18,916 I n A l L 2,055,187 (309,710) 2,055,187 (309,710) (290,794) 943,037 $ - $ 652,243 Community Facilities Districts #2 #5 #9 Los Soquel Rincon Totals Regional Ranchos Canyon Village 1997 1996 $ 32,810 28,682 $ 75,290 $ 127,016 $ 316,590 275,703 304,385 252,202 114,231 61,492 350,993 431,401 683,023 387,824 387,824 290,502 28,682 $ 205,231 1,048,511 3,337,611 6,250,116 28,682 205,231 1,436,335 3,725,435 6,540,618 32,810 (205,231) (1,085,342) (3,294,034) (5,857,595) 205,231 205,231 2,055,187 4,215,933 (309,710) (2,641,196) 205,231 1,950,708 1,574,737 32,810 (1,085,342) (1,343,326) (4,282,858) 606,514 $ 62,844 1,942,268 3,554,663 7,837,521 (62, 844) (62, 844) $ 639,324 $ - $ - $ 856,926 $ 2,148,493 $ 3,554,663 81 CITY OF CHINO HILLS Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Capital Projects Funds For the Year Ended June 30, 1997 Revenues: Use of money and property Contribution from developers Total Revenues Expenditures: Current: Contributions to assessment districts Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Capital Improvement Variance Favorable Budget Actual (Unfavorable) $ 22,867,000 $ 2,055,187 $ 20,811,813 22,867,000 2,055,187 20,811,813 (22,867,000) (2,055,187) 20,811,813 21,896,400 2,055,187 (19,841,213) Total Other Financing Sources (Uses) 21,896,400 2,055,187 (19,841,213) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances, Beginning of Year Equity transfers out (970,600) 970,600 Fund Balances, End of Year $ (970,600) $ - $ 970,600 M Pomona Construction Variance Favorable Budget Actual (Unfavorable) $ 50,000 $ 18,916 $ (31,084) 50,000 18,916 (31,084) 50,000 18,916 (31,084) (899,300) (309,710) 589,590 (899,300) (309,710) 589,590 (849,300) (290,794) 558,506 943,037 943,037 $ 93,737 $ 652,243 $ 558,506 Regional CFD 1,838,700 28,682 1,810,018 1,838,700 28,682 1,810,018 (935,200) 32,810 968,010 450,000 (450,000) 450,000 (450,000) (485,200) 32,810 518,010 606,514 606,514 $ 121,314 $ 639,324 $ 518,010 (Continued) 83 Variance Favorable Budget Actual (Unfavorable) $ 3,000 $ 32,810 $ 29,810 900,500 28,682 (871,818) 903,500 61,492 (842,008) 1,838,700 28,682 1,810,018 1,838,700 28,682 1,810,018 (935,200) 32,810 968,010 450,000 (450,000) 450,000 (450,000) (485,200) 32,810 518,010 606,514 606,514 $ 121,314 $ 639,324 $ 518,010 (Continued) 83 CITY OF CHINO HILLS Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Capital Projects Funds (Continued) For the Year Ended June 30, 1997 #2 Los Ranchos CFD Budget Actual Revenues: Use of money and property Contribution from developers Total Revenues Expenditures: Current: Contributions to assessment districts Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances, Beginning of Year Equity transfers out Fund Balances, End of Year M Variance Favorable (Unfavorable) $ 62,844 $ 62,844 (62,844) $ (62,844) $ 62,844 $ - $ (62,844) #5 Soguel Canyon CFD Variable Favorable Budget Actual (Unfavorable) $ 205,300 $ 205,231 $ 69 205,300 205,231 69 (205,300) (205,231) 205,300 205,231 (69) 205,300 205,231 (69) #9 Rincon Village CFD 568,100 387,824 Variance 1,651,600 1,048,511 Favorable Budget Actual (Unfavorable) 1,436,335 783,365 $ 30,500 $ 75,290 $ 44,790 233,300 275,703 42,403 263,800 350,993 87,193 568,100 387,824 180,276 1,651,600 1,048,511 603,089 2,219,700 1,436,335 783,365 (1,955,900) (1,085,342) 870,558 (1,955,900) (1,085,342) 870,558 1,942,268 1,942,268 $ (13,632) $ 856,926 $ 870,558 (Continued) 85 CITY OF CHINO HILLS Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Capital Projects Funds (Continued) For the Year Ended June 30, 1997 Revenues: Use of money and property Contribution from developers Total Revenues Expenditures: Current: Contributions to assessment districts Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of long-term debt Operating transfers in Operating transfers out Totals Variance Favorable Budget Actual (Unfavorable) $ 83,500 $ 127,016 $ 43,516 1,133,800 304,385 (829,415) 1,217,300 431,401 (785,899) 568,100 387,824 180,276 26,562,600 3,337,611 23,224,989 27,130,700 3,725,435 23,405,265 (25,913,400) (3,294,034) 22,619,366 205,300 205,231 (69) 22,346,400 2,055,187 (20,291,213) (899,300) (309,710) 589,590 Total Other Financing Sources (Uses) 21,652,400 1,950,708 (19,701,692) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances, Beginning of Year Equity transfers out Fund Balances, End of Year (4,261,000) (1,343,326) 2,917,674 3,554,663 3,554,663 (62,844) (62,844) $ (706,337) $ 2,148,493 $ 22854,830 E. ENTERPRISE FUNDS Water Utility - To account for the revenues and expenses for the operation, maintenance, and facility improvements of the City's water production, transmission, and distribution system. Sewer Utility - To account for the revenues and expenses for the collection and treatment (via contract) of the liquid waste generated within the City. CITY OF CHINO HILLS Combining Balance Sheet - All Enterprise Funds June 30, 1997 Assets Current Assets: Cash and investments Restricted Assets: Cash and investments with fiscal agents Receivables (net, where applicable of allowance): Accounts Interest Prepaid items Deposits Deposit with Water Facilities Authority Lease payments receivable -current Due from other funds Due from other agencies Materials and supplies inventory Water Sewer Totals Utility Utility 1997 1996 $ 12,791,822 $ 5,393,075 $ 18,184,897 $ 13,095,567 2,546 2,546 66,598 1,337,099 464,841 1,801,940 2,104,380 218,052 84,826 302,878 175,508 102,936 102,936 101,648 110,000 110,000 110,000 14,525 14,525 14,525 252,960 252,960 232,500 58,175 58,175 63,037 74,489 74,489 74,489 163,447 476 163,923 130,782 Total Current Assets 15,126,051 5,943,218 21,069,269 Non -Current Assets: Lease payments receivable 1,664,700 1,664,700 Installment obligations receivable 901,584 901,584 Deferred charges 565,811 565,811 Investment in Water Facilities Authority 49832,321 4,832,321 Total Non -Current Assets Property, Plant, and Equipment Land Easement Utility plant in service Pipeline in service Meters Buildings and improvements Equipment Construction in progress Total Property, Plant and Equipment Less accumulated depreciation Net Property, Plant and Equipment Total Assets 16 169014 1,917,660 901,584 612,800 4.941.513 7,964,416 7,964,416 8,373,557 3,062,759 12,000 3,074,759 3,074,759 537,940 537,940 537,940 18,075,125 1,881,778 19,956,903 18,657,542 49,059,316 24,401,415 73,460,731 71,905,592 944,540 944,540 894,740 130,236 130,236 130,236 278,633 146,127 424,760 550,469 716,197 716,197 1,894,050 72,804,746 26,441,320 99,246,066 97,645,328 (10,491,398) (5,094,921) (15,586,319) (13,434,410) 62,313,348 21,346,399 83,659,747 84,210,918 $ 85,403,815 $ 27,289,617 $ 112,693,432 $ 108,753,509 (Continued) 88 CITY OF CHINO HILLS Combining Balance Sheet - All Enterprise Funds (Continued) June 30, 1997 Liabilities and Fund Equity Liabilities: Current Liabilities: Accounts and contracts payable Salaries and benefits payable Deposits Due to other funds Due to other governments Compensated absences Certificates of participation - current Accrued interest payable Total Current Liabilities Non -Current Liabilities: Certificates of participation Developer program obligations Advances for construction Compensated absences payable Total Long -Term Liabilities Total Liabilities Fund Equity: Contributed capital Retained earnings Total Fund Equity Total Liabilities and Fund Equity Water Sewer Totals Utility Utility 1997 1996 $ 1,437,538 $ 293,524 $ 1,731,062 $ 1,703,077 48,648 7,716 56,364 45,563 485,078 380,581 865,659 703,209 10,318 20,749 31,067 388,696 5,607 5,607 600 600 545,000 545,000 420,000 99,050 99,050 203,001 2,631,839 702,570 3,334,409 3,463,546 19,617,557 19,617,557 20,111,762 1,382,230 1,027,244 2,409,474 3,187,547 267,102 267,102 331,066 67,498 10,936 78,434 72,987 21,334,387 1,038,180 22,372,567 23,703,362 23,966,226 1,740,750 25,706,976 27,166,908 52,599,821 22,780,018 75,379,839 71,170,291 8,837,768 2,768,849 11,606,617 10,416,310 61,437,589 25,548,867 86,986,456 81,586,601 $ 85,403,815 $ 27,289,617 $ 112,693,432 $ 108,753,509 M This Page Intentionally Left Blank .E CITY OF CHINO HILLS Combining Statement of Revenues, Expenses and Changes in Retained Earnings - All Enterprise Funds For the Year Ended June 30, 1997 Retained Earnings, End of Year $ 8,837,768 $ 2,768,849 $ 11,606,617 $ 10,416,310 91 Water Sewer Totals Utility Utility 1997 1996 Operating Revenues: Water sales $ 9,842,768 $ 9,842,768 $ 8,591,285 Sanitation services 3,466,957 3,466,957 3,313,051 Permit and inspection fees 103,455 103,455 93,205 Meter and installation fees 291,697 291,697 192,734 Other 236,220 1,806 238,026 233,674 Total Operating Revenues 10,474,140 3,468,763 13,942,903 12,423,949 Operating Expenses: Purchased water 5,008,313 5,008,313 3,272,468 Salaries and benefits 802,950 120,390 923,340 826,646 Utilities 475,502 16,347 491,849 676,997 Contractual services 675,806 1,812,640 2,488,446 2,251,335 Depreciation and amortization 1,641,421 652,232 2,293,653 2,251,571 Repairs and maintenance 487,678 60,078 547,756 387,563 Services and supplies 131,514 4,333 135,847 123,796 Other general and administrative 1,056,986 428,300 1,485,286 27,255 Total Operating Expenses 10,280,170 3,094,320 13,374,490 9,817,631 Operating Income 193,970 374,443 568,413 2,606,318 Non -Operating Revenues (Expenses): Loss on investment in Water Facilities Authority (109,191) (109,191) Interest earnings 743,234 258,655 1,001,889 680,267 Interest expense (1,473,133) (1,473,133) (859,546) Net Non -Operating Revenues (Expenses) (839,090) 258,655 (580,435) (179,279) Net Income (Loss) Before Operating Transfers (645,120) 633,098 (12,022) 2,427,039 Operating transfers in 1,524 Operating transfers out (21,000) (4,000) (25,000) (1,113,000) Net Income (Loss) (666,120) 629,098 (37,022) 1,315,563 Add back depreciation expense on contributed assets 761,507 614,998 1,376,505 1,343,741 Retained Earnings, Beginning of Year, Restated 8,884,105 1,532,205 10,416,310 9,267,981 Residual equity transfers out (141,724) (7,452) (149,176) (1,510,975) Retained Earnings, End of Year $ 8,837,768 $ 2,768,849 $ 11,606,617 $ 10,416,310 91 CITY OF CHINO HILLS Combining Statement of Cash Flows All Enterprise Funds For the Year Ended June 30, 1997 Cash Flows from Operating Activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (Increase) in prepaid items Decrease in due from other funds (Increase) in due from other agencies (Increase) in deposits (Increase) decrease in materials and supplies inventory Decrease in deposit with Water Facilities Authority Increase (decrease) in accounts and construction contracts payable Increase (decrease) in salary and benefits payable Increase in customer deposits Increase (decrease) in compensated absences Increase (decrease) in due to other funds Net Cash Provided by Operating Activities Cash Flows from Noncapital Financing Activities: Equity transfers out Operating transfers in Operating transfers out Net Cash Used for Non -Capital Financing Activities Water Sewer Utility Utility $ 193,970 $ 374,443 Totals 1997 1996 $ 568,413 $ 2,606,318 1,641,421 652,232 2,293,653 2,251,571 326,502 (24,062) 302,440 (716,178) (1,288) (1,288) (101,648) 4,862 4,862 44,061 4,217 1,830 (74,489) (20,728) (378,378) (35,000) (33,355) 214 (33,141) (17,121) 200,970 73,383 (39,791) 33,592 387,456 8,249 2,552 10,801 (31,127) 83,755 78,695 162,450 11,896 4,217 1,830 6,047 (20,728) (378,378) 20,749 (357,629) 388,696 1,923,338 1,066,862 2,990,200 4,894,677 (131,486) (2,646) (134,132) (1,166,602) 1,524 (21,000) (4,000) (25,000) (1,113,000) (152,486) (6,646) (159,132) (2,278,078) (Continued) 92 CITY OF CHINO HILLS Combining Statement of Cash Flows All Enterprise Funds (Continued) For the Year Ended June 30, 1997 Cash and Cash Equivalents, End of Year Noncash Financing Activities: $ 12,794,368 $ 5,393,075 $ 18,187,443 $ 13,162,165 1) The Water and Sewer Funds transferred $10,238 and $4,806, respectively, of fixed assets to the Data Processing Internal Service Fund. 2) The Water and Sewer Funds received capital contributions from developers in the form of capital improvements totaling $232,215 and $112,037, respectively, as part of the Developer Fee Liability Program. 3) The Water and Sewer Funds' developer fee liability was reduced by $1,079,821 and $42,504, respectively, for developers' use of construction credits with a corresponding addition to contributed capital. 4) The Water and Sewer Funds received capital contributions from developers in the form of capital improvements totaling $544,297 and $526,689, respectively. A corresponding addition to contributed capital has been recorded. 93 Water Sewer Totals Utility Utility 1997 1996 Cash Flows from Capital and Related Financing Activities: Payment of 1996 Certificate of Participation (420,000) (420,000) Repayment of advances for construction (63,964) (63,964) (70,889) Contributed capital received 3,238,988 125,694 3,364,682 1,380,261 Payment to refunding escrow agent (1,215,736) Interest paid (1,577,084) (1,577,084) (717,671) Purchases of property, plant and equipment (194,275) (22,168) (216,443) (682,147) Lease payments received 232,500 232,500 213,900 Net Cash Provided by (Used for) Capital and Related Financing Activities 1,216,165 103,526 1,319,691 (1,092,282) Cash Flows from Investing Activities: Interest received 646,146 228,373 874,519 665,607 Increase in cash and cash equivalents 3,633,163 1,392,115 5,025,278 2,189,924 Cash and Cash Equivalents, Beginning of Year 9,161,205 4,000,960 13,162,165 10,972,241 Cash and Cash Equivalents, End of Year Noncash Financing Activities: $ 12,794,368 $ 5,393,075 $ 18,187,443 $ 13,162,165 1) The Water and Sewer Funds transferred $10,238 and $4,806, respectively, of fixed assets to the Data Processing Internal Service Fund. 2) The Water and Sewer Funds received capital contributions from developers in the form of capital improvements totaling $232,215 and $112,037, respectively, as part of the Developer Fee Liability Program. 3) The Water and Sewer Funds' developer fee liability was reduced by $1,079,821 and $42,504, respectively, for developers' use of construction credits with a corresponding addition to contributed capital. 4) The Water and Sewer Funds received capital contributions from developers in the form of capital improvements totaling $544,297 and $526,689, respectively. A corresponding addition to contributed capital has been recorded. 93 This Page Intentionally Left Blank W. INTERNAL SERVICE FUNDS Equipment Maintenance - To account for the revenues and expenses associated with the maintenance of the City's vehicles. Data Processing - To account for the revenues and expenses associated with the City's computers and data processing system. 95 CITY OF CHINO HILLS Combining Balance Sheet - All Internal Service Funds June 30, 1997 Current Assets: Cash and investments Interest receivable Total Current Assets Property, Plant, and Equipment Vehicles Equipment Total Property, Plant and Equipment Less accumulated depreciation Net Property, Plant and Equipment Total Assets Liabilities: Current Liabilities Accounts and contracts payable Salaries and benefits payable Compensated absences Total Current Liabilities Non -Current Liabilities: Compensated absences payable Total Liabilities Fund Equity: Contributed capital Retained earnings Total Fund Equity Total Liabilities and Fund Equity Equipment Data Totals Maintenance Processing 1997 1996 $ 2,185,310 $ 479,987 $ 2,665,297 $ 1,936,437 33,804 33,804 26,470 2,219,114 479,987 2,699,101 1,962,907 1,766,843 1,766,843 1,647,356 289,505 586,959 876,464 289,505 2,056,348 586,959 2,643,307 1,936,861 (1,648,123) (429,216) (2,077,339) (1,558,502) 408,225 157,743 565,968 378,359 $ 2,627,339 $ 637,730 $ 3,265,069 $ 2,341,266 $ 13,164 $ 32,497 $ 45,661 $ 11,423 2,621 2,621 3,736 3,736 19,521 32,497 52,018 11,423 500 500 20,021 32,497 52,518 11,423 2,028,740 500,207 2,528,947 2,005,684 578,578 105,026 683,604 324,159 2,607,318 605,233 3,212,551 2,329,843 $ 2,627,339 $ 637,730 $ 3,265,069 $ 2,341,266 CITY OF CHINO HILLS Combining Statement of Revenues, Expenses and Changes in Retained Earnings - All Internal Service Funds For the Year Ended June 30, 1997 Operating Expenses: Salaries and benefits Equipment Data Totals Contractual services Maintenance Processing 1997 1996 Operating Revenues: 89,621 58,338 147,959 107,242 Charges for services $ 374,300 $ 204,100 $ 578,400 $ 379,622 Other 6,761 21,353 6,761 7,534 Total Operating Revenues 381,061 204,100 585,161 387,156 Operating Expenses: Salaries and benefits 39,848 39,848 Contractual services 2,383 63,540 65,923 1,853 Depreciation and amortization 89,621 58,338 147,959 107,242 Repairs and maintenance 86,961 41,484 128,445 82,610 Services and supplies 105,359 21,353 126,712 57,156 Other general and administrative 392 274 666 Total Operating Expenses 324,564 184,989 509,553 248,861 Operating Income 56,497 19,111 75,608 138,295 Non -Operating Revenues: Interest earnings 109,394 19,409 128,803 78,622 Net Income Before Operating Transfers 165,891 38,520 204,411 216,917 Operating transfers in 15,600 15,600 Net Income 165,891 54,120 220,011 216,917 Add back depreciation expense on contributed assets 88,528 50,906 139,434 107,242 Retained Earnings, Beginning of Year, Restated 324,159 324,159 Retained Earnings, End of Year $ 578,578 $ 105,026 $ 683,604 $ 324,159 GSI CITY OF CHINO HILLS Combining Statement of Cash Flows All Internal Service Funds For the Year Ended June 30, 1997 Cash Flows from Noncapital Financing Activities: Operating transfers in 15,600 15,600 Cash Flows from Capital and Related Financing Activities: Contributed capital received 403,000 403,000 1,627,325 Purchases of property, plant and equipment (7,903) (67,969) (75,872) Net Cash Provided by (Used for) Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Increase in cash and cash equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year (7,903) Equipment Data Totals Maintenance Processing 1997 1996 Cash Flows from Operating Activities: Operating income $ 56,497 $ 19,111 $ 75,608 $ 138,295 Adjustments to reconcile operating income to 1,936,437 net cash provided by operating activities: $ 2,185,310 $ 479,987 $ 2,665,297 Depreciation and amortization 89,621 58,338 147,959 107,242 Changes in operating assets and liabilities: Increase in accounts and construction contracts payable 1,741 32,497 34,238 11,423 Increase in salary and benefits payable 2,621 2,621 Increase in compensated absences 4,236 4,236 Net Cash Provided by Operating Activities 154,716 109,946 264,662 256,960 Cash Flows from Noncapital Financing Activities: Operating transfers in 15,600 15,600 Cash Flows from Capital and Related Financing Activities: Contributed capital received 403,000 403,000 1,627,325 Purchases of property, plant and equipment (7,903) (67,969) (75,872) Net Cash Provided by (Used for) Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Increase in cash and cash equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year (7,903) 335,031 327,128 1,627,325 102,060 19,410 121,470 52,152 248,873 479,987 728,860 1,936,437 1,936,437 1,936,437 $ 2,185,310 $ 479,987 $ 2,665,297 $ 1,936,437 Noncash Financing Activities: The Equipment Maintenance Fund and the Data Processing Fund received contributed assets from other funds in the net amounts of $111,583 and $148,112, respectively. W. AGENCY FUNDS Special Assessment Districts: AD 41994, and AD 41995 - To account for receipts and expenditures of money for administering the assessment and collection of assessments, and debt service for these special assessment districts. Community Facilities Districts Regional41 Rolling Ridge 92 Los Ranchos, 44 The Oaks, #5 Rincon Village 46 Carbon Canyon 48 Butterfield, and 99 Rincon Village - To account for receipts and expenditures of money for administering the assessment and collection of special taxes, and debt service for these community facilities districts. Deferred Compensation - To account for receipts and expenditures of money for the employees' deferred compensation plan established pursuant to Section 457 of the 1986 Internal Revenue Code. General Agency Fund - To account for receipts and expenditures of money for the agency fund in which funds are held by the City as an agent for others. CITY OF CHINO HILLS Combining Balance Sheet All Agency Funds June 30, 1997 Assets Cash and investments Cash and investments with fiscal agents Interest receivable Special assessments receivable Total Assets Liabilities Accounts payable Deposits Due to other funds Due to Chino Basin Municipal Water District Deferred compensation payable Funds held for others Total Liabilities 100 Special Assessment Districts AD# 1994 $ 481,096 1,116,178 9,410 4,883 AD # 1995 $ 1,323,547 3,040,672 17,652 76,521 $ 1,611,567 $ 4,458,392 $ 168 $ 3,631 1,611,399 4,454,761 $ 1,611,567 $ 4,458,392 $ 2,425 $ 1,702,699 $ 3,735,009 $ 2,154,274 $ 1,336,710 $ 276,100 $ 1,210,056 $ 57,746 $ 2,425 Community Facilities Districts 1,702,699 $ 3,735,009 #1 #2 1,336,710 #5 #6 $ 2,425 Rolling Los #4 Rincon Carbon #8 Regional Ridge Ranchos The Oaks Village Canyon Butterfield $ 2,387 $ 665,464 $ 3,659,550 $ 1,817,088 $ 1,097,194 $ 270,646 864,509 975,301 296,915 215,473 307,224 38 10,059 56,267 28,443 19,078 4,191 24,014 51,875 19,192 11,828 4,965 1,263 14,309 $ 2,425 $ 1,702,699 $ 3,735,009 $ 2,154,274 $ 1,336,710 $ 276,100 $ 1,210,056 $ 57,746 $ 2,425 $ 1,702,699 $ 3,735,009 $ 2,154,274 $ 1,336,710 $ 276,100 1,152,310 $ 2,425 $ 1,702,699 $ 3,735,009 $ 2,154,274 $ 1,336,710 $ 276,100 $ 1,210,056 (Continued) 101 CITY OF CHINO HILLS C.:mbining Balance Sheet All Agency Funds (Continued) June 30, 1997 Assets Cash and investments Cash and investments with fiscal agents Interest receivable Special assessments receivable Total Assets Liabilities Accounts payable Deposits Due to other funds Due to Chino Basin Municipal Water District Deferred compensation payable Funds held for others Community Facilities Districts #9 General Rincon Deferred Agency Village Compensation Fund $ 4,069,179 $ 1,316,291 60,388 4,109 $ 14,927,843 $ 4,133,676 $ 1,316,291 $ 14,927,843 $ 4,133,676 $ 1,316,291 $ 407,304 3,225,313 33,170 11,262,056 Total Liabilities $ 4,133,676 $ 1,316,291 $ 14,927,843 102 Totals 1997 1996 $ 29,178,503 $ 24,632,420 7,268,054 8,099,028 229,540 170,297 188,945 114,855 $ 36,865,042 $ 33,016,600 $ 411,103 $ 313,574 3,225,313 2,468,790 90,916 114,508 11,262,056 9,425,295 1,316,291 780,745 20,559,363 19,913,688 $ 36,865,042 $ 33,016,600 103 CITY OF CHINO HILLS Combining Statement of Changes in Assets and Liabilities All Agency Funds For the Year Ended June 30, 1997 SPECIAL ASSESSMENT DISTRICT #1994 Assets: Cash and investments Cash and investments with fiscal agents Interest receivable Special assessments receivable Total Assets Liabilities: Accounts payable Funds held for others Total Liabilities SPECIAL ASSESSMENT DISTRICT #1995 Assets: Cash and investments Cash and investments with fiscal agent Interest receivable Special assessments receivable Balance July 1, 1996 Balance Additions Deletions June 30, 1997 $ 698,151 $ 1,311,550 $ 1,528,605 $ 481,096 1,639,053 522,875 9,964 554 17,091 12,208 $ 2,364,259 $ 1,311,550 $ 2,064,242 $ 2,364,259 $ 2,364,259 1,116,178 9,410 4,883 $ 1,611,567 $ 168 $ 168 1,311,382 $ 2,064,242 1,611,399 $ 1,311,550 $ 2,064,242 $ 1,611,567 $ 1,223,934 $ 4,286,219 $ 4,186,606 $ 1,323,547 3,884,444 843,772 3,040,672 17,124 528 17,652 545 75,976 76,521 Total Assets $ 5,126,047 $ 4,362,723 $ 5,030,378 $ 4,458,392 (Continued) 104 CITY OF CHINO HILLS Combining Statement of Changes in Assets and Liabilities All Agency Funds (Continued) For the Year Ended June 30, 1997 Liabilities: Accounts payable Funds held for others Total Liabilities REGIONAL CON 4UNITY FACILITIES DISTRICT Assets: Cash and investments Interest receivable Total Assets Liabilities: Funds held for others COMMUNITY FACILITIES DISTRICT #1 Rolling Ridge Assets: Cash and investments Cash and investments with fiscal agents Interest receivable Special assessments receivable Total Assets Liabilities: Accounts payable Funds held for others Total Liabilities Balance July 1, 1996 Additions Deletions $ 3,631 $ 5,126,047 4,359,092 $ 5,030,378 $ 5,126,047 $ 4,362,723 $ 5,030,378 Balance June 30, 1997 $ 3,631 4,454,761 $ 4,458,392 $ 2,275 $ 112 $ 2,387 23 15 38 $ 2,298 $ 127 $ - $ 2,425 $ 2,298 $ 127 $ - $ 2,425 $ 522,433 $ 1,095,523 $ 952,492 $ 665,464 975,261 40 975,301 6,252 3,807 10,059 14,007 37,868 51,875 $ 1,517,953 $ 1,137,238 $ 952,492 $ 1,702,699 $ 1,009 $ 1,009 1,516,944 $ 1,137,238 951,483 $ 1,702,699 $ 1,517,953 $ 1,137,238 $ 952,492 $ 1,702,699 (Continued) 105 CITY OF CHINO HILLS Combining Statement of Changes in Assets and Liabilities All Agency Funds (Continued) For the Year Ended June 30, 1997 Balance July 1, 1996 Additions COMMUNITY FACILITIES DISTRICT #2 Los Ranchos Deletions Assets: Cash and investments $ 2,632,815 $ 1,608,573 $ 581,838 Interest receivable 35,861 20,406 Special assessments receivable 12,394 6,798 Total Assets Liabilities: Accounts payable Funds held for others Total Liabilities COMMUNITY FACILITIES DISTRICT #4 The Oaks Assets: Cash and investments Cash and investments with fiscal agents Interest receivable Special assessments receivable Total Assets Liabilities: Accounts payable Funds held for others Total Liabilities Balance June 30, 1997 $ 3,659,550 56,267 19,192 $ 2,681,070 $ 1,635,777 $ 581,838 $ 3,735,009 $ 100 $ 100 2,680,970 $ 1,635,777 581,738 $ 3,735,009 $ 2,681,070 $ 1,635,777 $ 581,838 $ 3,735,009 $ 1,381,654 $ 762,790 $ 327,356 $ 1,817,088 296,903 12 296,915 18,710 9,733 28,443 5,895 5,933 11,828 $ 1,703,162 $ 778,468 $ 327,356 $ 2,154,274 $ 1,009 $ 1,009 1,702,153 $ 778,468 326,347 $ 2,154,274 $ 1,703,162 $ 778,468 $ 327,356 $ 2,154,274 106 (Continued) CITY OF CHINO HILLS Combining Statement of Changes in Assets and Liabilities All Agency Funds (Continued) For the Year Ended June 30, 1997 COMMUNITY FACILITIES DISTRICT #5 Rincon Village Assets: Cash and investments Cash and investments with fiscal agents Interest receivable Special assessments receivable Total Assets Liabilities: Accounts payable Funds held for others Total Liabilities COMMUNITY FACILITIES DISCTRICT #6 Carbon Canyon Assets: Cash and investments Interest receivable Special assessments receivable Total Assets Liabilities: Funds held for others Balance July 1, 1996 Additions Balance Deletions June 30, 1997 $ 798,507 $ 666,152 $ 367,465 $ 1,097,194 215,465 8 12,466 6,612 2,722 2,243 $ 1,029,160 $ 675,015 $ 367,465 $ 1,009 $ 1,009 1,028,151 $ 675,015 366,456 $ 1,029,160 $ 675,015 $ 367,465 215,473 19,078 4,965 $ 1,336,710 $ 1,336,710 $ 1,336,710 $ 165,887 $ 127,230 $ 22,471 $ 270,646 2,254 1,937 4,191 1,331 68 1,263 $ 169,472 $ 129,167 $ 22,539 $ 276,100 $ 169,472 $ 129,167 $ 22,539 $ 276,100 107 (Continued) CITY OF CHINO HILLS Combining Statement of Changes in Assets and Liabilities All Agency Funds (Continued) For the Year Ended June 30, 1997 Balance Balance COMMUNITY FACILITIES July 1, 1996 Additions Deletions June 30, 1997 DISTRICT 48 Butterfield Assets: Cash and investments $ 1,388,188 $ 614,658 $ 1,138,337 $ 864,509 Cash and investments Interest receivable 46,761 13,627 with fiscal agents 307,157 67 307,224 Interest receivable 20,882 3,132 24,014 Special assessments receivable 5,171 9,138 14,309 Total Assets $ 1,721,398 $ 626,995 $ 1,138,337 $ 1,210,056 Liabilities: Accounts payable $ 1,009 $ 1,009 Due to other funds 92,856 35,110 $ 57,746 Funds held for others 1,627,533 $ 626,995 1,102,218 1,152,310 Total Liabilities $ 1,721,398 $ 626,995 $ 1,138,337 $ 1,210,056 COMMUNITY FACILITIES DISTRICT #9 Rincon Village Assets: Cash and investments $ 3,593,401 $ 3,429,957 $ 2,954,179 $ 4,069,179 Interest receivable 46,761 13,627 60,388 Special assessment receivable 55,699 51,590 4,109 Total Assets $ 3,695,861 $ 3,443,584 $ 3,005,769 $ 4,133,676 Liabilities: Funds held for others $ 3,695,861 $ 3,443,584 $ 3,005,769 $ 4,133,676 DEFERRED COMPENSATION Assets: Cash and investments with fiscal agents $ 780,745 $ 535,546 $ - $ 1,316,291 Liabilities: Deferred compensation payable $ 780,745 $ 535,546 $ - $ 1,316,291 108 (Continued) CITY OF CHINO HILLS Combining Statement of Changes in Assets and Liabilities All Agency Funds (Continued) For the Year Ended June 30, 1997 Assets: Cash and investments Liabilities: Accounts payable Deposits Due to other funds Due to CBMWD Total Liabilities Assets: Cash and investments Cash and investments with fiscal agents Interest receivable Special assessment receivable Total Assets Liabilities: Accounts payable Deposits Due to other funds Due to CBMWD Deferred compensation payable Funds held for others Total Liabilities Balance July 1, 1996 Additions Deletions $ 12,225,175 $ 2,702,668 $ $ 309,438 $ 97,866 2,468,790 756,523 21,652 11,518 9,425,295 1,836,761 Balance June 30, 1997 $ 14,927,843 $ 407,304 3,225,313 33,170 11,262,056 $ 12,225,175 $ 2,702,668 $ - $ 14,927,843 $ 24,632,420 $ 16,605,432 $ 12,059,349 $ 29,178,503 8,099,028 535,673 1,366,647 7,268,054 170,297 59,797 554 229,540 114,855 137,956 63,866 188,945 $ 33,016,600 $ 17,338,858 $ 13,490,416 $ 36,865,042 $ 313,574 $ 101,665 $ 4,136 $ 411,103 2,468,790 756,523 3,225,313 114,508 11,518 35,110 90,916 9,425,295 1,836,761 11,262,056 780,745 535,546 1,316,291 19,913,688. 14,096,845 13,451,170 20,559,363 $ 33,016,600 $ 17,338,858 $ 13,490,416 $ 36,865,042 109 This Page Intentionally Left Blank 110 ACCOUNT GROUPS General Fixed Assets Account Group - To account for the cost of fixed assets of the City that are used in the performance of general governmental functions and that are not accounted for in proprietary funds. General Long -Term Debt Account Group - To account for the unmatured long-term indebtedness of the City. CITY OF CHINO HILLS Comparative Schedules of General Fixed Assets June 30, 1997 and 1996 General Fixed Assets: Land Equipment Buildings Investment in General Fixed Assets 1997 $ 12,370,989 542,699 2,162,782 $ 15,076,470 1996 $ 12,175,258 814,044 2,162, 782 $ 15,152,084 $ 15,076,470 $ 15,152,084 General fixed assets by function and activity are currently not available. 112 CITY OF CHINO HILLS Comparative Schedules of General Long -Term Debt June 30, 1997 and 1996 1997 Amounts Available and to be Provided for Retirement of Long -Term Debt: Amount available in debt service funds $ 252,997 Amount to be provided 29,792,453 M $ 259,662 28,287,643 Total Available and to be Provided for Retirement of Long -Term Debt $ 30,045,450 $ 28,547,305 General Long -Term Debt Payable: Compensated absences $ 209,910 Advances from developers 1,104,102 Installment obligation due to Enterprise Fund 901,584 Development fee program obligations 25,800,192 Claims payable 859,662 Capital lease obligations Certificates of Participation 1,170,000 Total General Long -Term Debt Payable 113 $ 224,411 1,429,061 901,584 23,479,736 982,470 5,043 1,525,000 $ 30,045,450 $ 28,547,305 This Page Intentionally Left Blank 114 STATISTICAL SECTION 115 (1) Includes General, Special Revenue, Debt Service, and Capital Projects Funds. (2) The City was incorporated on December 1, 1991. (3) Includes Contributions to Assessment Districts for the 1994-95 fiscal year. 116 Develop- ment 4,757 7,250 1,617 9,018 7,594 11,781 Other (3) 7,008 0 2,906 1,725 2,102 8,308 City of Chino Hills General Governmental Revenues by Source (1) Last Six Fiscal Years (2) (In Thousands Dollars) Special Licenses Use of Inter - Fiscal Year Assess- and ments Permits Money and Property Govern - 1991-92 -mss- 252 7,197 19 3,655 mental 1,642 1992-93 4,507 6,653 977 3,764 1,332 1993-94 4,957 6,266 993 2,519 5,500 1994-95 4,913 5,454 1,349 3,097 2,145 1995-96 5,031 5,151 1,492 2,796 1,992 1996-97 5,227 5,437 1,952 2,973 1,993 Contri- butions Charges Fines Fiscal from for and Other Year Developers Services Forfeitures Revenue (3) Total 1991-92 0 2 6 2,676 20,206 1992-93 3,212 397 82 634 28,808 1993-94 426 3,005 192 1,308 26,783 1994-95 647 3,525 178 5,045 35,371 1995-96 669 4,233 154 734 29,846 1996-97 718 6,985 150 1,982 39,198 (1) Includes General, Special Revenue, Debt Service, and Capital Projects Funds. (2) The City was incorporated on December 1, 1991. (3) Includes Contributions from Assessment Districts and Other Revenue for the 1994-95 fiscal year. General Governmental Expenditures by Function (1) Last Six Fiscal Years (2) (In Thousands Dollars) General Community Culture Fiscal Govern- Public Public Develop- and Year ment Safety Works ment Leisure 1991-92 1,923 73 6 11 0 1992-93 2,635 3,282 13,569 1,072 0 1993-94 2,360 2,847 8,282 1,824 642 1994-95 2,020 3,006 10,005 3,463 1,326 1995-96 3,514 3,131 10,476 1,769 868 1996-97 3,388 3,404 10,680 2,466 848 Fiscal Capital Debt Year Outlay Service Total 1991-92 7,685 0 16,706 1992-93 7,790 7,693 34,343 1993-94 19,680 4,265 45,491 1994-95 8,233 10,344 40,436 1995-96 6,427 5,489 33,776 1996-97 4,238 6,066 39,398 (1) Includes General, Special Revenue, Debt Service, and Capital Projects Funds. (2) The City was incorporated on December 1, 1991. (3) Includes Contributions to Assessment Districts for the 1994-95 fiscal year. 116 Develop- ment 4,757 7,250 1,617 9,018 7,594 11,781 Other (3) 7,008 0 2,906 1,725 2,102 8,308 City of Chino Hills Secured Property Tax Levies And Collections (1) Last Six Fiscal Years (2) (In Thousands Dollars) Total Fiscal Current Year L€My Total Percent of Current Levy Collections Collected 1991-92 N/A N/A N/A 1992-93 777,704 686,550 88.3% 1993-94 1,231,289 1,086,243 88.2% 1994-95 1,240,010 1,114,018 89.8% 1995-96 1,250,014 1,154,794 92.4% 1996-97 1,299,249 1,187,694 91.4% (1) Source : San Bernardino County Auditor/Controller-Recorder. (2) The City was incorporated on December 1, 1991. Assessed And Estimated Actual Values Of Taxable Property (1) Last Six Fiscal Years (2) (In Thousands Dollars) Total Assessed Fiscal Real Personal & Estimated Full Year Property Property Exemptions Market Valuation 1991-92 N/A N/A N/A N/A 1992-93 2,829,913 0 62,416 2,892,329 1993-94 3,016,447 26,176 65,156 3,107,778 1994-95 2,922,716 30,394 67,986 3,021,096 1995-96 3,039,526 33,121 70,618 3,143,265 1996-97 3,172,581 35,792 71,667 3,280,040 (1) Source: San Bernardino County Assessor. (2) The City was incorporated on December 1, 1991. 117 City of Chino Hills Property Tax Rates - All Direct and Overlapping Governments (1) Last Six Fiscal Years (2) (In Thousands Dollars) Property Value, Construction and Bank Deposits Chino Last Six Fiscal Years (1) Chino (In Thousand Dollars) General Property Value (2) Municipal Fiscal Year Commercial Residential Exemptions Total Water District 1991-92 N/A N/A N/A N/A N/A 1992-93 136,050 2,693,863 62,416 2,892,329 $1.0000 1993-94 117,796 2,924,827 65,156 3,107,778 1993-94 1994-95 118,278 2,834,832 67,986 3,021,096 $1.0339 1995-96 204,341 2,868,306 70,618 3,143,265 $0.0089 1996-97 221,759 3,265,751 71,667 3,280,040 $0.0336 $0.0089 Commercial Residential 1996-97 $1.0000 Construction (3) Construction (3) $0.0089 Fiscal Number Number Bank Year of Permits Value of Permits Value Deposits (4) 1991-92 0 0 N/A N./A 53,181 1992-93 0 0 813 (5) 38,677 67,936 1993-94 0 0 1,408 72,505 79,589 1994-95 0 0 1,696 96,949 92,816 1995-96 0 0 1,953 114,439 108,745 1996-97 N/A N/A 2,295 142,663 127,959 (1) The City was incorporated on December 1, 1991. (2) Source: San Bernardino County Assessors' Office. (3) Source : City of Chino Hills building and safety department. (4) Source : The Findley Report. (5) Information related to a six-month period of the fiscal year. Property Tax Rates - All Direct and Overlapping Governments (1) Last Six Fiscal Years (2) (In Thousands Dollars) (1) Source: San Bernardino County Auditor/Controller-Recorder and Assessor. (2) The City was incorporated on December 1, 1991. The tax rate was not available from the San Bernardino County Auditor/Controller-Recorded nor Assessor. 118 Chino Chino Basin General Unified Municipal Fiscal Year Basic Tax Levy School District Water District Total 1991-92 N/A N/A N/A N/A 1992-93 $1.0000 $0.0333 $0.0117 $1.0450 1993-94 $1.0000 $0.0250 $0.0089 $1.0339 1994-95 $1.0000 $0.0288 $0.0089 $1.0377 1995-96 $1.0000 $0.0336 $0.0089 $1.0425 1996-97 $1.0000 $0.0490 $0.0089 $1.0579 (1) Source: San Bernardino County Auditor/Controller-Recorder and Assessor. (2) The City was incorporated on December 1, 1991. The tax rate was not available from the San Bernardino County Auditor/Controller-Recorded nor Assessor. 118 City of Chino Hills Computation of Direct and Overlapping Bonded Debt General Obligation Bonds (In Thousands Dollars) Fiscal Year 1996-97 Assessed Valuation : Direct and Overlapping Bonded Debt: San Bernardino County General Fund Obligations San Bernardino County Pension Obligations San Bernardino County Free Library Authority Metropolitan Water District Chaffey Community College District Certificates of Participation Chino Unified School District Chino Unified School District Certificates of Participation City of Chino HIlls Certificates of Participation City of Chino Hills 1915 Act Bonds West Valley Vector Control District Certificates of Participation San Bernardino Community Facilities District #1 San Bernardino Community Facilities District #2 San Bernardino Community Facilities District #4 San Bernardino Community Facilities District #5 San Bernardino Community Facilities District #8 San Bernardino Community Facilities District #9 San Bernardino County Assessment District #86-1 R TOTAL DIRECT AND OVERLAPPING BONDED DEBT $3,280,040 Applicable 5.62400% 5.62400% 8.5220% 0.4080% 13.5570% 49.1010% 49.1010% 100.0000% 100.0000% 38.9380% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease obligations. -,. . a ,.� Direct Debt ( $ 1,180 ) 0.04% Total Direct and Overlapping Tax and Assessment Debt 3.04% Total Debt 7.20% 119 Debt 6/30/97 61,418 21,649 6 2,371 1,047 371 50,779 1,180 29,745 414 8,935 4,905 2,725 1,925 2,815 22,385 23,430 $236,100 (1) City of Chino Hills Principal Taxpayers (1) June 30, 1997 (In Thousands Dollars) K/B Retain Properties, L.P. ERP Operating Limited Partnership Standard Pacific Corp. LBK, L.P. Zufu Properties Company, Ltd. Sterling Builders, Inc. Lewis Development Company Quong-Lebowitz Evans Withycombe Residential, L.P. Sumitomo Realty/Development, CA. Inc Total Assessed Valuation for FY 1996-97 (1) Source: San Bernardino County Assessor. Shopping Center Developer Developer Developer Developer Shopping Center Developer Developer Developer Developer $3,280,040 120 1996 Percent Assessed of Total Valuation Valuation 22,380 0.68% 20,184 0.62% 13,919 0.42% 13,701 0.42% 12,466 0.38% 10,924 0.33% 10,385 0.32% 9,866 0.30% 9,076 0.28% 8,969 0.27% 131,870 4.02% City of Chino Hills Miscellaneous Statistics (1) June 30, 1997 Date of Incorporation December 1, 1991 Form of Government Council -Manager Number of full time employees 95 Area in square miles 46 Population: January 1, 1992 42,691 January 1, 1993 45,612 January 1, 1994 47,249 January 1, 1995 47,791 January 1, 1996 49,763 January 1, 1997 51,418 Facilities and services Miles of streets 189 Culture and Recreation: Parks 30 Park acreage 179 Sewerage System: Miles of sanitary sewers 243 Miles of storm sewers 156 Number of service connections 17,266 Average daily treatment in gallons 6.10 Million Gallon Water System: Miles of water mains 283 Number of service connections 16,908 Average daily consumption in gallons 13.46 Million Gallon Total Storage 31 Million Gallon Facilities and services not included in the primary government Cable Television System: Miles of service 232 Number of satellite receiving stations 5 Education : Number of elementary schools 9 Number of secondary schools 3 (1) Source: City of Chino Hills, Chino Unified School District, Chino Valley Cable Vision, and State of California. (2) Represents net useable park land. 121 This page intentionally left blank. 122