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1997-1998 CAFR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUKE 305 1998 CITY OF CHINO HILLS CALIFORNIA CITY OF CHINO HILLS N C O R P C3 R A 'r F D 1 0 0 1 Prepared By: City of Chino Hills Finance Department INTRODUCTORY SECTION ii CITY OF CHINO HILLS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 1998 TABLE OF CONTENTS Paje INTRODUCTORY SECTION Table of Contents Letter of Transmittal vii Organizational Chart Xiv City Officials XV FINANCIAL SECTION Independent Auditors' Report 1 General Purpose Financial Statements Exhibit A - Combined Balance Sheet - All Fund Types and Account Groups 2 Exhibit B - Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types 4 Exhibit C - Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - All Governmental Fund Types 6 Exhibit D - Combined Statement of Revenues, Expenses, and Changes in Retained Earnings - All Proprietary Fund Types 10 Exhibit E - Combined Statement of Cash Flow - All Proprietary Fund Types 11 Notes to Financial Statements 12 Supplementary Schedules Schedule 1 - Balance Sheet - General Fund 38 Schedule 2 - Statement of Revenues, Expenditures, and Changes in Fund Balances — General Fund 39 Schedule 3 - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - General Fund Schedule 4 - Combining Balance Sheet — All Special Revenue Funds Schedule 5 - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — All Special Revenue Funds 40 44 48 W TABLE OF CONTENTS Supplementary Schedules (Continued) Page Schedule 6 - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) — All Special Revenue Funds 52 Schedule 7 - Comparative Balance Sheet - Chino Hills Corporation Debt Service Fund 64 Schedule 8 - Comparative Statements of Revenues, Expenditures, and Changes in Fund Balances — Chino Hills Corporation Debt Service Fund 65 Schedule 9 - Comparative Statements of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual - Chino Hills Corporation Debt Service Fund 66 Schedule 10 - Combining Balance Sheet — All Capital Projects Funds 68 Schedule 11 - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — All Capital Projects Funds 70 Schedule 12 - Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) — All Capital Projects Funds 72 Schedule 13 - Combining Balance Sheet — All Enterprise Funds 77 Schedule 14 - Combining Statement of Revenues, Expenses, and Changes in Retained Earnings -All Enterprise Funds 79 Schedule 15 - Combining Statement of Cash Flows — All Enterprise Funds 80 Schedule 16 - Combining Balance Sheet — All Intemal Service Funds 82 Schedule 17 - Combining Statement of Revenues, Expenses and Changes in Retained Earnings — All Internal Service Funds 83 Schedule 18 - Combining Statement of Cash Flows - All Internal Service Funds 84 Schedule 19 - Combining Balance Sheet — All Agency Funds 86 Schedule 20 - Combining Statement of Changes in Assets and Liabilities - All Agency Funds 89 Schedule 21 - Comparative Schedules of General Fixed Assets 94 Schedule 22 - Statement of General Fixed Assets by Function and Activity 95 Schedule 23 - Schedule of Changes in General Fixed Assets by Function and Activity 96 Schedule 24 - Comparative Schedules of General Long -Term Debt 97 iv TABLE OF CONTENTS STATISTICAL SECTION Last Seven Fiscal Years Page General Governmental Revenues by Source 99 General Governmental Expenditures by Function 99 Secured Property Tax Levies and Collections 100 Assessed and Estimated Actual Values of Taxable Property 100 Property Value, Construction and Bank Deposits 101 Property Tax Rates - All Direct and Overlapping Governments 101 Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds 102 Principal Taxpayers 103 Miscellaneous Statistics 104 v This page intentionally left blank. vi CITA' OF CHINO HILLS 2001 Gk\`I) A%INLt.. Cm,,o Hn is, Cm a 91709-4869 (909) 364-2600 . (909) 364-269; F\\ j ,,I � Ifl�r)11(L.LS December 8, 1998 The Honorable Mayor and City Council City of Chino Hills, California The Comprehensive Annual Financial Report for the City of Chino Hills for the fiscal year ended June 30, 1998, 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' 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 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. vtt 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 54,667 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 improved and it is expected to continue to improve in the near future. The Southern California economy has improved over the past year after being in a slump for several years. This trend is expected to continue over 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. About 1,200 building permits were issued for new residential units in the 1997-98 fiscal year and it is estimated that at least 800 to 1,000 permits will be issued in the 1998-99 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. Two major retail outlets have located in the City as a result of these marketing efforts: one retailer, Costco, opened for business in November 1997 and the other retailer, Eagle Hardware and Garden Center, is expected to open for business by the end of the 1998 calendar year. At this time, however, the City is primarily a "bedroom community" with very little commercial and industrial businesses. City of Chino Hills Transmittal Letter (Continued) MAJOR INITIATIVES AND ACCOMPLISHMENTS The major initiatives and accomplishments for the 1997-98 fiscal year include: economic development, principally represented by the opening of the new Costco store and the securing of another major retailer, Eagle Hardware and Garden Center; securing a substantial permanent source of water supply through an agreement with the Monte Vista Water District; completing several capital projects including the construction of Mystic Canyon Park, installation of a new telephone system, and improvements at various park and landscape areas in the City. The major future initiatives that the City will undertake include the construction of Grand Avenue Park, various major street improvements, the completion of the new Butterfield Fire Station and the McCoy Equestrian Center improvements, and the acquisition of a new City maintenance facility. Other major initiatives include completion of the analysis for privatizing the City's water system and other City services, conducting a long term public safety needs assessment, completion of the revision of the development standards and design guidelines, implementation of the neighborhood services program, and completion and implementation of the comprehensive financial strategy plan. FINANCIAL INFORMATION Accounting Svstem and Bud2etary 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 re -budgeted as of July 1 in the next fiscal year. ix 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, 1998, and the amount and percentages of increases and decreases in relation to prior year revenues. Dollar amounts are expressed in thousands. Increase Percent Percent (Decrease) of Increase Revenue Amount of Total from 1997 (Decrease) Taxes $5,982 13.56 $ 755 14.44 Special Assessments 5,216 11.82 (221) (4.06) Licenses and Permits 2,981 6.75 1,029 52.72 Use of Money and Property 3,269 7.41 296 (9.96) Intergovernmental 1,709 3.87 (284) (14.25) Development Fees 14,150 32.07 2,369 20.11 Contributions from Developers 1,037 2.35 319 44.43 Charges for Services 7,474 16.94 489 7.00 Fines and Forfeitures 145 .33 (5) (3.33) Other 2,162 4.90 180 9.08 Total Revenues $44.125 100.00 $4.927 12.57 The most significant revenue increases, which are reported in the Licenses and Permits, Development Fees, and Contributions from Developers were caused by a significant increase in residential development this fiscal year. The revenue increases occurred from the issuance of additional building permits and additional collections of development fees, charges received from residential developers for plan checking services, and other cost recovery activities. The significant revenue decrease occurred in the Intergovernmental revenue category; this decrease was caused by a reduction in grant revenues for the fiscal year. 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, 1998, and the amount and percentages of increases and decreases in relation to prior year expenditures. Dollar amounts are expressed in thousands. Expenditures Current: General Government Public Safety Public Works Community Development Cultural and Leisure Other Expenditures Increase Percent Percent (Decrease) of Increase Amount of Total from 1997 (Decrease) $ 3,410 7.82 22 .65 3,402 7.80 ( 3) (.09) 12,341 28.30 1,661 15.55 3,946 9.05 1,480 60.02 1,065 2.44 218 25.74 5,949 13.64 (2,359) (28.39) z City of Chino Hills Transmittal Letter (Continued) Increase Percent Percent (Decrease) of Increase Expenditures Amount of Total from 1997 (Decrease) Capital Outlay 4,919 11.28 681 16.07 Debt Service: Principal Retirement 4,001 9.18 362 9.95 Interest and Fiscal Charges 4.572 10.49 2,145 88.38 Total Expenditures $43.605 100.00 $4.207 9.65 The increase in the Community Development category was due to the significant increase in residential development activities for the fiscal year. The expenditure increase in the Public Works and Cultural and Leisure categories was due to increases in the maintenance and recreation program activities. The expenditure increase in the Interest and Fiscal charges and Principal Retirement categories was 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 increased by $2,380,440 from $9,300,905 (as restated) in 1996-97 to $11,681,345 in 1997-98. The above fund balance amounts include reserved, unreserved but designated, and unreserved/undesignated amounts. The principal cause of the increase was primarily due to the increase in property taxes, sales taxes, motor vehicle fees, and licenses and permits. The increase in these revenues is a direct result of the increase in residential development that occurred in the City. 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 decreased by $630,746 (from $9,482,768 to $9,212,022), in the 1997-98 fiscal year as a result of a decrease in consumption per customer due to a very wet winter this fiscal year. The net loss generated from the fiscal year water utility activities was $684,706. This result is in contrast to last fiscal year's net loss of $666,120. The sewer utility operating revenue increased slightly by $141,439 from $3,468,763 received in the 1996-97 fiscal year to $3,610,202 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 1997-98 fiscal year is $1,013,155, in contrast with the $629,098 net income earned in the 1996-97 fiscal year. The increase in net income is primarily attributed to the increase in the number of customers and operating efficiencies in the fiscal year. xi 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 $63,435,000 as of June 30, 1998. This is a reduction of $8,420,000 from the total debt obligation of $71,855,000 outstanding as of June 30, 1997. 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 $574,193 from $30,045,450 reported in last fiscal year to $30,619,643 reported in this fiscal year. The principal reason for the increase was the net addition of $870,807 in the Development Fee Program obligations which constitutes about 87 percent of the General Long Term Debt. The total amount of debt outstanding in this program increased from $25,800,192 in 1996-97 to $26,670,999 in 1997-98. 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, 1998 is $800,000 and will be paid off in September 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, 1998 amounts to $21,359,299 and $979,036, respectively. The principal debt outstanding in these funds is the $20,680,000 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 Manaeement. 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 5.3 percent, and the amount of interest received by all of the governmental fund types amounted to $3,268,587. This was $295,816 more than was received in the past fiscal year. Risk Manaizement. 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. 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. 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. Respectfully Submitted, Douu las N. La Belle City Manager c:\CAFR\TRANSLTR99. DOC 4� Stan McCartney Finance Director 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 ■ xiv PUBLIC SAFETY DEPARTMENT PUBLIC FACILITIES AND OPERATIONS DEPARTMENT CITY ATTORNEY CITY OF CHINO HILLS LIST OF ELECTED AND APPOINTED OFFICIALS ELECTED OFFICIALS - CITY COUNCIL Gary G. Larson Mayor Michael G. Wickman Mayor Pro Tern Ed Graham Council Member Gwenn Norton -Perry Council Member James S. Thalman Council Member APPOINTED OFFICIALS Douglas N. La Belle City Manager Linda D. Ruth City Clerk Mark D. Hensley City Attorney Kathleen A. Blomo Interim Community Services Director Bruce A. Coleman Community Development Director Pat Hagler Public Facilities and Operations Director Stan McCartney Finance Director/City Treasurer This page intentionally left blank. xvi FINANCIAL SECTION This page intentionally left blank. City Council City of Chino Hills Chino Hills, CA 91709 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, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Chino Hills 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, 1998, 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. 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. September 22, 1998 1 CITY OF CHINO HILLS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1998 ASSETS AND OTHER DEBITS Cash and investments (Note 2) Restricted assets: Cash and investments with fiscal agents (Note 2) Receivables Prepaid costs Deposits Deposit with Water Facilities Authority Due from other funds (Note 3) Due from other agencies 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 general long-term debt Total Assets and Other Debits 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 Due to developers Deferred revenue Deferred compensation payable (Note 7) Compensated absences payable (Note 9) Funds held for others 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) Undesignated Total Equity and Other Credits Total Liabilities, Equity and Other Credits See Notes to Financial Statements GOVERNMENTAL FUND TYPES Special Debt General Revenue Service $ 12,034,570 $ 33,941,339 $ 732,533 150,634 202,794 $ 13,120,531 2,619,700 28,780 54,677 $ 36,644,496 258,492 $ 258,492 Exhibit A Page 1 of 2 Capital Projects $ 1,580,434 19,504 772,392 $ 2,372,330 $ 1,170, 786 $ 1,249,674 $ 2,338 $ 1,375,050 155,555 73,908 - - - - 171,602 3,480 514,256 - 92,365 - - 23,580 17,000 1,439,186 1,861,418 2,338 1,546,652 547,282 1,668,697 256,154 2,864,587 11,134, 063 15, 211, 669 - - - 17,902,712 - (2,038,909) 11, 681, 345 34, 783, 078 256,154 825,678 $ 13,120,531 $ 36,644,496 $ 258,492 $ 2,372,330 2 FIDUCIARY PROPRIETARY FUND TYPES FUND TYPE Internal Enterprise Service Agency $ 23, 914, 841 $ 3,173, 867 $ 31, 345, 564 $ ACCOUNT GROUPS General General Fixed Long -Term Assets Debt 2,667 - 5,908,739 2,185,018 50,039 687,717 110,000 45,081 3,700 330,165 _ 163,923 1,664,700 901,584 537,851 4,689,642 83,401,393 536,168 15,299,181 $ 117,946,865 $ 3,760,074 $ 37.945,720 $ 15,299,181 256,154 30, 363, 489 $ 30, 619.643 Exhibit A Page 2 of 2 TOTALS (MEMORANDUM ONLY) 1998 1997 $ 105,990,615 $ 92,581,551 6,169,898 7,523,597 6,294,511 6,075,901 102,936 110,000 110,000 14,525 1,000,587 565,122 330,165 81,128 163,923 163,923 1,664,700 1,917,660 901,584 901,584 257,471 376,864 537, 851 565,811 4,689,642 4,832,321 99, 236, 742 99, 302,185 256,154 252,997 30,363,489 29,792,453 $ 257,967,332 $ 245,160.558 $ 1,293,488 $ 71,298 $ 1,929,052 $ $ $ 7,091,686 $ 5,616.872 60,901 1,983 292,347 296,107 910,114 3,884,138 4,794,252 4,090,972 384,463 98,388 171,602 1,000,587 319,052 565,122 5,056 - 5,056 11,816 7,125, 472 7,125, 472 11, 262, 056 8,160 - 100,525 - - 23,580 23,763 92,988 1,675 - 111,663 1,316,291 98,700 55,100 - 24,908,670 24,963,770 20,559,363 47,936 - 47,936 99,050 22,243,672 - - 30,619,643 52,863,315 52,884,583 25,101,878 74,956 37,945,720 30,619,643 98,591,791 97,143,747 15,299,181 - 15,299,181 15,076,470 79, 502, 026 2,499,898 - 82, 001, 924 77, 908, 786 13, 342, 961 1,185, 220 14, 528,181 12, 290, 221 - - 5,336,720 2,016,613 26,345,732 25,207,358 - - - 15,863,803 15,517,363 92,844,987 3,685,118 - 15,299,181 - 159,375,541 148,016,811 $ 117,946,865 $ 3,760,074 $ 37,945,720 $ 15,299,181 $ 30,619,643 $ 257,967,332 $ 245,160,558 3 CITY OF CHINO HILLS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 1998 GOVERNMENTAL FUND TYPES Special General Revenue Revenues: Taxes $ 5,981,999 $ Special assessments - 5,215,613 Licenses and permits 2,980,922 Use of money and property 1,323,046 1,839,903 Intergovernmental - 1,709,549 Development fees 14,149,910 Contributions from developers _ - Charges for services 3,694,476 3,779,937 Fines and forfeitures 144,573 _ Other 679,495 1,468,033 Total Revenues 14,804,511 28.162,945 Expenditures: Current: General government 3,401,754 1,234 Public safety 3,328,873 72,683 Public works 1,400,959 10,939,800 Community development 3,945,622 - Cultural and leisure 469,801 595,697 Contributions to assessment districts - 5,630,944 Capital outlay - 52,206 Debt service: Principal retirement 17,097 3,614,380 Interest and fiscal charges 5,276 4,512,174 Total Expenditures 12,569,382 25,419,118 Excess of Revenues over (under) Expenditures 2,235,129 2,743,827 Other Financing Sources (Uses): Proceeds of long-term debt 103,715 4,455,318 Operating transfers in 342,840 1,045,595 Operating transfers out (301,340) (5,061,702) Total Other Financing Sources (Uses) 145,215 439,211 Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses $ 2,380,344 $ 3,183,038 Fund Balances: Beginning of Fiscal Year, as originally reported $ 9,332,320 $ 31,007,524 Restatements (Note 17) (31,415) (30,513) Beginning of Fiscal Year, as restated 9,300,905 30,977,011 Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses 2,380,344 3,183,038 Residual equity transfers (Note 16) 96 623,029 End of Fiscal Year (Exhibit A) $ 11,681,345 $ 34,783,078 Exhibit B Page 1 of 2 See Notes to Financial Statements 4 GOVERNMENTAL FUND TYPES Debt Capital Service Projects 13,241 421,593 434,834 6,939 370,000 54,738 431,677 3,157 $ 3,157 $ 252,997 252,997 3,157 $ 256,154 92,397 615,709 15,008 723,114 TOTALS (MEMORANDUM ONLY) 1998 1997 $ 5,981,999 $ 5,227,280 5,215,613 5,436,894 2,980,922 1,951,966 3,268,587 2,972,771 1,709,549 1,993,586 14,149, 910 11, 781, 051 1,037,302 717,894 7,474,413 6,985,185 144,573 149,952 2,162, 536 1,981,868 44,125,404 39,198,447 3,409,927 3,387,852 3,401,556 3,404,575 12,340,759 10,680,375 3,945,622 2,466,175 - 1,065,498 847,596 318,330 5,949,274 8,307,960 4,866,874 4,919,080 4,238,091 - 4,001,477 3,638,605 - 4,572,188 2,427,129 5,185,204 43,605,381 39,398,358 (4,462,090) 520,023 (199, 911) - 4,559,033 5,157,846 4,021,562 5,409,997 6,730,285 (43,237) (5,406,279) (6,720,885) 3,978,325 4,562,751 5,167,246 $ (483,765) $ 5,082,774 $ 4,967,335 $ 2,148,493 $ 42,741,334 $ 38,209,442 (215,925) (277,853) - 1,932,568 42,463,481 38,209,442 (483,765) 5,082,774 4,967,335 (623,125) - (435, 443) $ 825,678 $ 47, 546, 255 $ 42, 741, 334 Exhibit 8 Page 2 of 2 5 CITY OF CHINO HILLS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Revenues: Taxes 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 of Revenues over (under) 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 Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatements (Note 17) Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Residual equity transfers (Note 16) End of Fiscal Year (Exhibit A) See Notes to Financial Statements GENERALFUND Exhibit C Page 1 of 4 Variance - Favorable Budget Actual (Unfavorable) $ 5,227,100 $ 5,981,999 $ 754,899 3,419,200 2,980,922 (438,278) 1,211,600 1,323,046 111,446 3,489,900 3, 694, 476 204,576 141,800 144,573 2,773 419,200 679,495 260,295 13.908, 800 14,804,511 895,711 4,135,464 3,461,415 674,049 3,457,253 3,368,267 88,986 1,885,701 1,439,521 446,180 5,036,701 4,342,639 694,062 620,908 482,449 138,459 17,097 17,097 5,276 5,276 - 15,158, 400 13,116, 664 2,041,736 (1,249,600) 1,687,847 2,937,447 - 103,715 103,715 340,500 342,840 2,340 (447,800) (301,340) 146,460 (107,300) 145,215 252,515 (1,356,900) 1,833,062 3,189,962 547,282 547,282 $ (1,356,900) $ 2,380,344 $ 3,737,244 $ 9,332,320 $ 9,332,320 $ - - (31,415) (31,415) 9,332,320 9,300,905 (31,415) (1,356,900) 2,380,344 3,737,244 - 96 96 $ 7,975,420 $ 11,681,345 $ 3,705,925 n. SPECIAL REVENUE FUNDS Variance - Favorable Budget Actual (Unfavorable) Bud_ e4 t 5,403,200 5,215,613 (187,587) 1,154, 600 1,839,903 685,303 133,300 1,840,400 1,709,549 130, 851 - 15,037,200 14,149,910 �887,290; 3,690,100 3,779,937 89,837 1,361,600 1,468,033 106,433 - 28, 487,100 28,162, 945 (324,155) 133,300 3,100 1,234 1,866 9,400 72,800 72,683 117 - 12, 246, 700 11,159,105 1,087,595 672,000 595,697 76,303 5,631,000 5,630,944 56 163,000 112,271 50,729 - 3,634,400 3,614,380 20,020 915,000 4,558,300 4,512,174 46,126 1,243,500 26, 981, 300 25, 698, 488 1,282,812 2,167, 900 1,505,800 2,464,457 958,657 (2,034,600) - 4,455,318 4,455,318 1,738,900 1,149,300 1,045,595 (103,705) 429,000 (17,151,300) (5,061,702) 12,089,598 - (16,002,000) 439,211 16,441,211 2,167,900 (14,496,200) 2,903,668 17,399,868 133,300 - 279,370 279,370 - Exhibit C Page 2 of 4 DEBT SERVICE FUNDS Variance - Favorable Actual (Unfavorable) 13,241 (120,059) 421,593 421,593 434,834 301,534 6,939 2,461 370,000 545,000 54,738 1,188,762 431,677 1,736,223 3,157 2,037,757 - (1,738,900) (429,000 - (2,167,900) 3,157 (130,143) $ (14,496,200) $ 3,183,038 $ 17,679,238 $ 133,300 $ 3,157 $ (130,143) $ 31,007,524 $ 31,007,524 $ - $ 252,997 $ 252,997 $ - (30,513) (30,513) - - 31,007,524 30,977,011 (30,513) 252,997 252,997 (14,496,200) 3,183,038 17,679,238 - 623,029 623,029 $ 16,511,324 $ 34,783,078 $ 18,271,754 $ 133,300 3,157 (130,143) 386,297 $ 256,154 $ (130,143) 7 CITY OF CHINO HILLS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Revenues: Taxes 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 of Revenues over (under) 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 Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatements (Note 17) Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Residual equity transfers (Note 16) End of Fiscal Year (Exhibit A) Exhibit C Page 3 of 4 CAPITAL PROJECTS FUNDS Variance - Favorable Budget Actual (Unfavorable) 16,000 92,397 76,397 5,799,900 615,709 (5,184,191) 460,000 15,008 (444,992) 6,275,900 723,114 (5,552,786) 637,900 318,330 319,570 34, 280.100 7,731,461 26, 548, 639 34,918,000 8,049,791 26,868,209 (28,642,100) (7,326,677) 21,315,423 27, 503, 000 4,021,562 (23, 481, 438) (760,900) (43,237) 717,663 26, 742,100 3,978,325 (22, 763, 775) (1,900,000) (3,348,352) (1,448,352) 2,864,587 2,864,587 $ (1,900,000) $ (483,765) $ 1,416,235 $ 2,148,493 $ 2,148,493 $ - - (215,925) (215,925) 2,148,493 1,932,568 (215,925) (1,900,000) (483,765) 1,416,235 - (623,125) (623,125) $ 248,493 $ 825,678 $ 577.185 See Notes to Financial Statements E7 Exhibit C Page 4 of 4 TOTALS (MEMORANDUM ONLY) Variance - Favorable Budget Actual (Unfavorable) $ 5,227,100 $ 5,981,999 $ 754,899 5,403,200 5,215,613 187,587 3,419,200 2,980,922 �438,278� 2,515,500 3,268,587 753,087 1,840,400 1,709,549 130,851)) 15, 037, 200 14,149, 910 W7, 290) 5,799,900 1,037,302 (4,762,598 7,180,000 7,474,413 294,413 141,800 144,573 2,773 2,240,800 2,162,536 (78,264) 48, 805,100 44,125, 404 (4,679,696) 4,147,964 3,469,588 678,376 3,530,053 3,440,950 89,103 14,132, 401 12, 598, 626 1,533,775 5,036,701 4,342,639 694,062 1,292,908 1,078,146 214,762 6,268,900 5,949,274 319,626 34, 443,100 7,843,732 26, 599, 368 4,566,497 4,001,477 565,020 5,807,076 4,572,188 1,234,888 79,225,600 47,296,620 31,928,980 (30, 420, 500) (3,171, 216) 27, 249, 284 1,738,900 4,559,033 2,820,133 29,421,800 5,409,997 (24,011,803) (18,360,000) (5,406,279) 12,953,721 12,800,700 4,562,751 (8,237,949) (17,619,800) 1,391,536 19,011,335 - 3,691,239 3,691,239 $ (17,619,800) $ 5,082,774 $ 22,702,574 $ 42, 741, 334 $ 42, 741, 334 $ - - (277, 853) (277, 853) 42,741,334 42,463,481 (277,853) (17, 619, 800) 5,082,774 22, 702, 574 $ 25,121, 534 $ 47, 546, 255 $ 22, 424, 721 0 CITY OF CHINO HILLS Exhibit D COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 1998 TOTALS INTERNAL (MEMORANDUM ONLY) Operating Revenues: ENTERPRISE SERVICE 1 9 9 8 1 9 9 7 Charges for services $ 12,821,996 $ 678,115 $ 13,500,111 $ 13,888,125 Permit and inspection fees 79,819 - 79,819 103,455 Meter and installation fees 328,383 - 328,383 291,697 Other 7,884 10,089 17,973 244,787 Total Operating Revenues 13,238,082 688,204 13,926.286 14,528,064 Operating Expenses: Purchased water 4,364,873 - 4,364,873 5,008,313 Salaries and benefits 1,009,928 25,691 1,035,619 963,188 Utilities Contractual services 544,086 2,479,473 - 105,445 544,086 2,584,918 491,849 2,554,369 Depreciation and amortization 2,348,698 166,065 2,514,763 2,441,612 Repairs and maintenance 609,694 99,895 709,589 676,201 Services and supplies 118,403 99,356 217.759 262,559 Other general and administrative 2,482,170 404 2,482,574 1,485,952 Total Operating Expenses 13,957,325 496,856 14,454,181 13,884,043 Operating Income (loss) (719,243) 191,348 (527,895) 644,021 Nonoperating Revenues (Expenses): Interest earnings 1,214,265 163,067 1,377,332 1,130,692 Proceeds of long-term debt 892,734 - 892,734 - Rents & leases 154,889 - 154,889 Sale of property - 10,118 10,118 Other revenues 162,342 - 162,342 Interest expense (1,196,823) (1,196,823) (1,473,133) Loss on investment in Water Facilities Authority (150,815) (150,815) (109,191) Contributed to other funds (28,900) (28,900) Gain (loss) on disposal of assets - (1,656) (1,656) Total Nonoperating Revenues (Expenses) 1,047,692 171,529 1,219,221 (451,632) Net Income (Loss) before Operating Transfers 328,449 362,877 691,326 192,389 Operating transfers In - - - 15,600 Operating transfers out - (3,718) (3,718) (25,000) Net income (loss) 328,449 359,159 687,608 182,989 Add back depreciation related to contributed capital 1,408,671 142,457 1,551,128 1,515,939 Increase (decrease) in retained earnings 1,737,120 501,616 2,238,736 1,698,928 Retained Earnings: Beginning of Fiscal Year 11,606,618 683,604 12,290,222 10,740,470 Residual equity transfer (Note 17) (777) - (777) (149,176) End of Fiscal Year $ 13,342,961 $ 1,185,220 $ 14,528,181 $ 12,290,222 See Notes to Financial Statements 10 CITY OF CHINO HILLS Exhibit E COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 1998 TOTALS INTERNAL (MEMORANDUM ONLY) Cash Flows from Operating Activities: ENTERPRISE SERVICE 1 9 9 8 1 9 9 7 Operating Loss $ (719,243) $ 191,348 $ (527,895) $ 644,021 Adjustment to reconcile Operating Income to Net Cash: Depreciation Changes in Assets and Liabilities: 2,348,698 166,065 2,514,763 2,441,612 (Increase decrease in accounts receivable (Increase decrease in prepaid items (32,342) (47,858) (12,463 (3,772) 44,805) �51,630) 302,440 (Increase decrease in deposits 102,936 102,936 (1,288) (Increase decrease in due from other funds (Increase decrease in due from other agencies 13,094 (255,676) 13,094 (255,676) 4,862 (Increase) decrease in inventories - - (33,141) (Increase) decrease in deposit from Water Facilities Authority "decrease 14,525 14,525 Increase in accounts and contracts payable (437,574) 25,637 (411,937) 67,830 Increase decrease in salary and benefits payable 4,537 (638) 3,899 13,422 Increase decrease in customer deposits 99,555 - 99,555 162,450 Increase decrease in due to other funds 353,396 353,396 (357,629) Increase decrease in due to other governments (551) (551) Increase decrease in due to developers 8,160 8,160 Increase decrease in compensated absences 13,954 (2,561) 11,393 10,283 Increase decrease, in accrued interest payable (51,114) - (51,114) Total Adjustments 2,133,740 172,268 2,306,008 2.610,841 Net Cash Provided (Used) by Operating Activities 1,414,497 363,616 1,778,113 3,254,862 Cash Flows from Noncapital Financing Activities: Equity transfer out (777) - (777) (134,132) Operating transfers in - (3,718) (3,718) 15,600 Operating transfers out - (25,000) Net Cash Provided (Used) by Noncapital Financing Activities (777) (3,718) (4,495) (143,532) Cash Flows from Capital and Related Financing Activities: Repayment of 1996 Certificates of Participation (545,000 (545000 (420,000 Repayment of advances for construction (51,936) (51:936) (63,964) Contributed capital received 3,683,534 3,683,534 3,767,682 Interest paid (150,815) - 150,815) (1,577,084 Purchases of property, plant and equipment (103,079) (22,847) �125,926) (292,315) Gain (loss) on disposal of fixed assets - (1,656) 0,656 Cash received on sales of fixes assets - 10,118 10,118 - Lease payments received 252,960 - 252,960 232,500 Net Cash Provided (Used) by Capital and Related Financing Activities 3,085,664 (14,385) 3,071,279 1,646,819 Cash Flows from Investing Activities: Interest on investments 1,230,681 163,057 1,393,738 995,989 Net Cash Provided (Used) by Investing Activities 1,230,681 163,057 1,393,738 995,989 Net Increase (Decrease) in Cash and Investments 5,730,065 508,570 6,238,635 5,754,138 Cash and Investments at Beginning of Year 18,187,443 2,665,297 20,852,740 15,098,602 Cash and Investments at End of Year $23,917,508 $ 3,173,867 $27,091,375 $20,852,740 See Notes to Financial Statements 11 CITY OF CHINO HILLS NOTES TO FINANCIAL STATEMENTS JUNE 30, 1998 Note 1: 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, contracted 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 No. 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 benefit/burden 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. Special 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. Capital Projects Funds are used to account for resources used for the acquisition and construction of major capital facilities. 12 City of Chino Hills Notes to Financial Statements (Continued) Note 1: Significant Accounting Policies (Continued) 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 Long -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 (i.e., revenues) and decreases (i.e., expenses) in net total assets. 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 Code Section G60, whereby grant funds earned 13 City of Chino Hills Notes to Financial Statements (Continued) Note 1: Significant Accounting Policies (Continued) 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. 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. 14 City of Chino Hills Notes to Financial Statements (Continued) Note 1: Significant Accounting Policies (Continued) Encumbrances Encumbrance accounting is employed as an extension of formal governmental funds. Encumbrances, such as purchase orders, contracts, for the expenditure of monies, are reported as reservations of fund encumbrances at year-end are reappropriated in the following year. Investments Investments are stated at fair value (see Note 2). Materials and Supplies Inventories budgetary integration in and other commitments balances. Outstanding Materials and supplies consist of water pipe, meters, valves, tools and miscellaneous iterns 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 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 Vehicles Utility Plant in Service Meters Pipeline in Service 3 - 12 years 4 - 10 years 5 - 100 years 30 years 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 1997-98. 15 City of Chino Hills Notes to Financial Statements (Continued) Compensated Absences In accordance with GASB Code Section 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. Balance at July 1, 1997 $ 565,811 1997-98 amortization expense 27,960 Balance at June 30, 1998 $ 537.851 Cash and Cash Equivalents 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., Certain reclassifications have been made to the prior year financial data to conform with the current year presentation. 16 City of Chino Hills Notes to Financial Statements (Continued) Note 2: Cash and Investments The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31 establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. The implementation of GASB Statement No. 31 does not have a material effect on the City's financial statements for fiscal year ending June 30, 1998. Cash and investments at June 30, 1998 consist of the following: Petty Cash Pooled Deposits and Investments: Demand Deposits Pooled Investments Cash and Investments with Fiscal Agents: Other Total Cash and Investments 3,350 $ 761,480 105, 225, 785 105, 987, 265 6,169, 898 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. 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 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 17 City of Chino Hills Notes to Financial Statements (Continued) Note 2: Cash and Investments (Continued) 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. 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 No. 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: Deposits: Pooled Deposits: Demand deposit accounts, bank balance Category 1 2 $ 100,000 $ 348,083 $ Bank Fair 3 Balance Value - $ 448,083 $ 761,480 Deposits with Fiscal Agents: Bank investment contracts - - 2,643,053 2,643,053 2,643,053 Total Deposits $ 100.000 $ 348.083 $ 2,643,053 $ 3.091.13Q $ 3,404,533 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. 18 City of Chino Hills Notes to Financial Statements (Continued) Note 2: Cash and Investments (Continued) 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 are not represented by specific identifiable investment securities and, therefore, are not subject to categorization. The investments are summarized below. Fair Value Pooled Investments State of California Local Agency Investment Fund $ 18,199,586 Los Angeles County Investment Pool 56,432,958 San Bernardino County Investment Pool 30,596,591 Total Pooled Investments $ 105,229,135 Investments with Fiscal Agents Mutual Funds $ 1,785,845 Guaranteed Investment Contract 1,741,000 Total Investments with Fiscal Agents $ 3,526,845 Total Investments $ 108,755,980 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. Note 3: Interfund Receivables/Payables Receivables Payables General Fund $ 150,634 $ 3,480 Special Revenue Funds: Lighting and Landscape District 28,780 278,875 Sleepy Hollow Road Improvement - 340 Parkland Fee - 1,710 Gas Tax - 34,290 Federal Grants - 24,962 Measure I - 84,656 Solid Waste - 49,258 Miscellaneous Grants - 40,165 19 City of Chino Hills Notes to Financial Statements (Continued) Note 3: Interfund Receivables/Payables (Continued) Note 4 Reveivables Payables Capital Projects Funds: Capital Improvement $ 772,318 $ CFD #9 Rincon Village 74 - Enterprise Funds: Water Utility 45,081 382,396 Sewer - 2,067 Agency Funds: CFD #9 Rincon Village 3,700 3,700 General Agency - 94,688 Totals $ 1.000.587 $ 1.000,587 Property, Plant and Equipment Changes in the components of the General Fixed Assets Account Group for the year ended June 30, 1998 were as follows: Balance at Balance at July 1, 1997 Additions Deletions June 30. 1998 Land $ 12,370,989 $ - $ $ 12,370,989 Buildings 2,162,782 80,000 2,242,782 Equipment 542,699 346,991 204,280 685,410 Total $ 15,076,470 $ 426.991 $ 204,280 $ 15,299,181 A summary of changes in the Enterprise Fund property, plant and equipment for the year ended June 30, 1998 were as follows: Land Easements Utility Plant in Service Pipeline in Service Meters Buildings and Improvements Equipment Construction -in -Progress Total Accumulated depreciation Net Balance at July 1, 1997 Balance at as Restated Additions Deletions June 30, 1998 $ 3,074,759 $ $ $ 3,074,759 537,940 537,940 19, 956, 903 - 19, 956, 903 73, 460, 731 632,503 74, 093, 234 944,540 96,935 - 1,041,475 130,236 - - 130,236 424,760 8,811 1,110 432,461 716,197 1,335,703 - 2,051,900 $ 99, 246, 066 $ 2,073,952 $ 1,110 $ 101, 318, 908 (15,586,319) $ 2,331.529 $ ) (17,917,515) $ 83,659,747 $ 83,401,393 20 City of Chino Hills Notes to Financial Statements (Continued) Note 4: Property, Plant and Equipment (Continued) A summary of changes in the Internal Service Fund property, plant and equipment for the year ended June 30, 1998 were as follows: Balance at Balance at July 1, 1997 Additions Deletions June 30, 1998 Vehicles $ 1,766,843 $ 47,519 $ 72,077 $ 1,742,285 Equipment 876,464 105,956 133,677 848,743 Total $ 2,643,307 $ 153.475 $ 205.754 $ 2,591,028 Accumulated depreciation (2,077,339) $(166.065) S 188.544 (2,054,860) Net $ 565.96$ $ 536.168 Note 5: 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 1 % of full market value (at time of purchase) and can increase the property's value no more than 2% per year. In accordance with an agreement with the County, the City receives 4% of the 1% levy. Note 6: Pension Plan Plan Description The City of Chino Hills contributes to the San Bernardino County Employees' Retirement Association (SBCERA), a cost -sharing multiple -employer public employee defined benefit pension plan. 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 Members are covered by the plan. SBCERA provides retirement and disability benefits, annual cost -of -living adjustments and death benefits to plan members and beneficiaries. SBCERA acts as a common investment and administrative agent for the Participating Members. Benefit provisions and all other requirements are established by the California County Employees' Retirement Act of 1937. Copies of SBCERA's annual financial report may be obtained from their executive office: 195 North Arrowhead Ave., San Bernardino, CA 92415-0014. Funding Policy The contribution requirements of plan members and the City are established and may be amended by SBCERA. 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 pays the employee's contribution up to 7% of their salary. The City also contributes an amount, based on 21 City of Chino Hills Notes to Financial Statements (Continued) Note 6: Pension Plan (Continued) 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: Member Rates as a Category Percentaqe of Covered Payroll General Members Annual Pension Cost 9.30 % For 1998, the City's annual pension cost of $613,295 for SBCERA was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 1998 actuarial valuation using 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. The actuarial assumptions included (a) 8.0% investment rate of return compounded semi-annually, (b) projected salary increases of 4.75% a year compounded annually, attributable to inflation, and (c) cost -of -living increase of 2% per year. THREE-YEAR TREND INFORMATION FOR SBCERA (Amount in Thousands) Annual Pension Percentage of Net Pension Fiscal Year Cost (APC) APC Contributed Obligation 6/30/96 $ 637 100 % $ 6/30/97 $ 664 100 % $ 6/30/98 $ 613 100 % Funding progress information for SBCERA is not prepared for individual government entities. Information is only available at the system level. The following schedule summarizes the funding progress for the system as a whole. SCHEDULE OF FUNDING PROGRESS FOR SBCERA (Amount in Thousands) Actuarial Accrued UAAL as a Actuarial Actuarial Liability Unfunded % of Valuation Value of (AAL) Entry AAL Funded Covered Covered Date Assets Age (UAAL) Ratio Pavroll Payroll (A) A (B - A) (A / B) (C) [(B-A) / Cl 6/30/96 $ 1,945,736 $ 1,903,328 $ (42,408) 102.2 % $ 479,682 (8.8) % 6/30/97 $ 2,324, 795 $ 2,088,851 $ (235, 944) 111.3 % $ 500,573 (47.1) % 6/30/98 $ 2,619,666 $ 2,255,876 $ (363, 790) 116.1 % $ 525,510 (69.2) % 22 City of Chino Hills Notes to Financial Statements (Continued) Note 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. At June 30, 1998, assets of the plan totaled $1,793,838. Pursuant to Resolution No. 97R-45 and in accordance with (H.R. 3448) enacted on August 20, 1996, assets in the plan are held in a trust arrangement to ensure the assets are protected and used exclusively for plan participants and their beneficiaries. The City has a fiduciary responsibility to safeguard the assets of the program and to ensure that the plan is properly maintained by the plan administrator. Generally, assets are available to participants only upon termination of employment with the City, retirement, death or disability. The assets are held in a trust and are not assets of the City, therefore they are not reported on the balance sheet. Note 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 rats 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. 23 City of Chino Hills Notes to Financial Statements (Continued) Note 8: Insurance Programs (Continued) 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. 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, 1996 $ 982,470 Payments (122,808) Claims payable, June 30, 1997 $ 859,662 Payments (122,809) Claims payable, June 30, 1998 $ 736.853 Note 9: 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, 1998: Balance at July 1, 1997 Additions Compensated Absences $ Advances from Developers Installment Obligation Due Enterprise Fund Development Fee Program Obligations Claim Payable (Notes 8 and 10) Capital Lease Obligations Certificates of Participation Traffic Signal Reimbursement 209,910 $ 16,637 1,104,102 - 901,584 Balance at Deletions June 30, 1998 $ - $ 226,547 136,956 967,146 901,584 25,800,192 4,225,422 3,354,615 26,670,999 859,662 - 122,809 736,853 - 103,715 17,097 86,618 1,170,000 - 370,000 800,000 - 229,896 - 229,896 Totals $ 30,045.450 $ 4,575.670 $ 4,001,477 $ 30,619,643 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 future resources. $ 226,547 24 City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes In Long -Term Debt (Continued) 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. There is no fixed repayment schedule. $ 967,146 Installment Obliqation 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 Proqram 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. There is no fixed repayment schedule. $ 26,670,999 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, plus interest at the rate in effect pursuant to Section 1268.350 of the Code of Civil Procedure. $ 736.853 The debt service payments to maturity are as follows: Year Amount 1999 $ 157,241 2000 150,928 2001 144,617 2002 138,304 2003 131,992 Thereafter 125,680 Subtotal $ 848,762 Less: Interest 111,909 Total Principal $ 736.853 25 City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes In Long -Term Debt (Continued) Capital Lease Oblioations The City entered into a lease purchase agreement in November, 1997 for six copiers. The debt service payments to maturity are as follows: Year Amount 1999 $ 40,090 2000 40,090 2001 17,717 Subtotal $ 97,897 Less: Interest 11,279 Total Principal $ M_ a 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 September 1, 1996 and March 1, 1997 September 1, 1997 and each March 1 and September 1 thereafter Redemption Price 101% 100% 26 City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes In Long -Term Debt (Continued) The debt service requirements to maturity on the Certificates of Participation are as follows: Year Ending June 30, Principal Interest Total 1999 $ 390,000 $ 34,300 $ 424,300 2000 410,000 11,788 421,788 Totals $ 800.000 $ 46.088 $ 846.088 Traffic Siqnal Reimbursement On April 8, 1997, the City entered into an agreement with Lennar Rolling Ridge ("Builder') upon which the City will reimburse builder for the actual cost of engineering, design, creation and construction of certain traffic light facilities. The City has pledged revenue from the Special Gas Tax Street Improvement Fund to reimburse the builder. Reimbursement will be made within 90 days of the filing of the notice of completion and upon performance of an audit to determine that costs were incurred in the exercise of reasonable business judgment. $ 229,896 Proprietary Funds The following is a summary of the changes in enterprise fund debt for the year ended June 30, 1998: Advances for Construction Development Program Obligations Certificates of Participation Compensated Absences (Note 1) Totals Deferred Amount on Refunding Total Long -Term Debt Certificates of Participation Balance at Balance at July 1, 1997 Additions Deletions June 30, 1998 $ 267,102 $ - $ 51,936 $ 2159166 2,409,474 892,734 942,053 2,360,155 219225,000 - 545,000 20,680,000 83,270 11,393 $ 23, 984.846 $ 904.127 94,663 $ 1.538.98Q $ 23,349,984 (1,011,649) $ 22,338,335 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 27 City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes In Long -Term Debt (Continued) Empire Public Facilities Corporation and Water Facilities Authority. There is no principal amount outstanding on the original debt at June 30, 1998. The annual requirements to amortize the Certificates of Participation outstanding, as of June 30, 1998 are as follows: Year Lonq-Term Debt 1999 $ 1,740,455 2000 1,739,155 2001 1,736,630 2002 1,745,475 2003 1,751,395 Thereafter 26, 052, 095 Subtotal $ 34,765,205 Less Interest 14,085,205 Total Principal $ 20,680,000 Deferred Amount on Refunding (1,011,649) $ 19.668.351_ 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. $ 215,166 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. $ 2,360,155 28 City of Chino Hills Notes to Financial Statements (Continued) Note 10: Contingencies a. Litigation 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. b. Voter Initiatives 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. 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, street sweeping 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. Note 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 $25,038,386 of funds due to bondholders relating to these obligations. The debt outstanding at June 30, 1998 consists of the following individual issues: 1991 $5,310,000 Community Facilities District No. 2, Special Tax Bonds, Series "A", due in annual installments of $55,000 to $615,000 through September 1, 2011; interest ranging from 5.50% to 7.65%. $ 4,775,000 29 City of Chino Hills Notes to Financial Statements (Continued) Note 11: Assessment District and Community Facilities District Bond Issues (Continued) 1991 $5,435,000 Community Facilities District No. 9, Special Tax Bonds, Series "A", due in annual installments of $15,000 to $645,000 through September 1, 2015; interest ranging from 6.00% to 8.38%. $ 5,260,000 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%. 13,290,000 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%. 8,610,000 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%. 2,635,000 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%. 1,925,000 1993 $3,980,000 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%. 2,725,000 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%. 4,580,000 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%. 19,635,000 Note 12: 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 September 30, 1997, the Authority issued $24,455,000 in 1997 Refunding Certificates of Participation (COPS) for the purpose of refunding $25,820,000 of then outstanding 1986 COPS. The 1997 Refunding COPS carry interest rates from 4% to 5.3% and will be repaid in various principal increments with the final payment due on October 1, 2015. The refunding 1986 COPS carried interest 30 City of Chino Hills Notes to Financial Statements (Continued) Note 12: Joint Ventures (Continued) rates from 6.4% to 6.75% and also were due in various principal increments with the final payment due on October 1, 2015. 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 10). The City's investment in the Authority at June 30, 1998 is $4,689,642. Audited financial information of the Authority for the fiscal year ended June 30, 1998 is summarized as follows: Total assets $ 41,741,060 Total liabilities $ 25 573,815 Total fund equity $ 16,167,245 Operating revenues $ 9,785,101 Operating expenses (10,433,788) Non -operating revenue (net) 152,177 Net Loss $ 496,510 Property, plant and equipment (net) $ 34,503,543 Net working capital $ 4,348,056 Capital contributions $ 17,316,261 The participants and their audited financial contributions through June 30, 1998 were as follows: 1998 Amount Percent City of Chino Hills $ 4,927,389 28.46 % Monte Vista Water District 2,591,145 14.96 City of Chino 2,249,433 12.99 City of Ontario 4,646,852 26.84 City of Upland 2,901,442 16.75 Total $ 17,316,261 100.00 % Financial statements of the Authority can be obtained from the offices of Rogers, Anderson, Malody & Scott, LLP, Vanir Tower, 290 North "D" Street, Suite 300, San Bernardino, CA 92401. 31 City of Chino Hills Notes to Financial Statements (Continued) Note 13: 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, 1998: Year Ending June 30, 1999 $ 392,752 2000 397,716 2001 404,724 2002 413,460 2003 423,719 Minimum Lease Payments $ 2,032,371 Less Unearned Interest 367,671 Lease Receivable $ 1,664,700 Note 14: Installment Receivable 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). Note 15: 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, 1997 as Restated (See Note 18) Additions $ 5,533,112 Deletions (Depreciation) $ (1,410,925) Balance at June 30, 1998 32 City of Chino Hills Notes to Financial Statements (Continued) Note 15: Contributed Capital (Continued) 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, 1997 Deletions Balance at as Restated Additions (Depreciation) June 30, 1998 $ 2,528,947 $ 107.273 $(142.457) $ 2,499,898 Note 16: Residual Equity Transfers Residual Residual Equity Equity Transfer In Transfer Out General Fund $ 96 $ - Special Revenue Fund: Federal Grants - 96 Development Fee 623,125 - Capital Projects Fund: Pomona Construction 623,125 Total $ F $ 623.221 An additional residual equity transfer of $777 was made out of the Water Utility Enterprise Fund to the Data Processing Fund as contributed capital. Note 17: Prior Period Adjustments Beginning fund balance has been restated as follows: General Fund Prior year labor cost incorrectly charged to the Gas Tax Fund; should have been absorbed by the General Fund $ (31,415) Special Revenue Funds Gas Tax Fund Prior year labor cost incorrectly charged to the Gas Tax Fund; should have been absorbed by the General Fund 31,415 Lighting and Landscape District City was denied prior year reimbursement under the 1994 SBA Tree Planting Grant (61,928) Capital Project Fund Community Facility District #9 Rincon Village To correct prior year tax assessment transfer per agreement (215,925) 33 City of Chino Hills Notes to Financial Statements (Continued) Note 18: Fund Balance Reserves and Designations Fund balance reserves and designations are as follows: Special Debt Capital General Revenue Service Projects Fund Funds Fund Funds Reserved Non -current portion of assessments receivable $ - $ 1,389,327 $ $ _ Encumbrances 547,282 279,370 2,864,587 Debt service - - 256,154 - Total Reserved $ 547,282 $ 1,668.697 $ 256.154 $ 2,864 587 Desiqnated Structure replacement $ - $ 11,793,025 $ $ - Capital improvements 9,296 853,200 Cash flow 3,225,244 2,233,818 Assessment District Lien Payoffs - 331,626 Contingencies 7,899,523 - Total Designated $ 11,134,063 $ 15,211,669 $ $ Note 19: Segment Information Water Utilitv Sewer Utility Total Operating revenues $ 9,627,880 $ 3,610,202 $ 13,238,082 Depreciation and amortization 1,658,917 689,781 2,348,698 Operating income (1,394,451) 675,208 (719,243) Operating transfers out - _ _ Net income (loss) (684,706) 1,013,155 328,449 Current capital contributions 5,041,297 491,815 5,533,112 Fixed asset additions 1,760,266 313,686 2,073,952 Net working capital 16,596,401 7,076,116 23,672,517 Total assets 89,198,539 28,748,326 117,946,865 Total equity 65,792,274 27,052,713 92,844,987 34 City of Chino Hills Notes to Financial Statements (Continued) Note 20: Subsequent Event On August 7, 1998, the City issued Community Facilities District No. 9 Special Tax Bonds, Series of 1998 to pay the principal and interest on the County of San Bernardino, California Community Facilities District No. 9 Special Tax Bonds, Series A and Series B and to redeem all outstanding Bonds Series A and B in full at maturity. On July 14, 1998, the City entered into an agreement with the Monte Vista Water District in which the District will provide water to the City. 35 THIS PAGE INTENTIONALLY LEFT BLANK M GENERAL FUND The General Fund accounts for all financial resources and transactions except those required to be accounted for in other funds. 37 CITY OF CHINO HILLS Schedule 1 BALANCE SHEET GENERALFUND JUNE 30, 1998 ASSET S 1998 1997 Cash and investments Receivables (Net of allowances): $ 12,034,570 $ 9,328,503 Accounts Interest 145,703 93,905 Taxes 367,358 371,970 Due from other funds 219,472 202,138 Due from other agencies 150,634 84,292 Due from other governments 6,639 202,794 210,043 Total Assets $ 13,120,531 $ 10,297,490 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 1,170,786 $ 785,680 Salaries and benefits payable 155,555 161,443 Due to other funds 3,480 2,617 Due to developers 92,365 Compensated absences payable 17,000 15,430 Total Liabilities 1,439,186 965,170 Fund Balances: Reserves: Encumbrances 547,282 234,819 Unreserved: Designated for cash flow 3,225,244 3,225,244 Designated for contingencies 7,899,523 5,863,139 Designated for special projects 9,296 _ Undesignated - 9,118 Total Fund Balances 11,681,345 9,332,320 Total Liabilities and Fund Balances $ 13,120,531 $ 10,297,490 sil CITY OF CHINO HILLS Schedule 2 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GENERALFUND FOR THE FISCAL YEAR ENDED JUNE 30, 1998 1998 1997 Revenues: Taxes $ 5,981,999 $ 5,227,280 Licenses and permits 2,980,922 1,951,966 Use of money and property 1,323,046 1,187,000 Charges for services 3,694,476 3,448,596 Fines and forfeitures 144,573 149,952 Other 679,495 602,499 Total Revenues 14,804,511 12,567,293 Expenditures: Current: General government 3,401,754 3,386,140 Public safety 3,328,873 3,404,575 Public works 1,400,959 1,827,902 Community development 3,945,622 2,466,175 Cultural and leisure 469,801 338,806 Debt service: Principal 17,097 4,362 Interest and fiscal charges 5,276 55 Total Expenditures 12,569,382 11,428,015 Excess of Revenues over (under) Expenditures 2,235,129 1,139,278 Other Financing Sources (Uses): Proceeds of capital leases 103,715 - Operating transfers in 342,840 678,798 Operating transfers out (301,340) (4,091,307) Total Other Financing Sources (Uses) 145,215 (3,412,509) Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses $ 2,380,344 $ (2,273,231) Fund Balances: Beginning of Fiscal Year $ 9,332,320 $ 11,863,093 Restatement (31,415) - Beginning of Fiscal Year, as restated 9,300,905 11,863,093 Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses 2,380,344 (2,273,231) Residual Equity Transfer 96 (257,542) End of Fiscal Year $ 11,681,345 $ 9,332,320 39 CITY OF CHINO HILLS SCHEDULE OF REVENUES,EXPENDITURES AND Schedule 3 CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Page 1 of 2 GENERALFUND FOR THE FISCAL YEAR ENDED JUNE 30, 1998 1998 1997 Variance - Favorable Budget Actual (Unfavorable) Actual Revenues: Taxes Licenses and Permits $ 5,227,100 $ 5,981,999 $ 754,899 $ 5,227,280 Use of money and property 3,419,200 1,211,600 2,980,922 (438,278) 1,951,966 Charges for services 3,489,900 1,323,046 3,694,476 111,446 204,576 1,187,000 Fines and forfeitures Other 141,800 144,573 2,773 3,448,596 149,952 419,200 679,495 260,295 602,499 Total Revenues 13,908,800 14,804,511 895,711 12,567,293 Expenditures: General Government: City council City manager 137,300 89,996 47,304 90,248 City clerk 477,300 434,994 42,306 418,109 City attorney 540,886 404,844 136,042 353,603 Finance 290,000 288,969 1,031 389,796 Personnel 1,031,078 983,269 47,809 895,904 Risk management 180,000 695,100 147,678 687,499 32,322 7,601 137,480 Non-departemental 783,800 424,166 359,634 651,607 449,393 Total General Government 4,135,464 3,461,415 674,049 3,386,140 Public Safety: Law enforcement 3,250,953 3,167,055 83,898 3,210,173 Fire Protection 131,300 131,212 88 129,280 Animal control 75,000 70,000 5,000 65,122 Total Public Safety 3,457,253 3,368,267 88,986 3,404,575 Public Works: Public works 1,885,701 1,439,521 446,180 1,827,902 Community Development: Community development 308,670 302,095 6,575 299,751 Building and safety 3,353,600 3,274,622 78,978 1,523,185 Planning 922,931 464,389 458,542 473,341 Code enforcement 204,000 166,903 37,097 55,473 Economic development 247,500 134,630 112,870 114,425 Total Community Development 5,036,701 4,342,639 694,062 2,466,175 Cultural and Leisure: Recreation services 147,500 104,365 43,135 80,544 Community services 473,408 378,084 95,324 258,262 Total Cultural and Leisure $ 620.908 $ 482,449 $ 138,459 $ 338,806 40 CITY OF CHINO HILLS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) GENERALFUND FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Debt Service: Principal Interest and fiscal charges Total Debt service Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of capital leases Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year Restatement Beginning of Fiscal Year, as restated Excess of Revenues and other Sources over (under) Expenditures and Other Uses (GAAP Basis) Residual Equity Transfer End of Fiscal Year Budget $ 17,097 $ 5,276 22,373 15,158, 400 (1,249,600) 1998 Variance - Favorable Actual (Unfavorable) 17,097 $ $ 5,276 22,373 13,116,664 2,041,736 1,687,847 2,937,447 Schedule 3 Page 1 of 2 1997 Actual 4,362 55 4,417 11,428,015 1,139, 278 - 103,715 103,715 678,798 340,500 342,840 2,340 678,798 (447,800) (301,340) 146,460 (4,091,307) (107,300) 145,215 252,515 (3,412,509) (1,356,900) 1,833,062 3,189,962 (2,273,231) 547,282 547,282 $ (1,356,900) $ 2,380,344 $ 3,737,244 $ (2,273,231) $ 9,332,320 $ 9,332,320 $ $ 11,863,093 - (31,415) (31,415) 9,332,320 9,300,905 (31,415) 11,863,093 (1,356,900) 2,380,344 3,737,244 (2,273,231) - 96 - (257,542) $ 7,975,420 $ 11,681,345 $ 3,705,925 $ 9,332,320 41 THIS PAGE INTENTIONALLY LEFT BLANK 42 SPECIAL REVENUE FUNDS Liqhtinq 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. Sleepy Hollow Road Improvement - 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 Siqnal 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 Qualitv - 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 '/ 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. Recreation - To account for receipts and expenditures of money in providing cultural and recreational programs. Street Sweepinq - 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 Policinq - 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. 43 CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS JUNE 30, 1998 Lighting and Sleepy Landscape Hollow Road Development District Improvement Fee A S S E T S Cash and investments $ 13,616,967 $ Receivables (net of allowances): Accounts receivable 3,266 Interest 211,200 Taxes - Grants - Special assessments 118,772 Deferred special assessments - Due from other funds 28,780 Due from other governments - Total Assets $ 13,978,985 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 374,923 $ Salaries and benefits payable 40,614 Retentions payable - Due to other funds 278,875 Due to other governments - Deferred revenue - Total Liabilities 694,412 Fund Balances: Reserved: Long term deferred special assessment receivable - Encumbrances 137,426 Unreserved: Designated for: Structural replacement 10,913,329 Capital improvements - Assessment district lien payoffs - Cash flow 2,233,818 Undesignated - Total Fund Balances 13,284,573 Total Liabilities and Fund Balances $ 13,978,985 $ Schedule 4 Page 1 of 3 Parkland FBA Fee 66,110 $ 9,794,430 $ 2,011,269 $ 3,348,629 981 137,673 29,613 47,397 412 - - 1,389,327 67,503 $ 11, 321, 430 $ 2,040,882 $ 3,396,026 $ 23,457 $ 823 $ 340 1,710 340 23,457 823 1,710 1,389,327 73,348 579,200 331,626 67,163 8,924,472 2,040,059 3,394,316 67,163 11,297,973 2,040,059 3,394,316 67,503 $ 11,321,430 $ 2,040,882 $ 3,396,026 44 Schedule 4 Page 2 of 3 Traffic Air Federal Solid Signal Fee Gas Tax Quality Grants Measure I Waste Recreation $ 220,589 $ 1,690,698 $ 216,718 $ 26,923 $ 1,491,087 $ 368,786 $ 81,725 - - - - - 464,707 - 3,204 26,049 3,047 566 22,003 - - 82,140 - - 35,685 - 24,962 - - - 14,512 - - - - $ 223,793 $ 1,798,887 $ 234,277 $ 52,451 $ 1,548,775 $ 833,493 $ 81,725 $ $ $ 177 $ 6,080 $ $ 784,235 $ 48,319 - - - 33,294 34,290 24,962 84,656 49,258 - - 21,409 - - - - 34,290 177 52,451 84,656 833,493 81,613 56,872 3,194 274,000 223,793 1,490,597 177,228 (3,194) 1,464,119 112 223,793 1,764,597 234,100 - 1,464,119 - 112 $ 223,793 $ 1,798,887 $ 234,277 $ 52,451 $ 1,548,775 $ 833,493 $ 81,725 45 A S S E T S Cash and investments Receivables (net of allowances): Accounts receivable Interest Taxes Grants Special assessments Deferred special assessments Due from other funds Due from other governments Total Assets CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS JUNE 30, 1998 Street Frontline Miscellaneous Sweeping Policing_ Grants $ 883,134 $ 122,103 $ 13,341 1,944 3,411 $ 899,886 $ 124,047 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 11,660 $ g Salaries and benefits payable - Retentions payable Due to other funds Due to other governments Deferred revenue _ Total Liabilities 11,660 Fund Balances: Reserved: Long term deferred special assessment receivable _ Encumbrances 8,530 Unreserved: Designated for: Structural replacement 879,696 Capital improvements - Assessment district lien payoffs Cash flow Undesignated - 124,047 Total Fund Balances 888,226 124,047 Total Liabilities and Fund Balances $ 899,886 $ 124,047 $ Schedule 4 Page 3 of 3 T O T A L S 1998 1997 2,171 $ 33,941,339 467,973 497,018 117,825 24,962 122,595 1,389,327 - 28,780 40,165 54,677 42,336 $ 36,644,496 $ 1,249,674 73,908 40,165 514,256 2,171 23,580 42,336 1,861,418 1,389,327 279,370 11, 793, 025 853,200 331,626 2,233,818 17, 902, 712 - 34,783,078 42,336 $ 36,644,496 $ 30,742,247 415,697 477,460 164,433 86,889 429,240 1,250,909 27,606 166,821 $ 33,761,302 $ 2,306,608 75,679 30,696 310,823 6,209 23,763 2,753,778 1,250,909 80,285 11, 201, 365 579,200 2,104,592 2,233,818 13, 557, 355 31,007,524 $ 33,761,302 M THIS PAGE INTENTIONALLY LEFT BLANK 47 CITY OF CHINO HILLS Schedule 5 COMBINING STATEMENT OF REVENUES, EXPENDITURES Page 1 of 3 AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Lighting and Sleepy Landscape Hollow Road Development Parkland District Improvement Fee FBA Fee Revenues: Special assessments $ 5,032,021 $ 10,352 $ - $ _ $ Use of money and property 807,584 3,488 493,598 108,265 156,849 Intergovernmental - - 18,352 - _ Development fees 12,366,473 609,793 1,084,683 Charges for services 5,956 _ _ Other 1,390,468 - 2,398 - 75,000 Total Revenues 7,236,029 13,840 12,880,821 718,058 1,316,532 Expenditures: Current: General government _ _ _ Public safety _ - _ Public works 6,224,605 1,100 1,110,892 30242 102,800 Culture and leisure _ Contribution to assessment districts - 5,630,944 Capital outlay 8,699 _ _ Debt Service: Principal - 3,151,192 463,188 Interest and fiscal charges - - 4,477,924 34,250 - Total Expenditures 6,233,304 1,100 14,370,952 527,680 102,800 Excess of Revenues over (under) Expenditures 1,002,725 12,740 (1,490,131) 190,378 1,213,732 Other Financing Sources (Uses): Proceeds of long term -term debt - - 4,225,422 - - Operating transfers in 1,035,700 - Operating transfers out (2,167,821) (5,232) (1,904,844) (5,079) (1,887) Total Other Financing Sources (Uses) (1,132,121) (5,232) 2,320,578 (5,079) (1,887) Excess of Revenues and Other Sources over (under) Expendi- tures and Other Uses $ (129,396) $ 7,508 $ 830,447 $ 185,299 $ 1,211,845 Fund Balances: Beginning of Fiscal Year $ 13,475,897 $ 59,655 $ 9,844,401 $ 1,854,760 $ 2,182,471 Restatement (61,928) - - - - Beginning of Fiscal Year - as restated 13,413,969 59,655 9,844,401 1,854,760 2,182,471 Excess of Revenues and Other Sources over (under) Expendi- tures and Other Uses (129,396) 7,508 830,447 185,299 1,211,845 Residual Equity Transfer - - 623,125 - - End of Fiscal Year $ 13,284,573 $ 67,163 $ 11,297,973 $ 2,040,059 $ 3,394,316 48 Schedule 5 Page 2 of 3 Traffic Air Federal Solid Signal Fee Gas Tax Quality Grants Measure I Waste Recreation 11,056 84,303 10,284 234 75,666 33,964 924,777 55,208 87,997 487,828 88,961 - _ - - 490 3,246,935 526,556 _ - - - 167 100,017 1,009,570 65,492 88,231 563,494 3,246,935 560,687 - - - 1,234 - _ 11,400 800 62,307 3,246,935 - - - 595,697 177 24,955 11,400 - 977 88,496 - 3,246,935 595,697 88,617 1,009,570 64,515 (265) 563,494 - (35,010) - 229,896 - _ _ - 95 9,800 (6,450) (682,297) - (272,752) (6,450) (452,401) - 95 (272,752) 9,800 $ 82,167 $ 557,169 $ 64,515 $ (170) $ 290,742 $ $ (25,210) $ 141,626 $ 1,176, 013 $ 169,585 $ 266 $ 1,173, 377 $ $ 25,322 - 31,415 - _ _ _ 141,626 1,207,428 169,585 266 1,173, 377 25,322 82,167 557,169 64,515 (170) 290,742 (25,210) - - - (96) - $ 2-23, 793 $ 1,764,597 $ 234,100 $ - $ 1,464,119 $ $ 112 WE CITY OF CHINO HILLS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Street Sweeping_ Revenues: Special assessments $ 173,240 $ Use of money and property 46,449 Intergovernmental - Development fees Charges for services Other Total Revenues 219,689 Expenditures: Current: General government Public safety Public works Culture and leisure Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long term -term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and Other Sources over (under) Expendi- tures and Other Uses $ Fund Balances: Schedule 5 Page 3 of 3 Frontline Miscellaneous T O T A L S Policinq_ Grant 1 9 9 8 1 9 9 7 - $ - $ 5,215,613 $ 5,436,894 8,163 - 1,839,903 1,646,240 118,254 17,133 1,709,549 1,993,586 - - 14,149,910 11,781,051 3,779,937 3,536,589 1,468,033 1,379,369 126,417 17,133 28,162,945 25,773,729 - 1,234 1,712 - 72,683 - 72,683 - 146,926 - 1,793 10, 939, 800 8,852,473 - - 595,697 508,790 - 5,630,944 7,920,136 18,375 52,206 900,480 - 3,614,380 3,279,243 - - - 4,512,174 2,349,385 146,926 91,058 1,793 25,419,118 23,812,219 72,763 35,359 15,340 2,743,827 1,961,510 - - - 4,455,318 4,952,615 1,045,595 3,996,300 - (15,340) (5,061,702) (2,319,868) - - (15,340) 439,211 6,629,047 72,763 $ 35,359 $ - $ 3,183,038 $ 8,590,557 Beginning of Fiscal Year $ 815,463 $ Restatement - Beginning of Fiscal Year - as restated 815,463 Excess of Revenues and Other Sources over (under) Expendi- tures and Other Uses 72,763 Residual Equity Transfer - End of Fiscal Year $ 888,226 $ 88,688 $ 88,688 35,359 124,047 $ $ 31, 007, 524 $ 22, 532, 024 (30,513) - 30, 977, 011 22, 532, 024 3,183,038 8,590,557 623,029 (115,057) $ 34,783,078 $ 31,007,524 50 THIS PAGE INTENTIONALLY LEFT BLANK 51 CITY OF CHINO HILLS Schedule 6 COMBINING SCHEDULE OF REVENUES, Page 1 of 11 EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public safety Public works Culture and leisure Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long term -term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatement Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Residual Equity Transfer End of Fiscal Year LIGHTING AND LANDSCAPE DISTRICT variance - Favorable Budget Actual (Unfavorable) $ 5,152,600 $ 5,032,021 $ - 576,100 807,584 231,484 - 5,956 5,956 1,361,600 1,390,468 28,868 7,090,300 7,236,029 266.308 7,154,300 6,362,031 792,269 10,500 8,699 1,801 7,164, 800 6,370,730 794,070 (74,500) 865,299 939,799 1,139,400 1,035,700 (103,700) (5,618,000) (2,167,821) 3,450,179 (4,478,600) (1,132,121) 3,346,479 (4,553,100) (266,822) 4,286,278 137,426 137,426 $ (4,553,100) $ (129,396) $ 4,423,704 $ 13, 475, 897 $ 13, 475, 897 $ - - (61, 928) (61, 928) 13, 475, 897 13,413, 969 (61, 928) (4,553,100) (129,396) 4,423,704 $ 8,922,797 $ 13,284,573 $ 4,361,776 52 SLEEPY HOLLOW ROAD IMPROVEMENT Variance - Favorable Budget Actual (Unfavorable) 12,100 $ 10,352 $ - 1,000 3,488 2,488 13,100 13,840 2,488 1,100 1,100 12,000 (50, 000) (50, 000) (38,000) (38,000) $ 59,655 $ 59,655 (38,000) 21,655 $ we 1,100 12,740 (5,232) (5,232) 7,508 7,508 $ 59,655 $ 59,655 7,508 67,163 $ 740 44,768 44,768 45,508 45,508 45,508 45,508 Schedule 6 Page 2 of 11 DEVELOPMENT FEES Variance - Favorable Budget Actual (Unfavorable) 208,800 493,598 284,798 - 18,352 18,352 9,031,500 12,366,473 3,334,973 - 2,398 2,398 9,240,300 12, 880, 821 3,640,521 1,249,500 1,184, 240 65,260 5,631,000 5,630,944 56 3,106, 700 3,151,192 (44, 492) 4,522,500 4,477,924 44,576 14,509, 700 14, 444, 300 65,400 (5,269,400) (1,563,479) 3,705,921 4,225,422 4,225,422 (1,904,900) (1,904,844) 56 (1,904,900) 2,320,578 4,225,478 (7,174,300) 757,099 7,931,399 - 73,348 73,348 $ (7,174,300) $ 830,447 $ 8,004,747 $ 9,844,401 $ 9,844,401 $ - 9,844,401 9,844,401 - (7,174,300) 830,447 8,004,747 - 623,125 623,125 $ 2,670,101 $ 11,297,973 $ 8,627,872 �m CITY OF CHINO HILLS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public safety Public works Culture and leisure Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long term -term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatement Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Residual Equity Transfer End of Fiscal Year Schedule 6 Page 3 of 11 FBA variance - Favorable Budget Actual (Unfavorable) 59,500 108,265 48,765 756,200 609,793 (146,407) 815,700 718,058 (97, 642) 30,700 30,242 458 527,700 463,188 64,512 35,800 34,250 1,550 594,200 527,680 66,520 221,500 190,378 (31,122) (26, 500) (5,079) 21,421 (26,500) (5,079) 21,421 195,000 185,299 (9,701) $ 195,000 $ 185,299 $ (9,701) $ 1,854,760 $ 1,854,760 $ 1,854,760 1,854,760 195,000 185,299 (9,701) $ 2,049,760 $ 2,040,059 $ (9,701) 54 Schedule 6 Page 4 of 11 PARKLAND FEE TRAFFIC SIGNAL FEE Variance- variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) 160,800 156,849 (3,951) 5,400 11,056 5,656 4,929,500 1,084,683 (3,844,817) 320,000 88,961 (231, 039) - 75,000 75,000 - - 5,090,300 1,316,532 (3,773,768) 325,400 100,017 (225,383) 102,800 102,800 11,400 11,400 102,800 102,800 11,400 11,400 4,987,500 1,213,732 (3,773,768) 314,000 88,617 (225,383) (6,505,000) (1,887) 6,503,113 (320,000) (6,450) 313,550 (6,505,000) (1,887) 6,503,113 (320,000) (6,450) 313,550 (1,517,500) 1,211,845 2,729,345 (6,000) 82,167 88,167 $ (1,517,500) $ 1,211,845 $ 2,729,345 $ (6,000) $ 82,167 $ 88,167 $ 2,182, 471 $ 2,182, 471 $ - $ 141,626 $ 141,626 $ - 2,182,471 2,182,471 - 141,626 141,626 - (1,517,500) 1,211,845 2,729,345 (6,000) 82,167 88,167 $ 664,971 $ 3,394,316 $ 2,729,345 $ 135,626 $ 223,793 $ 88,167 55 CITY OF CHINO HILLS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public safety Public works Culture and leisure Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long term -term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatement Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Residual Equity Transfer End of Fiscal Year Schedule 6 Page 5 of 11 GAS TAX Variance - Favorable Budget _ Actual (Unfavorable) 5,000 84,303 79,303 925,400 924,777 (623) 490 490 930,400 1,009,570 79,170 930,400 1,009,570 79,170 - 229,896 229,896 (1,736,700) (682, 297) 1,054,403 (1,736,700) (452,401) 1,284,299 (806,300) 557,169 1,363,469 $ (806,300) $ 557,169 $ 1,363,469 $ 1,176,013 $ 1,176,013 $ - - 31,415 31,415 1,176,013 1,207,428 31,415 (806,300) 557,169 1,363,469 $ 369,713 $ 1,764,597 $ 1,394,884 56 AIR QUALITY Variance - Favorable Budget Actual (Unfavorable) 5,800 10,284 4,484 53,500 55,208 1,708 59,300 65,492 6,192 800 800 58,400 57,049 1,351 59,200 57,849 1,351 100 7,643 7,543 100 7,643 7,543 - 56,872 56,872 $ 100 $ 64,515 $ 64,415 $ 169,585 $ 169,585 $ - 169,585 169,585 - 100 64,515 64,415 $ 169,685 $ 234,100 $ 64,415 Schedule 6 Page 6 of 11 FEDERAL GRANTS Variance - Favorable Budget Actual (Unfavorable) 200 234 34 297,000 87,997 (209,003) 297,200 88,231 (208,969) 3,100 1,234 1,866 276,100 62,308 213,792 26,900 28,148 (1,248) 306,100 91,690 214,410 (8,900) (3,459) 5,441 100 95 (5) 100 95 (5) (8,800) (3,364) 5,436 3,194 3,194 $ (8,800) $ (170) $ 8,630 $ 266 $ 266 $ - 266 266 - (8,800) (170) 8,630 - (96) (96) $ (8,534) $ - $ 8,534 57 CITY OF CHINO HILLS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Budget Revenues: Special assessments $ - Use of money and property 20,000 Intergovernmental 407,900 Development fees _ Charges for services Other _ Total Revenues 427,900 Expenditures: Current: General government Public safety Public works Culture and leisure Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures 427,900 Other Financing Sources (Uses): Proceeds of long term -term debt Operating transfers in Operating transfers out (969,700) Total Other Financing Sources (Uses) (969,700) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) (541,800) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) $ (541,800) Fund Balances: Beginning of Fiscal Year, as originally reported $ 1,173,377 Restatement - Beginning of Fiscal Year, as restated 1,173,377 Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) (541,800) Residual Equity Transfer - End of Fiscal Year $ 631,577 MEASUREI Actual 75,666 487,828 563,494 563,494 (272, 752) (272, 752) 290,742 $ 290,742 $ 1,173, 377 1.173, 377 290,742 $ 1,464,119 Schedule 6 Page 7 of 11 Variance - Favorable (Unfavorable) 55,666 79,928 135.594 135.594 696,948 696,948 832,542 $ 832,542 832,542 $ 832,542 58 Schedule 6 Page 8 of 11 SOLID WASTE RECREATION Variance- Variance - Favorable Favorable Budget Actual (Unfavorable) Bud; eq t_ Actual (Unfavorable) 69,200 33,964 (35,236) 3,097,500 3,246,935 149,435 592,600 526,556 (66,044) - - - - 167 167 3,097,500 3,246,935 149,435 661,800 560,687 (101,113) 3,247,000 3,246,935 65 - - - - - - 672,000 595,697 76,303 3,247,000 3,246,935 65 672,000 595,697 76,303 (149,500) - 149,500 (10,200) (35,010) (24,810) 9,800 9,800 - 9,800 9,800 (149,500) - 149,500 (400) (25,210) (24,810) $ (149,500) $ $ 149,500 $ (400) $ (25,210) $ (24,810) $ $ $ - $ 25,322 $ 25,322 $ - 25,322 25,322 (149,500) 149,500 (400) (25,210) (24,810) $ (149,500) $ $ 149,500 $ 24,922 $ 112 $ (24,810) 59 CITY OF CHINO HILLS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Revenues: Special assessments Use of money and property Intergovernmental Development fees Charges for services Other Total Revenues Expenditures: Current: General government Public safety Public works Culture and leisure Contribution to assessment districts Capital outlay Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Proceeds of long term -term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year, as originally reported Restatement Beginning of Fiscal Year, as restated Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Residual Equity Transfer End of Fiscal Year STREET SWEEPING Schedule 6 Page 9 of 11 Variance Favorable Budget Actual (Unfavorable) $ 238,500 $ 173,240 $ (65,260) 35,400 46,449 11,049 273,900 219,689 (54, 211) 171,200 155,456 15,744 171,200 155,456 15.744 102,700 64,233 (38, 467) 102,700 64,233 (38, 467) - 8,530 8,530 $ 102,700 $ 72,763 $ (29,937) $ 815,463 $ 815,463 $ 815,463 815,463 102,700 72,763 (29, 937) $ 918,163 $ 888,226 $ (29,937) .E FRONTLINE POLICING MISCELLANEOUS GRANTS Schedule 6 Page 10 of 11 Variance variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) 71400 8,163 763 - - 134,300 11'8,254 (16,046) 22,300 17,133 (5,167) 141,700 126,417 (15,283) 22,300 17,133 (5,167) 72,800 72,683 117 - - - - - - 1,800 1,793 7 67,200 18,375 48,825 140,000 91,058 48,942 1,800 1,793 7 1,700 35,359 33,659 20,500 15,340 (5,160) (20,500) (15,340) (5,160) - - - (20,500) (15,340) (5,160) 1,700 35,359 33,659 $ 1,700 $ 35,359 $ 33,659 $ $ $ $ 88,688 $ 88,688 $ - $ $ $ 88,688 88,688 1,700 35,359 33,659 $ 90,388 $ 124,047 $ 33,659 61 CITY OF CHINO HILLS Schedule 6 COMBINING SCHEDULE OF REVENUES, Page 11 of 11 EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 1998 1997 Variance Favorable Budget Actual (Unfavorable) Actual Revenues: Special assessments $ 5,403,200 $ 5,215,613 $ (187,587) $ 5,436,894 Use of money and property 1,154,600 1,839,903 685,303 1,646,240 Intergovernmental 1,840,400 1,709,549 (130,851) 1,993,586 Development fees 15,037,200 14,149,910 (887,290) 11,781.051 Charges for services 3,690,100 3,779,937 89,837 3,536,589 Other 1,361,600 1,468,033 106,433 1,379,369 Total Revenues 28,487,100 28,162,945 (324,155) 25,773,729 Expenditures: Current: General government 3,100 1,234 1,866 1,712 Public safety 72,800 72,683 117 - Public works 12,246,700 11,159,105 1,087,595 8,852,473 Culture and leisure 672,000 595,697 76,303 508,790 Contribution to assessment districts 5,631,000 5,630,944 56 7,920,136 Capital outlay 163,000 112,271 50,729 900,480 Debt Service: Principal 3,634,400 3,614,380 20,020 3,279,243 Interest and fiscal charges 4,558,300 4,512,174 46,126 2,349,385 Total Expenditures 26,981,300 25,698,488 1,282,812 23,812,219 Excess of Revenues over (under) Expenditures 1,505,800 2,464,457 958,657 1,961,510 Other Financing Sources (Uses): Proceeds of long term -term debt - 4,455,318 4,455,318 4,952,615 Operating transfers in 1,149,300 1,045,595 (103,705) 3,996,300 Operating transfers out (17,151,300) (5,061,702) 11,765,728 (2,319,868) Total Other Financing Sources (Uses) (16,002,000) 439,211 16,117,341 6,629,047 Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) (14,496,200) 2,903,668 17,399,868 8,590,557 Adjustments: To adjust for encumbrances 279,370 279,370 - Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) $ (14,496,200) $ 3,183,038 $ 17,679,238 $ 8,590,557 Fund Balances: Beginning of Fiscal Year, as originally reported $ 31,007,524 $ 31,007,524 $ - $ 22,532,024 Restatement - (30,513) (30,513) - Beginning of Fiscal Year, as restated 31,007,524 30,977,011 (30,513) 22,532,024 Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) (14,496,200) 3,183,038 17,679,238 8,590,557 Residual Equity Transfer - 623,029 623,029 (115,057) End of Fiscal Year $ 16,511,324 $ 34,783,078 $ 18,271,754 $ 31,007,524 MA 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. 63 CITY OF CHINO HILLS COMPARATIVE BALANCE SHEET CHINO HILLS CORPORATION DEBT SERVICE FUND JUNE 30, 19N A S S E T S Cash and investments with fiscal agents LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Fund Balance: Reserved for debt service Total Liabilities and Fund Balances Schedule 7 1998 1997 $ 258,492 $ 252,997 $ 2,338 $ 256,154 252,997 $ 258,492 $ 252,997 M CITY OF CHINO HILLS Schedule 8 COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CHINO HILLS CORPORATION DEBT SERVICE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 1998 1998 1997 Revenues: Use of money and property $ 13,241 $ 12,515 Contribution from developers 421,593 413,509 Total Revenues 434,834 426,024 Expenditures: Current: General government 6,939 - Debt Service: Principal 370,000 355,000 Interest and fiscal charges 54,738 77,689 Total Expenditures 431,677 432,689 Excess of Revenues over (under) Expenditures 3,157 (6,665) Fund Balances: Beginning of Fiscal Year 252,997 259,662 End of Fiscal Year $ 256,154 $ 252,997 65 CITY OF CHINO HILLS COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL CHINO HILLS CORPORATION DEBT SERVICE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Revenues: Use of money and property Contributions from developers Total Revenues Expenditures: Current: General government Debt service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): Operating transfers in Loan proceeds Total Other Financing Sources (Uses) Excess of Revenues and other Sources over (under) Expenditures and Other Uses Fund Balances: Beginning of Fiscal Year End of Fiscal Year Schedule 9 1998 1997 Variance Favorable Budget Actual (Unfavorable) Actual $ 133,300 $ 13,241 $ (120,059) $ 12,515 - 421,593 (120, 059) 413,509 133,300 434,834 (240,118) 426,024 9,400 6,939 2,461 - 915,000 370,000 545,000 355,000 1,243,500 54,738 1,188,762 77,689 2,167, 900 431, 677 1,736,223 432,689 (2,034,600) 3,157 2,037,757 (6,665) 429,000 - (429,000) 1,738,900 (1,738,900) 2,167, 900 - (2,167, 900) 133,300 3,157 (130,143) (6,665) 252,997 252,997 259,662 $ 386,297 $ 256,154 $ (130,143) , $ 252,997 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. Communitv Facilities Districts: Reqional, #2 Los Ranchos, #5 Soquel Canvon and #9 Rincon Villaqe - To account for receipts and expenditures of money for the construction of projects on behalf of these community facilities districts. 67 CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL CAPITAL PROJECTS FUNDS JUNE 30, 1998 A S S E T S Cash and investments Receivables: Interest Due from other funds Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Retention payable Due to other funds Total Liabilities Fund Balances: Reserved: Encumbrances Unreserved: Undesignated Total Fund Balances Total Liabilities and Fund Balances Capital Improvement $ 199,030 772,318 $ 971,348 864,691 106,657 971,348 1,312,203 (1,312,203) 971,348 Schedule 10 Page 1 of 2 Pomona Construction 68 Schedule 10 Page 2 of 2 Community Facilities Districts #9 Rincon Regional Village _ $ 357,018 $ 1,024,386 7,998 11,506 - 74 $ 365,016 $ 1,035,966 T O T A L S 1998 1997 $ 1,580,434 $ 2,482,104 19,504 26,153 772,392 395,049 $ 2,372,330 $ 2,903,306 $ 113,112 $ 397,247 $ 1,375,050 $ 336,758 38,007 26,938 171,602 288,356 - - - 129,699 151,119 424,185 1,546,652 754,813 1,288,820 263,564 2,864,587 197,603 (1,074,923) 348,217 (2,038,909) 1,950,890 213,897 611,781 825,678 2,148,493 $ 365,016 $ 1,035,966 $ 2,372,330 $ 2,903,306 CITY OF CHINO HILLS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Schedule 11 Page 1 of 2 Capital Pomona Improvement Construction Revenues: Use of money and property $ $ 14,119 Contribution from developers Other Total Revenues 14,119 Expenditures: Current: Contribution to assessment districts Capital outlay 4,021.562 Total Expenditures 4,021.562 - Excess of Revenues over (under) Expenditures (4,021,562) 14,119 Other Financing Sources (Uses): Proceeds of long-term debt - _ Operating transfers in 4,021,562 Operating transfers out - (43,237) Total Other Financing Sources (Uses) 4,021,562 (43,237) Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses $ - $ (29,118) Fund Balances: Beginning of Fiscal Year $ $ 652,243 Restatement Beginning of Fiscal Year -as restated 652,243 Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses (29,118) Residual Equity Transfer (623,125) End of Fiscal Year $ $ 70 Schedule 11 Page 2 of 2 Community Facilities Districts #9 Rincon Regional Village T O T A L S 1998 1997 $ , 32,780 $ 45,498 $ 92,397 $ 127,016 - 615,709 615,709 304,385 4,400 10,608 15,008 - 37,180 671,815 723,114 431,401 - 318,330 318,330 387,824 462,607 382,705 4,866,874 3,337,611 462,607 701,035 5,185,204 3,725,435 (425,427) (29,220) (4,462,090) (3,294,034) - 205,231 4,021,562 2,055,187 (43,237) (309,710) 3,978,325 1,950,708 $ (425,427) $ (29,220) $ (483,765) $ (1,343,326) $ 639,324 $ 856,926 $ 2,148,493 $ 3,554,663 - (215,925) (215,925) - 639, 324 641,001 1,932,568 3,554,663 (425,427) (29,220) (483,765) (1,343,326) - - (623,125) (62,844) $ 213,897 $ 611,781 $ 825,678 $ 2,148,493 71 CITY OF CHINO HILLS COMBINING SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Revenues: Use of money and property Contribution from developers Other Total Revenues Expenditures: Current: Contribution to assessment districts Capital outlay Total Expenditures Excess of Revenues over (under) 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 Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year Restatement Beginning of Fiscal Year -as restated Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses Residual Equity Transfer End of Fiscal Year CAPITAL IMPROVEMENT Schedule 12 Page 1 of 4 Variance - Favorable Budget Actual (Unfavorable) 460,000 (460, 000) 460,000 (460, 000) 27,872,700 5.333,765 22,538,935 27, 872, 700 5.333, 765 22, 538.935 (27,412,700) (5,333,765) 22,078,935 27, 342, 700 4,021,562 (23, 321,138) 27,342,700 4,021,562 (23,321,138) (70,000) (1,312,203) (1,242,203) 1,312,203 1,312,203 $ (70,000) $ - $ 70,000 (70, 000) 70,000 $ (70,000) $ $ 70,000 72 Schedule 12 Page 2 of 4 POMONA CONSTRUCTION REGIONAL CFD Variance- Variance - Favorable Favorable Budget 'Actual (Unfavorable) Budget t _ Actual (Unfavorable) $ $ 14,119 $ 14,119 $ 3,000 $ 32,780 $ 29,780 - - 1,420,200 - (1,420,200) - - - 4,400 4,400 14,119 14,119 1,423,200 37,180 (1,386,020) 2,087,800 1,751,427 336,373 - - 2,087,800 1,751,427 336,373 14,119 14,119 (664, 600) (1,714,247) (1,049,647) (600,600) (43,237) (557,363) (600,600) (43,237) (557,363) (600, 600) (29,118) 571,482 (664, 600) (1,714,247) (1,049,647) - 1,288,820 1,288,820 $ (600, 600) $ (29,118) $ 571,482 $ (664, 600) $ (425, 427) $ 239,173 $ 652,243 $ 652,243 $ - $ 639,324 $ 639,324 $ - 652,243 652,243 - 639,324 639,324 - (600,600) (29,118) 571,482 (664,600) (425,427) 239,173 - (623,125) (623,125) - - $ 51,643 $ - $ (51,643) $ (25,276) $ 213,897 $ 239,173 73 CITY OF CHINO HILLS COMBINING SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) ALL CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Revenues: Use of money and property Contribution from developers Other Total Revenues Expenditures: Current: Contribution to assessment districts Capital outlay Total Expenditures Excess of Revenues over (under) 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 Sources over (under) Expenditures and Other Uses (Budgetary Basis) Adjustments: To adjust for encumbrances Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (GAAP Basis) Fund Balances: Beginning of Fiscal Year Restatement Beginning of Fiscal Year -as restated Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses Residual Equity Transfer End of Fiscal Year #9 RINCON VILLAGE CFD Schedule 12 Page 3 of 4 Variance - Favorable Budget Actual (Unfavorable) $ 13,000 $ 45,498 $ 32,498 4,379,700 615,709 (3,763,991) - 10,608 10,608 4,392,700 671,815 (3,720,885) 637,900 4,319,600 4,957,500 (564, 800) 160,300 (160, 300) (564, 800) $ (564,800) $ $ 856,926 $ 856,926 (564, 800) $ 292,126 $ 318,330 646,269 964,599 (292, 784) 3,673,331 3.673, 331 272.016 (160, 300) (160, 300) (320, 600) (292,784) 272,016 263,564 263,564 (29,220) $ 535,580 856,926 $ - (215,925) (215,925) 641,001 (215, 925) (29,220) 535,580 611,781 $ 319,655 74 Schedule 12 Page 4 of 4 1998 1997 Variance - Favorable Budget Actual (Unfavorable) Actual $ 16,000 $ 92,397 $ 76,397 $ 127,016 5,799,900 615,709 (5,184,191) 304,385 460,000 15,008 (444,992) - 6,275,900 723,114 (5,552,786) 431,401 637,900 318,330 319,570 387,824 34, 280,100 7,731,461 26, 548, 639 3,337,611 34,918,000 8,049,791 26,868,209 3,725,435 (28,642,100) (7,326,677) 21,315,423. (3,294,034) - - 205,231 27,503,000 4,021,562 (23,481,438) 2,055,187 (760,900) (43,237) 717,663 (309,710) 26, 742,100 3,978,325 (22, 763, 775) 1,950,708 (1,900,000) (3,348,352) 2,864,587 (1,448,352) (1,343,326) 2,864,587 $ (1,900,000) $ (483,765) $ 1,416,235 $ (1,343,326) $ 2,148,493 $ 2,148,493 $ - $ 3,554,663 - (215,925) (215,925) (62,844) 2,148,493 1,932,568 (215,925) 3,491,819 (1,900,000) (483,765) 1,416,235 (1,343,326) - (623,125) (623,125) - $ 248,493 $ 825,678 $ 577,185 $ 2,148,493 75 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. 76 CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS JUNE 30, 1998 Schedule 13 Page 1 of 2 Water Sewer TOTAL ASSETS Utility Utility 1 9 9 8 1 9 9 7 Current assets: Cash and investments $ 16,756,037 $ 7,158,804 $ 23,914,841 $ 18,184,897 Restricted assets: Cash and investments with fiscal agents 2,667 - 2,667 2,546 Accounts receivable, net of allowances 1,322,711 511,571 1,834,282 1,801,940 Accrued interest receivable 253,116 97,620 350,736 302,878 Prepaid items - - - 102,936 Deposits 110,000 110,000 110,000 Deposit with Water Facilities Authority - - 14,525 Lease payments receivable - current 277,140 277,140 252,960 Due from other funds 45,081 - 45,081 58,175 Due from other agencies 319,491 10,674 330,165 74,489 Inventories 163,447 476 163,923 163,923 Total Current Assets 19,249,690 7,779,145 27,028.835 21,069,269 Non -Current Assets: Lease payments receivable 1,387,560 1,387,560 1,664,700 Installment obligations receivable 901,584 901,584 901,584 Deferred charges 537,851 537,851 565,811 Investment in Water Facilities Authority 4,689,642 4,689,642 4,832,321 Total Non -Current Assets 7,516,637 7,516,637 7,964,416 Property, Plant and Equipment: Land 3,062,759 12,000 3,074,759 3,074,759 Easement 537,940 - 537,940 537,940 Utility plant in service 18,075,125 1,881,778 19,956,903 19,956,903 Pipeline in service 49,378,133 24,715,101 74,093,234 73,460,731 Meters 1,041,475 - 1,041,475 944,540 Buildings and improvements 130,236 - 130,236 130,236 Equipment 286,334 146,127 432,461 424,760 Construction in progress 2,051,900 - 2,051,900 716,197 Total Property, Plant and Equipment 74,563,902 26,755,006 101,318,908 99,246,066 Less accumulated depreciation (12,131,690) (5,785,825) (17,917,515) (15,586,319) Net Property, Plant and Equipment 62,432,212 20,969,181 83,401,393 83,659,747 Total Assets $ 89,198,539 $ 28,748,326 $ 117,946,865 $ 112,693,432 77 CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS JUNE 30, 1998 Schedule 13 Page 1 of 2 Water Sewer TOTAL Utility Utility 1 9 9 8 1 9 9 7 LIABILITIES AND FUND EQUITY Current Liabilities: Accounts and contracts payable $ 988,180 $ 305,308 $ 1,293,488 $ 1,731,062 Accrued salaries payable _ Salaries and benefits payable 51,384 9,517 60,901 56,364 Deposits Funds held for others 584,633 325,481 910,114 810,559 Due to other funds 382,396 55,100 2,067 55,100 384,463 55,100 31,067 Due to other governments _ 5,056 5,056 5,607 Due to developers 8,160 - 8,160 Compensated absences 600 500 1,100 600 Certificates of participation - current 590,000 - 590,000 545,000 Accrued interest payable 47,936 - 47,936 99,050 Total Current Liabilities 2,653,289 703,029 3,356,318 3,334,409 Non -Current Liabilities: Certificates of participation 19,078,351 - 19,078,351 19,617,557 Developer program obligations 1,381,119 979,036 2,360,155 2,409,474 Advances for construction 215,166 215,166 267,102 Compensated absences payable 78,340 13,548 91,888 78,434 Total Long -Term Liabilities 20,752,976 992,584 21,745,560 22,372 567 Total Liabilities 23,406,265 1,695,613,000 25,101,878 25.706,976 Fund Equity: Contributed capital 56,866,563 22,635,463 79,502,026 75,379,839 Retained earnings: Reserved: Facility and equipment replacement Retained earnings 8,925,711 4,417,250 13,342,961 11,606,617 Total Fund Equity 65,792,274 27,052,713 92,844,987 86,986,456 Total Liabilities and Fund Equity $ 89,198,539 $ 28,748,326 $ 117,946,865 $ 112,693,432 78 CITY OF CHINO HILLS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Schedule 14 Water Sewer TOTAL Operating Revenues: Utility Utility 1 9 9 8 1 9 9 7 Charges for services fro SOU -7-7, n -r 4 $ 9,212,022 �, $ Permit and inspection fees 3,609,974 $ 12,821,996 $ 13,309,725 Fo 1567 z y 79,819 Meter and installation fees 328,383 ,, - - 79,819 328,383 103,455 291,697 Other F r, 7,656 ,�O D � (,. �, 5; I Yo 228 7,884 238,026 Total Operating Revenues �('� ' -7q0 9,627,880 3,610,202 13,238,082 13,942,903 FD Operating Expenses: Purchased water 4,364,873 0 - 4,364,873 5,008,313 Salaries and benefits 867,505Q Utilities F°'°© c�`�' 20 524,202 rig So? h 142,423 19,884 1,009,928 544,086 923,340 491,849 . Contractual services 697,651 1,781,822 2,479,473 2,488,446 Depreciation and amortization F9 5-60 335-, b45 1,658,917 Repairs and maintenance q° M F� 07 boo, sz 3 536,168 689,781 2,348,698 2,293,653 Services and supplies$`(z�34 00 1t90H,'3o7 113,708(, Other and �BSp00 73,526 4,695 609,694 118,403 547,756 135,847 general administrative .Sad 2,259,307 222,863 2,482,170 1,485,286 Total Operating Ex tD s� /0� S�6, z$ P 9 Expenses ro5-a, �ISG aoJ 11,022,331 2,934,994 13,957,325 13,374,490 Operating Income (loss) ra l0o <,9 �o, q$$�(1,394,451) r-O5'07 <14S3,'11e3, 675,208 (719,243) 568.413 Nonoperating Revenues (Expenses): FV 5150' 373, lea o'] Interest earnings F.0 5o7 S°�,`f�$ 876,318 337,947 1,214,265 1,001,889 Proceeds of long-term debt Fd 5a 7 892,734 - 892,734 - Rents & leases FP So ® 154,889 154,889 Other revenues Fo 5-0 0 162,342 162,342 Interest expense Fo y o o (1,196,823) (1,196,823) (1,473,133) Loss on investment in Water Facilities Authority (150,815) (150,815) (109,191) Contributed to other funds FD 500 (28,900) (28,900) Gain (loss) on disposal of assets _ _ _ f✓ soo <L s'S ,'r� Total Nonoperating Revenues (Expenses 709,745 337,947 1,047,692 (580,435) Net Income (Loss) before Operating ransfers�`$45'yot� � (684,706) 1,013,155 328,449 (12,022) ro sn 7 q ►r, b'►; Operating transfers in Operating transfers out (25,000) FDsap�l, Spiro, 405 Net Income (Loss) (684,706) 1,013,155 328,449 (37,022) 1=DSo7 91 Add hack depreciation related to contributed capital ro Soo 773,425 635,246 1,408,671 1,376,505 Less increase in contributed capital _ _ i,. Increase (decrease) in retained earnings 88,719 � 1,648,401 1,737,120 1,339,483 P7o so7 91I,09 Retained Earnings: F-o S-00 t9, gb(o, t rg Beginning of Fiscal Year F 5-07 <tl, 02-16, 3y9 % j 8,837,769 2,768,849 11,606,618 10,416,311 Residual equity transfers out rp SOa (777) - (777) (149,176) to sad /�,oy�,3bi End of Fiscal Year Fa ��t©r I I 46, yr5o, $ 8,925,711 $ 4,417,250 $ 13,342,961 $ 11,606,618 79 CITY OF CHINO HILLS COMBINING STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Cash Flows from Operating Activities: Operating Income Adjustment to reconcile Operating Income to Net Cash: Depreciation and amortization Changes in Assets and Liabilities: Increase decrease in accounts receivable Increase decrease in accrued interest receivable Increase decrease in prepaid items Increase decrease in due from other funds Increase decrease in due from other agencies Increase decrease in inventory Increase decrease in deposit with Water Facilities Authority Increase decrease in accounts and contracts payable Increase decrease in salary and benefits payable Increase decrease in customer deposits Increase decrease in due to other funds Increase decrease in due to other governments Increase decrease in due to developers Increase decrease in compensated absences Increase decrease, in accrued interest payable Total Adjustments Net Cash Provided (Used) by Operating Activities Cash Flows from Noncapital Financing Activities: Equity transfers out Operating transfers out Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Repayment of 1996 Certficate of Participation Repayment of advances for construction Contributed capital received Interest paid Purchases of property, plant and equipment Lease payments received Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Investments Cash and Investments at Beginning of Year Cash and Investments at End of Year Schedule 15 Water Sewer TOTALS Utility Utility 1 9 9 8 1 9 9 7 $ (1,394,451) $ 675,208 $ (719,243) $ 568,413 1,658,917 689,781 2,348,698 2,293,653 14,388 (35,064) S46,730 112,794� 32,342) �47,858) 302,440 (1,288) 102,936 - 102,936 13,094 (245,002) (10,674) 13,094 (255,676) 4,862 - (33,141) 14,525 - 14,525 (449, 358) 11,784 (437, 574) 33,592 2,736 99,555 1,801 4,537 10,801 372,078 (18,682) 99,555 353,396 162,450 (357,629) (5,607) 5,056 (551) 8,160 - 8,160 - 10,842 (51,114) 3,112 - 13,954 (51.114) 6,047 1,511,086 622,654 2,133, 740 2,421.787 116,635 1,297,862 1,414,497 2,990,200 (777) - (777) (134,132) - (25,000) (m) (777) (159,132) (545,000) (545,000) (420,000) (3,728) (48, 208) (51, 936) (63, 964) 3,505,406 178,128 3,683,534 3,364,682 (150,815) - (150,815) (1,577,084) (103,079) (103,079) (216,443) 252,960 - 252,960 232,500 2,955,744 129,920 3,085,664 1,319,691 892,734 337,947 1,230,681 874,519 892,734 337,947 1,230,681 874,519 3,964,336 1,765,729 5,730,065 5,025,278 12, 794, 368 5,393,075 18,187, 443 13,162,165 $ 16,758,704 $ 7,158,804 $23,917,508 $ 18,187,443 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. 81 ASSETS Current assets: Cash and investments Accounts receivable, net of allowances Accrued 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 AND FUND EQUITY Current Liabilities: Accounts and contracts payable Salaries and benefits payable Compensated absences Total Current Liabilities Long -Term Liabilities: Compensated absences payable Total Long -Term Liabilities Total Liabilities Fund Equity: Contributed capital Retained earnings: Unreserved Total Fund Equity Total Liabilities and Fund Equity CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL INTERNAL SERVICE FUNDS JUNE 30, 1998 Equipment Maintenance Data Processinq_ Schedule 16 TOTAL 1998 1997 $ 2,536,554 $ 637,313 $ 3,173,867 $ 2,665,297 3,420 - 3,420 - 37,576 9,043 46,619 33,804 2,577,550 646,356 3,223,906 2,699,101 1,742,285 - 1,742,285 1,766,843 265,159 583,584 848,743 876,464 2,007,444 583,584 2,591,028 2,643,307 (1,629,452) (425,408) (2,054,860) (2,077,339) 377,992 158,176 536,168 565,968 $ 2,955,542 $ 804,532 $ 3,760,074 $ 3,265,069 $ 35,708 $ 35,590 $ 71,298 $ 45,661 1,983 - 1,983 2,621 500 - 500 3,736 38,191 35,590 73,781 52,018 1,175 - 1,175 500 1,175 - 1,175 500 39,366 35,590 74,956 52,518 1,998,098 501,800 2,499,898 2,528,947 918,078 267,142 1,185, 220 683,604 2,916,176 768,942 3,685,118 3,212,551 $ 2,955,542 $ 804,532 $ 3,760,074 $ 3,265,069 CL CITY OF CHINO HILLS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Operating Revenues: Charges for services Other Total Operating Revenues Operating Expenses: Salaries and benefits Contractual services Depreciation and amortization Repairs and maintenance Services and supplies Other general and administrative Total Operating Expenses Operating Income (loss) Nonoperating Revenues (Expenses): Interest income Sale of property Gain (loss) on disposal of assets Total Nonoperating Revenues (Expenses) Net Income (Loss) Before Operating Transfers Operating transfers In Operating transfers out Net Income (Loss) Add back depreciation related to contributed capital Less Increase in contributed capital Increase (decrease) in retained earnings Retained Earnings: Beginning of Fiscal Year End of Fiscal Year Schedule 17 Equipment Data TOTAL Maintenance ProcessincL_ 1 9 9 8 1 9 9 7 $ 388,615 $ 289,500 $ 678,115 $ 578,400 10,089 - 10,089 6,761 398,704 289,500 688,204 585,161 25,691 - 25,691 39,848 3,802 101,643 105,445 65,923 93,405 72,660 166,065 147,959 84,781 15,114 99,895 128,445 79,449 19,907 99,356 126,712 324 80 404 666 287,452 209,404 496,856 509,553 111,252 80,096 191,348 75,608 131,110 31,957 163,067 128,803 10,118 - 10,118 _ - (1,656) (1,656) 141,228 30,301 171,529 128,803 252,480 110,397 362,877 204,411 15,600 (3,718) (3,718) - 248,762 110,397 359,159 220,011 90,738 51,719 142,457 139,434 339,500 162,116 501,616 359,445 578,578 $ 918,078 105,026 683,604 324,159 $ 267,142 $ 1,185, 220 $ 683,604 W CITY OF CHINO HILLS COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Cash Flows from Operating Activities: Operating Income Adjustment to reconcile Operating Income to Net Cash: Depreciation and amortization Changes in Assets and Liabilities: (Increase) decrease in accounts receivable (Increase) decrease in interest receivable Increase (decrease) in accounts and contracts payable Increase (decrease) in salary and benefits payable Increase (decrease) in compensated absences Total Adjustments Net Cash Provided (Used) by Operating Activities Cash Flows from Noncapitai Financing Activities: Transfers out Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Purchases of property, plant and equipment Gain (loss) on disposal of fixed assets Contributed capital received Cash received from sale of fixed assets Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest on investments Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Investments Cash and Investments at Beginning of Year Cash and Investments at End of Year Schedule 18 Equipment Data TOTALS Maintenance Processing_ 1 9 9 8 1 9 9 7 $ 111,252 $ 80,096 $ 191,348 $ 75,608 93,405 72,660 166,065 147,959 (3,420) (9,043) (12,463) - (3,772) - (3,772) - 22,544 3,093 25,637 34,238 (638) - (638) 2,621 (2,561) - (2,561) 4,236 105,558 66,710 172,268 189,054 216,810 146,806 363,616 264,662 (3,718) - (3,718) 15,600 (3,718) (3,718) 15,600 (3,066) (19,781) (22,847) (75,872) (1,656) (1,656) - - - 403,000 10,118 10,118 - 7,052 (21,437) (14,385) 327,128 131,100 31,957 163,057 121,470 131,100 31,957 163,057 121,470 351,244 157,326 508,570 728,860 2,185,310 479,987 2,665,297 1,936,437 $ 2, 536, 554 $ 637,313 $ 3,173, 867 $ 2,665,297 y AGENCY FUNDS Special Assessment Districts: AD #1994 and AD #1995 - 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: Reqional, #1 Rollinq Ridqe, #2 Los Ranchos, #4 The Oaks, #5 Rincon Villaqe, #6 Carbon Canyon, #8 Butterfield and #9 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. General Aqencv 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. 85 A S S E T S Cash and investments Cash and investments with fiscal agents Accrued interest receivable Special assessments receivable Due from other funds Total Assets LIABILITIES Accounts payable Accrued assessments payable Deposits Due to other funds Due to Chino Basin Municipal Water District Funds held for others Total Liabilities CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 1998 Special Assessment Districts AD #1994 AD #1995 Schedule 19 Page 1 of 3 Community Facilities Districts #1 Rolling Regional Ridge $ 697,203 $ 858,396 $ 2,522 $ 1,244,330 916,543 3,196,898 - 975,327 11,046 17,997 38 16,377 186,444 153,533 - 17.979 $ 1,811,236 $ 4,226,824 $ 2,560 $ 2,254,013 $ 450 $ 5,191 $ $ 2,680 9,764 6,993 - 1,801,022 4,214,640 2,560 2,251,333 $ 1,811,236 $ 4,226,824 $ 2,560 $ 2,254,013 Community Facilities Districts #2 #5 #6 Los #4 Rincon Carbon #8 Ranchos The Oaks Village Canyon Butterfield $ 2,382,564 $ 4,627,928 $ 1,664,982 $ 405,930 $ 1,004,819 26 296,923 215,479 - 307,233 33,247 67,982 23,807 5,837 15,496 22,775 6,529 7,366 1,583 8,837 $ 2,438,612 $ 4,999,362 $ 1,911,634 $ 413,350 $ 1,336,385 $ $ 2,693 $ 2,680 $ $ 2,680 2,438,612 4,996,669 1,908,954 413,350 1,333,705 $ 2,438,612 $ 4,999,362 $ 1,911,634 $ 413,350 $ 1,336,385 Schedule 19 Page 2 of 3 #9 Rincon Village $ 5,521,468 310 75,163 15,681 3,700 $ 5,616,322 $ 64,797 3,700 5,547,825 $ 5,616,322 87 CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 1998 General Agency Fund A S S E T S Cash and investments $ 12,935,422 Cash and investments with fiscal agents - Accrued interest receivable Special assessments receivable Due from other funds Total Assets $ 12,935,422 LIABILITIES Schedule 19 Page 3 of 3 T O T A L S 1998 1997 $ 31,345,564 $ 27,862,212 5,908,739 7,268,054 266,990 229,540 420,727 188,945 3,700 - $ 37,945,720 $ 35,548,751 Accounts payable $ 1,831,124 $ 1,912.295 $ 411,103 Accrued assessments payable - 16,757 - Deposits 3,884,138 3,884,138 3,225,313 Due to other funds 94,688 98,388 90,916 Due to Chino Basin Municipal Water District 7,125,472 7,125,472 11,262,056 Funds held for others - 24,908,670 20,559,363 Total Liabilities $ 12,935,422 $ 37,945,720 $ 35,548,751 Z1.3 CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Schedule 20 Page 1 of 4 Balance Balance July 1, 1997 Additions Deletions June 30, 1998 SPECIAL ASSESSMENT DISTRICT #1994 Assets: Cash and investments $ 481,096 $ 2,946,100 $ 2,729,993 $ 697,203 Cash and investments with fiscal agents 1,116,178 - 199,635 916,543 Accrued interest receivable 9,410 11,046 9,410 11,046 Special assessments receivable 4,883 181,561 - 186,444 Total Assets $ 1,611,567 $ 3,138,707 $ 2,939,038 $ 1,811,236 Liabilities: Accounts payable $ 168 $ 450 $ 168 $ 450 Accrued assessments payable - 9,764 - 9,764 Funds held for others 1,611,399 3,128,493 2,938,870 1,801,022 Total Liabilities $ 1,611,567 $ 3,138,707 $ 2,939,038 $ 1,811,236 SPECIAL ASSESSMENT DISTRICT #1995 Assets: Cash and investments $ 1,323,547 $ 7,702,847 $ 8,167,998 $ 858,396 Cash and investments with fiscal agent 3,040,672 12,623,627 12,467,401 3,196,898 Accrued interest receivable 17,652 17,997 17,652 17,997 Special assessments receivable 76,521 77,012 - 153,533 Total Assets $ 4,458,392 $ 20,421,483 $ 20,653,051 $ 4,226,824 Liabilities: Accounts payable $ 3,631 $ 5,191 $ 3,631 $ 5,191 Accrued assessments payable - 6,993 - 6,993 Funds held for others 4,454,761 20,409,299 20,649,420 4,214,640 Total Liabilities $ 4,458,392 $ 20,421,483 $ 20,653,051 $ 4,226,824 REGIONAL COMMUNITY FACILITIES DISTRICT Assets: Cash and investments $ 2,387 $ 425,961 $ 425,826 $ 2,522 Accrued interest receivable 38 38 38 38 Total Assets $ 2,425 $ 425,999 $ 425,864 $ 2,560 Liabilities: Funds held for others $ 2,425 $ 425,999 $ 425,864 $ 2,560 WE CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 COMMUNITY FACILITIES DISTRICT #1 Rollinq Ridge Assets: Cash and investments Cash and investments with fiscal agents Accrued interest receivable Special assesments receivable Total Assets Liabilities: Accounts payable Funds held for others Total Liabilities COMMUNITY FACILITIES DISTRICT #2 Los Ranchos Assets: Cash and investments Cash and investments with fiscal agents Accrued interest receivable Special assessments receivable Total Assets Liabilities: Funds held for others Total Liabilities COMMUNITY FACILITIES DISTRICT #4 The Oaks Assets: Cash and investments Cash and investments with fiscal agent Accrued interest receivable Special assessments receivable Total Assets Balance July 1, 1997 Additions Deletions Schedule 20 Page 2 of 4 Balance June 30, 1998 $ 665,464 $ 2,912,522 $ 2,333,656 $ 1,244,330 975,301 2,800,990 2,800,964 975,327 10,059 16,377 10,059 16,377 51,875 17,979 51,875 17,979 $ 1,702,699 $ 5,747,868 $ 5,196,554 $ 2,254,013 $ - $ 2,680 $ - $ 2,680 1,702,699 5,745,188 5,196, 554 2,251,333 $ 1,702,699 $ 5,747,868 $ 5,196,554 $ 2254,013 $ 3,659,550 $ 9,987,465 $ 11, 264, 451 $ 2,382,564 - 313,062 313,036 26 56,267 33,247 56,267 33,247 19,192 22,775 19,192 22,775 $ 3,735,009 $ 10,356,549 $ 11,652,946 $ 2,438,612 $ 3,735,009 $ 10,356,549 $ 11,652,946 $ 2,438,612 $ 3,735,009 $ 10,356,549 $ 11,652,946 $ 2,438,612 $ 1,817,088 $ 6,829,563 $ 4,018,723 $ 4,627,928 296,915 831,732 831,724 296,923 28,443 67,982 28,443 67,982 11,828 6,529 11,828 6,529 $ 2,154,274 $ 7,735,806 $ 4,890,718 $ 4,999,362 Liabilities: Accounts payable $ - $ 2,693 $ - $ 2,693 Funds held for others 2,154,274 7,733,113 4,890,718 4,996,669 Total Liabilities $ 2,154,274 $ 7,735,806 $ 4,890,718 $ 4,999,362 .e CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Schedule 20 Page 3 of 4 Balance Balance July 1, 1997 Additions Deletions June 30, 1998 COMMUNITY FACILITIES DISTRICT #5 Rincon Villaae Assets: Cash and investments $ 1,097,194 $ 3,294,691 $ 2,726,903 $ 1,664,982 Cash and investments with fiscal agents 215,473 608,152 608,146 215,479 Accrued interest receivable 19,078 23,807 19,078 23,807 Special assessments receivable 4,965 7,366 4,965 7,366 Total Assets $ 1,336,710 $ 3,934,016 $ 3,359,092 $ 1,911,634 Liabilities: Accounts payable $ - $ 2,680 $ - $ 2,680 Funds held for others 1,336,710 3,931,336 3,359,092 1,908,954 Total Liabilities $ 1,336,710 $ 3,934,016 $ 3,359,092 $ 1,911,634 COMMUNITY FACILITIES DISTRICT #6 Carbon Canvon Assets: Cash and investments $ 270,646 $ 707,244 $ 571,960 $ 405,930 Accrued interest receivable 4,191 5,837 4,191 5,837 Special assessments receivable 1,263 1,583 1,263 1,583 Total Assets $ 276,100 $ 714,664 $ 577,414 $ 413,350 Liabilities: Funds held for others $ 276,100 $ 714,664 $ 577,414 $ 413,350 COMMUNITY FACILITIES DISTRICT #8 Butterfield Assets: Cash and investments $ 864,509 $ 2,955,603 $ 2,815,293 $ 1,004,819 Cash and investments with fiscal agents 307,224 854,408 854,399 307,233 Accrued interest receivable 24,014 15,496 24,014 15,496 Special assessments receivable 14,309 8,837 14,309 8,837 Total Assets $ 1,210,056 $ 3,834,344 $ 3,708,015 $ 1,336,385 Liabilities: Accounts payable $ - $ 2,680 $ - $ 2,680 Due to other funds 57,746 - 57,746 - Funds held for others 1,152,310 3,831,664 3,650,269 1,333,705 Total Liabilities $ 1,210,056 $ 3,834,344 $ 3,708,015 $ 1,336,385 91 CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Schedule 20 Page 4 of 4 Balance Balance July 1, 1997 Additions Deletions June 30, 1998 COMMUNITY FACILITIES DISTRICT #9 Rincon Villaqe Assets: Cash and investments $ 4,069,179 $ 16,346,786 $ 14,894,497 $ 5,521,468 Cash and investments with fiscal agents - 3,846,770 3,846,460 310 Accrued interest receivable 60,388 75,163 60,388 75,163 Special assessments receivable 4,109 15,681 4,109 15,681 Due from other funds 3,700 - 3,700 Total Assets $ 4,133,676 $ 20,288,100 $ 18,805,454 $ 5,616,322 Liabilities: Accounts payable $ - $ 64,797 $ - $ 64,797 Due to other funds - 3,700 - 3,700 Funds held for others 4,133,676 20,219,603 18,805,454 5,547,825 Total Liabilities $ 4,133,676 $ 20,288,100 $ 18,805,454 $ 5,616,322 GENERAL AGENCY FUND Assets: Cash and investments $ 14,927,843 $ 2,551,467 $ 4,543,888 $ 12,935,422 Liabilities: Accounts payable $ 407,304 $ 1,831,124 $ 407,304 $ 1,831,124 Deposits 3,225,313 658,825 - 3,884,138 Due to other funds 33,170 61,518 - 94,688 Due to CBMWD 11,262,056 - 4,136,584 7,125,472 Total Liabilities $ 14,927,843 $ 2,551,467 $ 4,543,888 $ 12,935,422 TOTALS - ALL AGENCY FUNDS Assets: Cash and investments $ 29,178,503 $ 56,660,249 $ 54,493,188 $ 31,345,564 Cash and investments with fiscal agents 5,951,763 21,878,741 21,921,765 5,908,739 Accrued interest receivable 229,540 266,990 229,540 266,990 Special assessments receivable 188,945 339,323 107,541 420,727 Due from other funds - 3,700 - 3,700 Total Assets $ 35,548,751 $ 79,149,003 $ 76,752,034 $ 37,945,720 Liabilities: Accounts payable $ 411,103 $ 1,912,295 $ 411,103 $ 1,912,295 Accrued assessments payable - 16,757 - 16,757 Deposits 3,225,313 658,825 - 3,884,138 Due to other funds 90,916 65,218 57,746 98,388 Due toCBMWD 11,262,056 - 4,136,584 7,125,472 Funds held for others 20,559,363 76,495,908 72,146,601 24,908,670 Total Liabilities $ 35,548,751 $ 79,149,003 $ 76,752,034 $ 37,945,720 92 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 Lonq-Term Debt Account Group - To account for the unmatured long-term indebtedness of the City. 93 CITY OF CHINO HILLS Schedule 21 COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS JUNE 30, 1998 1998 1997 General Fixed Assets: Land $ 12,370,989 $12,370,989 Buildings 2,242,782 2,162,782 Equipment 685,410 542,699 Total General Fixed Assets $15,299,181 $15,076,470 Investment in General Fixed Assets by Souces: General fund $ 2,916,054 $ 2,715,190 Special revenue funds 359,069 337,222 Capital project funds 12,024,058 12,024,058 Total investment in general fixed assets $15,299,181 $15,076,470 94 Function and Activity General Government: City Clerk City Manager Community Development Community Services Planning Finance Facility Maintenance Other Total General Government Public Safety Services: Police Total Public Safety Highways & Streets: Engineering Public Works Total Highways & Streets Parks & Landscape Total General Fixed Assets CITY OF CHINO HILLS STATEMENT OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY JUNE 30, 1998 Schedule 22 Land Buildings Equipment Total $ - $ $ 43,954 $ 43,954 7,417 7,417 14,439 14,439 12,186 12,186 9,364 9,364 72,233 72,233 230,446 230,446 2,242,782 5,806 2,248,588 2,242,782 395,845 2,638,627 - 70,177 70,177 70,177 70,177 16,730 16,730 23,590 23,590 40,320 40,320 12,370,989 - 179,068 12,550,057 $12,370,989 $ 2,242,782 $ 685,410 $15,299,181 95 Function and Activity General Government: City Clerk City Manager Community Development Community Services Planning Finance Facility Maintenance Other Total General Government Public Safety Services: Police Total Public Safety Highways & Streets: Engineering Public Works Total Highways & Streets Parks & Landscape Total General Fixed Assets CITY OF CHINO HILLS SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FOR THE FISCAL YEAR ENDED JUNE 30, 1998 Balance July 1, 1997 Additions $ 17,187 $ 28,582 $ 7,417 - 10,020 14,439 1,798 12,186 - 9,364 210,937 12,774 13,469 216,977 2,168,588 80,000 2,429,416 374,322 35,829 34,348 35,829 34,348 Schedule 23 Balance Deductions June 30, 1998 1,815 $ 43,954 - 7,417 10,020 14,439 1,798 12,186 - 9,364 151,478 72,233 - 230,446 2,248,588 165,111 2,638,627 70,177 70,177 52,003 - 35,273 16,730 12,729 10,861 - 23,590 64,732 10,861 35,273 40,320 12, 546, 493 7,460 3,896 12, 550, 057 $ 15,076,470 $ 426,991 $ 204,280 $ 15,299,181 m CITY OF CHINO HILLS Schedule 24 COMPARATIVE SCHEDULES OF GENERAL LONG-TERM DEBT JUNE 30, 1998 1998 1997 Amount Available and to be Provided for Payment of General Long -Term Debt: Amount available in debt service funds $ 256 154 $ 252,997 Amount to be provided 30,363,489 29,792,453 Total Amounts Available and to be Provided for the Payment of General Long -Term Debt $ 30,619,643 $ 30,045.450 General Long -Term Debt Payable: Compensated absences $ 226,547 $ 209,910 Advances from developers 967,146 1,104,102 Installment obligation due to Enterprise Fund 901,584 901,584 Development fee program obligations 26,670,999 25,800,192 Claims payable 736,853 859,662 Capital lease obligations 86,618 Certificates of Participation 800,000 1,170,000 Traffic signal reimbursement 229,896 Total General Long -Term Debt Payable $ 30,619,643 $ 30,045,450 �7 This page intentionally left blank. 98 STATISTICAL SECTION 99 Fiscal 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 Fiscal 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 City of Chino Hills General Governmental Revenues by Source (1) Last Seven Fiscal Years (2) (In Thousands Dollars) Special Licenses Use of Taxes Assess- and meats Permits Money and Property 252 7,197 19 3,655 4,507 6,653 977 3,764 4,957 6,266 993 2,519 4,913 5,454 1,349 3,097 5,031 5,151 1,492 2,796 5,227 5,437 1,952 2,973 5,982 5,216 2,981 3,269 Contri- butions from 0 3,212 426 647 669 718 1,037 Inter- Govern- 1,642 1,332 5,500 2,145 1,992 1,993 1,709 Charges Fines for and Other Services Forfeitures Revenue (3) Total 2 6 2,676 20,206 397 82 634 28,808 3,005 192 1,308 26,783 3,525 178 5,045 35,371 4,233 154 734 29,846 6,985 150 1,982 39,198 7,474 145 2,162 44,125 (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. Fiscal 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 Fiscal 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 General Governmental Expenditures by Function (1) Last Seven Fiscal Years (2) (In Thousands Dollars) General Govern- 1,923 2,635 2,360 2,020 3,514 3,388 3,410 Capital Outlay 7,685 7,790 19,680 8,233 6,427 4,238 4,919 Public 73 3,282 2,847 3,006 3,131 3,404 3,402 Debt 0 7,693 4,265 10,344 5,489 6,066 8,573 Public 6 13,569 8,282 10,005 10,476 10,680 12,341 Total 16,706 34,343 45,491 40,436 33,776 39,398 43,605 Community Develop- ment 11 1,072 1,824 3,463 1,769 2,466 3,946 (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. Culture and 0 0 642 1,326 868 848 1,065 Develop- ment 4,757 7,250 1,617 9,018 7,594 11,781 14,150 7,008 0 2,906 1,725 2,102 8,308 5,949 (3) 100 City of Chino Hills Secured Property Tax Levies And Collections (1) Last Seven Fiscal Years (2) Total Total Percent of Fiscal Current Current Levy Year L&YX 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% 1997-98 1,379,405 1,267,811 91.9% (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 Seven 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 1997-98 3,394,998 33,522 75,256 3,503,776 (1) Source : San Bernardino County Assessor. (2) The City was incorporated on December 1, 1991. 101 City of Chino Hills Property Value, Construction and Bank Deposits Last Seven Fiscal Years (1) (In Thousand Dollars) Property Value (2) Fiscal Year Commercial Residential Exemptions_ 1991-92 N/A N/A N/A Total N/A 1992-93 136,050 2,693,863 62,416 2,892,329 1993-94 117,796 2,924,827 65,156 3,107,778 1994-95 118,278 2,834,832 67,986 3,021,096 1995-96 204,341 2,868,306 70,618 3,143,265 1996-97 204,009 3,004,364 71,667 3,280,040 1997-98 227,893 3,200,627 75,256 3,503,776 Commercial Residential Construction (3) Construction (3) 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 1997-98 N/A N/A 2,298 183,502 236,511 (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. Fiscal 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 Property Tax Rates - All Direct and Overlapping Governments (1) Last Seven Fiscal Years (2) (In Thousands Dollars) General Basic N/A $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 Chino Unified School N/A $0.0333 $0.0250 $0.0288 $0.0336 $0.0490 $0.0000 Chino Basin Municipal Water N/A $0.0117 $0.0089 $0.0089 $0.0089 $0.0089 $0.0089 Total N/A $1.0450 $1.0339 $1.0377 $1.0425 $1.0579 $1.0089 (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-Recorder nor Assessor. 102 City of Chino Hills Computation of Direct and Overlapping Bonded Debt General Obligation Bonds Fiscal Year 1997-98 Assessed Valuation: $3,503,775,828 % Debt Direct and Overlapping Bonded Debt: Applicable 6/30/98 San Bernardino County General Fund Obligations 5.89900% $ 69,766,293 San Bernardino County Pension Obligations 5.89900% 22,560,025 Metropolitan Water District 0.4290% 2,381,400 Chaffey Community College District Certificates of Participation 14.0720% 1,053,289 Chino Unified School District 50.1540% 95,293 Chino Unified School District Certificates of Participation 50.1540% 51,202,848 City of Chino HIlls Certificates of Participation 100.0000% 810,000 City of Chino Hills 1915 Act Bonds 100.0000% 24,215,000 West Valley Vector Control District Certificates of Participation 39.9710% 402,699 San Bernardino Community Facilities District #1 100.0000% 8,610,000 San Bernardino Community Facilities District #2 100.0000% 4,775,000 San Bernardino Community Facilities District #4 100.0000% 2,635,000 San Bernardino Community Facilities District #5 100.0000% 1,855,000 San Bernardino Community Facilities District #8 100.0000% 2,725,000 San Bernardino Community Facilities District #9 100.0000% 22,325,000 San Bernardino County Assessment District #86-1 R 100.0000% 22,040,000 TOTAL DIRECT AND OVERLAPPING BONDED DEBT $237,451,847 (1) (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease obligations. Direct Debt ( $ 810,000) Total Direct and Overlapping Tax and Assessment Debt Total Debt 103 0.02% 2.62% 6.78% City of Chino Hills Principal Taxpayers (1) June 30, 1998 (In Thousands Dollars) 1997 Percent Assessed of Total Ta=pver Type of Business Valuation Valuation K/B Retain Properties, L.P. Shopping Center $22,827 0.65% ERP Operating Limited Partnership Developer 17,646 0.50% LBK, L.P. Developer 13,975 0.40% Zuf i Properties Company, Ltd. Developer 12,623 0.36% Evans Withycombe Residential, L.P. Developer 12,444 0.36% Lewis Development Company Developer 10,507 0.30% Quong-Lebowitz Developer 10,063 0.29% Costco Wholesale Corporation Shopping Center 9,609 0.27% Sterling Builders Inc. Developer 8,260 0.24% Boys Republic School 7,958 0.23% 125,912 3.59% Total Assessed Valuation for FY 1997-98 : $ 3,503,775,828 (1) Source: San Bernardino County Assessor. 104 City of Chino Hills Miscellaneous Statistics (1) June 30, 1998 Date of Incorporation December 1, 1991 Form of Government Council -Manager Number of full time employees 102 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 January 1, 1998 54,667 Facilities and services Miles of streets 170 Culture and Recreation: Parks 31 Park acreage 195 Sewerage System: Miles of sanitary sewers 245 Miles of storm sewers 190 Number of service connections 20,450 Average daily treatment in gallons 6.7 Million Gallon Water System: Miles of water mains 285 Number of service connections 17,889 Average daily consumption in gallons 11.56 Million Gallon Total Storage 31 Million Gallon Facilities and services not included in the primary government: Cable Television System: Miles of service 284 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. 105 This page intentionally left blank. 106