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1998-1999 CAFRCITY OF CHINO HILLS CALIFORNIA CITY OF CHINO HILLS COMPREHENSIVE ANNUAL FINANCIAL FISCAL YEAR ENDED JUNE 309 1999 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 307 1999 CITY OF CHINO HILLS CALIFORNIA CITY OF CHINO HILLS INCORPORATED 1991 Prepared By: City of Chino Hills Finance Department INTRODUCTORY SECTION CITY OF CHINO HILLS TABLE OF CONTENTS INTRODUCTORY SECTION Table of Contents Page Number Letter of Transmittal VII Organizational Chart XIV City Officials XV Certificate of Achievement for Excellence in Financial Reporting XVII FINANCIAL SECTION AUDITOR'S REPORT 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 g 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 13 Required Supplementary Information — Evaluation of the Year 2000 Issue 39 SUPPLEMENTARY SCHEDULES Schedule 1 - Balance Sheet - General Fund 5% Schedule 2 - Statement of Revenues, Expenditures, and Changes in Fund Balances — General Fund 43 Schedule 3 - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - General Fund 44 Schedule 4 - Combining Balance Sheet — All Special Revenue Funds 48 CITY OF CHINO HILLS TABLE OF CONTENTS Page Number SUPPLEMENTARY SCHEDULES (Continued) Schedule 5 - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - All Special Revenue Funds 52 Schedule 6 - Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - All Special Revenue Funds 56 Schedule 7 - Comparative Balance Sheet - Chino Hills Corporation Debt Service Fund 72 Schedule 8 - Comparative Statements of Revenues, Expenditures, and Changes in Fund Balances - Chino Hills Corporation Debt Service Fund 73 Schedule 9 - Comparative Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Chino Hills Corporation Debt Service Fund 74 Schedule 10 - Combining Balance Sheet - All Capital Projects Funds 76 Schedule 11 - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - All Capital Projects Funds 78 Schedule 12 - Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - All Capital Projects Funds 80 Schedule 13 - Combining Balance Sheet - All Enterprise Funds 84 Schedule 14 - Combining Statement of Revenues, Expenses, and Changes in Retained Earnings - All Enterprise Funds 86 Schedule 15 - Combining Statement of Cash Flows - All Enterprise Funds 87 Schedule 16 - Combining Balance Sheet - All Internal Service Funds 90 Schedule 17 - Combining Statement of Revenues, Expenses and Changes in Retained Earnings - All Internal Service Funds 91 Schedule 18 - Combining Statement of Cash Flows - All Internal Service Funds 92 Schedule 19 - Combining Balance Sheet - All Agency Funds 94 IV CITY OF CHINO HILLS TABLE OF CONTENTS Page Number SUPPLEMENTARY SCHEDULES (Continued) Schedule 20 - Combining Statement of Changes in Assets and Liabilities - AII Agency Funds 97 Schedule 21 - Comparative Schedules of General Fixed Assets 102 Schedule 22 - Statement of General Fixed Assets by Function and Activity 103 Schedule 23 - Schedule of Changes in General Fixed Assets by Function and Activity 104 Schedule 24 - Comparative Schedules of General Long -Term Debt 105 STATISTICAL SECTION Last Six Fiscal Years General Governmental Revenues by Source General Governmental Expenditures by Function Secured Property Tax Levies and Collections Assessed and Estimated Actual Values of Taxable Property Property Value, Construction and Bank Deposits Property Tax Rates - All Direct and Overlapping Governments Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds Principal Taxpayers Miscellaneous Statistics V THIS PAGE INTENTIONALLY LEFT BLANK VI December 7, 1999 Cl -n' OF CHAO HILLS 2001 GRAND AVENUE CHINO HILLS, CALIFORNIA 91709-4869 (909)364-2600 • (909)364-2695 FAX The Honorable Mayor and City Council City of Chino Hills, California CITY Cox V IL: F.O M. GRAHAM GARY G. LARSON G%kF\\ F. NORTON -PERRY JAMES S. THALYIA\ �iICHAFL G. 1V1c1:>iA\ The Comprehensive Annual Financial Report for the City of Chino Hills for the fiscal year ended June 30, 1999, 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 Sheriff's 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. City of Chino Hills Transmittal Letter 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 58,086 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 few years 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 500 building permits were issued for new residential units in the 1998- 99 fiscal year and it is estimated that at least 800 permits will be issued in the 1999-00 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, opened for business at 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. vin City of Chino Hills Transmittal Letter MAJOR INITIATIVES AND ACCOMPLISHMENTS The major initiatives and accomplishments for the 1998-99 fiscal year include: economic development, principally represented by the opening of the new 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 Butterfield Fire Station, the construction of and improvements at various park and landscape areas in the City, and the expansion of the interim civic center facilities. The major future initiatives that the City will undertake include the construction of a major sports park facility, completion of Grand Avenue Park, the McCoy Equestrian Center improvements, and the renovation of a recently acquired City maintenance facility. Other major initiatives include completion of the analysis for privatizing the City's water system and other City services, conducting community focus groups program, completion of the standardized development conditions, implementation of the neighborhood services program, and completion and implementation of the comprehensive financial strategy plan. FINANCIAL INFORMATION Accounting System and Budgetary Controls. Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgments by management. In addition, the City maintains budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund, special revenue funds, debt service, and capital projects funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level within the General Fund and at the function level for all other funds. 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. 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, 1999, and the amount and percentages of increases and decreases in relation to prior year revenues. Dollar amounts are expressed in thousands. ix City of Chino Hills Transmittal Letter The principal changes in the revenue categories were the increases in the Taxes, Contributions from Developers, and Charges for Services categories, as well as the decreases in the Use of Money and Property and Development Fees categories. The primary reason for these changes is the residential and commercial development occurring within the City of Chino Hills. The increase in Taxes is due to the increase in property tax from the new development and the sales tax generated from the new retail establishments that have opened for business in the City. The decrease in Use of Money and Property was primarily caused by the use of reserves (upon which investment earnings had previously been received) for constructing facilities in accordance with the City's capital improvement program. The increase in the contributions from Developers' revenue reflects the change in mix in the source of funds the City received to finance the construction of infrastructure needed for new development. The increase in the Charges for Services was due to the added activity caused by new development.. 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, 1999, and the amount and percentages of increases and decreases in relation to prior year expenditures. Dollar amounts are expressed in thousands. Increase Percent Percent (Decrease) of Increase Expenditures Amount of Total from 1998 (Decrease) Current: General Government $ 4,026 7.75 Increase Percent Public Safety 3,622 Percent (Decrease) of Increase Revenue Amount of Total from 1998 (Decrease) Community Development Taxes $7,293 16.09 $ 1,311 21.92 Special Assessments 5,216 11.51 - - Licenses and Permits 2,796 6.17 (185) (6.21) Use of Money and Property 2,762 6.09 (507) 15.51) Intergovernmental 1,857 4.10 148 8.66 Development Fees 9,159 20.21 (4,991) (35.27) Contributions from Developers 5,622 12.40 4,585 442.14 Charges for Services 8,226 18.15 752 10.06 Fines and Forfeitures 257 .57 112 77.24 Other 2,133 4.71 29 1.34 Total Revenues $45,321 100.00 1 196 2.71 The principal changes in the revenue categories were the increases in the Taxes, Contributions from Developers, and Charges for Services categories, as well as the decreases in the Use of Money and Property and Development Fees categories. The primary reason for these changes is the residential and commercial development occurring within the City of Chino Hills. The increase in Taxes is due to the increase in property tax from the new development and the sales tax generated from the new retail establishments that have opened for business in the City. The decrease in Use of Money and Property was primarily caused by the use of reserves (upon which investment earnings had previously been received) for constructing facilities in accordance with the City's capital improvement program. The increase in the contributions from Developers' revenue reflects the change in mix in the source of funds the City received to finance the construction of infrastructure needed for new development. The increase in the Charges for Services was due to the added activity caused by new development.. 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, 1999, and the amount and percentages of increases and decreases in relation to prior year expenditures. Dollar amounts are expressed in thousands. Increase Percent Percent (Decrease) of Increase Expenditures Amount of Total from 1998 (Decrease) Current: General Government $ 4,026 7.75 616 18.06 Public Safety 3,622 6.98 220 6.47 Public Works 12,298 23.68 (43) (.35) Community Development 3,784 7.29 (162) (4.11) Cultural and Leisure 1,404 2.70 339 31.83 Other Expenditures 5,224 10.06 (725) (12.19) City of Chino Hills Transmittal Letter Expenditures Capital Outlay Debt Service: Principal Retirement Interest and Fiscal Charges Total Expenditures The principal cause of the increase in Total Expenditures is due to the increase in the Capital Outlay expenditure category. This increase reflects the construction of new infrastructure and other facilities needed to provide services for the growing population of the City. The growth in population is also the cause of the increase in the General Government and Cultural and Leisure expenditure categories, as services have expanded to meet the needs of this expanded population. Fund Balance Changes Within The General Fund. The General Fund balance increased by $3,065,007 from $11,681,345 (as restated) in 1997-98 to $14,746,352 in 1998-99. 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 cost reimbursements. The increase in these revenues is a direct result of the increase in residential and commercial 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 increased by $962,529 (from $9,212,022 to $10,174,551), in the 1998-99 fiscal year primarily as a result of an increase in consumption caused by the City's population increase. The net loss generated from the fiscal year water utility activities was $356,197. This result is in contrast to last fiscal year's net loss of $684,706. The principal reason for the decrease in the net loss was due to the one-time $1.6 million in revenue received from the sale of excess accumulated water stored in regional underground aquifers. The sewer utility operating revenue increased slightly by $83,881 from $3,610,202 received in the 1997-98 fiscal year to $3,694,083 in the current fiscal year. The net income from the sewer utility operations for the 1998-99 fiscal year is $1,085,570 in contrast with the $1,013,155 net income earned in the 1997-98 fiscal year. The increase in revenues and net income is primarily attributed to the increase in the number of customers in the fiscal year. XI Increase Percent Percent (Decrease) of Increase Amount of Total from 1998 (Decrease) 13,108 25.24 8,189 166.48 4,341 8.36 340 8.50 4,124 7.94 448 9.80 $51,931 100.00 $8,326 19.09 The principal cause of the increase in Total Expenditures is due to the increase in the Capital Outlay expenditure category. This increase reflects the construction of new infrastructure and other facilities needed to provide services for the growing population of the City. The growth in population is also the cause of the increase in the General Government and Cultural and Leisure expenditure categories, as services have expanded to meet the needs of this expanded population. Fund Balance Changes Within The General Fund. The General Fund balance increased by $3,065,007 from $11,681,345 (as restated) in 1997-98 to $14,746,352 in 1998-99. 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 cost reimbursements. The increase in these revenues is a direct result of the increase in residential and commercial 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 increased by $962,529 (from $9,212,022 to $10,174,551), in the 1998-99 fiscal year primarily as a result of an increase in consumption caused by the City's population increase. The net loss generated from the fiscal year water utility activities was $356,197. This result is in contrast to last fiscal year's net loss of $684,706. The principal reason for the decrease in the net loss was due to the one-time $1.6 million in revenue received from the sale of excess accumulated water stored in regional underground aquifers. The sewer utility operating revenue increased slightly by $83,881 from $3,610,202 received in the 1997-98 fiscal year to $3,694,083 in the current fiscal year. The net income from the sewer utility operations for the 1998-99 fiscal year is $1,085,570 in contrast with the $1,013,155 net income earned in the 1997-98 fiscal year. The increase in revenues and net income is primarily attributed to the increase in the number of customers in the fiscal year. XI City of Chino Hills Transmittal Letter 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 $54,075,000 as of June 30, 1999. This is a reduction of $9,360,000 from the total debt obligation of $63,435,000 outstanding as of June 30, 1998. 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 decreased by $720,138 from $54,819,526 (as restated) reported in last fiscal year to $54,099,388 reported in this fiscal year. One of the principal reasons for the decrease was the net reduction of $361,852 in the Development Fee Program obligations, which constitutes about 95 percent of the General Long Term Debt. The total amount of debt outstanding in this program decreased from $51,772,442 (as restated) in 1997-98 to $51,410,590 in 1998-99. 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, 1999 is $410,000 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 fund. The total long-term debt reported in these funds as of June 30, 1999 amounts to $24,308,770 and $73,851 respectively. The principal debt outstanding in these funds is the $20,090,000 of Certificates of Participation indebtedness included in the Water Utility Fund. This bonded indebtedness was issued in 1996 for the purpose of refunding prior C.O.P debt issues. Cash Management. Cash temporarily idle during the year was invested in demand deposits and pooled investment accounts operated by the State of California's Local Agency Investment Fund, the San Bernardino County Investment Pool, and the Los Angeles County Investment Pool. The average yield on maturing investments during the fiscal year was about five percent, and the amount of interest received by all of the governmental fund types amounted to $2,761,869. This was $506,718 less than was received in the past fiscal year. Risk Management. The City is a member of the California Joint Powers Insurance Authority (CJPIA), through which the City receives coverage for liability and workers compensation claims, as well as property damage and certain other coverage. The CJPIA is a consortium of local government agencies that was formed for the purpose of providing insurance coverage for its member agencies. OF 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. Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Chino Hills for its comprehensive annual financial report for the fiscal year ended June 30, 1998. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. 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. %sspectfull,y Submitted, ougIaN. LaBelle ttan McCartney City,,Ma ager Finance Director CACAFR99\TRAiiSLTR99 DOC XIII THE CITY OF CHINO HILLS ORGANIZATION OF CITY GOVERNMENT OPERATING SUMMARY xiv CITY OF CHINO HILLS LIST OF ELECTED AND APPOINTED OFFICIALS ELECTED OFFICIALS - CITY COUNCIL Michael G. Wickman Mayor Ed M. Graham Mayor Pro Tem Gary G. Larson Council Member Gwenn Norton -Perry Council Member James S. Thalman Council Member APPOINTED OFFICIALS Douglas N. La Belle City Manager Linda D. Ruth Deputy City Manager/City Clerk Mark D. Hensley City Attorney Bruce A. Coleman Community Development Director Michael Fleager Community Services Director Kathleen Gotch Deputy City Manager/Personnel Pat Hagler Public Facilities and Operations Director Stan McCartney Finance Director/City Treasurer xv THIS PAGE INTENTIONALLY LEFT BLANK XVI Certificate of Achievement for Excellence in Financial Reporting Presented to City of Chino Hills, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1998 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. Pr3;z-, 6-� esident Y�� Gfilee Executive Director "V THIS PAGE INTENTIONALLY LEFT BLANK FINANCIAL SECTION THIS PAGE INTENTIONALLY LEFT BLANK LLSLLil ce 203 North Brea Boulevard Brandon W. Burrows Suite 203 Donald L. Parker l S` Brea, CA 92821-4056 Michael K. Chu ghard(714) 672-0022 David E. Hale A Pro Ns —.l Corporation CERTIFIED PUBLIC ACCOUNTANTS Fax (714) 672-0331 Donald G. slater Retired City Council Robert C. Lance 1914-,994 City of Chino Hills Richard C. Sol[ Chino Hills, CA 91709 Fred J. Lunghard, Jr. 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, 1999, 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, 1999, 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. The required supplementary information is not a required part of the basic financial statements but is required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. In addition, we do not provide assurance that the City of Chino Hills is or will become year 2000 compliant, that the City of Chino Hills' year 2000 remediation efforts will be successful in whole or in part or that parties with which the City of Chino Hills conducts business will be year 2000 compliant. 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 17, 1999 z MEMBER CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS CITY OF CHINO HILLS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1999 ASSETS AND OTHER DEBITS Cash and investments (Note 3) Restricted assets: Cash and investments with fiscal agents (Note 3) Receivables Prepaid costs Deposits Deposit with Water Facilities Authority Due from other funds (Note 4) Due from other agencies Inventories (Note 1) Lease payments receivable (Note 13) Due from other governments Deferred charges (Note 1) Advance to other funds (Note 4) Investment in Water Facilities Authority (Note 12) Property, plant and equipment, net (Note 5) 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 4) Due to other governments Due to Chino Basin Municipal Water District Due to developers Advances from other funds (Notes 4 and 9) 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 Exhibit A Page 1 of 2 Special Debt Capital General Revenue Service Projects $ 11,877,032 $ 28,521,289 $ $ 1,972,554 - - 258,395 231 657,214 2,598,631 - 9,588 1,632,281 236,538 122,508 449,316 299,121 66,650 1,607,000 26,911 $ 16,195,156 $ 31, 213,481 $ 258,395 $ 2,668,227 $ 902,724 $ 1,142, 889 $ $ 1,152, 241 373,678 35,350 - 4,315 - - 550,282 9,649 309,969 - 92,365 - 49,073 1,070,000 - - 10,075 17,000 ,"'V,VVT L,VVV,LVV 133,327 14,613,025 14, / 40, JDZ $ 16,195,156 FA 1,767,513 258,395 1,517,843 13, 553, 355 - - 13, 324,330 - (552,139) 28, 645,198 258,395 965,704 $ 31,213,481 $ 258,395 $ 2,668,227 Exhibit A Page 2 of 2 3 FIDUCIARY TOTALS PROPRIETARY FUND TYPES FUND TYPE ACCOUNT GROUPS (MEMORANDUM ONLY) General General Internal Fixed Long -Term Enterprise Service Agency Assets Debt 1 9 9 9 1 9 9 8 $ 16,619,723 $ 1,973,074 $ 27,938,638 $ $ $ 88,902,310 $ 105,990,615 2,430 - 7,085,933 7,346,989 6,169,898 2,045,904 54,803 1,295,422 - 6,661,562 6,294,511 35,000 35,000 110,000 2,142, 212 4,011,031 1,000,587 1,593,637 2,165, 461 330,165 161,529 161,529 163,923 1,387,560 1,387,560 1,664,700 - 365,771 257,471 509,890 - - 509,890 537,851 3,582,746 1,500,000 6,716,657 901,584 4,528,692 - 4,528,692 4,689,642 102,502,191 620,110 18,222,511 121,344,812 99,236,742 - - - 258,395 258,395 256,154 - - - 53,840,993 53,840,993 30,363,489 $ 135,111,514 $ 4,147,987 $ 36,319,993 $ 18,222,511 $ 54,099,388 $ 298,236,652 $ 257,967,332 $ 1,336,315 $ 38,311 $ 879,406 $ $ $ 5,451,886 $ 7,091,686 30,225 1,449 - - 440,702 292,347 955,277 - 4,064,104 5,019,381 4,794,252 - - - 554,597 171,602 2,043,697 1,647,716 4,011,031 1,000,587 - - - - 5,056 - 6,988,151 6,988,151 7,125,472 8,160 - 100,525 100,525 4,159,000 1,438,584 6,716,657 901,584 - - 10,075 23,580 91,538 2,409 - 110,947 111,663 55,100 - 21,302,032 21,357,132 24,963,770 92,426 - 92,426 47,936 20,848,983 - - 54,099,388 74,948,371 53,764,899 29,620,721 42,169 36,319,993 54,099,388 125,801,881 100,394,959 - - - 18,222,511 - 18,222,511 15,299,181 88,025,854 2,620,727 - 90,646,581 82,001,924 17,464,939 1,485,091 18,950,030 14,528,181 - - 3,677,078 5,336,720 - - 28,166, 380 26, 345, 732 - - - 12, 772,191 15, 863, 803 105,490,793 4,105,818 - 18,222,511 - 172,434,771 159,375,541 $ 135,111,514 $ 4,147,987 $ 36,319,993 $ 18,222,511 $ 54,099,388 $ 298,236,652 $ 259,770,500 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, 1999 See Notes to Financial Statements 4 Exhibit B Page 1 of 2 GOVERNMENTAL FUND TYPES Special General Revenue Revenues: Taxes $ 7,292,713 $ Special assessments - 5,216,630 Licenses and permits 2,795,653 - Use of money and property 1,189,989 1,516,132 Intergovernmental - 1,856,902 Development fees _ 9,158,696 Contributions from developers _ - Charges for services 4,195,152 4,031,100 Fines and forfeitures 257,227 _ Other 968,470 1,157,040 Total Revenues 16,699,204 22,936,500 Expenditures: Current: General government 4,007,419 14,031 Public safety 3,472,065 150,420 Public works 1,430,553 10,867,492 Community development 3,784,203 - Cultural and leisure 749,388 654,259 Contributions to assessment districts - 5,105,381 Capital outlay - 339,445 Debt service: Principal retirement 50,453 3,670,913 Interest and fiscal charges 7,118 4,082,594 Total Expenditures 13,501,199 24,884,535 Excess of Revenues over (under) Expenditures 3,198,005 (1,948,035) Other Financing Sources (Uses): Proceeds of long-term debt - 3,588,123 Operating transfers in 35,106 1,327,365 Operating transfers out (168,104) (9,084,245) Total Other Financing Sources (Uses) (132,998) (4,168,757) Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses $ 3,065,007 $ (6,116,792) Fund Balances: Beginning of Fiscal Year, as originally reported $ 11,681,345 $ 34,783,078 Restatements (Note 17) - - Beginning of Fiscal Year, as restated 11,681,345 34,783,078 Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses 3,065,007 (6,116,792) Residual equity transfers (Note 16) - (21,088) End of Fiscal Year (Exhibit A) $ 14,746,352 $ 28,645,198 See Notes to Financial Statements 4 Exhibit B Page 1 of 2 GOVERNMENTAL FUND TYPES Debt Capital Service Projects - 12,768,111 11,942 43,806 418,747 5,203,096 - 7,556 430,689 5,254,458 4,148 1998 - 118,665 - 12,768,111 390,000 229,896 34,300 3,268,587 428,448 13,116,672 2,241 (7,862,214) - 8,002,240 - 8,002,240 $ 2,241 $ 140,026 $ 256,154 $ 825,678 256,154 825,678 2,241 140,026 $ 258,395 $ 965,704 5 TOTALS MEMORANDUM ONL 1999 1998 $ 7,292,713 $ 5,981,999 5,216,630 5,215,613 2,795,653 2,980,922 2,761,869 3,268,587 1,856,902 1,709,549 9,158,696 14,149,910 5,621,843 1,037,302 8,226,252 7,474,413 257,227 144,573 2,133, 066 2,162, 536 45, 320, 851 44,125, 404 4,025,598 3,409,927 3,622,485 3,401,556 12,298,045 12,340,759 3,784,203 3,945,622 1,403,647 1,065,498 5,224,046 5,949,274 13,107,556 4,919,080 4,341,262 4,001,477 4,124,012 4,572,188 51,930,854 43,605,381 (6,610,003) 520,023 3,588,123 4,559,033 9,364,711 5,409,997 (9,252,349) (5,406,279) 3,700,485 4,562,751 $ (2,909,518) $ 5,082,774 $ 47,546,255 $ 42,741,334 - (277, 853) 47, 546, 255 42, 463, 481 (2,909,518) 5,082,774 (21, 088) $ 44,615,649 $ 47,546,255 Exhibit B Page 2 of 2 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, 1999 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 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 6 GENERALFUND Exhibit C Page 1 of 4 variance - Favorable Budget Actual (Unfavorable) $ 6,430,500 $ 7,292,713 $ 862,213 3,016,100 2,795,653 (220,447) 1,151, 200 1,189, 989 38,789 4,285,900 4,195,152 (90,748) 187,500 257,227 69,727 301,900 968,470 666,570 15,373,100 16,699,204 1,326,104 5,179, 900 4,062,164 1,117, 736 3,607,700 3,472,065 135,635 4,151,300 1,506,777 2,644,523 4,637,500 3,784,203 853,297 1,068,700 751,746 316,954 50,500 50,453 47 24,600 7,118 17,482 18,720,200 13,634,526 5,085,674 (3,347,100) 3,064,678 6,411,778 43,200 35,106 (8,094) (4,068,100) (168,104) 3,899,996 (4,024,900) (132,998) 3,891,902 (7,372,000) 2,931,680 10,303,680 133,327 133,327 $ (7,372,000) $ 3,065,007 $ 10,437,007 $ 11,681,345 $ 11,681,345 $ - (7,372,000) 3,065,007 10,437,007 $ 10,437,007 $ 4,309,345 $ 14,746,352 Exhibit C Page 2 of 4 SPECIAL REVENUE FUNDS (6,138,834) DEBT SERVICE FUNDS (100) 2,241 2,341 Variance- 22,042 22,042 Variance - - - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 34,783,078 $ 34,783,078 $ - 5,246,500 5,216,630 (29,870) - (6,116,792) 13,119,508 1,454,200 1,516,132 61,932 133,300 11,942 (121,358) 2,041,400 1,856,902 (184,498) - - $ 13,098,420 14,715,200 9,158,696 (5,556,504) - - - - 428,400 418,747 (9,653) 4,166,900 4,031,100 (135,800) - - 2,794,400 1,157,040 (1,637,360) 1,610,000 - (1,610,000) 30,418,600 22,936,500 (7,482,100) 2,171,700 430,689 (1,741,011) 38,500 14,031 24,469 7,000 4,148 2,852 150,500 150,420 80 - - - 12, 676,100 10, 885,135 1,790,965 - 779,900 654,259 125,641 5,105,500 5,105,381 119 - - 357,600 343,844 13,756 - - - 4,085,900 3,670,913 414,987 980,000 390,000 590,000 5,360,000 4,082,594 1,277,406 1,184, 800 34,300 1,150, 500 28, 554, 000 24, 906, 577 3,647,423 2,171, 800 428,448 1,743,352 1,864,600 (1,970,077) (3,834,677) (100) 2,241 2,341 - 3,588,123 3,588,123 - - - 1,769,200 1,327,365 (441, 835) (22,870,100) (9,084,245) 13,785,855 - (21,100, 900) (4,168, 757) 16, 932,143 - (19,236,300) (6,138,834) 13,097,466 (100) 2,241 2,341 22,042 22,042 - - - $ (19,236,300) $ (6,116,792) $ 13,119,508 $ (100) $ 2,241 $ 2,341 $ 34,783,078 $ 34,783,078 $ - $ 256,154 $ 256,154 $ - (19,236,300) (6,116,792) 13,119,508 (100) 2,241 2,341 - (21,088) (21,088) - - - $ 15,546,778 $ 28,645,198 $ 13,098,420 $ 256,054 $ 258,395 $ 2,341 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, 1999 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 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 8 Exhibit C Page 3 of 4 CAPITAL PROJECTS FUNDS ariance- Favorable Budget Actual (Unfavorable) 3,000 43,806 40,806 5,959,100 5,203,096 (756,004) - 7,556 7,556 5,962,100 5,254,458 (707,642) 167,500 135,450 32,050 51,083,500 14,269,169 36,814,331 229,900 229,896 4 Z)1,4riV,yUU 14,W4,blb 36,846,385 (45,518,800) (9,380,057) 36,138,743 1,500,000 - (1,500,000) 42,474,400 8,002,240 (34,472,160) 43,974,400 8,002,240 (35,972,160) (1,544,400) (1,377,817) 166,583 1,517,843 1,517,843 $ (1,544,400) $ 140,026 $ 1,684,426 $ 825,678 $ 825,678 $ - (1,544,400) 140,026 1,684,426 $ (718, 722) $ 965,704 $ 1,684,426 Exhibit C Page 4 of 4 TOTALS (MEMORANDUM ONL 53, 925, 500 45, 320, 851 variance - 5,225,400 4,080,343 Favorable Budget Actual (Unfavorable) $ 6,430,500 $ 7,292,713 $ 862,213 5,246,500 5,216,630 (29,870) 3,016,100 2,795,653 (220,447) 2,741,700 2,761,869 20,169 2,041,400 1,856,902 (184,498) 14,715,200 9,158,696 (5,556,504) 6,387,500 5,621,843 (765,657) 8,452,800 8,226,252 (226, 548) 187,500 257,227 69,727 4,706,300 2,133, 066 (2,573,234) 53, 925, 500 45, 320, 851 (8,604,649) 5,225,400 4,080,343 1,145, 057 3,758,200 3,622,485 135,715 16,827,400 12,391,912 4,435,488 4,637,500 3,784,203 853,297 1,848,600 1,406,005 442,595 5,273,000 5,240,831 32,169 51,441,100 14,613,013 36,828,087 5,346,300 4,341,262 1,005,038 6,569,400 4,124,012 2,445,388 100,926,900 53,604,066 47,322,834 (47,001,400) (8,283,215) 38,718,185 1,500,000 3,588,123 2,088,123 44, 286, 800 9,364,711 (34, 922, 089) (26,938,200) (9,252,349) 17,685,851 18, 848,600 3,700,485 (15,148,115) (28,152, 800) (4,582,730) 23, 570, 070 1,673,212 1,673,212 $ (28,152,800) $ (2,909,518) $ 25,243,282 $ 47,546,255 $ 47,546,255 $ - (28,152,800) (2,909,518) 25,243,282 - (21, 088) (21, 088) $ 19,393,455 $ 44,615,649 $ 25,222,194 9 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, 1999 Nonoperating Revenues (Expenses): Interest earnings 1,119,841 165,157 TOTALS 1,377,332 Proceeds of long-term debt INTERNAL (MEMORANDUM ONLY) Operating Revenues: ENTERPRISE SERVICE 1 9 9 9 1 9 9 8 Charges for services $ 13,961,732 $ 635,586 $ 14,597,318 $ 13,500,111 Permit and inspection fees 78,822 - 78,822 79,819 Meter and installation fees 190,492 - 190,492 328,383 Other 5,914 352 6,266 17,973 Total Operating Revenues 14,236,960 635,938 14,872,898 13,926,286 Operating Expenses: Facilities Authority (160,951) Purchased water 4,867,731 Gain (loss) on disposal of assets 4,867,731 4,364,873 Salaries and benefits 1,006,749 51,814 1,058,563 1,035,619 Utilities Contractual services 534,382 2,289,297 102,295 534,382 2,391,592 544,086 2,584,918 Depreciation 2,419,484 177,876 2,597,360 2,514,763 Amortization 386,126 - 386,126 - Repairs and maintenance 368,092 85,654 453,746 709,589 Services and supplies 129,951 143,170 273,121 217,759 Other general and administrative 2,561,658 7,931 2,569,589 2,482,574 Total Operating Expenses 14,563,470 568,740 15,132,210 14,454,181 Operating Income (Loss) (326,510) 67,198 (259,312) (527,895) Nonoperating Revenues (Expenses): Interest earnings 1,119,841 165,157 1,284,998 1,377,332 Proceeds of long-term debt - 892,734 Rents and leases 115,612 115,612 154,889 Sale of property 10,118 Other revenues 1,673,207 1,673,207 162,342 Miscellaneous - (1,500) (1,500) Interest expense (1,475,359) (1,475,359 (1,196, 823) Loss on investment in Water Facilities Authority (160,951) (160,951) (150,815) Gain (loss) on disposal of assets (175,845) - (175,845) (1,656 Total Nonoperating Revenues (Expenses) 1,096,505 163,657 1,260,162 1,248,121 Net Income (Loss) before Operating Transfers 769,995 230,855 1,000,850 720,226 Operating transfers out (40,622) (71,740) (112,362) (3,718) Net Income (Loss) 729,373 159,115 888,488 716,508 Add back depreciation related to contributed capital 1,470,252 140,756 1,611,008 1,551,128 Increase (Decrease) in Retained Earnings 2,199,625 299,871 2,499,496 2,267,636 Retained Earnings: Beginning of Fiscal Year, as originially reported 13,342,961 1,185,220 14,528,181 12,290,222 Restatement (Note 17) 1,960,353 - 1,960,353 - Beginning of Fiscal Year, as restated 15,303,314 1,185,220 16,488,534 12,290,222 Residual equity transfer (Note 16) (38,000) (38,000) (29,677) End of Fiscal Year $ 17,464,939 $ 1,485,091 $ 18,950,030 $ 14,528,181 See Notes to Financial Statements 10 CITY OF CHINO HILLS COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 1999 Cash Flows from Operating Activities: Operating Loss Adjustment to reconcile Operating Income to Net Cash: Depreciation and amortization Adjustment to prior expenses Other revenue Changes in Assets and Liabilities: (Increase decrease in accounts receivable (Increase decrease in prepaid items Increase decrease in deposits Increase decrease in due from other funds Increase decrease in due from other agencies Increase decrease in inventories Increase decrease in deposit from Water Facilities Authori 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 developer program obligations 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 transfer out Operating transfers out Decrease(increase)in advances to other funds Decrease (increase) in advances from other funds Net Cash Provided (Used) by Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: Repayment of 1996 Certificates of Participation Repayment of advances for construction Contributed capital received Contributed capital repaid Rents and leases Interest paid Purchases of property, plant and equipment Purchase of intangible assets Gain (loss) on disposal of fixed assets Proceeds from sale of fixed assets Lease payments received Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Exhibit E Page 1 of 2 (12,232,571) (233) (12,232,804) 3,222,094 Interest on investments 1,119,841 TOTALS 1,393,738 INTERNAL (MEMORANDUM ONLY) ENTERPRISE SERVICE 1 9 9 9 1 9 9 8 $ (326,510) $ 67,198 $ (259,312) $ (527,895) (1,200,793) (8,496,148) 2,805,610 177,876 2,983,486 2,514,763 (344,584) - (344,584) - 1,673,207 (1,500) 1,671,707 59,242 (23,306) 35,936 (44,805) 79,872 18,542 98,414 (51,630) 75,000 - 75,000 102,936 (2,097,131) (1,500,000) (3,597,131) 13,094 (1,263,472) (1,263,472) (255,676) 2,394 2,394 - 160,950 160,950 14,525 42,827 (32,987) 9,840 (411,937) (30,676) (534) (31,210) 3,899 45,163 - 45,163 99,555 1,659,234 1,659,234 353,396 (5,056) (5,056) (551) - - 8,160 (1,450) 734 (716) 11,393 44,490 - 44,490 (51,114) 2,905,620 (1,361,175) 1,544,445 2,306,008 2,579,110 (1,293,977) 1,285,133 1,778,113 (38,000 38,000 (40,622 (71,740) (112,362) (3(78) (2,00 1, 1 oz - (2,681,162) 4,159,000 4,159,000 1,399,216 (71,740) 1,327,476 (590,000 (590,000) ((51,96) - (48,167 (48,16 4,113,256 178,800 4,292,056 3,683,534 (33,446) - (33,446) - 115,612 115,612 322,09 (322, 097) (1,094,898 (179,033) (1,273,931) (125,926) (14,657,850 (14,657,850) - - (1,656) 7,879 7,879 10,118 277,140 277,140 252,960 (12,232,571) (233) (12,232,804) 3,222,094 Interest on investments 1,119,841 165,157 1,284,998 1,393,738 Loss on investment in Water Facilities Authority (160,951) - (160,951) (150,815) Net Cash Provided (Used) by Investing Activities 958,890 165,157 1,124,047 1,242,923 Net Increase (Decrease) in Cash and Investments (7,295,355) (1,200,793) (8,496,148) 6,238,635 Cash and Investments at Beginning of Year Cash and Investments at End of Year See Notes to Financial Statements 23, 917, 508 3,173, 867 27, 091, 375 20, 852, 740 $ 16,622,153 $ 1,973,074 $ 18,595,227 $ 27,091,375 11 Reconciliation to the Balance Sheet: Cash and investments Cash and investments with fiscal agents Schedule of Non -Cash Transactions CITY OF CHINO HILLS COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 1999 INTERNAL ENTERPRISE SERVICE $ 16,619,723 $ 1,973,074 2,430 - $ 16,622,153 $ 1,973,074 Exhibit E Page 2 of 2 TOTALS (MEMORANDUM ONLY) 1999 1998 $ 18, 592, 797 $ 27, 088, 708 2,430 2,667 $ 18,595,227 $ 27,091,375 Enterprise Funds: 1) The Water and Sewer Funds have a prior period adjustment for their debt in the amount of $1,101,578 and $979,036 respectively, as a special revenue fund is currently liable under the new developer fee ordinance. 2) During 1998-99, the City purchased property from Chino Valley Independent Fire District by making a downpayment of $450,000 and issuing a promissory note for $900,000. The Water Fund will pay $388,080 and the Sewer Fund will pay $70,830 of this note. 3) The Water and Sewer Funds received capital contributions from developers in the form of capital improvements totaling $4,249,837 and $1,888,757 respectively. A corresponding addition to contributed capital has been recorded. Internal Service Funds: 1) The Equipment Maintenance Fund and the Data Processing Fund received contributed assets from other funds in the net amounts of $50,721 and $47,942 respectively. See Notes to Financial Statements 12 CITY OF CHINO HILLS NOTES TO FINANCIAL STATEMENTS JUNE 30, 1999 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. 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. 13 City of Chino Hills Notes to Financial Statements (Continued) Note 1: Significant Accounting Policies (Continued) 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 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. 14 City of Chino Hills Notes to Financial Statements (Continued) Note 1: Significant Accounting Policies (Continued) 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 programs and funds up to $10,000 without approval by the City Council. In addition, the City Manager has unlimited authority to transfer appropriations between items and accounts within the same department funded by the General Fund and within the same function funded by a special revenue, debt service or capital projects fund. 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 for the General Fund and the function level for Special Revenue, Debt Service and Capital Projects Funds. Encumbrances Encumbrance accounting is employed as an extension of formal budgetary integration in governmental funds. Encumbrances, such as purchase orders, contracts, and other commitments for the expenditure of monies, are reported as reservations of fund balances. Outstanding encumbrances at year-end are reappropriated in the following year. 15 City of Chino Hills Notes to Financial Statements (Continued) Note 1: Significant Accounting Policies (Continued) Investments Investments are stated at fair value (see Note 3). Materials and Supplies Inventories Materials and supplies consist of water pipe, meters, valves, tools and miscellaneous items used in installing, monitoring and repairing these items. The water pipe, meters, valves and long-term items are removed from inventory and capitalized as fixed assets and depreciated upon installation. The remaining items are recorded as expenses when used in accordance with the consumption method. Inventories are recorded at the lower of cost or market on a FIFO (first -in, first -out) basis. General Fixed Assets General fixed assets are recorded as expenditures in the various governmental funds at the time of purchase. Such assets include land, buildings, building improvements, furniture, fixtures, vehicles and equipment, and are capitalized at historical cost in the General 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 1998-99. Intangible Assets of Proprietary Funds Intangible assets purchased for the proprietary funds are capitalized at cost, while contributed assets are recorded at fair market value at the time received. Amortization has been provided on a straight- line basis over their estimated useful lives as follows: Water Rights Compensated Absences 40 years 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 16 City of Chino Hills Notes to Financial Statements (Continued) Note 1: Significant Accounting Policies (Continued) 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, 1998 $ 537,851 1998-99 amortization expense (27,961 Balance at June 30, 1999 $ 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. 17 City of Chino Hills Notes to Financial Statements (Continued) Note 2: Note 3: Stewardship, Compliance and Accountability The following fund has a deficit fund balance at June 30, 1999: Deficit Special Revenue Funds: Recreation $ 55,527 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. Cash and investments at June 30, 1999 consist of the following: Petty Cash $ 3,350 Pooled Deposits and Investments: Demand Deposits $ 1,881,063 Pooled Investments 87,017,897 88,898,960 Cash and Investments with Fiscal Agents: Other 7.346.989 Total Cash and Investments $ 96,249,299 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. 18 City of Chino Hills Notes to Financial Statements (Continued) Note 3: Cash and Investments (Continued) Authorized Investments Under provision of the City's investment policy, and in accordance with Section 53601 of the California Government Code, the City may invest in the following types of investments: • Bonds issued by the City • Repurchase Agreements • Registered state warrants or treasury notes or bonds of this State • Bonds, notes, or warrants of any local agency within this State • United States treasury notes, bonds, bills, or certificates of indebtedness • Obligations of a federal agency or United States government sponsored agency • Negotiable certificates of deposit • Mutual Funds • State and County Investment Pools Pooled Deposits/Credit Risk The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total deposits. 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: Petty Cash Pooled Deposits: Demand deposit accounts, bank balance Deposits with Fiscal Agents: Bank investment contracts Total Deposits Category Bank Fair 1 2 3 Balance Value — $ 3,350 $ - $ - $ 3,350 $ 3,350 100,000 375,787 - 475,787 1,881,063 19 - 2,451,506 2,451,506 2,451,506 City of Chino Hills Notes to Financial Statements (Continued) Note 3: Cash and Investments (Continued) 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. 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 and 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 $ 19,188,829 Los Angeles County Investment Pool 35,960,864 San Bernardino County Investment Pool 31,868,204 Total Pooled Investments $ 87,017,897 Investments with Fiscal Agents Mutual Funds $ 3,154,483 Guaranteed Investment Contract 1,741,000 Total Investments with Fiscal Agents $ 4,895,483 Total Investments $ 91 913 380 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. 20 City of Chino Hills Notes to Financial Statements (Continued) Note 4: Interfund Receivables/Payables a. Due To/From b. Advance To/From Advance To Advance From General Fund Due From Due To General Fund $ 1,632,281 $ 9,649 Special Revenue Funds: 4,427 - Lighting and Landscape District - 135,715 Federal Grants - 35,288 Solid Waste - 97,379 Recreation - 12,003 Miscellaneous Grants - 29,584 Capital Projects Funds: Capital Improvement 88,822 - Regional 147,716 - Enterprise Funds: - 1,438,584 Water Utility 139,115 2,043,622 Sewer 2,003,097 75 Agency Funds: CFD #5 - 1,647,716 Totals $4 Q� 11� 1 $ 4 Qin b. Advance To/From Advance To Advance From General Fund $ 1,607,000 $ 49,073 Special Revenue Funds: Existing Infrastructure 4,427 - City Facilities - 1,070,000 Storm Drain Facilities 22,484 - Enterprise Funds: Water Utility 917,124 4,159,000 Sewer Utility 2,665,622 - Internal Service Fund: Equipment Maintenance 1,500,000 - Agency Fund: CFD #5 - 1,438,584 Totals $ $ 21 City of Chino Hills Notes to Financial Statements (Continued) Note 5: Property, Plant and Equipment Changes in the components of the General Fixed Assets Account Group for the year ended June 30, 1999 were as follows: A summary of changes in the Enterprise Fund intangible asset for the year ended June 30, 1999 were as follows: Balance at Balance at July 1, 1998 Additions Deletions June 30, 1999 Water Rights $ - $ i4.668,]5O $ _ $ 14,668,150 Accumulated Amortization _ $ $ - (366,704) Net $ _ $ 14,301,446 Total Fixed Assets and Intangible Assets $ 102 502 191 22 Balance at Balance at July 1, 1998 Additions Deletions June 30, 1999 Land $ 12,370,989 $ 93,480 $ - $ 12,464,469 Buildings 2,242,782 2,798,412 - 5,041,194 Equipment 685,410 31,438 - 716,848 Total $ $ $ - $ A summary of changes in the Enterprise Fund property, plant and equipment for the year ended June 30, 1999 were as follows: Balance at July 1, 1998 Balance at as Originally July 1, 1998 Balance at Reported Adjustments as Restated Additions Deletions June 30, 1999 Land $ 3,074,759 $ $ 3,074,759 $ $ 5,876 $ 3,068,883 Easements 537,940 537,940 - 537,940 Utility Plant in Service 19,956,903 19,956,903 - 19,956,903 Pipeline in Service 74,093,234 74,093,234 6,332,023 206,800 80,218,457 Meters 1,041,475 1,041,475 52,597 - 1,094,072 Buildings and Improvements 130,236 130,236 611,622 741,858 Equipment 432,461 432,461 16,167 - 448,628 Construction -in -Progress 2,051,900 279542 1,772,358 16,796,884 16,127,191 2,442,051 Total $ 101,318,908 $ (279,542) $ 101,039,366 $ $ 16 33Q,867 $ 108,508,792 Accumulated depreciation (17,917,515) (17,917,515) $ 241344 $ 28,952 (20,308,047) Net $ 83,401,393 $ 83121.851 $ 88 ?00,745 The adjustment relates to an item recorded in the Water Utility Fund as construction -in -progress in a prior year which has been determined not to belong to the Water Utility Fund. A summary of changes in the Enterprise Fund intangible asset for the year ended June 30, 1999 were as follows: Balance at Balance at July 1, 1998 Additions Deletions June 30, 1999 Water Rights $ - $ i4.668,]5O $ _ $ 14,668,150 Accumulated Amortization _ $ $ - (366,704) Net $ _ $ 14,301,446 Total Fixed Assets and Intangible Assets $ 102 502 191 22 City of Chino Hills Notes to Financial Statements (Continued) Note 5: Property, Plant and Equipment (Continued) A summary of changes in the Internal Service Fund property, plant and equipment for the year ended June 30, 1999 were as follows: 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 7: 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. 23 Balance at Balance at July 1, 1998 Additions Deletions June 30, 1999 Vehicles $ 1,742,285 $ 59,905 $ - $ 1,802,190 Equipment 848,743 217,790 136,227 930,306 Total $ 2,591,028 $ $ $ 2,732,496 Accumulated depreciation (2,054,860 $Z $ 2 112 386 Net $ $ Note 6: 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 7: 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. 23 City of Chino Hills Notes to Financial Statements (Continued) Note 7: Pension Plan (Continued) 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 actuarial assumptions that, together with employee contributions, is intended to provide sufficient reserves for payment of all prospective benefits to members. Employer rates are as follows: Category General Members Annual Pension Cost Member Rates as a Percentage of Covered Payroll 9.30% For 1999, the City's annual pension cost of $642,135 for SBCERA was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 1999 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 4.50% 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 Fiscal Year Cost (APC) Percentage of APC Contributed Net Pension Obligation 6/30/97 $ 664 100% $ 6/30/98 $ 613 100% $ - 6/30/99 $ 642 100% $ 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. 24 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 Payroll Payroll 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)% 6/30/99 $ 2,969,329 $ 2,741,249 $ (228,080) 108.3% $ 644,562 (35.4)% 24 City of Chino Hills Notes to Financial Statements (Continued) Note 8: Liability, Property and Workers' Compensation Protection a. Description of Self -Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 84 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group -purchased insurance for property and other coverages. The Authority's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a 9 - member Executive Committee. b. Self -Insurance Programs of the Authority General Liability - Each member government pays a primary deposit to cover estimated losses for fiscal year 1998-99. Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Costs are spread to members as follows: the first $20,000 of each occurrence is charged directly to the member; costs from $20,001 to $500,000 are pooled based on a member's share of costs under $20,000; costs from $500,001 to $5,000,000 are pooled based on payroll. Costs of covered claims above $5,000,000 are currently paid by reinsurance. The protection for each member is $50,000,000 per occurrence and $50,000,000 annual aggregate. Workers' Compensation -The City also participates in the workers' compensation pool administered by the Authority. Pool deposits and retrospective adjustments are valued in a manner similar to the General Liability pool. The City of Chino Hills is charged for the first $50,000 of each claim, Costs are pooled above that level to $50,000. Costs from $50,001 to $100,000 per claim are pooled based on the member's losses under its retention level. Costs between $100,001 and $500,000 per claim are pooled based on payroll. Costs in excess of $500,000 are paid by excess insurance purchased by the Authority. The excess insurance provides coverage to statutory limits. c. Purchased Insurance Property Insurance -The City of Chino Hills participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City of Chino Hills property is currently insured according to a schedule of covered property submitted by the City of Chino Hills to the Authority. Total all-risk property insurance coverage is $9,748,727. There is a $5,000 per loss deductible. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. Earthquake and Flood Insurance - The City of Chino Hills purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. The City of Chino Hills property currently has earthquake protection in the amount of $8,069,148. There is a deductible of 5% of value with a minimum deductible of $100,000. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. Fidelity Bonds - The City of Chino Hills purchases blanket fidelity bond coverage in the amount of $1,000,000 with a $5,000 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retroactive adjustments. 25 City of Chino Hills Notes to Financial Statements (Continued) Note 8: Note 9: Liability, Property and Workers' Compensation Protection (Continued) d. Adequacy of Protection During the past three fiscal years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. The following is a summary of the changes in the claims liability over the past two fiscal years: Claims payable, June 30, 1997 $ 859,662 Payments (122,809 Claims payable, June 30, 1998 $ 736,853 Payments 122, 809 Claims payable, June 30, 1999 $ 614,044 Changes in Long -Term Debt Governmental Funds The following is a summary of changes in the General Long -Term Debt Account Group for the year ended June 30,1999: 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 Equestrian Center Lease CVIFB Note Payable Totals Balance at July 1, 1998 Balance at as Originally July 1, 1998 Balance at Reported Adjustments as Restated Additions Deletions June 30, 1999 $ 226,547 $ $ 226,547 $ 33,001 $ - $ 259,548 967,146 967,146 - 56,700 910,446 901,584 26,670,999 (901,584) 25,101,443 51,772,442 3,147,033 3,508,885 51,410,590 736,853 736,853 122,809 86,618 86,618 32,971 800,000 800,000 390,000 229,896 - 229,896 229,896 - 24 24 1 - - 441.090 - $ 30.619 643 $ 24 199 883 $ $ $ Adjustments are as follows: 614,044 53,647 410,000 23 441,090 $ 54 099 388 The $901,584 relates to the installment obligation which is now recorded in the Community Facilities District #5 Agency Fund as an advance from other funds. The $25,101,443 consists of $1,381,119 and $979,036 which were recorded in the Water and Sewer Funds, respectively, in the prior year, $21,281,293 in assessment district credits which were not recorded in prior years and $1,459,995 estimated interest due to developers not recorded in prior years. The $24 relates to the Equestrian Center Lease agreement which began in fiscal year 1996-97 but was not recorded at that time. 26 City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes in Long -Term Debt (Continued) 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. $ 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. $ 910,46 Development Fee Program Obligations The City has executed many agreements with outside developers requiring developers to provide funding up front for the costs of backbone infrastructure (major thoroughfares, water and sewer mains, etc.) concurrent with the development of their residential and commercial projects. This up front funding is generally in the form of the developer constructing the backbone infrastructure. Future development fees will be used to reimburse the developers (either as credits against fees owed or cash reimbursements if not fully credited) for their costs. A liability has been recorded for the project costs incurred to date, including estimated construction -in -progress and estimated interest payable related to one of the projects. There is no fixed repayment schedule. $ 51,410 590 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. $ 614,944 The debt service payments to maturity are as follows: Year Amount 2000 $ 150,928 2001 144,617 2002 138,304 2003 131,992 2004 125,68 Subtotal $ 691,521 Less: Interest 77,477 Total Principal $ 27 City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes in Long -Term Debt (Continued) Capital Lease Obligations 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 2000 $ 40,090 2001 17,71 Subtotal $ 57,807 Less: Interest 4,160 Total Principal $ Chino Hills Capital Improvement Corporation - Certificates of Participation On September 1, 1992, the Chino Hills Capital Improvement Corporation (Corporation) issued 1992 $2,490,000 Certificates of Participation in order to provide lease financing to the City of Chino Hills for (1) the acquisition and construction of public facilities, (2) a debt service reserve fund, and (3) to pay the costs of issuing the Certificates. Pursuant to the lease agreement between the City and the Corporation, the City is required to pay the Trustee specified lease payments for use of the facilities, which amounts are intended to be sufficient in both time and aggregate amount to pay, when due, the principal and interest with respect to the Certificates. The registered Certificates were issued in denominations of $5,000 each or any integral multiple thereof. Interest is payable semi-annually, at rates ranging from 3.7% to 6%, commencing March 1, 1993, and principal is payable annually commencing September 1, 1993 in amounts ranging from $310,000 to $410,000, The Certificates, including portions thereof, maturing on September 1, 1996, and thereafter are subject to redemption and payment prior to maturity, upon instructions from the City, at the respective redemption prices set out below: Redemption Dates Redemption Price September 1, 1996 and March 1, 1997 101% September 1, 1997 and each March 1 and September 1 thereafter 100% The debt service requirements to maturity on the Certificates of Participation are as follows: Year Ending June 30, Principal Interest 000 $ 11J:: 28 Total City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes In Long -Term Debt (Continued) Equestrian Center Lease On December 30, 1996, the City entered into a lease with the McCoy Equestrian Center trust to provide property for the equestrian center. The lease is for a period of 25 years for $1 per year with options to renew on an annual basis. $ ---- 23 Chino Valley Independent Fire District Note Payable On December 10, 1998, the City purchased property for $1,350,000 from the CVIFD by making a down payment of $450,000 and issuing a promissory note for $900,000. Payments on the note will be in four equal annual installments of $225,000 commencing December 10, 1999. The first payment required on the note will be reduced by the amount of certain improvements the City makes to the property, $70,830 will be paid from the Sewer Fund and $388,080 will be paid from the Water Fund. $ Proprietary Funds The following is a summary of changes in enterprise fund debt for the year ended June 30, 1999: Advances for Construction Development Program Obligations Certificates of Participation CVIFD Note Payable Compensated Absences (Note 1) Advances From Other Funds Totals Balance at July 1, 1998 Balance at as Originally July 1, 1998 Balance at Reported Adjustments as Adjusted Additions Deletions June 30, 1999 $ 215,166 $ - $ 215,166 $ - $ 48,167 $ 166,999 2,360,155 (2,360,155) 1,093,929 - 1,093,929 20,680,000 20,680,000 - 590,000 20,090,000 - - 458,910 - 458,910 94,663 94,663 - 3,125 91,538 4,159,000 4,159,000 $ 23,349,984 $ (2, -SL LU $ 20,989,829 $ Zt1 $ 2 $ 26,060,376 Deferred Amount on Refunding (1,011,649 (1,011,649) Total Long -Term Debt $ 22 3 $ 13 978,180 (960,855) $ 25.099, 521 The adjustment relates to certain developer obligations which were reported in the enterprise funds in prior years which were moved to the General Long -Term Debt Account Group in fiscal year 1998-99. Certificates of Participation On May 1, 1996 the City issued $21,645,000 in Certificates of Participation. The certificates consist of serial certificates maturing in principal amounts of $420,000 to $1,440,000 beginning June 1997 through June 2015 with interest rates ranging from 4.65% to 7.00% and term certificates of $4,440,000 maturing on June 1, 2018 with an interest rate of 5.6%. The certificates were issued in order to advance refund $22.4 million of outstanding installment obligation due the Inland Empire Public Facilities Corporation and Water Facilities Authority. There is no principal amount outstanding on the original debt at June 30, 1999. 29 City of Chino Hills Notes to Financial Statements (Continued) Note 9: Changes In Long -Term Debt (Continued) The annual requirements to amortize the Certificates of Participation outstanding, as of June 30, 1999 are as follows: Year Lona -Term Debt 2000 $ 1,739,155 2001 1,736,630 2002 1,745,475 2003 1,751,395 2004 1,749,645 Thereafter 24,302,450 Subtotal $ 33,024,750 Less Interest 12,934,750 Total Principal $ 20,090,000 Deferred Amount on Refunding (960,855) 911FRIFIEZ41 M. Advances for Construction In the agreement for the acquisition of the Pomona Valley Water Company ('Pomona Valley'), the City agreed to assume responsibility for repayment of certain cash advances made to Pomona Valley by various developers and individuals under individual contracts for the construction of main extension pipeline and special facilities. The advances are to be repaid, without interest, based on a percentage of water revenues received from the main extension pipeline payable annually, and within 20 years of the origination of each individual advance with final payment on all advances by the year 2003. $ Development Program Obligations The City has executed many agreements with outside developers requiring developers to provide funding up -front for the costs of backbone infrastructure (major thoroughfares, water and sewer mains, etc.) concurrent with the development of their residential and commercial projects. This up front funding is generally in the form of the developer constructing the backbone infrastructure. Future development fees will be used to reimburse the developers for their up -front funding. A liability has been recorded for the project costs incurred to date, including estimated construction -in -progress. $ Chino Valley Independent Fire District Note Payable See note on governmental funds above. $ 458,91.Q Advances From Other Funds During the current fiscal year, $2,659,000 and $1,500,000 were advanced from the Sewer Utilities Fund and Equipment Maintenance Fund, respectively. $ StQ4 30 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. 2. Proposition 218, which was approved by the voters in November 1996, will regulate the City's ability to impose, increase and extend taxes, assessments and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future by the voters. Therefore, the City's ability to finance the services for which the taxes, assessments, and fees were imposed may be significantly impaired. The taxes, fees, and assessments that are subject to the provisions of Proposition 218 that the City currently imposes for its own benefit or as an agent for a special district, or receives from other governmental agencies potentially include the Measure I taxes, business license fees, community facilities districts, special taxes, landscape and lighting district assessments, 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 benefited 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. 31 City of Chino Hills Notes to Financial Statements (Continued) Note 11: Assessment District and Community Facilities District Bond Issues (Continued) The debt outstanding at June 30, 1999 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%. $ 4,630,000 1998 $14,860,000 Community Facilities District No. 9, Special Tax Bonds, due in annual installments of $55,000 to $270,000 through September 1, 2010 plus term bonds due September 1, 2022 and September 1, 2023; interest rates varying from 4.40% to 6.45%. 14,225,000 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%. 8,255,000 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%. 2,535,000 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%. 1,855,000 1993 $2,980,000 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%. 2,625,000 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%. 3,455,000 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%. 16,495,000 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 benefiting 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. 32 • City of Chino Hills Notes to Financial Statements (Continued) Note 12: Joint Venture (Continued) 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 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 parry's installment payments to the Authority as well as any parity debt which shall become due and payable within the succeeding twelve months. Each City has an ongoing financial responsibility as each has assumed a portion of the Authority's debt. During 1995-96, the City issued Certificates of Participation to advance refund the City's portion of this debt (see Note 9). The City's investment in the Authority at June 30, 1999 is $4,528,692. Audited financial information of the Authority for the fiscal year ended June 30, 1999 is summarized as follows: Total assets $ 42.221,040 Total liabilities $ 25,426,099 Total fund equity $ 16 7Q4,941 Operating revenues $ 10,001,835 Operating expenses (10,920,039) Non-operating revenue (net) 6,850 Net Loss $ (9�) Property, plant and equipment (net) $ 34.078,982 Net working capital $ 4,529168 Capital contributions $ 18,855,311 The participants and their audited financial contributions through June 30, 1999 were as follows: 1999 Amount Percent City of Chino Hills $ 5,084,262 26.97 % Monte Vista Water District 2,860,984 15.17 City of Chino 2,495,567 13.24 City of Ontario 5,202,499 27.59 City of Upland 3,211,999 17.03 Total $ i 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. 33 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. Is The following is a schedule of minimum lease payments receivable by years as of June 30,1999: Year Ending June 30, 2000 $ 397,716 2001 404,724 2002 413,460 2003 423.719 Minimum Lease Payments $ 1,639,619 Less Unearned Interest (252,059) Lease Receivable 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, 1998 nririirinnc 11 • 34 Deletions 1 •':� Balance at June 30,199 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 fW General Fixed Assets Account Group. The following is a summary of the changes in contributed capital: Balance at July 1, 1998 Note 16: Residual Equity Transfers Special Revenue Fund: Existing Infrastructure General City Facilities Traffic Facility Fee Development Fee Facility Benefit Enterprise Funds: Water Utility Sewer Utility Total Balance at Additions Deletions June 30, 1999 Residual Residual Equity Equity $ 8,402,988 $ 32,779 3,666,500 - - 9,968,055 2,155, 300 31,700 6,300 $ 12,102,267 $ 12161 355 An additional residual equity transfer of $21,088 was made out of the Existing Infrastructure Fee Special Rev to the Water Utility Enterprise Fund as contributed capital and $38,000 was made out of the Enterprise contributed capital to the Data Processing Internal Service Fund. Note 17: Prior Period Adjustments Beginning retained earnings has been restated as follows: Enterprise Funds Water Utility Prior year debt associated with developer agreements has been shifted to the existing Infrastructure Fund which is currently liable under the new development fee ordinance. ' 0 i, s' 8 $ 1,325,901 eJ,:;T'i �ZM, 32v Prior year water acquisition was understated. (344,584) Total $ 981,317 Sewer Utility Prior year debt associated with developer agreements has been shifted to the existing Infrastructure Fund which is currently liable under the new developer ordinance. Total Enterprise Funds 35 979,03 City of Chino Hills Notes to Financial Statements (Continued) Note 18: Fund Balance Reserves and Designations Fund balance reserves and designations are as follows: Note 19: Segment Information Operating revenues Depreciation and amortization Operating income Operating transfers out Net income (loss) Current capital contributions Fixed asset additions Intangible asset additions Fixed asset deletions Bonds and note payable Net working capital Total assets Total equity Water Utility Sewer Utility Total $ 10, 542, 877 $ 3,694,083 Special Debt Capital 2,805,610 General Revenue Service Projects - Fund Funds Fund Funds Reserved 1,785,405 10, 027, 526 5,702,458 1,989,914 Non-current portion of 14, 668,150 - 14, 668,150 16,317,409 assessments receivable $ - $ 1,523,987 $ - $ _ Acquisition of Facilities - 221,484 - - Encumbrances 133,327 22,042 - 1,517,843 Debt service - - 258,395 - Total Reserved $ $ 767. 1 $ 25 $ 1 Designated Structure replacement $ - $ 8,588,921 $ - $ - Capital improvements - 1,544,900 - - Cash flow 3,225,244 2,393,141 - - Assessment District lien payoffs - 1,026,393 - - Donation 10,000 - - _ Special projects 8,270,781 Loan to other funds 3,107,000 Total Designated $ $s Sys $ Note 19: Segment Information Operating revenues Depreciation and amortization Operating income Operating transfers out Net income (loss) Current capital contributions Fixed asset additions Intangible asset additions Fixed asset deletions Bonds and note payable Net working capital Total assets Total equity Water Utility Sewer Utility Total $ 10, 542, 877 $ 3,694,083 $ 14, 236, 960 2,087,228 718,382 2,805,610 (1,000,163) 673,653 (326, 510) (40, 622) - (40, 622) (210, 049) 1,079,270 869,221 8,242,121 1,785,405 10, 027, 526 5,702,458 1,989,914 7,692,372 14, 668,150 - 14, 668,150 16,317,409 - 16,317,409 20,778,153 70,830 20,848,983 11,009,816 6,738,739 17,748,555 102, 769,389 32, 342,125 135,111, 514 73, 932, 670 31, 558,123 105, 490, 793 36 City of Chino Hills Notes to Financial Statements (Continued) Note 20: Subsequent Events There is a general plan initiative to be voted on by City residents in November 1999, which, if it passes, would the City Council's ability to increase residential density zoning. An increase in residential zoning density woul majority voter approval. Current zoning on a significant amount of developable residential parcels in the City�Is density of units per acre than the density desired by residential developers. If this initiative passes, it could signifi down development in the City due to the voter approval requirement. Overhead revenue from development is c General Fund's largest revenue source, therefore, a decrease in the amount of development could have a signif impact on the General Fund. 37 REQUIRED SUPPLEMENTARY INFORMATION 38 CITY OF CHINO HILLS REQUIRED SUPPLEMENTARY INFORMATION (Unaudited) EVALUATION OF THE YEAR 2000 ISSUE The City of Chino Hills is in the process of evaluating its computer programming code, computer equipment, and other electronic systems and equipment (including equipment containing embedded chips) to ascertain which of these might be impacted by a failure to properly recognize and process transactions dated on or after the year 2000. In addition, certain dates in calendar year 1999 may present difficulties because some programs and embedded chips were coded to read a date of '99' or '9991 to mean something other than a date (e.g. 'end of file' etc.) which might also prevent the proper processing of data As of June 30, 1999, there is no unexpended portion of contracts entered into by the City to address year 2000 issues for computer systems and other electronic equipment, as the City has fairly recently installed new accounting software. Additional amounts may be expended for the City's year 2000 assessment, implementation and testing activities, as well as amounts that may need to be expended after January 1, 2000 to correct problems not previously detected and corrected. Because of the unprecedented nature of the year 2000 issue, it is not possible to provide assurances that the City has or will achieve complete year 2000 compliance, even after completing all planned year 2000 corrective actions and related testing. Nor can the City determine the effect, if any, on City operations should entities external to the City (other governments, significant vendors, suppliers, service providers, customers, taxpayers, businesses, etc.) fail to address year 2000 issues in a timely manner. The scope of an audit does not include an evaluation of the adequacy of management's plans with respect to this issue. Equipment and systems considered by management to be critical to conducting operations are discussed in the following paragraph: The City is in the remediation stage of updating its systems to address year 2000 issues. One of the City's major critical systems is the Finance Department's system. Most of the Finance Department's new hardware has been installed, including the network server. The majority of the software was installed in recent years and is thought to address the year 2000 issue. Other critical systems include water and sewer service systems, traffic control systems and irrigation control systems. The remediation required for these systems is expected to address the year 2000 issue. The completion of these stages is not a guarantee that systems and equipment will be year 2000 compliant. 39 GENERAL FUND The General Fund accounts for all financial resources and transactions except those required to be accounted for in other funds. 41 Cash and investments Receivables (Net of allowances) Accounts Interest Taxes Due from other funds Due from other agencies Due from other governments Advances to other funds Total Assets CITY OF CHINO HILLS Schedule 1 BALANCE SHEET GENERALFUND JUNE 30, 1999 1999 1998 $ 11, 877, 032 $ 12, 034, 570 60,092 145,703 289,008 367,358 308,114 219,472 1,632,281 150,634 122,508 - 299,121 202,794 1,607,000 - $ 16,195,156 $ 13,120, 531 Liabilities: Accounts payable $ 902,724 $ 1,170,786 Retention payable 4,315 - Salaries and benefits payable 373,678 155,555 Due to other funds 9,649 3,480 Due to developers 92,365 92,365 Advances from other funds 49,073 - Compensated absences payable 17,000 17,000 Total Liabilities 1,448,804 1,439,186 Fund Balances: Reserves: Encumbrances Unreserved: Designated for cash flow Designated for contingencies Designated for special projects Designated for loan to other funds Designated for donation Total Fund Balances Total Liabilities and Fund Balances 42 133,327 547,282 3,225,244 3,225,244 - 7,899,523 8,270,781 9,296 3,107,000 - 10,000 - 14, 746, 352 11, 681, 345 $ 16,195,156 $ 13,120, 531 CITY OF CHINO HILLS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GENERALFUND FOR THE FISCAL YEAR ENDED JUNE 30, 1999 Schedule 2 Other Financing Sources (Uses): Proceeds of capital leases 1999 1998 Revenues: 35,106 342,840 Taxes $ 7,292,713 $ 5,981,999 Licenses and permits 2,795,653 2,980,922 Use of money and property 1,189,989 1,323,046 Charges for services 4,195,152 3,694,476 Fines and forfeitures 257,227 144,573 Other 968,470 679,495 Total Revenues 16,699,204 14,804,511 Expenditures: $ 11,681,345 $ 9,332,320 Current: - (31,415) General government 4,007,419 3,401,754 Public safety 3,472,065 3,328,873 Public works 1,430,553 1,400,959 Community development 3,784,203 3,945,622 Cultural and leisure 749,388 469,801 Debt service: $ 14,746,352 $ 11,681,345 Principal 50,453 17,097 Interest and fiscal charges 7,118 5,276 Total Expenditures 13,501,199 12,569,382 Excess of Revenues over (under) Expenditures 3,198,005 2,235,129 Other Financing Sources (Uses): Proceeds of capital leases - 103,715 Operating transfers in 35,106 342,840 Operating transfers out (168,104) (301,340) Total Other Financing Sources (Uses) (132,998) 145,215 Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses $ 3,065,007 $ 2,380,344 Fund Balances: Beginning of Fiscal Year $ 11,681,345 $ 9,332,320 Restatement - (31,415) Beginning of Fiscal Year, as restated 11,681,345 9,300,905 Excess of Revenues and other Sources over (under) Expendi- tures and Other Uses 3,065,007 2,380,344 Residual Equity Transfer - 98 End of Fiscal Year $ 14,746,352 $ 11,681,345 43 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, 1999 Revenues: Taxes Licenses and Permits Use of money and property Charges for services Fines and forfeitures Other Total Revenues Expenditures: General Government: City council City manager City clerk City attorney Finance Personnel Risk management Non-departemental Total General Government Public Safety: Law enforcement Fire Protection Animal control Total Public Safety Public Works: Public works Community Development: Community development Building and safety Planning Code enforcement Economic development Total Community Development Cultural and Leisure: Recreation services Community services Total Cultural and Leisure 1999 Variance - Favorable Budget Actual (Unfavorable) Schedule 3 Page 1 of 2 I n n O $ 6,430,500 $ 7,292,713 $ 862,213 $ 5,981,999 3,016,100 2,795,653 (220,447) 2,980,922 1,151,200 1,189,989 38,789 1,323,046 4,285,900 4,195,152 (90,748) 3,694,476 187,500 257,227 69,727 144,573 301,900 968,470 666,570 679,495 15, 373,100 16, 699, 204 1,326,104 14, 804, 511 141,800 108,519 33,281 89,996 762,200 721,377 40,823 434,994 715,700 420,872 294,828 404,844 449,700 449,668 32 288,969 1,029,000 964,857 64,143 983,269 246,900 179,297 67,603 147,678 747,500 599,099 148,401 687,499 1,087,100 618,475 468,625 424,166 5,179,900 4,062,164 1,117,736 3,461,415 3,539,100 3,405,228 133,872 3,167,055 - - - 131,212 68,600 66,837 1,763 70,000 3,607,700 3,472,065 135,635 3,368,267 4,151,300 1,506,777 2,644,523 1,439,521 528,300 472,069 56,231 302,095 2,924,700 2,826,870 97,830 3,274,622 976,600 370,887 605,713 464,389 - - - 166,903 207,900 114,377 93,523 134,630 4,637,500 3,784,203 853,297 4,342,639 214,600 153,247 61,353 104,365 854,100 598,499 255,601 378,084 $ 1,068,700 $ 751,746 $ 316,954 $ 482,449 44 • CITY OF CHINO HILLS Schedule 3 SCHEDULE OF REVENUES,EXPENDITURES AND Page 2 of 2 CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) GENERALFUND FOR THE FISCAL YEAR ENDED JUNE 30, 1999 Adjustments: To adjust for encumbrances 1999 133,327 1998 Excess of Revenues and other Sources Variance - over (under) Expenditures and Favorable Other Uses (GAAP Basis) Budget Actual (Unfavorable) Actual Debt Service: Principal $ 50,500 $ 50,453 $ 47 $ 17,097 Interest and fiscal charges 24,600 7,118 17,482 5,276 Total Debt service 75,100 57,571 17,529 22,373 Total Expenditures 18,720,200 13,634,526 5,085,674 13,116,664 over (under) Expenditures and Excess of Revenues over Other Uses (GAAP Basis) (7,372,000) (under) Expenditures (3,347,100) 3,064,678 6,411,778 1,687,847 Other Financing Sources (Uses): - 96 End of Fiscal Year $ 4,309,345 Proceeds of capital leases - - - 103,715 Operating transfers in 43,200 35,106 (8,094) 342,840 Operating transfers out (4,068,100) (168,104) 3,899,996 (301,340) Total Other Financing Sources (Uses) (4,024,900) (132,998) 3,891,902 145,215 Excess of Revenues and other Sources over (under) Expenditures and Other Uses (Budgetary Basis) (7,372,000) 2,931,680 10,303,680 1,833,062 Adjustments: To adjust for encumbrances 133,327 133,327 547,282 Excess of Revenues and other Sources over (under) Expenditures and Other Uses (GAAP Basis) $ (7,372,000) $ 3,065,007 $ 10,437,007 $ 2,380,344 Fund Balances: Beginning of Fiscal Year $ 11,681,345 $ 11,681,345 $ - $ 9,332,320 Restatement - (31,415) Beginning of Fiscal Year, as restated 11,681,345 11,681,345 - 9,300,905 Excess of Revenues and other Sources over (under) Expenditures and Other Uses (GAAP Basis) (7,372,000) 3,065,007 10,437,007 2,380,344 Residual Equity Transfer - - - 96 End of Fiscal Year $ 4,309,345 $ 14,746,352 $ 10,437,007 $ 11,681,345 W Is SPECIAL REVENUE FUNDS Lighting 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. Existing Infrastructure Fee - To account for receipts and expenditures of money in the facilities development program which provides for the reimbursement of expenditures to property owners who constructed the facilities in the program. City Facilities Fee - To account for receipts and expenditures of money in the facilities development program for civic facilities such as a civic center, fire stations and community centers. Traffic Facilities Fee - To account for receipts and expenditures of money in the facilities development program for traffic facilities such as streets, sidewalks, curbs and gutters. Storm Drain Facilities Fee - To account for receipts and expenditures of money in the facilities development program for storm drain facilities. FBA - To account for receipts and expenditures of money in the facilities benefit assessment program which provides for the acquisition of land (on which infrastructure facilities are constructed) and is financed from fees collected from the development of residential and commercial properties. Parkland Fee - To account for receipts and expenditures of money in the park development fee program which provides funds for the acquisition of land and construction of parks within the City and is financed from fees collected from the development of residential and commercial properties. Traffic Signal Fee - To account for the receipts and expenditures of money in the traffic signal fee program which provides funds for the installation of traffic signals within the City. Gas Tax - To account for receipts and expenditures of money apportioned under the State of California Streets and Highways Code Sections 2105, 2106 and 2107. Air Quali - 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 46 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 11k 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 Sweeping - To account for receipts and expenditures of money in providing street sweeping services as financed through assessment fees collected from residential and commercial property owners. Frontline Policing - To account for the receipts and expenditures of money for the Frontline Policing Grant received from the State of California for qualifying police activities. Miscellaneous Grants - To account for receipts and expenditures of money for various grants received from Local, State, and Federal agencies. 47 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 Advance to other funds Due from other governments Total Assets LIABILITIES AND FUND BALANCES Liabilitles: Accounts payable Salaries and benefits payable Retentions payable Due to other funds Due to other governments Advance from other funds Deferred revenue Total Liabilities Fund Balances: Reserved: Long term deferred special assessment receivable Acquisition of Facilities Encumbrances Unreserved: Designated for: Structural replacement Capital improvements Assessment district lien payoffs Cash flow Undesignated Total Fund Balances Total Liabilities and Fund Balances CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS JUNE 30, 1999 Schedule 4 Page 1 of 4 Lighting and Sleepy Existing Landscape Hollow Road Development Infrastructure District Improvement Fee Fee $ 10,321,226 $ 43,066 $ - $ 3,965,675 2,711 - - - 147,426 577 - 81,130 99,291 493 - - - - 1,523,987 4,427 $ 10, 570, 654 $ 44,136 $ - $ 5,575,219 $ 322,821 $ 1,126 $ - $ 2,755 11,885 - _ - 135,715 - 470,421 1,126 2,755 1,523,987 17,643 - 7,689,449 - _ - - - 1,544,900 - - 1,026,393 2,393,141 - - - - 43,010 1,477,184 10,100,233 43,010 5,572,464 $ 10,570,654 $ 44,136 $ - $ 5,575,219 48 Schedule 4 Page 2 of 4 city Traffic Storm Drain Parkland Traffic 1,628,617 Facilities Fee Facilities Fee Facilities Fee FBA Fee Signal Fee • Gas Tax $ 1,276,210 $ 3,918,972 $ 347,780 $ $ 1,260,221 $ 3,900,278 $ 321,716 $ $ 4,625,694 $ 56,584 $ 1,518,982 15,989 18,694 3,580 58,743 3,301 16,609 - - - - - - 93,026 22,484 - $ 1,276,210 $ 3,918,972 $ 347,780 $ $ 4,684,437 $ 59,885 $ 1,628,617 1,070,000 - 1,070,000 - - 221,484 15,274 3,918,972 347,780 4,684,437 59,885 1,628,617 206,210 3,918,972 347,780 - 4,684,437 59,885 1,628,617 $ 1,276,210 $ 3,918,972 $ 347,780 $ $ 4,684,437 $ 59,885 $ 1,628,617 49 CITY OF CHINO HILLS Schedule 4 COMBINING BALANCE SHEET Page 3 of 4 ALL SPECIAL REVENUE FUNDS JUNE 30, 1999 Cash and investments Receivables (net of allowances): Accounts receivable Interest Taxes Grants Special assessments Deferred special assessments Due from other funds Advance to other funds Due from other governments Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Salaries and benefits payable Retentions payable Due to other funds Due to other governments Advance from other funds Deferred revenue Total Liabilities Fund Balances: Reserved: Long term deferred special assessment receivable Acquisition of Facilities Encumbrances Unreserved: Designated for: Structural replacement Capital improvements Assessment district lien payoffs Cash flow Undesignated Total Fund Balances Total Liabilities and Fund Balances Air Federal Solid (duality Grants Measure I Waste $ 233,263 $ 115,269 $ 714,605 $ 429,742 - - - 422,724 2,881 111 9,267 - - - 41,445 24,962 - 26,740 10,326 - _ $ 262,884 $ 150,668 $ 765,317 $ 852,466 $ - $ -- $ - $ 755,087 - 35,288 97,379 7,819 43,107 - 852,466 4,399 258,485 107,561 765,317 - 262,884 107,561 765,317 - $ 262,884 $ 150,668 $ 765,317 $ 852,466 50 • Schedule 4 Page 4 of 4 $ 40,112 $ 20,988 $ 23,465 - 12,003 75,580 20,988 _ - $ - $ 1,142, 889 Street Frontline Miscellaneous T O T A L S Recreation Sweeping Policing Grants 1 9 9 9 1 9 9 8 1,861,418 $ 5,162 $ 905,176 $ 102,374 $ 2,256 $ 28, 521, 289 $ 33, 941, 339 14,891 - - - 440,326 467,973 - 11,720 1,509 - 371,537 497,018 - - - - 134,471 117,825 - - 24,962 24,962 3,564 - 103,348 122,595 - - 1,523,987 1,389,327 - - 28,780 - 26,911 - _ - - - 29,584 66,650 54,677 $ 20,053 $ 920,460 $ 103,883 $ 31,840 $ 31,213,481 $ 36,644,496 $ 40,112 $ 20,988 $ 23,465 - 12,003 75,580 20,988 _ - $ - $ 1,142, 889 $ 1,249,674 35,350 73,908 - 29,584 309,969 514,256 - - 1,070,000 - _ 2,256 10,075 23,580 _ 31,840 2,568,283 1,861,418 1,523,987 221,484 22,042 1,389,327 279,370 899,472 - 8,588,921 11,793,025 - - 1,544,900 853,200 - 1,026,393 331,626 - - 2,393,141 2,233,818 55,52 - 103,883 - 13,324,330 17,902,712 (55,527) 899,472 103,883 - 28, 645,198 34, 783, 078 $ 20,053 $ 920,460 $ 103,883 $ 31,840 $ 31,213,481 $ 36,644,496 51 CITY OF CHINO HILLS Schedule 5 COMBINING STATEMENT OF REVENUES, EXPENDITURES Page 1 of 4 AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 w 52 Lighting and Sleepy Existing Landscape Hollow Road Development Infrastructure District Improvement Fee Fee Revenues: Special assessments $ 5,035,545 $ 11,480 $ - $ _ Use of money and property 570,176 2,641 310,525 35,053 Intergovernmental _ _ - Development fees - - 2,213,225 4,343,054 Charges for services 2,758 _ _ - Other 1,100,221 - 56,325 - Total Revenues 6,708,700 14,121 2,580,075 4,378,107 Expenditures: Current: General government - 2,287 - - Public safety - _ - _ Public works 5,593,460 - 589,734 650,449 Culture and leisure - Contribution to assessment districts - 736,851 4,368,530 Capital outlay 8,600 - 275,898 Debt Service: Principal - - 554,419 3,063,019 Interest and fiscal charges - - 2,028,989 1,997,768 Total Expenditures 5,602,060 2,287 3,909,993 10,355,664 Excess of Revenues over (under) Expenditures 1,106,640 11,834 (1,329,918) (5,977,557) Other Financing Sources (Uses): Proceeds of long term -term debt 264,870 - - 3,147,033 Operating transfers in 1,325,639 _ _ Operating transfers out (5,881,489) (35,987) - - Total Other Financing Sources (Uses) (4,290,980) (35,987) - 3,147,033 Excess of Revenues and Other Sources over (under) Expendi- tures and Other Uses $ (3,184,340) $ (24,153) $ (1,329,918) $ (2,830,524) Fund Balances: Beginning of Fiscal Year $ 13,284,573 $ 67,163 $ 11,297,973 $ - Restatement - _ _ Beginning of Fiscal Year - as restated 13,284,573 67,163 11,297,973 Excess of Revenues and Other Sources over (under) Expendi- tures and Other Uses (3,184,340) (24,153) (1,329,918) (2,830,524) Residual Equity Transfer - - (9,968,055) 8,402,988 End of Fiscal Year $ 10,100,233 $ 43,010 $ $ 5,572,464 52 Schedule 5 Page 2 of 4 City Traffic Storm Drain 53,475 - - - Parkland Traffic 158,167 61,699 73,596 Facilities Fee Facilities Fee Facilities Fee FBA Fee Signal Fee Gas Tax $ 223,793 $ 1,764,597 - - 2,040,059 3,394,316 223,793 25,293 73,445 5,938 66,775 195,512 11,718 68,183 - - - - - - 1,008,955 515,160 240,726 415,438 112,491 1,292,400 26,202 - - - - - 880 290 - 540,453 314,171 421,376 179,266 1,488,792 38,210 1,077,138 102,330 61,699 73,596 10,550 110,454 4,500 - - - - 53,475 - - - 55,837 - - - - - _ 158,167 61,699 73,596 64,025 110,454 4,500 - 382,286 252,472 347,780 115,241 1,378,338 33,710 1,077,138 176,220 (385,075) - - - (88,217) (197,618) (1,213,118) (208,855) - - - (88,217) (197,618) (1,213,118) $ 173,431 $ 252,472 $ 347,780 $ 115,241 $ 1,290,121 $ (163,908) $(135,980) $ - $ - $ - $ 2,040,059 $ 3,394,316 $ 223,793 $ 1,764,597 - - 2,040,059 3,394,316 223,793 1,764,597 173,431 252,472 347,780 115,241 1,290,121 (163,908) (135,980) 32,779 3,666,500 - (2,155,300) - - - $ 206,210 $ 3,918,972 $ 347,780 $ - $_4 684,437 $ 59,885 $ 1,628,617 53 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, 1999 Schedule 5 Page 3 of 4 54 Air Federal Solid Quality Grants Measure I Waste Revenues: Special assessments $ - $ _ $ _ $ _ Use of money and property 9,822 534 60,609 Intergovernmental 70,023 131,257 523,230 Development fees _ _ _ Charges for services - 100 3,460,615 Other Total Revenues 79,845 131,791 583,939 3,460,615 Expenditures: Current: General government - 11,744 - Public safety _ _ _ Public works - 10,326 3,460,615 Culture and leisure _ _ _ Contribution to assessment districts - - _ Capital outlay 51,061 3,886 - Debt Service: Principal _ _ _ Interest and fiscal charges - _ _ Total Expenditures 51,061 25,956 3,460,615 Excess of Revenues over (under) Expenditures 28,784 105,835 583,939 - Other Financing Sources (Uses): Proceeds of long term -term debt - - _ Operating transfers in 1,726 Operating transfers out - (1,282,741) Total Other Financing Sources (Uses) - 1,726 (1,282,741) Excess of Revenues and Other Sources over (under) Expendi- tures and Other Uses $ 28,784 $ 107,561 $ (698,802) $ - Fund Balances: Beginning of Fiscal Year $ 234,100 $ - $ 1,464,119 $ - Restatement _ _ _ Beginning of Fiscal Year - as restated 234,100 - 1,464,119 Excess of Revenues and Other Sources over (under) Expendi- tures and Other Uses 28,784 107,561 (698,802) Residual Equity Transfer - - - End of Fiscal Year $ 262,884 $ 107,561 $ 765,317 $ 54 Schedule 5 Page 4 of 4 • 3,670,913 3,614,380 Street Frontline Miscellaneous T O T A L S (Recreation Sweeping Policing Grant 1 9 9 9 -1998 2,743,827 $ - $ 169,605 $ - $ $ 5,216,630 $ 5,215,613 31,669 41,420 6,819 1,516,132 1,839,903 - - 123,437 - 1,856,902 1,709,549 - (5,061,702) - 9,158,696 14,149,910 566,457 - - (4,168,757) 4,031,100 3,779,937 _ 494 - - - 1,157,040 1,468,033 _ 598,620 211,025 130,256 22,936,500 28,162,945 $ 124,047 $ - - - 14,031 1,234 - - 150,420 150,420 72,683 - 199,779 - 10,867,492 10,939,800 654,259 - - 654,259 595,697 - 623,029 $ 55,527 $ 5,105,381 5,630,944 $ 28,645,198 $ 34,783,078 339,445 52,206 3,670,913 3,614,380 55 !U01 r 1a I Oy,,+ev - Z4,004,003 ZJ,4Ito, I i t$ (55, 639) 11,246_ (20,164) (1, 48,035) 2,743,827 - 3,588,123 4,455,318 - - 1,327,365 1,045,595 _ - - (9,084,245) (5,061,702) _ - (4,168,757) 439,211 .L__L5,639 $ 11,246 $ (20,164) $ - $ (6,116,792) $ 3,183,038 $ 112 $ 888,226 $ 124,047 $ $ 34, 783, 078 $ 31, 007, 524 _ - - - (30,513) 112 888,226 124,047 34,783,078 30,977,011 (55,639) 11,246 (20,164) (6,116,792) 3,183,038 _ - - - (21, 088) 623,029 $ 55,527 $ 899,472 $ 103,883 $ $ 28,645,198 $ 34,783,078 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, 1999 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 56 Schedule 6 Page 1 of 14 LIGHTING AND LANDSCAPE DISTRICT 6,759,300 5,611,103 Variance - 8,600 8,600 Favorable Budget Actual (Unfavorable) $ 4,950,500 $ 5,035,545 $ 85,045 396,300 570,176 173,876 - 2,758 2,758 - 1,100,221 1,100,221 5,346,800 6,708,700 1,361,900 6,759,300 5,611,103 1,148,197 8,600 8,600 6,767,900 5,619,703 1,148,197 (1,421,100) 1,088,997 2,510,097 - 264,870 264,870 1,769,200 1,325,639 (443,561) (7,955,000) (5,881,489) 2,073,511 (6,185,800) (4,290,980) 1,894,820 (7,606,900) (3,201,983) 4,404,917 17,643 17,643 $ (7,606,900) $ (3,184,340) $ 4,422,560 $ 13,284,573 $ 13,284,573 $ - 13,284,573 13,284,573 - (7,606,900) (3,184,340) 4,422,560 $ 5,677,673 $ 10,100,233 $ 4,422,560 0 Schedule 6 Page 2 of 14 SLEEPY HOLLOW ROAD IMPROVEMENT DEVELOPMENT FEE • Variance - Favorable Budget Actual (Unfavorable) $ 10,100 $ 11,480 $ 1,380 1,000 2,641 1,641 11,100 14,121 3,021 2,300 2,287 13 8,800 11,834 3,034 (61,200) (35, 987) 25,213 61,200 (35,987) 25,213 (52,400) (24,153) 28,247 $ (52,400) $ (24,153) $ 28,247 $ 67,163 $ 67,163 $ - 67,163 67,163 (52,400) (24,153) 28,247 $ 14,763 $ 43,010 $ 28,247 57 635,200 589,734 Variance - 736,900 736,851 Favorable Budget Actual (Unfavorable) 2,029,000 2,028,989 11 310,600 310,525 (75) 2,258,800 2,213,225 (45,575) 60,000 56,325 (3,675) 2,629,400 2,580,075 (49,325) 635,200 589,734 45,466 736,900 736,851 49 554,500 554,419 81 2,029,000 2,028,989 11 3,955,600 3,909,993 45,607 (1,326,200) (1,329,918) (3,718) (1,326,200) (1,329,918) (3,718) $ (1,326,200) $ (1,329,918) $ (3,718) $ 11,297,973 $ 11,297,973 $ 11,297,973 11,297,973 (1,326,200) (1,329,918) (3,718) - (9,968,055) (9,968,055) $ 9,971,773 $ $ (9,971,773) 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, 1999 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 58 Schedule 6 Page 3 of 14 EXISTING INFRASTRUCTURE FEE Variance - Favorable Budget Actual (Unfavorable) 235,700 35,053 (200,647) 9,379,900 4,343,054 (5,036,846) 2,734,400 (2,734,400) 12, 350, 000 4,378,107 (7,971,893) 852,300 650,449 201,851 4,368,600 4,368,530 70 275,900 275,898 2 3,477,900 3,063,019 414,881 3,274,900 1,997,768 1,277,132 12,249,600 10,355,664 1,893,936 100,400 (5,977,557) (6,077,957) 3,147,033 (3,147,033) 3,147,033 (3,147,033) 100,400 (2,830,524) (2,930,924) $ 100,400 $ (2,830,524) $ (2,930,924) 100,400 (2,830,524) (2,930,924) - 8,402,988 8,402,988 $ 100,400 $ 5,572,464 $ 5,472,064 • CITY FACILITIES FEE TRAFFIC FACILITIES FEE Schedule 6 Page 4 of 14 (520,600) 173,431 694,031 Variance- 5,436,872 32,779 Variance - - 3,666,500 3,666,500 Favorable 726,810 $ (5,184,400) $ 3,918,972 Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) 12,400 25,293 12,893 150,000 73,445 (76,555) 700,000 515,160 (184, 840) 682,300 240,726 (441, 574) 712,400 540,453 832,300 (518,129) (171, 947) 314,171 102,400 102,330 70 61,700 61,699 1 56,100 55,837 263 - - - 158,500 158,167 333 61,700 61,699 1 553,900 382,286 (171,614) 770,600 252,472 (518,128) - 176,220 (176,220) - - (1,074,500) (385,075) 689,425 (5,955,000) 5,955,000 (1,074,500) (208,855) 865,645 (5,955,000) - 5,955,000 (520,600) 173,431 694,031 (5,184,400) 252,472 5,436,872 $ (520,600) $ 173,431 $ 694,031 $ (5,184,400) $ 252,472 $ 5,436,872 (520,600) 173,431 694,031 (5,184,400) 252,472 5,436,872 32,779 32,779 - 3,666,500 3,666,500 $ (520,600) $ 206,210 $ 726,810 $ (5,184,400) $ 3,918,972 $ 9,103,372 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, 1999 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 We STORM DRAIN FACILITIES FEE Schedule 6 Page 5 of 14 Variance - Favorable Budget Actual (Unfavorable) 6,000 5,938 (62) 500,000 415,438 (84, 562) 506,000 421,376 (84,624) 73,600 73,596 4 73,600 73,596 4 432,400 347,780 (84,620) 432,400 347,780 (84,620) $ 432,400 $ 347,780 $ (84,620) 432,400 347,780 (84,620) $ 432,400 $ 347,780 $ (84,620) FBA Schedule 6 Page 6 of 14 • PARKLAND FEE 61 Variance- Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) 66,800 66,775 (25) 125,400 195,512 70,112 112,600 112,491 (109) 1,081,600 1,292,400 210,800 - - - - 880 880 179,400 179,266 (134) 1,207,000 1,488,792 281,792 10,900 10,550 350 110,500 110,454 46 53,500 53,475 25 64,400 64,025 375 110,500 110,454 46 115,000 115,241 241 1,096,500 1,378,338 281,838 - (3,693,500) (88,217) 3,605,283 - - - (3,693,500) (88,217) 3,605,283 115,000 115,241 241 (2,597,000) 1,290,121 3,887,121 $ 115,000 $ 115,241 $ 241 $ (2,597,000) $ 1,290,121 $ 3,887,121 $ 2,040,059 $ 2,040,059 $ - $ 3,394,316 $ 3,394,316 $ - 2,040,059 2,040,059 - 3,394,316 3,394,316 - 115,000 115,241 241 (2,597,000) 1,290,121 3,887,121 - (2,155,300) (2,155,300) - _ _ $ 2,155,059 $ - $ (2,155,059) $ 797,316 $ 4,684,437 $ 3,887,121 61 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, 1999 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 TRAFFIC SIGNAL FEE Schedule 6 Page 7 of 14 Variance - Favorable Budget Actual (Unfavorable) 5,000 11,718 6,718 26,202 26,202 290 290 5,000 38,210 33,210 4,500 4,500 4,500 4,500 - 500 33,710 33,210 (200,x) (200, 000) (199,500) (197, 618) (197, 618) (163,908) 2,382 2,382 35,592 $ (199,500) $ (163,908) $ 35,592 $ 223,793 $ 223,793 $ - 223,793 223,793 - (199,500) (163,908) 35,592 $ 24,293 $ 59,885 $ 35,592 62 GAS TAX Varlance- Favorable Budget Actual (Unfavorable) 5,000 68,183 63,183 937,700 1,008,955 71,255 Schedule 6 Page 8 of 14 AIR QUALITY Variance - Favorable Budget Actual (Unfavorable) 5,000 9,822 4,822 53,800 70,023 16,223 0 57,500 55,460 2,040 57,500 2,040 - - 55,460 942,700 1,077,138 134,438 1,300 24,385 23,085 (2,159, 300) (1,213,118) 946,182 (2,159,300) (1,213,118) 946,182 - - - (1,216,600) (135,980) 1,080,620 1,300 24,385 23,085 - - 4,399 4,399 $ (1,216,600) $ (135,980) $ 1,080,620 $ 1,300 $ 28,784 $ 27,484 $ 1,764,597 $ 1,764,597 $ - $ 234,100 $ 234,100 $ - 1,764,597 1,764,597 - 234,100 234,100 - (1,216,600) (135,980) 1,080,620 1,300 28,784 27,484 $ 547,997 $ 1,628,617 $ 1,080,620 $ 235,400 $ 262,884 $ 27,484 0 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, 1999 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 FEDERAL GRANTS Schedule 6 Page 9 of 14 Variance - Favorable Budget Actual (Unfavorable) - 534 534 413,100 131,257 (281, 843) 413,100 131,791 (281, 309) 36,200 11,744 24,456 401,900 10,326 391,574 4,100 3,886 214 25,956 442,200 416,244 (29,100) 105,835 134,935 1,726 1,726 1,726 1,726 (29,100) 107,561 136,661 $ (29,100) $ 107,561 $ 136,661 (29,100) 107,561 136,661 $ (29,100) $ 107,561 $ 136,661 Is Budget 20,000 488,700 MEASURE I Variance - Favorable tual (Unfavorable) Budget 60,609 40,609 523,230 34,530 Inn 1M I AAA 7M Schedule 6 Page 10 of 14 SOLID WASTE Variance - Favorable actual (Unfavorable) IArnr,Ir, irair. 3,460,700 3,460,615 85 508,700 583,939 75,239 (16,000) - 16,000 (1,756,100) (1,282,741) 473,359 (1,756,100) (1,282,741) 473,359 - (1,247,400) (698, 802) 548,598 (16, 000) 16,000 $ (1,247,400) $ (698,802) $ 548,598 $ (16,000) $ $ 16,000 $ 1,464,119 $ 1,464,119 $ - $ $ - $ - 1,464,119 1,464,119 - - (1,247,400) (698,802) 548,598 (16,000) 16,000 $ 216,719 $ 765,317 $ 548,598$ (16,000) $ $ 16,000 65 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, 1999 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 RECREATION Schedule 6 Page 11 of 14 Variance - Favorable Budget Actual (Unfavorable) 69,200 31,669 (37, 531) 722,200 566,457 (155,743) ,wv �oo,vcv ( 1 z7C, I OV) 779,900 654,259 125,641 11,500 11,500 791,400 654,259 137,141 - (55, 639) (55, 639) (55, 639) (55, 639) $ $ (55,639) $ (55,639) $ 112 $ 112 $ - 112 112 - (55,639) (55,639) $ 112 $ (55,527) $ (55,639) • STREET SWEEPING Schedule 6 Page 12 of 14 • FRONTLINE POLICING 67 Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 285,900 $ 169,605 $ (116,295) $ - $ $ _ 41,000 41,420 420 4,800 6,819 2,019 - - - 132,600 123,437 (9,163) 211,025 (115,875) 137,400 130,256 (7,144) 326,900 - - - 150,500 150,420 80 203,100 199,779 3,321 - _ 199,779 3,321 150,500 150,420 80 203,100 123,800 11,246 (112, 554) (13,100) (20,164) (7,064) 123,800 11,246 (112,554) (13,100) (20,164) (7,064) $ 123,800 $ 11,246 $ (112,554) $ (13,100) $ (20,164) $ (7,064) $ 888,226 $ 888,226 $ - $ 124,047 $ 124,047 $ 888,226 888,226 124,047 124,047 123,800 11,246 (112,554) (13,100) (20,164) (7,064) $ 1,012,026 $ 899,472 $ (112,554) $ 110,947 $ 103,883 $ (7,064) 67 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, 1999 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 68 MISCELLANEOUS GRANTS Schedule 6 Page 13 of 14 Variance Favorable Budget Actual (Unfavorable) 15,500 (15,500) 15,500 (15,500) 15,500 (15,500) (15,500) - (15,500) (15,500) (15,500) • Schedule 6 Page 14 of 14 1999 1998 Variance Favorable Budget Actual (Unfavorable) Actual $ 5,246,500 $ 5,216,630 $ (29,870) $ 5,215,613 1,454,200 1,516,132 61,932 1,839,903 2,041,400 1,856,902 (184,498) 1,709,549 14,715,200 9,158,696 (5,556,504) 14,149,910 4,166,900 4,031,100 (135,800) 3,779,937 2,794,400 1,157, 040 (1,637,360) 1,468,033 30, 418, 600 22, 936, 500 (7,482,100) 28,162, 945 38,500 14,031 24,469 1,234 150,500 150,420 80 72,683 12, 676,100 10, 885,135 1,790,965 11,159,105 779,900 654,259 125,641 595,697 5,105,500 5,105,381 119 5,630,944 357,600 343,844 13,756 112,271 4,085,900 3,670,913 414,987 3,614,380 5,360,000 4,082,594 1,277,406 4,512,174 28,554,000 24,906,577 3,647,423 25,698,488 1,864,600 (1,970,077) (3,834,677) 2,464,457 - 3,588,123 3,588,123 4,455,318 1,769,200 1,327,365 (441, 835) 1,045,595 (22,870,100) (9,084,245) 13,785,855 (5,061,702) (21,100,900) (4,168,757) 16,932,143 439,211 (19,236,300) (6,138,834) 13,097,466 2,90,668 - 22,042 22,042 279,370 $ (19,236,300) $ (6,116,792) $ 13,119,508 $ 3,183,038 34,783,078 34,783,078 $ - $ 31,007,524 - - (30, 513) 34,783.078 34,783,078 - 30.977,011 (19,236,300) (6,116,792) 13,119,508 3,183,038 - (21,088) (21,088) 623,029 $ 15, 546, 778 $ 28, 645,198 $ 13, 098, 420 $ 34, 783, 078 THIS PAGE INTENTIONALLY LEFT BLANK 70 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. 71 CITY OF CHINO HILLS COMPARATIVE BALANCE SHEET CHINO HILLS CORPORATION DEBT SERVICE FUND JUNE 30, 1999 Cash and investments with fiscal agents Liabilities: Accounts payable Fund Balance: Reserved for debt service Total Liabilities and Fund Balances 72 Schedule 7 1999 1998 $ 258,395 $ 258,492 2,338 258,395 256,154 $ 258,395 $ 258,492 a CITY OF CHINO HILLS COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CHINO HILLS CORPORATION DEBT SERVICE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 1999 Revenues: Use of money and property Contribution from developers Total Revenues Expenditures: Current: General government Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Fund Balances: Beginning of Fiscal Year End of Fiscal Year 73 Schedule 8 1999 1998 $ 11,942 $ 13,241 418,747 421,593 430,689 434,834 4,148 6,939 390,000 370,000 34,300 54,738 428,448 431,677 2,241 3,157 256,154 252,997 $ 258,395 $ 256,154 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, 1999 Schedule 9 a 74 1999 1998 Variance Favorable Budget Actual (Unfavorable) Actual Revenues: Use of money and property $ 133,300 $ 11,942 $ (121,358) $ 13,241 Contributions from developers 428,400 418,747 (9,653) 421,593 Other 1,610,000 - (1,610,000) - Total Revenues 2,171,700 430,689 (1,741,011) 434,834 Expenditures: Current: General government 7,000 4,148 2,852 6,939 Debt service: Principal 980,000 390,000 590,000 370,000 Interest and fiscal charges 1,184,800 34,300 1,150,500 54,738 Total Expenditures 2,171,800 428,448 1,743,352 431,677 Excess of Revenues over (under) Expenditures (100) 2,241 2,341 3,157 Fund Balances: Beginning of Fiscal Year 256,154 256,154 - 252,997 End of Fiscal Year $ 256,054 $ 258,395 $ 2,341 $ 256,154 74 s CAPITAL PROJECTS FUNDS Capital Improvement - To account for receipts and expenditures of money for the construction of the Civic Center facility. Community Facilities Districts: Regional #2 Los Ranchos #5 Soguel Canyon and #9 Rincon Villaqe - To account for receipts and expenditures of money for the construction of projects on behalf of these community facilities districts. 75 CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL CAPITAL PROJECTS FUNDS JUNE 30, 1999 A S S E T S Cash and investments Cash with fiscal agent Receivables: Interest Due from other funds Due from developer Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Retention payable Total Liabilities Fund Balances: Reserved: Encumbrances Unreserved: Undesignated Total Fund Balances Total Liabilities and Fund Balances 76 Schedule 10 Page 1 of 2 $ Community Facilities Districts a #9 Capital Rincon Improvement Regional Village $ 800,187 $ 338, 840 $ 833,527 - - 231 - - 9,588 88,822 147,716 - - - 449,316 $ 889,009 $ 486,556 $ 1,292,662 551,707 $ 361,035 $ 239,499 889,W9 486,556 326,958 988,337 219,796 309,710 (988,337) (219,796) 655,994 - 965,704 $ 889,009 $ 486,556 $ 1,292,662 Schedule 10 Page 2 of 2 T O T A L S $ 1,972,554 $ 1,580,434 231 - 9,588 19,504 236,538 772,392 449,316 - $ 2,668,227 $ 2,372,330 $ 1,152,241 $ 1,375,050 550,282 171,602 1,702,523 1,546,652 1,517, 843 2,864,587 (552,139) (2,038,909) 965,704 825,678 $ 2,668,227 $ 2,372,330 77 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, 1999 Revenues: Use of money and property Contribution from developers Other Total Revenues Expenditures: Current: Contribution to assessment districts Capital outlay Debt service: Principal Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses): 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: 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 78 Schedule 11 Page 1 of 2 Community Facilities Districts #9 Capital Rincon Improvement Regional Village $ - $ (4,276) $ 48,082 - 3,412,540 1,790,556 600 6,956 - 3,408,864 1,845,594 - 118,665 7,772,344 3,622,761 1,373,006 229,896 - - 8,002,240 3,622,761 1,491,671 (8,002,240) (213,897) 353,923 8,002,240 - 8,002,240 - $ - $ (213,897) $ 353,923 $ $ 213,897 $ 611,781 213,897 611,781 (213, 897) 353,923 a Schedule 11 Page 2 of 2 T O T A L S 1999 1998 $ 43,806 $ 92,397 5,203,096 615,709 7,556 15,008 5,254,458. 723,114 118,665 318,330 12, 768,111 4,866,874 229,896 13,116, 672 5,185, 204 (7,862,214) (4,462,090) 8,002,240 4,021,562 (43, 237) 8,002,240 3,978,325 $ 140,026 $ (483,765) $ 825,678 $ 2,148,493 - (215, 925) 825,678 1,932,568 140,026 (483, 765) (623,125) $ 965,704 $ 825,678 79 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, 1999 Revenues: Use of money and property Contribution from developers Other Total Revenues Expenditures: Current: Contribution to assessment districts Capital outlay Debt service: Principal 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 W CAPITAL IMPROVEMENT Schedule 12 Page 1 of 3 Variance - Favorable Budget Actual (Unfavorable) 42,124,500 8,760,681 33,363,819 229,900 229,896 4 42,354,400 8,990,577 33,363,823 (42,354,400) (8,990,577) 33,363,823 42,474,400 8,002,240 (34,472,160) 42,474,400 8,002,240 (34,472,160) 120,000 (988,337) (1,108,337) - 988,337 988,337 $ 120,000 $ - $ (120,000) 120,000 - (120,000) 4 Schedule 12 Page 2 of 3 • 4,956,300 4,956,300 (3,426,000) 1,500,000 3,842,557 3,842,557 (433,693) 1,500,000 - - 167,500 REGIONAL CFD 32,050 #9 RINCON VILLAGE CFD 1,665,931 2,336,769 Variance- 1,801,381 Variance - 2,992,307 261,600 44,213 Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 3,000 $ (4,276) $ (7,276) $ - $ 48,082 $ 48,082 1,527,300 3,412,540 1,885,240 4,431,800 1,790,556 (2,641,244) ' 600 600 - 6,956 6,956 1,530,300 3,408,864 1,878,564 4,431,800 1,845,594 (2,586,206) 4,956,300 4,956,300 (3,426,000) 1,500,000 3,842,557 3,842,557 (433,693) 1,500,000 - - 167,500 135,450 32,050 1,113,743 4,002,700 1,665,931 2,336,769 1,113,743 4,170,200 1,801,381 2,368,819 2,992,307 261,600 44,213 (217, 387) (1,500,000) (1,500,000) (1,926,000) (433,693) 1,492,307 261,600 44,213 (217,387) - 219,796 219,796 - 309,710 309,710 $ (1,926,000) $ (213,897) $ 1,712,103 $ 261,600 $ 353,923 $ 92,323 $ 213,897 $ 213,897 $ - $ 611,781 $ 611,781 $ - 213,897 213,897 - 611,781 611,781 - (1,926, 000) (213,897) 1,712,103 261,600 353,923 92,323 $ (1,712,103) $ - $ 1,712,103 $ 873,381 $ 965,704 $ 92,323 81 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, 1999 Revenues: Use of money and property Contribution from developers Other Total Revenues Expenditures: Current: Contribution to assessment districts Capital outlay Debt service: Principal 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 Schedule 12 Page 3 of 3 82 a 1999 1998 Variance - Favorable Budget Actual (Unfavorable) Actual $ 3,000 $ 43,806 $ 40,806 $ 92,397 5,959,100 5,203,096 (756,004) 615,709 - 7,556 7,556 15,008 5,962,100 5,254,458 (707,642) 723,114 167,500 135,450 32,050 318,330 51,083,500 14,269,169 36,814,331 7,731,461 229,900 229,896 4 - 51,480,900 14,634,515 36,846,385 8,049,791 (45,518,800) (9,380,057) 36,138,743 (7,326,677) 1,500,000 - (1,500,000) - 42,474,400 8,002,240 (34,472,160) 4,021,562 - - (43, 237) 43,974,400 8,002,240 (35,972,160) 3,978,325 (1,544,400) (1,377,817) 166,583 (3,348,352) 1,517,843 1,517,843 2,864,587 $ (1,544,400) $ 140,026 $ 1,684,426 $ (483,765) $ 825,678 $ 825,678 $ - $ 2,148,493 - - (215, 925) 825,678 825,678 - 1,932,568 (1,544,400) 140,026 1,684,426 (483,765) - - (623,125) $ (718, 722) $ 965,704 $ 1,684,426 $ 825,678 82 a 0 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. Current assets: Cash and investments Restricted assets: Cash and investments with fiscal agents Accounts receivable, net of allowances Accrued interest receivable Prepaid items Deposits Deposit with Water Facilities Authority Lease payments receivable - current Due from other funds Prepaid expenses Due from other agencies Inventories Total Current Assets Non -Current Assets: Lease payments receivable Deferred charges Investment in Water Facilities Authority Advances to other funds Total Non -Current Assets Property, Plant and Equipment: Land Easement Utility plant in service Pipeline in service Meters Buildings and improvements Equipment Construction in progress Water rights Total Property, Plant and Equipment Less accumulated depreciation Less accumulated amortization Net Property, Plant and Equipment Total Assets CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS JUNE 30, 1999 Water Sewer Utility Utility Schedule 13 Page 1 of 2 TOTAL A A A $ 11,690,384 $ 4,929,339 $ 16,619,723 $ 23,914,841 2, 430 - 2,430 2,667 1,339,342 435,698 1,775,040 1,834,282 213,918 56,946 270,864 350,736 35,000 35,000 110,000 301,320 - 301,320 277,140 139,115 2,003,097 2,142,212 45,081 1,583,550 10,087 1,593,637 330,165 160,906 623 161,529 163,923 15,465,965 7,435,790 22,901,755 27,028,835 1,086,240 - 1,086,240 1,387,560 509,890 - 509,890 537,851 4,528,692 - 4,528,692 4,689,642 917,124 2,665,622 3,582,746 901,584 7,041,946 2,665,622 9,707,568 7,516,637 3,056,883 12,000 3,068,883 3,074,759 537,940 - 537,940 537,940 18,075,125 1,881,778 19,956,903 19,956,903 53,614,598 26,603,859 80,218,457 74,093,234 1,094,072 - 1,094,072 1,041,475 648,570 93,288 741,858 130,236 294,880 153,748 448,628 432,461 2,441,804 247 2,442,051 2,051,900 14,668,150 - 14,668,150 - 94, 432, 022 28, 744, 920 123,176, 942 101, 318, 908 (13,803,840) (6,504,207) (20,308,047) (17,917,515) (366, 704) (366, 704) - 80,261,478 22,240,713 102,502,191 83,401,393 $ 102,769,389 $ 32,342,125 $ 135,111,514 $ 117,946,865 m 4 CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS JUNE 30, 1999 Schedule 13 Page 2 of 2 s Non -Current Liabilities: Certificates of participation Water Sewer TOTAL 19,078,351 Developer program obligations Utility Utility 1 9 9 9 1 9 9 8 LIABILITIES AND FUND EQUITY 166,999 - 166,999 215,166 Current Liabilities: 316,280 57,730 374,010 - Accounts and contracts payable $ 1,026,009 $ 310,306 $ 1,336,315 $ 1,293,488 Accrued salaries payable - - - - Salaries and benefits payable 25,136 5,089 30,225 60,901 Deposits 629,796 325,481 955,277 910,114 Funds held for others - 55,100 55,100 55,100 Due to other funds 2,043,622 75 2,043,697 384,463 Due to other governments - - - 5,056 Due to developers 8,160 - 8,160 8,160 Compensated absences 1,000 1,000 2,000 1,100 Certificates of participation - current 630,000 - 630,000 590,000 CVIFD building note payable - current 71,800 13,100 84,900 - Accrued interest payable 92,426 - 92,426 47,936 Total Current Liabilities 4,527,949 710,151 5,238,100 3,356,318 Non -Current Liabilities: Certificates of participation 18,499,145 24,420,868 18,499,145 19,078,351 Developer program obligations 1,093,929 - 1,093,929 2,360,155 Advances for construction 166,999 - 166,999 215,166 CVIFD building note payable 316,280 57,730 374,010 - Compensated absences payable 73,417 16,121 89,538 91,888 Advances from other funds 4,159,000 - 4,159,000 - Total Long -Term Liabilities 24,308,770 73,851 24,382,621 21,745,560 Total Liabilities 28,836,719 784,002 29,620,721 25,101,878 Fund Equity: Contributed capital 63,604,986 24,420,868 88,025,854 79,502,026 Retained earnings: Reserved: Cash flow 1,500,000 405,000 1,905,000 - Facility and equipment replacement 1,368,000 - 1,368,000 - Retained earnings 7,459,684 6,732,255 14,191,939 13,342,961 Total Fund Equity 73,932,670 31,558,123 105,490,793 92,844,987 Total Liabilities and Fund Equity $ 102,769,389 $ 32,342,125 $ 135,111,514 $ 117,946,865 85 Operating Revenues: Charges for services Permit and inspection fees Meter and installation fees Other Total Operating Revenues Operating Expenses: CITY OF CHINO HILLS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 Schedule 14 Purchased water 4,867,731 v, Water Sewer TOTAL 200,431 Utilities F� S°� �lTyo3 521,920n Utility Utility 1999, 1 9 9 8 Fo soo 1,701,102 $ 10,267,649 $ 3,694,083 $ 13,961,732 $ 12,821,996 Fn 5®'r 3,461 78,822 - 78,822 79,819 Other general and administrative 5-07 227, [ 00 1. 2,352,258 190,492 JOV /1,ZbS�q,s 190,492 328,383 11,543,040 3,020,430 5,914 (1,000,163) 5,914 7,884 F0 S-67 3,yao 10,542,877 3,694,083 14,236,960 13,238,082 Purchased water 4,867,731 v, - Salaries and benefits 806,318- 200,431 Utilities F� S°� �lTyo3 521,920n 12,462 Contractual services Fr !F# S 474,05716' 1,815,240 Depreciation "� ` ` `' �s 1,701,102 718,382 Amortization }3,o43,9z4 m F 386,126 - Repairs and maintenance , �, . A 312,807 irk55,285 Services and supplies ti �D P° 00 o ►s; 158'120,721 in 9,230 Other general and administrative 5-07 227, [ 00 1. 2,352,258 209,400 JOV /1,ZbS�q,s Total Operating Expenses Scl � iz5 11,543,040 3,020,430 Operating Income (Loss) S°oz4,4�a� $-7),-7JE.•S" (1,000,163) 673,653 Sol Nonoperating Revenues (Expenses): r,0 300 3, e, 973 Interest earnings F.950-7 4'.5-)o 8 1f 726,057 393,784 Proceeds of long-term debt - - Rents & leases 115,612 - Other revenues 1,655,074 18,133 Gain (loss) on disposal of assets ! � Soo �' 3 z [ ' z � q (175,845) - Interest expense p (1, 475, 359) Loss on investment in Water FP 5-01 1 5 ,11 i y o} Facilities Authority FP y a ` 160,951 S ,7 `Y 71Vd Total Nonoperating Revenues (Expenses ,9 684,588 411,917 c: 3"ro 3oz TSu Net Income (Loss) before Operaiinq Tran erS (315,575) 1,085,570 r y'67 /A,16� Operating transfers out F-0 !r6 7 (40,622) - Net Income (Loss) pT r3, yo33_j (356,197) 1,085,570 Add back depreciation related to contributed capital fp ,5 go 808,553 ;-159 Increase (Decrease) in Retained Earnings 452,356 Retained Earnings: 13, 342, 961 11, 606, 618 Beginning of Fiscal Year, as originally reported 8,925,711 Rcstat2;nent 981,317 Beginning of Fiscal Year, as restated` t' y fa%7 9,907,028 Residual Equity Transfers FG 5 (31,700) End of Fiscal YearSol / iz,l�o8 091' $ 10,327,684 AA1 fi94 4,867,731 1,006,749 534,382 2,289,297 2,419,484 386,126 368,092 129,951 2,561,658 14, 563, 470 (326, 510) 1,119,841 115,612 1,673,207 (175,845) (1,475,359) (160, 951) 1,096,505 769,995 (40,622) 729,373 1.470 259 4,364,873 1,009,928 544,086 2,479,473 2,348,698 609,694 118,403 2,482,170 13, 957, 325 (719, 243) 1,214,265 892,734 154,889 162,342 (1,196, 823) (150,815) 1,076,592 357,349 357,349 1 4nR A71 1,747,269 2,199, 625 1,766,020 4,417,250 13, 342, 961 11, 606, 618 979,036 1,960,353 5,396,286 15,303,314 11,606,618 (6,300) (38,000) (29,677) $ 7,137,255 $ 17,464,939 $ 13,342,961 a CITY OF CHINO HILLS COMBINING STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 Cash Flows from Operating Activities: Operating Income Adjustment to reconcile Operating Income to Net Cash: Depreciation and amortization Adjustment for prior period expenses Other revenue Changes in Assets and Liabilities: Increase) decrease in accounts receivable Increase) decrease in accrued interest receivable Increase) decrease in deposits (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 Decrease (increase) in advances to other funds Increase (decrease) in advances from other funds Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Repayment of 1996 Certificate of Participation Repayment of advances for construction Contributed capital received Contributed capital repaid Rents & leases Interest paid Purchases of property, plant and equipment Purchases of intangible assets Proceeds from sale of fixed assets Lease payments received Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Loss on investment in Water Facilities authority 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 Page 1 of 2 Water Sewer TOTALS a Utility Utility 1 9 9 9 1 9 9 8 $ (1,000,163) $ 673,653 $ (326,510) $ (719,243) 2,087,228 718,382 2,805,610 2,348,698 (344,584) - (344,584) - 1,655,074 18,133 1,673,207 (16,631) 75,873 59,242 (32,342 39,198 40,674 79,872 (47,858) 75,000 - 75,000 102,936 (94,034 (2,003,097) (2, 097,131) 13,094 (1,264,059) (1,263,) (255,676) 2,541 (587 394 - 160,950 - 160,950 14,525 37,829 4,998 42,827 (437, 574) (26,248) (4,428) (30,676) 4,537 45,163 - 45,163 99,555 1,661,226 (1,992 1,659,234 353,396 - (5,056; (5,056) (551) - 8,160 (4,523) 3,073 (1,450) 13,954 44,490 - 44,490 (51,114) 4,058,620 (1,153,000) 2,905,620 2,133,740 3,058,457 (479,347) 2,579,110 1,414,497 (6,300) (777)(15,540) 40,622) 40,6202) (2,665,622) (2,681,162; 4,159,000 4,159,000 - 4,071,138 (2,671,922) 1,399,216 (777) (590,000 (590,000) (545,000 ) (48,167; - (48,16 (51, 936) 3,554,909 558,347 4,113,256 3,683,534 (33,446) - (33,446) - 115,612 - 115,612 (322,097) - (322,097) - (1,064,571) (30,327) (1,094,898) (103,079) (14,657,850) - (14,657,850) 7,879 - 7,879 - 277,140 - 277,140 252,960 (12,760,591) 528,020 (12,232,571) 3,236,479 726,057 393,784 1,119,841 1,230,681 (160,951) - (160,951) (150,815) 565,106 393,784 958,890 1,079,866 (5,065,890) (2,229,465) (7,295,355) 5,730,065 16,758,704 7,158,804 23,917,508 18,187,443 $ 11,692,814 $ 4,929,339 $ 16,622,153 $ 23,917,508 87 CITY OF CHINO HILLS COMBINING STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 Water Sewer Utility Utility Schedule 15 Page 2 of 2 TOTALS 1999 1998 Reconciliation to the Balance Sheet: Cash and Investments $ 11,690,384 $ 4,929,339 $ 16,619,723 $ 23,914,841 Cash and Investments with Fiscal Agents 2,430 - 2,430 2,667 $ 11,692,814 $ 4,929,339 $ 16,622,153 $ 23,917,508 Schedule of Non -Cash Transactions 1) The Water and Sewer Funds have a prior period adjustment for their debt in the amount of $1,101,578 and $979,036 respectively, as a special revenue fund is currently liable under the new developer fee ordinance. 2) During 1998-99, the City purchased property from Chino Valley Independent Fire District by making a downpayment of $450,000 and issuing a promissory note for $900,000. The Water Fund will pay $388,080 and the Sewer Fund will pay $70,830 of this note. 3) The Water and Sewer Funds received capital contributions from developers in the form of capital improvements totaling $4,249,837 and $1,888,757 respectively. A corresponding addition to contributed capital has been recorded. m s 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. RM ASSETS Current assets: Cash and investments Accounts receivable, net of allowances Accrued interest receivable Advances to other funds 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 30,19N Schedule 16 Equipment Data TOTAL • Maintenance Processing 1 9 9 9 1 9 9 8 $ 1,252,448 $ 720,626 $ 1,973,074 $ 3,173,867 142 26,584 26,726 3,420 16,123 11,954 28,077 46,619 1,500,000 - 1,500,000 - 2,768,713 759,164 3,527,877 3,223,906 1,802,190 - 1,802,190 1,742,285 265,159 665,147 930,306 848,743 2,067,349 665,147 2,732,496 2,591,028 (1,724,477) (387,909) (2,112,386) (2,054,860) 342,872 277,238 620,110 536,168 $ 3,111,585 $ 1,036,402 $ 4,147,987 $ 3,760,074 $ 8,109 $ 30,202 $ 38,311 $ 71,298 1,449 - 1,449 1,983 500 - 500 500 10,058 30,202 40,260 73,781 1,909 - 1,909 1,175 1,909 - 1,909 1,175 11,967 30,202 42,169 74,956 1,953,415 667,312 2,620,727 2,499,898 1,146,203 338,888 1,485,091 1,185,220 3,099,618 1,006,200 4,105,818 3,685,118 $ 3,111,585 $ 1,036,402 $ 4,147,987 $ 3,760,074 .o 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, 1999 Operating Revenues: Charges for services Other Total Operating Revenues Operating Expenses: Salaries and benefits Contractual services Depreciation Repairs and maintenance Services and supplies Other general and administrative Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Interest income Sale of property Miscellaneous Gain (loss) on disposal of assets Total Nonoperating Revenues (Expenses) Net Income (Loss) Before Operating Transfers Operating transfers out Net Income (Loss) Add back depreciation related to contributed capital Increase (decrease) in retained earnings Retained Earnings: Beginning of Fiscal Year End of Fiscal Year Schedule 17 Equipment Data TOTAL Maintenance Processing 1 9 9 9 1 9 9 8 $ 383,285 $ 252,301 $ 635,586 $ 678,115 352 - 352 10,089 383,637 252,301 635,938 688,204 51,814 - 51,814 25,691 3,179 99,116 102,295 105,445 95,025 82,851 177,876 166,065 78,547 7,107 85,654 99,895 69,648 73,522 143,170 99,356 7,663 268 7,931 404 305,876 262,864 568,740 496,856 77,761 (10,563) 67,198 191,348 128,200 36,957 165,157 163,067 - - - 10,118 (1,500) - (1,500) - - - -(1,656) 126,700 36,957 163,657 171,529 204,461 26,394 230,855 362,877 (71,740) - (71,740) (3,718) 132,721 26,394 159,115 359,159 95,404 45,352 140,756 142,457 228,125 71,746 299,871 501,616 918,078 267,142 1,185,220 683,604 $ 1,146,203 $ 338,888 $ 1,485,091 $ 1,185,220 91 CITY OF CHINO HILLS COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 Schedule 18 a Cash Flows from Noncapital Financing Activities: Operating transfers out Equipment Data TOTALS (3,718) Maintenance Processing 1 9 9 9 1 9 9 8 Cash Flows from Operating Activities: Non -Capital Financing Activities (71,740) (71,740) Operating Income $ 77,761 $ (10,563) $ 67,198 $ 191,348 Adjustment to reconcile Operating Income to Net Cash: Purchases of property, plant and equipment (9,184) Depreciation and amortization 95,025 82,851 177,876 166,065 Miscellaneous expenses (1,500) - (1,500) - Changes in Assets and Liabilities: 178,800 - Cash received from sale of fixed assets (Increase) decrease in accounts receivable 3,278 (26,584) (23,306) (12,463) (Increase) decrease in interest receivable 21,453 (2,911) 18,542 (3,772) (Increase) decrease in advance to other funds (1,500,000) - (1,500,000) - Increase (decrease) in accounts and contracts payable (27,599) (5,388) (32,987) 25,637 Increase (decrease) in salary and benefits payable (534) 163,057 (534) (638) Increase (decrease) in compensated absences 734 - 734 (2,561) Total Adjustments (1,409,143) 47,968 (1,361,175) 172,268 Net Cash Provided (Used) by Operating Activities (1,331,382) 37,405 (1,293,977) 363,616 Cash Flows from Noncapital Financing Activities: Operating transfers out (71,740) - (71,740) (3,718) Net Cash Provided (Used) by Non -Capital Financing Activities (71,740) (71,740) (3,718) Cash Flows from Capital and Related Financing Activities: Purchases of property, plant and equipment (9,184) (169,849) (179,033) (22,847) Gain (loss) on disposal of fixed assets - - (1,656) Contributed capital received 178,800 178,800 - Cash received from sale of fixed assets - - 10,118 Net Cash Provided (Used) by Capital and Related Financing Activities (9,184) 8,951 (233) (14,385) Cash Flows from Investing Activities: Interest on investments 128,200 36,957 165,157 163,057 Net Cash Provided (Used) by Investing Activities 128,200 36,957 165,157 163,057 Net Increase (Decrease) in Cash and Investments (1,284,106) 83,313 (1,200,793) 508,570 Cash and Investments at Beginning of Year 2,536,554 637,313 3,173,867 2,665,297 Cash and Investments at End of Year $ 1,252,448 $ 720,626 $ 1,973,074 $ 3,173,867 Schedule of Non -Cash Transactions 1) The Equipment Maintenance Fund and the Data Processing Fund received contributed assets from other funds in the net amounts of $50,721 and $47,942 respectively. 92 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: Regional, #1 Rolling Ridge, #2 Los Ranchos #4 The Oaks #5 Rincon Village, #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 Agency Fund - To account for receipts and expenditures of money for the agency fund in which funds are held by the City as an agent for others. 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 Advances from other funds Funds held for others Total Liabilities CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 1999 Special Assessment Districts AD #1994 AD #1995 Schedule 19 Page 1 of 3 Community Facilities Districts #1 Rolling Regional Ridge $ 974,650 $ 1,147, 893 $ 2,647 $ 1,450,340 713,900 2,737,081 - 975,197 11,792 13,183 35 17,171 24,504 30,811 - 19,268 $ 1,724,846 $ 3,928,968 $ 2,682 $ 2,461,976 $ 72 $ 272 $ 1,724,774 3,928,696 2,682 $ 1,724,846 $ 3,928,968 $ 2,682 0 2,461,976 $ 2,461,976 a Schedule 19 Page 2 of 3 IM Community Facilities Districts #2 #5 #6 #9 Los #4 Rincon Carbon #8 Rincon Ranchos The Oaks Village Canyon Butterfield Village $ 3,585,333 $ 5,369,932 $ 2,097,810 $ 552,113 $ 60,393 $ 770,782 91 296,884 215,451 - 307,193 1,840,136 44,449 69,070 23,240 7,009 15,987 11,839 33,097 13,805 916,724 3,835 10,042 29,561 $ 3,662,970 $ 5,749,691 $ 3,253,225 $ 562,957 $ 393,615 $ 2,652,318 $ $ - $ - $ - $ - $ 4,572 - 1,647,716 - - 1,438,584 - - - 3,662,970 5,749,691 166,925 562,957 393,615 2,647,746 $ 3,662,970 $ 5,749,691 $ 3,253,225 $ 562,957 $ 393,615 $ 2,652,318 IM CITY OF CHINO HILLS COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 1999 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 Accounts payable Accrued assessments payable Deposits Due to other funds Due to Chino Basin Municipal Water District Advances from other funds Funds held for others Total Liabilities Schedule 19 Page 3 of 3 TOTAL S General Agency Fund 1999 1998 $ 11,926,745 $ 27,938,638 $ 31,345,564 - 7,085,933 5,908,739 213,775 266,990 1,081,647 420,727 - 3,700 $ 11,926,745 $ 36,319,993 $ 37,945,720 $ 874,490 $ 879,406 $ 1,912,295 - - 16,757 4,064,104 4,064,104 3,884,138 - 1,647,716 98,388 6,988,151 6,988,151 7,125,472 - 1,438,584 - - 21,302,032 24,908,670 $ 11, 926, 745 $ 36, 319, 993 $ 37, 945, 720 KI a CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 SPECIAL ASSESSMENT DISTRICT #1994 Assets: Cash and investments Cash and investments with fiscal agents Accrued interest receivable Special assessments receivable Total Assets Liabilities: Accounts payable Accrued assessments payable Funds held for others Total Liabilities SPECIAL ASSESSMENT DISTRICT #1995 Assets: Cash and investments Cash and investments with fiscal agent Accrued interest receivable Special assessments receivable Total Assets Liabilities: Accounts payable Accrued assessments payable Funds held for others Total Liabilities REGIONAL COMMUNITY FACILITIES DISTRICT Assets: Cash and investments Accrued interest receivable Total Assets Liabilities: Funds held for others Balance July 1, 1998 Additions Deletions Schedule 20 Page 1 of 4 Balance June 30, 1999 $ 697,203 $ 2,162, 711 $ 1,885,264 $ 974,650 916,543 2,578,722 2,781,365 713,900 11,046 11,792 11,046 11,792 186,444 24,504 186,444 24,504 $ 1,811,236 $ 4,777,729 $ 4,864,119 $ 1,724,846 $ 450 $ 18,687 $ 19,065 $ 72 9,764 - 9,764 - 1,801,022 4,759,042 4,835,290 1,724,774 $ 1,811,236 $ 4,777,729 $ 4,864,119 $ 1,724,846 $ 858,396 $ 4,608,697 3,196,898 6,862,691 17,997 13,183 153,533 30,811 $ 4,226,824 $ 11,515,382 $ 5,191 $ 33,708 6,993 - 4,214,640 11, 481, 674 $ 4,226,824 $ 11,515,382 $ 4,319,200 $ 1,147,893 7,322,508 2,737,081 17,997 13,183 153,533 30,811 $ 11,813,238 $ 3,928,968 $ 38,627 $ 272 6,993 - 11,767,618 3,928,696 $ 11,813,238 $ 3,928,968 $ 2,522 $ 412,396 $ 412,271 $ 2,647 $ 2,560 $ 412,431 $ 412,309 $ 2,682 $ 2,560 $ 412,431 $ 412,309 $ 2,682 97 • CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 Schedule 20 Page 2 of 4 r1 Balance Balance COMMUNITY FACILITIES July 1, 1998 Additions Deletions June 30, 1999 DISTRICT #1 Rolling Ridge Assets: Cash and investments $ 1,244,330 $ 1,189,642 $ 983,632 $ 1,450,340 Cash and investments with fiscal agents 975,327 862,663 862,793 975,197 Accrued interest receivable 16,377 17,171 16,377 17,171 Special assesments receivable 17,979 19,268 17,979 19,268 Total Assets $ 2,254,013 $ 2,088,744 $ 1,880,781 $ 2,461,976 Liabilities: Accounts payable $ 2,680 $ 8,050 $ 10,730 $ - Funds held for others 2,251,333 2,080,694 1,870,051 2,461,976 Total Liabilities $ 2,254,013 $ 2,088,744 $ 1,880,781 $ 2,461,976 COMMUNITY FACILITIES DISTRICT #2 Los Ranchos Assets: Cash and investments $ 2,382,564 $ 2,120,123 $ 917,354 $ 3,585,333 Cash and investments with fiscal agents 26 497,294 497,229 91 Accrued interest receivable 33,247 44,449 33,247 44,449 Special assessments receivable 22,775 33,097 22,775 33,097 Total Assets $ 2,438,612 $ 2,694,963 $ 1,470,605 $ 3,662,970 Liabilities: Accounts payable $ - $ 10,315 $ 10,315 $ - Funds held for others 2,438,612 2,684,648 1,460,290 3,662,970 Total Liabilities $ 2,438,612 $ 2,694,963 $ 1,470,605 $ 3,662,970 COMMUNITY FACILITIES DISTRICT #4 The Oaks Assets: Cash and investments $ 4,627,928 $ 1,026,356 $ 284,352 $ 5,369,932 Cash and investments with fiscal agent 296,923 243,640 243,679 296,884 Accrued interest receivable 67,982 69,070 67,982 69,070 Special assessments receivable 6,529 13,805 6,529 13,805 Total Assets $ 4,999,362 $ 1,352,871 $ 602,542 $ 5,749,691 Liabilities: Accounts payable $ 2,693 $ 3,799 $ 6,492 $ - Funds held for others 4,996,669 1,349,072 596,050 5,749,691 Total Liabilities $ 4,999,362 $ 1,352,871 $ 602,542 $ 5,749,691 CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 Schedule 20 Page 3 of 4 a Liabilities: Accounts payable $ 2,680 $ 4,553 7,233 $ - Duetootherfunds - 2,184,716 537,000 1,64.7,716 Due to Chino Basin Municipal Water District - - - Advances from other funds - 1,438,584 - 1,438,584 Funds held for others 1,908,954 1,718,861 3,460,890 166,925 Total Liabilities $ 1,911,634 $ 5,346,714 $ 4,005,123 $ 3,253,225 COMMUNITY FACILITIES DIS RIOT #6 Carbon Canvo Assets: Cash and investments Balance 405,930 $ Balance COMMUNITY FACILITIES July 1, 1998 Additions Deletions June 30, 1999 DISTRICT #5 Rincon Village 5,837 7,009 Assets: 7,009 Special assessments receivable Cash and investments $ 1,664,982 $ 4,222,858 $ 3,790,030 $ 2,097,810 Cash and investments with fiscal agents 215,479 183,892 183,920 215,451 Accrued interest receivable 23,807 23,240 23,807 23,240 Special assessments receivable 7,366 916,724 7,366 916,724 Total Assets $ 1,911,634 $ 5,346,714 $ 4,005,123 $ 3,253,225 Liabilities: Accounts payable $ 2,680 $ 4,553 7,233 $ - Duetootherfunds - 2,184,716 537,000 1,64.7,716 Due to Chino Basin Municipal Water District - - - Advances from other funds - 1,438,584 - 1,438,584 Funds held for others 1,908,954 1,718,861 3,460,890 166,925 Total Liabilities $ 1,911,634 $ 5,346,714 $ 4,005,123 $ 3,253,225 COMMUNITY FACILITIES DIS RIOT #6 Carbon Canvo Assets: Cash and investments $ 405,930 $ 177,257 $ 31,074 $ 552,113 Accrued interest receivable 5,837 7,009 5,837 7,009 Special assessments receivable 1,583 3,835 1,583 3,835 Total Assets $ 413,350 $ 188,101 $ 38,494 $ 562,957 Liabilities: Funds held for others $ 413,350 $ 188,101 $ 38,494 $ 562,957 COMMUNITY FACILITIES DISTRICT #8 Butterfield Assets: Cash and investments $ 1,004,819 $ 625,540 $ 1,569,966 $ 60,393 Cash and investments with fiscal agents 307,233 248,700 248,740 307,193 Accrued interest receivable 15,496 15,987 15,496 15,987 Special assessments receivable 8,837 10,042 8,837 10,042 Total Assets $ 1,336,385 $ 900,269 $ 1,843,039 $ 393,615 Liabilities: Accounts payable $ 2,680 $ 3,781 $ 6,461 $ - Funds held for others 1,333,705 896,488 1,836,578 393,615 Total Liabilities $ 1,336,385 $ 900,269 $ 1,843,039 $ 393,615 CITY OF CHINO HILLS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 COMMUNITY FACILITIES DISTRICT #9 Rincon Village Assets: Cash and investments Cash and investments with fiscal agents Accrued interest receivable Special assessments receivable Due from other funds Total Assets Liabilities: Accounts payable Due to other funds Funds held for others Total Liabilities GENERAL AGENCY FUND Assets: Cash and investments Liabilities: Accounts payable Deposits Due to other funds Due to CBMWD Total Liabilities TOTALS - ALL AGENCY FUNDS Assets: 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 CBMWD Advances from other funds Funds held for others Total Liabilities Balance Deletions Schedule 20 Page 4 of 4 Balance $ 5,521,468 $ 11, 522, 343 $ 16, 273, 029 $ 770,782 310 - 8,149,298 635,388 6,309,472 3,699,668 1,840,136 75,163 1,438,584 11,837 1,438,584 75,161 47, 605, 900 11,839 15,681 $ 72,753,373 29,561 15,681 29,561 3,700 - 3,700 - $ 5,616,322 $ 19,713,039 $ 22,677,043 $ 2,652,318 $ 64,797 $ 1,284,788 $ 1,345,013 $ 4,572 3,700 - 3,700 - 5,547,825 18,428,251 21,328,330 2,647,746 $ 5,616,322 $ 19,713,039 $ 22,677,043 $ 2,652,318 $ 12, 935, 422 $ 6,069,397 $ 7,078,074 $ 11, 926, 745 $ 1,831,124 $ 5,700,559 $ 6,657,193 $ 874,490 3,884,138 12,737,176 12,557,210 4,064,104 94,688 - 94,688 - 7,125,472 3,699,668 3,836,989 6,988,151 $ 12,935,422 $ 22,137,403 $ 23,146,080 $ 11,926,745 $ 31, 345, 564 5,908,739 266,990 420,727 3,700 $ 37,945,720 $ 1,912,295 16,757 3,884,138 98,388 7,125,472 24,908,670 $ 37,945,720 100 $ 34,137,320 $ 37,544,246 19, 626, 900 18, 449, 706 213,773 266,988 1,081,647 420,727 - 3,700 $ 55,059,640 $ 56,685,367 $ 27, 938, 638 7,085,933 213,775 1,081,647 $ 36,319,993 $ 7,068,240 $ 8,101,129 $ 879,406 - 16,757 - 12,737,176 12,557,210 4,064,104 2,184,716 635,388 1,647,716 3,699,668 3,836,989 6,988,151 1,438,584 - 1,438,584 43, 999, 262 47, 605, 900 21, 302, 032 $ 71,127,646 $ 72,753,373 $ 36,319,993 a • ACCOUNT GROUPS General Fixed Assets Account Group - To account for the cost of fixed assets of the City that are used in the performance of general governmental functions and that are not accounted for in proprietary funds. General Long -Term Debt Account Group - To account for the unmatured long-term indebtedness of the City. 101 CITY OF CHINO HILLS COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS JUNE 30, 1999 Schedule 21 Is 1999 1998 General Fixed Assets: Land $ 12,464,469 $ 12,370,989 Buildings 5,041,194 2,242,782 Equipment 716,848 685,410 Total General Fixed Assets $ 18,222,511 $ 15,299,181 Investment In General Fixed Assets by Souces: General fund $ 3,750,613 $ 2,916,054 Special revenue funds 380,311 359,069 Capital project funds 14,091,587 12,024,058 Total Investment in General Fixed Assets $ 18,222,511 $ 15,299,181 102 Function and Activity General Government: City Clerk City Manager Community Development Community Services Planning Building & Safety 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, 1999 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 - 4,875 4,875 - 72,233 72,233 - 240,323 240,323 4,303,665 12,452 4,316,117 4,303,665 417,243 4,720,908 - 73,727 73,727 73,727 73,727 - 16,730 16,730 737, 529 23,590 761,119 737,529 40,320 777,849 12,464,469 - 185,558 12,650,027 $12,464,469 $ 5,041,194 $ 716,848 $18,222,511 103 Function and Activity General Government: City Clerk City Manager Community Development Community Services Planning Buidling & Safety 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, 1999 Balance July 1, 1998 Additions Schedule 23 Balance Deductions June 30, 1999 $ 43,954 $ - $ - $ 43,954 7,417 - 7,417 14,439 - - 14,439 12,186 - 12,186 9,364 - 9,364 - 4,875 4,875 72,233 - 72,233 230,446 9,877 240,323 2,248,588 2,067,529 4,316,117 2,638,627 2,082,281 4,720,908 70,177 3,550 73,727 70,177 3,550 73,727 16,730 - 16,730 23,590 737,529 761,119 40,320 737,529 777,849 12,550,057 99,970 12,650,027 $ 15,299,181 $ 2,923,330 $ $ 18,222,511 104 4 CITY OF CHINO HILLS COMPARATIVE SCHEDULES OF GENERAL LONG-TERM DEBT JUNE 30, 1999 Amount Available and to be Provided for Payment of General Long -Term Debt: Amount available in debt service funds Amount to be provided Total Amounts Available and to be Provided for the Payment of General Long -Term Debt General Long -Term Debt Payable: Compensated absences Advances from developers Installment obligation due to Enterprise Fund Development fee program obligations Claims payable Capital lease obligations Certificates of Participation Traffic signal reimbursement CVIFD note payable Equestrian center lease Total General Long -Term Debt Payable 105 Schedule 24 $ 258,395 $ 256,154 53,840,993 30,363,489 $ 54,099,388 $ 30,619,643 $ 259,548 $ 226,547 910,446 967,146 - 901,584 51,410,590 26,670,999 614,044 736,853 53,647 86,618 410,000 800,000 - 229,896 441,090 - $ 54,099,388 $ 30,619,643 s THIS PAGE INTENTIONALLY LEFT BLANK E STATISTICAL SECTION 107 Develop- ment Fees 4,757 7,250 1,617 9,018 7,594 11,781 14,150 9,159 General Governmental Expenditures by Function (1) Last Eight Fiscal Years (2) (In Thousands Dollars) General Community Culture Fiscal Govern- Public Public Develop- and Year ment Safety Works ment Leisure Other (3) 1991-92 1,923 City of Chino Hills 6 11 0 General Governmental Revenues by Source (1) 1992-93 2,635 3,282 Last Eight Fiscal Years (2) 1,072 0 0 1993-94 (In Thousands Dollars) 2,847 8,282 1,824 642 Special Licenses Use of Inter - Fiscal 10,005 Assess- and Money and Govern - Year Taxes ments Permits Property mental 1991-92 252 7,197 19 3,655 1,642 1992-93 4,507 6,653 977 3,764 1,332 1993-94 4,957 6,266 993 2,519 5,500 1994-95 4,913 5,454 1,349 3,097 2,145 1995-96 5,031 5,151 1,492 2,796 1,992 1996-97 5,227 5,437 1,952 2,973 1,993 1997-98 5,982 5,216 2,981 3,269 1,709 1998-99 7,293 5,217 2,795 2,762 1,857 16,706 Contri- 1992-93 7,790 butions Charges Fines Fiscal from for and Other 45,491 Year Developers Services Forfeitures Revenue (3) Total 1991-92 0 2 6 2,676 20,206 1992-93 3,212 397 82 634 28,808 1993-94 426 3,005 192 1,308 26,783 1994-95 647 3,525 178 5,045 35,371 1995-96 669 4,233 154 734 29,846 1996-97 718 6,985 150 1,982 39,198 1997-98 1,037 7,474 145 2,162 44,125 1998-99 5,622 8,226 257 2,133 45,321 (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. Develop- ment Fees 4,757 7,250 1,617 9,018 7,594 11,781 14,150 9,159 General Governmental Expenditures by Function (1) Last Eight Fiscal Years (2) (In Thousands Dollars) General Community Culture Fiscal Govern- Public Public Develop- and Year ment Safety Works ment Leisure Other (3) 1991-92 1,923 73 6 11 0 7,008 1992-93 2,635 3,282 13,569 1,072 0 0 1993-94 2,360 2,847 8,282 1,824 642 2,906 1994-95 2,020 3,006 10,005 3,463 1,326 1,725 1995-96 3,514 3,131 10,476 1,769 868 2,102 1996-97 3,388 3,404 10,680 2,466 848 8,308 1997-98 3,410 3,402 12,341 3,946 1,065 5,949 1998-99 4,026 3,622 12,298 3,784 1,404 5,224 Fiscal Capital Debt Year Outlay Service Total 1991-92 7,685 0 16,706 1992-93 7,790 7,693 34,343 1993-94 19,680 4,265 45,491 1994-95 8,233 10,344 40,436 1995-96 6,427 5,489 33,776 1996-97 4,238 6,066 39,398 1997-98 4,919 8,573 43,605 1998-99 13,108 8,465 51,931 (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. 108 • City of Chino Hills Secured Property Tax Levies And Collections (1) Last Eight Fiscal Years (2) (1) Source: San Bernardino County Assessor. (2) The City was incorporated on December 1, 1991. 109 • Total Total Percent of Fiscal Current Current Levy Year Levy Collections Collected 1991-92 N/A N/A N/A 1992-93 $ 777,704 $ 686,550 88.3% 1993-94 1,231,289 1,086,243 88.2% 1994-95 1,240,010 1,114,018 89.8% 1995-96 1,250,014 1,154,794 92.4% 1996-97 1,299,249 1,187,694 91.4% 1997-98 1,379,405 1,267,811 91.9% 1998-99 1,473,928 1,360,530 92.3% (1) Source : San Bernardino County Auditor/Controller-Recorder. 67,986 (2) The City was incorporated on December 1, 1991. 1995-96 3,039,526 (1) Source: San Bernardino County Assessor. (2) The City was incorporated on December 1, 1991. 109 • Assessed And Estimated Actual Values Of Taxable Property (1) Last Eight 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 1998-99 3,913,460 43,466 80,014 4,036,940 (1) Source: San Bernardino County Assessor. (2) The City was incorporated on December 1, 1991. 109 • Property Tax Rates - All Direct and Overlapping Governments (1) City of Chino Hills Property Value, Construction and Bank Deposits Last Eight Fiscal Years (1) Basin General (In Thousand Dollars) Municipal Fiscal Basic Property Value (2) Water Fiscal Tax Levy District District Total Year Commercial Residential Exemptions Total N/A 1991-92 N/A N/A N/A N/A 1.0450 1992-93 136,050 2,693,863 62,416 2,892,329 1.0339 1993-94 117,796 2,924,827 65,156 3,107,778 1.0377 1994-95 118,278 2,834,832 67,986 3,021,096 1.0425 1995-96 204,341 2,868,306 70,618 3,143,265 1.0579 1996-97 204,009 3,004,364 71,667 3,280,040 1.0089 1997-98 227,893 3,200,627 75,256 3,503,776 1.0089 1998-99 265,128 3,691,798 80,014 4,036,940 from the San Bernardino County Auditor/Controller-Recorder 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 1998-99 N/A N/A 1,872 146,441 217,543 (1) The City was incorporated on December 1, 1991. (2) Source : San Bernardino County Assessors' Office. (3) Source : City of Chino Hills building and safety department. (4) Source : The Findley Report. (5) Information related to a six-month period of the fiscal year. Property Tax Rates - All Direct and Overlapping Governments (1) 110 • Last Eight Fiscal Years (2) Chino Chino Basin General Unified Municipal Fiscal Basic School Water Year Tax Levy District District Total 1991-92 N/A N/A N/A N/A 1992-93 $ 1.0000 $ 0.0333 $ 0.0117 $ 1.0450 1993-94 1.0000 0.0250 0.0089 1.0339 1994-95 1.0000 0.0288 0.0089 1.0377 1995-96 1.0000 0.0336 0.0089 1.0425 1996-97 1.0000 0.0490 0.0089 1.0579 1997-98 1.0000 0.0000 0.0089 1.0089 1998-99 1.0000 0.0000 0.0089 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. 110 • City of Chino Hills Computation of Direct and Overlapping Bonded Debt General Obligation Bonds Fiscal Year 1998-99 Assessed Valuation : $3,717,223,561 Direct and Overlapping Bonded Debt: Applicable San Bernardino County General Fund Obligations 6.13500% San Bernardino County Pension Obligations 6.13500% Metropolitan Water District 0.4360% Chaffey Community College District Certificates of Participation 14.4710% Chino Unified School District 51.4230% Chino Unified School District Certificates of Participation 51.4230% City of Chino Hllls Certificates of Participation 100.0000% City of Chino Hills 1915 Act Bonds 100.0000% West Valley Vector Control District Certificates of Participation 41.2020% San Bernardino Community Facilities District #1 100.0000% San Bernardino Community Facilities District #2 100.0000% San Bernardino Community Facilities District #4 100.0000% San Bernardino Community Facilities District #5 100.0000% San Bernardino Community Facilities District #8 100.0000% San Bernardino Community Facilities District #9 100.0000% San Bernardino County Assessment District #86-1 R 100.0000% TOTAL DIRECT AND OVERLAPPING BONDED DEBT Debt aiinicao 70,821,213 23,171,250 2,520,233 1,446,376 77,135 51, 784,121 415,000 23,500,000 379,863 8,255,000 4,630,000 2,535,000 1,780,000 2,625,000 14,860,000 9n ,dn nnn $ 229,340,191 (1) (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease obligations. Direct Debt ( $ 415,000) Total Direct and Overlapping Tax and Assessment Debt Total Debt 111 0.01% 2.19% 6.17% • City of Chino Hills Principal Taxpayers (1) June 30, 1999 (In Thousands Dollars) (1) Source: San Bernardino County Assessor. 112 1998 Percent Assessed of Total Taxpayer Type of Business Valuation Valuation K/B Retain Properties, L.P. Shopping Center 23,250 0.58% ERP Operating Limited Partnership Developer 17,889 0.44% RKG Holdings Incorporated Developer 15,000 0.37% LBK, L.P. Developer 14,233 0.35% LDC Cougar L.L.C. Developer 13,543 0.34% CTF-8 Village Oaks Developer 12,857 0.32% Evans Withycombe Residential, L.P. Developer 12,674 0.31% Costco Wholesale Corporation Shopping Center 12,647 0.31% McDermont Ranch, L.L.C. Developer 11,098 0.27% Standard Pacific Corporation Developer 10,456 0.26% 143,647 3.56% Total Assessed Valuation for FY 1998-99: $ 4,036,939,791 (1) Source: San Bernardino County Assessor. 112 City of Chino Hills Miscellaneous Statistics (1) June 30, 1999 Date of Incorporation December 1, 1991 Form of Government Council -Manager Number of full time employees 105 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 January 1, 1999 58,086 Facilities and services Miles of streets 220 Culture and Recreation: Parks 34 Park acreage 235 Sewerage System: Miles of sanitary sewers 245 Miles of storm sewers 190 Number of service connections 17,424 Average daily treatment in gallons 5.8 Million Gallon Water System: Miles of water mains 285 Number of service connections 18,378 Average daily consumption in gallons 12.93 Million Gallon Total Storage 31 Million Gallon Facilities and services not included in the primary government Cable Television System: Miles of service 219.5 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. 113 THIS PAGE INTENTIONALLY LEFT BLANK 114