ACFR FY 1997-1998City of Poway, California
Comprehensive Annual Financial Report
Lester J. Berglund
Water Treatment Plant
For the Year Ended June 30, 1998
MAR 9 = M"
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CITY OF POWAY
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR:THE YEAR ENDED NNE 30, 1998
Prepared by:
Department of Administrative Services
Peggy Stewart
Director
Andrew White
Finance Manager
r i
CITY OF POWAY
Comprehensive Annual Financial Report .
For the Year Ended June 1998
I
1 iii
Independent Auditors' Report ......................................................... ...............................
3
TABLE OF CONTENTS
Combined Balance Sheet - All Fund Types and Account Groups ............................
PAGE
Combined Statement of Revenues, Expenditures, and
IIVTRODUCTORY SECTION
Title............................................................................................. ...............................
i.
Tableof Contents ............................................................................ ...............................
iii
PrincipalOfficials ........................................................................... ...............................
vi
OrganizationChart .......................................................................... ...............................
vii
Letterof Transmittal ....................................................................... ...............................
ix
1
GFOA Certificate of Achievement for Excellence
in Financial, Reporting ................................................................ ...............................
xxii
CSMFO Certificate of Award for Outstanding Financial Rep ort in
xxiii
andSimilar Trust Funds ......................................................... ...............................
14
FINANCIAL SECTION
18
I
1 iii
Independent Auditors' Report ......................................................... ...............................
3
Combined Financial Statements ( "Liftable General Purpose. Financial Statements "):
Combined Balance Sheet - All Fund Types and Account Groups ............................
4
Combined Statement of Revenues, Expenditures, and
Changes inTund Balances - All Governmental Fund Types
and'Expendable Trust Funds .............................................. :...................................
8
Combined Statement of Revenues Expenditures, and
Changes in Fund Balances- Budget and Actual - General,
Special, Revenue and Debt,Service Funds ............................. ...............................
10
Combined Statement of Revenues, Expenses, and Changes
in Retained Earnings - All Proprietary Fund Types
and Sirriilar Trust Funds
12
Combined Statement of Cash Flows - All Proprietary Fund Types
andSimilar Trust Funds ......................................................... ...............................
14
Notes to'Financial^ Statements ...........................:................... ...............................
18
Combining:and Individual`Fundland Account Group ,Financial
Statements and Schedules (Supplementary Information):
General Fund:
Comparative Balance' Sheets ................................................. ...............................
52
Statement of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual ................................... ...............................
53
I
1 iii
CITY OF'POWAY
Comprehensive Annual Financial Report
For the Year Ended June 30, 1998
TABLE OF CONTENTS
FINANCIAL SECTION (Continued)
Special Revenue Funds:
Combining Balance Sheet ..................................................... ...............................
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances ............... .
................................ ...............................
Statement of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual:
Fire Protection
.............................................................. ...............................
GasTax Fund ............................................................... ...............................
Street Improvement Fund ............................................ ...............................
DrainageFund .............................................................. ...............................
Maintenance District 83 -1 Fund
................................... ...............................
Miscellaneous and Grants Fund
................................... ...............................
Community Development Block Grant Fund ............... ...............................
Transportation Development Act Fund .......................................................
............ ...............................
Proposition.A Fund ....................................................... ...............................
Royal Mobilehome Park Administration Fund .......... ... „.._.,,,.,. „.... „.,...,.,,,,
Low and Moderate Income Housing Fund ..................................................
Debt Service Funds
PAGE
58
W
65
66
67
68
69
70
71
72
73.
74
75
Combining Balance Sheet ..................................................... ...............................
78
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances ............... ... .............................. ...............................
79
Statement of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual:
Cityof Poway Fund ...................................................... ...............................
80
City of Poway Redevelopment Agency Fund ............... ...............................
81
Capital Projects Funds:
Combining Balance Sheet ..................................................... ...............................
84
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances ................................................ ...............................
86
Enterprise Funds:
Combining Balance Sheet ..................................................... ...............................
90
Combining. Statement of Revenues, Expenses, and
Changes in Retained Earnings ........................................... ...............................
93
Combining Statement of Cash Flows .................................... ...............................
94
Internal Service Fund:
Comparative Balance Sheets ....... .......................... :..............................................
100
Comparative Statement of Revenues, Expenses, and
Changes in Retained Earnings .......................................... ...............................
101
Comparative Statement of Cash Flows ............................. ...............................
102
F \•I
STATISTICAL SECTION (Unaudited)
General Governmental Expenditures by Function -
i
Last Ten,Fiscal Years ................................................................. ...............................
122
1
CITY OF POWAY
124
Comprehensive Annual Financial Report
124
For the Year Ended June 30, 1998
126
Assessed and Estimated Actual Value of Taxable Property -
TABLE OF CONTENTS
128
FINANCIAL. SECTION (Continued)
PAGE
Fiduciary Funds:
130
Combining, Balance Sheet ..................................................... ...............................
106
Nonexpendable Trust Funds:
132
1
Combining Statementof Revenues, Expenses, and
Changes in Fund Balances .............i.............................. ...............................
108
Combining Statement of Cash Flows ........................... ...............................
109
Expendable Trust Funds:
135
Statement.of Revenues,. Expenditures, and Changes in Balances...........
110
Agency Funds:
137
Combining Statement of Changes in Assets and Liabilities .............................
111
Account,Groups:
138
Comparative Schedule of General Fixed Assets by Source ... ...............................
115
Schedule of General Fixed Assets by Function and Activity .... ......... .........
116
Schedule of Changes in General Fixed Assets
by Function and Activity ................................................... ...............................
118
�.
Comparative Schedule of General Long -Term Debt ............. ...............................
119
STATISTICAL SECTION (Unaudited)
I v
General Governmental Expenditures by Function -
Last Ten,Fiscal Years ................................................................. ...............................
122
1
General Governmental Revenues by Source - Last Ten Fiscal Years ............................
124
General Governmental Tax Revenues by Source - Last Ten Fiscal Years ....................
124
Property Tax Levies and Collections - Last Ten Fiscal Years ........ ...............................
126
Assessed and Estimated Actual Value of Taxable Property -
L ast : Ten Fiscal Years ............................................................. ...............................
128
Property Tax Rates - Direct and Overlapping Governments -
LastTen Fiscal' Yeazs ................................................................. ...............................
130
Ten Largest Taxpayers... * * *..................
................
131
Special Assessment Collections - Last Ten Fiscal Years ..........
Computation of Legal Debt Margin ...................... ......... ......... ......................
132
1
Ratio of Net General Bonded'Debt to Assessed Value and
Net Bonded Debt Per Capita - Last Ten Fiscal Years ............... ...............................
134
Ratio of Debt Service for General Bonded Debt to
Total General Expenditures -.Last Ten Fiscal Years .................. ...............................
135
Direct` -and Overlapping Bonded Debt ..................
136
Demographic Statistics - LastTen.Fiscal Years...
137
Property Value, Construction Activity and Bank Deposits -
LastTen Fiscal Years ................................................................. ...............................
138
Miscellaneous Statistics :................................................................. ...............................
140
I v
CITY OF POWAY
City Council
Mayor Don Higginson
Council: Mickey Cafagna
Bob Emery
Jay Goldby
Betty Rexford
Appointed Officials
City Manager James L. Bowersox
City Clerk/City Treasurer Marjorie K. Wahlsten
City Attorney Stephen M. Eckis
Administrative Personnel
Director of Administrative Services
Peggy A. Stewart
Director of Community Services
Robert L. Thomas
Director of Engineering. Services
Mark S. Weston
Director of Planning Services
Reba Wright - Quastler
Director of Public Services
James R. Williams
Director of Redevelopment Services
Warren H. Shafer
Director of Safety Services
Mark A: Sanchez
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>• r M M M M11111111111111
CITY OF POWAY
ORGANIZATION CHART
Redevelopment
and Housing Services
r
w
Citizens
M 111111111111 M M
City Council
Planning Commission
Redevelopment Agency
City Manager/
Executive Director
City Clerk/
Treasurer
M
City
Attorney
Council
Committees
Administrative Community I Engineering Planning Public Safety
Services Services Services Services J ,Services :Services.
1. Personnel 1. Leisure'Services 1. Capital Projects 1. Current•Planning 1. Fleet Maintenance 1. Fire Suppression
2. Customer 2. Lake Operations 2. Land Development 2. Advance Planning 2. Water Supply 2. Fire Prevention
Services 3. Aquatics Center 3. Engineering' 3. Building Inspection 3. Sewer Pumping 8 3. Paramedics
3. Finance 4. Performing Arts Inspection Disposal 4. Law Enforcement
4. Data Processing Center 4. Traffic Engineering 4. Water Distribution
5. Support 5. Old Poway Park 5. Scripps -Poway 5. Wastewater Collection
Services Parkway Project 6. Maintenance Control
6. Risk Mgmt. Management 7. Street Maintenance
7. Capital Mgmt• 8. Drainage Maintenance
9. Facilities Maintenance
10. Trails 8 Open Space
11. Park & Landscape
Maintenance
12. Special District
Administration
[This page intentionally left blank]
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November 30, 1998
CITY OF POWAY
Honorable Mayor and Members_of the City Council
P.oway,.California
This Comprehensive Annual Financial Report (CAFR) is prepared in order to provide you and the
community with a comprehensive report of the financial transactions of the City of Poway as of and
for the year ended June 30, 1998. Responsibility for the accuracy, completeness, and fairness of the
report rests with the City.
We believe that the data, as presented, is,accurate in all material, aspects; that it is presented in a
manner designed to fairly set forth the financial position and results of operations of the City as
measured by the financial activity of its various fund types, and that all disclosures necessary to
enable the reader to gain the maximum understanding of the City's financial affairs have been
included.
The significant accounting policies of the City are described in the Notes to Financial Statements.
These accounting policies have been'approved by the City's independent certified public accountants
and are in conformance with the recommendations of the American Institute of Certified Public
Accountants and the Governmental Accounting Standards Board.
This report is prepared following the guidelines set forth by the Government Finance Officers
Association of the United States and' Canada and the California Society Municipal Finance
Officers.
In accordance with the above mentioned guidelines, the report,is divided into three sections:
1. Introductory Section including this letter of transmittal, the City's organizational
chart,:and the list of principal officers.
2. Financial Section - including the independent reportTrom theCity's certified public
' accountants, the combined, financial statements, notes to financial statements and
supplemental, statements.
3. Statistical Section - including other pertinent unaudited financial tables and
Information that presents historical trends, demographics and miscellaneous data
about the City.
City Hall Located at Civic Center Drive
Mailing Address: P.O. Box 789, Poway, California.92074 -0789 • (619) 748 -6600, 695 -1400
-, »:: FAX (619) 748 -1455
DON HIGGINSON, 'Mayor
JAY GOLDBY, Deputy Mayor
MICKEY CAFAGNA, Councilmember
'
BOB EMERY, Councilmember
BETTY REXFORD, Councilmember
November 30, 1998
CITY OF POWAY
Honorable Mayor and Members_of the City Council
P.oway,.California
This Comprehensive Annual Financial Report (CAFR) is prepared in order to provide you and the
community with a comprehensive report of the financial transactions of the City of Poway as of and
for the year ended June 30, 1998. Responsibility for the accuracy, completeness, and fairness of the
report rests with the City.
We believe that the data, as presented, is,accurate in all material, aspects; that it is presented in a
manner designed to fairly set forth the financial position and results of operations of the City as
measured by the financial activity of its various fund types, and that all disclosures necessary to
enable the reader to gain the maximum understanding of the City's financial affairs have been
included.
The significant accounting policies of the City are described in the Notes to Financial Statements.
These accounting policies have been'approved by the City's independent certified public accountants
and are in conformance with the recommendations of the American Institute of Certified Public
Accountants and the Governmental Accounting Standards Board.
This report is prepared following the guidelines set forth by the Government Finance Officers
Association of the United States and' Canada and the California Society Municipal Finance
Officers.
In accordance with the above mentioned guidelines, the report,is divided into three sections:
1. Introductory Section including this letter of transmittal, the City's organizational
chart,:and the list of principal officers.
2. Financial Section - including the independent reportTrom theCity's certified public
' accountants, the combined, financial statements, notes to financial statements and
supplemental, statements.
3. Statistical Section - including other pertinent unaudited financial tables and
Information that presents historical trends, demographics and miscellaneous data
about the City.
City Hall Located at Civic Center Drive
Mailing Address: P.O. Box 789, Poway, California.92074 -0789 • (619) 748 -6600, 695 -1400
-, »:: FAX (619) 748 -1455
Annual Financial Report
November 30, 1998
Page 2
The Reporting Entity and Its Services
Included within the City's financial statements is the financial information of the Poway
Redevelopment Agency and the Poway Public Financing Authority. Although the entities are
legally separate from the City, their financial operations are closely related thereto. Their activities
are included with the activities of the City because the City Council serves as the Board of Directors
and is able to impose its will on both entities. There is, therefore, a financial benefit/burden
relationship.. This financial presentation is in accordance with GASB Cod., Section 2100.
The City of Poway was incorporated December 1, 1980 under the general laws of the State of
California. The City operates under a Council- Manager form of government and provides the
following services: public safety (police and fire), community services, engineering services,
planning services,, public works, general administrative services, and capital improvements.
The Poway Redevelopment Agency was established April 26, 1983, pursuant to the, State of
California Health and Safety Codes, Section 33000 entitled "Community Redevelopment. Law:" Its
purpose is to eliminate blighted areas by encouraging the development of residential, commercial,
industrial, recreational and public facilities.
The Poway Public Financing Authority is a joint powers authority organized pursuant to the State of
California Government Code, Section 6500.. The authority exists under a Joint Exercise of Power
Agreement dated October 8, 1991, between the City of Poway and the Poway Redevelopment
Agency. Its purpose is to assist in financing and refinancing projects for the benefit of the City and
the Agency.
Economic Condition and Outlook
Poway, from Indian words meaning "where the waters meet," first gained prominence in the 1800s
as an important link in Southern California's stagecoach network. Now the City, a thriving, civic -
spirited community, is located.in the coastal foothills of San Diego County just twenty miles north of
downtown San Diego and three miles east of Interstate 15.
The City of Poway flourishes with a family- oriented population of 47,098 and covers 39 square
miles with elevations ranging from 450 to 2,250 feet above sea level. Poway incorporated December
1, 1980 as a full- service general law city governed by a council of five members -at -large serving
staggered four -year terms. In 1990 the City had its first mayor directly elected by the voters. The
City absorbed existing special districts as of February 1, 1981. Water, sewage disposal, fire,
paramedic, parks and recreation, planning and building; street maintenance, and redevelopment
services are provided by the City; sheriff services are contracted through the County of San Diego.
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Annual Financial Report
November.30, 1998
Page 3
' Poway has;been.popularly dubbed the "City in the Country." Within its boundaries are 144 acres of
developed parks:and 60 miles of riding and hiking trails. Home lotsare often larger than in most
' other areas, with a'median value,of $257,000. Poway is predominately single- family community,
and the Poway Unified School- District - -a top performer in the state and nation - -is a source of great
pride, as is the fact that the City has the lowest crime rate in the county. As part of San Diego
' County, Poway has a relatively dry climate with frost -free temperatures over 300 days per year, and
rainfall of about 11 inches which.falls principally between October and April. The average daytime
temperature in Poway is about 74 °F. Poway has set aside over 65 percent of total land use as open
space,. nearly 3,000 acres:of dedicated public open space, and.144 acres of developed parkland
featuring community parks and centers. The expected population at buildout is approximately
55,000.
Poway's local economy is based primarily on automobile and transportation related sales, general
merchandising, industrial park wholesale consumer products,: and retail sales,of food•and gas.
Having the second highest median household income of $63,234 in San Diego County has helped
fuel the dramatic increase in sales tax revenues over the past two years. An increased volume in
automobile sales has led the way; and with the continued development of the business parks, there is
great potential to expand other sectors such as business and industry and building and construction.
The economy in San Diego County and Poway has continued.to expand and grow at a very strong
pace. Activity in South Poway Industrial Park continued in both land sales and building
construction. We estimate that in 1998 about 100 acres of finished property will be sold and that the
building inventory will go from approximately 3 million square feet to 4.5 million. All indications
are for the market to remain strong in 1999. Additional property is now being finished so that it can
be placed on the market= in•1999 to meet the expected demand. The South Poway Industrial Park
continues to be in a strong position and a benefactor of the limited supply of industrial property in
the region.
Major Initiatives
For the Year: The Scripps Poway Parkway extension from Stowe'Drive to SR -67 was completed in
October 1997. This project is the largest capital improvement project undertaken by the City of
Poway. The original budget was $35.7 million. It was completed underbudgetand three months
' ahead of schedule. The final project cost was $35.4 million. The roadway included'3.7 miles of six -
and four -lane roadway and included more than 3 million cubic yards of grading. The project
completes the critical transportation link between I -15 and SR -67.
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Annual Financial Report
November 30, 1998
Page 4
The Water Treatment Plant Upgrade was completed in the fall of 1997. The total capital budget for
the water plant upgrades is $10.7 million. The project included new filters upgrading all chemical
systems, and installing new state -of -the -art computer ,controlled'electronics. The City will complete
the final step of replacing the floating cover on the clearwell in the spring of 1999.
During fiscal year 1997 -98, the City completed $3.9 million of street maintenance including overlay
of arterials and sealing and repairing residential streets throughout the City.
The City completed the construction of the new Poway Library and Sheriff's Substation. The total
project cost was $8.4 million which resulted in the completion of the two buildings, Rattlesnake
Creek improvements, Poway Road frontage:improvements, transit station, and Bowron,Road street
improvements. The projects were completed on schedule and within budget. The Sheriff's
Substation was dedicated in March 1998 and the Poway Library in June 1998. The new library
provides expanded opportunities to the community ranging from children's reading, programs to
Internet access. The library's circulation has increased over 100% since moving into the new
facility.
During 1998, the City received $225,888 from a Community Development Block Grant which was
applied towards a housing service program, public street pedestrian ramps, the housing rehabilitation
program, and renovations to City facilities for compliance with the Americans with Disabilities Act
of 1990.
For the Future The outlook for fiscal year 1998 -99 is anotheryear of major capital improvements
constructed by the City and the completion of several of the projects listed above. The City is
constructing the Gregg: Street Reclaimed Water Reservoir which will be completed in December
1998 at a cost of $1.95 million. This construction project includes a new pre- stressed concrete tank
for potable water and the conversion of the existing Gregg Street potable reservoir to a reclaimed
water reservoir. This reservoir will act as the terminus of reclaimed water pumped from the City of
San Diego to be used throughout the South Poway Business Park in Poway. The completion of this
reservoir will allow the implementation of delivery of reclaimed water which has been a 12 -year goal
for the City of Poway.
In early 1999, the City will be completing the Espola Road Widening project located: in the vicinity
of Bridlewood and Old Coach. This will include the widening of Espola Road to its full width
improvements of four lanes for approximately 5,000 feet.
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' Annual Financial Report
November30, 1998
Page 5
The,City will be reviewingrits street maintenance program and looking toward continual
improvement of the arterial and residential roadways. The City will be master- planning the
' improvements for Pomerado Road between Poway Road anti Ted Williams Parkway which will lead
to the ultimate reconstruction and full width improvements of Pomerado Road. The total cost is $6.f
million for this segment of roadway with a potential $3 million proj'ect'in 1999.
We expect to have completed Park View Terrace, the City's first- ' affordable: multifamily
development•of 92 units and have ;it occupied in 1998. We also awarded a,Development and
Disposition Agreement (DDA) in 1998, hoping that in 1999 will come ; the receipt of a tax credit
allocation so we can start construction on a 102 -unit senior affordable rental development. The
I development has already been $l.,million in federal funds through the HOME program
administered by County of San Diego. In other housing programs, over $3 million of
improvements will have been made to Poway Royal Mobile Home Park by the year 2000. The
improvements include drainage, gas =and water lines, and road repairs.
Accounting System and Budgetary Control
The City's accounting records for'governmental fund types, the expendable trust fund, and the
agency funds are maintained on the modified accrual basis of accounting. The modifications to the
accrual basis of accounting are described in the Notes to Financial Statements. The accounting
records for proprietary funds (watevand sewer) and the nonexpendable =trust fund are maintained on
the full accrual basis of accounting. Accordingly, revenues are recognized in the accounting period
earned, and expenses are recognized;in the period incurred.
In developing and evaluating the City's accounting system, consideration, is given to the adequacy of
internal accounting controls. Internal accounting controls are designed to provide reasonable, but
not absolute, assurance. regarding (1) the safeguarding of assets against loss from unauthorized use or
disposition and (2) the-reliability of financial records for preparing financial statements and
maintaining accountability of assets. The concept.of reasonable assurance recognizes that the cost of
a control should riot exceed the benefits likely to be derived. The evaluation 'of this cost benefit
relationship requires estimates and judgments by management.
All internal control.evaluations'occur within the above framework. We believe that the City's
internal accounting controls adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
Financial, transactions are continuously updated in the City's computerized financial reporting
system and`all managers have'instant access to the current budget information for which they are
responsible. These financial reports compare the budgete& figures to the recorded transactions and
xiii
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Annual Financial Report
November 30, 1998
Page 6
compute the resulting variance. These reports form.the basis of the budgetary control system which
allows for the timely review and continuous assessment of the financial position and results of
operations.
Additionally, an encumbrance system is employed as an extension of the formal budget integration.
,
The estimated purchase order amounts are encumbered prior to releasing the -order to a, vendor.
Purchase orders which would result in an overrun of balances at the functional level are normally not
released until budget transfers are approved by the City Manager or additional appropriations are
authorized, by the City Council. Open encumbrances are reported as reservations of fund balances at
year end. The level of budgetary control (the level on which expenditures may not legally exceed
appropriations) is the individual fund level.
Other financial, reports available for management and legislative review include monthly reports of
investments and capitabimprovement projects. At the end,of six months, a midyear report is
distributed which assesses the City's financial position and results of operations and projects activity
for the remainder of the fiscal year. The interim<reports form the basis for the budget projections for
the upcoming fiscal year's budget. A budget review committee consisting of five council - designated
citizens annually reviews the City's financial' operations and budget controls. During fiscal year '
1996 -97, the City for the first time adopted a two -year budget covering fiscal years,1997 798 and
1998 -99. In addition to the traditional midyear review process, the City also completed an extensive
review process at the end of fiscal year 1997 -98 and:made minor adjustments to the fiscal year j
1998 -99 budget.
Financial Highlights of 1997 -1998 1 1
The City continued an aggressive capital improvement program administering 174 new or
continuing projects designed "to expand and maintain the City's infrastructure. These projects were ,
financed using redevelopment funds, the reserves':in the General Fund, and special revenue funds.
The City's investment policy is reviewed annually for changes in state, regulations and is approved by
City Council. The investment portfolio balance decreased by $1,349,565, or 1.88 %, from the
beginning of the year to the end of the year. Major changes.in the City's investment portfolio include '
a $7,114,000 decrease in the San Diego County Investment Pool, a $5,762,000 increase in the State
Local Agency Investment Pool, a $6,931,000 increase in medium -term corporate notes and asset -
backed securities, a:$850,000 decrease in federal agency issues, a $5,493,000 decrease in U.S.
treasury securities, and a $586,000 decrease in.certificates of deposit.
In 1995, the City entered into a joint agreement with the agencies participating in the San Diego
County Investment Pool providing for a,withdrawal schedule for complete divestment from the Pool
by December 1997. The;last of the City's funds which were.invested in the Pool were withdrawn on
December 17, 1997. Additionally, during fiscal year 1996 -97 the City entered into an investment
xiv I
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Annual, Financial.Report
November 30, 1997
Page 7
management agreement with Metropolitan West Securities, Inc. Metropolitan West Securities, Inc
actively monitors the portfolio and advises the City of various investment strategies that assist the
' City meeting its stated investment goals of (1) safety of principal, (2) liquidity, and (3) return on
investment.
M Financial Statement Analysis
General Governmental Functions
Governmental. fund types include General, Special-Re'venue,Debt Service, Capital Projects (City of
Poway, Poway Redevelopment Agency; ,arid Comrriunity.'Facility District), and Fiduciary Fund Type
Expendable Trust.
Revenues
' For the 1997 -98. fiscal year, revenues for governmental fund types and'the expendable trust fund
totaled $53,182,553 as compared.to $43,372,508 for the prior fiscal year - -an increase of $9,810,045.
The'amount of.revenue from each revenue source and the changes over the previous year are shown
in.the: following tabulation:
1
1
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Annual Financial Report
November 30, 1998
Page 8
A pie chart depicting the above information is shown.below.
City of Poway
Revenue Composite
FY 1997 -1998
(43.2 %)
(0.5 %)
(16.6 %)
(3.
(0.9 %)
15.5 %)
s Taxes o Licenses & Permits a Intergovermental o. Developer. Fees
■ Charges for Services s Fines & Forfeitures o Interest 8 Rentals Li Other
Revenues from taxes increased by 9.9% in 1998. The'majority of the increase was attributable to an
increase in property taxes of $1,190,000 and sales tax of $753,340.. Revenues from
intergovernmental sources increased 76.3 %($3,824,577) in 1998. Of this amount, $1,398,165was
due to a SB -300 grant from the state for Scripps Poway Parkway, and $2,294 was due to an
advance of Proposition A funds for road work. A major revenue increase occurred in charges for
services.($1,757,839) primarily due.to a $1 revenue increase in building_ inspection and plan
check and engineering fees, and parkland dedication fees ($308,980).
Because of the continued increase in development activity, revenues generated from developer fees
during fiscal year 1997 -98 increased $600,840 over the prior year. The interest and rentals revenues
category increased by $1,503,472 over the prior year. A large portion of the increase -- approximately
$1.3 million - -can be related to the implementation of GASB -31 during fiscal year 1997 -98. The
majority of the remaining increase is related to the complete withdrawal from the San Diego County
Investment Pool. The Pool had only been yielding between 3.6% and 3.8% over the past two fiscal
years. Therefore, as the City was able to reinvest those funds, its overall yield improved. The Other
revenue category increased by $52,703. The majority of the increase is attributable to the repayment
of affordable housing improvement loans.
xvi
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Annual Financial Report
Novemb ' er'130, 1
Page 9
Expenditures
Changes in the,leyel of for major functions of the. City over the previous year are
shown in the following tabulation:
Function
FY 07 98 Amount
P erc t t,f T
cea s9.Ffbm 1997.
r
General Government
$7,758,604
11.4
(64,139)
Public Safety
9,333,832
13.7
449,394
PubU Works
6,035,135
8.9
1,373,416
Community Services
4,921,563
7.2
(146,545)
Capital Expenditures
20,385,782
mo
(3,167,313)
Debt Service:
Principal
6
9.4
204,076
------ ---------------------------------------------------------------------------
Interest
13,135,890
19.3
888,081
----------------------------------------------------
Bond Refunding
22,413
- - - --
0.0
--------- ------------------------
(145,320)
Tax It icrenient
Reimbursement I
76 18
0.1
76,118
Total
1 $68,054,286
100.0
City of Poway
Expenditure Composite
-- ]�997-1998
(8.9%) (13.7%)
(7
(3O.O%)
(
(0.1%)
):3%)
(9.4%)
m General Government
E:i Public Safety
m Public Works
o Community Services
o Capital Expenditures
m Principal
a Interest
m3ax Increment Reimbur
Xvi 1.
Annual Financial Report
November 30, 1998
Page 10
Total expenditures decreased by $532,232. Capital expenditures decreased by $3,167,313 with the
capital projects funds decreasing by $2,185,837.
The cost for the operating:departments increased, 6. 1 % over the prior year. This net increase of
$1,612,126 mainly'due,to increases in public safety and public works in FY 1997 -98. The
increase in public works expenditures was, related to street maintenance activities.
General FundSurp[us
Amount
(In Thousands)
Year EndEd
lone 30
1;998
1997
ChangE
Revenues
$20,551
$17;594
16.8
Expenditures
18,87,5
1,7.,698
6.7
Excess (Deficiency) of Revenues
Over Expenditures
1,676
(104)
1,•711.5
Other Financing Sources (Uses), Net
766
348
120.1
Increase (Decrease) in Fund Balance
$ 2,442
$ 7244
900.8
At the end of fiscal year 1997 -98, the fund balance in.the;General Fund was $27,759;728 compared
to the balance at June 30, 1997 of $25,317,888, or an increase of $2,441,840. Included in the
operating, transfers out are..principal paydowns of the 1992. and 1995 certificatesof participation
amounting to $695,000. The fund balances remain adequate in the major operating funds. There
were increases in the general, special revenue and expendable trust funds, and decreases in the debt
service and capital project funds.
Fiscal year 1997 -98 continued to see the completion of'various ongoing capital projects. As
referenced above, there was a $3,167 ;313:expenditure decrease in capital expenditures in FY 1997-
1998.
The general fixed assets of the governmentye those fixed assets used in the performance ofgeneral
Y ..
governmental functions and exclude the'fixed assets accounted for in the enterprise funds. The
general fixed assets totaled $99 ;646;864 as� -end. Depreciation of general fixed assets is not
recognized in the accounting system. The net book'value of fixed assets presented for the water and
sewer funds includes depreciation, which isin accordance with generally accepted accounting
principles. The stated values for the assets for the enterprise funds represent the original cost of the
assets which; is,considerably -less than the present -day values.
xvi l'i
Annual Financial Report
November 30, 1997
Page 11
i Enterprise Operations
i The City's water utility had a net increase in retained earnings of $126,711, which included interest
income of $569;366, net operating loss, of $590,789, and tax revenue of $510,795. Total operating
revenue was $2,062,232 less than the prior year. This was due to a decrease in the volume of water
sold resulting'in a decrease in charges for'services of $1,200,797, a decrease of $174,017 for
i connection fees; and a decrease of $687,918 in other revenue. Fiscal year 1996 -97 contained
approximately $640,000 of one -time revenues for insurance settlements and a refund from the San
' Diego County Water Authority.
The sewer utility had a net increase in retained earnings of $33,838, which included net operating
income of.$196,955 and interest.income of $1,185,224. Total operating revenue was $150,879 more
than last year.
' One financial test to verify an enterprise fund's ability to continue operating (paying,its own bills) is
a comparison of liquid or readily available assets to.liabilities which must be paid from these,assets.
This comparison - -also known as the acid test ratio - -was 3.7 for the water fund (a ratio of 1.0 or
i greater is usually deemed an acceptable level of liquidity for an enterprise fund). The sewer fund's
acid test ratio.is.about 39.5, indicating a very liquid position for this fund.
The data used to calculate water and sewer rates do not include all of the factors present in the
financial statements. Primarily such items asidepreciation and debt service that affect the financial
statements are not included in the rate calculation, and it would be misleading to infer that the rates
that,are established to offset operating costs also are sufficient to offset the total expenses of these
funds.
' Fiduciary Operations
The City has made available to its employees a deferred' comperisation which is
administered by two major plan administrators. City employees can contribute 25 percent of their
salaries up to $8,000 per year. 'The balance in the fund at the end of the year was, $8
i The South Powayand Parkway Business Center Community Facilities District, and the High Valley
Road funds account for debt service payments which are funded.through property tax assessments
that are forwarded to the fiscal agent - trustee for payment of bonds.
11
i xix
Annual Financial. Report
November 30, 1998
Page 12
Cash Management
Cash was invested primarily in the Certificates of Deposits with savings and loan institutions and
banks, the State of California's, Local Agency Investment'Fund, U. S. Government Securities and
medium -term corporate notes. The average yield on maturing investments during,fiscal year 1997-
98 was 5.8% as compared with 5.6% in the prior year. Investment interest revenue on the City's
general operating reserves was $3,937 - -an increase of $176,902 from the previous year. This
was the result of an increase in the general interest rate level of the market in 1997 -98, as well as an,
increase in the portfolio's average month- end'balance as compared to FY 1997 -98.
Debt Administration
At June 30, 1998, the City and the Poway Redevelopment Agency had general long -term debt
amounting to $226.1 million which is detailed in the Notes to Financial Statements. This includes
$115.7 million of tax allocationbonds, $55:8 million of certificates of participation, $44,280
contracts payable to the Cemetery District, $25.6 million, in advances from other funds, notes
payable of $28.6 million, and a $368,813 obligation for a capital lease.
The Water Fund has included in long -term debt $3;544,605 of general obligation refunding bonds
and $3,119,813 of revenue bond indebtedness.
Risk Management
The City of Poway is a member of the California Joint Powers Insurance Authority, a consortium of
approximately 77 California cities. The Authority's governing boa d,consists of one member from
each participating city and is responsible for the selection of management as well as budgeting and
finance. Insurance activities are financed by charges to member cities, and - no long -tern debt has
been incurred. Actual annual premiums are determined using a retrospective method.
At June 30, 1998, the City self - insured for each loss to the extent of $20,000. Losses between
$20,000 and $50,000,000 are shared by the participant cities. Because of the °low deductible
amounts of the self-insurance program, the City does not have reserves or a sinking fund set up for
its unpaid claims and judgments. They are expende&as they occur, and the City intends to pay all of
its unpaid claims and judgments from available financial resources.
M4
Annual'Financial Report
November 30, 1998
Page 13
GFOA Certificate of Achievement, for
Excellence in Financial Reporting
' The Government Finance Officers Association of the United States and Canada (GFOA) has
awarde&a'Ceitificate of Achievement for Excellence in Financial Reporting to the City of Poway,
California, for, its comprehensive annual financial report for the fiscal year ended June 30, 1997. In
order to be awarded.a Certificate of Achievement for Excellence'in Financial Reporting, a
government must publish an easily readable and efficiently organized comprehensive annual
' financial -report whose contents conform to program standards. Such reports must satisfy both
generally'accepted accounting principles and applicable legal requirements. A Certificate of
Achievement is'valid for a period of one year only. We believe that our current report continues to
conform to •the. Certificate of Achievement program requirements, and we are submitting it to GFOA
to determine its eligibility for the certificate.
CSMFO Certificate of Award for
Outstanding Financial Reporting
The Califomia<Society of Municipal Finance Officers ( CSMFO) presented the City of Poway with a
Certificate of Award for Outstanding Financial Reporting for the fiscal year ended June 30, 1997.
' This award is designed to recognize cities which demonstrate superior financial reporting. The
report must meet requirements outlined in the CSMFO Awards Checklist, satisfying generally
accepted accounting principles'in all material respects, and including certain statistical information.
The Certificate of Award is valid.for a'period of one year only. We believe that our current report
continues to conform to the Certificate of Award program requirements, and we are submitting it to
the CSMFO to determine its eligibility for the certificate.
Independent Audit
' The Government Code of the,State of California requires general law cities such as,Pow.ay to be
audited annually by independent certified public accountants selected by the City Council. This
requirement has been met and the auditors' independent report is included in this report.
Acknowledgments
' Preparation of the City's Comprehensive Annual Financial Report is an undertaking of the
Administrative Services Department. Special credit is due to Andrew White, Finance Manager;
Al Kohn, Senior Accountant; Tro Badillo and Rick Munoz, Accountants; and the'staff in the Finance
Division. Their year-long hard work and dedication have made this report possible.
1.
xxi
Annual Financial Report
November 30, 1998
Page 14
We should also like to thank the City Council -for their interest and support in planning and
conducting the financial operations of the City in a responsible and progressive manner.
Respectfully submitted,
1 �I , ' �t t�l ' x
, James . Bowersox
City ager
c \data \wpfiIes\fi nance \cafr\cafr+rpt
':a
Peggy
Director of Administrative Services
Xxii
I
F
i
1
1
IT
i I�IE45i�76
/c
W .�
g° President
comn Y
Culp -ap
Executive Director
xxiii
Certificate of
Achievement
for Excellence
in Financial
Reporting
'
Presented to
i
1
1
IT
i I�IE45i�76
/c
W .�
g° President
comn Y
Culp -ap
Executive Director
xxiii
City of Poway,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1997
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.
i
1
1
IT
i I�IE45i�76
/c
W .�
g° President
comn Y
Culp -ap
Executive Director
xxiii
Cali Socieli
�l.unicipal jinance
Certificate of Award
� of
OV, cers
Outstanding Financial Reporting 1996 -97
Presented to the
X
x•
City of Poway
This certificate is issued in recognition of meeting professional standards and criteria in reporting
which reflect a high level of quality in the annual financial statements
and in the underlying accounting system from which flee reports were prepared.
February 23, 1998
Chair, Professional & Technical Stan srds Committee
Dedicated to Excellence in Municipal Financial Management
I
1
FINANCIAL. SECTION
1
1
- 1201,DOVE STREET, SUITE 680
1
M oreland
��aaocrafe6>
NEWPORT BEACH, CALIFORNIA 92660
(949 221 -0025
CERTIFIED PUBUC ACCOUNTANTS
570 RANCHEROS DRIVE, SUITE 260
'
' MARCOS, CA 92069
(760) 752 -3390
October 21, 1998
The Honorable City Council of
the City of Poway, California,
Independent Auditors' Report
' We have audited the accompanying general purpose financial statements of the City of Poway,
Califomia as of and for the year ended June 30, 1998, as listed in the table of contents. These general
purpose financial statements are the responsibility of the 'City of Poway management. Our
I 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 Poway as of June 30, 1998, and the results of its
' operations and cash flows of its proprietary fund types for the year then ended ,in conformity with
generally;k&epted accounting principles.
In accordance.with Government Auditing Standards we have also issued our report date&October 22,
1998, .on our consideration of the City of Poway internal controls over financial reporting and our tests
of its compliance with certain provisions of laws, regulations, contracts, and igrants.
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 Poway. 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.
3 i
1
Proprietary
Fiduciary
Account Groups
'
Fund'.Types
Internal
Fund Type
Trust and
General
Fixed
General
Long -Term
Totals
(Memorandum Only)
Enterprise
Service
Agency
Assets
Debt
1998
1997
'
$ 20;924,727
$ 2,880,757
$ 6,244,850
$ 70,919,385
$ 86,664,301
78,461
1,738,979
6,446,939
2,182,577
7,829
4,509,844
7,174
2,978,741
25,552
1
1,196,556
'
367,095
7,095
147
32
910,081
1,736,994
1,200
1,800
214,587
261,9.66
t
621,253
438,346
15,938
15,938
698,390
807,710
840,576'
'
12,326,834
40,434,477
32,721,145
-
208,477
208;477
228;281
2,074,938
2,366,651
'
'
1,432,965
1,532,965
1,505,333
1,132,962
6,079,354
20,532,555
25,619,492
6,729
6,729
8,423
13,378
13,378
13,378
$ 99,646,864
133,288,255
125,600,255
33,641,391
$ 9,381,741
9,381,741
17,884,948
216,745,997
216,745;997
208,798,579
$ 72,568,430
$ 2,888,586
$'16,938,061
$99,646,864
$ 226,127,738
$ 508,091,499
$ 515,335;769
(Continued)
5
CITY OF POWAY
Combined Balance Sheet - All Fund Types and Account Groups (Continued) '
June 30, 1998
Governmental Fund Types '
Liabilities. Equity, and Other Credits
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds (Note 14)
Deposits
Due to bondholders
Deferred revenue (Note 5)
Payable from restricted assets:
Bonds payable within one year
(Note 8)
Accrued liabilities
Deferred compensation payable
(Note 11)
Advances from other funds
(Notes 8 and 14)
Contract payable (Note, 8)
Notes payable (Note 8)
Obligations under capital
leases (Note 8)
Bonds payable (Note 8)
Certificates of participation (Note 8)
Total Liabilities
Equity and Other Credits:
Contributed capital, net
Investment in general fixed assets
Retained earnings:
Reserved (Note 13)
Designated (Note 13)
Unreserved
Fund Balances:
Reserved (Note 13)
Unreserved:
Designated (Note 13)
Undesignated (deficit)
Total Equity and
Other Credits
General Revenue Service
$ 1,287,858 $ 918,067
939,657 44,301 $ 151
85,569
67,487
20,374
P roje c t s
�.
Project s
$ 839,465
25,265
129,018 '
23,946
964,425 1
1,033,847 8,941,743
307,228
2,295,002 2,102,158 8;941;894 '2,289;347 ,
17,676,885 13,721,386
9,369,103 2,823,186 '
10,082,843 7,280;820
3,341,747
12,638 30,866 ,
9,953,945
27,759,728 24,343,953 9,381,741 12;807;997
Total Liabilities, Equity
and Other Credits $ 30;054,730 $ 26,446,111 $ .18;323,635 $ 15;097,344
See Accompanying Notes to Financial Statements.
6
1
1
1
Proprietary Fiduciary Account.Groups
Fund Types Fund Type General General Totals
Internal Trust and Fixed Long -Term (Memorandum Only)
Enterprise Service Agency Assets Debt 1998 1997
$ 1,325,283
135,928
$ 67,897 $ 78,685
13,612
$ 4,517 ;255 $ 11,107,495
2;264,131
9,222,131
500,000
915,212
4,502,147
5,407
154,189
6,164,418
9,200,437 81,509 16,0.67,094
226,127,738 267,105,179 274,462,972
9,088 9,088,666 7,564,003
$ 99,646,864 99,646,864 92,881,459
1,713;415 2 4,510 4;031,557
137,184 9,858 147,042
52,429,328 52,429,328 52,980,265
879,495 44,470,055 66,975,554
247 17,407,414 13,163,364
(8,775) 13,286,917 3,276,595
63,367 2,807,077 .870,967 99,646,864 240,986,320 240,872,797
$°72,568 $ 2,888 $ 16,938,061 $ 99,646,864 $ 226,127,738 $ 508,091,499 $ 515,335,769
7
1,158,914
1,095,016
214,587
261,966
2,355,564
1,488,426
9,222;131
10,449,179
984,799
1,757,368
500;000
485,000
915;212
1,054,840
6,875,974
$ 25,649,512
40,434,477
32,721,145
44,280
49,687
50,288
28,570,133
28,570,133
26,455,971
368,813
.523,002'
607
115,685,000
121,849
123,547,745
55;810;000
55,810,000
56,505;000
226,127,738 267,105,179 274,462,972
9,088 9,088,666 7,564,003
$ 99,646,864 99,646,864 92,881,459
1,713;415 2 4,510 4;031,557
137,184 9,858 147,042
52,429,328 52,429,328 52,980,265
879,495 44,470,055 66,975,554
247 17,407,414 13,163,364
(8,775) 13,286,917 3,276,595
63,367 2,807,077 .870,967 99,646,864 240,986,320 240,872,797
$°72,568 $ 2,888 $ 16,938,061 $ 99,646,864 $ 226,127,738 $ 508,091,499 $ 515,335,769
7
'
CITY OF POWAY
Combined Statement of Revenues,: Expenditures, and Changes in
Fund Balances - All Governmental Fund Types and Expendable Trust Funds
'
For the Year Ended June 30, 1998
'
Governmental Fund Types
Special
Debt
Capital
General
Revenue
Service
Projects
'
Revenues:
Taxes (Note 3)
$ 10,133,119
$ 508,195
$ 12,379,735
Licenses and permits
257,818
'
Intergovernmental
2;087;767
5
$ 1,532,165
Charges for services
6,253,837
2,151,320
2,179,560
Fines and forfeitures
86273
,
Interest and rentals
1,359,029
4,869,344
955,358
1,048,780
Developer fees
304,110
1,399,562
Other
372,938
75,883
8,470
'
Total Revenues
20,550,781
13,126,550
13,335,093
6,168,537
Expenditures:
,
Current:
General government
4,119,614
211,042
3,427,948
Public safety
9,333,832
'
Public works
1,368,133
4,667,002
Community services
2,761,964
2,159,599
Capital expenditures
1
6,461,819
12,668,063
Debt service:
,
Principal
32,979
6,351,970
Interest and fiscal charges
2,826
13,133,064
Bond,issuance costs
22,413
Tax increment reimbursement
76,118
Total Expenditures
18,875,248
13
19,583
16,096,011
'
Excess (Deficiency) of
Revenues Over
1,675,533
(6,248,472)
(9,927,474)
'
Expenditures
(372,912)
Other Financing Sources.(Uses):
Proceeds'froni long -term debt
2;307,457
3,558,074
,
Operating transfers in
1,496,570
9,443,792
5,853,916
2,085,426
Operating transfers out
(730,263)
(4,799,012)
(10;401961)
(2,152;562)
Total Other Financing
'
Sources (Uses)
766,307
4,644,780
(2,241,588)
3,490,938
Excess (Deficiency) of
Revenues and Other
'
Sources Over
Expenditures and
Other Uses
2,441;840
4,271,868
(8;490;060)
(6
'
Fund Balances, Beginning
_
(Restated Note 21)
25,317,888
.20,072,085
17,871,801
19,244,533
,
Fund Balances, Ending
$ 27,75028
$ 24,343,953
$ 9,381,741
$ 12,807,997
See Accompanying Notes to Financial Statements.
'
8
Fiduciary
Fund Type
Totals
Expendable
(Memorandum Only)
'
Trust
1998
1997
$ 23,021,049 $
20,941,439
257,818
281,610
8,837,630
5,013,053
10,584,717
8,826,878
'
86,273
71,477
$ 911
8,233,422
6,729,950
1,703,672
.1,102,832
'
681
457,972
405,269
1,592
53,182,553
43,372,508
7,758,604
7,822,743
9,333,832
8,884,438
6,035,135
4,661,719
4,921,563
5,068,108
'
20,385,782
23,553,095
6
6,180,873
13,135,890
12,247,809
'
22,413
167,733
76,118
68,054,286
68,586,518
'
1,592
(14 ;871,733)
(25,214,010)
5,865,531
9,355,529
18,879,704
10,070,386
(18;084,798)
(9,189,685)
6,660,437
10,236;230
1,592
(8,211,296)
(14,977,780)
'
8;856
82,5.15,163
97,492,943
$. 10;448
$ 74,303,867 $
82,515,163
9
CITY OF POWAY
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
General, Special Revenue and Debt Service Funds
For the Year Ended'Ame 30, 1998
Revenues:
Taxes (Note 3)
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Interest and rentals
Developer fees
Other
Total Revenues
Expenditures:
Current:
General government
Public safety
Public works
Community services
Capital expenditures
Debt service:
Principal
Interest and fiscal charges
Bond issuance costs
Tax increment reimbursement
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses):
Proceeds from long -term debt
Operating transfers in
Operating transfers out
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues
and Other Sources Over
Expenditures and Other Uses
Fund Balances, Beginning (Restated Note 21)
Fund Balances,, Ending
General Fund
Vanance
Favorable
Budget Actual (Unfavorable)
$ 9,082,070
285,250
1,898,498
5677,536
70,000
1,024,210
$ 10,133,119
257,818
2,087767
6,253,837
86,273
1,359,029
$ 1,051,049
(27,432)
189,269
576,301
16,273
334,819
268,918 372,938 104,020
18,306,482 20,550,781 2,244,299
4,237,003
4,119,614
117,389
9,532,127
9,333,832
198,295
1,454,603
1,368,133
86,470
2,947,469
2,761,964
185,505
1,697,234
1,255,900
441,334
32,979
32,979
2,826
2,826
19,904,241 18, 875,248 1,028,993
(1,597,759) 1,675;533 3,273,292
777,230 1,496,570 719,340
(690,000) (730;263) (40,263)
87,230 766,307 679,077
(1,510,529) 2,441,840 3,952,369 '
25,317,888 25,317,888
1 23,807,359 $ 27,759,728 $
1
See Accompanying -Notes to Financial Statements.
10 '
I
1 (358,271) 4,271,868 4,630,139 (8,748,998) (8,490,060) 258,938
20,072,085 20,072,085 17,871,801 17,871,801
' $ 19,713,814 $ 24,343,953 $ 4,630,139 $ 9,122,803 $ 9,381,741 $ 258,938
11
Special
Revenue Funds
Debt Service Funds
Vanance
Variance
Favorable
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
'
$ 502,810
$ 508,195
$ 5,385
$ 12,174,820
$ 12,379,735
$ 204,915
5,486,898
5,217,698
(269,200)
2,206;910
2,151;320
(55,590)
4,640;874
4,869,344
228,470
937,290
955,358
18,068
'
220400
304,110
83,710
72;480
75,883
3,403
'
13,130;372
13,126,550
(3,822)
13,112,110
13,335,093
222,983
272
211,042
61,656
'
5,071,522
4,667,002
404,520
2,781,466
2,159,599
621,867
10,562,353
6,461,819
4;100,534
6,608,078
6,351;970
256,108
10,813,274
13,133,064
(2,319,790)
22,413
(22,413)
76,118
(76,118)
18,688
13,499;462
5,188,577
17,421,352
,19,583,565
(2,162,213)
(5,557,667)
(372,912)
5,184,755
(4,309,242)
(6,248,472)
(1,939,230)
'
2,307,457
2,307,457
9,230
9,443,792
213,126
5,843,900
5,853,916
10,016
(4,031,270)
(4;799,012)
(767,742)
(10,283,656)
(10,402,961)
(119,305)
'
5,199,396
4,644,780.
(554,616)
(4,439,756)
(2;241,588)
2;198,168
1 (358,271) 4,271,868 4,630,139 (8,748,998) (8,490,060) 258,938
20,072,085 20,072,085 17,871,801 17,871,801
' $ 19,713,814 $ 24,343,953 $ 4,630,139 $ 9,122,803 $ 9,381,741 $ 258,938
11
CITY OF POWAY
Combined Statement of Revenues, Expenses, and Changes in
'
Retained Earnings/Fund Balance - All Proprietary Fund Types and Similar
Trust Funds
For the Year Ended June 30,
1998
Proprietary
Fund T es
Interns
'
Enterprise
Service
Operating Revenues:
Charges for services
$ 13,464,525
$ 965,185
,
Connection fees
1,212,676
Annexation fees
Donations
Other
40,670
19,192
'
Total Operating Revenues
14,717,871
984,377
,
Operating Expenses:
Personal services
2,150,026
184,547
Maintenance and operations
6,515,189
358,062
;
Cost of purchased water
4,938,989
Depreciation
1,507,501
Total Operating Expenses
15,111,705
542,609
'
Operating Income (Loss)
(393,834)
441,768
'
Nonoperating Revenues (Expenses):
Taxes
510,795
Interest revenue
1,754,590
177,906
Contributed capital
(1,378,691)
Interest expense and fiscal agent charges
(364,372)
Total Nonoperating Revenues
522,322
177,906
,
Income Before Operating Transfers
128;488
619,674
'
Operating Transfers:
Transfers in
Transfers out
(35,430)
(705,041)
'
Total Operating Transfers
(35,430)
(705,041)
Net Income (Loss)
93,058
(85,367)
'
Depreciation on Contributed Capital
67
Increase (Decrease) in Retained
'
Earnings/ Fund Balance
160,549
(85,367)
Retained'Earnings/Fund Balance,
t
Beginning (Restated Note 2l)
54,119;378
2,892,444
Retained Earnings/Fund Balance, Ending
$ 54,279,927
$ 2,807,077
See Accompanying Notes to Financial Statements.
12
1
1
1
1
1
1
1
1
1:
Fiduciary Fund
Type Totals
Nonexpenn able (Memorandum Only)
Trust Funds 1998 1997
$ 14,429,710
1,212,676
$ 56,150
56,150
116,012
15,758;398
41,546
41,546
14,604
14,604
54,435 _
54,435
(39,831)
(39,831)
900,350
$ 860,5.19
2,334,573
6,914,797
4,938,989
1,507,501
15,695,860
62,538
510,795
1
(1,378,691)
(364,372)
700,228
762,766
(794,906)
(794,9.06)
(32,140)
67,491
35,351
57,912,172
$ 57,947,523
$ 15,718,494
943,779
1,678
7,699
788,681
17,460,331
2,290,304
6,223,358
5,938,256
1,184,165
15,636,083
1,824,248
431,463
1,697,609
(426,902)
1,702,170
3,526,418
100,000
(980,701)
(880,701)
2,645,717
67,491
2,713,208
55,198,964
$ 57,912,172
13
L J
CITY OF POWAY
Combined Statement.of Cash Flows
All Proprietary: Fund Types and Similar Trust Funds
For the Year Ended June 30, 1998
Proprietary Fund Types '
Internal
Enterprise Service
Cash Flows From Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
Interest income
Changes in operating assets and liabilities:
(Increase)r decrease in accounts: receivable
(Increase) decrease in inventories
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Net Cash Provided by (Used for)
Operating Activities
Cash Flows from Non - Capital Financing Activities:
Taxes
Transfers in
Transfers out
Advances to other funds
Loan from other funds
(393,834) $ 441,768
1,507,501
(500,206)
'
522,644
(7,829)
48,329
'
(56,040)
(192,967)
(6,867)
2,992
'
1,754
177,906
1,621,733
243,964
'
26,131,189
3,163,928
512,488
$ 23,490,654
$ 2,880,757
(35,430)
(705,041)
'
(3,300,000)
(3,984)
Net Cash Used for Non - Capital
Financing Activities
Cash Flows from Capital and Related Financing Activities:
Interest expense and fiscal agent charges
Principal,payments on long -term borrowing
Acquisition of property, plant, and equipment
Net Cash Used for Capital and
Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning"(Restated Note 21)
Cash and Cash Equivalents, Ending
See Accompanying Notes to Financial Statements.
14
(2,826,926) (705,041) '
(472,493)
(500,206)
'
(2,217,233)
'
(3,189,932)
'
1,754
177,906
(2,640,535)
(283,171)
'
26,131,189
3,163,928
$ 23,490,654
$ 2,880,757
1�
Fiduciary Fund
'
Type
Totals
Nonexpenda6le
(Memorandum Only)
'
Trust.
1998
1997
$ 14,604
$ 62,538
$ 1,824
1
1,507
1,184,165
'
(56,150)
(56,150)
(40,079)
514,815
(206,746)
48,329
(41,144)
19 524
(229,483)
(15,162)
(3,875)
23,423
1
(22,022)
1,843,675
2,728,705
512,488
434,816
100,000
(54,435)
(794,906)
(980,701)
(3,300
(3,984)
3,984
'
(54,435)
(3,586;402)
(441,901)
(472,493)
(644,700)
(500;206)
(1,709,328)
(2,217,233)
(2,537,327)
(3,189;932)
(4,891,355)
56,150
1;988;646
1,557,110
'
(20,307)
(2,944,013,)
(1,047,441)
900,350
30,195,467
31,242,908
'
$ 880,043
$ 27,251,454
$ 30,195,467
(Continued)
15
CITY OF POWAY
Combined Statement of Cash Flows 1
All Proprietary Fund Types and. Similar Trust Funds (Continued)
For the Year Ended June 30, 1998
Cash and Cash Equivalents at the End of Year $ 23,490,654 $ 2,880,757 '
Noncash Investing, Capital and Financing Activities: '
The Water Enterprise Fund acquired $1,591,555 of fixed assets through contributed capital during the '
year ended June 30, 1998. Of this amount, $1,378,691 was contributed by the Sewer Enterprise Fund.
1
See Accompanying Notes to Financial Statements. ,
16 '
Proprietary
Fund Types
,
Internal
Reconciliation of Cash Equivalents to the Balance Sheet:
Enterprise
Service
'
Total cash and invesments per the balance sheet
$ 20,924,727
$ 2,880,757
Total restricted assets per the balance sheet:
Cash and investments
1,432,965
'
Cash and investments with fiscal agents
1,132,962
Cash and Investments of Expendable
'
Trust and Agency Funds
Cash and Cash Equivalents at the End of Year $ 23,490,654 $ 2,880,757 '
Noncash Investing, Capital and Financing Activities: '
The Water Enterprise Fund acquired $1,591,555 of fixed assets through contributed capital during the '
year ended June 30, 1998. Of this amount, $1,378,691 was contributed by the Sewer Enterprise Fund.
1
See Accompanying Notes to Financial Statements. ,
16 '
t
1
1
Fiduciary Fund
Type
Totals
Nonexpendable
(Memorandum Only)
Trust
1998
1997
$ 6,244;850
$ 30,050,334
$ 39,002,679
1,432;965
1,405,333
6,079,354
7,212,316
1,268,227
(11,444,161)
(11,444,161)
(11,480,779)
$ 880,043
$ 27,251,454
$ 30,195,460
17
�J
1.
CITY OF POWAY
Notes to Financial Statements '
June 30,1998
SUMMARY OF'SIGNIFICANT ACCOUNTING POLICIES '
Description of the Reporting Entitv
This report includes all fund types and account groups of the City of Poway (the "primary '
government"), as well as the Poway Redevelopment Agency (Agency) and the Poway Public
Financing Authority (Authority). The Agency and the Authority meet the defuution of i a
"component unit ", and are presented on a "blended" basis as if they were part of the primary '
government. Although they are legally separate entities their governing boards are
comprised of the same membership as the City Council. The City may impose its will on the
Agency and the Authority, including the ability to appoint, hire, reassign or dismiss '
management. There are also financial benefit/burden relationships between the City and the
other two entities.
The City of Poway was incorporated December 1, 1980, under the general laws of the State
of California The City operates under Council- Manager form of government and provides '
the following services: public safety (police — through the County of San Diego —and fire),
community services, engineering services;, planning services, public works, general
administrative services, and capital improvements. ,
The Poway Redevelopment Agency was established April 26, 1983, pursuant to the State of
California Health and Safety Codes, Section 33000 entitled "Community Redevelopment '
Law." Its purpose is to eliminate blighted areas by encouraging the development of
residential, commercial, industrial, recreational and public facilities. The financial
statements of the Redevelopment Agency can be obtained from the Poway Finance '
Department located at Poway City Hall.
The Poway Public Financing Authority is a joint powers authority organized pursuant to the ,
State of California Government Code, section 6500. The authority exists under a Joint
Exercise of Power Agreement dated October 8, 1991, between the City of Poway and the
Poway Redevelopment Agency. Its purpose is.to :assist in financing and refinancing projects '
for the benefit of the City and the Agency. Separate financial statements are not prepared for
the Authority.
The accounting policies of the City of Poway, the Poway Redevelopment Agency and the '
Poway Public Financing Authority conform to generally accepted accounting principles as
applicable to governments. The following is a summary of the more significant policies. '
Fund Accountin
The accounts of the City are organized on the basis of funds and account groups, each of
which is considered a separate accounting entity. The operations of each fund are accounted
for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund
,
18' 1
CITY OF POWAY
' Notes to Financial Statements (Continued)
June30,1998-
equity, revenues, and,expenditures, or expenses, as appropriate. Government resources are
allocated to and accounted for in individual funds based upon the purposes for which they
are•to be spent and the means by which spending activities are controlled. The various funds
are grouped, in the financial statements in this report, into generic fund types and broad fund
' categories as follows:
Governmental Funds
General Fund - The General Fund is the general operating fund of the City. It is used
to account for all financial resources except those required to be accounted for in
another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the
' proceeds of specific revenue sources that are legally restricted to expenditures for
specified purposes.
Debt Service Funds - The Debt Service Funds ,are used to account for the
accumulation of resources for, and the payment of principal, interest, and related costs
' of the debt of the general long -term debt account group.
vital Projects Funds - Capital Projects Funds are used to account for financial
resources to-be used for the acquisition or construction of major capital facilities (other
' than those financed by proprietary funds).
' Proprietary Funds
Enterprise Funds The Enterprise Funds are used to account for operations that are
financed and,operated,in a manner similar to a private busjness enterprise- where the
intent of the City Council is that the costs (expenses, .including depreciation) of
' providing goods or. services to the general public on a, continuing basis be financed or
recovered primarily through user charges.
Internal Service Fund - The Internal Service Fund ismsed to account for activities and
services performed for other organizational units within the City. Charges to other city
departments are madeto support these activities.
Fiduciary Funds
Nonexpendable Trust Funds - The Nonexpendable Trust Funds are used to account
for the 'resources received from a private donor and.held by the City in a trustee
capacity. The principal gift is to be maintained
earnings are used library and park - related projects.
in essentially the same manner as proprietary. funds,
critical.
vitact and invested. Investment
These funds are accounted for
since capital maintenance is
1 19
CITY OF POWAY
Notes to FinancialStatementi (Continued)
June 30,1998
Expendable Trust Funds - The Expendable Trust Funds are used to account for the
resources received from private donors. The principal gifts and, investment earnings
are used for beautification projects on'Poway Road. These funds are accounted for in
essentially the same manner asGovemmental Funds.
Agency Funds - The Agency Funds are.used to account for developer deposits and
bond deposits. These funds'are.custodial immature (assets equal liabilities) and do not
involve measurement of results of operations.
Fixed Assets and Long -Term Liabilities
The accounting and reporting:treatrnent applied to the fixed assets and long -term liabilities
associated with a fund are determined by its measurement focus. All governmental funds
are accounted for on a spending or "financial flow" measurement focus. This means that
only current assets and current liabilities are,generally included on their balance sheets. Their
reported fund balance (net current assets) is considered a measure of "available spendable
resources." Governmental funds operating, statements present increases (revenues and other
financing sources) and decreases (expenditures and other ,financing uses) in net current
assets. Accordingly, they are said to.present a summary of resources -and uses of "available
spendable resources" during a period.
Fixed assets used in governmental fund type operations (general fixed assets) are accounted
for in the General Fixed Assets Account Group, rather than in.govemmental.funds. Public
domain ("infrastructure") general fired assets, consisting of certain improvements other than
buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage
systems, and lighting systems are not capitalized along with other general frxe_ d assets. No
depreciation has been provided on general fixed assets.
All fixed assets are valued at historical cost or.estimated.historical cost if actual historical
cost is not available. Donated fixed assets are valued at their estimated fair market value on
the date donated. The City capitalizes its fixed : assets acquired under lease, purchases or
similar contracts.
Long -term liabilities expected to`be financed from governmental funds are accounted for in
the General Long -Term Debt Account Group, not in the governmental funds.
The two account groups are not "funds." They are.concemed only with'the measurement of
financial position. They are not involved with measurement of results of operations.
Because of their spending, measurement focus, expenditure recognition for governmental
fund types is limited to exclude amounts represented by non- current liabilities. Since they do
not affect: net currentassets, such long -term amounts are not recognized -as governmental
fund type expenditures or fund liabilities., They are instead reported. as liabilities in. the
General Long -Term Debt Account Group.
120
CITY OF POWAY
' Notes to Financial Statements (Continued)
June 30,1998
The proprietary funds and nonexpendable trust funds are accounted for on a, cost of services
or "capital maintenance" measurement focus. This means that all assets and all liabilities
(whether current or: noncurrent) associated with their activities are included on their balance
sheets. The reported .fund; equity ,(net total assets) is segregated into contributed capital and
' retained earnings components. Proprietary fund type operating statements present increases
(revenues) and decreases (expenses) in net total assets.
Depreciation of all exhaustiblefixed assets used by the proprietary funds, is charged as an
expense against.their,operations. Accumulated depreciation is provided on proprietary fund
balance sheets. Depreciation has been provided over the estimated useful lives using the
' straight-line method. `The estimated useful lives'are as follows:
Distribution lines and improvements
1 other,than'buildings 25 -100 Years
Buildings 25 Years
Machinery and equipment 5 -10 Years
' Basis of Accounting
' Basis of accounting refers to when revenues and expenditures'orexpenses are recognized in
the accounts and reported in the financial statements. Basis of accounting relates to the
timing of the measurements made, regardless of the measurement focus applied.
All governmental funds, the expendable trust funds and the agency funds are accounted for
using the modified accrual basis of accounting. Their revenues are recognized when they
become measurable and available as net current assets. Their measurement focus is based
on flow of current, financial resources. The primary revenue sources susceptible to accrual
are property and sales taxes, franchise fees, transient occupancy taxes, investment income,
federal entitlement, motor vehicle fees and gas tax subventions.
' Expenditures are generally recognized under the modified accrual basis of accounting when
the related fund liability is incurred. An exception to this general rule is principal and
interest on general'long -term debt which is recognized'when:due.
The proprietary'funds and the nonexpendable trust fund are;`accounte&for using the accrual
basis of accounting. Their measurement focus is based. on flow of economic resources.
Their revenues are : recognized when earned, and expenses are recognized when they are
incurred. 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 Standards Board
' Statements and Interpretations, Accounting Principals Board Opinions and Accounting
Research Bulletins of the Committee on Accounting Procedure issued on or before
November 30,1989.
21
CfrY OF POWAY
Notes to Financial Statements (Continued) '
.June 30,1998
Budgets and Budgetary Accounting '
The City prepares itsbudgets on the:basis of estimated actual expenditures and, accordingly,
the budget amounts included in the accompanying financial statements are presented on a
basis consistent with generally accepted accounting principles. '
Each year, the City Manager submits a_proposed budget to the City Council during early
May. The City Council holds budget hearings during May and early June. The final budget '
is adopted by the City Council during late June.
No budget expenditures can be disbursed without proper appropriations. Once the budget is t
adopted, no additional fund appropriations can be authorized without the Council's approval.
The level of budgetary control (the level on which expenditures may not legally exceed
appropriations) is the individual fund level. The City Manager can authorize budget '
transfers between departments without additional appropriations. During fiscal year 1997-
1998, supplemental budgetary appropriations were minor.
The City holds a mid -year budget review meeting. During the meeting, all the budget '
expenditures are reviewed and projections for the whole year are made. Therefore, any ,
necessary changes are submitted for approval by the City Council with a resolution:
Annual appropriated budgets are adopted for the general, special revenue, and debt service
funds. Budgets are adopted on a basis consistent with generally accepted accounting
principles. Budgeted amounts are as originally adopted and as further amended by the City
Council. '
Unexpended and unencumbered appropriations of the governmental funds automatically
lapse at the end of the fiscal year. '
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments '
for the expenditure of monies are recorded in order to reserve that portion of the applicable '
appropriation, is employed as an extension of formal budgetary integration in the
Governmental, Fund Types. Encumbrances at year end are a portion of reserved fund
balance and are reappropriatedthe following year.
Investments —
Investments are stated at fair value, the value at which a financial instrument could be t
exchanged in a current transaction between wil ling parties other than a forced or liquidation
sale. 1
22 1
CITY OF POWAY
' Notes to Financial Statements (Continued)
June 30, 1998
' Cash Equivalents
' For purposes of the Statement of Cash Flows, the City consideres all highly liquid
investments (including restricted assets) with a maturity of three months or less when
purchased.to'be cash equivalents. In addition, cash invested in the Citys cash management
pool is considered to be cash equivalents.
' Inventories
Inventories are stated at cost, computed on a first -in, first -out basis.
i General .fund, inventory consists of expendable supplies held , for consumption, and are
recorded as expenditures in the fiscal year consumed. This reported inventory is offset by a
fund balance reserve to indicate that it is not available for-appropriation.
Fixed Assets Held for Resale
The Capital Projects Fund fixed assets held for resale are valued at lower of cost or market.
Reported fixed assets held for resale are equally offset by a fund balance reserve which
indicates that it.does not constitute available spendable resources.
Compensated Absences
The.City accounts for compensated absences (unpaid vacation, sick leave and compensatory
time) in. accordance with GASB Cod. Sec. C60. Compensated absences are accrued as
incurreddn.bothgovernmental, and proprietary funds as the City intends to pay this liability as
it becomes due, from currently available financial resources. No portion of this liability is
considered to be long -tern.
' Comparative Data
' Comparative. total data for the prior year have been presented in the accompanying financial
statements m order to provide an understanding of changes in the City's financial position
and operations. However, comparative (i.e., presentation of prior year totals by fund type)
' data have not been presented in, each of the statements: since their inclusion would make the
statements unduly complex and difficult to read. Certain prior year amounts have been
reclassified to- conform to the current year presentation for comparative purposes.
Total Columns on Cornbined'Statements
Total columns on the Combined' Statements are captioned "Memorandum -Only" to indicate
that they are presented only, to facilitate financial analysis. Data in these columns do not
present financial position, results of operations, or cash flows in conformity with generally
accepted accounting principles. Neither is such data comparable to a consolidation.
Interfund eliminations have not been made in the aggregation of this data
' .23
CTTY'OF POWAY
Notes to Financial Statements (Continued)
June 30,1998
2.
CASH AND INVESTMENTS
Cash and investments at June 30, 1998 consisted of the following:
Pooled deposits:
Demand accounts (bank balances)
Add deposit in transit
Less outstanding warrants
Book Balance
Certificates of deposit
Total Pooled Deposits
Pooled investments
Deposits and investments with fiscal agents
Total Cash and Investments
$ 912,394
537:579
1,449,973
71,002,377
20,532,555
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 monthly to the various
funds based on the average cash balance in each fund. Interest income from cash and
investments with fiscal agents is credited directly to the related fund.
Authorized Deposits/Investments
Under provision of the City's policy, and in accordance with Section 53601 of the
California Government Code, the City may invest in the following,types.of investments:
Securities of the U.S. Government or its agencies.
Obligations of State or Municipal Governments.
Certificates of Deposit (or Time Deposits).
Bankers' Acceptances.
Negotiable. Certificates of Deposit.
Commercial Paper.
Local Agency Investment Fund demand deposits (State pool)._
County, Treasury Pool.
Repurchase Agreements.
Reverse repurchase agreements
Passbook Savings Account demand deposits.
$1,301,967
41,416
(430,9891
`ZI!
Credit Risk Carrvine•Amount, and Fair Value of Investments
' The investments ° that are represented by specific identifiable investment securities are
classified as to credit risk by the three categories as follows:
' Category 1: Insured or registered, or securities held by the City or its agent in the City
name.
Category 2: Uninsured and unregistered with'secutities held by the pledging financial
institution's or counterparty s trust department or agent in the City s name.
Category 3: Uninsured and unregistered with securities field by the counterparty, or by
its trust department or agent, but not in the City's name.
I .
1 25
1
CITY OF POWAY
Notes to.Financial Statements (Continued)
June 30,1998
Mutual Funds.
'
Medium -Term Corporate Notes.
Asset - backed Securities.
Other prudent investments instruments, approved prior to purchase by a two- thirds
'
majority of the governing body.
Deposits/Credit Risk
t 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 least110% of a City's,deposits. California
law also allows fmancial institutions to secure City deposits by pledging first trust deed
a
mortgage notes having ,value of 150 of a 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 3, deposits are classified as to credit risk by three
categories as follows:
in
Category 1: Insured or collateralized with securities held by the City or by its agent
the Citys
�.
institution's
Category 2: Collateralized with securities held by the pledging financial
trust department or agent in the City's name.
Category 3: Uncollateralized.
Credit Risk Carrvine•Amount, and Fair Value of Investments
' The investments ° that are represented by specific identifiable investment securities are
classified as to credit risk by the three categories as follows:
' Category 1: Insured or registered, or securities held by the City or its agent in the City
name.
Category 2: Uninsured and unregistered with'secutities held by the pledging financial
institution's or counterparty s trust department or agent in the City s name.
Category 3: Uninsured and unregistered with securities field by the counterparty, or by
its trust department or agent, but not in the City's name.
I .
1 25
CITY OF POWAY
Notes to Financial • Statements (Continued)
June 30,1998
Deposits were categorized as follows at June 30, -1998:
Investments consisted of the following at June 30, 1998
Pooled Investment:
U.S. Government Securities
Medium -Term Corporate
Notes
Local Agency Investment
Fund (State Pool) (r)
Total Pooled Investment
Investments with Fiscal Agents:
U.S. Treasury Notes
Mutual Funds
Total Investments
With-Fiscal Agents
Total Investments
(l) Not subject to categorization
Category Fair
1 2 3 Value
$32,955,732 $32,955,732
15,006,893 15,006,893
23,039.752 (2)
47,962,625 71,002;377
$8,293,726 8,293,726
11,347,292
8,293,726 19,641,018
7962.625 8.293.726 $90.643.395
26
Category
1
2 3
Amount
Pooled Deposits:
Demand Accounts
(Bank Balance)
$108,957
$1,193,010
$1,301,967
Add deposit in transit
41,416
Less outstanding warrants
(430,989
Demand Accounts
(BookBalance)
912,394
Certificates of Deposit
537,579
537,579
Total Pooled Deposits
646,536
1,193,010
1,449,973
Deposits with Fiscal Agents:
Deposits (Cash)
$891,537
891537
Total Deposits
64$ 6"5 6
$1.193.010 �$�1 5 7
$2.341:510
Investments consisted of the following at June 30, 1998
Pooled Investment:
U.S. Government Securities
Medium -Term Corporate
Notes
Local Agency Investment
Fund (State Pool) (r)
Total Pooled Investment
Investments with Fiscal Agents:
U.S. Treasury Notes
Mutual Funds
Total Investments
With-Fiscal Agents
Total Investments
(l) Not subject to categorization
Category Fair
1 2 3 Value
$32,955,732 $32,955,732
15,006,893 15,006,893
23,039.752 (2)
47,962,625 71,002;377
$8,293,726 8,293,726
11,347,292
8,293,726 19,641,018
7962.625 8.293.726 $90.643.395
26
CITY OFPOWAY
Notes to. Financial Statements (Continued)
June '30,1998
(Z) The management of the State of California Pooled Money Investment Account
' (generally referred to as LAIF) has indicated to the City that as of.June 30, 1998 the
amortized cost value of the pool was $31,920,000,841.and the estimated fair value of the
pool was $31,932,227,970. Included in LAIF's investment portfolio are certain
' derivative securities, or similar products, in. the form of structured notes totaling
$977 andasset- backed securities totaling $388,537;000. LAIFs (and the City's)
exposure to risk (credit; -market or legal) is notcurrently available.
1 Cash and Investments with Fiscal Agents
.' The City has held by trustees or fiscal agents pledged to the payment or security of
certain bonds. The California Government Code provides these monies, in the absence of
specific statutory provisions governing the issuance of bonds,,may be'invested in accordance
' with the ordinance, resolutions or indentures specifying the types of investments its trustees
or fiscal agentsmay make.
' 3. PROPERTY TAXES
Property taxes attach.as an enforceable lien on propertyas of March 1. Taxes are levied on
July 1 and are payable in two installments on December 10 and April 10. The County bills
and collects the property taxes and remits them to the City in installments during the year.
' City property tax revenues are recognized when levied to the extent that they result in current
receivables in accordance with.GASB Cod. Sec. P70. Property 'tax receivables are not offset
by deferred revenues because they are collectible within 60 days after the fiscal year end.
1 The County is permitted by State Law (Proposition 13) to levy taxes at 1% of full market
value (at time of purchase) 'and can increase the property tax rate no more than two percent
per year. The City receivesa share of this basic levy.
4. REHABILITATION. LOAN PROGRAM
The City has made various non - interest bearing loans to property owners for the
rehabilitation of property within the City. In accordance with the Affordable Housing
Rehabilitation Loan Program, ten percent of each loan is forgiven each year on the, loan
anniversary. A portion of the loans are repayable only upon the sale of the property within
' tervyears of the loan origination date or upon the death of the current property owner. Due
to the contingent repayment .schedule of these loans, the Agency records an expenditure
when a loan is.made and no receivable is included in the.`financial statements. The'balance
' of the loans outstanding at'June 30, 1998 was $844,343.
, 27
CffY OF POWAY
Notes to Financial. Statements (Continued)
June 30, 1908
5.
RECEIVABLE UNDER OWNER PARTICIPATION AGREEMENT
In 1990, the Poway Redevelopment. Agency entered into an .agreement with a developer
whereby the developer is to contribute'$1 to the construction of Scripps Poway
Parkway. $302,940 plus accrued interest is to be paid at the time of issuance of the first
building permits on the commercial property. The payment of the balance of $1,074;060 is
to be paid at the time of issuance of a building permit for each residential lot ($8,950 plus
accrued interest per residential. lot). Interest is to accrue at the rate of 8 1 /. %o per year to the
principal of $1,377,000 commencing on March 9, 1993. As of June: 30, 1998, seventy=one
residential permits have been .issued. At June. 30, 1998, the Agency has recorded a
receivable and deferred revenue in the amount of $910,081 (including interest of $313,739).
6.
CHANGES IN GENERAL FIXED ASSETS
Changes in general fixed assets during the year ended June 30, 1998; were as follows:
ENTERPRISE FIXED ASSETS
A summary of proprietary fund type property, plant and at June 30.1998 follows: '
Land $ 76,797
Buildings 19,057,967
Improvements other than buildings 34,056,759
Machinery and equipment 1,325,788
Construction in-progress 3,562,836
Total 58,080,147
Less accumulated depreciation (24;438,756
Net 33`641391
28
1
1
lJ
Balance
Balance
July 1, 1997
Additions
Deletions June 30, 1998
Land
$43,040;133
$ 470,389
$43,510,522
Buildings
37,056,924
7,505,066
44,561,990
Improvements other
than buildings
2,437,388
445,001
2,882,389
Machinery and equipment
7,561,228
732,771
$ 317,071 7,976,928
Construction in progress
2,785,786
21.1,028
2,281,779 715,035
ENTERPRISE FIXED ASSETS
A summary of proprietary fund type property, plant and at June 30.1998 follows: '
Land $ 76,797
Buildings 19,057,967
Improvements other than buildings 34,056,759
Machinery and equipment 1,325,788
Construction in-progress 3,562,836
Total 58,080,147
Less accumulated depreciation (24;438,756
Net 33`641391
28
1
1
lJ
1 Y
t CITY OF POWAY
Notes to;Financial Statements (Continued)
June30,1998
8. CHANGES IN LONG -TERM DEBT
General Long-'Term Debt Account Group
1
1
1
1
1
1
1
The following is a summary of the changes in the General Long -Term Debt Account Group
for the year ended`June30, 1998:
Tax Allocation Bonds
Certificates of Participation.
Advances from Other Funds
Contract Payable
Notes Payable
Obligations Under
Capital Leases
Total
Balance
New Debt
Debt
Balance
July 1, 1997
Incurred
: Retirement
June 30, 1998
$116,895,000
1$1,210,000
$115;685,000
56,505,000
695,000
55,810,000
26,344,512
$3,558,074
4,253,074
25,649,512
44,881
601
44,280
26,455,971
2,307,457
193,295
28,570,133
438,163
69,350 368,813
$226.683.527 5 86 -4� . 226.127.738
General long -term debt consisted of the following at June 30, 1998:
Tax Allocation Bonds
' 1990 Tax Allocation Bonds, issued in 1990 in the amount of
$21,595;000 consisting of serial bonds of $7,475,000 maturing from
1991 to 2000 in..semi - annual installments of $295,000 to `$510,000
' and term bonds of $4 and'$9,280,000 maturing in and
2011, respectively. Interest -is payable semi - annually on June 15 and
' December 15 at rates ranging from 5.75% to 725 %. Bonds
maturing on or after December 15, 2011 are subject to optional
redemption in whole or in part on. any interest payment date. Bonds
' maturing on December 15, 2004 are subject to mandatory redemption
on,each inter estpayment date from June 15, 2001 to December 15,
2004. Bonds maturing on December 15, 2011 are subject to
mandatory redemption on each interest payment date from June 15
2005'to December 15, 2011.
',
$16,505,000
1 29
I
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30,1998
1993 Tax Allocation Refunding Bonds issued in 1993 in the amount
of $104,710,000 consisting of $79,355,000 Fixed Rate bonds and
$25,355,000 Indexed Inverse Floating/Fixed Rate bonds. The
$79,355,000 Fixed Rate bonds consist of $9,520,000 serial bonds
maturing from 1993 to 2002 in annual installments of $325,000 to
$2,810,000; term bonds of $49,035;000 maturing in 2023; and term
bonds of $20,800,000 maturing in 2026. The $25,355,000 Indexed
Inverse Floating/Fixed Rate bonds consist of $4,390,000 bonds
maturing in 2006 scheduled to convert in 2003 to 5.22% and
$20,965,000 bonds maturing in 2014 scheduled to convert in 1998 to
5.67 %. Interest on the bonds is payable semi - annually on June .15
and December 15 at rates ranging from 2.. 7 0% to 5.75 %. Bonds
maturing on or after December 15, 2002. are subject to optional
redemption in whole or in part on any interest date. Bonds maturing
on December 15, 2006, are subject to mandatory redemption
beginning June 15, 2003. Bonds maturing on December 15, 2014,
are subject to.mandatory redemption beginning 15, 2007. Bonds
maturing on December 15, 2023, are subject to mandatory
redemption beginning June 15, 2015. Bonds maturing on December
15, 2026, are subject to mandatory redemption beginning June 15,
2024. 99,180,000
Total Tax Allocation Bonds $115.685 :000
Certificates of Participation
1995 Refunding Certificates of Participation issued in 1995 in the
amount of $9,3,15,000 consisting of $6;930;000 serial certificates
maturing from 1996 to 2008 in annual installments of $375,000 to
$710,000 and $2,385,000 term certificates maturing in 2011. Interest
is payable semi - annually on February, land August hat rates ranging
from 4.10% to 6.07 %. Certificates maturing on or after August 1,
2006 are subject to optional redemp4ion;in whole or in part on any
interest payment date beginning August 1, 2005.- Certificates
maturing on August 1, 2011 are subject to mandatory redemptions in
part on August 1 of each year beginning August 1, 2009: $ 8,525,000
30
1
7
1
I
1
1
1
1
1
1
11
1
CITY OF POWAY'
N
June 30, 1998
1•995 Refunding Certificates of Participation issued in, 1995. in the
amount of $31,770,000 consisting of $3 serial certificates
maturing from 1996 to 2008, in semi - annual, of $10;000
to $360,000 and term certificates of $6,335 $6;405,000 and
$15,135,000 maturing in 2020 and 2028, respectively. Interest
is payable semi-annually, on February I and August gustj.at�,rates
from 3.65% to 6:15 %0. Certificates, maturing on or after. February 1,
2006 are subject to, optional'-, prepayment in whole or in part on any
interest payment date on or-after August 1, 2005. Certificates
maturing on August. 1,2015 and 2028,are subject to mandatory
prepaymem.by lot on any, interest payment date beginningFebruary. 1,
2009 and 2021, respectively. 31,675,000
1996 Certificates of Participation, issued in 1996 in the amount of
$4375:000 consisting.of serial certificates of 060,000 maturingfirom
199&tfirough 2608 in annual installments of$70,000 to"$l - 10,'000 and
term certificates of $3,41;5 maturing in.2026. Interest Js payable
semi-annually on February I and: Au ust 1, at ratesl ran i n from 4A%
.9 g_,
to 5.6%. C ertificates maturing on or after August, 2008 are subjectlo
optional redempfion.:in'whole or in pah, on any February'l or August
on or, after A ugust ugust 1, 2007. Certificates maturing on AiigiistJ, 2026
are subject to mandatory redemption, without premium,. on August 1,
2009 to August 1, 2026. . 4,375,000
Total Certificates of Participation S55M0M
I
1 31
1992 Certificates of Participation, issued in 1992 in the amount of
$12 ;640 000 000 consisting of serial certificates of $3,265 maturing
from 1992 to 2003 in semi-annual installments of $70,000, to
$350,000 and term certificates of $2,880,000 and 16,495,000
maturing in 2009 and 2018, respectively. Interest: is payable semi'T
annually on June I and December 1 at rates ranging from 3.5 to
6375%. Certificates maturing. on or after December 1, 2002 are
subject to optional prepayment in Whole on any interest payment date
on or after June 1,:2002. Certificates maturing on December 1, 2009
are subject to mandatory prepayment on each interest, - payment date
from June 1, 2004 to December 1, 2009. Certificates maturing on
June 1, 2018 are suibjeqtJo mandatory prepayment on each interest
payment date from June 1, 2010 to June 1, 2018. 11,235,000
1996 Certificates of Participation, issued in 1996 in the amount of
$4375:000 consisting.of serial certificates of 060,000 maturingfirom
199&tfirough 2608 in annual installments of$70,000 to"$l - 10,'000 and
term certificates of $3,41;5 maturing in.2026. Interest Js payable
semi-annually on February I and: Au ust 1, at ratesl ran i n from 4A%
.9 g_,
to 5.6%. C ertificates maturing on or after August, 2008 are subjectlo
optional redempfion.:in'whole or in pah, on any February'l or August
on or, after A ugust ugust 1, 2007. Certificates maturing on AiigiistJ, 2026
are subject to mandatory redemption, without premium,. on August 1,
2009 to August 1, 2026. . 4,375,000
Total Certificates of Participation S55M0M
I
1 31
I
CITY OF POWAY
Notes.to Financial Statements (Continued) '
June 30;1998
Advances from Other Funds '
The City Council authorized 'a loan to the: Redevelopment Agency in
the amount of $5,154J59 at an interest rate ranging from 6.25% to
7.875 %0. The loan is repayable as tax increment funds become
available to the Agency. $ .5,154,159
The City Council authorized a number of loans to the Redevelopment
Agency in the amount. of $13047,865;at various interest rates. The
terms of the loans are indefinite. Accrued:interest on the loans of
$6,261,200 is not reflected in the accompanying financial statements. t
Interest is recorded when it becomes payable from available
spendable resources. 13;047,865
The City Council authorized a loan to the Redevelopment Agendyin
the amount of $7,447,488 at. interest rates ranging from 6.5% to
8.375 %. The loan is repayable as tax increment funds become
available to the Agency. 7447;488
Total Advances from Other Funds' 25:649.51 ,
Contract Payable Y
Payable to Pomerado Cemetery District from ^future tax revenues per
agreement between the Cemetery District and the Poway '
Redevelopment Agency dated October 23, 1984. The purpose of the
agreement is to alleviate any financial burden or detriment caused to
the District by the Redevelopment Plan. The Agency is to make
payments to the District as follows:
A. For the first fiscal year. in which the ,Agency receives tax '
.revenues at least equal to two hundred fifty'dollars,($250), plus -an
additional twenty percent, (20 %) pursuant to :Sect on 33334.2
of the Health and Safety Code, the Agency shall pay to "the
District the sum of two hundred fifty dollars ($250);
B. For each fiscal year during which the Redevelopment. Plan
7emains:in effect after the fiscal year referred to in the preceding
paragraph. A, the Agency ."shall pay to the District from tax
revenues an amount equal to (i) the - amount of tax revenues paid
by the Agency to the District during the fiscal, year immediately
preceding the fiscal year for which the calculation is being made, '
multiplied by (ii) one and seven one = hundredths (1.07).
32 1
In October 1988, .the Poway Redevelopment Agency entered into an
acquisition agreement `with : Parkway Partners to provide for the
1 construction of public "improvements relating to the development of
Parkway Business Center, The agreement provides that the Agency
will enter into a promissory note with Parkway Partners to reimburse
' them, for the cost .of constructing certain public improvements. In
November. 1995, the, Agency executed and delivered a'promissory
note -in the face amount of , at ^an interest rate of 8.0% per
annum, effective July 1, 1995. The note plus accrued interest is
payable from excess: tax increment generated by the project., as the,
funds,become available.
Total Notes-Payable
Obligations.Under Capital Leases
The City entered into a lease agreement to fund the energy retrofit of
the:]ightinglsystems throughout the City facilities. The lease.qualifies
as a capitallease'and the asset has been recorded in the General.Fixed
Assets Account Group accordingly. The terms of the lease call for
quarterly payments of $14,959 including interest at 599%.
33
$16,247,317
3,730,483
8,592,333
28.570.133
.t4 1 T
1
CITY OF POWAY
'
Notes'ao,Financial Statements (Continued)
June 30,1998
'
NotesPayable
In.December 19851he Poway. Redevelopment Agency entered into
an acquisition agreement with CF Poway Ltd. to provide for the
construction of public improvements relating to the development of
Pomerado, Business Park. The agreement provides;that the. Agency
will enter into a promissory - note with CF Poway to reimburse them
for the cost of :constructing certain public improvements: In,March
1991, the Agency accepted $8,608,753 of improvements. The, note
plus accrued interest at 9,375% is to, be paid from excess tax
increment generated by the project as the funds become available.
In,November 1990 the Poway' Redevelopment Agency entered into
an acquisition agreement with .Tech Business Center to provide for
1
the construction of public improvements relating to the development
of the Poway Corporate Center. The agreement provides that the
Agency will enter into a promissory note with Tech Business Center
to reimburse them for the cost of constructing certain public
improvements., In Aprit 1.993, the Agency accepted $2,500;000 of
improvements, and executed a promissory note at 810%. The note
'
plus accrued interest is payable from excess tax increment,generated
by the project as the funds become available.
In October 1988, .the Poway Redevelopment Agency entered into an
acquisition agreement `with : Parkway Partners to provide for the
1 construction of public "improvements relating to the development of
Parkway Business Center, The agreement provides that the Agency
will enter into a promissory note with Parkway Partners to reimburse
' them, for the cost .of constructing certain public improvements. In
November. 1995, the, Agency executed and delivered a'promissory
note -in the face amount of , at ^an interest rate of 8.0% per
annum, effective July 1, 1995. The note plus accrued interest is
payable from excess: tax increment generated by the project., as the,
funds,become available.
Total Notes-Payable
Obligations.Under Capital Leases
The City entered into a lease agreement to fund the energy retrofit of
the:]ightinglsystems throughout the City facilities. The lease.qualifies
as a capitallease'and the asset has been recorded in the General.Fixed
Assets Account Group accordingly. The terms of the lease call for
quarterly payments of $14,959 including interest at 599%.
33
$16,247,317
3,730,483
8,592,333
28.570.133
MY OF POWAY
Notes to Financial Statements (Continued)
Juni 30;1998
There are a number of limitations and restrictions contained in the bond indentures. The
City is in compliance with all significant1imitationsand restrictions.
The annual requirements to amortize all. debt outstanding in the General Long -Term Debt
Account Group, excluding amounts for advances from other funds and notes as of '
June 30, 1998, including interest payments of:$174,053,993 are as- follows:
Enterprise. Funds
Long -term debt in the Water Fund at June 30, 1998 consisted of the following: I
1995 General Obligation Refunding Bonds issued in the amount of
$5,170,000 to advance refund $3;120,000 1975 'General Obligation
Water Bonds. The bonds mature from 1996 to 2005 in annual
installments of $375,000 to $1,200,000. Interest is payable semi-
annually in April and October 1 aUrates ranging from 3.8% to 4.8 %.
The balance outstanding at June 30, 1998, is net of a bond discount of
$11,642 and a loss on refunding of $38,754 $3;544,605
Poway Public Financing Authority Revenue Bonds, series 1995
issued in the amount of $3,380,000 to provide funds to construct
certain water facility improvements. The bonds consist of $2,190;000
serial bonds maturing from 1996 to 2010. in annual installments of
$105,000 to $200,000 and $1,190,000 term bonds maturing in 2015. 1
34 1
Obligations.
Year
Tax
Certificates
Under
Ending
Allocation
of
Contract
Capital
June 30
Bonds
Participation
Payable
Leases
Total
1999
$ 8,656,386
$ 4,052,241
$ 645
$ 59
$ 12,769,107
2000
8,001,386
4,147
690
59,835
.12
2001
8,788,581
4,221,075
738
59,835
13
2002
8414,609
4,313,988
790
59,835
12,789,222
2003
8,417,070
4;354,710
845
59,835
12832
Thereafter
191.236.968
90,849,828
40,572
164,548
282:291:916
233.515.000
111.939:083
280
63.723
345.962.086
'
The contract
payable, advances from other funds, Tax Allocation Bonds, Certificates of
Participation
(except for the
1996 Certificates of Participation), and
notes payable are
serviced by tax increment revenues of the Cityof Poway Redevelopment Agency.
Enterprise. Funds
Long -term debt in the Water Fund at June 30, 1998 consisted of the following: I
1995 General Obligation Refunding Bonds issued in the amount of
$5,170,000 to advance refund $3;120,000 1975 'General Obligation
Water Bonds. The bonds mature from 1996 to 2005 in annual
installments of $375,000 to $1,200,000. Interest is payable semi-
annually in April and October 1 aUrates ranging from 3.8% to 4.8 %.
The balance outstanding at June 30, 1998, is net of a bond discount of
$11,642 and a loss on refunding of $38,754 $3;544,605
Poway Public Financing Authority Revenue Bonds, series 1995
issued in the amount of $3,380,000 to provide funds to construct
certain water facility improvements. The bonds consist of $2,190;000
serial bonds maturing from 1996 to 2010. in annual installments of
$105,000 to $200,000 and $1,190,000 term bonds maturing in 2015. 1
34 1
Long -term Debt Payable in Enterprise Funds 6 307 8
The annual requirements amortize long -term debt outstanding included in the Enterprise
Funds as of June 30, 1998, excluding contract payable and including interest payments of
$2,461,959 are as follows:
1
^r
CITY OF POWAY
'
Notes to Financial Statements (Continued)
June 30, 1998
Revenue.
'
Capital
Interest tis, payable semi- annually on May 1 and November I with
Bonds
Bonds
rates ranging from 3:70% to 5.75 %. Bonds maturing on or after
Total
'
November 1, 2006 are subject to optional redemption prior to
$ 272,748
$ 536,688
maturity in whole. or -'in part, on any date on or after November 1,
$ 834,451
2005. The term bonds are subject to mandatory redemption in on
277,748
535,787
November 1, 2011 to 261'S amounts ranging from $21'5 to
838,550
$265,000. The balance outstanding at June 30, 1997 is net of a bond
277,840
277,540
538,768
535,486
discount of $45,185.
3,119,813
The Water Fund entered into a lease agreement to fund the energy
276;930
'
retrofit of the lighting - systems throughout the water facilities. The
837,733
'
lease • qualifies as a capital lease and the asset has been capitalized
3,529,480
1,609,175
accordingly. The .terrris of the lease call for quarterly payments of
5,207,448
$6,254 including interest at 5:99 %.
154,189
4 29 6
Contract payable
5,407
Total
6,824,014
Less current portion
(516,137
Long -term Debt Payable in Enterprise Funds 6 307 8
The annual requirements amortize long -term debt outstanding included in the Enterprise
Funds as of June 30, 1998, excluding contract payable and including interest payments of
$2,461,959 are as follows:
F
35
Obligation
General
Under
Year.Ending
Revenue.
Obligation
Capital
June 30
Bonds
Bonds
Lease
Total
'
1999
$ 272,748
$ 536,688
$ 25;015
$ 834,451
2000
277,748
535,787
25
838,550
2001
2002
277,840
277,540
538,768
535,486
25,015
25;015
841,623.
838,041
2003
276;930
535,788
25;01-5
837,733
'
Thereafter
3,529,480
1,609,175
68:79
5,207,448
91 86
4 29 6
3' 8'
84
F
35
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30,1998
9. RESTRICTED ASSETS
Restricted assets at June 30, 1998, consisted of the following:
Cash and Investments Receivables Cash and Investments With Fiscal Aizents
Debt Capital
General Enterprise Enterprise Service Enter
,prise Projects Agency
— Fund Funds Funds Funds Funds Funds Funds
Tax revenues
received for
payment of
general
obligation
bonds
Certificate
of deposit $100,000
1978 fire bonds
1997 special tax
refunding bonds
1998 special tax
bonds
1996 special tax
bonds
1496 certificates
of participation
1995 certificates
of participation
1992 certificates
of participation
1990 tax allocation
bonds
1993 tax allocation
bonds
Various general
, obligation bonds
Special assessment
bonds
1995 revenue
bonds 284,28
$1,432 $6,729
$ 150
$3,077518
2,947,170
421,665
3,389,387
1,015,770
6
8,293,735
$ 832,182
16,500
$199 54,666
9M
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30,1998
' 10. ' SEGMENT-INFORMATION FOR ENTERPRISE FUNDS
The City maintains two enterprise funds which provide water and sewer services. Segment
information for the year ended7une 30, 1998, was as follows:
I Total
' 11. DEFERRED COMPENSATION
The. City has made available to its employees a- deferred compensation plan, created in
' accordance with Internal Revenue Code Section 457. The plan, available to all City
employees;. permits' them to defer a portion of their salaryy to be deposite& in individual
investment accounts. Funds may be withdrawn by participants upon termination of
employment, retirement, or certified emergency. The plan is administered by an independent
plan administrator.
During the year ended June 30 1998, the plan was amended so Yhat the assets of the plan are
now held in trust for the exclusive benefit of the participants and their beneficiaries. Since
the plan assets are administered by an outside party and no longer subject to the claims of the
City's general creditors, in accordance with GASB Statement No: 32, Accounting and
Financial Reporting for Internal Revenue Code Section.457 Deferred Compensation Plans,
these assets ($6,875,974 at July 1, 1997) have been removed from the financial statements of
the City.
1 37
Enterprise
'
Water Fund
Sewer Fund
Funds
Operating Revenues
$ 9,442,748
$ 5
$14,717,871
'
Depreciation
1,093,967
413,534
1,507,501
Operating Income
(590,789)
196,955
(393,834)
Tax Revenues
510,795
510,795
Net Income
89,570
3,488
93,058
Total Assets
38,628,667
33,939,763
72
Plant, Property and
Equipment:
Additions
2,424,073
1,384,715
3,808,788
Deletions
Net Working Capital
72,238
8,116,351
1,378,691
14,211,995
1,450,929
22,328,346
Capital Contributions
1,591,555
1,591,555
Bonds and Other Long-
Term Liabilities:
Payable. from Operating
Revenues
6,307,877
6,307,877
1
Total Equity
29,797,566
33
63,367,993
' 11. DEFERRED COMPENSATION
The. City has made available to its employees a- deferred compensation plan, created in
' accordance with Internal Revenue Code Section 457. The plan, available to all City
employees;. permits' them to defer a portion of their salaryy to be deposite& in individual
investment accounts. Funds may be withdrawn by participants upon termination of
employment, retirement, or certified emergency. The plan is administered by an independent
plan administrator.
During the year ended June 30 1998, the plan was amended so Yhat the assets of the plan are
now held in trust for the exclusive benefit of the participants and their beneficiaries. Since
the plan assets are administered by an outside party and no longer subject to the claims of the
City's general creditors, in accordance with GASB Statement No: 32, Accounting and
Financial Reporting for Internal Revenue Code Section.457 Deferred Compensation Plans,
these assets ($6,875,974 at July 1, 1997) have been removed from the financial statements of
the City.
1 37
CITY OF. POWAY
Notes to Financial Statements (Continued)
June 30, 1998
12.
RETIREMENT PLAN
Plan Description: The City of Poway contributes to the California Public Employees
Retirement System (PERS), an agent multiple - employer public employee defined
benefit pension plan. PERS provides retirement and disability benefits, annual cost -of-
living adjustments, and death benefits to plan members and beneficiaries. PERS acts as
a common investment and administrative agent for participating public entities within
the State of California. Benefit provisions and all. other requirements are established by
state statute and City ordinance. Copies of PERS' annual financial report may be
obtained from their executive office: 400 P Street, Sacramento, CA 95814.
Funding Policy: Participants are.required to.contribute 7% (9% for safety employees) of
their annual covered salary. The City makes the contributions required of City
employees on their behalf and,for their account. The City is required to contribute at an
actuarially determined rate; the current rate is 8.142% for non -safety employees and 0%
for safety employees, of annual covered payroll. The contribution requirements of plan
members and the City are established and may be amended by PERS.
Annual Pension Cost: For the year ended June 30, 1998, the City's annual pension cost
of $1,266,247 for PERS was equal to the City's required and actual contributions. The
required contribution was determined as part of the June 30, 1996, actuarial valuation
using the entry age normal actuarial cost method. The actuarial assumptions included
(a) 8.5% investment rate of return (net of administrative expenses),;(b) projected annual
salary increases that vary by duration of service, and (c) 2% per cost -of- living
adjustments. Both (a) and (b) included an inflation component of 4.5 %. The actuarial
value of PERS assets was, determined usingtechniques that smooth the effects of short-
term volatility in the market value of investments over a four -year period (smoothed
market value). PERS unfunded actuarial. accrued liability is being amortized as a.level
percentage of projected payroll on a closed basis. The remaining amortization period at
June 30, 1998, is two years for safety employees, and thirteen; years for miscellaneous
employees.
Three -Year Trend Information For PERS ($ Amount In Thousands)
Fiscal
Annual Pension
,Percentage of
Year
Cost (APC)
APC Contributed
6/30/96
$1,622
100%
6/30/97
1,391
100%
6/30/98
1,266
100%
Net Pension
Obligation
38
n
6/30/96:
Misc.
Safety
1
1
I
I
I
$15,252
7.458
$18,397
8.772
$21.606
$16,585
7.136
$18,418
8.253
Total L6 $
Defined Contribution Pension Plan
—•
$1,333 91.9%
322 104.5%
• _I I .',]
$7,390 18.039%
1.606 (20.047 %)
$1.011 95.7% $8.995 (11.239 %)
$ 21 99'80% $6,732 0.308%
519 106.2% 1,669 (31.096 %)
(42-8- 0 8° $$ 4 3 °
The City provides pension benefits for all of its part-time employees through a defined
contribution plan. In a defined contribution plan, benefits depend solely on amounts
contributed to the,plan plus investment earnings. The plan is administered as part of the
Public Agency Retirement Systems (PARS). All part-time employees are eligible to
participate from the date,of employment. Federal legis lation,requires;contributions of at least
7.5 percent to a _retirement plan, and City Council resolved to match the employees'
contributions of 3.75 percent for employees hired prior to:.July 1, 1996. Employees hired
after July 1, 1996 pay 7.5% of the contributions. 'Me 'City s contributions for each employee
(and interest earned by the, accounts) are fully vested immediately.
For the year ended June 30, 1998, the Citys payroll covered by the plan was $471,919. The
City made.employer contributions of $6,929 (1.47 percent of current covered payroll), and
employees contributed $28,464 (6:03 percent of current covered payroll).
1 .39
Total
6/30/95:
Total
CITY OF POWAY
Notes to Financial Statements (Continued)
June30,1998
1
Schedule Of Furidine^Proeress For PERS ($ Amount In "Thousands)
(Most Recent Information Available)
Actuarial Unfunded
Accrued (Excess
UAAL as
Actuarial.
Actuarial
Liability Assets)
a % of
Valuation
Value of
(AAL) AAL Funded
Covered
Covered
Date,
Assets
Entr Age (UAAL) Ratio
Payroll
Payroll
(A)
(B) (B -A) (A/B)
(C)
I(B-A) /C]
6/30/94:
Misc.
$13,175
$15,017 $1,842 87.0%
$7,398
24.985%
'
Safety
6.621
6.589 32 100.0%
1.628
(1.951)
n
6/30/96:
Misc.
Safety
1
1
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I
$15,252
7.458
$18,397
8.772
$21.606
$16,585
7.136
$18,418
8.253
Total L6 $
Defined Contribution Pension Plan
—•
$1,333 91.9%
322 104.5%
• _I I .',]
$7,390 18.039%
1.606 (20.047 %)
$1.011 95.7% $8.995 (11.239 %)
$ 21 99'80% $6,732 0.308%
519 106.2% 1,669 (31.096 %)
(42-8- 0 8° $$ 4 3 °
The City provides pension benefits for all of its part-time employees through a defined
contribution plan. In a defined contribution plan, benefits depend solely on amounts
contributed to the,plan plus investment earnings. The plan is administered as part of the
Public Agency Retirement Systems (PARS). All part-time employees are eligible to
participate from the date,of employment. Federal legis lation,requires;contributions of at least
7.5 percent to a _retirement plan, and City Council resolved to match the employees'
contributions of 3.75 percent for employees hired prior to:.July 1, 1996. Employees hired
after July 1, 1996 pay 7.5% of the contributions. 'Me 'City s contributions for each employee
(and interest earned by the, accounts) are fully vested immediately.
For the year ended June 30, 1998, the Citys payroll covered by the plan was $471,919. The
City made.employer contributions of $6,929 (1.47 percent of current covered payroll), and
employees contributed $28,464 (6:03 percent of current covered payroll).
1 .39
Total
6/30/95:
n
6/30/96:
Misc.
Safety
1
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$15,252
7.458
$18,397
8.772
$21.606
$16,585
7.136
$18,418
8.253
Total L6 $
Defined Contribution Pension Plan
—•
$1,333 91.9%
322 104.5%
• _I I .',]
$7,390 18.039%
1.606 (20.047 %)
$1.011 95.7% $8.995 (11.239 %)
$ 21 99'80% $6,732 0.308%
519 106.2% 1,669 (31.096 %)
(42-8- 0 8° $$ 4 3 °
The City provides pension benefits for all of its part-time employees through a defined
contribution plan. In a defined contribution plan, benefits depend solely on amounts
contributed to the,plan plus investment earnings. The plan is administered as part of the
Public Agency Retirement Systems (PARS). All part-time employees are eligible to
participate from the date,of employment. Federal legis lation,requires;contributions of at least
7.5 percent to a _retirement plan, and City Council resolved to match the employees'
contributions of 3.75 percent for employees hired prior to:.July 1, 1996. Employees hired
after July 1, 1996 pay 7.5% of the contributions. 'Me 'City s contributions for each employee
(and interest earned by the, accounts) are fully vested immediately.
For the year ended June 30, 1998, the Citys payroll covered by the plan was $471,919. The
City made.employer contributions of $6,929 (1.47 percent of current covered payroll), and
employees contributed $28,464 (6:03 percent of current covered payroll).
1 .39
Misc.
.Safety
Total
n
6/30/96:
Misc.
Safety
1
1
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$15,252
7.458
$18,397
8.772
$21.606
$16,585
7.136
$18,418
8.253
Total L6 $
Defined Contribution Pension Plan
—•
$1,333 91.9%
322 104.5%
• _I I .',]
$7,390 18.039%
1.606 (20.047 %)
$1.011 95.7% $8.995 (11.239 %)
$ 21 99'80% $6,732 0.308%
519 106.2% 1,669 (31.096 %)
(42-8- 0 8° $$ 4 3 °
The City provides pension benefits for all of its part-time employees through a defined
contribution plan. In a defined contribution plan, benefits depend solely on amounts
contributed to the,plan plus investment earnings. The plan is administered as part of the
Public Agency Retirement Systems (PARS). All part-time employees are eligible to
participate from the date,of employment. Federal legis lation,requires;contributions of at least
7.5 percent to a _retirement plan, and City Council resolved to match the employees'
contributions of 3.75 percent for employees hired prior to:.July 1, 1996. Employees hired
after July 1, 1996 pay 7.5% of the contributions. 'Me 'City s contributions for each employee
(and interest earned by the, accounts) are fully vested immediately.
For the year ended June 30, 1998, the Citys payroll covered by the plan was $471,919. The
City made.employer contributions of $6,929 (1.47 percent of current covered payroll), and
employees contributed $28,464 (6:03 percent of current covered payroll).
1 .39
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30,1998
13. RETAINED EARNINGSTUND BALANCE RESERVES AND DESIGNATIONS
Reserves
The various reserves established as of June 30, 1998, are described below:
General Fund
Inventory $ 109;320
Advances to Other Funds 17,567;565
Total Reserved 17.676:885
SDecial'Revenue Funds
Notes Receivable $ 7,095
Deposits 4,969
Advances to Other Funds 10,414,418
Low and Moderate Income Housing 3.294,904
Total Reserved $13.721386
Debt Service Funds
Debt Service 9 -369 103
Capital Proiects Funds
Notes Receivable
$ 360,000
Deposits
10,969
Advances to Other Funds
125,660
Fixed Assets Held for Resale
2,074
Capital Projects
251,619
Total Reserved
Enterprise Funds
Debt Service 1 -7$ 13.415
Internal Service Fund
Equipment Replacement 219
40
r
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30,1998
' Trust and Agency Funds
Capital Projects 87 5
Reserve'forInventory:
Reserves have been established for inventory held by the General Fund (stationery, gasoline,
and maintenance supplies).
Reserve for Advances to Other Funds:
This reserve is established for long -term advances to other funds.
Reserve for Notes Receivable:
This reserve is established for long =term notes receivable..
'Reserve for Deposits:
This reserve is established for deposits to indicate that they are not available spendable
resources.
Reserve for Low and Moderate Income Housing:
This reserve is established for funds set aside to benefit low and moderate income housing
within the redevelopment area
Reserve for Debt Service:
Funds collected and interest earned on these funds are reserved for future principal and
'
..interest payments of general long -term debt.
Reserve for Fixed Assets Held for Resale:
'
This xeserve is established for fuzed assets the Redevelopment, Agency purchased for the
purpose of resale. Fund balance is reserved in an amount equal'to the carrying value of the
fixed' assets; held for resale because such assets are not available to finance the Agency's
operations.
Reserve for Capital Projects`
Principal from the nonexpendable trust is reserved for park expansion and is restricted.from
use until after the year,2006. Additional funding is reserved in the Capital Projects Fund for
continuing projects.
I 41
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1998
Reserve for Equipment Replacement:
This reserve is established for replacement of vehicles and equipment on a scheduled
program based on the estimated life of the vehicles and equipment.
Designations
Resolution 85 -038 passed by the City Council set aside all unreserved fund balance
($10,042,506) at June 30, 1998, of the General fund for future contingencies. The General
Fund contingencies are unfunded reserves for insurance, vacation and sick leave,
infrastructure replacement, and future contingencies designated by the City Council.
A portion of fund balance/retained earnings in all fund types in the amount of $272,658 has
been designated to equal the increase in certain investments in fair value relating to the
implementation of GASB 31. These funds are not currently available for use at this time.
The Gas Tax, Drainage, Maintenance District, Miscellaneous and Grants, and Proposition A
Special Revenue Funds unreserved fund balances are designated for capital projects.
14. INTERFUND RECEIVABLES/PAYABLES
Fund
Receivables
Pavables
General Fund
Special Revenue Funds:
Fire Protection
Street Improvement Fund
Drainage Fund
Miscellaneous and Grants Fund
Community Development Block Grant
Transportation Development Act
Proposition A Fund
Low Moderate Income Housing
Debt Service Fund
Redevelopment Agency
Capital Projects Fund:
Park Improvement Fund
High Valley Roads AD 996 -1 Fund
Redevelopment Area Fund
Water Enterprise Fund
Sewer Enterprise Fund
$17,738,415
2,466,944
2,094;731
11,000
$ 4,817
780,647
253,200
43,737
37,015
200,000
5,641,743
125,660
43,737
3,862,411
8,464,423
8,941,743
307,228
129,018
42
CITY OF POWAY
1 Notes to Financial Statements (Continued)
June 30, 1998
Fund Receivables Pavables
Agency Fund:
Parkway Business Center CID 488 -1
1 Bond Deposits 4,502,147
General Long-Term Debt
Account Group (Note 8) 25,649,512
' 15. INSURANCE (CLAIMS AND JUDGMENTS
The City of Poway is a member of the California Joint Powers Insurance Authority, a
consortium of approximately 77 California cities. The Authority's. governing board consists
of one member from each participating city and -is responsible for the selection of
management as well as,budgeting and finance. Insurance activities are financed by charges
to member cities, and no :long -term debt has been incurred. Actual annual premiums are
determined using a retrospective method. This annual premium includes estimates of
' amounts to be paid for.reported claims and incurred -but- not - yet - reported claims based upon
past experience, modified for current trends and information.
At June 30, 1998, the City self- insured for each loss the extent of $20,000. Between
$20,000 and $50,000,000, losses are shared by the participant cities.
' Because of the low deductible amounts of the self - insurance program, the City does not have
reserves or a sinking setup for its unpaid claims and judgments. They are expended as
they occur and the City intends to pay all of its unpaid claims and judgments from available
' financial resources.
There was no significant reduction in insurance coverage by major categories of risk from
fiscal: year 1996 -97 to fiscal year 1997 -98. Furthermore, there was no settlement which
exceeded the insurance coverage for the past three fiscal years.
'16. JOINT VENTURE
The City is a member of the Regional Solid Waste Association Joint Powers Authority
•, (JPA). "The: JPA was formed 'on September 1, 1997 by the Cities of Del Mar, Encinitas,
Lemon .Grove, National City, Solana Beach and Vista to provide stable, long' term, cost
effective options for all aspects of regional solid waste disposal. Each member provides a
proportionate percentage of revenue to cover all costs relate&to the obligations liabilities
of the JPA when they are'due and payable. In the event of dissolution of the JPA, any money
'�. or assets in" possession of the Regional Solid Waste Association after the payment of all
' 43
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1998
liabilities, costs, expenses and charges shall be distributed to the member agencies in
proportion to their contributions; determined as of the time of termination. The activities' of
the JPA are supervised by a board consisting of one elected member of the legislative body
of each of the member agencies. Summarized audited information of the JPA for the fiscal
year ended June 30, 1998 is as follows:
Total Assets $ 91,427
Liabilities 91,427
Fund Equity and Other Credits. $�
Revenues $258,505
Expenditures 258,505
Net Increase in Fund Equity $ _
The Citys share of the JPA's assets and liabilities are not available. Separate financial
statements of the JPA are available at the City of Poway.
17.
Expenditures of $2,169,175 of the City of Poway Debt Service. Fund exceeded the budget
appropriation of $2,141,270.
Expenditures of $17,414,390 of the City of:Poway Redevelopment Agency Debt Service
Fund exceeded the budget appropriation of $15,280,082.
The Transportation Development Act Special Revenue Fund had a deficit fund balance of
$90,731 at June 30, 1998, which is expected to be eliminated through future revenues.
The High Valley Roads AD#96 -1 Capital Projects .Fund had a deficit fund balance of
$129,018 at June 30, 1998, which is, expected to be eliminated through future revenues.
The Performing Art Center Expendable Trust Fund had a deficit fund balance of $8,775 at
June 30, 1998, which is expected to be eliminated through future revenues.
18.
a. In February 1987, the City issued $32,800,000 in Special Tax Refunding Bonds to
refired the outstanding portion of the,$30,000,000 South Poway Community Facilities
District No. 1 Special Tax Bonds Series '1985. The 1985 bonds were issued to finance
the acquisition of certain public improvements within South Poway Community
44
45
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CITY OF POWAY
Notes to Financial Statements (Continued)
June 30,1998
Facilities District No. 1. In May 1998, the City issued $34,445,000 in Special Tax
Refunding Bonds to refund the outstanding portion of the $30,000,000 and $8,000,000
\�
Communities Facilities District No. 88 -1, (Parkway Business Centre) Special Tax
Bonds, Series 1989 and (Parkway Business Centre) Special. Tax Bonds, Series 1990
respectively. The 1989 bonds were issued to finance the acquisition and construction of
1
certain public improvements within the District. The 1990 bonds were issued to finance
part =.of the costs of the acquisition and construction of public improvements within the
District. The bonds are authorized pursuant to the Mello -Roos Community Facilities
Act of 1982 and are secured by and payable from the proceeds of annual special
assessment taxes levied and collected on the property within the District. The Bonds are
'
not general or special! obligations of the City of Poway. The City is acting as agent only
for the property owners in collecting the special assessments and forwarding the
collections to the fiscal,agents. Neither the faith and credit nor the taxing power of the
City ispledged to the payment of these bonds.
At June 30, 1998 the 1987 and 1998 bonds outstanding were $26,880,000 and
$34,445,000, respectively.
The City has loaned $4 (including interest) to the,Parkway Business Center
CFD• #88 -1 Bond Deposits Agency Fund, to pay debt service which should have been
paid from special taxes revenues. A portion of the required reserve funds on the bonds
was used to pay debt.service payments on the bonds. During Fiscal Year 1996 -97 the
'
Community Facilities District (CID) 88 -1 held a special bondholders elections to
modify certain bond covenants. As a result, the bond, reserve requirement was reduced
from $3.8 million to $1.8 million, and the Fiscal Years 1992 -93 through 1995 -96
special taxes were forgiven. The $4,907,103 that the City loaned CID #881 to pay
debt service will be repaid by 1) payments to the City,by the developer based on a per lot
'
basis as lots are sold,. 2) payments to the City by the developer based on a sales price
basis as lots are sold, and. 3) if necessary, assessments to the property owners via the
special tax.
b. In June 1996, the City issued $ 586,470 Integrated Financing Assessment District No.
96 -1 (High Valley Roads) Limited Obligation Improvement Bonds to finance the; cost
of acquisition and construction of certain public infrastructure improvements benefiting
properties within the boundaries of the assessment district. The bonds are authorized
pursuant to the Improvement Bond Act of 1915 and are secured by and payable from
the proceeds of annual special assessment taxes levied and collected on the property
within the District. The Bonds are not general or special obligations of the City of
Poway. The City is acting as agent only for the property owners in collecting the special
assessments and forwarding the collections to the fiscal agent. Neither the faith and
credit nor'the taking power of the City is pledged to the payment of these bonds. At
June 30, 1998, the balance outstanding was $555,000.
45
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30,1998
19. DEFEASEMENT OF LONG -TERM DEBT
In September 1995, the City advance refunded $27,985,000 1991 Certificates of
Participation by placing an irrevocable trust . with an escrow agent amounts sufficient to meet
all future debt service payments of the refunded debt. As a result, the Certificates were
considered to be defeased and the liability was removed from the general long -term debt
account group. At June 30, 1998, $27,110,000 of the 1991 Certificates remained
outstanding.
In 1993 the Agency advance refunded $35,000,000 Tax Allocation Bonds Series 1989A and
$9,330,000 Tax Allocation Bonds, Issue; of 1991 by placing in an irrevocable trust;amounts
sufficient to meet all future debt service payments of the refunded debts. As a result, the
bonds were considered defeased and the liability was removed from the General Long -Term
debt account group. At June 30, 1998, $32,935;000 of the Tax Allocation Bonds, Series
1989A and $8,745,000 of the Tax Allocation Bonds, Issue of 1991 remained outstanding.
In 1992, the City advance refunded $10,650,000 1988 Certificates of Participation by
placing in an irrevocable trust amounts sufficient to meet all future debt service payments of
the refunded debt. As a result, the 1988 Certificates of Participation were considered
defeased and the liability was removed from the general long -term debt account group. The
Certificates were called on June 1, 1998.
20. COMMITMENTS AND CONTINGENCIES
a. On March 22, 1997, the. :Poway Redevelopment Agency entered into an Owner
Participation Agreement with 'a developer with regards to a certain parcel of real
property located in the Project Area within the boundaries of CFD 88 -1. In order to
partially fund debt service on the CFD Bonds (see note 17a) and to provide for the
funding of certain public improvements associated with the project, the Agency shall
pay the developer on each annual payment date an amount equal toAhe gross property
tax increment allocated to and received by the Agency with respect to the site less the
housing set aside and the County and City administrative charges for the previous fiscal
year ending June 3e preceding the annual payment date.
b. The City is a defendant in certain legal actions arising in the normal course of
operations. In the opinion of management and legal counsel, any liability resulting from
those actions will not result in a material adverse effect on the City's financial position.
CCl
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1 47
i
CITY OF POWAY
i
Notes to Financial Statements (Continued)
June 30, 1998
21. PRIOR PERIOD ADJUSTMENTS
'
The City has implemented Governmental Accounting Standards Board. Statement No. 31,
Accounting and Financial Reporting for Certain. Investments and for External Investment
Pools. Consequently, beginning fund balances and
retained earnings have been restated to
present investments:at fair,value,as of July 1, 1997.
The table below presents the effect on
fund balances and retained earnings by fund type.
Balance as
Prior
Previously
Period Balance as
i Fund
Tye Reported
Adjustment Restated
General Fund $25,320,498
$ (2,610) $25,317
Special: Revenue Funds 20,252,027
(179,942) 20,072,085
Debt Service Funds 17,884,948
(13,147) 17,871,801
Capital Projects Funds 19,621,299
(376,766) 19,244,533
Enterprise Funds 54,129,665
(10,287) 54,119,378
Internal Service Fund 2,893,753
(1,309) 2,892,444
Fiduciary Funds
(Nonexpendable Trusts) 900,723
(373) 900,350
Fiduciary Funds
(E)pendable Trusts) 8,863
(7) 8,856
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SUPPLEMENTARY INFORMATION
ul: I►II► : ►11 1►II \ /11 5111011
AND ACCOUNT GROUP
FINANCIAL • STATEMENTS AND SCHEDULES
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GENERAL FUND Used to account for all of the general revenues of the City
not specifically levied or collected for other City funds,
and for the expenditures related to the rendering of
general services by the "City. The General Fund is used to
account for all resources not required to be accounted for
in another fund.
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1 51
CITY OF POWAY
Comparative Balance Sheets
General Fund
June 30, 1998
Assets
1998
1997
Cash and investments
$ 9,421,837
$ 6,244,658
Receivables (Net of allowance
939,657
900,748
for uncollectibles):
67,487
92,200
Taxes
1,064,347
909,508
Accounts
360,735
195,943
Interest
917,398
893,418
Due from other governments
342,678
266,369
Due from other funds
170,850
18,667,520
Inventory, at cost
109,320
93,857
Advances to other funds
17,567,565
18,667,520
Restricted cash and investments
100,000
100,000
Total Assets
$ 30,054,730
$ 27,371,273
Liabilities and Fund Balance
Liabilities:
Accounts payable
$ 1,287,858
$ 1,060,437
Accrued liabilities
939,657
900,748
Deposits
67,487
92,200
Total Liabilities
2,295,002
2,053,385
Fund Balance:
Reserved:
Inventory
109,320
93,857
Advances to other funds
17,567,565
18,667,520
Unreserved:
Designated for fair value adjustment
40,337
Designated for contingencies
10,042,506
6,556,511
Total Fund Balance
27,759,728
25,317,888
Total Liabilities and Fund Balance
$ 30,054,730
$ 27,371,273
52
CITY OF POWAY
Statement of Revenues, Expenditures and Changes in Fund.Balance
Budget and Actual
General Fund
'
For the Year Ended June 30, 1998
1998
1997
Variance
Favorable
Budget
Actual
(Unfavorable)
Actual
Revenues:
Taxes
$ 9,082,070
$ 10,433,119
$ 1,051,049
$ 8,897,190
Licenses and permits
Intergovernmental
285,250
1,898,498
257;818
2,087,767
(27,432)
189,269
281,610
1,892,528
Charges`forservices
5,677,536
6;253837
576,301
5,037,172
Fines and forfeitures
70,000
86,273
16,273
71,477
Interest and rentals
1,024,210
1,359,029
334;819
1,035,247
Other
268,918
372,938
104,020
378,946
Total Revenues
18,306,482
20;550,781
2,244,299
17,594,170
Expenditures:
Current:
General government
4,237,003
4,119,614
117,389
3,446,720
Public safety
9,532,127
9,333,832
198,295
8,884,438
-�' Public
works
1,454,603
1;368,133
86,470
1,353,694
Community services
2,947,469
2 761,964
185,505
2,652,521
Capital expenditures
Debt service:
1,697,234
1,255,900
441,334
1,325,308
Principal
32,979
32,979
30,376
Interest
2,826
2,826
5,429
Total Expenditures
19,904,241
18,875,248
1,028,993
17,698,486
Excess (Deficiency) of
Revenues Over
Expenditures
(1,597,759)
1,675,533
3,273,292
(104,316)
Other Financing Sources (Uses):
Operating transfers in
777,230
1,496,570
719,340
1,021,378
Operating transfers (out)
(690,000)
(730,263)
(40,263)
(672,992)
Total Other Financing
Sources (Uses)
87,230
766,307
679,077
348,386
Excess (Deficiency) of
Revenues and Other
Sources Over
Expenditures and
Other Uses
(1,510,529)
2,441,840
3,952,369
244,070
25,317,888
25,073,818
Fund Balance, Beginning (Restated)
.25,317,888
'
Fund Balance, Ending
$ 23,807,359
$ 27,759,728
$ 3,952,369
$ 25,317,888
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SPECIALAEVENUE FUNDS
Fire ProtectiorFund Used to account for revenues received from the Fire
Protection Special Tax. Voters approved this special
tax in June 1997. It. is used to pay for a portion of the
costs of fire protection within the City of Poway.
Gas Tax Fund Used to account for revenues received and
expenditures made for street maintenance. Financing
is provided by the CiWs share of State gasoline taxes
made pursuant to the California State Constitution and
authorized by the State'Legislature.
Street Improvement Fund Used to account for revenues received and
expenditures made for street improvements. , Financing
is provided primarily from developer's traffic
mitigation fees. City Ordinance No. 80 authorized the
collection and the segregation of the funding.
Drainage Fund Used to account for operations of the flood control
and drainage division. Financing is provided by
developers drainage fees and flood zone fees from the
County. Poway Municipal Code Section 16.72
requires the segregation of the funding.
Maintenance District 83 -1 Fund Used for landscape and maintenance of a noise buffer.
Costs of the projects are estimated and property
owners are assessed their proportionate share based on
acreage owned. The assessments are collected via the
tax rolls.
Miscellaneous and Grants Fund Used to account for grants from various agencies used
for operations and maintenance, and to .account for
specific in -lieu fees from developers. Financing for
grants is provided by the State, County and Federal
Government. Such grants provide for payment of all
current operating costs and may be used only for
specified purposes.
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SPECIAL REVENUE FUNDS (Continued)
Community'Development Used to account for revenues received and
�. Block0rantFund expenditures made for community development and
housing assistance. Financing is provided under
agreement with the County whereby the City is a
secondary recipient with funds made available from
the U.S. Department of Housing and Urban
Development under the Housing and Community
Development Acts of 1974 and 1977.
Transportation Development Used to account for revenues received and
1 Act Fund expenditures made for transportation development,
transit and related studies. Funding is provided to the
City as secondary recipient under agreements with the
County and with the San Diego Association of
Governments.
Proposition A Fund To account for the San Diego County special
Proposition A one -half (1/2) cent transportation sales
tax which became effective July 1, 1988. All revenues
of this fund must be expended for certain
transportation - related purposes.
Royal Mobilehome Park Used to account for revenues received and
Administration Fund expenditures made in the administration of the Royal
■ Mobilehome Park.
Low and Moderate Income
Housing Fund
Used to account for funds restricted for low and
moderate income housing financial activity.
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CITY OF POWAY
Combining Balance Sheet - All Special Revenue Funds
June 30, 1998
Total Assets $ 4,817 $ 654,858 $ 4,436,719 $ 2,949,564
Liabilities and Fund Balances
Liabilities
Accounts payable
Fire Street
$ 1,110
Assets
Protection Gas Tax Improvement
Drainage
Cash and investments
$ 541,222 $ 1,957,711
$ 853,233
Taxes receivable
$ 4,817
Accounts receivable
113,636
Interest receivable_
Advances from other funds
Notes receivable
7,095
Total Liabilities
Due from other funds
781,757
293,029
Due from other governments
1,600
Deposits
4,969
Advances to other funds
2,466,944
2,094,731
Total Assets $ 4,817 $ 654,858 $ 4,436,719 $ 2,949,564
Liabilities and Fund Balances
Liabilities
Accounts payable
$417,082
$ 1,110
$ 12,104
Accrued liabilities
35,392
7,351
Due to other funds
$ 4,817
Deferred revenue
20,374
Advances from other funds
780,647
253
Total Liabilities
4 452,474
781,757
293,029
Fund Balances:
Reserved:
Notes receivable
7,095
Deposits
4,969
Advances to other funds
2,466,944
2,094,731
Low and moderate
income housing
Unreserved:
Designated for:
Capital projects
201,760
558,740
Fair value adjustment
624
6,609
3,064
Undesignated
1,169,345
Total Fund Balances
202,384
3,654,962
2,656,535
Total. Liabilities and
Fund Balances
$ 4,817 $ 654,858
$ 4,436,719
$ 2,949,564
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Community Transportation
Maintenance Miscellaneous Development Development 'Proposition
District 83 -1 and Grants Block. Grant Act A
$ 4,_140,094 $ 804,749 $ 5,576 $ 1,563,685
18,882
Royal Mobile -
home Park
Administration
$ 2,408,991
212,500 45,625
11,000 200,000
$ 4,158,076 $ 1,028,249 $ 51,201 $ - $ 1,763,685 $ 2,408,991
$ 225,069 $ 13,142 $ 5;184 $ 53,716
43,737 37,015
225,069 13,142 48,921 90,731
11,000
$ 200,000
$ 138,256.
1,558
139,814
3;921,312 1,002,663 1,554,817
12,595 1,444 314 8,868 8,010
2,280 91,045 2,261,167
3,933,907 1,015,107 2,280 90,731 1,763,685 2;269,177
$4,158,976 $ 1,028,249 $ 51;201 $ - $ 1,763,685 $
(Continued)
59
CITY OF POWAY
Combining Balance Sheet - All Special Revenue Funds (Continued)
June 30, 1998
Low and
Moderate
Income Totals
Assets Housing 1998 1997
Cash and investments
Taxes receivable
Accounts receivable
Interest receivable
Notes receivable
Due from other funds
Due from other governments
Deposits
Advances to other funds
$ 3,325,170
3,288
18,850
5,641,743
$ 15,600,431
23,699
113,636
3,288
7,095
278,575
4,969
10,414,418
$:22,358,220
127;146
77,577
40,803
7,095
66,646
171,977
4,969
4,772,675
Total Assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Deferred revenue
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Notes receivable
Deposits
Advances to other funds
Low and moderate
income housing
Unreserved:
Designated for:
Capital projects
Fair value adjustment
Undesignated
Total Fund Balances
Total Liabilities and
Fund Balances
$ 8,989,051 $ 26,446,111 $ 27,627
$ 52,404 $ 918,067 $ 6,270,884
44,301
38,801
■
85,569
62,662
20,374
20,374
,
1,033,847
1,162,302
52,404 2,102,158
7,555,023
,
5,641,743
3,294,904
7,095
4,969
10,414,418
3,294,904
7,239,292
41,528
3,341,747
3,829,855
8,936,647 24,343,953 20,072,085
$ 8,989,05.1 $-26;446,111 $ 27,627,108
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7,095
4,969
4,772,675
4,853,248
6,604;243
3,829,855
8,936,647 24,343,953 20,072,085
$ 8,989,05.1 $-26;446,111 $ 27,627,108
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CITY OF POWAY
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
All Special Revenue Funds
For the Year Ended June 30, 1998
Fire
Street
Protection
Gas Tax
Improvement
Drainage
Revenues:
,
Taxes
$ 352,529
Intergovernmental
$ 871,167
Charges for services
$ 537,092
Interest and rentals
9,887
$ 115,638
71,197
Developer fees
80,869
43,380
Other
3,934
,
Total Revenues
537,092
881,054
196,507
471,040
Expenditures:
Current:
General government
Public works
872,050
274,854
Community services
Capital expenditures
85,770
5,506
83,210
,
Total Expenditures
957
5,506
358,064
Excess (Deficiency) of
Revenues Over
Expenditures
537,092
76,766
191,001
112,976
Other Financing Sources (Uses):
Operating transfers in
23,084
,
Operating transfers out
537,092
Total Other Financing
Sources (Uses)
537,092
23,084
Excess (Deficiency) of
i
Revenues and Other
Sources Over
Expenditures
'
and Other Uses
(53,682)
191,001
112,976
Fund Balances, Beginning (Restated)
256,066
3,463,961
2,543,559
Fund Balances (Deficit), Ending
$ -
$ 202,384
$ 3,654,962
$ 2,656,535
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3,520,098
1,033,808 1,125,791
632,744 719,062 225,888 348,550 10,382 607,324
1,666,552 719,062 225,888 348,550 3,530,480 1,733,115
349,955 84,982
35,430 74,208
(62,030)
35,430 12,178
(348, 082 ) 122,365 1,252, 582
(1,746,604)
(1,746,604)
385;385 97,160 (348,082) 122,365 (494,022)
3,548,522 917,947 2,280 257,351 1,641;320 2,763,199
$ 3,933;907 $ 1,015,107 $ 2,280 (2L7311 $ 1,763,685 $ 2,269,177
(Continued)
63
Miscel-
Community
Transportation
Royal Mobile -
Maintenance
laneous and
Development
Development
Proposition
home Park
District 83 -1
Grants
Block Grant
Act
A
Administration
$ 155,666
$ 616,019
$ 225,888
$ 3,504,624
1,614
223,083
7,524
$ 468
148,221
$ 2,985,697
179,861
23,530
640
2,016,507
804,044
225,888
468
3,652,845
2,985,697
3,520,098
1,033,808 1,125,791
632,744 719,062 225,888 348,550 10,382 607,324
1,666,552 719,062 225,888 348,550 3,530,480 1,733,115
349,955 84,982
35,430 74,208
(62,030)
35,430 12,178
(348, 082 ) 122,365 1,252, 582
(1,746,604)
(1,746,604)
385;385 97,160 (348,082) 122,365 (494,022)
3,548,522 917,947 2,280 257,351 1,641;320 2,763,199
$ 3,933;907 $ 1,015,107 $ 2,280 (2L7311 $ 1,763,685 $ 2,269,177
(Continued)
63
CITY OF POWAY
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
All .Special Revenue Funds (Continued)
For the Year Ended June 30, 1998
Revenues:
Taxes
Intergovernmental
Charges for services
Interest and rentals
Developer fees
Other
Low and
Moderate
Income
Housing 1
Totals
1997
$ 486,415
3,021,362
1,791,281
3,911,310
848,479
22,298
Total Revenues
Expenditures:
Current:
General government
Public works
Community services
Capital expenditures
Total Expenditures
Excess (Deficiency) of
Revenues Over
Expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total Other Financing
Sources (Uses)
Excess (Deficiency) of
Revenues and Other
Sources Over
Expenditures
and Other Uses
Fund Balances, Beginning (Restated)
Fund Balances (Deficit), Ending
$ 508,195
5,217,698
2,151,320
$ 1,307,629 4,869,344
304,110
47,779 75,883
1,355,408 13,126,550 10,081,145
211,042 211,042
181,247
4,667,002
3,308,025
2,159,599
2,415,587
3,743,383 6,461,819
7,373,887
3,954,425 13,499,462 13,278,746
(2,599,017) (372,912)_ (3,197,601) 1
9,311,070 9;443,792 2,363,378 ,
(2,453,286) (4,799,012) (3,634,159)
6,857,784 4,644,780 (1,270,781)
4,258,767 4,271,868 (4,468,382)
4 20,072,085 24,540;467 ,
$ 8,936;647 $.24,343,953 $ 20,072
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CITY OF POWAY
Statement Revenues, Expenditures, and Changes iwFund Balance
Budget and Actual
Fire Protection Special Revenue: Fund
For the Year Ended June,30, 1998
Excess (Deficiency.) of
Revenues Over
Other Uses.
Fund Balance, Beginning
Fund Balance,: Ending $ - $ - $ $ -
,�7
1998
1997
Variance
Favorable
Budget
Actual
( Unfavorable ) Actual
Revenues:
Charges for services
$ 525,000
$ 537,092
$ 12,092
Other Financing.(Uses);
Operating transfers out
525,000
537,092
12,092)
Excess (Deficiency.) of
Revenues Over
Other Uses.
Fund Balance, Beginning
Fund Balance,: Ending $ - $ - $ $ -
,�7
CITY OF-POWAY
Statement of Revenues, Expenditures, and Changes in' Fund Balance
Budget and Actual
Gas Tax Special Revenue Fund
For the Year Ended June 30, 1998
Expenditures:
Current:
Public works 918,190 872,050 46,140 1,071,590
Capital expenditures 124,438 85,770 38,668 1,293
Total Expenditures 1,042,628 957,820 84;808 1,072,883
Deficiency of Revenues
Over Expenditures (171,738) (76,766) 94,972 (213,691)
Other Financing Sources:
Operating transfers in 23,084 23,084
Deficiency of Revenues
and Other Sources
Over Expenditures (171,738) (53,682) 118;056 (213,691)
Fund Balance, Beginning
256,066
1998
469,757
1997
Fund Balance, Ending
$ 84 328
$ 202,384
Variance
Favorable
Budget
Actual
nfavorable
Actual
Revenues:
Intergovernmental
$ 870,890
$ 871,167
$ 277 $
859,192
Interest
9,887
9,887
Total Revenue
870,890
881,054
10,164
859,192
Expenditures:
Current:
Public works 918,190 872,050 46,140 1,071,590
Capital expenditures 124,438 85,770 38,668 1,293
Total Expenditures 1,042,628 957,820 84;808 1,072,883
Deficiency of Revenues
Over Expenditures (171,738) (76,766) 94,972 (213,691)
Other Financing Sources:
Operating transfers in 23,084 23,084
Deficiency of Revenues
and Other Sources
Over Expenditures (171,738) (53,682) 118;056 (213,691)
Fund Balance, Beginning
256,066
256;066
469,757
Fund Balance, Ending
$ 84 328
$ 202,384
$ 118 $ 256
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CITY u POwAY
Statement of Revenues, Expenditures; and,Changes.in Fund Balance
'• BudgetandActual
Street'ImprovementSpecial Revenue Fund
For the Year Ended June.30, 1998
1
Revenues:
Interest and rentals
Developer fees
' Total Revenues'
Expenditures:
Current:
Public works
Capital expenditures
Total Expenditures
10,649
1,016,101 5;506 1,010,595 5
1,016,101 5,506 1,010,595 16,313
Excess ,(Deficiency)•of
Revenues Over
Expenditures (885,311) 191,001 1,076,312 784,528
' Fund Balance, Beginning (Restated) 3,463,961 3,463,961 .2,679,433
Fund Balance, Ending $ 2,578,650 $ 3,654,962 $ 1,076,312, $ 3,463,961
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1997
Variance
Favorable
Budget
Actual:
(Unfavorable)
Actual
$ 60,390
$ 115,638
$ 55,248
$ 68,647
70,400
80,869,
10
732,194
130,790
196
65,717
800,841
10,649
1,016,101 5;506 1,010,595 5
1,016,101 5,506 1,010,595 16,313
Excess ,(Deficiency)•of
Revenues Over
Expenditures (885,311) 191,001 1,076,312 784,528
' Fund Balance, Beginning (Restated) 3,463,961 3,463,961 .2,679,433
Fund Balance, Ending $ 2,578,650 $ 3,654,962 $ 1,076,312, $ 3,463,961
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Statement of Revenues, Expenditures,: and Changes in Fund Balance
Budgetand Actual
Drainage Special, Revenue Fund
For the Year Ended June 30, 1998
Expenditures:
Current:
Public works 300,423 274,854 25,569 287,250
Capital expenditures 866,115 83,210 782,905 440,890
Total Expenditures
1,166,538
1998
808 728,140
1997
Excess (Deficiency) of
Vanance
Revenues Over
Favorable
Expenditures
Budget
Actual
( Unfavorable )
Actual
Revenues:
2,543,559
2,543,559
2;835;821
Taxes
$ 351,890
$ 352,529
$ 639 $
342,397
Intergovernmental
28,424
Interest and rentals
60;890
71,197
10,307
46,059
Developer fees
60,000
43,380
(16,620)
Other
3,934
3,934
18,998
Total Revenues
472,780
471,040
(1,740)
435,878
Expenditures:
Current:
Public works 300,423 274,854 25,569 287,250
Capital expenditures 866,115 83,210 782,905 440,890
Total Expenditures
1,166,538
358,064
808 728,140
'
Excess (Deficiency) of
Revenues Over
Expenditures
(693,758)
112,976
806,734 (29
,
Fund Balance, Beginning (Restated)
2,543,559
2,543,559
2;835;821
Fund Balance, Ending
$ 1,849,801
$ 2,656,535
$ 806,734 $ 2,543;559
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'
Statement of Revenues,
Expenditures,
and Changes in Fund Balance
Budget and Actual.
Maintenance District 83 -1 Special Revenue Fund
For the Year Ended June 30, 1998
1998
1997
Variance
Favorable
Budget
Actual
(Unfavorable)
Actual
Revenues:
Taxes
$ 150,920
$ 155,666
$ 4,746
$ 144,018
Charges for services
1,681,910
1,614,228
(67,682)
1,791,281
Interest and rentals
76,380
223,083
146,703
164,270
Other
72,480
23,530
(48,950)
19,436
'
Total Revenues
1,981,690
2,016,507
34,817
2,119,005
Expenditures:
Current:
Community services
1,393,084
1,033,808
359,276
1,374,707
Capital expenditures
1,387,751
632,744
755,007
19,399
Total Expenditures
2,780,835
1,666;552
1,114,283
1,394,106
Excess (Deficiency) of
Revenues Over
Expenditures
(799,145)
349,955
1,149,100
724,899
Other Financing Sources:
'
Operating transfers in
35,430
35
Excess (Deficiency) of
'
Revenues and Other
Sources Over Expenditures
(763,715)
385,385
1,149,100
724,899
1
3,548,522
2,823,623
Fund Balance, Beginning (Restated)
3,548,522
Fund Balance, Ending
$ 2,784,807
$ 3,933,907
$ 1,149,100
$ 3,548,522
69
CITY OFPOWAY
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Miscellaneous and Grants Special Revenue Fund
For the Year Ended June 30, 1998
Revenues:
Intergovemmental
Interest
Developer fees
Other
Total Revenues
Expenditures:
Capital expenditures
Excess (Deficiency) of
Revenues Over
Expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total Other Financing
Sources (Uses)
Excess (Deficiency) of
Revenues and Other
Sources Over
Expenditures and
Other Uses
(167,743) 84,982 252,725 157,791
74,208 74,208 27,990
(62,030) 62,030 (30,676
12,178 12,178 2,686)
(167;743) 97,160 264,903 155,105
Fund Balance, Beginning (Restated)
1998
917,947
1997
Fund Balance, Ending
$ 750,204
Variance
$ 917,947
Favorable
Budget
Actual
(Unfavorable)
Actual
$ 796,308
$ 616,019
$ (180,289)
$ 252,672 .
13,920
7,524
(6,396)
90,000
179,861
89,861
97,287
640
640
900,228
804,044
(96,184)
349,959
1,067,971
719,062
348,909
192,168
(167,743) 84,982 252,725 157,791
74,208 74,208 27,990
(62,030) 62,030 (30,676
12,178 12,178 2,686)
(167;743) 97,160 264,903 155,105
Fund Balance, Beginning (Restated)
917,947
917,947
762,842
Fund Balance, Ending
$ 750,204
$ 1,015,107 $ 264,903
$ 917,947
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CITY OFT WAY
Statement of Revenues „Expenditures, and Changes inTund- Balance
Budgevand Actual
Community Development Block Grant Special Revenue, Fund
For the Year Ended June 30, 1998
Revenues:
Intergovernmental
Expenditures:
Capital expenditures
Excess (Deficiency) of
Revenues.Over
Expenditures
Other Financing (Uses):
Operating transfers out
Excess (Deficiency) of
Revenues Over
Expenditures and
Other Uses
1998 1997
Variance
Favorable
Budget Actual nfavorable) Actual
$ 261,400 $.225,888 $ (35,512) $ 299,964
428,098 225,888 202,210 299,572
(166,698)
166,698 392
83,578
(166,698)
166,698 (83,186)
Fund Balance, Beginning
2,280
2
85,466
Fund Balance, Ending
$ (164,418) $
2;280
$ 166;698 $ 2,280
71
CITY OF:POWAY
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Transportation Development Act Special Revenue
For the Year Ended June 30, 1998
Excess (Deficiency) of
Revenues Over
Expenditures (306,030) (348,082) (42,052) 236
Other Financing (Uses):
Operating transfers out 10,000)
Excess (Deficiency) of
Revenues Over
Expenditures and
Other Uses (306 ;030) (348,082) (42 226
Fund Balance, Begin riing (Restated)
257,351
1998
31,007
1997
$ 48,679
$ 90,731 $ >(42 ;052
$257,351
Variance
Favorable
Budget
Actual
( Unfavorable )
Actual
Revenues:
Intergovernmental
$ '73,300
$ (73,300)
$ 371,401
Interest and rentals
8,570
$ 468
8,102
3 :964
Total Revenues
81,870
468
(81,402),
375,365
Expenditures:
Capital expenditures
387;900
348,550
39,350
139,021
Excess (Deficiency) of
Revenues Over
Expenditures (306,030) (348,082) (42,052) 236
Other Financing (Uses):
Operating transfers out 10,000)
Excess (Deficiency) of
Revenues Over
Expenditures and
Other Uses (306 ;030) (348,082) (42 226
Fund Balance, Begin riing (Restated)
257,351
257,351
31,007
Fund Balance (Deficit), Ending
$ 48,679
$ 90,731 $ >(42 ;052
$257,351
72
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CITY OF POWAY
'
Statement of Revenues, Expenditures,,and'.Changes in Fund Balance
Budget and - Actual
Proposition
A Special Revenue fund
For the Year Ended June 30,1998
1998
1997
Variance
Favorable
Budget Actual
( Unfavorable )
Actual
Revenues:
Intergovernmental
$ 3,485;000 $ 3,504,624
$ 19 ;624.
$ 1,209,709
Interest and rentals
59,300 148,221
88,921
85,454
Total Revenues
3,544,300 3
108,545
1,295,163
Expenditures:
Current:
Public works
3,852,909 3,520,098
332,811
1,938,536
Capital expenditures
147,233 10,382
136,851
121,249
Total Expenditures
4,000,142 3,530 ;480
469,662
2,059,785
Excess (Deficiency).of
Revenues Over -
'
Expenditures
(455,842) 122,365
578,201
(764,622)
Fund Balance, Beginning (Restated)
1,641,320 1,641,320
2,405,942
Fund. Balance, Ending
$ 1,185,478 $ 1,763,685
$ 578,207
$ 1,641,320
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CITY OF POWAY
Statement of Revenues, Expenditures and.Changes in Fund,Balance
Budget and Actual
Royal Mobilehome Park Administration Special Revenue Fund
For the Year Ended June 30, 1998
Revenues:
Interest and rentals
Expenditures:
Current:
Community services
Capital expenditures
Total Expenditures
Excess of Revenues
Over Expenditures
Other Financing (Uses):
Operating transfers out
Excess (Deficiency) of
Revenues Over
Expenditures and
Other Uses
1998 1997
Variance
Favorable
Budget Actual ( Unfavorable ) Actual
$ 2 $ 2;985,697 $ 15,847 $ 2,901,247
1,388,382 1,125,791 262,591 1,040,880
697,144 607,324 89
2;085,526 1,733,115 352;411 1,040,880
884,324 1,252,582 368,258 1,860,367
(1,733,690) (1,746,604) 12 ;914 (1,683,879)
(849,36.6) (494,022) 355,344 176,488
Fund Balance; Beginning (Restated)
2,763,199
2,763,199
2,586,711
Fund Balance, Ending
$ 1,913,833
$ 2,269,177
$355,344 $ 2,763,199
74
CITY OF POWAY
' Statement of Revenues„ "Expenditures, and Changes in Fund Balance
Budget and Actual.
Low and Moderate Income Housing Special Revenue Fund
For the Year Ended June 30, 1998
r
Operating transfers in
Revenues:
'
Interest and rentals
Other
'
Total Revenues
Expenditures:
Current:
General.government.
Capital expenditures
Total Expenditures
Deficiencydof Revenues
Over Expenditures
Other Financing Sources (Uses)
1998 .1997
Variance
Favorable
Budget Actual (Unfavorable Actual
$ 1,391,574 $ 1,307,629 $ (83,945) $ 641,669
47,779 47,779 2,862
1,391,574 1,355,408 36,166 644,531
272,698 211,042 61,656 181,247
4,439,602 3,743 696,219 6,154,631
4,712,300 3,954,425 757,875 6,335,878
(3,320,726) (2,599,017) 721,709 (5,691,347)
9, 195,236 .9,311,070 115,834" 2,335,388
(1,772,580) (2,453,286) 680,706 1,826;026)
7,422,656 6,857,784 564,872 , 509,362
4,101,930 4,258,767 156,837 (5,181,985)
Fund Balance, Beginning 4,677,880 4,677,880 9,859,865
,- Fund BalanceEnding $ 8,779,810 $ 8,936,647 $ 156;837 $ 4,677,880
' 75
Operating transfers in
Operating transfers out
'
Total Other Financing
Sources (Uses)
'
Excess(Deficiency) of "
Revenues. and Other
Sources Over
Expenditures and
Other Uses
1998 .1997
Variance
Favorable
Budget Actual (Unfavorable Actual
$ 1,391,574 $ 1,307,629 $ (83,945) $ 641,669
47,779 47,779 2,862
1,391,574 1,355,408 36,166 644,531
272,698 211,042 61,656 181,247
4,439,602 3,743 696,219 6,154,631
4,712,300 3,954,425 757,875 6,335,878
(3,320,726) (2,599,017) 721,709 (5,691,347)
9, 195,236 .9,311,070 115,834" 2,335,388
(1,772,580) (2,453,286) 680,706 1,826;026)
7,422,656 6,857,784 564,872 , 509,362
4,101,930 4,258,767 156,837 (5,181,985)
Fund Balance, Beginning 4,677,880 4,677,880 9,859,865
,- Fund BalanceEnding $ 8,779,810 $ 8,936,647 $ 156;837 $ 4,677,880
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DEBT SERVICE FUNDS Used to account for accumulation of resources for
the payment of interest and principal of ,general
long -term debt.
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CITY OF POWAY
Combining Balance Sheet
All Debt Service Funds
June 30, 1998
Assets
Cash and investments
Taxes receivable
Interest receivable
Loan receivable
Restricted assets:
Cash and investments
with fiscal agents
Total Assets
City of
Poway
City of Redevelopment
Poway Agency
$ 3,737,159
9,678
$ 773,214
572,472
109,199
1,200
Totals
1998 1997
$ 4,510,373 $ 3
572,472 389,308
118 102,178
1,200 1,800
2,351,582
10,769,131
13,120,713
13,437,006
$ 6,098,419
$ 12,225,216
$ 18,323,635
$ 17,873,851
Liabilities and Fund Balances
Liabilities:
Accrued liabilities $ 151
Advances from other funds
Total Liabilities
Fund balances:
Reserved:
Debt service
Unreserved:
Designated for
fair value adjustment
Total Fund Balances
Total Liabilities and
Fund Balances
151
6,085,630
$ 151 $ 2,050
$ 8,941,743 8,941
8,941,743 8,941,894 2,050
3,283,473 9,369,103 17,871,801
12,638 12,638
6,098,268 3,283,473 9,381,741 17,871,801
$ 6,098,419 $ 12,225,216 $ 18,323,635 $ 17,873,851
78
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CITY OF POWAY
Combining Statement of Revenues, Expenditures, and
Changes,in Fund Balances - All Debt Service Funds.
For.the Year Ended June 30 1998
Revenues:
Taxes
Interest and rentals
Other
City of
Poway
City of Redevelopment
Poway Agency,
$ 12,379,735
605,419
Totals
1998 1997
$ 12,379,735 $ 11,557,834
955,358 959,873
3,192
Total Revenues
Expenditures:
Debt service:
Principal
Interest and fiscal charges
'Bond issuance costs
Tax increment reimbursement
Total Expenditures
(Deficiency) of Revenues
Over Expenditures
$ 349,939
349,939 12,985,154 13,335,093 12,520,899
695,000 5,656,970 6,351,970 6,150,497
1,451,762 11,681,302 13,133,064 12,242,380
22,413 22,413 .167,733
76,118 76,118
2,169,175 17,414,390 19,583,565 18,560,610
(1,819,236) (4,429,236) (6,248;472) (6,039,711)
Other Financing Sources (Uses):
Proceeds from long -term debt 2,307;457 2,307,457 2,953,770
Operating transfers in 1,786,890 4,067,026" 5,853,916 5,553,220
Operating transfers out (10,402 (10,402;961) (4,024,473)
Total Other Financing
Sources (Uses)
(Deficiency) of Revenues
and Other Sources
Oyer Expenditures
and Other Uses
Fund Balances, Beginning
(Restated)
Fund Balances, Ending
1,786,890 (4,028,478) (2,241;588) _ 4
(32,346) (8,457,714) (8,490,060) (1,557,194)
6,130;614 11,741,187 17,871,801 19,428,995
$ 6,098,268 $ 3,283;473 $ 9,381,741 $ 17,871,801
', 79
CITY OF POWAY
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
City of Poway Debt 'Service Fund
For the Year Ended-June 30, 1998
Revenues:
Taxes
Interest and rentals
Other
Total Revenues
Expenditures:
Debt service:
Principal
Interest and fiscal charges
Bond issuance costs
Total Expenditures
(Deficiency) of Revenues
Over Expenditures
Other Financing Sources:
Proceeds from long term debt
Operating transfers in
1998 1997
Variance
Favorable
Budget Actual ( Unfavorable ) Actual
$ 175,100
$ 323,880 $ 349,939 $ 26,059 282,651
448
323,880 349,939 26,059 458,199
695,000 695,000 715,000
1,446,270 1,451,762 (5 71,227,047
22,413 22,413) 167,733
2,141,270 2,169,175 24;905 2,109
(1,817,390) (1,819,236) 1,846 (1,651,581)
821,157
1,783,420 1,786 3,470 1,621,113
Total Other Financing Sources 1,783,420 1,786,890 3,470 2,442
Excess (Deficiency) of
Revenues and Other
Sources Over Expenditures
Fund Balance, Beginning (Restated)
Fund Balance, Ending
(33,970) (32,346) 1,624 790;689
6,13.0,614 6,130,614 .5
$ 6,096,644 $ 6 $ 1,624 $ 6,130;614
M
CITY OF POWAY
' Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
' City of Poway Redevelopment Agency Debt Service Fund
For the Year Ended June 30, 1998
' 1998 1997
' Fund Balance, Beginning
(Restated)
Fund Balance, Ending
1
(6,223,176) (4,028,478) 2,194,698 2,040,247
(8,715,028) (8,457,714)
11,741,187 11,741,187
14,089,070
$ 3,026,159 $ 3,283,473 $ 257,314 $ 11,741,187
81
257,314 (2,347,883)
TotalOther:Financing
Sources (Uses)
Variance
(Deficiency) of Revenues
and Other Sources
Over Expenditures
Favorable
and Other Uses
Budget
Actual
(Unfavorable)
Actual
Revenues:
Taxes
$ 12,174,820
$ 12,379,735
$ 204,915
$ 11,382,734
Interest and rentals
613,410
605,419
(7,991)
677,222
Other
2,744
Total Revenues
12,788,230
12,985,154
196,924
12,062,700
'
Expenditures:
Debt service:
'
Principal
5,913,078
5,656,970
256,108
5,435,497
Interest and fiscal charges
9,367,004
11,681,302
(2,314,298)
11,015,333
Tax increment reimbursement
76,118
(76,118)
Total Expenditures
15,280,082
17,414,390
(2,134,308)
16,450,830
(Deficiency) of Revenues
Over Expenditures
(2,491,852)
(4,429,236)
(1,937,384)
(4,388,130)
Other Financing Sources (Uses):
Proceeds from long -term debt
2,307,457
2,307,457
2,132,613
'
Operating transfers in
4,060,480
4,067,026
6,546
3;932,107
Operating transfers out
(10,283,656)
(10,402,961)
(119,305)
(4,024,473)
' Fund Balance, Beginning
(Restated)
Fund Balance, Ending
1
(6,223,176) (4,028,478) 2,194,698 2,040,247
(8,715,028) (8,457,714)
11,741,187 11,741,187
14,089,070
$ 3,026,159 $ 3,283,473 $ 257,314 $ 11,741,187
81
257,314 (2,347,883)
TotalOther:Financing
Sources (Uses)
'
(Deficiency) of Revenues
and Other Sources
Over Expenditures
and Other Uses
' Fund Balance, Beginning
(Restated)
Fund Balance, Ending
1
(6,223,176) (4,028,478) 2,194,698 2,040,247
(8,715,028) (8,457,714)
11,741,187 11,741,187
14,089,070
$ 3,026,159 $ 3,283,473 $ 257,314 $ 11,741,187
81
257,314 (2,347,883)
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CAPITALP omcrS'FUNDS
Park Improvement Fund
Municipal Improvement Fund
South Poway CFD.91 Fund
Parkway Business Center
CFD #88 -1 Fund
Used to account for the financing and
construction of park facilities throughout the City.
Used to account for financing. and construction of
major capital facilities other than those financed
by the proprietary . funds. Major capital projects
include construction of government buildings,
including City Hall, fire station and warehouse
facilities.
Used to account for financing and construction of
streets, water and sewer facilities in the South
Poway Business Park
Used to account, for financing of grading and
construction of streets, water and sewer facilities
in Parkway Business Center.
High Valley Roads Used to account for financing and construction
AD #96 -1 Fund of certain public infrastructure improvements
benefitting properties within the boundaries of the
Integrated Financing District No. 96-1.
Redevelopment Area Fund
Used to account for financing and construction of
projects of the Redevelopment Agency in
accordance with the State's Health and Safety
Code.
83
CITY OF POWAY
Combining Balance Sheet
All Capital Projects Funds
June 30, 1998
Assets
Cash and investments
Interest receivable
Other receivable
Receivable under OPA
Due from other funds
Notes receivable
Deposits
Advances to other funds
Fixed assets held for resale
Cash and investments with fiscal agents
Total Assets
125,660
199,526
$ 646,945 $ 232,090 $ 9,398 $ 48,309
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Deposits
Advances from other funds
Deferred revenue
$ 4,960 $ 37,436
307,228
Total Liabilities
Fund Balances:
Reserved:
Notes receivables
Deposits
Advances to other funds
Fixed assets held for resale
Capital projects
Unreserved:
Designated for fair value adjustment
Undesignated (deficit)
Total Fund Balances
Total Liabilities and
Fund Balances
312,188 37,436
125,660
194,107 $ 9,366 $ 48,146
547 32 163
209,097
334,757 194,654 9,398 48,309
$ 646,945 $ 232,090 $ 9 $ 48,309
84
Parkway
South
Business
Park Municipal
Poway
Center
I mprovemen t I mprovemen t
CFD 91
CFD #88 -1
$ 521,285 $ 31,532
$ 9,398
$ 48,309
885
147
125,660
199,526
$ 646,945 $ 232,090 $ 9,398 $ 48,309
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Deposits
Advances from other funds
Deferred revenue
$ 4,960 $ 37,436
307,228
Total Liabilities
Fund Balances:
Reserved:
Notes receivables
Deposits
Advances to other funds
Fixed assets held for resale
Capital projects
Unreserved:
Designated for fair value adjustment
Undesignated (deficit)
Total Fund Balances
Total Liabilities and
Fund Balances
312,188 37,436
125,660
194,107 $ 9,366 $ 48,146
547 32 163
209,097
334,757 194,654 9,398 48,309
$ 646,945 $ 232,090 $ 9 $ 48,309
84
$ - $ 14,160,602 $ 15,097,344 $ 23,621,251
' 85
High
Valley
Roads
Redevelopment
Totals
AD #96 -1
Area,
1998
1997
$ 10,725,886
$ 11,336,410
$ 15,115,192
34,991
35,876
129,908
147
32
910,081
910,081
1,736,994
43,737
360;000
43,737
360,000
195,320
10,969
10,969
10
2,074,938
125,660
2,074,938
254
2
199,526
3,812,069
'
$ -
$ 14,160,602
$ 15,097,344
$ 23,621;251
'
$ 797,069
25,265
$ 839,465
25,265
$ 2,088,230
$ 129,018
129,018
195,320
'
23,946
23,946
307,228
48,946
307,228
964,425
964,425
1,736,994
129,018
1,810,705
2,289,347
4,376,718
360,000
360,000
'
10,969
10,969
125,660
10,969
254,1.16
2,074,938
2,074,938
2,366,651
251,619
17,141,518
30,124
30,866
129,018
9,873;866
9,953,945
(528,721)
'
129,018)
12,349;897
12,807,997
19,244,533
$ - $ 14,160,602 $ 15,097,344 $ 23,621,251
' 85
CITY OF POWAY
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
All Capital Projects Funds
For the Year Ended June 30, 1998
Revenues:
Intergovernmental
Charges for services
Interest and rentals
Developer fees
Other
Total Revenues
Expenditures:
Current:
General government
Capital expenditures
Total Expenditures
Excess (Deficiency) of
Revenues Over Expenditures
Other Financing Sources (Uses):
Proceeds from long -term debt
Operating transfers in .
Operating transfers out
Total Other Financing
Sources (Uses)
Excess (Deficiency) of Revenues
and Other Sources Over
Expenditures and Other Uses
Fund Balances, Beginning (Restated)
Fund Balances, Ending
74,424 1,868,746
74,424 1,868,746
288,236 (1,783,561) 562 2,878
(1,200,302)
(1,200,302)
288,236
(2,983,863)
562
Parkway
46,521
3,178,517
South
Business
Park
Municipal
Poway
Center
Improvement
Improvement
CFD #1
CFD #88 -1
$ 85,185
$ 562
$ 2,878
$ 362,660
362,660
85,185
562
2,878
74,424 1,868,746
74,424 1,868,746
288,236 (1,783,561) 562 2,878
(1,200,302)
(1,200,302)
288,236
(2,983,863)
562
2,878
46,521
3,178,517
8,836
45,431
$ 334,757
$ 194,654
$ 9,398
$ 48,309
I
56,232 (8,379,357) (9,927,474) (15,874,057)
3,558,074 3,558,074 6,401,759
' 2,085;426 2,085,426 1,132,410
(952,260) (2,152,562) (858,061)
' 4,691,240 3,490,938 6,676,108
' (56,232) (3,688,117) (6,436,536) (9,197,949)
High
16,038,014
19,244,533
28,442,482
Valley
$ 12,349,897
$12
$ 19,244,533
Roads
Redevelopment
Totals
AD #96 -1
Area
1998
1997
$ 1,532,165
$ 1,532,165 $
99,000
'
2,179,560
2,179,560
1,998,425
960,155
1,048,780
822,829
1,036,902
1,399,562
254,353
'
8,470
8,470
12
5,717,252
6,168,537
3,174,619
'
$ 348
3,427,600
3,427,948
4,194,776
55,884
10,669,009
12,668,063
14,853,900
56,232
14,096,609
16,096,011
19,048, 676
56,232 (8,379,357) (9,927,474) (15,874,057)
3,558,074 3,558,074 6,401,759
' 2,085;426 2,085,426 1,132,410
(952,260) (2,152,562) (858,061)
' 4,691,240 3,490,938 6,676,108
' (56,232) (3,688,117) (6,436,536) (9,197,949)
1
1 87
72,786.
16,038,014
19,244,533
28,442,482
$ 129;018
$ 12,349,897
$12
$ 19,244,533
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' ENTERPRISE. FUNDS
' Water Fund To account for the provision of water services to the
residents of the City. All activities necessary to provide
' such services are accounted for in this f md, including,
but not limited to, administration, operations,
maintenance, financing and related debt service, and
billing and collection.
Sewer Fund To account for the provision of sewer services to the
' residents of the City. All activities necessary to provide
such services are accounted for in this fund, including,
but not limited to, administration, operations,
' maintenance, financing and related debt service, and
billing and collection.
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CITY OF POWAY
Combining Balance Sheet
All Enterprise Funds
June 30, 1998
1,432,965
Assets
Current Assets:
Cash and investments
Receivables (net, where
applicable of allowance for
estimated uncollectibles):
Accounts
Inventories, at cost
Total Current Assets
Restricted Assets:
Cash and investments
Cash and investments
with fiscal agents
Taxes receivable (net,
where applicable, of
allowance for estimated
uncollectibles)
Deposits
Water Sewer Totals
Fund Fund 1998 1997
$ 6,777;590 $14,147,137 $ 20,924,727 $ 23,457,629
1,772,579 409,998 2,182,577 2,705,221
674,194 24,196 698,390 746,719
9,224,363 14;581,331 23,805,694 26,909,569
1,432,965
1,132,962
5,320
13,378
1,132,962
1
1,405,333 '
1,268,227
1,409 6,729 8,423
13,378 13,378
Total Restricted Assets 2,584,625 1,409 2,586 2,695,361
Other Assets:
Advances to other funds 3,862,411 8,464,423 12,326,834 9,026,834
Deferred charges 208,477 208,477 228,281
Total Other Assets
Property, Plant and Equipment:
Land
Buildings and structures
Improvements other
than buildings
Machinery and equipment
Construction in progress
Total Property, Plant
and Equipment
C
4,070,888 8,464,423 12,535,311 9,255,115
76,797 76,797 76,797 '
18,389,763 668,204 19,057,967 9,664,222
18,753,222
15,303,537
34,056,759
33,594,225
852,888
472,900
1,325,788
1,183,502 '
1,585,337
1,977,499
3,562,836
11,203,542
39,581,210 18,498,937 58,080,147 55,722,288 1
Less Accumulated Depreciation (16,832,419) (7,606,337) (24,438,756) (23,003,492) '
Net Property, Plant
and Equipment 22,748,791 10,892,600 33,641,391 32,718,796 ,
Total Assets $ 38,628,667 $ 33,939,763 $ 72,568,430 $ 71,578,841
90 ,
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CITY OF POWAY
'
Combining Balance Sheet
All Enterprise Funds (Continued)
June 30, 1998
1
Totals
'
Liabilities and Fund Equity
Water Fund
Sewer Fund
1998
1997
Current Liabilities (payable
from current assets):
'
Accounts payable
$ 979,803
$ 345,480
$ 1,325,283
$ 1,381,293
Accrued liabilities
112,072
23,856
135,928
142,795
Due to other funds
3,984
'
Leases payable
16,137
16,137
15,206
'
Current Liabilities (payable
1,108,012
369,336
1,477,348
1,543,278
from restricted assets):
Bonds payable - due
within one year
500,000
500,000
485,000
Unredeemed matured bond
and interest payable
915,212
9.15,212
1,054,840
'
1,415,212
1,539,840
1,415,212
'
Total Current Liabilities
2,523,224
369,336
2,892,560
3,083,118
Long -Term Debt Excluding
Current Installments:
General obligation.bonds payable
3,159,605
3,159,605
3,536,532
Revenu&bonds payable
3,004,813
3,004,813
3,116,213
Lease payable
138,052
138,052
154,190
'
Contract payable
5,407
5,407
5,407
Total Long -Term Debt
6,307,877
6,307,877
6,812,342
Total Liabilities
8,831,101
369,336
9,200,437
9,895,460
Fund-Equity:
'
Contributed capital
7,873,643
2,277,415
10,151,058
8,559,503
Less accumulated depreciation
(583,726)
(479,266)
(1,062,992)
(995,500)
'
7,289,917
1,798,149
9,088,066
7,564,003
Retained Earnings;.
Reserved for debt service
1,713,415
1,713,415
1,139,113
'
Designated for fair value
adjustment
81,128
56,056
137,184
Unreserved, undesignated
20,713,106
31,716,222
52,429,328
52,980,265
Total Retained' Earnings
22,507,649
31,772,278
54,279,927
54,119,378
Total Fund Equity
29,797,566
33,570,427
63,367,993
61,683,381
Total Liabilities and
Fund Equity
$ 38,628,667
$ 33,939,763
$ 72,568,430
$ 71,578,841
'
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CITY OF POWAY
'
Combining Statement,of Revenues, Expenses and Changes`in
Retained Earnings
All Enterprise
Funds
For the Year Ended June 30, 1998
Water
Sewer
Totals
'
Fund
Fund
1998
1997
Operating Revenues:
Charges'forservices
$ 8,990,084
$ 4,474,441
$ 13,464,525
$ 14,959,243
Connection fees
416,871
795,805
1,212,676
943,779
Annexation fees
1,678
'
Other
35,793
4
40,670
724,524
Total Operating Revenues
9,442,748
5,275,123
14,717,871
16,629,224
'
Operating Expenses:
Personal services
1,838,825
311,201
2,150,026
2,111,637
Maintenance and operations
Cost of purchased water
2,161,756
4,938,989
4,353,433
6,515,189
4,938,989
5,998,872
5,938,256
Depreciation
1,093,967
413,534
1,507,501
1,184,165
'
Total Operating Expenses
10,033,537
5,078,168
15,111,705
15,232,930
'
Operating Income (Loss)
(590,789)
196,955
(393,834)
1,396,294
Nonoperating Revenues (Expenses):
'
Taxes
Interest revenue
510,795
569,366
1,185,224
510,795
1,754,590
431,463
1,518,579
Contributed capital
(1,378,691)
(1,378,691)
Interest expense and fiscal
agent charges
(364,372)
(364,372)
(426,902)
'
Total Nonoperating
Revenues (Expenses)
715,789
(193
522,322
1,523,140
'
Income Before
Operating Transfers
125,000
3,488
128,488
2,919,434
Operating.Transfers:
Transfers�out
(35,430)
(35,430)
'
Net Income
89,570
3,488
93,058
2,919,434
Depreciation on contributed capital
37,141
30,350
67,491
67,491
'
Increase in Retained Earnings
126,711
33,838
160,549
2,986,925
Retained Earnings, Beginning
(Restated)
22,380,938
31,738,440
54,119,378
51,132,453
Retained Earnings, Ending
$ 22,507,649
$ 31,772,278
$ 54,279,927
$ 54,119,378
93
CITY OF POWAY
Combining Statement of Cash Flows
All Enterprise Funds
For the Year Ended June 30, 1998
Cash Flows from Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in inventories
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Net Cash Provided by Operating Activities
Cash Flows from Non - Capital Financing Activities:
Taxes
Operating transfers out
Advances to other funds
Loan from other funds
Net Cash Provided by (Used for)
Non - Capital Financing Activities
Water Fund Sewer Fund
$ (590,789) $ 196,955
1,093,967 413,534
180,388
342,256
60,177
(11,848)
(78,501)
22,461
(7,173)
306
658,069
963,664
510,868 1,620 '
(35,430)
(3,300,000)
(1,992) (1,992)
473,446 (3,300,372)
Cash Flows from Capital and Related Financing Activities:
Interest expense and fiscal agent charges (472,493)
Principal payments on long -term borrowing (500,206)
Acquisition of property, plant, and equipment (832,518) (1,384,715)
Net Cash Used for Capital and
Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning (Restated)
Cash and Cash Equivalents, Ending
(1,805,217) (1,384,715)
569,366 1,185,224
(104,336) (2,536,199)
9,447,853 16,683,336
$ 9,343,517 $ 14,147,137
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Totals
1998 1997
$ (393,834) $ 1,396,294
1,507,501
1,184,165
522;644
(206,746)
48,329
(41,144)
(56,040)
(201,076)
(6,867)
22,704
$ 23,490 ;654
1,621,733
2,154,197
512,488 434,816
(35,430)
(3,300,000)
(3,984) 3,984
(2,826,926) 438,800
(472,493)
(644,700)
(500,206)
(1,709,328)
(2,217,233)
(2,537,327)
(3,189,932) (4,891,355)
1,754,590
1,338,001
(2,640535)
(960,357)
26,131,189
27,091,546
$ 23,490 ;654
$26,131,189
(Continued)
CITY OF POWAY
Combining Statement of Cash Flows
All EnterpriseFunds'(Continued)
For the Year Ended June 30, 1998
Reconciliation of Cash Equivalents to the Balance Sheet:
Total cash and investments per the balance sheet
Total restricted assets per the balance sheet:
Cash and investments
Cash and investments with fiscal agents
Cash and Cash Equivalents at the End of Year
Noncash Investing, Capital and Financing Activities:
Water Fund Sewer Fund
$ 6,777,590 $ 14,147,137
1,432,965
1,132,962
$ 9,343,517 $ 14,147,137
The Water Enterprise Fund acquired $1,591,555 of fixed assets through contributed capital
during the year ended June 30, 1998. Of this amount, $1,378,691 was contributed by the Sewer
Enterprise Fund.
, 1
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Totals
1998
1997
'
$ 20 $
23,457,629
1,432,965
1,405,333
1
1,132,962
1,268,227
$ 23,490 $
26,131,189
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INTERNAL SERVICE FUND
1
Vehicle Maintenance. Fund Used to account for the costs.of operating
t a maintenance facility for automotive
equipment used by other City
' departments. Such costs to 'other
departments are billed on a direct cost
basis. The Vehicle Maintenance Fund is
responsible for financing replacement
vehicles, as necessary.
7
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1 99
CITY OF POWAY
Comparative Balance Sheet
Vehicle Maintenance Internal Service Fund
June 30, 1998
Assets
Current Assets:
Cash and investments
Accounts receivable
Total Assets
1998 1997
$ 2,880,757 $ 3,163,928
7,829
$ 2,888,586 $ 3,163,928
Liabilities and Fund Eouity
Current Liabilities:
Accounts payable
Accrued liabilities
Total Liabilities
Fund Equity:
Retained Earnings:
Reserved for equipment replacement
Designated for fair value adjustment
Total Equity
Total Liabilities and Fund..Equity
$ 67,897 $ 260,862
13,612 10;622
81,509 .271,484
2,797,219 2,892,444
9,858
2,807,077 2,892;444
$ 2,888,586 $ 3,163,928
100
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CITY OF POWAY
Comparative Statement.ofRevenues, Expenses, and Changes in Retained Earnings
Vehicle Maintenance Internal Service Fund
For the Year Ended June 30, 1998
Operating Revenues:
Charges for services
Other
Total Operating Revenues
Operating Expenses:
Personal services
Maintenance and operations
Total Operating Expenses
Operating Income
Nonoperating Revenue:
Interest revenue
Income Before Operating Transfers
Operating Transfers:
Transfers but
Net Loss
Retained Earnings, Beginning (Restated)
Retained Earnings, Ending
101
1998 1997
$ 965,185 $ 759,251
19,192 24,078
984,377 783,329
184,547
178,667
358,062
224,486
542,609
403,153
441,768
380,176
177,906 179,403
619,674 559,579
(705,041) (980,701)
(85,367) (421,122)
2,892,444 3,313,566
$ 2;807,077 $ 2,892,444
CITY OF POWAY
Comparative. Statement of Cash Flows
Vehicle Maintenance Internal Service Fund
For the Year Ended June 30, 1998
1998 1997
Cash Flows from Operating Activities:
Operating income
Adjustments to reconcile operating income
to net cash provided by operating activities:
Changes in operating assets and liabilities:
(Increase) in accounts receivable
Increase (decrease) in accounts payable
Increase in accrued liabilities
Net Cash Provided by Operating Activities
Cash Flows from Non - Capital and
Related Financing Activities:
Operating transfers out
Cash Flows from Investing Activities:
Interest received
Net Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning (Restated)
Cash and Cash Equivalents, Ending
$ 441,768 $ 380,176
(7,829)
(192,967) 185,914
2,992 719
243,964 566,809
(705,041) (980,701)
177,906
179,403
(283,171)
(234,489)
3,163,928
3,398,417
$ 2,880,757
$ 3,163,928
102
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FIDUCLARY FUNDS
NONEXPENDABLE TRUST FUND
Mary Patricia Ross Trust Fund
Library Trust Fund
EXPENDABLE TRUST FUNDS
Bendixon Trust Fund
Poway Road Beautification Trust Fund
Perfomvng Arts Center. Trust Fund
AGENCY FUNDS
Deferred Compensation
Developer Deposits
South Poway CFD Al
Used to account for revenues and expenses
provided by a private estate to finance
community park. and recreation purposes. The
principal must be maintained intact until 2006.
Interest income must also be used to finance such
recreational purposes.
Used to account for a donation to the City which
is to be held in perpetual trust. The income from
the principal is to be used for library supplies and
services.
Used to account for money provided by private
donors restricted to maintenance of riding and
hiking trails.
Used to account for money provided by
Expendable Trust ,Fund donors restricted to
beautification efforts along Poway Road.
Used to account for money provided by
donors restricted to Performing Arts Center
construction.
Used to account for deferred compensation
programs on behalf of the City and its
employees.
Used to account:for,the collection and payments
of development deposits from and on behalf of
the collective and individual developers.
Used to account for debt service payments Bond
Deposits collected through property tax
assessments remitted to fiscal agent- trustee for
payment on bonds.
103
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FIDUCIARY FUNDS (Continued)
AGENCY FUNDS
Pazkway Business Center
CFD 488 -1 Bond Deposits
High Valley Roads.
AD #96-1 Bond Deposits
Used to account for debt service payments
collected through property tax assessments
remitted to fiscal agent- trustee for payment on
bonds.
Used to account for debt service payments
collected through ,property tax assessments
remitted to fiscal agent-trustee for payment on
bonds.
105
CITY OF POWAY
Combining Balance Sheet
All Fiduciary Funds
June 30, 1998
Nonexpendable
Trust Funds Expendable Trust Funds
Mary Poway
Patricia Road Performing
Ross Library Bendixon Beautification Arts Cente
Assets
Cash and investments $ 54,016 $ 826;027 $ 12,885 $ 6,338
Receivables:
Taxes
Accounts
Interest
Cash and investments with
fiscal agents
Total Assets $ 54,016 $ 826,027 $ 12,885 $ 6 $
Liabilities and Fund Balances
Liabilities
Accounts payable $ 19,524
Deposits $ 8,775
Due to bondholders
Deferred compensation payable
Advances from other funds
Total Liabilities 19,524 8,775
Fund Balances
Reserved for capital projects
$ 53,833
806,503 $ 12,842
$ 6,317
Unreserved:
Designated for fair value
adjustment
183
43
21
Undesignated
8,775
Total Fund Balances
54,016
806,503 12,885
6 8,775
Total Liabilities and
Fund Balances
$ 54,016
$ 826 $ 12
$ 6,338 $ -
f�'.
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Funds
Totals
1998 1997
$ 2,310,109 $ 2,894,308 $ 103,863 $ 37,304 $ 6,244,850 $ 12,379,774
44,626
Parkway
High
78,461
Business
Valley
South Poway
Center
Roads
Deferred Developer CFD #1
CFD #88 -1
AD #96 -1
Compensation Deposits Bond Deposits
Bond'Deposits
Bond Deposits
Totals
1998 1997
$ 2,310,109 $ 2,894,308 $ 103,863 $ 37,304 $ 6,244,850 $ 12,379,774
44,626
32,148
1,687
78,461
5,020,977
4,509,844
4,509,844
283 12,577
12,469
223
25,552
30,249
3,077,518
2,947,170
54,666
6
7,102,190
$ $ 2,310,392 $ 6,029,029
$ 7,605,494
$93,880
$ 16,938,061
$ 24,533,190
$ 55,036 $ 4,125 $ 18,685 $ 45,789
2,255,356 2,264,131 1,347,275
$ 6,029;029 $ 3,103,347 89,755 9,222,131 10,447,843
6,875,974
4,502,147 4,502,147 4,907,103
2,310,392 6,029,029 7,605,494 93,880 16,067,094 23,623,984
879,495 917,981
247
(8,775) (8,775)
870,967 909,206
$ $ 2,310,392 $ 6,029,029 $ 7,605,494 $ 93,880 $ 16,938,061 $ 24,533,190
107
CITY OF POWAY
Combining Statement of Revenues, Expenses, and Changes in Fund Balances
All Nonexpendable Trust Funds
For the Year Ended June 30, 1998
Mary
Operating Expenses
Maintenance and operations
Patricia
41,546
Totals
Ross
Library
1998 1997
Operating Revenues:
47,405
Operating Transfers:
Donations
$ 7,699
Interest
$ 3,226
$ 52,924
$ 56,150 39,706
Total Revenues
3,226
52,924
56,150 47,405
Operating Expenses
Maintenance and operations
41,546
41,546
Operating Income
3,226
11,378
14,604
47,405
Operating Transfers:
Operating transfers in
100,000
Operating transfers out
54,435
54,435
Total Operating Transfers
54,435
54,435
100,000
Net Income (Loss)
3,226
(43,057)
(39,831)
147,405
Fund Balances, Beginning (Restated)
50;790
849,560
900,350
752,945
Fund Balances, Ending
$ 54,016
$ 806,503
$: 860,519
$ 900,350
108
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CITY:OF POWAY
Combining Statement of Cash Flows
All Nonexpendable Trust Funds
For the Year Ended June 30, 1998
Cash Flows - from Operating Activities:
Operating income
Adjustment to reconcile operating
income to net cash provided by
operating, activities:
Increase in accounts payable
Interest income
Net Cash Provided From
(Used for) Operating Activities
Cash Flows from Non - Capital and
Related Financing Activities:
Operating transfers: in
Operating transfers out
Net:Cash Provided'from
(Used for) Non- Capital;and
Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Increase (Decrease) in
Cash and Cash Equivalents
Cash, and Cash -Equivalents,
Beginning (Restated)
Cash and Cash Equivalents, Ending
Mary
Patricia Totals.
Ross Library 1998 1997
$ 3,226 $ 11,378 $ 14,604 $ 47,405
19,524 19,524
3,226 52;924) (56,150) 39,706)
22 ,'022 22,022 7,699
100,000
54,435 54,435
54,435) (54,435) 100,000
3,226 52;924 56,150 39,706
3,226 (23,533) (20,307) 147,405
50,790 849,560 900,350 752,945
$ 54,016 $826,027 $ 880;043 $900,350
111%
CITY OF POWAY
Combining Statement. of Revenues, Expenditures; and Changes in Fund Balances
All Expendable Trust Funds
For the Year Ended June 30, 1998
1111]
Poway
Road
Performing
Beautifi-
Arts
Totals
Bendixon
cation
Center
1998
1997
Revenues:
Interest
$ 753
$ 158
$ 91,1
$ 854
Other
461
220
681
821
Total Revenues
1,214
378
1,592
1,675
Fund Balances, Beginning (Restated)
11,671
5,960
$ 8,775
8856
7,181
Fund Balances, Ending
$ 12;885'
$. 6,338
$ (8,775)
$ _10,448
$ 8,856
1111]
' CITY OF POWAY
Combining Statement of Changes in Assets and.Liabilities
All Agency Funds
For the Year Ended June 36, 1998
Balance
Balance
Deferred Coniaensation Fund
July 1, 1997
Additions
Deletions
June 30, 1998
' Assets
Cash ?and' investments
$
6,875,974
$
-
$
6,875,974
$
'
Liabilities
Deferred compensation payable
$,
6,875;974
$
$
6,875,974
$
Develouer Deposits Fund
Assets
Cash and investments
$
1,357,053
$
2,149,398
$
1,196;342
$
2;310,109
'
Interest receivable
272
283
272
283
Total Assets
$
.1;357 ;325
$
2,149,681
$
1,196;614
$
23,10,392
Liabilities
'
Accounts payable
$
18,825
$
808,007
$
771,796
$
55,036
Deposits
1,338,500
1,334,770
417,914
2,255,356
'
Advances from other funds
6,904
6,904
Total Liabilities
$
1,357,325
$
.2,149;684
$
1,196,614
_ $
2,310;392
South Poway "CFD #1 Bond Deposits
Assets
Cash and investments
$
^2,873,455
$
4,693,404
$
4,672,551
$.
2,894;308
Taxes receivable
9.7
44,626
97,367
44;626
Interest receivable
12,501
12;577
12,501
12,577
'
Cashand.'investments with
fiscal agents
3,075,650
3,076;920
. 3,075,052
3,077,518
Total Assets
$
6,058,913
$
7,827,527
$
7,857,411
$
6;029,029
Liabilities
Accounts
$
713
$
713
,payable
Due: ;o bondholders
6,058,200
$
7;827,527
7
$
6,029,029
Total Liabilities
$
6,058913
$
7,827,527
$
7,857;4
S,
6;029,029
Parkwav-Busiiess Center
CM08 -1 Bond Deposits
Assets
Cash and investments
$
317,805
$
8,285,466
$
8;499;408
$
103,863
'
Taxesl receivable.
4,923,254
32,148
4,923;254
32,148
Accounts receivable
4,509,844
4
Interest receivable
17,254
12,469
17,254
12
'
Cash and investments with,
fiscal agents
3,971,896
6,490,526
7 ;515;252
- 2,947,170
Total Assets
$
9;230,209
$
19,330
$; 20;955;168
$
'7,605
(Continued)
i�
111
CITY OF POWAY
Combining Statement of Changes in Assets and Liabilities
All Agency Funds,.(Continued)
For the Year Ended June 30, 1998
Cash and investments
Taxes receivable
Interest receivable
Cash:and investments with
fiscal agents
Total Assets
Liabilities
Account payable
Due to bondholders
Total Liabilities
Total? All Aaencv -Funds
Assets
Cash and investments
Accounts receivable
Taxes receivable
Interest receivable
Cash and investments with
fiscal agents
Total Assets
Liabilities
Accounts payable
Deposits
Due to bondholders
Deferred compensation payable
Advances -from other funds
Total Liabilities
$ 37,506 $
Balance.
52,605 $
37,304
Balance
1,687
July 1, 1997
Additions
Deletions
June 30, 1998
Liabilities
223
$
4,125
Accounts payable
$ 26,251
$ 964
$ 27,215
101,872
Due to bondholders
4,296,855
19,329,489
20,522991
$ 3,1
Advances from other funds
4 1 907,103
404,956
4,502,147
Total Liabilities
$ 9,230,209
$ 19,330
$ 20,955
$ 7
High Valley Roads
93,880,
AD #96 -1 Bond Deposits
Assets
$
11,461,793
$
Cash and investments
Taxes receivable
Interest receivable
Cash:and investments with
fiscal agents
Total Assets
Liabilities
Account payable
Due to bondholders
Total Liabilities
Total? All Aaencv -Funds
Assets
Cash and investments
Accounts receivable
Taxes receivable
Interest receivable
Cash and investments with
fiscal agents
Total Assets
Liabilities
Accounts payable
Deposits
Due to bondholders
Deferred compensation payable
Advances -from other funds
Total Liabilities
$ 37,506 $
52,403 $
52,605 $
37,304
416
1,687
416
1,687
222
224
223
223
1.
I
C'
54,644 51,683 51,661 54,666
$ 92,788 $ 105,997 $ 104,905 $ 93;880
$ 23,615 $ 29;413,658 $ 36,990,072 $ 16 ;795
112 1 1
$
4,125
$
4,125
$
92,788
101,872
$ 104,905
89,755
'
$
92,788
$
105,997
$ 104,905
$
93,880,
$
11,461,793
$
15
$ 21
$
5,345;584
4,509,844
4,509,844
5,020,977
78,461
5
78;461
30,249
25;553
30,250
25,552
'
7,102,190
9,619;129
10,641,965
6,079,354
$ 23;615,209
$.29,413,658
$ 36;990,072,
$
16,038;795
'
$
45,789
$
813,096
$ 799,724
$
59,161
,
1 ;338,500
1,334,770
417,914
2,2531356
10,447,843
27,258,888
28,484,600
9,222;131
6,875,974
6,875,974
'
4 1 907,103
6 1 904
411,860
4,502,147
$ 23,615 $ 29;413,658 $ 36,990,072 $ 16 ;795
112 1 1
1
11
ACCOUNT GROUPS
1 General,Fixed.Assets Used to account for- the cost of fixed assets that
are used in the performance of general
government functions and that are not accounted
for in the proprietary funds.
1 General Long -Terre Debt Used to account for the unmatured long -term
indebtedness of the City and Redevelopment
Agency not accounted for in the proprietary
' funds.
1
I
1
1
1
1
1
1
1
1 113
This page left blank intentionally.
114
C�
'i
I
CITY OFPOWAY
Comparative Schedule of General Fixed Assets
by Source
June 30, 1998
..;
General Fixed Assets;
Land'
Buildings
Improvements other than buildings
Machinery,and equipment
Construction in progress.
Total General Fixed Assets
Investments in General Fixed-Assets:
General Fun&revenues
Special Revenue Fund revenues
Capital Projects Funds:
State grants
Donations
Bond proceeds
Federal grants.
Transfer. from prior water districts
Total Investments in General Fixed Assets
115
$ 43,510,522
44,561,990
2,882,389
7,976;928
715,035
$ 99
$ 86,143,957
7,097,031
237,514
1,987,442
262,922
1,096
3,916,902
$ 99;646,864
1997
$,43,040,133
37;056,924
2,437,388
7561,228
2,785,786
$ 92,881,459
$ 79,378,552
7
237,514
1,987,442
262,922
1
3,916;902
$: 92,881,459
CITY OF''POWAY
Schedule of General Fixed Assets
by Function and Activity
June.30, 1998
Function and Activity
General Government:
Manager
Clerk
Personnel
Finance and Administration
Other -
Services
Government Buildings
Total General Government
Public Safety:
Safety
Fire
Paramedics
Inspection
Total Public: Safety
Highways and Streets:
Engineering
Maintenance
Total Highways and Streets
Culture and Recreation
Mobilehome Parks
Total General Fixed Assets.
Improvements
Other than
Land Buildings Buildings
$ 33,674
$ 117,796 413,793
2,880,380
367,166
$ 361,850
1,997,057
10,556,426
141,271
371,844•
6
4;995,233
11,371,059
503,121
5,425,618 18,215
76,010
5,501;628 18,215
309,156
371,844
6,982
309,156
371,844•
6
13,388,156
11,701,980
626,71.1
24,817,977
15, 615, 479
1,727,360
$ 43,510;522
$ 44,561,99.0
$ 2,882;389
116
Machimy
'
and
Construction
Equipment
InProgress
Total
$ 29,815
$ 63,489
'
134,830
134,830
4,648
4,648
1,308
1,840,197
'
1,664,397
5,273,793
'
913,196
$ 211,028
13,818,978
4,055,494
211,628
21,135,935
589,846
76,398
6,110,077
1,078;420
1,154,430
147,725
147,725
40,500
40,500
1,856,491
76,398
7,452,732
60,841
60,841
`
1
427,609-
2,507,938
1 ; 453,188
427,609
2,568,779
594,676:
26,311,523
'
17,079.
42,177;895
'
$ 7,976;928'
$ 715,035,
$ 99,646,864
'
117
CITY OF POWAY
Schedule of Changes in General Fixed Assets
by Function.and Activity
For the Year Ended June 30, 1998
Function and Activity
General Government:
Manager
Clerk
Personnel
Finance and Administration
Other -
Services
Government Buildings
I
General General
Fixed Fixed
Assets Assets
July 1, 1997 Additions Deletions June 30 1998
$ 61,518 $
134,251
4,648
1,833;832
1,971
579
6,365
$ 63,489
134,830
4,648
1,840,197
1
4,571,595 915,251 $ (213,053) 5,273,793 ,
13 ;486,780 337,198 (5,000) 13,818;978
Total General Government
20 ;092,624
1,261,364
(218,053)
21,135;935
Public Safety:
Safety
4,121,503
2,585,936
(597,362)
6
,
Fire
1,128,497
25,933
1,154;430
Paramedics
147,725
147
Inspection
40,500
40,500
'
Total Public Safety
5,438,225
2,611,869
(597,362)
7;452,732
,
Highways and Streets:
Engineering
60,229
612
60,841
Maintenance
2,205,045
406,911
(104,018)
2
Total Highways and Streets
2,265,274
407,523
(104,018)
2,568,779
,
Culture and Recreation
23
4,959;882
(1,679 ; 417)
26;3.11,523
'
Mobilehome Parks
42 ;054,278
123 ;617
42177
Total General Fixed Assets
$ 92;881 ; 459
$ 9 3.64,255
$ °(2,598,850)
$ 99;646;864
,
118 1
1
CITY OF POWAY
' Comparative Schedule of General.Long -Term Debt
June 30, 1998
1
11
1
1
wo
1997
Amount Available and to be Provided for
the Payment of General Long -Term Debt:
Amount - available in debt service funds
Amount to be provided
$ 9,381,741
216,745,997
$ '226,127,738
$ 17,884,948
208,798,579
$ 226,683,527
Total Available and to be Provided
General Long-Term Debt Payable:
Tax allocation bonds,payable
Certificates of participation
Advances from other funds
Contract payable
Notes payable
Obligations under capital leases
Total General Long -Term Debt Payable
1
i
I1
$ 115,685,000 $ 116,895,000
55,810,000
56,505,000
25,649,512
26,344,512
44,280
44,881
28,570,133
26,455,971
368,813
438,163
$ 226,127,738 $ 226,683,527
1 119
This page left blank intentionally.
120
I
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1
STATISTICAL SECTION
[1
CITY OF POWAY
General Governmental Expenditures. by Function (l)
Last Ten Fiscal Years
Fiscal
General
Public
Public
Community
Capital
Year
Government
Safety
Works
Services
Expenditures
1989
$ 3,784,515
$ 4,851,875
$ 4,464,397
$ 2,611,714
$ 36,041,610
1990
5,726,143
5,563,163
4,108,962
3,532,117
33,314,917
1991
5,680,185
8,212,765
2,562,230
3,487,041
55,427,599
1992
5,487,555
8,019,225
2,584,301
4,009,375
27;891,391
1993
6,954,504
8,322,611
2
4,289,493
18,690,422
1994
6,018,367
8,371,953
3,001,012
4,216,928
.18,312,184
1995
6,555,752
8,156,328
3,040,823
4,375,933
12,711,970
1996
6,758,341
8,554,473
2,248,039
5,151,534
32,408,989
1997
7,822,743
8,884,438'
4,661,719
5,068,108
23,553,095
1998
7,758,604
9,333,832
6,035,135
4,921,563
20,385,782
Notes:
Includes all governmental fund types
Source: City Administrative Services Department
122
1
TABLE 1
Debt
Service Total
$ 5,896,486 $ 57,650,597
7,465,211 59,710;513
11,911,077 87,280
23,3.17,449 71
21,761,546
62,623,912
29,469,665
69,390,109
17,341;788
52,182,594
32,901,191
88,022,567
18,596,415
68 586,518
19,619;370
68,054,286
123
I
CITY OF POWAY
General Governmental Revenues by Source (1)
Last Ten Fiscal Years
Licenses Intergovern- Charges
Fiscal and mental for
Year Taxes Permits Revenues Services
1
Fines and
Forfeitures '
1989
$ 12,769,759
$ 378,091
$ 3,692,440
$ 7,577,139
$ 141,763
1990
14,824,205
398,748
2,751,273
7,466,928
139,312
1991
18,695;696
394;812
2,991,647
7,364,057
146;838
1992
18,702862
352,341
3,492,141
6;0.47,267
95,080
1993
18,952;451
340,884
3;643;717
6,532,158
71,747
1994
20,065,771
335
10,363,173
7,061,989
91,593
1995
20,865,001
326,041
.12,048,349
6
72,140
1996
21,187,183
299,810
12;912,925
7,550,017
67,799
1997
20,941,439
281,610
5,013
8,826,878
71,477
1998
23,021,049
257;818
8,837,630
10,584,717
86,273
CITY OF POWAY
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
TABLE 2A
Fiscal
Property
Franchise
Motor
Year
Tax (Z)
Sales Tax
Tax
Vehicle Tax
Total
1989
$ 8,214,128
$ 2,416,290
$ 330,129
$ 1,749,212
$ 12,709,759
1990
9
2,790,198
338,865
1,789,373
14,824;205
1991
13,915,042
2
398,823
1,809,872
18
1992
13,920,524
2,672,052
403,911
1,706,. 375
18,702,862
1993
13,588,578
3,251,723
.510,581
1,601,69
18;952,451
1994
14,251,274
3,659,912
593,164
1,561,421
20;065,771
1995
14,959,431
3,639,756
627,215
1,638;599
20,865,001
1996
15,184,101
3,696,899
597,782
1,708,401
21,187,183
1997
.14,338,241
4,149,019
618,386
1,835,793
26,941,439
1998
15,451,792
4,902,359
714,901
1,951,997
23;021,049
Notes:
(1) Includes all governmental fund types:and an expendable trust fund.
(2) Includes property taxes for Redevelopment Agency.
Source: City Administrative Services Department
124
TABLE 2
1
f]
11
1
1
125
Interest
and
Rentals
Other
Total
'
$ 7,376,764
$ 1,680,039
$ 33,555,995
8,680,108
2,535,849
36,796,423
8,833,021
9;288
47,714,492
8,351,217
,2,574,632
39,615,540
8,226,841
1,961,333
39,729,131
8,995,1I6
1,121,228,
48,033,907
'
8,233,586
651,5,15
48,943,353
7;508,118
1,630,809
51,156,661
'
6,729,950
1,508,101
43,372,508
8,233,422
2,161,644;
53,182,553
1
f]
11
1
1
125
CITY OF POWAY
Property Tax Levies and Collections
Last Ten Fiscal Years
Notes:
(1) Includes. Community Facilities Districts , assessmentsof $7,005,288.
(Z) Includes Community Facilities Districts:'collections of $1,515, 168..
(3) This percentage. is X94% excluding.the;amouirmfor'the Community Facilities Districts.
(4) Includes Community Facilities 'Distriets'receivables of $3,110,877.
(5) No collections for Community :Facilities: Districts.
(6) This percentage is 98% excluding the: Community, Facilities Districts..
c includes $8,600,996 for Community Facilities Districts.
(8) This percentage is 15% excludingthe,Community Facilities Districts.
(9) Includes Community Facilities District 488 -1 assessments of $4,236,818.
(10) Includes Community Facilities District #88-1 collections of $935,580..
(11) This percentage is 97 %,excluding the amounts for CID #88 -1.
(12) Includes Community Facilities District #884 receivable of $7,527,270.
(13) Includes Community Facilities. District #88-1 collection of $196,928.
(14) This percentage is 105 excluding Community Facilities District #88 -1.
(15) Includes $10,631,580 for CID #88 -1.
(16) this percentage is 16% excluding CFD #88 -1.
(rn 'During fiscal year 1996 -97, Community facilities District #88 -.1 had its delinquent
assessments from prior years sforgiven ,and was current for its fiscal year 1996.97.
Source: County of San Diego, Auditorwd Controllers Office
126
Current
Percent
Delinquent
Delinquent
Fiscal
Year
Current Tax
of Levy
Tax
Tax
Year
Tax Levy
Collections
Collected
Receivable
Collections
1989
$ 6,622,830
$ 6,169,589
93 %
$ 660,998
$ 107,529
1990
8,009,185
7,812,459
98
518;976
115,233
1991
9,136,715
8,689,581
95
196
230,400
1992
12,639;697
12,284,495
97
377,585
424,816
1993
9,604,741
9,156,139
95
484,933
400,191
1994
12,855,280
9,585,698
74
548,364
386,361
1995
14,285,101 �
8,350,135
lz> 58 (3)
3,743,833
(4) 269,023 (5)
1996
12,712,597 �'�
9,195;911
�1 °) 72
8,701,856
(14) 811,738 (13>
1997
(17) 13,967,053
13,834,167
99
327,952
511,601
1998
13,052,091
12;731,719
98
244,785
225,298
Notes:
(1) Includes. Community Facilities Districts , assessmentsof $7,005,288.
(Z) Includes Community Facilities Districts:'collections of $1,515, 168..
(3) This percentage. is X94% excluding.the;amouirmfor'the Community Facilities Districts.
(4) Includes Community Facilities 'Distriets'receivables of $3,110,877.
(5) No collections for Community :Facilities: Districts.
(6) This percentage is 98% excluding the: Community, Facilities Districts..
c includes $8,600,996 for Community Facilities Districts.
(8) This percentage is 15% excludingthe,Community Facilities Districts.
(9) Includes Community Facilities District 488 -1 assessments of $4,236,818.
(10) Includes Community Facilities District #88-1 collections of $935,580..
(11) This percentage is 97 %,excluding the amounts for CID #88 -1.
(12) Includes Community Facilities District #884 receivable of $7,527,270.
(13) Includes Community Facilities. District #88-1 collection of $196,928.
(14) This percentage is 105 excluding Community Facilities District #88 -1.
(15) Includes $10,631,580 for CID #88 -1.
(16) this percentage is 16% excluding CFD #88 -1.
(rn 'During fiscal year 1996 -97, Community facilities District #88 -.1 had its delinquent
assessments from prior years sforgiven ,and was current for its fiscal year 1996.97.
Source: County of San Diego, Auditorwd Controllers Office
126
Ii
1
' 127
TABLE 3
Percent of
Percent of
Total Tax
Outstanding
Delinquent
'
Total Tax
Collections
Delinquent
Taxes to
Collections
to Tax Levy
Taxes
Tax Levy
$ 6,277,118
95 %
$ 1,114,239
17 %
7,927,692
99
715,702
9
7
8
98
643,751
12,709,311
101
732,787
6"
9,556,330
99
933,535
10
'
9,972,059
78
3,817,946
30
8,619,158
60 (6)
9,678,799
1 �� 68 (8)
10,007,649
79 (14),
12,218,542
(15) 96 (16)
'
14,345,768
104
460,838
3
12,957,017
99
565,157
4
Ii
1
' 127
CITY OF POWAY
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Source: County of San Diego Assessor's Office
128
Real Property
Personal Property
Fiscal
Assessed
Estimated
Assessed"
Estimated
Year
Value
Actual Value
Value
Actual Value
1989
$ 1,744,013,209
$ 1,744,013,209
$ 27,045
$ 27
1990
2,052,405,447
2,052,405,447
30,240,937
30,240,937
1991
2,413,737,613
2,413;737
37,219,612
37,219,612
1992
2,684,903,547
2,684,903,547
44,186,797
44,186,797
1993
2
2,858 ; 029,834
54,214,861
54,214,861
1994
2,964,014,503
2;964,014,503
69,952,694
69,952,694
1995
3,014,899,373
3,014,899,373
76,590,235
76,590,235
1996
3,060,395,506
3,060,395,506"
85,193,678
85,193,678
1997
3,052,732,206
3,052,732,206
87,641,025
87 ; 641,025
1998
3,135,010,184
3,1-35,0.10,184
88,447,865
88,447,865
Source: County of San Diego Assessor's Office
128
1,.
TABLE 4
Total
Percent
Assessed
Estimated
Change.From
Value
Actual Value
Previous Year
'
$ 1,771,058,715 $
1,771
13 %
2,082,646,384
2
18
'
2,450,957,225
2,450;957;225
18
2,729,090,344
2;729,090,344
11
2,912,244,695
2;912,244;695
7
4
3,033,967,197
.3;033,967,197
'
3,091,489,608
3,091,489,608
2
'
3,145;589,184
3;145;589,1'84
2
3,140,373,231
3,140,373,231
(0.2)
'
3,223,458,049
3,223
3
'
.129
CITY OF POWAY TABLE 5
Property Tax Rates - Direct and Overlapping Governments
(Per $100 of Assessed Value)
Last Ten Fiscal Years
Fiscal
School
Other
Year
City
Coun
District
District
Total
1989
.27807
.25000
.46636
.11147
1.10585
1990
.26594
.25000
.46636
.11147
1.09357
1991
.25841
.25006
.46636
.11.147
1.08624
1992
.25440
.25000
.46636
.11.147
1.08223
1993
.39145
.15465
.38705
.14314
1.07629
1994
.38977
.15465
.38705
.14314
1.07461
1995
.33754
.15465
.38705
.14314
1,02238
1996
.33588
.15465
.38705
.14314
1.02072
1997
.34783
15465
.38705
.14314
1.03267
1998
.34386
.15465
.3 87.05
.14314
1.02870
Source: County of San Diego Auditor and Controllers Office and Planning and Land Use
Development
130
CITY OF POWAY
TABLE 6
Ten Largest Taxpayers
'
June 30, 1998
'
Percentage
Name
Assessed Valuation
of Total
'
Burnham Pacific Properties Inc.
$ 23,370,000
17.7 %
'
Twin Peaks Real Estate Corp.
21,404,396
16.2
'
JMP Advisors Inc.
15,694,725
11.9
Braemar .PropertiesLP
12,995,000
9.9
Stoneridge Country Club Corp.
11,428,979
8.7
Beecroft, Joseph N. & Lois M.
11,oso,000
8.4
Gateway Medical Building LLC
10,550,000
8'.0
7.1
Shea Homes Ltd. Part nership
9,354,040
'
Retail Trust 111
8,334,708
6,3
'
Tech Business Center LLC
7,696,604
5.8
$ '13.1,878,452
100 %
1'.
'•
Source: San DiegoCounty Assessor's Office and City Finance Division
'
131
CITY OF POWAY
Special. Assessment Collections
Last Ten Fiscal Years
Fiscal
Year
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
Current
Assessment
Due
$ 213,209
213,209
212,210
215,209
209,640
216,707
182,262
-0-
-0-
-0-
Current
Assessment
Collected
$ 177,506
200,146
180,172
187,447
194,214
196
178,082
-0-
-0-
-0-
Ratio of
Collections
To Amount Due
83
94
85
87
93
91
98
-0-
-0-
-0-
(') Bonds were retired in fiscal year ended June 30, 1996.
Source: City Administrative Services Department.
132
TABLE 7
Total
Outstanding
Assessments
$ 35,703
13,063
32,038
'27,762
15,426
20,015
4,180
-0-
-0-
-0-
1
CITY OF POWAY
Computation of Legal Debt Margin
June 30, 1998
Total Valuation (1)
Debt Limit - 15 percent of total valuation
Amount of Debt Applicable
to Debt Limit:
Bonded Debt
Less Amounts Available for
Repayment of Debt:
Held by Debt Service Fund.
Total Amount of Debt Applicable
to Debt Limit
Legal Debt Margin
TABLE 8
1122,710,127
$ 78,412,609
2,162,035
$ 76,250,574
Note:
(I) 25% ofthe,assessed'valuation, after deducting redevelopment tax allocation increment.
Source: City Administrative Services Department
133
$ 3,595,000
1,432,965
CITY OF POWAY TABLE 9
Ratio of Net General Bonded Debt to Assessed Value
and Net Bonded Debt Per Capita
Last Ten Fiscal Years
Notes:
(1) Based on estimated population provided by the State "of California.
(2) After deducting $333,719,979 Redevelopment Tax Allocation increment.
(3) After deducting $532,942;779 Redevelopment Tax Allocation increment.
(4) After deducting $758,451,553 Redevelopment Tax Allocation increment.
(5) After deducting $919,469 Tax Allocation increment.
(6) After deducting $1,013 Redevelopment Tax Allocation increment.
(7) After deducting $1,074,705,577 Redevelopment Tax Allocation increment.
(8) After deducting $1,082 Redevelopment Tax Allocation increment.
(9) After deducting $1,106,345,405 Redevelopment Tax Allocation increment.
(10) After deducting ,$1,095,31'1,115,Redevelopment Tax Allocation increment.
(11) After deducting $1,132,455,143 Redevelopment Tax Allocation increment.
Source: City Administrative Services Department
134
General
Ratio to
Per
Fiscal
Assessed
Bonded
Assessed
Capita
Year
P opulation(
Valuation
Debt
Valuation
Debt
1989
43,900
$ 1
(2)
$ 10,963,000
0.76
$ 249.73
1990
43
1,549,703,605
(3)
10,515,000
0.68
239.34
1991
44,450
1,692,505,672
(4)
10,050,000
0.59
226.10
1992
45,263
1,809
(5)
9,850,000
0.54
217.62
1993
46,219
1,898,988;326
(6)
9,300,000
0.49
201.22
1994
46,579
1,959,261,620
(7)
8,875,000
0.45
190.54
1995
46,132
2,009,199,055
(8)
8,405,000
0.42
182.19
1996
45,452
2,039,243
(9)
5
0.26
117.49
1997
46,008
2,045,062,116
(10)
3,970,000
0.19
86.29
1998
47,098
2,091,002,906
(11)
3,595,000
0.17
76:33
Notes:
(1) Based on estimated population provided by the State "of California.
(2) After deducting $333,719,979 Redevelopment Tax Allocation increment.
(3) After deducting $532,942;779 Redevelopment Tax Allocation increment.
(4) After deducting $758,451,553 Redevelopment Tax Allocation increment.
(5) After deducting $919,469 Tax Allocation increment.
(6) After deducting $1,013 Redevelopment Tax Allocation increment.
(7) After deducting $1,074,705,577 Redevelopment Tax Allocation increment.
(8) After deducting $1,082 Redevelopment Tax Allocation increment.
(9) After deducting $1,106,345,405 Redevelopment Tax Allocation increment.
(10) After deducting ,$1,095,31'1,115,Redevelopment Tax Allocation increment.
(11) After deducting $1,132,455,143 Redevelopment Tax Allocation increment.
Source: City Administrative Services Department
134
'
TABLE 10
CITY OF POWAY
Ratio of Debt Service for General Bonded Debt to Total General Expenditures
Last Ten Fiscal Years
Total
Total
Ratio of Debt Service
Fiscal
Debt
General
to Total General
'
Year
Principal
Interest Service
Expenditures
Expenditures
'
1989
$ 105,000
$ 70,200 $ 175,200
$ 57,650,597
0.3
1990
110,000
62,700 172,700
59,710,513
0.3
'
1991
120,000
55,800 175,800
87,280,897
0.2
t 1992
125,000
48,450 173,450
70,480,667
0.2
1993
130,000
40,800 170,800
62,623,912
0.3
1994
140,000
32,700 172,700
69,390,109
0.2
'
1995
145,000
24,150 169,150
52,182,594
0.3
'
1996
160,000
15,000 175,000
88,022,567
0.2
1997
170;000
5,100 175,100
68,586,518
0.3
'
1998
0
0 0
68,054,286
0.0
1
Note:
(1)
Includes all governmental fund types.
'
a'
Bonds were.retired
in fiscal year ended June 30, 1997.
'
Source:
City Administrative,Services Department
'
135
CITY OF POWAY TABLE I 1
Direct and Overlapping Bond Debt
June 30, 1998
1997 -98 Assessed Valuation: $2,091,002,906 (after deducting $1,132,455,143 redevelopment
incremental valuation)
DIRECT AND OVERLAPPING TAX AND
ASSESSMENT DEBT: % Applicable Debt 6/30/98
POPULATION 47,098
San Diego County Water Authority
1.572 %
$
139,358
Metropolitan Water District
0.256
1,421,069
Escondido Union High School District
0.082
35,157
San Pasqual Union School District
4.363
1,702
Poway Municipal Water District
100.000
1,085,000
City of Poway
100.000
3,595,000
City of Poway 1915 Act Bonds
100.000
555;000
City of Poway Community Facilities District,No. 88 -1
100.000
35,445,000
South Poway Community Facilities District No. 1
100.000
26,880,000
TOTAL DIRECT AND OVERLAPPING
TAX AND ASSESSMENT DEBT
69,157,286
DIRECT AND OVERLAPPING LEASE OBLIGATION DEBT:
San Diego County General Fund Obligations
1.511 %
$
8,057,679
San Diego County Pension Obligations
1.511
5,975,627
San Diego County Superintendent of Schools Obligations
1.511
34,904
Palomar Community College District Certificates of Participation
6.546
423,526
Poway Unified School District Certificates.of Participation
20.033
220,093
City of Poway Certificates of Participation,
100.000
55,810,000
TOTAL DIRECT AND OVERLAPPING
LEASE OBLIGATION DEBT
$
70,521 -,829
COMBINED TOTAL DEBT
$
139,679,115
Ratios to Assessed Valuation:
Direct Debt ($3,595,000)
0.11%
Combined Direct Debt ($59,405,000)
2.84%
Total Direct and Overlapping Tax and Assessment Debt
3.31%
Combined Total Debt
6.68%
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/98:
$0
Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation.bonds
and non - bonded capital lease obligations.
Source: California Municipal Statistics, Inc.
136
CITY OF POWAY
TABLE 12
Demographic Statistics
'
Last Ten Fiscal Years
'
Per
Fiscal
Capita Median
School Unemployment
Year
Population
Income (2) AgeL Enrollment
Rate (2)
1989
43
$ 16,410 28.7
22,018
4.0
'
4.3
1990
43,933
16,900 28.8
24,509
1991
44,450
17,207 32.6
26,055
6.2
1992
45,263
20,720 32.6
25,873
8.1
1993
46,219
20,720 32.6
26,625
8.4
1994
46,579
20,720 32.1
27,520
7.5
'
1995
46,132
20,720 32.0
29,817
7.3
1996
45,452
20,720 32.0
30,664
5.7
t 1997
30,293
2.9
46,008
20,720 34.7
'
1998
47,098
20,720 34.9
30,984
2.5
1
1
'
(1)
Based on estimated population provided by the State of
California as of
January 1 each year..
'
(Z)
Based on census provided
by SANDAG.
'
Source:
Compiled by City Administrative Services Department
'
137
CITY OF POWAY
Property Value, Construction Activity and Bank Deposits
Last Ten Fiscal Years
(l) San Diego Trust and Savings Bank Marketing Department provided actuals for
1989 and 1990.
(Z) Estimated..assessed value from Table 4.
Source: City Planning Department
138
Property Value (Z)
Fiscal
Property Value
Year
Commercial
Residential
Exemption
Total
1989
$ 27,045,506
$ 1,776,089,820
$ 59,122,117 $
1,744,013,209
1990
30,240,937
2,113,865,650
61,460,203
2
1991
37,219,612
2,476
62,895,290
2,450,957,225
1992
44,186,797
2,750,384,816
65,481,269
2,729,090,344
1993
54,214,861
2,922,783,103
64,753,269
2,912,244,695
1994
69,952,694
3;032,530,528
68,516,025
3,033,967,197
1995
76,590,235
3,085,143,929
70,244,556
3,091,489,608
1996
85,193,678
3,130,596,779
70,201,273
3,145,589,184
1997
87,641,025
3,123,520,296
70,788,090
3,140,373,231
1998
88,447,865
3,206,158,747
71,148,563
3,223,458,049
(l) San Diego Trust and Savings Bank Marketing Department provided actuals for
1989 and 1990.
(Z) Estimated..assessed value from Table 4.
Source: City Planning Department
138
'
TABLE 13
'
Commercial Construction
Residential Construction
Number
Percent
Number
Percent
Bank
of Units
Value
Change
of Units
Value
Change
Deposits
37
$ 15,514,796
(22.8)
524
$ 86;5.11,053
3.9
$ 150,000,000
'
34
14,150,143
(8.8)
325
70,998,258
(17.9)
181,000,000
'
9
7,240,173
(48.8)
218
47,113,614
(33.6)
171,248,346
15
17,696,194
144.4
50
17,152,025
(63.6)
184,091,972
19
13,887,733
(11.5)
40
12,870,944
(25.0)
163
'
4
915,093
(93:4)
81
19,829,254
54.1
143,923,796
'
5
616,318
(32.7)
50
15,238,827
(23.1)
121,516,477
5
744,592
21.8
99
25,285,941
65.9
122,745,369
'
16
5,692,228
664.5
71
23;964,243
(5.23)
136,217,918
'
13
23,158,638
306.8
180
60,243,002
151.4
199,549,791
1,
1'
�I
'
139
CITY OF POWAY TABLE 14
Miscellaneous Statistics
June 30, 1998
Date of Incorporation
December 1, 1980
Form of Government
Council- Manager
Area
39' Square; Miles
Miles of Streets
151
Number of Street Lights
2,716
Fire Protection:
9
Number of Stations
2
Number of Staff Firefighters and Officers
32
Number of Volunteer Firefighters
23
Police Protection
Number of Stations
1
Number of Sworn Officers
48
Number of Clerical Staff
7
Senior Volunteer Patrol
27
Reserve Sheriff
15
Other Civilian Workers
9
Education
Attendance Centers
28
Number of Classrooms
1,172
Number of Teachers
1,590
Number of Students
30,984
Water
Number of Consumers
/ 12,996
Average Daily Consumption
9,748;899 gallons
Miles of Water Mains
235
Sewer:
Sanitary Sewers
135 miles
Storm Sewers
48:5 miles
Building Permits Issued
1,762
Recreation and Culture:
Parks
14 with345 acres
Community Center
1
Libraries (l)
-0-
Employees
Classified. Services (fulland part-time) 209
Management 72
Total Employees 281
Note: Library services areprovided_by the County of San Diego.
Source: Compiled by City Administrative Services Department
140
I
1
0 0
CITY OF POWAY
Single Audit Report
June 30, 1998
I
1.
1
J
' CITY OF POWAY •
I Single Audit Report
June 30, 1998
TABLE OF CONTENTS
Report on Compliance and on Internal Control over
Financial Reporting Based on:an ,Audit of General
Purpose Financial Statements Performed in
Accordance with Government Auditing Standards
' Report on Compliance with Requirements Applicable
to Each Major Program, Intemal,Control over
Compliance, and on the Schedule of Expenditures of
' Federal Awards in Accordance with OMB Circular A -133
Schedule of Expenditures of Federal Awards
t Note to Schedule of Expenditures;of Federal Awards
Schedule of Findings and Questioned Costs
;1.
PAGE
1
3
5
6
7
October 21, 1998
' The Honorable City Council of
the City of Poway, California
Report on Compliance and on Internal Control Over Financial Reportin¢
Based on an Audit of General Purpose Financial Statements
' Performed in Accordance With Government Auditing Standards
We have audited the general purpose financial statements of the City of Poway, California as
of and for the year ended June 30, 1998, and have issued our report thereon dated October 21,
1998. 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.
[1
J
Compliance
As part.of obtaining reasonable assurance about whether the City of Poway's general purpose
financial statements are free of material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts and grants, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of
our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance that are required to be reported under Government
Auditing Standards
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Poway's internal control over
financial reporting in order to determine our auditing procedures for the purpose of expressing
our opinion on the financial statements and not to provide assurance on the internal control
over financial reporting. Our consideration of the internal control over financial reporting
would not necessarily disclose all matters in the internal control over financial reporting that
might be material weaknesses. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce to a relatively
low level the risk that misstatements in amounts that would be material in relation to the
general purpose financial statements being audited may occur and not be detected within a
1
1201 DOVE STREET, SUITE 680
M ��
ore land V ���o fi7�C1!Ii(%J� (949)
NEWPORT BEACH, CALIFORNIA 92660
221 -0025
CERTIFIED PUBLIC ACCOUNTANTS
570 RANCHEROS DRIVE, SUITE 260
SAN MARCOS, CA 92069
(760) 752 -3390
October 21, 1998
' The Honorable City Council of
the City of Poway, California
Report on Compliance and on Internal Control Over Financial Reportin¢
Based on an Audit of General Purpose Financial Statements
' Performed in Accordance With Government Auditing Standards
We have audited the general purpose financial statements of the City of Poway, California as
of and for the year ended June 30, 1998, and have issued our report thereon dated October 21,
1998. 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.
[1
J
Compliance
As part.of obtaining reasonable assurance about whether the City of Poway's general purpose
financial statements are free of material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts and grants, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of
our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance that are required to be reported under Government
Auditing Standards
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Poway's internal control over
financial reporting in order to determine our auditing procedures for the purpose of expressing
our opinion on the financial statements and not to provide assurance on the internal control
over financial reporting. Our consideration of the internal control over financial reporting
would not necessarily disclose all matters in the internal control over financial reporting that
might be material weaknesses. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce to a relatively
low level the risk that misstatements in amounts that would be material in relation to the
general purpose financial statements being audited may occur and not be detected within a
1
0 0
timely period by employees in the normal course of performing their assigned functions. We
noted no matters involving the internal control over financial reporting and its operation that
we consider to be material weaknesses. However we noted certain less significant matters
involving the internal control over financial reporting that we have reported to management of
the City of Poway in a separate letter dated October 21, 1998.
This report is intended solely for the information and use of the City Council, City
management and others within the organization, federal awarding agencies and pass- through
entities and is not intended to be and should not be used by anyone other than these specified
parties.
2
1
1
I
C
1
I
1
1
October 21, 1998
The Honorable City Council of
' the City of Poway, California
Report on Compliance with Requirements
' Applicable to Each Mai or Program, Internal Control Over
Compliance and on the Schedule of Expenditures of Federal
Awards in Accordance with OMB Circular A -133
' Compliance
1]
I
1
1
11
We have audited the compliance of the City of Poway with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-
133 Compliance Supplement that are applicable to each of its major federal programs for the
year ended June 30, 1998. The City's major federal programs are identified in the summary
of audit results section of the accompanying schedule of findings and questioned costs.
Compliance with the requirements of laws, regulations, contracts and grants applicable to
each of its major federal programs is the responsibility of the City of Poway management.
Our responsibility is to express an opinion on the City of Poway's compliance based on our
audit.
We conducted our audit of compliance in accordance with generally accepted auditing
standards; the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States; and OMB Circular A-
133, Audits of State and Local Governments, and Non - Profit Organizations Those
standards and OMB Circular A -133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the City
of Poway's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable
basis for our opinion. Our audit does not provide a legal determination on the City of
Poway's compliance with those requirements.
In our opinion, the City complied, in all material respects, with the requirements referred to
above that are applicable to each of its major federal programs for the year ended June 30,
1998.
3
1201 DOVE STREET, SUITE 680
M o re land (7 e3'J 4ace
NEWPORT BEACH, CALIFORNIA 92660
(949) 221 -0025
CERTIFIED PUBLIC ACCOUNTANTS
570 RANCHEROS DRIVE, SUITE 260
'
SAN MARCOS, CA 92069
(760) 752 -3390
October 21, 1998
The Honorable City Council of
' the City of Poway, California
Report on Compliance with Requirements
' Applicable to Each Mai or Program, Internal Control Over
Compliance and on the Schedule of Expenditures of Federal
Awards in Accordance with OMB Circular A -133
' Compliance
1]
I
1
1
11
We have audited the compliance of the City of Poway with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-
133 Compliance Supplement that are applicable to each of its major federal programs for the
year ended June 30, 1998. The City's major federal programs are identified in the summary
of audit results section of the accompanying schedule of findings and questioned costs.
Compliance with the requirements of laws, regulations, contracts and grants applicable to
each of its major federal programs is the responsibility of the City of Poway management.
Our responsibility is to express an opinion on the City of Poway's compliance based on our
audit.
We conducted our audit of compliance in accordance with generally accepted auditing
standards; the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States; and OMB Circular A-
133, Audits of State and Local Governments, and Non - Profit Organizations Those
standards and OMB Circular A -133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the City
of Poway's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable
basis for our opinion. Our audit does not provide a legal determination on the City of
Poway's compliance with those requirements.
In our opinion, the City complied, in all material respects, with the requirements referred to
above that are applicable to each of its major federal programs for the year ended June 30,
1998.
3
0
Internal Control Over Compliance
1]
The management of the City of Poway is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations, contracts
and grants applicable to federal programs. In planning and performing our audit, we
considered the City of Poway's internal control over compliance with requirements that
could have a direct and material effect on a major federal program in order to determine our
auditing procedures for the purpose of expressing our opinion on compliance and to test and
report on internal control over compliance in accordance with OMB Circular A -133.
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components
does not reduce to a relatively low level the risk that noncompliance with applicable
requirements of laws, regulations, contracts and grants that would be material in relation to a
major federal program being audited may occur and not be detected within a timely period
by employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control over compliance and its operation that we consider to
be material weaknesses.
Schedule of Expenditures of Federal Awards
We have audited the general purpose financial statements of the City of Poway as of and for
the year ended June 30, 1998, and have issued our report thereon dated October 21, 1998.
Our audit was performed for the purpose of forming an opinion on the general purpose
financial statements taken as a whole. The accompanying schedule of expenditures of
federal awards is presented for purposes of additional analysis as required by OMB Circular
A -133 and is not a required part of the general purpose financial statements. Such
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.
This report is intended solely for the information and use of the City Council, City
management and others within the organization, federal awarding agencies and pass- through
entities and is not intended to be and should not be used by anyone other than these specified
parties.
0
CITY OF POWAY
;�. Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 1998
Federal Grantor/ Program
Pass - through Grantor/ CFDA Identification Federal
Program Title, Number Number Expenditures
DEPARTMENT OF HOUSIN G
AND URBAN DEVELOPMENT
'
Passed through the County of San Diego:
Community Development Block Grant
14.218
33527
$ 26,534
Community Development Block Grant
14.218
34766
94,590
'
Community Development Block'Giant
14.218
36794
9,832
Community Development Block Grant
14.218
36795
14,214
'
Community Development 'Block Grant
14.218
36796
80,717
Total Community Development Block Grant
225,887
'
FEDERAL EMERGENCY
MANAGEMENT AGENCY
'
Passed through the State of California:
Public Assistance Grant
83.544
1203 -DR
55,930
DEPARTMENT OF JUSTICE
'
Direct Program:
COPS Ahead Grant
16.710
CA14ZZF
25,000
'
Total Federal. Expenditures
$ 306,817
*Major Program
' See Accompanying Note to Schedule of Expenditures of Federal Awards.
', 5
• •
CITY OF POWAY
Note to Schedule of Expenditures of Federal Awards '
June 30, 1998
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES '
Basis of Accounting ,
Funds received under the various grant programs have been recorded within special
revenue funds of the City of Poway. The City utilizes the modified accrual: method of
accounting for this fund type. The accompanying Schedule of Expenditures of Federal
Awards has been prepared accordingly.- ,
Schedule of Expenditures of Federal Awards
The "Schedule of Expenditures of Federal Awards presented is prepared from onlythe 1
accounts of the various grant programs and, therefore, does not present the financial ,
position or results of operations of the City of Poway.
1
1
1.
1
I
I
1
1.
1�
CITY OF POWAY •
Schedule of Findings and Questioned Costs
For the Year Ended June 30;,_1998
I. SUMMARY OF AUDIT RESULTS
A. Financial statements
1. Type of auditors': report issued:
2. Internal control over financial reporting:
a Material weakness(es) identified?
b. Reportable`condition(s) identified not
considered to be material weaknesses ?.
3. Noncompliance material to financial
statements noted?
B. Federal Awards
1. Internal control over majonprograms:
a. Material weakness(es) identified?
c. Reportable;condition(s) identified not
considered to be material weaknesses?
2. Type of auditors" report issued on
compliance for major programs:
3. Any audit findings disclosed that are
required to, be reported in accordance
with Circular A -133, Section .510(a)?
4. Identification of major programs
Unqualified
_y es x no
_y es x none reported
_y es x no
_y es x no
_y es x none reported
Unqualified
_y es x no
CFDA Numbedsl Name of Federal Program or Cluster
14.218 Community Development Block Grant
5. Dollar threshold used to distinguish
between Type A and Type B programs: $300,000
6. Auditee qualified as low -risk auditee? x y es no
7
0 0
CITY OF POWAY
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 1998
II. FINDINGS — FINANCIAL STATEMENT AUDIT
None
III. FINDINGS AND QUESTIONED COSTS — MAJOR FEDERAL AWARD PROGRAMS
AUDIT
None
E