Item 11 - Comprehensive Annual Financial Report AGENDA REPORT SUMMARY
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Mang~~)
A
INITIATED BY: John D. Fitch, Assistant City Manager~¥
Peggy A. Stewart, Director of Administrative Service~-~l
Christine Tsung, Finance Manager
DATE: February 14, 1995
SUBJECT: Compehensive Annual Financial Report
ABSTRACT
Annually, The City's staff prepares a Comprehensive Annual Finance Report (CAFR) to
provide the City Council and the community with a comprehensive review of the City's
financial position and the financial transactions for the fiscal year.
ENVIRONMENTAL REVIEW
Environmental review is not required for this agenda item according to CEQA guidelines.
FISCAL IMPACT
None
S, DDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None
RECOMMENDATION
It is recommended that the City Council accept and file the attached report.
~CTION
i of 7 FEB 14 ~995 ITEM 11 ,
- AGENDA REPORT
CITY OF POWAY
This report is included on the Consent Calendar. There will be no separate discussion of the report pdor to approval by the
City Council unless members of the Council staff or public request it to be removed from the Consent Calendar and
discussed separately. If you wish to have this report pulled for discussion, please fill out a slip indicating the report number
and give it to the City Clerk prior to the beginning of ~he City Council meeting,
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Mana~
INITIATED BY:r~99~w~'u'r~rur~um'n'~Lr~~yDA.F~r~SS~o?~[~]~ive
Servi ce~2~
Christine Tsung, Finance Manager C~-}
DATE: February 14, 1995
SUBJECT: Comprehensive Annual Financal Report
BACKGROUND
The City has finished its annual report for the fiscal year ending June 30, 1994.
The report was audited by Moreland & Associates, an accounting firm. Based upon
their audit, they have issued an unqualified statement with regard to the fair,
material representation of the City's financial position, according to generally
accepted accounting standards. Together with the financial report, the auditor also
issued a communication letter and Compliance Report on Gann Limit.
The City has received a Certificate of Award for Outstanding Financial Reporting
from the California Finance Officers Association as well as the Certificate of
Achievement for Excellence in Financial Reporting from the Government Finance
Officers Association of the United States and Canada for fiscal year ending June 30,
1993. This year's report has again been submitted for the awards. It has been the
City's policy to adopt the latest reporting requirements recommended by the
government codes as well as the Government Accounting Standards Board, and these are
reflected in the report.
FINDINGS
Copies of the communication letter and a Compliance Report on Gann Limit are
attached. The independent auditor's report from Moreland & Associates, as on page 3
of the Comprehensive Annual Financial Report (CAFR), noted that "The general purpose
financial statements referred to above present fairly, in all material respects, the
financial position of the City of Poway at June 30, 1994, and the results of its
operations and cash flows of its proprietary fund types and nonexpandable trust fund
type for the year then ended, in conformity with generally accepted accounting
ACTION:
2 of 7 FEE) 1 4 1995 i?E 11
Agenda Report
- February 14, 1995
Page 2
principles." The communication letter indicated that the auditors noted no
unusual transactions during the year, or transactions for which there is a lack of
authoritative guidance or consensus.
ENVIRONMENTAL REVIEW
Environmental review is not required for this agenda item according to CEQA
guidelines.
FISCAL IMPACT
None
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCF
None
RECOMMENDATION
It is recommended that the City Council accept and file the attached report.
JLB:PAS:CT:eg
Attachments:
I. Comprehensive Annual Financial Report (CAFR} for
Fiscal Year Ending June 30, 1994 (Limited Distribution/
2. Communication and Gann Limit Letters
c:\data\wpfi [es\cafr.agn
3of7
FEB 1 4 1995 ITEM
oreland (714) 760-9788
CERTIFIED PUBLIC ACCOUNTANTS 2111 PALOMAR AIRPORT ROAD SUITE 150
CARLSSAD CALIFORNIA 92009
(619) 43~ 8476
October 7, 1994
To the Honorable City Council
of the City of Poway
We have audited the general purpose financial statements of the City of Powa3], California
for the year ended June 30, 1994, and have issued our report thereon dated October 7,
1994. Under generally accepted auditing standards, we are providing you the attached
information related to the conduct of our audit.
Our responsibility under generally accepted auditing standards is to express an opinion
on the financial statements of the City based on our audit. In carrying out tMs
responsFoility, we assessed the risk that the financial statements may contain a material
misstatement, either intentional or unintentional, and designed and conducted our audit
to provide reasonable, but not absolute, assurance that misstatements material to the
financial statements would be detected. In addition, we considered the internal control
structure of the City to gain a basic understanding of the interne control policies and
procedures in order to design an effective and efficient audit approach, not for the
purpose of providing assurance on the internal control structure.
Si_maificant Accounting Policies
The significant accounting policies of the City are described in note 1 to the general
purpose financial statements. No new accounting policies were adopted and the
application of existing policies was not changed during the year.
We noted no signLficant, unusual transactions during the year, or transactions for which
there is a lack of authoritative guidance or consensus.
Management Sudgments and Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by
management and are based upon management's current judgments. We noted that the
City's significant account balances are not dependent upon management's estimates.
Audit Adjustments
The City staff made considerable progress in the closing of the accounting records and
preparing for the fiscal year ended .lune 30, 1994 audit, which resulted in fewer audit
adjustments than were necessary in prior year audits. However, as a result of our
testwork, some adjusting entries were still required to the financial statements.
4 of 7 FEB 1~. 1995 ITEM 11 ~
The Honorable City C( -cil
of the City of Poway
October 7, 1994
Page 2
Other Information in Documents Containing Audited Financial Statements
Our responsibility for other information in documents containing the City's general
purpose financial statements and our report thereon does not extend beyond financial
information identified in our report, and we have no obligation to perform any
procedures to corroborate other information contained in these documents. We have,
however, read the other information included in the City's comprehensive annual
financial report; and no matters came to our attention that cause us to believe that
such information, or its manner of presentation, is materially inconsistent with the
information, or its manner of presentation, appearing in the financial statements.
Disagreements With Management
There were no disagreements with management on financial accounting and reporting
matters.
Consultation With Other Accountants
We are not aware of any instances where management has consulted with or obtained
opinions, written or oral, from other independent accountants during the past year that
were subject to the requirements of Statement on Auditing Standards No. 50, Reports
on the Application of Accounting Principles.
Ma_ior Issues Discussed With Management Prior to Retention
We generally discuss a variety of matters, including the application of accounting
principles and auditing standards, with management each year prior to retention as the
City's auditors. These discussions occurred in the normal course of our professional
relationship.
This information is intended solely for the use of the City Council, and should not be
used for any other purpose. However, we understand that this document may be public
information.
5 of 7 FEB141995 l"r~.~/~ 11
b ~ NEWPORT CENTER DRIVE SUITE 940
NEWPORT BEACH, CALIFORNIA 92660
Moreland (714) 760-9788
CERTIFIED PUBLIC ACCOUNTANTS 21~ PALOMAR AIRPORT ROAD SUITE ~50
CARLSBAD, CALIFORNIA 92009
October 7, 1994 (619) 431-8476
The Honorable City Council of the City of Poway, California:
We have applied the procedures enumerated below to the accompanying Appropriations
Limit worksheet #6 of the City of Poway for the year ended June 30, 1994. These
procedures, which were agreed to by the League of California Cities and presented in
their Article XIIIB Appropriations l.imitation Uniform Guidelines, were performed
solely to assist you in meeting the requirements of Section 1.5 of article XIIIB of the
California Constitution. This report is intended for the information of management and
the City Council. This restriction is not intended to limit the distn'bution of this report,
which is a matter of public record.
The procedures performed and our findings were as follows:
1. We obtained the completed worksheets (#1 through #7) presented in the Article
XIIIB Appropriations Limitation Uniform Guidelines (or other alternative
computations), and determined that the limit and annual adjustment factors were
adopted by resolution of the City Council. We also determined that the
population and inflation options were selected by a recorded vote of the City
Council.
2. For the accompanying Appropriations Limit worksheet # 6, we added line A, last
year's limit, to line E, total adjustments, and agreed the resulting amount to line
F, this year's limit.
3. We agreed the current year information presented in the accompanying
Appropriations l.imit worksheet #6 to the other worksheets described in #1
above.
4. We agreed the prior year appropriations limit presented in the accompanying
Appropriations Limit worksheet #6 to the prior year appropriations limit
adopted by the City Council during the prior year.
These agreed upon procedures are substantially less in scope than an audit, the
objective of which is the expression of an opinion on the accompanying Appropriations
f.imit worksheet #6. Accordingly, we do not express such an opinion.
Based on the appl/cation of the procedures referred to above, nothing came to our
attention that caused us to believe that the accompanying Appropriations Limit
worksheet #6 was not computed in accordance with Article XIIIB of the California
Constitution. Had we performed additional procedures or had we made an audit of the
accompanying Appropriations Limit worksheet #6 and the other completed worksheets
described in #1 above, matters might have come to our attention that would have been
reported to you.
FEB141995 ITEM 11
6of7
CITY OF POWAY
APPROPRIATIONS LIMIT WORKSHEET #6
FY 1993-94
BUDGET
AMOUNT
A. LAST YEAR'S LIMIT I $65,406,418 I
B. AD~t~STIV~NT FACTORS
1. Population % I 2.0%
2. Inflation % [ 2.76%
Total Adjustment % [ 4.76%j
C. ANNUAL ADJIJSTMENT [ $3,113,346]
D. OTHE~R ADJUSTMENTS:
Assumed Responsibility
(Lost Respons~ility)
(Transfer to Private)
(Transfer to Fees)
Sub-total { _ ]
E. TOTAL ADJUSTMENTS [ $3,113,346 ]
F. CURRENT YEAR LIMIT [ $68,519,764 [
FEB lA 1995 ITEM 11 ~
7of7
CITY OF POWAY
BOB EMERY. Deputy Mayor
B. TONY SNESKO, Councilmember
SUSAN CALLERY, Councilrnember
MICKEY CAFAGNA, Councilmember
November 30, 1994
Honorable Mayor and Members of the City Council
Poway, 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, 1994. 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 of 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 report from the City'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 13325 Civic Center Drive
/
"~-Mailing Address: P,O. Box 789, Poway, California 92074-0789 · (619) 748-6600, 695-1400~'
Annual Financial Report
November 30, 1994
Page 2
The Reportinq Entity and Its Services
Included within the City's financial statements is the financial information of
the Poway Redevelopment Agency. Although the Agency is legally separate from the
- City, its financial operations are closely related thereto. The activities of
the Agency 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 the Agency.
-- 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.
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 46,579 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 prov'ided by the City; sheriff
services are contracted through the County of San Diego.
-- Poway has been popularly dubbed the "City in the Country." Within its boundaries
are 340 acres of developed parks and 57 miles of riding and hiking trails. Home
lots are often larger than in most other areas, with a median value of $219,598.
-- Poway is predominately a 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
Annual Financial Report
November 30, 1994
Page 3
falls principally between October and April. The average daytime temperature in
Poway is about 74oF. Poway has set aside over 70 percent of total land use as
open space, nearly 3,000 acres of dedicated public open space, and 140 acres of
developed parkland featuring community parks and centers.
The local economy is primarily based on automobile and transportation, general
merchandising, industrial park wholesale consumer products, and retail sales of
food and gas. The median annual household income in Poway is approximately
$53,300 which is the highest median income of any city in San Diego County. The
expected population at buildout is approximately 55,000. Due to a slow economy,
the South Poway Business Park--a 2,500-acre project encompassing 495 acres
designated for light industrial, a 14g-acre industrial park, and 28 acres of
commercial and office use--had no major development during fiscal year 1993-94.
This year, we faced the most complex governmental financial challenge in
California's history. Despite a monumental recession and reductions in the
defense industry with the end of the Cold War, Poway has managed to maintain a
balanced budget by a reduction in work force guided by a management audit and a
nominal increase in fees as proposed by an outside consultant. Sales tax revenue
increased 10.5% during fiscal year 1993-94 reaching another historical high in
the City's history.
Major Initiatives
For the Year: During 1994, the City moved on with the Scripps Poway Parkway
Project. The east end of Scripps-Poway Parkway, a six-lane prime arterial which
will eventually connect Interstate 15 and Highway 67, is bringing traffic through
South Poway Business Park smoothly. The construction continues, and by 1996 the
final 3.1 miles will be completed. Espola Road reconstruction and Community Road
storm drains were both completed in 1994. The fiscal year 1993-94 street
maintenance program resurfaced segments of streets at Espola Road and Pomerado
Road and provided for citywide slurry seal and stripping of the streets. A total
of $1.7 million was spent on street maintenance in 1994. These improvements have
improved Poway's traffic flow which was once identified as one of Poway's major
concerns.
Several park and recreation facilities were also completed in 1994. Old Poway
Park, containing several historical buildings and an operating train track, had
its east end finished this year. Rail, concrete paths, and landscaping were
added to the historical site of the City. South Poway Sports Park opened this
year. A unique public-private partnership, the Sports Park is a a 15-acre
complex complete with three softball fields, racquetball courts, four sand
volleyball courts, and a children's playground operating on a pay-for-play basis.
During 1994, the City received $105,~00 from a community development grant to do
a pedestrian bridge and to finish accessibility renovations in City facilities
for compliance with the Americans with Disability Act of 1990.
X
Annual Financial Report
November 30, 1994
Page 4
-- Fo~ the Kutu~e: The C(ty has acqu(red a l(brary s(te and (s proceed(ng w(th
design of a full-service library in Poway, Major efforts will be placed on
economic development and future development of the South Poway Business Park. An
_ $8 million water treatment plant upgrade is planned to begin in early 1995 to
construct new deep-bed, dual-media filters to comply with federal and state
drinking water standards.
- Transportation, easing travel in and through Poway, continues to be a high
priority with City. With the 1988 voter-approved increase in sales tax, more
than $4.25 billion will be generated locally to help pay for local highways and
road projects. Poway was one of the first recipients of TransNet funds. The
City received $7.8 million for street construction in 1994. The City plans to
spend over $42 million in total for the Scripps-Poway Parkway between Sycamore
_ Canyon and Highway 67, eventually linking Highway 67 and Interstate 15. The
total current budgeted construction extends over 3.1 miles to be completed by
December 1996. Other recommendations made by the City's Transportation Task
Force include construction of Route 125 from Scripps-Poway Parkway to Santee, and
-- construction of Route 603/604 from Ramona to Escondido and Interstate 15.
_ Accountinq System and Budqetary 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 {water and 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 not 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 compiled monthly and reported to management and the
City Council as part of the City's computerized financial reporting systems.
These financial reports for all funds compare the budgeted figures to the
-- xi
Annual Financial Report
November 30, 1994
Page 5
recorded transactions and 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 capital improvement projects. At each quarter
end, an interim 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 opera~ions and
budget controls.
Financial Hiqhliqhts of 1993-1994
The City continued an aggressive capital improvement program administering 145
new or continuing pr. ojects designed to expand and maintain the City's infra-
structure. 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 $1.907 million, or 3.1%, from the beginning of the year to the end
of the year. Major changes in the City's investment portfolio include a
$4,058,000 decrease in the San Diego County Investment Pool, a $3,899,000
reduction in the State Local Agency Investment Pool, a $2,416,000 reduction in
medium-term corporate notes and federal agency issues, a $2,461,000 increase in
U.S. treasury securities, a $6.4 million increase in U.S. government securities
mutual funds, and a $593,000 reduction in mortgage-backed securities.
Financial Statement Analysis
General Governmental Functions
Governmental fund types include General, Special Revenue, Debt Service, Capital
Projects (City of Poway, Poway Redevelopment Agency, and Community Facility
District), and Fiduciary Fund Type Expendable Trust.
. xii
Annual Financial Report
-- November 30, 1994
Page 6
Revenues
For the 1993-94 fiscal year, revenues for governmental fund types and the
-- expendable trust fund totaled $47,974,695 as compared to $39,729,131 for the
prior fiscal year--an increase of $8,245,564, or 20.8%. The amount of revenue
from each revenue source and the changes over the previous year are shown in the
following tabulation:
Increase
FY 93-94 Percent of (Decrease)
-- Revenue Sources Amount Total From 1993
Taxes $19,995,042 41.7 $ 1,042,591
-- Licenses and Permits 335,037 0.7 (5,847)
Intergovernmental 10,374,690 21.6 6,730,973
Charges for Services 7,061,989 14.7 529,831
Fines and Forfeitures 91,593 0.2 19,846
-- Interest and Rentals 8,995,116 18.7 768,275
Developer Fees 265,576 0.6 (462,926)
Other 855,652 1.~ (377,179)
Total ~ 100.0 $ 8.245.56~4
_ A pie chart depicting the above information is shown below.
City of Poway
Revenue Composite
(41.7%)
-- ~ Taxes
(0.7%)
[] Licenses & Permits
(1. S%) · Intergovermental
-- (0.6%)
(21.6%) rm Charges for Services
· Fines & Forfeitures
(18.7%) B Interest & Rentals
(14.7%) (0.2%) · Developer Fees
-- [] Other
Xlll
Annual Financial Report
November 30, 1994
Page 7
Revenues from taxes increased by 5.5% in 1994. The bulk of the $1,042,591
increase was attributable to property taxes ($662,696) and greater sales tax
income ($341,589). Revenues from intergovernmental sources increased 184.7%
($6,730,973) in 1994. Of this amount, $7,481,844 was due to a special Prop. A
revenue increase for Scripps Poway Parkway, and there was a reduction of SB-300
revenue totaling $809,750. A major revenue increase occurred in charges for
services such as building inspection, engineering inspection and plan checks
($529,831) due to the move-in of South Poway Industrial Park business and a major
shopping center opening during fiscal year 1993-94.
Because of the general slowdown in the economy and development, revenues
generated from developer fees during fiscal year 1993-94 decreased $462,926 over
the prior year. The interest and rentals revenues category increased by $768,275
over the prior year. This is mainly due to 1993 tax allocation bond proceeds and
the Low and Moderate Income Housing Fund generating $531,253 additional interest
income over last year. The Other revenue category decreased by $377,179. Most
of this is attributable to the reduction in PERS excess earnings of $46],887.
Expenditures
Changes in the level of expenditures for major functions of the City over the
previous year are shown in the following tabulation:
Increase
FY 93-94 Percent of (Decrease)
Function Amount Total From 1993
General Government $ 6,018,367 8.7 $ (936,137)
Public Safety 8,371,953 12.1 49,342
Public Works 3,001,012 4.3 395,676
Community Services 4,216,928 6.0 (72,565)
Capital Expenditures 18,312,184 26.4 (378,238)
Other 10,045,597 14.5 4,621,643
Debt Service:
Principal 7,033,457 10.1 1,940,348
Interest 12,390,611 17.9 4,477,835
Bond Issuance Costs - - (3,331,707)
Total ~ 100.~0 ~ 6~766,197
xiv
Annual Financial Report
-- November 30, 1994
Page 8
- City of Poway
Expenditure Composite
_ I_FY_!993..-!994]
(6.0%) (4.3%)
(12.1%) [] General Government
(26.4%) ~ Public Safety
(8,7%) m Public Works
[] Community Services
m Capital Expenditures
(17.9%) mOther
(14.5%) [] Principal
(10.1%) [] Interest
Total expenditures increased by $6,766,197 with the bulk of the increase due to
_ an increase in debt service expenditures ($6,418,183). This increase was mainly
due to the payment of the 1993 tax allocation bond debt service in the
Redevelopment Agency Debt Service Fund {originally issued in 1992-93}.
- The cost for the operating departments decreased 2.5% over the prior year. This
net decrease of $563,684 was mainly due to a decrease in general government
personnel costs of $936,137 as a result of layoffs. Fiscal year 1994 was the
-- first year the City had to lay off personnel.
General Fund Surplus
Amount (In Thousands)
Year Ended June 30 %
1994 1993 Chanqe
- Revenues $15,758 $15,745 0.1
Expenditures 15,595 16.728 (6.8)
Excess (Deficiency) of
Revenues Over Expenditures 163 (983) -
Other Financing Sources (Uses), Net (169) 819 -
Decrease in Fund Balance $(6) $ (164) 96.~3
At the end of fiscal year 1993-94, the fund balance in the General Fund was
$26,233,357 compared to the balance at June 30, 1993 of $26,238,894, or a
- decrease of $5,537. Included in the operating transfers out are principal
XV
Annual Financial Report
November 30, 1994
Page 9
paydowns of the 1986 and 1992 certificates of participation amounting to
$385,000. The fund balances remain adequate in the major operating funds. There
were decreases in the general, special revenue, debt service, capital projects,
and the expendable trust funds.
Fiscal year 1993-94 saw the completion of various ongoing capital projects.
There was a $378,238 expenditure decrease in capital expenditures in FY 1994.
This was a result of an increase of $6.0 million in the special revenue funds
($4.7 million in Low and Moderate Income Housing), and a $6.4 million decrease in
the capital projects funds ($5.3 million in the redevelopment area funds).
The general fixed assets of the government are those fixed assets used in the
performance of general governmental functions and exclude the fixed assets
accounted for in the enterprise funds. The general fixed assets totaled
$76,081,916 as of year-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 is in
accordance with generally accepted accounting principles. The stated values for
the assets for the enterprise funds represent the original c~st ~f the assets
which is considerably less than the present-day values.
Enterprise Operations
The City's water utility had a net increase in retained earnings of $1,109,532,
which included interest income of $642,503, net operating loss of $453,512, and
tax revenue of $1,455,776. Total operating revenue was $114,843 more than the
prior year. This was mainly due to a decrease in connection fees of $230,912 and
an increase for charges for services of $363,702.
The sewer utility sustained a net increase in retained earnings of $1,201,586,
which included operating income of $207,328, and interest income of $1,041,479.
Total operating revenue was $211,706 less than last year, and sewer service
operating expenses decreased by $832,387 due to a decrease of $634,937 in the
Metropolitan Sewer maintenance and operations charge imposed by the City of
San Diego.
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 5.3 for the water fund (a ratio of 1.0 or greater is
usually deemed an acceptable level of liquidity for an enterprise fund}. The
sewer fund's acid test ratio is about 50.8, 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 as
depreciation and debt service that affect the financial statements are not
xvi
Annual Financial Report
November 30, 1994
-- Page 10
_ 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 compensation program
_ which is administered by two major plan administrators. City employees can con-
tribute 25 percent of their salaries up to $7,500 per year. The balance in the
fund at the end of the year was $3,939,611.
-- The South Poway and the Parkway Business Center Community Facilities District
funds account for debt service payments collected through property tax
assessments to fiscal agent-trustee for payment of bonds. The assets at fiscal
-- year-end in each fund were $5.0 and $4.5 million, respectively.
Cash Manaqement
-- Cash was invested primarily in the County of San Diego's Treasury Pool,
Certificates of Deposits with savings and loan institutions and banks, the State
of California's Local Agency Investment Fund, U. S. Government Securities,
-- medium-term corporate notes, and Government Securities-backed mutual funds. The
average yield on maturing investments during fiscal year 1993-94 was 6.1% as
compared with 7.2% in the prior year. Investment interest revenue was
_ $3,566,198--a decrease of $646,546 from the previous year. This was the result
of a decline in the general interest rate level at the market in 1993-94.
Debt Administration
At June 30, 1994, the City and the Poway Redevelopment Agency had general long-
term debt account groups amounting to $218.8 million which is detailed in the
-- Notes to Financial Statements. This includes $121.2 million for tax allocatlon
bonds, $49.4 million for certificates of participation, $5.3 million contracts
payable to the County of San Diego and the cemetery district, $0.5 million
_ general obligation bonds, $28.2 million in advances from other funds, notes
payable of $14.1 million, and $0.1 million obligation for a capital lease.
The Water Fund has included in long-term debt $7,925,000 of general obligation
- bonded indebtedness, all of which was assumed from the Poway Municipal Water
District. An additional $338,339 has been issued by the City in 1915 Act
Assessment District bonds.
The Sewer Fund has included in long-term debt $150,000 in general obligation
bonded indebtedness, which was assumed from the Pomerado County Water District.
- The City also has $476~543 in general long-term bonded indebtedness which was
assumed from the Poway Municipal Water District. The District issued those bonds
for the purchase of fire equipment and the construction of new fire stations.
xvii
Annual Financial Report
November 30, 1994
Page 11
There are no current plans to issue additional general obligation debt. At the
present time, the rating by Moody's Investment Service is "Baal" for Pomerado
County Water District (sewer) Bonds and "A" for Poway Municipal Water District
(water) Bonds. Additionally, Standard and Poors has rated Poway Municipal Water
District's fire bonds as "A-".
Risk Manaqement
The City of Poway is a member of the Southern California Joint Powers Insurance
Authority, a consortium of approximately 75 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 retro-
spective method.
At June 30, 1994, the City self-insured for each loss to the extent of $20,000.
Losses between $20,000 and $10,000,000 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 expended as they occur, and the City intends to pay all of
its unpaid claims and judgments from available financial resources.
GFOA Certificate of Achievement for
Excellence in Financial Reportinq
The Government Finance Officers Association of the United States and Canada
(GFOA) has awarded a Certificate 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, 1993. 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 Certificate of
Achievement program requirements, and we are submitting it to GFOA to determine
its eligibility for the certificate.
Independent Audit
The Government Code of the State of California requires general law cities such
as Poway 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.
XVlll
Annual Financial Report
November 30, 1994
Page 12
Acknowledqements
Preparation of the City's Comprehensive Annual Financial Report is an under-
taking of the Administrative Services Department. Special credit is due to
Christine Tsung, Finance Manager, and the staff in the Finance Division. Their
- year-long hard work and dedication have made this report possible.
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,
-- ~ames ~L. Bow~rsox / Pegg~ Stewart
C~_~anager Director of Administrative Services
c: \data\upf i t es\caf r. rpt
xix
- Certificate of
- Achievement
for Excellence
in Financial
- Reporting
- Presented to
- City of Poway,
California
For its Comprehensive Annual
- Financial Report
for the Fiscal Year Ended
June 30, 199~3
-- 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.
President
Executive Director
xxi
xxii
FINANCIAL SECTION
610 NEWPORT CENTER DRIVE SUITE 840
NEWPORT REACH. CALIFORNIA 92660
Moreland ,7 4,760_9786
C[RTIFIED PUBLIC ACCOUNTANTS 21~ PALQMAR AIRPORT ROAD SUITE 150
CARLSBAO. CALIFORNIA 92009
(619) 431 6476
_ October 7, 1994
The 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 as of and for the year ended June 30, 1994, as listed in the table of contents.
-- These financial statements are the responsibility of the City of Poway management. Our
responsibility is to express an opinion on these general purpose financial statements based
on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance
- about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our
_ 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 at June 30, 1994, and
the results of its operations and the cash flows of its proprietary fund types and
nonexpendable trust fund type for the year then ended, in conformity with generally
'- accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose
-- financial statements taken as a whole. The accompanying combining and 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 presented 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
CITY OF POWAY
Combined Balance Sheet - All Fund Types and Account Groups
.rune 30, 1994
Governmental Fund Types
Special Debt Capital
Assets and Other Debits General Revenue Service Projects
Cash and investments (Note 2) $ 4,846,851 $ 21,670,955 $ 5,980,699 $ 40,680,355
Receivables (net of allowance
for uncollectibles):
Taxes 324,347 20,398 274,024
Accounts 134,286 1,136
Interest 853,785 249,446 229,114 442,735
Notes 7,095
Due from other funds (Note 12) 1,371,398 10,000
Due from other governments 247,359 13,606 2,422
Deposits 4,969 10,969
Inventories, at cost 59,585
Advances to other funds (Note 12) 19,397,212 5,205,100 125,660
Fixed assets held for resale 2,366,651
Restricted assets:
Cash and investments (Notes 2 & 7)
Cash and investments with fiscal
agents (Notes 2 & 7) 6,315 14,317,110' 338,966
Interest and taxes receivable (net)
(Note 7)
Property, plant and equipment (net)
(Notes 4 & 5)
Amount available in debt service fund
Amount to be provided for long-
term debt
Total Assets and Other Debits $ 27,234,823 $ 27,179,020 $ 20,800,947 $ 43.977.758
See Accompanying Notes to Financial Statements.
Proprietary Fiduciary Account Groups
Fund Types Fund Type General General Totals
Internal Trust and Fixed Long-Term (Memorandum Only)
Enterprise Service Agency Assets Debt 1994 1993
20,837,006 $ 3,516,245 $ 7,090,779 $ 104,622,890 $ 121,620,020
40,734 659,503 760,935
1,894,195 130,256 2,159,873 1,976,082
117,891 227,822 2,120,793 1,789,314
7,095 7,095
2,788,262 4,169,660 1,419,371
263,387 338,342
13,378 29,316 29,316
813,361 872,946 846,655
5,345,238 30,073,210 30,592,412
2,366,651 2,366,65t
5,101,836 5,101,836 4,348,637
232,730 6,846,469 21,741,590 25,222,142
38,323 38,323 23,561
26,672,278 $ 76,081,916 102,754,194 95,291,391
$ 20,799,897 20,799,897 24,283,089
197.97%106 197,97%106 198,077,953
63,854,498 $ 3,516~245 $ 14,336,060 $ 767081,916 $ 218,779~003 $ 495,760,270 $ 508.992,966
(Continued)
CITY OF POWAY
Combined Balance Sheet - All Fund Types and Account Groups (Continued)
June 30, 1994
Governmental Fund Types
Special Debt Capital
Liabilities, Equity, and General Revenue Service Projects
Other Credits
Liabilities:
Accounts payable $ 352,549 $ 160, I00 $ 921,173
Accrued liabilities 612,816 35,191 $ 1,050 11,623
Due to other funds (Note 12) 10,000
Deposits 36,10! 73,946
Due to bondholders
Deferred revenue
Payable fi.om restricted assets:
Bonds payable within one year
(Note 6)
Accrued liabilities
Deferred compensation payable
(Note 9)
Advances from other funds
(Notes 6 & 12) 897,788 980,910
Contracts payable (Note 6)
Notes payable (Note 6)
Obligation under capital lease (Note 6
Bonds payable (Note 6)
Certificates of Participation (Note 6)
Total Liabilities 1,001,466 1,103,079 1,050 1,987,652
Equity and Other Credits:
Contributed capital
Investment in general fixed assets
Retained earnings:
Reserved (Note 11)
Unreserved
Fund Balances:
Reserved (Note 11) 19,665,100 21,410,139 20,799,897 42,927,296
Unreserved:
Designated (Note 11) 6,568,257 4,160,946
Undesignated (Deficit) 504,856 (937,190)
Total Equity and Other Credits 26,233,357. 26,075,941 20,799,897 41,990,106
Total Liabilities, Equity
and Other Credits $ 27,234,823 $ 27,179,020 $ 20,800,947 $ 43,977,758
See Accompanying Notes to Financial Statements.
6
Proprietary Fiduciary Account Groups
Fund Types Fund Type General General Totals
-- Internal Trust and Fixed Long-Term (Memorandum Only)
Enterprise Service Agency Assets Debt 1994 1993
$ 896,557 $ 13,660 $ 22,057 $ 2,366,096 $ 3,554,726
-- 104,949 10,680 776,309 1,459,089
4,159,660 4,169,660 1,419,371
432,696 542,743 545,954
-- 5,256,602 5,256,602 7,625,212
168,390
500,000 500,000 450,000
359,584 359,584 345,471
3,939,611 3,939,611 3,409,376
20,000 $ 28,174,512 30,073,210 30,592,412
5,407 5,300,863 5,306,270 5,306,730
14,094,983 14,094,983 12,950,363
117,102 117,102 140,838
8,413,339 121,646,543 130,059,882 134,462,458
49,445,000 49,445,000 49,830,000
10,279,836 24,340 13,830,626 218,779,003 247,007,052 252,260,390
-- 4,712,430 4,712,430 4,779,921
' $ 76,081,916 76,081,916 67,499,070
-- 4,745,945 3,491,905 8,237,850 6,823,542
44,116,287 44,116,287 42,948,130
-- 514,209 105,316,641 125,817,339
10,729,203 9,647,559
-- (8,775) (441,3.09) (782,985).
53,574,662 3,491,905 505,434 76,081,916 248,753,218 256,732.576
$ 63,854,498 $ 3,516,245 $ 14,336,060 $ 76,081,916 $ 218,779,003 $ 495,760,270 $ 508,992,966
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, 1994
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
Revenues:
Taxes (Note 3) $ 7,889,870 $ 377,744 $ 11,727,428
Licenses and permits 335,037
Intergovernmental 1,566,910 3,807,780 $ 5,000,000
Charges for services 4,453,428 1,170,475 1,438,086
Fines and forfeitures 91,593
Interest and rentals 869,443 4,162,180 1,235,078 2,725,915
Developer fees 248,076 17,500
Other 551,830 41,566 380 261,876
Total Revenues 15,758,111 9,807,821 12,962,886 9,443,377
Expenditures:
Current:
General government 2,531,457 610,371 2,876,539
Public safety 8,371,953
Public works 1,404,125 1,596,887
Community services 2,496,504 1,600,108
Capital expenditures 755,107 7,151,767 10,405,310
Payment to education augmentation fund 545,597
Tax sharing agreement expenditure 9,500,000
Debt service:
Principal 23,736 6,999,721 10,000
Interest and fiscal charges 12,069 12,378,542
Bond issuance costs
Payment to refunded bond escrow agent
Total Expenditures 15,594,951 10,959,133 19,923,860. 22,791,849
Excess (Deficiency) of Revenues
Over Expenditures 163,160 (1,151312) (6,960,974) (13,348,472)
Other Financing Sources (Uses):
Proceeds from refunding bonds
Proceeds from long-term debt 1,199,293 2,253,588
Payment to refunded bond escrow agent
Operating transfers in 268,055 2,796,877 5,424,546 321,475
Operating transfers (out) (436,752) (4,588,382) (3,146,057) (379,706)
Total Other Financing Sources (Uses) (168,697) (1,791,505) 3,477,782 2,195,357
Excess (Deficiency) of Revenues
and Other Sources Over
Expenditures and Other Uses (5,537) (2,942,817) (3,483,192) (11,153,115)
Fund Balances, Beginning, Restated (Note 16) 26,238,894 29,018,758 24,283,089 54,548,221
Residual Equity Transfer (Note 18) (1,405,000)
Fund Balances, Ending $ 26,233,357 $ 26,075,941 $ 20,799,897 $ 41,990,106
See Accompanying Notes to Financial Statements.
-- Fiduciary
Fund Type Totals
Expendable (Memorandum Only)
_ Trust 1994 1993
$ 19,995,042 $ 18,952,451
335,037 340,884
10,374,690 3,643,717
7,061,989 6,532,158
91,593 71,747
-- $ 2,500 8,995,116 8,226,841
265,576 728,502
855,652 1,232,831
2,500 47,974,695 39,729,131
6,018,367 6,954,504
8,371,953 8,322,611
3,001,012 2,605,336
120,316 4,216,928 4,289,493
18,312,184 18,690,422
545,597 1,524,740
-- 9,500,000
7,033,457 5,093,109
-- 12,390,611 7,912,776
3,331,707
3,899,214
-- 120,316 69,390,109 62,623,912
_ (117,816) (21,415,414) (22,894,781)
102,238,484
_ 3,452,881 5,761,687
(47,271,404)
8,810,953 11,044,424
_ (8,550,897) (10,609,813)
3,712,937 61,163,378
(117,816) (17,702,477) 38,268,597
123,366 134,212,328 95,943,731
(1,4o5,ooo)
$ 5,550 $ 115,104,851 $ 134,212,328
-- 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 June 30. 1994
General Fund
Variance
Favorable
Budget Actual (Unfavorable)
Revenues:
Taxes (Note 3) $ 7,579,630 $ 7,889,870 $ 310,240
Licenses and permits 330,100 335,037 4,937
Intergovernmental 1,588,300 1,566,910 (21,390)
Charges for services 4,218,490 4,453,428 234.938
Fines and forfeitures 64,000 91,593 27,593
Interest and rentals 1,024,880 869,443 (155,437)
Developer fees
Other 905,100 551,830 (353,270)
Total Revenues 15,710,500 15,758,111 47,611
Expenditures:
Current:
General government 2,624,184 2,531,457 92,727
Public safety 8,642,159 8,371,953 270,206
Public works 1,504,596 1,404,125 100,471
Community services 2,676,133 2,496,504 179,629
Capital expenditures 440,913 755,107 (314,194)
Payment to education augmentation fund
Debt service:
Principal 23,736 23,736
Interest and fiscal charges 12,069 12,069
Total Expenditures 15,923,790 15,594,951 328,839
Excess (Deficiency) of
Revenues Over Expenditures (213,290) 163,160 376,450
Other Financing Sources (Uses):
Proceeds from long-term debt
Operating transfers in 128,317 268,055 139,738
Operating transfers (out) (356,039) (436,752) (80,713)
Total Other Financing Sources (Uses) (227,722) (168,697) 59,025
Excess (Deficiency) of Revenues
and Other Sources Over
Expenditures and Other Uses (441,012) (5,537) 435,475
Fund Balances, Beginning, Restated (Note 16) 26.238,894 26,238,894
Fund Balances, Ending $ 25,797,882 $ 26,233.357 $ 435,475
See Accompanying Notes to Financial Statements.
10
Special Revenue Funds Debt Service Funds
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
379,310 $ 377,744 $ (1,566) $ 11,542,800 $ 11,727,428 $ 184,628
3,998,880 3,807,780 (191,100)
1,259,160 1,170,475 (88,685)
3,766,400 4,162,180 395,780 1,024,960 1,235,078 210,118
70.300 248,076 177,776
6,000 41,566 35,566 380 380
9,480,050 9,807,821 327,771 12,567,760 12,962,886 395,126
637,260 610,371 26,889
1,719,926 1,596,887 123,039
1,902,770 1,600,108 302,662
24,473,470 7,151,767 17,321,703
545,597 545,597
7,394,838 6,999,721 395,117
11,486,480 12,378,542 (892,062)
28,733,426 10,959,133 17,774,293 19,426,915 19,923,860 (496,945)
-- (19,253,3%) (1,151,312) 18,102,064 (6,859,155) (6,960,974) (101,819)
· ~ 1,199,293 1,199,293
'2,759,028 2,796,877 37,849 5,536,178 5,424,546 (111,632)
(4,657,707) (4,588,382) 69,325 (4,479,606) (3,146,057) 1,333,549
-- (1,898,679) (1,791,505) 107,174 1.056,572 3.477.782 2.421.210
(21,152,055) (2,942,817) 18,209,238 (5,802,583) (3,483,192) 2,319,391
29,018,758 29,018,758 24,283,089 24,283,089
$ 7,866,703 $ 26,075,941 $ 18,209,238 $ 18,480,506 $ 20,799,897 $ 2,319,391'
11
CITY OF POWAY
Combined Statement of Revenues, Expenses, and Changes in
Retained Earnings - All Proprietary Fund Types and Similar Trust Funds
For the Year Ended June 30, 1994
Proprietary Fund Types
Internal
Enterprise Service
Operating Revenues:
Charges tbr services $ 11,872,008 $ 543,840
Connection tees 292,158
Annexation fees 20,384
Donations
Other 52,401 4,039
Total Operating Revenues 12,236,951 547,879
Operating Expenses:
Personal services 1,575,015 175,865
Maintenance and operations 5,398,984 43,672
Cost of purchased water 4,352,730
Depreciation and amortization 1,156,406
Total Operating Expenses 12,483,135 219,537
Operating Income (Loss) (246,184) 328,342
Nonoperating Revenues (Expenses):
Taxes 1,509,310
Interest revenue 1,683,982 203,061
Interest expense and fiscal agent charges (703,481)
Total Nonoperating Revenues 2,489,811 203,061
Income Before Operating Transfers 2,243,627 531,403
Operating Transfers:
Transfers in 106,230
Transfers (out) (106,230) (260,056)
Total Operating Transfers (260,056)
Net Income 2,243,627 271,347
Depreciation on Contributed Capital 67,491
Increase in Retained Earnings 2,311,118 271,347
Retained Earnings/Fund Balance, Beginning 46,551,114 3,220,558
Retained Earnings/Fund Balance, Ending $ 48,862;232 $ 3,491,905
See Accompanying Notes to Financial Statements.
12
FiduciaryFund
Type Totals
Nonexpendable (Memorandum Only)
Trust Funds 1994 1993
$ 12,415,848 $ 11,476,128
292,158 903,965
20,384 23,289
$ 870 870 401,000
29,429 85,869 509,888
30,299 12,815,129 13,314,270
1,750,880 2,141,798
5,442,656 5,956,912
4,352,730 3,493,486
1,156,406 1,112,726
12,702~72 12,704,922
30,299 112,457 609,348
-- 1,509,310 1,466,940
1,887,043 2,021,858
(703,481) (736,825)
2,692,872 2,751,973
30,299 2,805,329 3,361,321
106,230 635,812
-- (366,286) (1,070,423)
(260,056) (434,611)
30,299 2,545,273 2,926,710
67,491 67,491
30,299 2,612,764 2,994,201
-- 469,585 50,241,257 47,247,056
$ 499,884 $ 52,854,021 $ 50,241,257
-- 13
CITY OF POWAY
Combined Statement of Cash Flows
All Proprietary Fund Types and Similar Trust Funds
For the Year Ended June 30, 1994
Proprietary Fund Types
Internal
Enterprise Service
Cash Flows From Operating Activities:
Operating income (loss) $ (246,184) $ 328,342
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation and amortization 1,156,406
Interest income
Changes in operating assets and liabilities:
(Increase) in accounts receivable (232,606)
(Increase) Decrease in inventories (29,819)
Increase (decrease) in accounts payable (266,274) (42,608)
(Decrease) in accrued liabilities (84,360) (3,084)
Net Cash Provided by Operating Activities 297,163 282,650
Cash Flows from Non-Capital Financing Activities:
Taxes 1,494,548
Transfers in 106,230
Transfers out (106,230) (260,056)
Payments - due fi.om other funds (2,788,262)
Net Cash Provided by (Used for)
Non-Capital Financing Activities (1,293,714) (260,056)
Cash Flows fi.om Capital and Related Financing Activities:
Interest expense and fiscal agent charges (665,482)
Principal payments on long-term borrowing (450,000)
Acquisition of property, plant, and equipment (36,363)
Net Cash Used for Capital and
Related Financing Activities (1,151,845)
Cash Flows fi.om Investing Activities:
Interest received 1,566,091 203,061
Net Increase (Decrease) in Cash and Cash Equivalents (582,305) 225,655
Cash and Cash Equivalents, Beginning 26,753,877 3,290,590
Cash and Cash Equivalents, Ending (Note 20) $ 26,171.572 $ 3,516,245
See Accompanying Notes to Financial Statements.
14
Fiduciary Fund
- Type Totals
Nonexpendable (Memorandum Only)
Trust 1994 1993
$ 30,299 $ 112,457 $ 609,348
1,156,406 1,112,726
(29,429) (29,429)
(232,6~6) (279,871)
(29,819) 24,657
__ (308,882) 214,626
(87,444) (106,371)
870 580,683 1,575,115
1,494,548 1,468,664
-- 106,230 635,812
(366,286) (1,070,423)
(2,788,262) (362,000)
(1,553,770) 672,053
(665,482) (647,280)
(450,000) (415,000)
(36,363)' (277,925)
(1,151,845) (1,340205)
29,429 1,798,581 2,021,858
30,299 (326,351) 2,928,821
469,585 30,514D52 27,585,231
$ 499,884 $ 30,187,701 $ 30,514D52
CITY OF POWAY
Notes to Financial Statements
June 30, 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of the Reporting Enti _ty:
The financial statements of the City of Poway include financial activities of the City
and the Poway Redevelopment Agency. Their financial operations are closely
related and the City Council has a continuing oversight responsibility over the
entities. Since the Poway City Council acts as the Board of Directors and is able
to impose its will on the Redevelopment Agency, the City is considered to be the
primary government and the Redevelopment Agency is a component unit.
Additionally, since the governing boards of the City and the Redevelopment
Agency are the same, the financial statements are blended. The financial
statements of the Redevelopment Agency can be obtained from the Poway
Finance Department located at Poway City Hall.
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--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 accounting policies of the City of Poway and the Poway Redevelopment
Agency conform to generally accepted accounting principles as applicable to
governments. The following is a summary of the more significant policies.
Fund Accounting:
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 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:
16
CITY OF POWAY
-- Notes to Financial Statements (Continued)
June 30, 1994
-- 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.
Capital 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
business 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 is used to account for
activities and services performed for other organizational units within the
City. Charges to other city departments are made to support these activities.
Fiduciary_ Funds:
Nonexpendable Trust Fund - The Nonexpendable Trust Fund is 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 intact and
invested. Investment earnings are used for park-related projects. This fund
is accounted for in essentially the same manner as proprietary funds, since
- capital maintenance is critical.
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 as
Governmental Funds.
- 17
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
Agency Funds The Agency Funds are used to account for deferred
compensation, developer deposits, and bond deposits. These funds are
custodial in nature (assets equal liabilities) and do not involve measurement
of results of operations.
Fixed Assets and Long-Term Liabilities:
The accounting and reporting treatment 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 fund 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
governmental funds, Pt~blic domain ("infrastructure") general fixed 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 fixed 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 concerned 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 current assets, 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.
18
CITY OF POWAY
- Notes to Financial Statements (Continued)
June 30, 1994
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 exhaustible fixed 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
other than buildings 25-100 Years
Buildings 25 Years
-- Machinery and equipment 5-10 Years
Basis of Accountine:
Basis of accounting refers to when revenues and expenditures or expenses 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 fund and the agency fund 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, sales and cigarette
-- taxes, investment income, federal entitlements, motor vehicle fees and gas tax
subventions. Sources not susceptible to accrual are uniform transient occupancy
taxes, franchise fees, and charges for services.
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 accounted 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.
-- 19
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
Budgets and Budgetary Accounting:
The City prepares its budgets 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 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 1993-1994, supplemental budgetary
appropriations were minor.
The City holds a mid-year budget review meeting. During the meeting, all the
budget expenditures are reviewed and projects 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 reappropriated the following
year.
20
CITY OF POWAY
_ Notes to Financial Statements (Continued)
June 30, 1994
Investments:
- Investments are stated at cost except for investments of the deferred compensation
plan which are stated at market value (see Notes 2 and 9). When market values
decline below cost, no loss is recorded if such declines are considered temporary.
C4ash and Cash Equivalents:
-- For purposes of the Statement of Cash Flows, the City considered 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 City's
-- cash management pool is considered to be cash equivalents.
Inventories:
Inventories are stated at cost, computed on a first-in, first-out basis.
-- 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 tioae) in accordance with GASB Cod. See. C60. Compensated
absences are accrued as incurred in both governmental 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-term.
Comparative total data for the prior year have been presented in the
-- accompanying financial statements in order to provide an understanding of
changes in the City's financial position and operations. However, comparative
(i.e., presentation of prior year totals by fund type) data have not been presented
-- 21
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
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 Combined 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.
2. CASH AND INVESTMENTS
Cash and investments at June 30, 1994 consisted of the following:
Pooled deposits:
Demand accounts (bank balances) $4,043,999
Add deposit in transit 48,405
Less outstanding warrants (.1.842.852)
Book Balance $ 2,249,552
Certificates of deposit 2,073,000
Total Pooled Deposits 4,322,552
Pooled investments 101,462,563
Deposits and investments with fiscal agents 21,741,590
Cash and investments - deferred compensation plan 3,939,611
Total Cash and Investments ~131~466~316
The City follows the practice of pooling cash and investments of aH funds except
for funds required to be held by outside fiscal agents under the provisions of bond
indentures and funds in its deferred compensation plan (see Note 9).
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 and the deferred compensation plan
is credited directly to the related fund.
22
CITY OF POWAY
_ Notes to Financial.Statements (Continued)
June 30, 1994
Authorized Deposits/Investments:
Under provision of the City's investment policy, and in accordance with Section
53601 of the California Government Code, the City may invest in the following
types of investments:
Securities of the U.S. Government or its agencies.
CeCdfieates 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.
-- Passbook Savings Account demand deposits.
Mutual Funds.
Medium-Term Corporate Notes.
- Mortgage-backed Securities.
Deposits/Credit Risk:
The California Government Code requires California banks and savings and loan
associations to secure a City's deposits by pledging government securities as
collateral. The market value of pledged securities must equal at least 110% of a
City's deposits. California law also allows financial institutions to secure City
deposits by pledging first trust deed mortgage notes having a value of 150% of 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:
-- Category 1: Insured or collateralized with securities held by the City or by its
agent in the City's name.
-- Category 2: Collateralized with securities held by the pledging financial
institution's trust department or agent in the City's name.
Category 3: Uncollateralized.
-- 23
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
Credit Risk. Carpi_ 'ng Amount, and Market 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's name.
Category 2: Uninsured and unregistered with securities 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 held by the
counterparty, or by its trust department or agent, but not in the City's name.
The table below summarizes the credit risks, bank balance/carrying amounts and
market values of deposits and investments at June 30, 1994.
1 2 3 Amount Value
Pooled Detx~its:
(Bank Balance) $ 107,021 $3,936,978 $ 4,043,999 $ 4,043,999
Add deposit in transit 48,405 48,405
1 ~ outstanding warrants (1.842.852) (1.842.852)
(Book Balance) 2249552 2249552
Total Pooled Deposits 2.180.021 3,936,978 4322,552 __4322552
Depots with F~al Agents:
Deposits (Cash) $ 232.742 232.742 232,742
u2.q. Government Securities 4,155351 4,155,851 4,161276
Medium-Term Corporate
Notes 4,159,933 4,159,933 4,187,796
County Treasmy Pool 81,843377' 81¢143377
Fund (State Pool) 4,103,618' 4,103,618
Mutual Funds 7,199284* 6,728517
Total Pooled Investments 8,315,784 101.,162563 101,025,084
24
CITY OF POWAY
Notes to Financial Statements (Continued)
- June 30, 1994
Balan~
Category Can~ Marloet
-- 1 2 3 Amount Value
Inv~tmenm ~ith Fr~al Agent~
U~ Tmasmy Notes 11,559,206 11,559,206 11,183,209
Contram 3,968,193' 3,968,193
~ Mutual Funds 2,159,705' 2,159,705
County Treasmy Pool 821,744' 821,744
_ Total Investments
with Fr, cal Agents 14,791,948 21,741.590 21~65.593
_ Deferred Compensat~n:
Mutual Funds 3.939.611 * 3,939,611
Tot~ Cash and h,~stments $10,495,805 $3,93~978 $~4,791,94~ ~ $~30.65~8a0
'Not subject to categorization
Cash and Investments with Fiscal Agents:
_ The City has monies held by trustees or fiscal agents pledged to the payment or
security of certain bonds. 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 agents may make. These
ordinances, resolutions, and indentures are generally more restrictive than the
- City's general investment policy. In no instance have additional types'of
investments, not permitted bY the City's general investment policy, been
authorized.
Cash and Investments - Deferred Compensation Plan:
- The City offers its employees a deferred compensation plan created in accordance
with Internal Revenue Code Section 457. See Note 9 for additional information
about this plan. The City invests deferred compensation assets with two entities--
- the International City Management Association (ICMA) and the Public Employees
Benefit Services Corporation (PEBSCO). Authorized investments for the plan
include stock mutual funds, bond mutual funds, and guaranteed investment
-- contracts purchased from insurance companies. These types of investments are
not subject to categorization. The plan assets totaling $3,939,611 are recorded at
market value at June 30, 1994.
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
3. PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of March 1. Taxes are
levied on July 1 and are payable in two installments on December 10 and April
10. 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.
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 receives a share of this basic levy.
4. CHANGES IN GENERAL FIXED ASSETS
Changes in general fixed assets during the year ended June 30, 1994, were as
follows:
Balance Balance
July 1, 1993 Additions Deletions June 30, 1994
Land $36,518,112 $5,873,229 $42,391,341
Buildings 25,299,630 749,609 $42,340 26,006,899
Improvements other
than buildings 854,149 1,235,530 2,089,679
Machinery and equipment 4.827.179 766.818 5.593.997
~67~499~070 $8~625~186 :~42~340 $76~081~916
5. ENTERPRISE FIXED ASSETS
A summary of proprietary fund type property, plant and equipment at June 30,
1994 follows:
Land $ 76,797
Buildings 9,463,064
Improvements other than buildings 33,498,428
Machinery and equipment 1,067,877
Construction in progress 1.973.031
Total 46,079,197
Less accumulated depreciation (19.406,919)
Net $26.672.278
· 26
CITY OF POWAY
-- Notes to Financial Statements (Continued)
June 30, 1994
6. CItANGES IN LONG-TERM DEBT
- General Lon?Term Debt Account Group:
The following is a summary of the changes in the General Long-Term Debt
-- Account Group for the year ended June 30, 1994:
Balance New Debt Debt Balance
-- July 1. 1993 Incurred Retirement June 30. 1994
General Obligation
Bonds $ 618,006 $ 141,463 $ 476,543
-- Tax Allocation Bonds 124,955,000 3,785,000 121,170,000
Certificates of
Participation 49,830,000 385,000 49,445,000
Advances from
Other Funds 28,565,512 $2,253,588 2,644,588 28,174,512
Contracts Payable 5,301,323 460 5~300,863
-- Notes Payable 12,950,363 1,199,293 54,673 14,094,983
Obliga~on Under
_ Capital Lease 140.838 23.736 117.102
Total ~ $3.45Z881 $7.034.920 $218.779.003
General long-term debt consisted of the following at June 30, 1994:
- 1978 general obligation bonds issued in 1979 in the amount of
$1,900,000 maturing from 1979 to 1996 in annual installments of
$55,000 to $170,000, including premium of $1,543. Interest is
-- payable semi-annually on February I and August I at rates
ranging from 6.00% to 8.00%. Bonds matur/ng on or after
August 1, 1989 are subject to redemption in whole on any date
-- or in part on any interest payment date in inverse order of
maturity by lot beginning August 1, 1988. $ 476,543
-- 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 $4,840,000 and $9,280,000 maturing
in 2004 and 2011 respectively. Interest is payable semi-annually
on June 15 and December 15 at rates ranging from 5.75% to
-- 7.25%. 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 eac. h interest payment date
- 27
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
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. 19,595,000
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
2.70% 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 June 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. 101,575,000
1986 Certificates of Participation issued in 1986 in the amount of
$10,000,000 consisting of $3,060,000 serial certificates maturing
from 1990 to 2000 in annual installments of $195,000 to $390,000
and $6,940,000 term certificates maturing in 2011. Interest is
payable semi-annually on February 1 and August 1 at rates
ranging from 6.25% to 7.875%. Certificates maturing on or after
August 1, 1997 are subject to optional redemption in whole or in
part on any interest payment date beginning August 1, 1996.
Certificates maturing on August 1, 2011 are subject to mandatory
redemptions in whole or in part on August 1 of each year
beginning August 1, 2001. %145,000
1991 Certificates of Participation issued in 1991 in the amount of
$28,300,000 consisting of $2,660,000 serial certificates maturing
from 1995 to 2001 in semi-annual installments of $155,000 to
$230,000 and term certificates of $6,800,000, $11,835,000 and
$7,005,000 maturing in 2011, 2020 and 2024, respectively.
Interest is payable semi-annually on June 15 and December 15
28
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
at rates ranging from 6.00% to 7.20%. Certificates maturing on
or after January 1, 2002 are subject to optional prepayment in
- whole on any interest payment date. Certificates maturing on
July 1, 2011, July 1, 2020 and January 1, 2024 are subject to
mandatory prepayment by lot on any interest payment date
-- beginning January 1, 2002, January 1, 2012 and January 1, 2021
respectively. 28,300,000
-- 1992 Certificates of Participation, issued in 1992 in the amount
of $12,640,000 consisting of serial certificates of $3,265,000
maturing from 1992 to 2003 in semi-annual installments of
-- $70,000 to $350,000 and term certificates of $2,880,000 and
$6,495,000 maturing in 2009 and 2018, respectively. Interest is
payable semi-annually on June I and December 1 at rates
-- ranging from 3.5% to 6.375%. 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 subject to mandatory prepayment on each interest
payment date from June 1, 2010 to June 1, 2018. 12,000,000
The City Council authorized a loan to the Redevelopment
Agency in the amount of $6,014,159 at an interest rate ranging
from 6.25% to 7.875%. The loan is repayable as tax increment
- funds become available to the Agency. 6,014,159
_ The City Council authorized a number of loans to the
Redevelopment Agency in the amount of $13,497,865 at interest
rates ranging from 7.4% to 8.70%. The terms of the loans are
-- indefinite. Accrued interest on the loans of $3,986,509 is not
reflected in the accompanying financial statements. Interest is
recorded when it becomes payable from available spendable
-- resources. 13,497,865
The City Council authorized a loan to the Redevelopment
-- Agency in the amount of $8,662,488 at interest rates ranging from
6.5% to 8.375%. The loan is repayable as tax increment funds
become available to the Agency. 8,662,488
- 29
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
Payable to County of San Diego from future tax revenues per
agreement between the County of San Diego and the
Redevelopment Agency dated March 7, 1984. The purpose of
the agreement is to alleviate any financial burden or detriment
caused to the County by the Redevelopment Plan. The Agency
is to make payments to the County as follows:
A. For the first fiscal year in which the Agency receives tax
revenues at least equal to twenty-eight thousand dollars
($28,000) plus an additional twenty percent (20%) pursuant
to Section 33334.2 of the Health and Safety Code, the
Agency shall pay to the County the sum of twenty-eight
thousand dollars ($28,000);
B. For each fiscal year during which the Redevelopment Plan
remains in effect after the fiscal year referred to in the
preceding paragraph A, the Agency shall pay to the County
from tax revenues an amount equal to (i) the amount of tax
revenues paid by the Agency to the County 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).
In May 1993, the Agency entered into a tax sharing agreement
with the County as a result of amending the Redevelopment
Plan. Under the agreement, the Agency is to allocate $5,000,000
of new tax allocation bonds to the County in settlement of any
claimed amounts owed by the Agency for the tax years prior to
the date of the agreement. As of June 30, 1994 the Agency had
not issued new tax allocation bonds nor paid the County pending
the results of the litigation described in footnote 19. Therefore,
no payments were made in fiscal year ended June 30, 1994 under
the agreement dated March 7, 1984. 5,254,401
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:
Pu 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 Section
30
CITY OF POWAY
_ Notes to Financial Statements (Continued)
June 30, 1994
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
remains 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). 46,462
In December 1985, the 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. 11,352,967
-- In November 1990 the Poway Redevelopment Agency entered
into an acquisition agreement with Tech Business Center to
provide for 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 April 1993, the
Agency accepted $2,500,000 of improvements and executed a
_ promissory note at 8.0%. The note plus accrued interest is
payable from ex.cess tax increment generated by the project as
the funds become available. 2,742,016
The City entered into a lease payable agreement for mobile
radios having a value of $140,838. The lease qualifies as a capital
-- lease and has been reflected in general government expenditures
and in other financing sources. The terms of the lease call for
five annual payments of $35,805 including interest at 8.57%. 117.102
Total General Long-Term Debt $218.779.003
- 31
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
There are a number of limitations and restrictions contained in the bond
indentures. The City is in compliance with all significant limitations and
restrictions.
In addition, the City is contingently liable for the long-term debt of the water and
sewer funds, which is being paid from revenues of those funds.
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 payable, as of June 30, 1994, including interest payments of $232,648,024 are
as follows:
Obligation
Year General Tax Certificates Under
Ending Obligation Allocation of Contracts Capital
June 3Q Bonds Bonds Participation payabk~ I~as~ Total
1995 $169,150$ 8,294,063 $ 4,155,997 $ 107,041 $ 35,805 $12,762,046
1996 175,000 8,293,448 4,155,007 59,462 35,805 12,718,722
1997 175,100 8,300501 4,155,268 63,625 35,805 12,730,299
1998 7,930,801 4,249,993 68,078 35,805 12,284,677
Thereafter 224,862.525 115.889397 4.929.814 345.681.736
$519.250$Tfo6t337~714 $136.856.485$5.300.863~;~43r220~9.157532
$177,628 is available in the Debt Service Fund to service the general obligation
bonds. The contracts payable, advances from other funds, Tax Allocation Bonds
and notes payable are serviced by tax increment revenues of the City of Poway
Redevelopment Agency.
Enterprise Funds:
The following is a summary of bonded debt of the Enterprise Funds for the year
ended June 30, 1994:
General Special
Obligation Assessment
Bonds Bonds Total
Balance, July 1, 1993 $8,685,000 $654,452 $9,339,452
Debt retirement (285,000) (141.113) (426.113)
Balance, June 30, 1994 $8.400.000 $513~339 $8.913.339
32
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
Bonds payable in the Water Fund at June 30, 1994, were as follows:
_ 1970 general obligation bonds issued in 1971 in the amount of
$3,200,000. The balance of $1,910,000 is due in the year 2000.
Interest is payable semi-annually on May 1 and November 1 at
-- rates ranging from 6.60% to 7.00%. Bonds maturing on or after
November 1, 1981 are callable in whole on any date or in part on
any interest payment date in inverse order of maturity by lot
-- beginning November 1, 1980. $1,910,000
1972 general obligation bonds issued in 1972 in the amount of
-- $1,400,000. The balance of $895,000 is due in the year 2002.
Interest is payable semi-annually on June 1 and December 1 at
rates ranging from 5.50% to 7.00%. 895,000
1975 general obligation bonds issued in 1976 in the amount of
$6,300,000 maturing from 1980 to 2005 in annual installments of
-- $5,000 to $930,000. Interest is payable semi-annually on April 1
and October 1 at rates ranging from 7.25% to 8.00%. Bonds
maturing on or after October 1, 1986 are subject to redemption
-- in whole or in part on any interest payment date in inverse order
of maturity beginning October 1, 1985. 5,295,000
-- 1981 special assessment bonds issued in the amount of $1,814,210
maturing from 1983 to 1997 in annual installments of $59,210 to
$215,000 beginning in July, 1983, less discount of $71,661.
-- Interest on the bonds is payable semi-annually on January 2 and
July 2 at a rate of 10.00%. Bonds are subject to redemption in
whole or in part on any interest payment date. The bonds are
secured by unpaid assessments levied upon property within the
assessment district. However, in the event of a delinquency, the
_ City has a special obligation to advance the funds. Therefore, in
accordance with GASB Cod. Sec. S40, the City has included the
liability on its financial statements. 513,339
Bonds payable in the Sewer Fund at June 30, 1994, were as follows:
- 1957 general obligation bonds, Series B issued in 1971 in the
amount of $1,520,000 maturing from 1988 to 1996 in annual
installments of $50,000 to $150,000. Interest is payable semi-
-- annually on June 1 and December 1 at rates ranging from 6.00%
to 6.50%. 300,000
-- 33
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
8,913,339
Less current portion 500.000
Bonds Payable in Enterprise Funds [8~413~339
The annual requirements to amortize bonded debt outstanding included in the
Enterprise Funds as of June 30, 1994, including interest payments of $4,557,299
are as follows:
General Special
Year Ending Obligation Assessment
June 30 Bonds Bonds Total
1995 $ 908,453 $233,500 $ 1,141,953
1996 910,478 236,000 1,146,478
1997 755,727 236,500 992,227
1998 763,290 763,290
1999 855,277 855,277
Thereafter 8,571,413 8,571,413
~;12.764.638 ~706,000 ~13.470.638
Contracts payable in the Water Fund at June 30, 1994, were as follows:
Contracts payable consist of reimbursement agreements with developers. The
outstanding balance of these agreements at June 30, 1994, was $5,407.
7. RESTRICTED ASSETS
Restricted assets at June 30, 1994, consisted of the following:
Cash and Cash ami LwesUnen~s
Imesm~en~ Receivables With F'r, cal A_oents
Special Debt Capitol
Funds Funds Fund Funds Funds Funds Funds
Tax revenues
received for
payment of
Tax IWv~nt{e
for payment
of general
34
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
Cash and Cash and Inv~Unents
lnv~m~en~ Receivables Whh ~ ~n~
S~ ~bt ~pi~
~ F~ F~ F~ F~ F~ F~
~ ~ ~,~71
1~ ~ ~n
~ 4~,~
-- 1~1
of ~n ~ 5~,016
-- of ~ 1,~
1~ m ~n
~.101~ ~ ~15 ~14¢17~110
8. SEGME~ INFOR~ON FOR E~RPRISE
~e Ci~ maintains ~o enterphse funds which pro.de water and sewer se~s.
Segment infomation for the year ended June 30, 1994, was as fo~ows:
Total'
Ente~hse
Water Fund Sewer Fund Funds
Operat~g Revenues $ 7,~1,818 $ 4,355,133 $12,236,951
Depreciation and
-- ~o~tion ~ense 779,978 376,428 1,156,4~
Operating Income (~ss) (453,512) 207,328 (2~,1~)
O~rafing Transfer In 1~,230 1~,230
-- Operating Transfer Out (106,230) (1~,230)
T~ Revenues 1,455,776 53,534 1,509,310
Net Income 1,072,391 1,171,236 2,243,627
-- Total ~sets 31,467,715 32,386,783 63,~4,498
Plant, Prope~ and
Equipment:
-- Additions 14,834 21,529 36,363
-- 35
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
Total
Enterprise
Water Fund Sewel' Fund Funds
Net Working Capital 7,166,524 18,282,685 25,449,209
Bonds and Other Long-
Term Liabilities:
Payable from Operating
Revenues 8,268,746 150,000 8,418,746
Total Equity 21,702,048 31,872,614 53,574,662
9. 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 salary to
be deposited 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.
All amounts of compensation deferred under the plan, all property and rights
purchased with those amounts, and all income attributable to those amounts,
property, or rights are (until paid or made available to the employee or other
beneficiary) solely the property and rights of the City (without being restricted to
the provisions of benefits under the plan), subject only to the claims of the City's
general creditors. Participants' rights under the plan are equal to those of general
creditors of the City in an amount equal to the fair market value of the deferred
account for each participant.
The City has no liability for losses under the plan but does have the duty of due
care that would be required of an ordinary prudent investor. The City believes
that it is unlikely that it will use the assets to satisfy the claims of general creditors
in the future. Assets of the fund totaled $3,939,611 at June 30, 1994. The assets
are stated at market value.
10. PUBLIC EMPLOYEES RETIREMENT SYSTEM
Plan Description: PERS Defined Benefit Pension Plan:
The City contributes to the State of California Public Employees' Retirement
System (PERS), an agent multiple-employer public employee retirement system
that acts as a common investment and administrative agent for cities and school
districts in California. The City's payroll for employees covered by PERS for the
year ended June 30, 1994 was $8,578,781; the City's total payroll was $9,330,029.
36
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
-- Substantially, all full-time City employees are eligible to participate in PERS.
Employees who retire with five years of credited service are entitled to a
retirement benefit, payable monthly for life, equal to 2 percent of their highest last
-- three years average annual salary for each year of credited service at or after age
55 for miscellaneous employees and for public safety employees. Benefits fully
vest on reaching five years of service. Vested employees may retire at or after age
-- 50 and receive reduced retirement benefits.
PERS also provides death and disability benefits. These benefit provisions and all
-- other requirements are established by State statute and City ordinance.
Employee and Employer Contribution Obligations:
The City makes the contributions required of City employees on their behalf and
for their account. The rates are set by statute and therefore remain unchanged
from year to year.
Member Rates as a
Percenta~,e of Wages
Local miscellaneous members 7%
_ Local safety members 9%
The City is required to contribute the remaining amounts necessary to fund the
benefits for its members, using the actuarial losses recommended by the PERS
actuaries and actuarial consultants and adopted by the Board of Administration.
-- Funding Status and Pro_tress:
The amount shown below as the "pension benefit obligation" is a standardized
-- measure of the present value of pension benefits, adjusted for the effects of step-
rate benefits, estimated to be payable in the futureas a result of employee service
to date. The measure is intended to help assess the funding status of the system
-- on a going-concern basis, assess progress made in accumulating sufficient assets
to pay benefits when due, and make comparisons among employers. The measure
is the actuarial present value of credited projected benefits and is independent of
-- the funding method used to determine contributions to the system.
The pension benefit obligation was computed as part of an actuarial valuation
-- performed as of June 30, 1994. Significant actuarial assumptions used in the
valuation include (a) a rate of return on the investment of present and future
assets of 8.75 percent a year compounded annually; (b) projected salary increases
-- of 4.50 percent a year compounded annually, attributable to inflation; (c)
additional projected salary increased of 2.50 and 2.75 percent a year, attributable
to seniority/merit for miscellaneous and safety employees, respectively; and (d)
no post-retirement benefit increases.
-- 37
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
The unfunded pension benefit obligation applicable to the City employees was
$166,187 at June 30, 1994 (based upon June 30, 1993 data), as follows:
Pension Benefit Obligation:
Retirees and beneficiaries currently receiving benefits
and terminated employees not yet receiving benefits $ 3,414,386
Current Employees:
Accumulated employee contributions including
allocated investment earnings 6,569,013
Employer-financed vested 5,570,170
Employer-financed nonvestefl 319,411
Total Pension Benefit Obligation 15,872,980
Net Assets Available for Benefits at Cost
(Market Value is $18,675,661) 15.706.793
Unfunded Pension Benefit Obligation $ 166~187
Changes in the pension benefit obligation from last year attributable to changes
in actuarial assumptions wire $(280,723).
Actuarially-Determined Contribution Requirements and Contribution Made:
PERS uses the Entry Age Normal Actuarial Cost Method which is a projected
benefit cost method. That is, it takes into account those benefits that are expected
to be earned in the future as well as those already accrued.
According to this cost method, the normal cost for an employee is the level
amount which would fund the projected benefit if it were paid annually from date
of employment until retirement. PERS uses a modification of the Entry Age Cost
Method in which the employer's total normal cost is expressed as a level percent
of payroll. PERS also uses the level percentage of paYroll method to amortize any
unfunded actuarial liabilities. The amortization period of the unfunded actuarial
liability ends in the year 2000 for prior service benefits and in the year 2011 for
current service benefits.
The significant actuarial assumptions used to compute the actuarially-determined
contribution requirement are the same as those used to compute the pension
benefit obligation, as previously described.
38
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
The contribution to the system for 1994 of $1,316,394 was made in accordance
with actuarially determined requirements computed through an actuarial valuation
-- performed as of June 30, 1992. The contribution consisted of (a) $1,204,648
normal cost (14.0 percent of current covered payroll), and (b) $111,746
amortization of the unfunded actuarial accrued liability (1.3 percent of current
-- covered payroll). The City contributed employer contributions of $677,745 (7.9
percent of current covered payroll) and $638,649 (7.4 percent of current covered
payroll) on behalf of its employees.
Trend Information:
Trend information gives an indication of the progress made in accumulating
sufficient assets to pay benefits when due.
Within the City's financial statement, ten years of historical trend information are
required. 1987-88 is the first year that this actuarial information has been made
available by PERS. Until ten years of data are available, as many years as are
available are presented as follows:
1987-88 19~8-89 19~-90 1990-91 1991-~2 1992-93 1993-94
Net Assets
A~afiab~ for
Benefits $~,118,657 $7~50,874 $8,903,586 $10,631,536 $12,077,095 $13,896,673 $15,706,793
Pension Benefit
Obligation $5,076,061 $5,980,875 $7,489,378 $9,829,646 $10,947,393 $14D29,196 $15¢V/7.,980
Net Assets
Amilable
for Benefits
a Percentage
of the Pension
-- Benefit Obligation120_5% 122.9% 11&9% 1~8.2% 1103% 99.1% 99.0%
(Ur,~aea) A~ets
Pensio~ Benefi~
Obligefio~ $1,042,5% $1,369,999 $1,414,2f~ $~01,890 $1,129,702 $(132,523) $(1(~,187)
Payroll $5,M3,833 $5,80~875 $~631,8~ $7,~6,040 $8,40~,120 $8,920,251 $8,578,781
-- 39
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
a Percentage
of Annual
Covered Payroll 193% 23.6% 21.32% 10.46% 13.43% (1.49%) (1.94%)
Employer
Conm'ou~ns $362,956 $414,637 $462,819 $641,774 $844,128 $748,567 $677,745
Employer
Contnbutions
F_xpressed as a
Percentage of
Payroll These
conua'outions
were made in
accordance with
determined
requirements 6.8% 7.1% 7.0% 8.3% 10.0% 8.4% 7.9%
Plan Description: Defined Contribution Pension Plan
The City provides pension benefits for all of its part-time employees through a
defined contribution plan (Public Agency Retirement Plan). In a defined
contribution plan, benefits depend solely on amounts contributed to the plan plus
investment earnings. The plan is administered as part of the City's 457 plan. All
part-time employees are eligible to participate from the date of employment.
Federal legislation requires contributions of at least 7.5% to a retirement plan, and
City Council resolved to match the employees' contributions of 3.75%. The City's
contributions for each employee (and interest earned by the accounts) are fully
vested immediately.
For the year ended June 30, 1994, the City's .total payroll and covered payroll was
$420,410. The City made employer contributions of $15,765 (3.75 percent of
current covered payroll), and employees contributed $15,765 (3.75 percent of
current covered payroll).
40
CITY OF POWAY
-- Notes to Financial Statements (Continued)
June 30, 1994
11. RETAINED EARNINGS/FUND BALANCE RESERVES AND DESIGNATIONS
Reserves:
The various reserves established as of June 30, 1994, are described below:
Encumbrances $ 160,303
Advances to Other Funds 19,397,213
Inventory 59,585
Temporary Decline in Market Value of Investments 47,999
Total Reserved ~19~665~100
Special Revenue Funds
Encumbrances $ 176,650
Long-term Notes Receivable 7,095
Advances to Other Funds 5,205,100
Low and Moderate Income Housing 15,968,199
Temporary Decline in Market Value of Investments 53.095
Total Reserved ~
Debt Service $20,324,763
Temporary Decline in Market Value of Investments 475.134
Total Reserved ~
Capital pro!ects Funds
Encumbrances $ 1,537,877
Fixed Assets Held for Resale 2,366,651
Advances to Other Funds 125,660
Capital Projects 38,771,452
Temporary Decline in Market Value of Investments 125.656
Total Reserved ~
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
Enter. prise Funds
Debt Service $4,513,305
Temporary Decline in Market Value of Investments 232.640
Total Reserved $4~745~945
Internal Service Fund
Equipment Replacement $3,460,847
Temporary Decline in Market Value of Investments 31.058
Total Reserved $3~491~905
Trust and Agency_ Funds
Capital Projects $509,696
Temporary Decline in Market Value of Investments 4,513
Total Reserved $514.209
Reserve for Encumbrances:
These reserves represent the portion of purchase orders and contracts for goods
and services which had not been received at June 30, 1994.
Reserve for Advances to Other Funds:
This reserve is established for long-term advances to other funds.
Reserve for Inventory:
Reserves have been established for inventory held by the General Fund
(stationery, gasoline, and maintenance supplies).
Reserve for Temporary Decline in Market Value of Investments:
This reserve was established for the temporary difference between cost and market
value of certain investments. The City plans to hold all investments for which
there is a temporary decline to maturity and/or until market value equals or
exceeds cost.
42
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
Reserve for Notes Receivable:
_ This reserve is established for long-term notes receivable.
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 Sen, ice:
-- Funds collected and interest earned on these funds are reserved for future
principal and interest payments of general obligation bonds. In addition, fiscal
agents hold cash for the general obligation bonds restricted solely for paying debt
-- service on the bonds.
Reserve for Fixed Assets Held for Resale:
This reserve is established for fixed 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.
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
Resolution 85-038 passed by the City Council set aside all unreserved funds
-- ($6,568,257) at June 30, 1994, 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.
- 43
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
The Gas Tax, Drainage, Maintenance District, Miscellaneous Grants, and
Proposition A Special Revenue Funds unreserved fund balances are designated for
capital projects.
12. INTERFUND RECEIVABLES/PAYABLES
Fund Receivables Payables
General Fund $20,768,610
Special Revenue Funds:
Gas Tax Fund $ 134,717
Street Improvement Fund 2,466,944 763,071
Drainage Fund 2,527,156
Miscellaneous Grants Fund 11,000
Community Development Block Grant 10,000
Proposition A Fund 200,000
Capital Projects Funds:
Park Improvement Fund 125,660 307,228
Municipal Improvement Fund 673,682
Redevelopment Area Fund 10,000
Water Enterprise Fund 3,862,411
Sewer Enterprise Fund 4,271,089
Agency Funds:
Developer Deposits 20,000
Parkway Business Center CFD #88-1
Bond Deposits 4,159,660
General Long-Term Debt Account Group 28.174.512
~34~242~870 ~34~242~870
13~ INSURANCE JOINT VENTURE (CLAIMS AND JUDGMENTS}
The City of Poway is a member of the Southern California Joint Powers Insurance
Authority, a consortium of approximately 75 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.
CITY OF POWAY
- Notes to Financial Statements (Continued)
June 30, 1994
At June 30, 1994, the City self-insured for each loss to the extent of $20,000.
Between $20,000 and $10,000,000, 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 fund set up 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.
-- The Southern California Joint Powers Insurance Authority's fiscal year ends on
June 30. As of June 30, 1994, the audited balance sheet for the Authority showed
total assets of $85,996,937, liabilities of $63,266,807, and equity of $22,730,130 in
the form of reserves for losses and claims.
The Authority reported revenues of $23,196,940, expenses of $18,242,833,
generating an equity increase of $4,954,107. The City of Poway's precise share of
the Authority's assets, liabilities, equities, and changes therein during the year are
not available.
14. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES
Expenditures of $819,476. of the Gas Tax Special Revenue Fund exceeded the
budget appropriation of $805,100.
Expenditures of $17,879,680 of the City of Poway Redevelopment Agency Debt
Service Fund exceeded the budget appropriation of $17,374,675.
The following funds had deficit fund balances at June 30, 1994, which are expected
to be eliminated through future revenues:
Fund Amount
-- Special Revenue Fund:
Royal Mobile-home Park Administration $ 5,537
-- Capital Projects Funds:
Park Improvement 112,137
Municipal Improvement 673,682
Expendable Trust Fund:
Performing Art Center 8,775
- 45
CITY OF POWAY
Notes to Financial .Statements (Continued)
June 30, 1994
15. MELLO-ROOS COMMUNITY FACILITIES DISTRICTS
In February 1987, the City issued $32,800,000 in Special Tax Refunding Bonds to
refund the outstanding portion of the $30,000,000 South Poway Community
Facilities District No. I Special Tax Bonds Series 1985. The 1985 bonds were
issued to finance the acquisition of certain public improvements within South
Poway Community Facilities District No. 1. In April 1989, the City issued
$30,000,000 Community Facilities District No. 88-1 Special Tax Bonds to finance
the acquisition and construction of certain public improvements within the District.
In January 1991, the City issued $8,000,000 Community Facilities District No. 88-1
Special Tax Bonds, Series 1990 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 Districts. 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 is pledged to the payment of these bonds.
At June 30, 1994, the 1987, 1989, and 1990 bonds outstanding were $30,440,000,
$29,800,000, and $6,585,000, respectively.
16. PRIOR PERIOD ADJUSTMENTS
The Low and Moderate Income Housing Fund Special Revenue Fund was
previously reported within the Redevelopment Area Capital Projects Fund. The
Special Revenue and Capital Projects Funds beginning fund balances have been
restated as follows:
Special Capital
Revenue Projects
Fund Fund
As Previously Reported $ 9,052,341 $74,514,638
Adjustment 19.966.417 (19,966,417)
As Restated ~;29~018~758 $54.548.221
46
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
17. DEFEASEMENT OF LONG-TERM DEBT
-- 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, thc bonds were considered released and the liability
was removed from the General Long-Term debt account group. At June 30, 1994,
$34,635,000 of the Tax Allocation Bonds, Series 1989A and $9,225,000 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. At June 30, 1994, $10,255,000 of the 1988 Certificates
of Participation remained outstanding.
-- In 1990, the Poway Redevelopment Agency advance refunded $4,260,000 Tax
Allocation Bonds, Series 1985 and $17,000,000 Tax Allocation Bonds, Series 1986
by placing in an irrevocable trust amounts sufficient to meet all future debt service
-- payments of the refunded debts. As a result, the refunded bonds were considered
defeased and the liability was removed from the general long-term debt account
group. At June 30, 1994, $3,340,000 of the Tax Allocation Bonds, Series 1985 and
-- $15,285,000 of the Tax Allocation Bonds, Series 1986 remained outstanding.
18. RESIDUAL EQUITY TRANSFER
During the fiscal year ended June 30, 1994, the Parkway Business Center
Community Facilities District #88-1 Capital Projects Fund transferred $1,405,000
to the Parkway Business Center Community Facilities District #88-1 Agency Fund
to call $1,405,000 of the Community Facilities District No. 88-1 Special Tax Bonds.
19. COMMITMENTS AND CONTINGENCIES
-- a. In May 1993, the Redevelopment Agency entered into tax sharing agreements
with various public agencies as a result of amending the Redevelopment Plan.
Under the agreements, if litigation of whatever form is filed challenging the
- Plan then the payment requirements of the Agency are to be tolled and
delayed for the period of such litigation. The amendment to the
Redevelopment Plan has been challenged in a court of law and at June 30,
- 1994 the litigation had not been settled. Therefore, no payments were made
by the Agency during the fiscal year ended June 30, 1994 and no liabilities
recorded except as noted below.
-- 47
CITY OF POWAY
Notes to Financial Statements (Continued)
June 30, 1994
The Agency paid $4,500,000 to one of the public agencies during the fiscal
year end June 30, 1994 under a settlement agreement dated May 17, 1994.
If the amendment to the Redevelopment Plan is set aside by a court of law
pursuant to the litigation, the public agency is to return these funds to the
Agency.
b. Subsequent to year end, a court of law determined that the Redevelopment
Agency has incorrectly deposited tax increment funds into the Low and
Moderate Income Housing Special Revenue Fund. The method of computing
the additional amount that will be required to be set-aside is being determined
through a settlement agreement which should be executed in late 1994.
20. RECONCILIATION OF CASFI AND CASIt EQUIVALENTS
A reconciliation of cash and cash equivalents at June 30, 1994 from the combined
balance sheet to the combined statement of cash flows follows:
Enterprise Internal Fiduciary
Funds Service Fund Funds
Cash and Investments per the
Combined Balance Sheet $20,837,006 $3,516,245 $7,090,779
Restricted:
Cash and Investments 5,101,836
Cash and Investments
with Fiscal Agents 232,730
Cash and Investments
of Expendable Trust
and Agency Funds (6.590.895)
Cash and Cash Equivalents
per the Combined
Statement of Cash Flows $26~171~572 $3.516~245 ~ 499~884
48
SUPPLEMENTARY INFORMATION
-- COMBINING AND INDIVIDUAL FUND
AND ACCOUNT GROUP
FINANCIAL STATEMENTS AND SCHI~DULES
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 se~ices by the City. The
General Fund is used to account for all resources
not required to be accounted for in another fund.
CITY OF POWAY
Comparative Balance Sheet
General Fund
June 30, 1994
1994 1993
Assets
Cash and investments $ 4,846,851 $ 4,641,748
Receivables (Net of allowance
tbr uncollectibles):
Taxes 324,347 283,874
Accounts 134,286 306,946
Interest 853,785 888,043
Due from other funds 1,371,398 1,419,371
Due from other governments 247,359 261,180
Inventory, at cost 59,585 63,113
Advances to other funds 19,397,212 19,920,414
Total Assets $ 27,234,823 $ 27,784,689
Liabilities and Fund Balance
Liabilities:
Accounts payable $ 352,549 $ 644,025
Accrued liabilities 612,816 700,802
Deposits 36,101 32,578
Deferred revenue 168,390
Total Liabilities 1,001,466 1,545,795
Fund Balance:
Reserved:
Encumbrances 160,303 171,804
Inventory 59,585 63,113
Advances to other funds 19,397,213 19,920,414
Temporary decline in market
value of investments 47,999
Unreserved:
Designated for contingencies 6,568,257 6,083,563
Total Fund Balance 26,233,357 26,238,894
Total Liabilities and Fund Balance $ 27,234,823 $ 27~784,689
52
CITY OF ?OWAY
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended Sunc 30, 1994
1994 1993
Variance
-- Favorable
Budget Actual (Unfavorable) Actual
Revenues:
-- Taxes $ 7,579,630 $ 7,889,870 $ 310,240 $ 7,425,204
Licenses and permits 330,100 335,037 4,937 340,884
Intergovernmental 1,588,300 1,566,910 (21,390) 1,636,092
-- Charges for services 4,218,490 4,453,428 234,938 4,098,276
Fines and forfeitures 64,000 91,593 27,593 71,747
Interest and rentals 1,024,880 869,443 (155,437) 1,070,136
-- Other 905,100 551,830 (353,270) 1,102,932
Total Revenues 15,710,500 15,758,111 47,611 15,745,271
-- Expenditures:
Current:
General government 2,624,184 2,531,457 92,727 3,738,172
-- Public safety 8,642,159 8,371,953 270,206 8,322,611
Public works 1,504,596 1,404,125 100,471 1,211,792
Community services 2,676,133 2,496,504 179,629 2,666,515
-- Capital expenditures 440,913 755,107 (314,194) 788,767
Debt service:
Principal 23,736 23,736
-- Interest 12,069 12,069
Total Expenditures 15,923,790 15,594,951 328,839 16,727,857
-- Excess (Deficiency) of
Revenues Over
Expenditures (213,290) 163,160 376,450 (982,586)
Other Financing Sources (Uses):
Proceeds from long-term debt 140,838
_ Operating transfers in 128,317 268,055 139,738 1,208,093
Operating transfers (out) (356,039) (436,752) (80,713) (530,317)
Total Other Financing
-- Sources(Uses) (227,722) · (168,697) 59,025 818,614
Excess (Deficiency) of
_ Revenues and Other
Sources Over
Expenditures and
-- Other Uses (441,012) (5,537) 435,475 (163,972)
Fund Balance, Beginning 26,238,894 26,238,894 26,402,866
~ Fund Balance, Ending $ 25,797,882 $ 26,233,357 $ 435,475 $ 26,238,894
53
SPECIAL REVENUE FUNDS
Gas Tax Fund Used to account for revenues received and
- expenditures made for street maintenance.
Financing is provided by the City's 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
developer's 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 Grants Fund Used to account for grants from various agencies
used for operations and maintenance. Financ'mg 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.
Community Development Used to account for revenues received and
Block Grant Fund expenditures made for community development
-- and housing assistance. Financ'mg 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.
-- 55
SPECIAL REVENUE FUNDS (Continued)
Transportation Development Used to account for revenues received and
- 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 Parl~
Low and Moderate Income Used to account for funds restricted for low and
_ Housing Fund moderate income housing financial activity.
CITY OF POWAY
Combining Balance Sheet - All Special Revenue Funds
June 30, 1994
Miscel -
Street Maintenance laneous
Assets Gas Tax Improvement Drainage District 83-1 Grants
Cash and investments $ 224,350 $1,335,990 $ 389,129 $1,749,002 $ 78,278
Taxes receivable 20,398
Accounts receivable 1,136
Interest receivable
Notes receivable 7,095
Due from other governments
Deposits 4,969
Advances to other ~nds 2,466,944 2,527,156 11,000
Cash and investments with
fiscal agents
Total Assets $ 22~5,486 $ 3,814,998 $ 2,916,285 $1,769,400 $ 89,278
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 51,335 $ 45,511 $ 14 $ 43,421
Accrued liabilities 21,551 8,971 1,733
Due to other funds
Advances from other funds 134,717 763,071
Total Liabilities 207,603 808,582 8,985 45,154
Fund Balances:
Reserved:
Encumbrances 133,625 15,930 4,298 $19,407
Notes receivable 7,095
Advances to other funds 2,466,944 2,527,156 11,000
Low and moderate
income housing
Temporary decline in market
value of investments 11,801 3,528 17,643
Unreserved:
Designated for capital projects 17,883 360,686 1,702,305 58,871
Undesignated (deficit) 386,951
Total Fund Balances 17,883 3,006,416 2,907,300 1,724,246 89,278
Total Liabilities and
Fund Balances $ 225,486 $ 3,814,998 $ 2,916,285 $1,769,400 $ 89,278
58
Transpor -
tation Low and
Community Develop- Royal Mobile- Moderate
- Development ment Proposition home Park Income Totals
Block Grant Act A Administxation Housing 1994 1993
-- $ 1,507 $ 126,455 $ 2,034,641 $ 1,535 $ 15,730,068 $ 21,670,955 $ 24,760,161
20,398 15,877
1,136 1,136
-- 249,446 249,446 142,981
7,095 7,095
10,381 3,225 13,606 77,162
-- 4,969 4,969
200,000 5,205,100 5,201,100
-- 6,315 6,315 15,560
$11,888 $ 126,455 $ 2,234,641 $ 4,760 $ 15,985,829 $ 27~179,020 $ 30~226~041
$ 7,361 $ 12,458 $ 160,100$ 248,748
2,936 35,191 57,643
$ 10,000 I0,000 3,104
897,788 897,788
-- 10,000 10,297 12,458 1,103,079 1,207,283
199 $ 2,000 1,191 176,650 135,734
7,095
-- $ 200,000 5,205,100 5,201,100
15,968,199 15,968,199 19,966,417
1,511 13,440 5,172 53,095
-- 2,021,201 4,160,946 3,454,112
1,689 122,944 (6,728) 504,856 261,395
-- 1,888 126,455 2,234,641 (5,537) 15,973,371 26,075,941 29,018,758
-- $ 11,888 $ 126,455 $ 2,234,641 $ 4,760 $ 15,985,829. $ 27,179,020 $ 30,226,041
CITY OF POWAY
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
All Special Revenue Funds
For the Year Ended June 30, 1994
Miscel -
Street Maintenance laneous
GasTax Improvement Drainage District 83-1 Grants
Revenues:
Taxes $ 237,050 $ 140,694
Intergovernmental $ 819,841 $ 13,077
Charges for services 996,225
Interest and rentals $ 78,682 23,572 96,016
Developer fees 237,866 10,210
Other 5,073 6,268
Total Revenues 824,914 316,548 277,100 1,232,935 13,077
Expenditures:
Current:
General government
Public works 767,984 351,865 477,038
Community services 664,265
Capital expenditures 51,492 109,553 10,513 107,712
Bond issuance costs
Total Expenditures 819,476 109,553 362,378 1,141,303 107,712
Excess (Deficiency) of
Revenues over
Expenditures 5,438 206,995 (85,278) 91,632 (94,635)
Other Financing Sources (Uses):
Proceeds of reflanding bonds
Proceeds of long-term debt
Operating transfers in 26,539
Operating transfers (out)
Total Other Financing
Sources (Uses) 26,539
Excess (Deficiency) of
Revenues and Other
Sources Over
Expenditures and
Other Uses 5,438 206,995 (85,278) 91,632 (68,096)
Fund Balances, Beginning, Restated 12,445 2,799,421 2,992,578 1,632,614 157,374
Fund Balances, Ending $ 17,883 $ 3,006,416 $ 2,907,300 $1,724,246 $ 89,278
60
Transpor-
tation Low and
Community Develop- Royal Mobile- Moderate
Development merit Proposition home Park Income Totals
Block Grant Act A Administration Housing 1994 1993
$ 377,744 $ 489,950
$ 112,476 $ 70,003 $ 2,792,383 3,807,780 1,197,875
-- $ 174,250 1,170,475 1,072,841
3,077 82,379 $ 2,785,134 1,093,320 4,162,180 3,437,665
248,076 363,052
-- 3,225 27,000 41,566 32,948
112,476 73,080 2,874,762 2,788,359 1,294,570 9,807,821 6,594,331
-- 610,371 610,371 479,615
1,596,887 1,393,544
935,843 1,600,108 1,622,978
-- 92,255 21,678 2,072,264 4,686,300 7,151,767 1,921,188
507,792
__ 92,255 21,678 2,072,264 935,843 5,296,671 10,959,133 5,925,117
20,221 51,402 802,498 1,852,516 (4,002,101) (1,151,312) 669,214
- 12,951,911
17,993
2,770,338 2,796,877 . 2,624,659
-- (10,000) (1,817,099) (2,761,283) (4,588,382) (3,185,339)
-- (10,000) (1,817,099) 9,055 (1,791,505) 12,409,224
-- 10,221 51,402 802,498 35,417 (3,993,046) (2,942,817) 13,078,438
(8,333) 75,053 1,432,143 (40,954) 19,966,417 29,018,758 15,940,320
$ 1,888 $ 126,455 $ 2,234,641 $ (5,537) $ 15,973,371 $ 26,075,941 $ 29,018,758
61
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, 1994
1994 1993
Variance
Favorable
Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental $ 805,100 $ 819,841 $ 14,741 $ 760,386
Other 6000 5,073 (927) 9,070
Total Revenues 811,100 824,914 13,814 769,456
Expenditures:
Current:
Public works 747,900 767,984 (20,084) 749,673
Capital expenditures 57,200 51,492 5,708. 9,936
Total Expenditures 805,100 819,476 (14,376) 759,609
Excess of Revenues
Over Expenditures 6,000 5,438 (562) 9,847
Fund Balance, Beginning 12,445 12,445 2,598
Fund Balance, Ending $ 18,445 $ 17,883 $~(562) $ 12,445
62
CITY OF POWAY
-- Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Street Improvement Special Revenue Fund
-- For the Year Ended June 30, 1994
_ 1994 1993
Variance
Favorable
_ Budget Actual (Unfavorable) Actual
Revenues:
Taxes $ 17,530 $ (17,530)
_ Intergovernmental $ 25,275
Interest and rentals 29,240 $ 78,682 49,442 55,471
Developer fees 46,550 237,866 191,316 312,303
Other 567
Total Revenues 93,320 316,548 223,228 393,616
-- Expenditures:
Capital expenditures 632,923 109,553 523,370 351,106
-- Excess (Deficiency) of
Revenues Over
Expenditures (539,603) 206,995 746,598 42,510
Fund Balance, Beginning 2,799,421 2,799,421 2,756,911
-- Fund Balance, Ending $ 2,259,818 $ 3,006,416 $ 74____~6,598 $ 2,799,421
-- 63
CITY OF POWAY
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Drainage Special Revenue Fund
For the Year Ended June 30, 1994
1994 1993
Variance
Favorable
Budget Actual (Unfavorable) Actual
Revenues:
Taxes $ 237,050 $ 237,050 $ 302,739
Interest and rentals 33,840 23,572 $ (10,268) 34,830
Developer fees 23,750 10,210 (13,540) 50,749
Other 6,268 6,268 23,311
Total Revenues 294,640 277,100 (17,540) 411,629
Expenditures:
Current:
Public works 370,946 351,865 19,081 337,784
Capital expenditures 204,095 10,513 193,582 278,385
Total Expenditures 575,041 362,378 212,663 616,169
(Deficiency) of Revenues
Over Expenditures (280,401) (85,278) 195,123 ' (204,540)
Fund Balance, Beginning 2,992,578 2,992,578 3,197,118
Fund Balance, Ending $ 2,712,177 $ 2,907,300 $ 195,123 $ 2,992,578
64
CITY OF POWAY
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, 1994
-- 1994 1993
Variance
Favorable
-- Budget Actual (Unfavorable) Actual
Revenues:
Taxes $ 124,730 $ 140,694 $ 15,964 $ 137,211
-- Charges for services 1,111,700 996,225 (115,475) 927,261
Interest income 84,380 96,016 11,636 103,918
-- Total Revenues 1,320,810 1,232,935 (87,875) 1,168,390
Expenditures:
_ Current:
Public works 601,080 477,038 124,042 306,087
Community services 879,440 664,265 215,175 723,751
Total Expenditures 1,480,520 1,141,303 339,217 1,029,838
_ Excess (Deficiency) of
Revenues Over
Expenditures (159,710) 91,632 251,342 138,552
Fund Balance, Beginning 1,632,614 1,632,614 1,494,062
Fund Balance, Ending $1,472,904 $1,724,246 $ 251,342 $1,632,614
CITY OF POWAY
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual'
Miscellaneous Grants Special Revenue Fund
For the Year Ended June 30, 1994
1994 1993
Variance
Favorable
Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental $ 37,000 $ 13,077 $ (23,923) $ 87,318
Expenditures:
Capital expenditures 198,288 107,712 90,576 91,857
(Deficiency) of Revenues
Over Expenditures (161,288) (94,635) 66,653 (4,539)
Other Financing Sources (Uses):
Operating transfers in 26,539 26,539 106,123
Operating transfers out (64,600)
Total Other Financing
Sources (Uses) 26,539 26,539 41,523
Excess (Deficiency) of
Revenues and Other
Sources Over
Expenditures and
Other Uses (134,749) (68,096) 66,653 36,984
Fund Balance, Beginning 157,374 157,374 120,390
Fund Balance, Ending $ 22,625 $ 89,278 $__66,653 $ 157~37~4
66
CITY OF POWAY
-- Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Community Development Block Grant Special Revenue Fund
-- For the Year Ended June 30, 1994
-- 1994 1993
Variance
Favorable
_ Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental $ 202,780 $ 112,476 $ (90,304)
Interest and rentals $ 89
Total Revenues 202,780 112,476 (90,304) 89
Expenditures:
Capital expenditures 332,364 92,255 240,109 10,221
Excess (Deficiency) of
Revenues Over
Expenditures (129,584) 20,221 149,805 (10,132)
Other Financing (Uses):
Operating transfers out (10,000) (10,000)
Excess (Deficiency) of
Revenues Over
-- Expenditures and
Other Uses (129,584) 10,221 139,805 (10,132)
-- Fund Balance (Deficit), Beginning (8,333) (8,333) 1,799
Fund Balance (Deficit), Ending $ (137,917} $ 1,888 $ 139,805 $ (8,333)
-- 67
CITY OF POWAY
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Transportation Development Act Special Revenue Fund
For the Year Ended June 30, 1994
1994 1993
Variance
Favorable
Budget Actual (Unfavorable) Actual
Revenues:
Taxes $ 50,000
Intergovernmental $ 200,000 $ 70,003 $ (129,997) 14,357
Interest and rentals 3,077 3,077 3,461
Total Revenues 200,000 73,080 (126,920) 67,818
Expenditures:
Capital expenditures 269,533 21,678 247,855 36,768
Excess (Deficiency) of
Revenues Over
Expenditures (69,533) 51,402 120,935 31,050
Other Financing (Uses):
Operating transfers out (124,063)
Excess (Deficiency) of
Revenues Over
Expenditures and
Other Uses (69,533) 51,402 120,935 (93,013)
Fund Balance, Beginning 75,053 75,053 168,066
Fund Balance, Ending $ 5,520 $ 126,45.__~5 $ 120,935 $ 75,053
68
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, 1994
-- 1994 1993
Variance
Favorable
-- Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental $ 2,754,000 $ 2,792,383 $ 38,383 $ 310,539
-- Interest and rentals 73,920 82,379 8,459 84,365
Total Revenues 2,827,920 2,874,762 46,842 394,904
Expenditures:
Capital expenditures 3,042,894 2,072,264 970,630 310,539
Excess (Deficiency) of
Revenues Over
_ Expenditures (214,974) 802,498 1,017,472 84,365
Fund Balance, Beginning 1,432,143 1,432,143 1,347,778
Fund Balance, Ending $1,217,169 $ 2,234,641 $1,017,472 ' $1,432,143
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, 1994
1994 1993
Variance
Favorable
Budget Actual (Unfavorable) Actual
Revenues:
Interest andrentals $ 2,716,540 $ 2,785,134 $ 68,594 $ 2,537,552
Other 3,225 3,225
Total Revenues 2,716,540 2,788,359 71,819 2,537,552
Expenditures:
Current:
Community services 1,023,330 935,843 87,487 899,227
Capital expenditures 9,169
Total Expenditures 1,023,330 935,843 87,487 908,396
Excess of Revenues
Over Expenditures 1,693,210 1,852,516 159,306 1,629,156
Other Financing (Uses):
Operating transfers out (2,001,140) (1,817,099) 184,041 (1,827,504)
Excess (Deficiency) of
Revenues Over
Expenditures and
Other Uses (307,930) 35,417 343,347 (198,348)
Fund Balance, (Deficit) Beginning (40,954) (40,954) 157,394
Fund Balance, (Deficit) Ending $ (348,884) $ (5,537'} $ 343,347 $ (40,954)
70
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, 1994
-- 1994 1993
Variance
Favorable
-- Budget Actual (Unfavorable) Actual
Revenues:
Charges for services $ 147,460 $ 174,250 $ 26,790 $ 145,580
_ Interest and rentals 828,480 1,093,320 264,840 617,979
Other 27,000 27,000
Total Revenues 975,940 1,294,570 318,630 763,559
Expenditures:
_ General government 637,260 610,371 26,889 479,615
Capital expenditures 19,736,173 4,686,300 15,049,873 823,207
Bond issuance costs 507,792
-- Total Expenditures 20,373,433 5,296,671 15,076,762 1,810,614
(Deficiency) of Revenues
-- Over Expenditures (19,397,493) (4,002,101) 15,395,392 (1,047,055)
Other Financing Sources (Uses):
-- Proceeds of refunding bonds 12,951,911
Proceeds of long-term debt 17,993
Operating transfers in 2,732,489 2,770,338 37,849 2,518,536
-- Operating transfers out (2,656,567) (2,761,283) (104,716) (1,169,172)
Total Other Financing
~ Sources (Uses) 75,922 9,055 (66,867) 14,319,268
Excess (Deficiency) of
-- Revenues and Other
Sources Over
Expenditures and
~ Other Uses (19,321,571) (3,993,046) 15,328,525 13,272,213
Fund Balance~ Beginning, Restated 19,966,417 19,966,417 6,694,204
Fund Balance, Ending ~ 644,84_.~_6 $15,973r371 $ 15,328r525 $ 19,966,417
-- 71
DEBT SERVICE FUNDS Used to account for accumulation of
resources for the payment of interest and
-- principal of general long-term debt.
-- 73
CITY OF POWAY
Combining Balance Sheet
All Debt Service Funds
June 30, 1994
1986 1992 City of
1978 Certificates Certificates Poway
Fire of of Redevelopment
Bonds Participation Participation Agency
Assets
Cash and investments $ 177,328 $ 2,218,583 $ 716,927 $ 2,867,861
Taxes receivable 274,024
Interest receivable 300 28,041 10,775 189,998
Restricted assets:
Cash and investments
with fiscal agents 969,225 1,038,908 12,308,977
Total Assets $ 177,628 $ 3,215,849 $1,766,610 $ 15,640,860
Liabilities and Fund Balances
Liabilities:
Accrued liabilities $ 1,050
Fund balances:
Reserved:
Debt service $ 176,318 $ 3,199,465 1,760,266 $ 15,188,714
Temporary decline in market
value of investments 1,310 16,384 5,294 452,146
Total Fund Balances 177,628 3,215,849 1,765,560 15,640,860
Total Liabilities and
Fund Balances $ 177,62~8 $__3,215,849 $1,766,610 $ 15,640,860
74
Totals
1994 1993
$ 5,980,699 $ 9,695,116
_ 274,024 442,175
229,114 110,396
14,317,110 14,338,803
$ 20,800,947 $ 24,586,490
$ 1,050 $ 303,401
20,324463 24,283589
475,134
20,799,897 24,283,089
20,800,947 $ 24,586~490
-- 75
CITY OF POWAY
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - All Debt Service Funds
For the Year Ended June 30, 1994
1986 1992 City of
1978 Certificates Certificates Poway
Fire of of Redevelopment
Bonds Participation Participation Agency
Revenues:
Taxes $ 172,700 $ 11,554,728
Interest 4,750 $ 148,332 $ 137,720 944,276
Other 380
Total Revenues 177,450 148,332 137,720 12,499,384
Expenditures:
Payment to education
augmentation fund 545,597
Debt service:
Principal 140,000 235,000 150,000 6,474,721
Interest and fiscal charges 32,700 727,523 758,957 10,859,362
Bond issuance costs
Payment to refunded bond
escrow agent
Total Expenditures 172,700 962,523 908,957 17,879,680
Excess (Deficiency) of
Revenues Over
Expenditures 4,750 (814,191) (771,237) (5,380,296)
Other Financing Sources (Uses):
Proceeds from refunding bonds
Proceeds from long-term debt 1,199,293
Payment to refunded
bond escrow agent
Operating transfers in 604,482 379,706 4,440,358
Operating transfers (out) (3,146,057)
Total Other Financing
Sources (Uses) 604,482 379,706 2,493,594
Excess (Deficiency) of
Revenues and Other
Sources Over
Expenditures and
Other Uses 4,750 (209,709) (391,531) (2,886,702)
Fund Balances, Beginning 172,878 3,425,558 2,157,091 18,527,562
Fund Balances, Ending $ 177,628 $ 3,215,849 $1,765,560 $ 15,640,860
76
Totals
1994 1993
$ 11,727,428 $ 11,037,297
1,235,078 1,346,926
380
12,962,886 12,384,223
545,597 1,524,740
6,999,721 5,093,109
12,378,542 7,912,776
-- 1,542,165
3,899,214
19,923,860 19,972,004
(6,960,974) (7,587,781)
57,122,550
1,199,293 943,602
(47,271,404)
· 5,424,546 6,636,720
(3,146,057) (3,689,000)
3,477,782 13,742,468
(3,483,192) 6,154,687
24,283,089 18,128,402
20,799,897 $ 24,283,089
-- 77
CITY OF POWAY
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
1978 Fire Bonds Debt Service Fund
For the Year Ended June 30, 1994
1994 1993
Variance
Favorable
Budget Actual (Unfavorable) Actual
Revenues:
Taxes $ 172,700 $ 172,700 $ 170,800
Interest 4,750 $ 4,750 4,653
Total Revenues 172,700 177,450 4,750. 175,453
Expenditures:
Debt Service:
Principal 140,000 140,000 130,000
Interest and fiscal charges 32,700 32,700 40,700
Total Expenditures 172,700 172,700 170,700
Excess of Revenues
Over Expenditures 4,750 4,750 4,753
Fund Balance, Beginning 172,878 172,878 168,125
Fund Balance, Ending $ 172,878 $ 177,628 $4,750 $ 172,878
78
CITY OF POWAY
-- Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
1986 Certificates of Participation Debt Service Fund
_ For the Year Ended June 30, 1994
1994 1993
Variance
Favorable
_ Budget Actual (Unfavorable) Actual
Revenues:
Interest $ 136,420 $ 148,332 $11,912 $ 147,934
Expenditures:
Debt service:
Principal 235,000 235,000 220,000
-- Interest and fiscal charges 732,123 727,523 4,600 711,068
Total Expenditures 967,123 962,523 4,600 931,068
(Deficiency) of Revenues
Over Expenditures (830,703) (814,191) 16,512 (783,134)
Other Financing Sources:
Operating transfers in 604,482 604,482 967,760
Excess (Deficiency) of
Revenues and Other
-- Sources Over
Expenditures (226,221) (209,709) 16,512 184,626
-- Fund Balance, Beginning 3,425,558 3,425,558 3,240,932
Fund Balance, Ending $ 3,199~337 $ 3,215,849 $16~512 $ 3~425,558
-- 79
CITY OF POWAY
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
1992 Certificates of Participation Debt Service Fund
For the Year Ended June 30, 1994
1994 1993
Variance
Favorable
Budget Actual (Unfavorable) Actual
Revenues:
Interest $ 146,260 $ 137,720 $ (8,540) $ 152,859
Expenditures:
Principal 150,000 150,000 140,000
Interest and fiscal charges 762,417 758,957 3,460 767,413
Total Expenditures 912,417 908,957 3,460 907,413
(Deficiency) of Revenues
Over Expenditures (766,157) (771,237) (5,080) (754,554)
Other Financing Sources:
Operating transfers in 379,706 379,706 907,941
Excess (Deficiency) of
Revenues and Other
Sources Over
Expenditures (386,451) (391,531) (5,080) 153,387
Fund Balance, Beginning 2,157,091 2,157,091 2,003,704
Fund Balance, Ending $1,770,640 $1,765~560 $ (5,080) $ 2~157,091
8O
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, 1994
-- 1994 1993
Variance
Favorable
-- Budget Actual (Unfavorable) Actual
Revenues:
Taxes $ 11,370,100 $ 11,554,728 $ 184,628 $ 10,866,497
_ Interest 742,280 944,276 201,996 1,041,480
Other 380 380
Total Revenues 12,112,380 12,499,384 387,004 11,907,977
Expenditures:
Payment to education
-- augmentation fund 545,597 545,597 1,524,740
Debt service:
Principal 6,869,838 6,474,721 395,117 4,603,109
-- Interest and fiscal charges 9,959,240 10,859,362 (900,122) 6,393,595
Bond issuance costs 1,542,165
Payment to refunded bond
-- escrow agent 3,899,214
Total Expenditures 17,374,675 17,879,680 (505,005) 17,962,823
(Deficiency) of Revenues
Over Expenditures (5,262,295) (5,380,296) (118,001) (6,054,846)
Other Financing Sources (Uses):
Proceeds from refunding bonds 57,122,550
_ Proceeds from long-term debt 1,199,293 1,199,293 943,602
Payment to refunded bond
escrow agent (47,271,404)
_ Operating transfers in 4,551,990 4,440,358 (111,632) 4,761,019
Operating transfers (out) (4,479,606) (3,146,057) 1,333,549 (3,689,000)
Total Other Financing
-- Sources (Uses) 72,384 2,493,594 2,421,210 11,866,767
Excess (Deficiency) of
-- Revenues and Other
Sources Over
Expenditures and
-- Other Uses (5,189,911) (2,886,702) 2,303,209 5,811,921
Fund Balance, Beginning 18,527,562 18,527,562 12,715,641
Fund]Balance, Ending $ 13,337,651 $ 15,640,860 $ 2,303,209 $ 18,527,562
CAPITAL PROJECTS FUNDS
Park Improvement Fund Used to account for the financing and
-- construction of park facilities throughout the
City. Park assessment fee revenues and State
grants provide the financing.
Municipal Improvement Fund 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.
South Poway CFD #1 Fund Used to account for financing and
construction of streets, water and sewer
facilities in the South Poway Business Park.
Parkway Business Center Used to account for financing of grading and
CFD #88-1 Fund construction of streets, water and sewer
_ facilities in Parkway Business Center.
- 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, 1994
Parkway
South Business
Park Municipal Poway Center
Improvement Improvement CFD #1 CFD #88-1
Assets
Cash and investments $ 69,431 $ 7,468 $ 48,214
Interest receivable 8
Deposits
Due from other funds
Due from other governments
Advances to other funds 125,660
Fixed assets held for resale
Cash and investments
with fiscal agents 2,621
Total Assets $ 195,091 $ - $7,468 $ 50,84~3
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued liabilities.
Advances from other funds $ 307,228 $ 673,682
Deposits
Total Liabilities 307,228 673,682
Fund Balances:
Reserved:
Encumbrances 10,598 15,113
Advances to other funds 125,660
Fixed assets held for resale
Capital projects $ 7,402 $ 50,420
Temporary decline in market
value of investments 66 423
Unreserved, undesignated (deficit) (248,395) (688,795)
Total Fund Balances (112,137) (673,682) 7,468 50,843
Total Liabilities and
Fund Balances $ 195,091 $ - $7,468 $ 50,843
84
Redevelopment Totals
Area 1994 1993
$ 40,555,242 $ 40,680,355 $ 50,534,819
442,727 442,735 428,351
10,969 10,969 10,969
10,000 10,000
2,422 2,422
125,660 125,660
2,366,651 2,366,651 2,366,651
336,345 338,966 3,827,472
$ 43,7245356 $ 43,977,758 $ 57,293,922
921,173 $ 921,173 $ 1,442,853
11,623 11,623 194,170
980,910 1,101,228
73,946 73,946 7,450
1,006,742 1,987,652 2,745,701
1,512,166 1,537,877 4,148,036
125,660 125,660
2,366,651 2,366,651 2,366,651
38,713,630 38,771,452 48,952,254
125,167 125,656
(937,190) (1,044,380)
42,717,614 41,990,106 54,548,221
43,724,356 $ 43,977,758 $ 57,293,922
85
CITY OF POWAY
Combining Statement of Revenues, Expenditures agd Changes in Fund Balances
All Capital Projects Fun~s
For the Year Ended June 30, 1994
Parkway
Business
Park Municipal South Poway Center
Improvement Improvement CFD #1 CFD #88-1
Revenues:
Intergovernmental
Charges for services
Interest and rentals $ (83) $ 440 $ 24,207
Developer fees $ 17,500
Other 120,317 29,600
Total Revenues 17,500 120,234 440 53,807
Expenditures:
Current:
General government
Capital expenditures 55,371 11,419 643,216
Tax sharing agreement expenditure
Debt service:
Principal
Bond issuance costs
Total Expenditures 55,371 11,419. 643,216
Excess (Deficiency) of
Revenues Over
Expenditures (37,871) 108,815 440 (589,409)
Other Financing Sources (Uses):
Proceeds from refunding bonds
Proceeds from long-term debt
Operating transfers in 1,500 15,713
Operating transfers (out)
Total Other Financing
Sources (Uses) 1,500 15,713
Excess (Deficiency) of
Revenues and Other
Sources Over
Expenditures and
Other Uses (36,371) 124,528 440 (589,409)
Fund Balances, (Deficit)
Beginning, Restated (75,766) (798,210) 7,028 2,045,252
Residual Equity Transfer (1,405,000)
Fund Balances, (Deficit) Ending $ (112,137) $ (673,682) $7,468 $ 50,843
86
-- Redevelopment Totals
Area 1994 1993
-- $ 5,000,000 $ 5,000,000 $ 809,750
1,438,086 1,438,086 1,361,041
2,701,351 2,725,915 2,362,217
-- 17,500 365,450
111,959 261,876 96,739
_ 9,251,396 9,443,377 4,995,197
2,876,539 2,876,539 2,736,717
9,695,304 10,405,310 15,980,467
9,500,000 9,500,000
10,000 10,000
1,281,750
22,081,843 22,791,849 19,998,934
(12,830,447) (13,348,472) (15,003,737)
32,164,023
2,253,588 2,253,588 4,659,254
304,262 321,475 461,852
(379,706) (379,706) (3,092,057)
2,178,144 2;195,357 34,193,072
(10,652,303) (11,153,115) 19,189,335
-- 53,369,917 54,548,221 3'5,358,886
(1,405,000)
$ 42,717,614 $ 41,990,106 $ 54,548,221
-- 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 fund,
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.
- 89
CITY OF POWAY
Combining Balance Sheet
All Enterprise Funds
June 30, 1994
Water Sewer Totals
Assets Fund Fund 1994 1993
Current Assets:
Cash and investments $ 6,029,767 $ 14,807.239 $ 20,837,006 $ 22,378,983
Receivables (net, where
applicable of allowance for
estimated uncollectl'bles):
Accounts 1,113,208 780,987 1,894,195 1,661,589
Interest 117,891 117,891
Due from other funds 2,788,262 2,788,262
Inventories, at cost 813,361 813,361 783,542
Total Current Assets 7,956,336 18,494,379 26,450,715 24,824,114
Restricted Assets:
Cash and investments 4,844,599 257,237 5,101,836 4,348,637
Cash and investments
with fiscal agents 232,730 232,730 26,257
Taxes receivable (net,
where applicable, of
allowance for estimated
uncollectibles) 36,773 1,550 38,323 23,561
Deposits 13,378 13,378 13,378
Total Restricted Assets 5,127,480 258,787 5,386,267 4,411,833
Advances to other funds 3,862,411 1,482,827 5,345,238 5,345,238
Property, Plant and Equipment:
Land 76,797 76,797 76,797
Buildings and structures 8,794,860 668,204 9,463,064 9,463,064
Improvements other
than buildings 18,506,145 14,992,283 33,498,428 33,462,065
Machinery and equipment 669,682 398,195 1,067,877 1,067,877
Construction in progress 1,973,031 1,973,031 1,973,031
Total Property, Plant
and Equipment 27,970,687 18,108,510 46,079,197 46,042,834
Less Accumulated Depreciation (13,449,199) (5,957,720) (19,406,919) (18,250,513)
Net Property, Plant
and Equipment 14,521,488 12,150,790 26,672,278 27,792,321.
Total Assets $ 31,467,715 $ 32,386,783 $ 63,854,498 $ 62,373,506
90
CITY OF POWAY
-- Combining Balance Sheet
All Enterprise Funds (Continubd)
June 30, 1994
Water Sewer Totals
Fund Fund 1994 1993
Liabilities and Fund Equity _
Current Liabilities (payable
from current assets):
-- Accounts payable $ 713,469 $ 183,088 $ 896,557 $ 1,162,832
Accrued liabilities 76,343 28,606 104,949 189,309
789,812 211,694_ 1,001,506 1,352,141
Current Liabilities (payable
from restricted assets):
_ Bonds payable - due
within one year 350,000 150,000 500,000 450,000
Unredeemed matured bond
357,109 2,475 359,584 345,471
and interest payable
707,109 152,475 859,584 795,471
-- Total Current Liabilities 1,496,921 364,169 1,861,090 2,147,612
Long-Term Debt Excluding
-- Current Installments:
General obligation bonds Payable 7,925,000 150,000 8,075,000 8,400,000
Special assessment bonds payable 338,339 338,339 489,452
-- Contracts payable 5,407 5,407 5,407
Total Long-Term Debt 8,268,746 150,000 8,418,746 8,894,859
Total Liabilities 9,765,667 514,169 10,279,836 11,042,471
_ Fund Equity: ~,505,455
Contributed capital ,3,228,040 2,277,415 5,505,455
Less accumulated depreciation (435,161) _ (357,864) (793,025) (725,534)
-- 2,792,879 1,919,551 4,712,430 4,779,921
Retained Earnings:
Reserved for debt service 4,406,993 106,312 4,513,305 3,602,984
-- Reserved for temporary decline
in market value of investments 98,642 133,998 232,640
Unreserved 14,403,534 29,712,753 44,116,287 42,948,130
Total Retained Earnings 18,909,169 29,953,063 48,862,232 46,551,114
-- Total Fund Equity 21,702,048 31,872,614 53,574,662 51,331,035
Total Liabilities and
-- Fund Equity $ 31 467 715 $ 32 386 783 $ 63 854 498 $ 62,373r506
-- 91
CITY OF POWAY
- Combining Statement of Revenues, Expenses, and Changes in Retained Earnings
All Enterprise Funds
For the Year Ended June 30, 1994
Water Sewer Totals
Fund Fund 1994 1993
Operating Revenues:
Charges for services $ 7,746,559 $ 4,125,449 $ 11,872,008 $ 10,933,648
Connection fees 118,453 173,705 292,158 903,965
Annexation fees 20,384 20,384 23,289
Other 16,806 35,595 52,401 472,912
-- Total Operating Revenues 7,881,818 4,355,133 12,236,951 12,333,814
Operating Expenses:
-- Personal services 1,189,537 385,478 1,575,015 1,975,282
Maintenance and operations 2,013,085 3,385,899 5,398,984 5,953,170
Cost of purchased water 4,352,730 4,352,730 3,493,486
-- Depreciation and amortization 779,978 376,428 1,156,406 1,112,726
Total Operating Expenses 8,335,330 4,147,805 12,483,135 12,534,664
Operating Income (Loss) (453,512) 207,328 (246,184) (200,850)
-- Nonoperating Revenues (Expenses):
Taxes 1,455,776 53,534 1,509,310 1,466,940
Interest revenue 642,503 1,041,479 1,683,982 1,801,619
-- Interest expense and fiscal
agent charges (678,606) (24,875) (703,481) (736,825)
_ Total Nonoperating Revenues 1,419,673 1,070,138 2,489,811 2,531,734
Income Before
_ Operating Transfers 966,161 1,277,466 2,243,627 2,330,884
Operating Transfers:
Transfers in 106,230 106,230
Transfers (out) (106,230) (106,230) (21,800)
Net Income 1,072,391 1,171,236 2,243,627 2,309,084
Depreciation on contributed capital 37,141 30,350 67,491 67,491
-- Increase in Retained Earnings 1,109,532 1,201,586 2,311,118 2,376,575
Retained Earnings, Beginning 17,799,637 28,751,477 46,551,114 44,174,539
RetainedEarnings, Ending $ 18,909,169 $ 29,953,063 $ 48,862,232 $ 46,551,114
-- 93
CITY OF POWAY
Combining Statement of Cash Flows
All Enterprise Funds
For the Year Ended June 30, 1994
Water Sewer
Fund Fund
Cash Flows from Operating Activities:
Operating income (loss) $ (453,512) $ 207,328
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation and amortization 779,978 376,428
Changes in operating assets and liabilities:
Increase in accounts receivable (31,524) (201,082)
(Increase) Decrease in inventories (29,819)
Increase (decrease) in accounts payable (4,278) (261,996)
(Decrease) in accrued liabilities (75,268) (9,092)
Net Cash Provided by Operating Activities 185,577 111,586
Cash Flows from Non-Capital Financing Activities:
Taxes 1,440,060 54,488
Transfers in 106,230
Transfers out (106,230)
Payments - due from other thnds (2,788,262)
Net Cash Provided by (Used for)
Non-Capital Financing Activities 1,546,290 (2,840,004)
Cash Flows from Capital and Related Financing Activities:
Interest expense and fiscal agent charges (637,012) (28,470)
Principal payments on long-term borrowing (325,000) (125,000)
Acquisition of property, plant, and equipment (14,834) (21,529)
Net Cash Used for Capital and
Related Financing Activities (976,846) (174,999)
Cash Flows from Investing Activities:
Interest received 642,503 923,588
Net Increase (Decrease) in Cash and Cash Equivalents 1,397,524 (1,979,829)
Cash and Cash Equivalents, Beginning 9,709,572 17,044,305
Cash and Cash Equivalents, Ending $ 11,107,096 $ 15~064,476
94
Totals
_ 1994 1993
$ (246,184) $ (2oo,85o)
1,156,406 1,112,726
(232,6o6) (279,871)
(29,819) 24,657
(266,274) 161,447
(84,360) (105,459)
297,163 712,650
1,494,548 1,468,664
106,230
(106,230) (21,800)
(2,788,262) (362,000)
(1,293,714) 1,084,864
(665,482) (647,280)
(450,000) (415,000)
(36,363) (277,925)
(1,151,845) (1,340,205)
1,566,091 1,801,619
(582,305) 2,258,928
26,753,877 24,494,949
26~171,572 $ 26~753~877
-- 95
_ INTI~RNAL SERVICE FUND
Vehicle Maintenance Fund Used to account for the costs of
operating 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.
-- 97
CITY OF POWAY
Comparative Balance Sheet
Vehicle Maintenance Internal Service Fund
June 30, 1994
1994 1993
Assets
Current Assets:
Cash and investments $3,516,245 $ 3,290,590
Liabilities and Fund Equity
Current Liabilities:
Accounts payable $ 13,660 $ 56,268
Accrued liabilities 10,680. 13,764
Total Liabilities 24,340 70,032
Fund Equity:
Retained Earnings:
Reserved for equipment replacement 3,460,847 3,220,558
Reserved for temporary decline in market
value of investments 31,058
Total Fund Equity 3,491,905 3,220,558
Total Liabilities and Fund Equity $ 3t516,245 $ 3,290,590
98
CITY OF POWAY
- Comparative Statement of Revenues, Expenses, and Changes in Retained Earnings
Vehicle Maintenance Internal Service Fund
For the Year Ended June 30, 1994
1994 1993
-- Operating Revenues:
Charges for services $ 543,840 $ 542,480
Other 4,039 6,014
Total Operating Revenues 547,879 548,494
-- Operating Expenses:
Personal services 175,865 166,516
Maintenance and operations 43,672 3,742
Total Operating Expenses 219,537 170,258
_ Operating Income 328,342 378,236
Nonoperating Revenue:
Interest revenue 203,061 220,239
Income Before Operating Transfers 531,403 598,475
Operating Transfers:
Transfers in 635,812
Transfers (out) (260,056) (1,048,623)
Total Operating Transfers (260,056) (412,811)
-- Net Income 271,347 185,664
Retained Earnings, Beginning 3,220,558 3,034,894
Retained Earnings, Ending $ 3,491,905 $ 3,220,558
CITY OF POWAY
Comparative Statement of Cash Flows
Vehicle Maintenance Internal Service Fund
For the Year Ended June 30, 1994
1994 1993
Cash Flows from Operating Activities:
Operating income $ 328,342 $ 378,236
Adjustments to reconcile operating income
to net cash provided by operating activities:
Changes in operating assets and liabilities:
Increase (decrease) in accounts payable (42,608) 53,179
(Decrease) in accrued liabilities (3,084) (912)
Net Cash Provided by
Operating Activities 282,650 430,503
Cash Flows from Non-capital and Related
Financing Activities:
Transfers in 635,812
Transfers (out) (260,056) (1,048,623)
Net Cash Used for Non-Capital
and Related Financing Activities (260,056) (412,811)
Cash Flows from Investing Activities:
Interest received 203,061 220,239
Net Increase in Cash and Cash Equivalents 225,655 237,931
Cash and Cash Equivalents, Beginning 3,290,590 3,052,659
Cash and Cash Equivalents, Ending $ 3,516~245 $ 3~290~59_~_0
100
- FIDUCIARY FUNDS
-- NONEXPENDABLE TRUST FUND
Mary Patricia Ross Trust Fund 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.
Library Trust Fund 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.
EXPENDABLE TRUST FUNDS
_ Bendixon Expendable Trust Fund Used to account for money provided by
private donors restricted to maintenance of
riding and hiking trails.
Poway Road Beautification Used to account for money provided by
Expendable Trust Fund donors restricted to beautification efforts
-- along Poway Road.
Performing Arts Center Used to account for money provided by
- Expendable Trust Fund donors restricted to Performing Arts Center
construction.
AGENCY FUNDS
-- Deferred Compensation Used to account for deferred compensation
programs on behalf of the City and its
_ employees.
Developer Deposits Used to account for the collection and
_ payments of development deposits from and
on behalf of the collective and individual
developers.
South Poway CFD #1 Used to account for debt service payments
Bond Deposits collected through property tax assessments
-- remitted to fiscal agent-trustee for payment
on bonds.
101
FIDUCIARY FUNDS (Continued)
AGENCY FUNDS
Parkway Business Center Used to account for debt service payments
CFD #88-1 Bond Deposits collected through property tax assessments
-- remitted to fiscal agent-trustee for payment
on bonds.
103
CITY OF POWAY
Combining Balance Sheet
All Fiduciary Funds
June 30, 1994
Nonexpendable
Trust Funds Expendable Trust Funds
Mary Poway
Patricia Road Performing
Ross Library Bendixon Beautification Arts Center
Assets
Cash and investments $ 42,888 $ 456,996 $ 9,026 $5,299
Receivables:
Taxes
Accounts
Interest
Cash and investments
with fiscal agents
Total Assets $ 42,888 $ 456,996 $9,026 $5,299 $ -
Liabilities and Fund Balances
Liabilities:
Accounts payable
Due to other funds
Deposits $ 8,775
Due to bondholders
Deferred compensation payable
Advances from other t~nds
Total Liabilities 8,775
Fund Balances:
Reserved for capital projects $ 42,512 $ 452,985 $8,947 $5,252
Reserved for temporary decline
in market value of investments 376 4,011 79 47
Unreserved:
Designated for performing arts
Undesignated (8,775)
Total Fund Balances 42,888 456,996 9,026 5,299 (8,775)
Total Liabilities and
Fund Balances $42,888 $~456,996 $9,026 $5,299 $ -
104
Agency Funds
- Park~vay
Business
South Poway Center
-- Deferred Developer CFD #1 CFD #88-1 Totals
Compensation Deposits Bond Deposits Bond Deposits 1994 1993
$ 3,939,611 $ 435,148 $ 1,864,722 $ 337,089 $ 7,090,779 $ 6,318,603
_ 6,118 34,616 40,734 19,969
8,773 121,483 130,256 6,411
89,070 138,752 227,822 218,583
3,002,571 3,843,898 6,846,469 7,014,050
_ $ 3,939.611 $ 44_~3~921. $ 4,962,481 $ 4,475,838 $14,336,060 $ 13,577,61.~6
$ 22,057 $ 22,057
4,159,660 4,159,660 $ 1,416,267
-- $ 423,921 432,696 505,926
$ 4,962,481 294,121 5,256,602 7,625,212
$ 3,939,611 3,939,611 3,409,376
-- 20,000 20,000 27,884
3,939,611 443,921 4,962,481 4,475,838 13,830,626 12,984,665
509,696 483,067
4,513
-- 109,884
(8,775)
_ 505,434 592,951
-- $ 3,939,611 $ 443,92~1 $ 4,962,481 $ 4,475,838 $14,336.060 $ 13,577,616
105
CITY OF POWAY
Combining Statement of Revenues, Expenses, and Changes in Fund Balances
All Nonexpendable Trust Funds
For the Year Ended June 30, 1994
Mary
Patricia Totals
Ross Library 1994 1993
Operating Revenues:
Donations $ 870 $ 870 $ 401,000
Interest $ 2,526 26,903 29,429 30,962
Total Revenues 2,526 27,773 30,299 431,962
Fund Balances, Beginning 40,362 429,223 469,585 37,623
Fund Balances, Ending $ 42,888 $ 456,996 $ 499,884 $ 469,585
106
CITY OF POWAY
-- Combining Statement of Cash Flows
All Nonexpendable Trust Funds
For the Year Ended June 30, 1994
Patricia Totals
Ross Library 1994 1993
Cash Flows from Operating Activities:
Operating income $ 2,526 $ 27,773 $ 30,299 $ 431,962
Adjustment to reconcile opera~ng
income to net cash provided by
~- operating activities:
Interest income (2,526) (26,903) (29,429) (30,962)
-- Net Cash Provided by
Operating Activities 870 870 401,000
-- Cash Hows from Investing Activities:
Interest received 2,526 26,903 29,429 30,962
-~ Net Increase in Cash and
Cash Equivalents 2,526 27,773 30,299 431,962
-- Cash and Cash Equivalents, Beginning 40,362 429,223 469,585 37,623
Cash and Cash Equivalents, Ending $ 42,888 $ 456~996 $ 499~884 $ 469~585
-- 107
CITY OF POWAY
Statement of Revenues, Expenditures, and Changes in Fund Balances
Expendable Trust Funds
For the Year Ended June 30, 1994
Poway
Road Performing
Beautifi- Arts Totals
Bendixon cation Center 1994 1993
Revenues:
Interest $ 531 $ 312 $ 1,657 $ 2,500 $ 9,897
Donations 212
Total Revenues 531 312 1,657 2,500 10,109
Expenditures:
Current:
Community services 120,316 120,316
Excess (Deficiency)
of Revenues Over
Expenditures 531 312 (118,659) (117,816) 10,109
Fund Balances, Beginning 8,495 4,987 109,884 123,366 113,257
Fund Balances, Ending $ 9~026 $ 5,299 $ (8,775) $ 5,550 $ 123,366
108
CITY OF POWAY
Combining Statement of Changes in Assets and Liabilities
All Ageno/Funds
For the Year Ended June $0, 1994
Balance Balance
- Deferred Compensation Fund July 1, 1993 Additions Deletions June 30, 1994
Assets
Cash and investments $ 3,409,376 $ 64:2,151 $ 111,916 $ 3,939,61~1
-- Liabilities
Deferred compensation payable $~3,409,376 $ 642~151 $ 111,916 $ 3,939,611
Developer Deposits Fund
-- Assets
Cash and investments $ 510,740 $ 346,050 $ 421,642 $ 435,148
Accounts receivable 6,411 8,773 6,411 8,773
Total Assets $ 51..~7,151. $ 354,823 $ 428,053 $ 443,921
Liabilities
Deposits $ 497,151 $ 354,823 $ 428,053 $ 423,921
Advances from other funds 20,000 20,000
Total Liabilities $ 517,151 $ 354,823 $ 428,053 $ 443,921
South Powa¥ CFD #1 Bond Deposits
-- Assets
Cash and investments $ 1,796,921 $ 67,801 $ 1,864,722
~'- Taxes receivable 19,969 6,118 $ 19,969 6,118
Interest receivable 91,048 8%070 91,048 8%070
Cash and investments with
- fiscal agents 3,003,131 218,713 219,273 3,002,571
Total Assets $ 4,911,069 $ 381,702 $ 330,290 $ 4,962,481
Liabilities
-- Due to bondholders $ 4,911,069 $ 381,702 $ 330~290 $ 4,962,481
(Continued)
CITY OF POWAY
Combining Statement of Changes in Assets and Liabilities
All Agency Funds (Continued)
For the Year Ended June 30, 1994
Balance Balance
Parkway Business Center July 1, 1993 Additions Deletions June 30, 1994
CFD #88-1 Bond Deposits
Assets
Cash and investments $ 8,892,081 $ 8,554,992 $ 337,089
Taxes receivable 34,616 34,616
Accounts receivable 121,483 121,483
Interest receivable $ 127,375 138,752 127,375 138,752
Gash and investments with
fiscal agents 4,010,919 2,209,560 2,376,581 3,843,898
TotalAssets $ 4,138,294 $ 11,396,492 $ 11,058,948 $ 4,475,838
Liabilities
Accounts payable $ 22,057 $ 22,057
Due to other funds $ 1,416,267 2,743,393 4,159,660
Due to bondholders 2,714,143 8,631,042 $ 11,051,064 294,121
Advances from other funds 7,884 7,884
Total Liabilities $ 4,138,294 $ 11,396,492 $ 11,058,948 $ 4,475,838
Total - All Agency Funds
Assets
Cash and investments $ 5,717,037 $ 9,948,083 $ %088,550 $ 6,576,570
Accounts receivable 6,411 130,256 6,411 130,256
Taxes receivable 19,969 40,734 19,969 40,734
Interest receivable 218,423 227,822 218,423 227,822
Cash and investments with
fiscal agents 7,014,050 2,428,273 2,595,854 6,846,469
Total Assets $ 12,975,890 $ 12,775,168 $ 11~929,207 $ 13,821,851
Liabilities
Accounts payable $ 22,057 $ 22,057
Due to other funds $ 1,416,267 2,743,393 4,159,660
Deposits 497,151 354,823 $ 428,053 423,921
Due to bondholders 7,625,212 9,012,744 11,381,354 5,256,602
Deferred compensation payable 3,409,376 642,151 111,916 3,939,611
Advances from other funds 27,884 7,884 20,000
Total Liabilifies $ 12,975,890 $ 12,775,168 $ 11,929,207 $ 13,821,851
110
-- ACCOUNT GROUPS
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.
General Long-Term Debt Used to account for the unmatured long-term
indebtedness of the City and Redevelopment
Agency not accounted for in the proprietary
funds.
111
CITY OF POWAY
Comparative Schedule of General Fixed Assets
by Source
June 30, 1994
1994 1993
-- General Fixed Assets:
Land $ 42,391,341 $ 36,518,112
Buildings 26,006,899 25,299,630
- Improvements other than buildings 2,089,679 854,149
Machinery and equipment 5,593,997 4,827,179
Total General Fixed Assets $ 76,081,916 $ 67,499,070
-- Investments in General Fixed Assets:
General Fund revenues $ 68,279,009 $ 59,696,163
Special Revenue Fund revenues 1,397,031 1,397,031
_ Capital Projects Funds:
State grants 237,514 237,514
Donations 1,987,442 1,987,442
Bond proceeds 262,922 262,922
Federal grants 1,096 1,096
-- Transfer from prior water districts 3,916,902 3,916,902
Total Investments in General Fixed Assets $ 76,081,916 $ 67,499,070
113
CITY OF POWAY
Schedule of General Fixed Assets
by Function and Activity
June 30, 1994
Improvements
Other than
Function and Activity Land Buildings Buildings
General Government:
Manager $ 33,674
Clerk
Personnel
Finance and Administration $ 117,796 413,793
Other -
Services 2,864,429 311,114 $ 27,160
Government Buildings 1,997,057 10,180,749 49,174
Total General Government 4,979,282 10,939,330 76,334
Public Safety.'
Safety 2,476,330
Fire
Paramedics
Inspection
Total Public Safety 2,476,330
Highways and Streets:
Engineering
Maintenance 371,844 6,983
Total Highways and Streets 371,844 6,983
Culture and Recreation 12,594,082 7,044,883 475,999
Mobilehome Parks 24,817,977 5,174,512 1,530,363
Total General Fixed Assets $ 42,391,341 $ 26,006,899 $ 2,089,679
114
Machinery
- and
Equipment Total
$ 17,121 $ 50,795
125,005 125,005
-- 4,053 4,053
1,061,759 1,593,348
-- 731,735 3,934,438
642,030 12,869,010
-- 2,581,703 18,576,649
354,995 2,831,325
841,147 841,147
127,240 127,240
39,946 39,946
1,363,328 3,839,658
20,173 20,173
1,170,727 1,549,554
1,190,900 1,569,727
445,712 20,560,676
12,354 31,535,206
5,593,997 $ 76,081,916
115
CITY OF POWAY
Schedule of Changes in General .Fixed Assets
by Function and Activity
For the Year Ended June 30, 1994
General General
Fixed Fixed
Assets Assets
Function and Activity July 1, 1993 Additions Deletions June 30, 1994
General Government:
Manager $ 50,795 $ 50,795
Clerk 125,005 125,005
Personnel 4,053 4,053
Finance and Administration 1,562,406 $ 30,942 1,593,348
Other -
Services 743,439 3,190,999 3,934,438
Government Buildings 12,789,687 79,323 12,869,010
Total General Government 15,275,385 3,301,264 18,576,649
Public Safety:
Safety 2,812,690 18,635 2,831,325
Fire 285,314 555,833 841,147
Paramedics 127,240 127,240
Inspection 39,946 39,946
Total Public Safety 3,265,190 574,468 3,839,658
Highways and Streets:
Engineering 20,173 20,173
Maintenance 1,434,237 115,317 1,549,554
Total Highways and Streets 1,454,410 115,317 ,1,569,727
Culture and Recreation 18,676,112 1,884,564 20,560,676
Mobilehome Parks 28,827,973 2,749,573 $ 42,340 31,535,206
Total General Fixed Assets $ 67~499,070 $ 8,625,186 $ 42,340 $ 76,081~916
116
CITY OF POWAY
Comparative Schedule of General Long-Term Debt
June 30, 1994
1994 1993
Amount Available and to be Provided for
the Payment of General Long-Term Debt:
_ General Obligation Bonds:
Amount available in debt service fund $ 177,628 $ 172,878
Amount to be provided 298,915 445,128
Total General Obligation Bonds 476,543 618,006
Other General Long-Term Debt:
Amount available in debt service fund 20,622,269 24,110,211
Amount to be provided 197,680,191 197,632,825
-- Total Other General Long-Term Debt 218,302,460 221,743,036
Total Available and to be Provided $ 218,779,003 $ 222~361,04____~_2
General Long-Term Debt Payable:
General obligation bonds payable $ 476,543 $ 618,006
Other General Long-Term Debt Payable:
Certificates of participation 49,445,000 49,830,000
-- Tax allocation bonds payable 121,170,000 124,955,000
Advances from other funds 28,174,512 28,565,512
Contracts payable 5,300,863 5,301,323
-- Notes payable 14,094,983 12,950,363
Obligation under capital lease 117,102 140,838
_ Total Other General
Long-Term Debt Payable 218,302,460 221,743,036
-_ Total General Long-Term Debt Payable $ 218,779,003 $ 222,361,042
-- 117
STATISTICAL SECTION
CITY OF POWAY
General Governmental Expenditures by Function (1)
Last Ten Fiscal Years
Fiscal General Public Public Community Capital
Year Government Safety Works Services Expenditures
1985 $ 2,235,693 $ 3,110,452 $1,138,213 $1,174,574 $ 1,900,558
1986 1,892,658 3,586,667 1,842,148 1,354,792 2,617,481
1987 5,510,445 3,839,927 2,352,455 1,619,141 5,981,374
1988 3,735,640 4,389,463 3,134,370 1,920,189 8,670,339
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 2,605,336 4,289,493 18,690,422
1994 6,018,367 8,371,953 3,001,012 4,216,928 18,312,184
Notes:
(1) Includes all governmental fund types
Source: City Administrative Services Department
120
Debt
Service Total
$ 475,813 $ 10,035,303
-- 255,137 11,548,883
2,413,256 21,716,598
2,740,959 24,590,960
_ 5,896,486 57,650,597
7,465,211 59,710,513
11,911,077 87,280,897
23,317,449 71,309,296
21,761,546 62,623,912
- 29,469,665 69,390,109
-- 121
CITY OF POWAY
General Governmental Revenues by Source (1)
Last Ten Fiscal Years
Licenses Intergovern - Charges
Fiscal and mental for Fines and
Year Taxes Permits Revenues Services Forfeitures
1985 $ 4,554,371 $ 328 701 $ 2,692,099 $ 2,518,836 $ 145,801
1986 6,107,864 316 911 3,862,104 2,158,738 159,582
1987 7,460,663 388 728 3,426,391 4,457,868 145,609
1988 9,473,188 373 624 2,872,540 4,807,079 134,111
1989 12,709,759 378 091 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 18,702,862 352 341 3,492,141 6,047,267 95,080
1993 18,952,451 340 884 3,643,717 6,532,158 71,747
1994 19,995,042 335 037 10,374,690 7,061,989 91,593
TABLE 2A
CITY OF POWAY
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
Fiscal Property Franchise Motor
Year Tax Sales Tax Tax Vehicle Tax Total
1985 $ 1,424,665 $1,647,344 $ 284,641 $1,197,721 $ 4,554,371
1986 2,164,151 2,158,356 314,952 1,470,405 6,107,864
1987 3,530,980 2,079,533 304,148 1,546,002 7,460,663
1988 5,161,064 2,297,080 317,747 1,697,297 9,473,188
1989 8,214,128 2,416,290 330,129 1,749,212 12,709,759
1990 9,905,769 2,790,198 338,865 1,789,373 14,824,205
~1991 13,915,042 2,571,959 398,823 1,809,872 18,695,696
1992 13,920,524 2,672,052 403,911 1,706,375 18,702,862
1993 13,588,578 3,251,723 510,581 1,601,569 18,952,451
1994 14,251,274 3,593,312 589,035 1,561,421 19,995,042
Note:
(1) Includes all governmental fund types and an expendable trust fund.
Source: City Administrative Services.Department
122
Interest
and
- Rentals Other Total
$ 945,855 $ 153,597 $11,339,260
-- 2,114,240 205,997 14,925,436
3,992,736 502,011 20,374,006
4,396,088 486,322 22,542,952
_ 7,376,764 1,680,039 33,555,995
8,680,108 2,535,849 36,796,423
8,833,021 9,288,421 47,714,492
-- 8,351,217 2,574,632 39,615,540
8,226,841 1,961,333 39,729,131
8,995,116 1,121,228 47,974,695
CITY OF POWAY
Property Tax Levies and Collections
Last Ten Fiscal Years
Current Percent Delinquent Delinquent
Fiscal Year Current Tax of Levy Tax Tax
Year Tax Levy Collections Collected Receivable Collections
1985 $ 4,126,697 $ 3,846,429 93% $ 486,136 $ 216,385
1986 4,873,378 4,635,446 95 509,275 275,516
1987 5,261,453 4,968,778 94 487,319 233,983
1988 5,892,828 5,617,548 95 528,247 242,144
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 95 196,617 230,400
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
Source: County of San Diego, Auditor and Controller's Office
124
Percent of Percent of
Total Tax Outstanding Delinquent
- Total Tax Collections Delinquent Taxes to
Collections to Tax Levy Taxes Tax Levy
-- $ 4,062,814 98% $ 550,019 13%
4,910,962 101 471,691 10
5,202,761 99 546,011 10
_ 5,859,692 99 561,383 10
6,277,118 95 834,392 13
7,927,692 99 600,469 7
8,919,981 98 413,351 5
12,709,311 101 307,971 3
-- 9,556,330 99 533,344 6
9,972,059 78 3,431,585 27
CITY OF POWAY
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Real Property Personal Property
Fiscal Assessed Estimated Assessed Estimated
Year Value Actual Value Value Actual Value
1985 $ 1,115,557,602 $ 1,115,557,602 $ 18,010,665 $ 18,010,665
1986 1,224,261,949 1,224,261,949 19,624,399 19,624,399
1987 1,371,840,241 1,371,840,241 18,277,448 18,277,448
1988 1,546,330,363 1,546,330,363 24,897,449 24,897,449
1989 1,744,013,209 1,744,013,209 27,045,506 27,045,506
1990 2,052,405,447 2,052,405,447 30,240,937 30,240,937
1991 2,413,737,613 2,413,737,613 37,219,612 37,219,612
1992 2,684,903,547 2,684,903,547 44,186,797 44,186,797
1993 2,858,029,834 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
Source: County of San Diego Assessor's Office
126
Total Percent
Assessed Estimated Change From
- Value Actual Value Previous Year
$ 1,133,568,267 $ 1,133,568,267 9%
1,243,886,348 1,243,886,348 10
__ 1,390,117,689 1,390,117,689 12
1,571,227,812 1,571,227,812 13
1,771,058,715 1,771,058,715 13
2,082,646,384 2,082,646,384 18
2,450,957,225 2,450,957,225 18
-- 2,729,090,344 2,729,090,344 1 !
2,912,244,695 2,912,244,695 7
3,033,967,197 3,033,967,197 4
127
CITY OF POWAY TABLE 5
Property Tax Rates - Direct and Overlapping Governments
(Per $100 of Assessed Value)
I~st Ten Fiscal Years
School Other
Fiscal District Total
Year City County District
1985 .28905 .25000 .51242 .11926 1.17073
1986 .32886 .24950 .46733 .08607 1.13176
1987 .29186 .25000 .46737 .11266 1.12189
1988 .28323 .25000 .46636 .11147 1.11106
1989 .27807 .25000 .46636 .11147 1.10585
1990 .26594 .25000 .46636 .11147 1.09357
1991 .25841 .25000 .46636 .11147 1.08624
1992 .25440 .25000 .46636 .11147 1.08223
1993 .39145 .15465 .38705 .14314 1.07629
1994 .38977 .15465 .38705 .14314 1.07461
Source: County of San Diego Auditor and Controller's Office and Planning and l.~nd Use
Development
128
CITY OF POWA¥ TABLE 6
- Ten Largest Taxpayers
June 30, 1994
Percentage
Name Assessed Valuation of Total
Burnham Pacific Properties Inc. $ 30,352,000 16.4%
_ JMP Advisors Inc. 30,094,858 16.2
Stoneridgc Country Club Corp. 26,954,274 14.5
C.F. Poway Ltd. 25,351,104 13.7
_ Tech Business Center 17,147,015 9.2
R & R Partners-Poway 15,779,609 8.5
Beecroft, Joseph N. & Lois M; 11,923,832 6.4
Gateway Medical Building-Joint Venture 10,710,964 5.8
Poway Creekside Partners 9,136,744 4.9
-- Standard Pacific LP 8,251,770 4.4
$ 185~702,170 100.0%
Source: San Diego County Assessor's Office and City Finance Division
129
CITY OF POWAY TABLE 7
Special Assessment Collections
Last Ten Fiscal Years
Current Current Ratio of Total
Fiscal Assessment Assessment Collections Outstanding
Year Due Collected To Amount Due Assessments
1985 $ 215,919 $ 202,210 94% $13,709
1986 218,630 204,749 94 13,881
1987 215,920 172,956 80 42,964
1988 213,209 176,038 83 37,171
1989 213,209 177,506 83 35,703
1990 213,209 200,146 94 13,063
1991 212,210 180,172 85 32,038
1992 215,209 187,447 87 27,762
1993 209,640 194,214 93 15,426
1994 216,707 196,692 91 20,015
Source: City Adminisu'ative Services Department
130
CITY OF POWAY TABLE 8
~ Computation of Legal Debt Margin
June 30, 1994
-- Total Valuation (1) $ 489,815,405
Debt Limit - 15 percent of total valuation $ 73,472,310
Amount of Debt Applicable
to Debt Limit:
Bonded Debt $ 8,875,000
-- Less Amounts Available for
Repayment of Debt:
-- Held by Debt Service Fund 5,511,894
Total Amount of Debt Applicable
_ to Debt Limit 3,363,106
Legal Debt Margin $ 70,109~204
-- Notes:
(1) 25% of the assessed valuation, after deducting redevelopment tax allocation
-- increment.
-- Source: City Administrative Services Department
_ 131
CITY OF POWAY TABLE 9
Ratio of Net General Bonded Debt to Assessed Value
and Net Bonded Debt Per Capita
Last Ten Fiscal Years
General Ratio to Per
Fiscal Assessed Bonded Assessed Capita
Year Population (1) Valuation Debt Valuation Debt
1985 35,950 $ 1,115,557,602 $ 12,613,000 1.13% $350.85
1986 37,950 1,201,896,247 (2) 12,232,000 1.02 322.32
1987 39,170 1,263,426,696 (3) 11,826,000 0.94 301.91
1988 41,306 1,349,398,879 (4) 11,390,000 0.84 275.75
1989 43,900 1,437,338,786 (5) 10,963,000 0.76 249.73
1990 43,933 1,549,703,605 (6) 10,515,000 0.68 239.34
1991 44,450 1,692,505,672 (7) 10,050,000 0.59 226.10
1992 45,263 1,809,620,594 (8) 9,850,000 0.54 217.62
1993 46,219 1,898,988,326 (9) 9,300,000 0.49 201.22
1994 46,579 1,959,261,620 (10) 8,875,000 0.45 190.54
Notes:
(1) Based on est/mated population prov/ded by the State of California.
(2) After deducting $41,990,101 Redevelopment Tax Allocation increment.
(3) After deduc, ting $126,690,993 Redevelopment Tax Allocation increment.
(4) After deducting $221,828,933 Redevelopment Tax Allocation increment.
(5) After deducting $333,719,979 Redevelopment Tax Allocation increment.
(6) After deducting $532,942,779 Redevelopment Tax Allocation increment.
(7) After deducting $758,451,553 Redevelopment Tax Allocation increment.
(8) After deducting $919,469,750 Redevelopment Tax Allocation increment.
(9) After deducting $1,013,256,369 Redevelopment Tax Allocation increment.
(10) After deducting $1,074,705,577 Redevelopment Tax Allocation increment.
Source: City Administrative Services Department
132
CITY OF POWAY TABLE 10
-- Ratio of Debt Service for General Bonded Debt to Total General Expenditures (1)
I. ast Ten Fiscal Years
Total Total Ratio of Debt Service
Fiscal Debt General to Total General
_ Year Principal Interest Service Expenditures Expenditures
1985 $ 75,000 $ 98,600 $ 173,600 $ 10,035,303 1.7
1986 80,000 92,400 172,400 11,548,883 1.5
1987 90,000 85,600 175,600 21,716,598 0.8
1988 95,000 78,200 173,200 24,590,960 0.7
-- 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
-- 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
Note:
(1) Includes all governmental fund types.
Source: City Administrative Services Department
133
CITY OF POWAY TABLE 11
Direct and Overlapping Bonded Debt
June 30, 1994
1993-94 Assessed Valuation: $1,959,261,620 (after deducting $1,074,705.577 redevelopment
incremental valuation)
POPULATION: 46,579
DIRECT AND OVERLAPPING BONDED DEBT: % Applicable Debt 6/30/94
San Diego County Building Authorities 1.486% $ 12,567,444
San Diego County Superintendent or' Schools
Certificates of Participation 1.486 23,751
San Diego County Water Authority 1.541 209,576
Metropolitan Water District 0.243 1,574,033
Poway Unified School District Certificates of Participation 20.235 1,408,331
Escondido Union High School District 0.082 60
San Pasqual Union School District .769 5,532
Poway Municipal Water District 100. 7,890,000
Poway Sewer Improvement District #1 99.995 299,865
Palomar Pomerado Hospital District 9.479 153,086
Palomar Pomerado Hospital District Authority 9.479 770,643
South Poway Community Facilities District #1 100. 30,440,000
City of Poway Community Facilities District #88-1 100. 36,385,000
City of Poway Certificates of Participation 100. 49,445,000
TOTAL DIRECT AND OVERLAPPING BONDED DEBT $ 141,172,321 (1)
Ratios to Assessed Valuation:
Direct Debt {$49,445.000) 2.52%
Total Debt 7.28%
SHARE OF AUTHORIZED AND UNSOLD BONDS:
Metropolitan Water District $ 121,000
Poway Municipal Water District $1,900,000
Poway Municipal Water District, I.D. #2 $1,620,000
Poway Municipal Water District, I.D. #3 $ 140,000
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/94 $0
(1) Excludes tax and revenue anticipation notes, mortgage revenue and tax allocation bonds
and non-bonded capital lease obligations.
Source: California Municipal Statistics, Inc.
134
CITY OF POWAY TABLE 12
Dcmo~aphic Statistics
I~st Ten Fiscal Years
Per
Fiscal Capita Median School Unemployment
Year Population (1) Income (2) Age (2) Enrollment Rate (2)
1985 35,950 $14,175 28 16,543 5.2%
1986 37,950 14,920 28.8 18,311 5.0
1987 39,170 15,490 28.7 18,266 4.4
1988 41,306 15,940 28.7 21,960 4.5
1989 43,900 16,410 28.7 22,018 4.0
1990 43,933 16,900 28.8 24,509 4.3
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
Notes:
-- (1) Based on estimated population provided by the State of California as of
January 1 each year.
(2) Based on census provided by SANDAG.
Source: Compiled by City Administrative Services Deparwaent
135
CITY OF POWAY
Property Value, Construction Activity a~d Bank Deposits
Last Ten Fiscal Years
Property Value (2)
Fiscal Property Value
Year Commercial Residential Exemption Total
1985 $ 17,719,498 $ 1,146,301,697 $ 48,463,593 $ 1,115,557,602
1986 19,624.399 1,255,471,422 50,833,872 1,224,261,949
1987 18,277,448 1,406,216,745 52,653,952 1,371,840,241
1988 24,897,449 1,577,115,148 55,682,234 1,546,330,363
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 2,082,646,384
1991 37,219,612 2,476,632,903 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
Notes:
(1) San Diego Trust and Savings Bank Marketing Department provided actuals for
1989 and 1990. 1982-1988 estimated based on population growth and 1989 actual.
(2) Estimated assessed value from Table 4.
Source: City Planning Department
136
TABLE 13
Commercial Construction Residential Construction
Number Percent Number Percent Bank
of Units Value Change of Units Value Change Deposits (1)
3 $ 1,132,945 -4.2% 519 $ 42,696,415 2.6% $ 126,694,607
8 1,531,180 35.2 607 67,600,177 58.3 126,694,607
11 3,232,746 111.1 626 101,277,886 49.8 137,970,427
37 20,104,235 521.9 391 83,222,526 -17.8 142,247,511
37 15,514,796 -22.8 524 86,511,053 3.9 150,000,000
34 14,150,143 -8.8 325 70,998,2.58 -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 -25.0 163,998,953
4 915,093 -93.4 81 19,829,254 54.1 143,923,796
-- 137
CITY OF POWAY TABLE 14
Miscellaneous Statistics
June 30, 1994
Date of Incorporation December 1, 1980
Form of Government Council -Manager
Area 39 Square Miles
Miles of Streets 153
Number of Street Lights 2,780
Fire Protection:
Number of Stations 2
Number of Staff Firefighters and Officers 32
Number of Volunteer Firefighters 20
Police Protection:
Number of Stations 1
Number of Sworn Officers 44
Number of Clerical Staff 5
Senior Volunteer Patrol 19
Education:
Attendance Centers 26
Number of Classrooms 1,040
Number of Teachers 1,215
Number of Students 27,520
Water:
Number of Consumers 12,432
Average Daily Consumption 9,594,430 gallons
Miles of Water Mains 214
Scwcr:
Sanitary Sewers 130 miles
Storm Sewers 39.5 miles
Building Permits Issued 1,210
Recreation and Culture:
Parks 13 with 340 acres
Community Center 1
Libraries (1) -0-
Employees:
Classified Services (full and part-time) 197
Management 71
Total Employees 268
Note:
(1) Library facilities are provided by the County of San Diego.
Source: Compiled by City Administrative Services Department