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HomeMy WebLinkAbout; ; 1982 Building Authority Financial Statements; 1982-06-30BUILDING AUTHORITY OF THE CITY OF CARLSBAD FINANCIAL STATEMENTS WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS June 30, 1982 DIEHU, EVANS AND COMPANY A PARTNERSHIP OF ACCOUNTANCY CORPORATIONS CERTIFIED PUBLIC ACCOUNTANTS 296S ROOSEVELT STREET CARLSBAD, CALIFORNIA BUILDING AUTHORITY OF THE CITY OF CARLSBADm FINANCIAL STATEMENTS WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS June 30, 1982 ,**»», BUILDING AUTHORITY OF THE CITY OF CARLSBAD Table of Contents June 30, 1982 Page Number Accountants' Report 1 Combined Balance Sheet - All Governmental Fund Types and Account Groups 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types 3 Statement of Changes in Bonds Payable 4 Notes to Financial Statements 5-7 Combining Balance Sheet - All Debt Service Funds 8 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - All Debt Service Funds 9 ELLIS C. DIEHL, C.P.A. (1925-1956) BRYN B. EVANS, C.P-A. PHILIP H. HOLTKAMP. C.P.A. WIN G. PETERS. C.P.A. DONALD H. PETERSON, C.RA. DONALD E. CALLAHAN, C.P.A. L. PETER SCHERER, C.P.A. RODNEY K. McDANIEL. C.P.A. RALPH H. WEINTHAUB. C.P.A. DIEHL, EVANS AND COMPANY A PARTNERSHIP OF ACCOUNTANCY CORPORATIONS CERTIFIED PUBLIC ACCOUNTANTS I2O WEST WOODWARD AVENUE ESCONDIDO, CALIFORNIA 92O25 (71-4) 741-3141 August 10, 1982 OTHER OFFICES AT: 2965 ROOSEVELT STREET CARLSBAD, CALIFORNIA I91O NORTH BUSH STREET SANTA ANA, CALIFORNIA ACCOUNTANTS' REPORT BOARD OF DIRECTORS BUILDING AUTHORITY OF THE CITY OF CARLSBAD CARLSBAD, CALIFORNIA We have examined the combined financial statements of the Building Authority of the City of Carlsbad as of and for the year ended June 30, 1982, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the combined financial statements referred to above present fairly the financial position of the Building Authority of the City of Carlsbad and the results of its operations and changes in fund balances for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination was made for the purpose of forming an opinion on the combined financial statements taken as a whole. The combining financial statements listed in the table of contents are presented for purposes of additional analysis and are not a required part of the combined financial statements of the Building Authority of the City of Carlsbad. The information has been subjected to the auditing procedures applied in the examination of the combined financial statements, and in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. «l BUILDING AUTHORITY OF THE CITY OF CARLSBAD COMBINED BALANCE SHEET ALL GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS June 30, 1982 ASSETS: Cash and savings held by trustee U.S. Government securities, at cost, (approximates market) Due from other funds Lease payments receivable (Note Ib) Unearned lease finance charges TOTAL ASSETS Governmental Fund Types Working Debt Revenue Capital Service $ 4,425 $ 57 $ 4,779 Account Group Lease Payments Receivable Payable 32,836 1,797 1,443 18,763 33,180 $ 381,100 (101,100) Total (Memorandum Only) 19821981 $ 9,261 $ 10,081 51,599 79,181 36,420 381,100 418,500 (101,100) (118,500) $ 39,058 $ 1,500 $ 56.722 $ 280,000 $ 377,280 $ 389,262 LIABILITIES: Revenue bonds payable (Note 3) Due to other funds Deferred revenue TOTAL LIABILITIES LIABILITIES AND FUND BALANCE 34,623 34,623 $ 280,000 $ 280,000 $ 300,000 1,797 36,420 36,000 1,797 280,000 316,420 336,000 FUND BALANCE (DEFICIT) (Note 4): Reserve for payment of bond principal and interest Reserve for working capital Unreserved TOTAL FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE $ 1,500 4,435 54,925 4,435 1,500 54,925 54,925 1,500 4,435 60,860 56,125 (2,863) 53,262 $ 39,058 $ 1.500 $ 56.722 $ 280,000 $ 377,280 $ 389,262 See accompanying accountants' report and notes to financial statements. 2 BUILDING AUTHORITY OF THE CITY OF CARLSBAD COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES For the fiscal year ended June 30, 1982 Totals REVENUE: Lease payments - finance charges Interest on investments TOTAL REVENUE EXPENDITURES: Interest Administrative expense TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Lease payments received - principal Bonds paid Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER SOURCES OVER EXPENDI- TURES AND OTHER USES FUND BALANCE (DEFICIT), July 1 FUND BALANCE, June 30 Working Revenue Capital $ 17,400 4,155 $ 25 21,555 25 793 793 21,555 (768) 18,600 4,413 1,443 (34,623) (11,610) 1,443 Debt Service $ 5,611 5,611 17,400 17,400 (11,789) (20,000) 33,180 (4,413) 8,767 (Memorandum 1982 $ 17,400 $ 9,791 27,191 17,400 793 18,193 8,998 18,600 (20,000) 39,036 (39,036) (1,400) Only) 1981 18,600 7,310 25,910 18,600 734 19,334 6,576 17,400 (20,000) 71,555 (71,555) (2,600) 9,945 (5,510) 675 825 $ 4,435 $ 1,500 (3,022) 57,947 $ 54,925 7,598 3,976 53,262 49,286 $ 60,860 $ 53,262 See accompanying accountants' report and notes to financial statements. 3 V --' BUILDING AUTHORITY OF THE CITY OF CARLSBAD STATEMENT OF CHANGES IN BONDS PAYABLE For the fiscal year ended June 30, 1982 BALANCE AT JULY 1, 1981 $ 300,000 Paynents made 20,000 BALANCE AT JUNE 30, 1982 $ 280,000 See accompanying accountants' report and notes to financial statements. 4 BUILDING AUTHORITY OF THE CITY OF CARLSBAD NOTES TO FINANCIAL STATEMENTS June 30, 1982 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. The financial statements have been prepared on the modified accrual basis. b. The leasing of the facilities to the City has been accounted for as a direct finance lease whereby the long-term lease has been treated as a sale of the facilities to the City and the lease payments receiv- able represent the selling price. Finance charges included in the lease payments are taken into income each year as earned on a declin- ing balance method over the life of the lease. This method has the effect of recording income in an amount that equals bond interest expense each year. 2. HISTORY AND ORGANIZATION: The Building Authority of the City of Carlsbad was organized October 1, 1967 under a joint exercise of powers agreement between the City of Carlsbad and the County of San Diego for the purpose of financing and constructing a civic center building for lease to the City of Carlsbad. Any net earnings or net assets of the Authority after providing for all debts and obligations of the Authority are distributable upon dissolution to only the City of Carlsbad. The Authority leased the site from the City of Carlsbad on November 1, 1967 for the sum of $ 1 which represents the rent for the full term of the lease. The site lease will terminate at the end of the sublease. On November 1, 1967 the Authority entered into a sublease with the City of Carlsbad under the terms of which the Authority agreed to construct the above-mentioned civic center facilities and lease them back to the City for annual rental payments of $ 36,000, payable in advance on July 1. The leaseback will terminate on October 31, 2007 or such earlier time when all debts of the Authority are paid in full. The City also agreed to pay as additional rent all takes, assessments, insurance premiums and administrative costs of the Authority. 3. REVENUE BONDS PAYABLE: To provide funds for the construction of the City Hall, the Authority sold $ 460,000 principal amount of revenue bonds with interest at 6%. The bonds were issued under a trust indenture with Crocker National Bank as Trustee. The bonds mature serially from December 15, 1968 to December 15, 1992 in amounts ranging from $ 5,000 to $ 35,000 with $ 20,000 maturing in 1982-83. See accompanying accountants' report. BUILDING AUTHORITY OF THE CITY OF CARLSBAD NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1982 3. REVENUE BONDS PAYABLE (Continued): Bonds maturing on or after December 15, 1979 are subject to call in whole or in part at the option of the Authority at prices ranging from 100.25% to 104% of the principal amount of the bonds. 4. FUND BALANCES: In accordance with the terms of the indenture, cash balances of the follow- ing funds are restricted to be used for specified purposes as follows: Interest and Retirement Funds - on or before August 1 of each year, a sum sufficient to pay twelve months' interest due on the next succeeding December 15 and June 15 as well as the amount of principal maturing on the next succeeding December 15. Reserve Fund - an amount at least equal to one half maximum annual debt service ($ 18,725) shall be maintained at all times. Any excess shall on June 30 and December 30 of each year be transferred to the Revenue Fund. Moneys in this fund may be used to pay the principal and/or interest on the last maturity of bonds outstanding. Working Capital Fund - an amount necessary to pay administrative expenses and maintain a $ 1,500 balance in this fund. Revenue Fund - amounts accumulated in this fund after meeting requirements of the interest and redemption, reserve and working capital funds shall be declared surplus and may be used to reimburse the City for rent previ- ously paid. 5. INSURANCE: Insurance coverage maintained by the City of Carlsbad with the Authority listed as additional insured at June 30, 1982 includes: Type of Coverage All risk including valuable papers and rental Equipment floater Excess liability and workers compensation Earthquake Boiler and machinery Comprehensive crime General and auto liability See accompanying accountants' report. Amount $ 10,241,525 455,000 24,000,000 300,000 1,000,000 500,000 1,000,000 Term 12/1/81 to 12/1/84 12/1/81 to 12/1/84 7/1/81 to 7/1/82 9/22/81 to 9/22/82 12/20/81 to 12/20/84 4/16/82 to 4/16/83 7/1/81 to 7/1/84 ***»> BUILDING AUTHORITY OF THE CITY OF CARLSBAD NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1982 6. COMPARATIVE DATA: Comparative total data for the prior year have been presented in the ac- companying financial statements in order to provide an understanding of changes in the Authority's financial position and operations. However, comparative (i.e. presentation of prior year totals by fund type) data have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. TOTAL COLUMNS: 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 changes in fund balances in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggrega- tion of this data. See accompanying accountants' report. •**»,. '-..#*' SUPPLEMENTARY INFORMATION BUILDING AUTHORITY OF THE CITY OF CARLSBAD COMBINING BALANCE SHEET ALL DEBT SERVICE FUNDS June 30, 1982 Totals ASSETS Cash and savings held by trustee U.S. Government securities, at cost Due from Revenue Fund TOTAL ASSETS Interest Retirement Reserve $ 1,636 14,564 $ 1,384 $ 1,759 18,763 18,616 1982 $ 4,779 18,763 33,180 1981 $ 6,643 51,304 $ 16,200 $ 20,000 $ 20,522 $ 56,722 $ 57,947 LIABILITIES AND FUND BALANCE Due to other funds TOTAL LIABILITIES $ 1,797 $ 1,797 1,797 1,797 FUND BALANCE: Reserved for payment of bond principal and interest Unreserved TOTAL FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE $ 16,200 $ 20,000 18,725 54,925 $ 56,125 1,822 16,200 20,000 18.725 54,925 57,947 $ 16,200 $ 20,000 $ 20,522 $ 56,722 $ 57,947 See accompanying notes to financial statements. BUILDING AUTHORITY OF THE CITY OF CARLSBAD COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL DEBT SERVICE FUNDS For the fiscal year ended June 30, 1982 Totals REVENUE: Interest on investments TOTAL REVENUE EXPENDITURES: Interest EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Bonds paid Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) Interest Retirement Reserve FUND BALANCE, July 1 FUND BALANCE, June 30 1,626 17,400 14,564 EXCESS (DEFICIENCY) OF REVENUE AND OTHER SOURCES OVER EXPEN- DITURES AND OTHER USES (1,210) 17,410 1,374 [15,774) 1,374 (20,000) 18,616 14,564 (1,384) (10) Reserve 1982 $ 2,611 $ 5,611 2,611 5,611 17,400 2,611 (11,789) (20,000) 33,180 (4,413) (4,413) (4,413) 8,767 (1,802) (3,022) 20,527 57,947 $ 18,725 $ 54,925 1981 $ 4,385 4,385 18,600 (14,215) (20,000) 71,622 (3,570) 48,052 33,837 24,110 $ 57,947 See accompanying notes to financial statements.