HomeMy WebLinkAbout; ; 1983 Building Authority Financial Statements; 1983-06-30BUILDING AUTHORITY OF THE CITY OF CARLSBAD
FINANCIAL STATEMENTS
WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS
June 30, 1983
DIEHL, EVANS AND COMPANY
A PARTNERSHIP OF ACCOUNTANCY CORPORATIONS
CERTIFIED PUBLIC ACCOUNTANTS
2965 ROOSEVELT STREET
CARLSBAD, CALIFORNIA
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
FINANCIAL STATEMENTS
WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS
June 30, 1983
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BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Table of Contents
June 30, 1983
Page
Number
Accountants' Report 1
Combined Balance Sheet - All Governmental Fund Types
and Account Group 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
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ELLIS C. DIEHL. C.P.A. (1925-1956)
BRYN B. EVANS, C.P.A.
PHILIP H. HOLTKAMP. C.P.A.
THOMAS M. PERLOWSKI. C.P.A.
WIN G. PETERS, C.P.A.
DONALD H. PETERSON, C.P.A.
DONALD E. CALLAHAN, C.P.A.
L. PETER SCHERER. C.P.A.
RODNEY K. MCDANIEL, C.P.A.
RALPH H. WEINTRAUB, C.P.A.
DIEHL, EVANS AND COMPANY
A PARTNERSHIP OF ACCOUNTANCY CORPORATIONS
CERTIFIEID PUBLIC ACCOUNTANTS
I2O WEST WOODWARD AVENUE
ESCONDIDO, CALIFORNIA 93025-9990
(619) 741-3141
August 16, 1983
2965 ROOSEVELT STREET
CARLSBAD, CALIFORNIA 93008-2389
(619) 789-2343
I91O NORTH BUSH STREET
SANTA ANA. CALIFORNIA 93706-3894
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,
1983, 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 at June 30, 1983 and the results of its operations and changes
in fund balance 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.
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BUILDING AUTHORITY OF THE CITY OF CARLSBAD
COMBINED BALANCE SHEET
ALL GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS
June 30, 1983
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
$ 2,473 $ 1,510 $ 22,975
43,057 33,490
2,636
Account Group
Lease
Payments
Receivable
And Bonds
Payable
$ 344,900
(84,900)
Totals
(Memorandum Only)
1983 1982
$ 26,958 $ 9,261
76,547
2,636
51,599
36,420
344,900 381,100
(84,900) (101,100)
$ 48,166 $ 1,510 $ 56,465 $ 260,000 $ 366,141 $ 377.280
LIABILITIES AND FUND BALANCE
LIABILITIES:
Revenue bonds payable (Note 3)
Due to other funds
Deferred revenue
TOTAL LIABILITIES
$ 36,000
36,000
$ 2,636
2,636
$ 260,000
260,000
$ 260,000 $ 280,000
2,636 36,420
36,000
298,636 316,420
FUND BALANCE (Note 4):
Reserve for payment of bond
principal and interest
Reserve for working capital
Unreserved
TOTAL FUND BALANCE
TOTAL LIABILITIES AND
FUND BALANCE
53,725
$ 1,500
12,166 10 104
12,166 1,510 53,829
53,725
1,500
12,280
67,505
54,925
1,500
4,435
60,860
48.166 $ 1.510 $ 56.465 $ 260.000 $ 366.141 $ 377.280
See accompanying accountants' report and notes to financial statements.
2
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BUILDING AUTHORITY OF THE CITY OF CARLSBAD
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
For the fiscal year ended June 30, 1983
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, July 1, 1982
FUND BALANCE, June 30, 1983
Revenue
$ 16,200
3,992
20,192
20,192
19,800
2,142
(34,403)
(12,461)
7,731
4,435
$ 12,166
Working
Capital
$ 60
60
903
903
853
853
10
1,500
$ 1,510
Debt
Service
$ 3,696
3,696
16,200
16,200
(843) (12,504)
11,408
(1,096)
54,925
$ 53,829
Totals
(Memorandum Only)
19831982
6,645
60,860
$ 16,200 $ 17,400
7,748 9,791
23,948 27,191
16,200 17,400
903 793
17,103 18,193
6,845 8,998
(20,000)
33,550
(2,142)
19,800
(20,000)
36,545
(36,545)
18,600
(20,000)
39,036
(39,036)
(200) (1,400)
7,598
53,262
$ 67,505 $ 60,860
See accompanying accountants' report and notes to financial statements.
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
STATEMENT OF CHANGES IN BONDS PAYABLE
For the fiscal year ended June 30, 1983
BALANCE AT JULY 1, 1982 $ 280,000
Payments made 20,000
BALANCE AT JUNE 30, 1983 $ 260,000
See accompanying accountants' report and notes to financial statements.
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
June 30, 1983
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 taxes, 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 1983-84.
See accompanying accountants' report.
'%«*' '
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1983
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 100.75%
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, 1983 includes:
Type of Coverage
All risk including valuable
papers and rental
Equipment floater
Excess liability
Excess workers compensation
Earthquake
Boiler and machinery
Comprehensive crime
General and auto liability
Amount
$ 11,496,730
559,850
19,000,000
10,000,000
300,000
1,000,000
500,000
1,000,000
Term
12/1/82
12/1/82
3/16/83
7/1/82
9/22/82
12/20/82
4/16/83
3/16/83
to 12/1/83
to 12/1/83
to 3/16/84
to 7/1/83
to 12/1/83
to 12/20/83
to 4/16/84
to 3/16/84
See accompanying accountants' report.
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1983
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 operat-
ions, 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 aggregation of this data.
See accompanying accountants' report.
7
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SUPPLEMENTARY INFORMATION
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
COMBINING BALANCE SHEET
ALL DEBT SERVICE FUNDS
June 30, 1983
Totals
ASSETS
Cash and savings held by trustee
U.S. Government securities,
at cost
Due from Revenue Fund
TOTAL ASSETS
Interest Retirement Reserve
$ 741 $ 873 $ 21,361
14,353 19,137
1983
$ 22,975
33,490
1982
$ 4,779
18,763
33,180
$ 15,094 $ 20,010 $ 21,361 $ 56,465 $ 56,722
LIABILITIES
Due to Revenue Funds $ 2,636 $ 2,636 $ 1,797
FUND BALANCE (Note 4):
Reserved for payment of bond
principal and interest
Unreserved
TOTAL FUND BALANCE
TOTAL LIABILITIES AND
FUND BALANCE
$ 15,000 $ 20,000 18,725 53,725 54,925
94 10 104
15,094 20,010 18,725 53,829 54,925
$ 15.094 $ 20.010 $ 21.361 $ 56.465 $ 56.722
See accompanying accountants' report and notes to financial statements.
8
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ALL DEBT SERVICE FUNDS
For the fiscal year ended June 30, 1983
REVENUE:
Interest on investments
TOTAL REVENUE
Interest Retirement Reserve
$ 799 $ 755 $ 2,142
799 755 2,142
Totals
1983
3,696
1982
3,696 $ 5,611
5,611
EXPENDITURES:
Interest 16,200 16,200 17,400
EXCESS (DEFICIENCY) OF
REVENUE OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Bonds paid
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
(15,401)755 2,142 (12,504) (11,789)
14,295
14,295
(20,000)
19,255
(745)
(20,000)
33,550
(2,142) (2,142)
(2,142) 11,408
(20,000)
33,180
(4,413)
8,767
EXCESS (DEFICIENCY) OF REVENUE
AND OTHER SOURCES OVER EXPEN-
DITURES AND OTHER USES (1,106)10 (1,096) (3,022)
FUND BALANCE, July 1, 1982
FUND BALANCE, June 30, 1983
16.200 20,000 18,725 54,925 57,947
20.010 $ 18.725 153,829 $ 54.925
See accompanying accountants' report and notes to financial
'i " 9
statements.