HomeMy WebLinkAbout; ; 1985 Building Authority Financial Statements; 1985-06-30"-*#$
DIEHL, EVANS AND COMPANY
A PARTNERSHIP OF ACCOUNTANCY CORPORATIONS
CERTIFIED PUBLIC ACCOUNTANTS
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
FINANCIAL STATEMENTS
WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS
June 30, 1985
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Table of Contents
June 30, 1985
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
"PHILIP H. HOLTKAMP. C.P.A.
•THOMAS M. PERLOWSKI, C.P.A.
"WIN G. PETERS. C.P.A.
"DONALD H. PETERSON, C.RA.
"DONALD E. CALLAHAN, C.RA.
"L. PETER SCHERER. C.P.A.
"RODNEY K. McDANIEL. C.P.A.
"RALPH H. WEINTRAUB, C.P.A.
EDWARD GRODSKY, C.P.A.
ELLIS C. DIEHL, C.P.A. (RETIRED)
BRYN B. EVANS, C.P.A. (RETIRED)
"A PROFESSIONAL CORPORATION
DIEHL, EVANS AND COMPANY
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS
CERTIFIED PUBLIC ACCOUNTANTS
[SO WEST WOODWARD AVENUE
ESCONDIDO, CALIFORNIA 9SO25-999O
(SI9) 741-3141
July 15, 1985
OTHER OFFICES AT-
2965 ROOSEVELT STREET
CARLSBAD, CALIFORNIA 92OOB-2389
(619) 729-2343
I9IO NORTH SUSH STREET
SANTA ANA, CALIFORNIA 92706-2894
(714) 542-4453
ONE CIVIC PLAZA. SUITE 265
NEWPORT BEACH, CALIFORNIA 9266O
(714) 644-6156
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,
1985, 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, 1985 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.
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
COMBINED BALANCE SHEET
ALL GOVERNMENTAL FUND TYPES AND ACCOUNT GROUP
June 30, 1985
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
Account Group
Lease
Payments
Receivable
And Bonds
Payable
$ 3,631 $ 555 $ 30,532
945 29,117
43,396
3,474
$ 271,100
(56,100)
Totals
(Memorandum Only)
1985 1984
$ 34,718 $ 32,103
43,396
33,536
$ 326.650
42,693
35,105
271,100 309,900
(56,100) (69,900)
LIABILITIES:
Revenue bonds payable (Note 3)
Due to other funds
TOTAL LIABILITIES
LIABILITIES AND FUND BALANCE
30,062
30,062
$ 215,000 $ 215,000 $ 240,000
$ 3,474 33,536 35,105
3,474 215,000 248,536 275,105
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
20,439
20,439
$ 1,500
1,500
56,175
56,175
56,175
1,500
20,439
78,114
52,525
1,500
20,771
74,796
50.501 $ 1.500 $ 59.649 $ 215,000
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 BALANCE - ALL GOVERNMENTAL FUND TYPES
For the fiscal year ended June 30, 1985
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, 1984
FUND BALANCE, June 30, 1985
Working
Revenue Capital
$ 13,800
3,779 $
17,579
17,579
22,200
1,151
(41,262)
(17,911)
62
62
1,007
1,007
(945)
945
945
Debt
Service
$ 3,284
3,284
13,800
13,800
[10,516)
14,166
Totals
(Memorandum Only)
19851984
20,925
(2,800)
$ 13,800 $ 15,000
7., 125 7,232
22,232
13,800 15,000
1,007 941
14,807 15,941
6,118 6,291
(25,000)
40,317
(1,151)
22,200
(25,000)
42,413
(42,413)
21,000
(20,000)
33,900
(33,900)
1,000
(332)
20,771
-0-
1,500
3,650
52,525
3,318
74,796
7,291
67,505
See accompanying accountants' report and notes to financial statements.
3
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
STATEMENT OF CHANGES IN BONDS PAYABLE
For the fiscal year ended June 30, 1985
BALANCE AT JULY 1, 1984 $ 240,000
Payments made 25,000
BALANCE AT JUNE 30, 1985 $ 215.000
See accompanying accountants' report and notes to financial statements.
4
*
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
~ June 30, 1985
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 $ 25,000 maturing
in 1985-86.
See accompanying accountants' report.
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1985
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
following 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, 1985 includes:
Type of Coverage
All risk including valuable
papers and rental income
Equipment floater
Excess liability
Excess workers compensation
Earthquake
Boiler and machinery
Comprehensive crime
General and auto liability
Amount
$ 12,532,240
493,725
19,000,000
10,000,000
240,000
1,000,000
500,000
900,000
Term
10/01/84
10/01/84
01/01/85
07/01/84
10/01/84
12/20/84
04/16/85
03/16/85
to 10/01/85
to 10/01/85
to 01/01/86
to 07/01/85
to 10/01/85
to 12/20/85
to 04/16/86
to 03/16/86
See accompanying accountants' report.
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1985
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
SUPPLEMENTARY INFORMATION
w
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
COMBINING BALANCE SHEET
ALL DEBT SERVICE FUNDS
June 30, 1985
Totals
ASSETS:
Cash and savings held by trustee
Due from Revenue Fund
TOTAL ASSETS
Interest Retirement Reserve
$ 2,062
10,388
$ 6,271
18,729
$ 22,199
1985
$ 30,532
29,117
1984
$ 22,942
31,907
LIABILITIES:
Due to Revenue Fund $ 3,474 $ 3,474 $ 2,324
FUND BALANCE (Note 4):
Reserved for payment of bond
principal and interest
TOTAL LIABILITIES AND
FUND BALANCE
$ 12,450 $ 25,000 18,725 56,175 52,525
12,450 $ 25.000 $ 22.199 $ 59.649 $ 54,849
See accompanying accountants' report and notes to financial statements.
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, 1985
REVENUE:
Interest on investments
Interest Retirement Reserve
Totals
1985 1984
$ 862 $ 1,271 $ 1,151 $ 3,284 $ 2,908
EXPENDITURES:
Interest 13,800 13,800 15,000
EXCESS (DEFICIENCY) OF
REVENUE OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Bonds paid
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
(12,938) 1,271 1,151 (10,516) (12,092)
11,588
11,588
(25,000)
28,729
(1,151)
(25,000)
40,317
(1,151)
3,729 (1,151) 14,166
(20,000)
31,907
(1,119)
10,788
EXCESS (DEFICIENCY) OF REVENUE
AND OTHER SOURCES OVER EXPEN-
DITURES AND OTHER USES (1,350)5,000 3,650 (1,304)
FUND BALANCE, July 1, 1984
FUND BALANCE, June 30, 1985
13,800 20,000 18,725 52,525 53,829
12,450 18,725 $ 56,175 52,525
See accompanying accountants1 report and notes to financial statements.
9