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Home My WebLink About; ; 1994 FINANCIAL STATEMENTS; 1995-06-30PARKING AUTHORITY OF THE CITY OF CARLSBAD Financial Statements and Supplemental Data Year Ended June 30, 1995 (With Independent Auditor's Report Thereon) PARKING AUTHORITY OF THE CITY OF CARLSBAD Financial Statements and Supplemental Data Year Ended June 30, 1995 TABLE OF CONTENTS Page Independent Auditors' Report 1 Financial Statements: Combined Balance Sheet - All Governmental Fund Types and Account Group 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 3 Notes to Combined Financial Statements 4 Supplemental Data: Combining Balance Sheet - Debt Service Funds 10 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds 11 Schedule of Insurance Coverage 12 CONRAD CERTIFIED PUBLIC ACCOUNTANTS SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS 1100 MAIN STREET, SUITE C IRVINE, CALIFORNIA 92714 (714) 474-2020 The Board of Directors Parking Authority of the City of Carlsbad Carlsbad, California Independent Auditors' Report We have audited the accompanying component unit financial statements of the Parking Authority of the City of Carlsbad (the Authority), as of and for the year ended June 30, 1995, as listed in the accompanying table of contents. These component unit financial statements are the responsibility of the Authority's management. Our responsibility is to express an opinion on these component unit 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 component unit financial statements referred to above present fairly, in all material respects, the financial position of the Parking Authority of the City of Carlsbad as of June 30, 1995, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion of the component unit financial statements taken as a whole. The combining financial statements and schedule listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the component unit financial statements of the Parking Authority of the City of Carlsbad. Such information has been subjected to the auditing procedures applied in the audit of the component unit financial statements and, in our opinion, is fairly stated in all material respects in relation to the component unit financial statements taken as a whole. August 4, 1995 -1- MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION PARKING AUTHORITY OF THE CITY OF CARLSBAD Combined Balance Sheet - All Governmental Fund Types and Account Group June 30, 1995 Assets and Other Debits Cash and investments (note 2) Net investment in direct financing leases (note 3) Accrued interest receivable Due from other funds (note 5) Amount available in debt service funds Amount to be provided for retirement of general long-term debt Total assets and other debits Governmental Fund Types General $92.953 Debt Service $91,609 88,179 1,344 Account Group General Long-term Debt 34,681 2,140 4,816 129.816 90,319 34.681 125.000 Totals (Memorandum Only) 179,788 34,681 3,484 4,816 90,319 34.681 Liabilities and Fund Balances Liabilities: Due to other funds (note 5) Deferred revenue Revenue bonds payable (note 4) Total liabilities Fund balances: Reserved for debt service Unreserved - undesignated Total fund balances Total liabilities and fund balances $ -4,816 34,681 39.497 125.000 125,000 4,816 34,681 125.000 164.497 92.953 92.953 90,319 90.319 $92.953 129.816 125.000 90,319 92.953 183.272 347.769 See accompanying notes to combined financial statements, -2- PARKING AUTHORITY OF THE CITY OF CARLSBAD Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Year Ended June 30, 1995 General Debt Service Totals (Memorandum Only) Revenues: Lease payments Interest income Total revenues Expenditures: Principal retirement Principal redemption Interest Premium on redemption Return of excess lease payment Administrative Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year $67,955 23.701 91.656 - - - - 3.220 732,398 14.076 746.474 225,000 725,000 78,000 6,750 944_ 800,353 37.777 838.130 225,000 725,000 78,000 6,750 944 3.220 3.220 88.436 1,517 1.517 89,953 3.000 1.035.694 (289.220) 166,294 (167.811) (1.517) (290,737) 381.056 90.319 1.038.914 (200.784) 167,811 (167.811) (200,784) 384.056 183.272 See accompanying notes to combined financial statements. -3- PARKING AUTHORITY OF THE CITY OF CARLSBAD Notes to Combined Financial Statements Year Ended June 30, 1995 (1) Organization and Summary of Significant Accounting Policies The Parking Authority of the City of Carlsbad (the Authority) was created pursuant to the Parking Law of 1949 and was authorized by the City Council on April 19, 1966 for the purpose of providing and expanding public parking facilities for the City of Carlsbad (the City). A five-member commission appointed by the City Council governs the Authority. The Authority is not subject to federal or state income taxes. The Authority is an integral part of the reporting entity of the City. The accounts of the Authority have been included within the scope of the general purpose financial statements of the City because the City Council has financial accountability over the operations of the Authority. Only the accounts of the Authority are included herein; therefore, these financial statements do not purport to represent the financial position or results of operations of the City of Carlsbad. The accounting policies of the Authority conform to generally accepted accounting principles as applicable to governmental units. The following is a summary of the more significant policies: (a) Basis of Presentation The accounts of the Authority are organized on the basis of funds and an account group, each of which is considered to be a separate accounting entity. The operations of each fund and account group are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance, revenues, and expenditures. The various funds and the account group are summarized by type in the financial statements. Fund types and the account group used by the Authority are as follows: GOVERNMENTAL FUND TYPES Governmental funds are used to account for the Authority's expendable financial resources and related liabilities. The measurement focus is upon determination of changes in financial position. The following are the Authority's governmental fund types: General Fund The general fund is the general operating fund of the Authority. It is used to account for all financial resources except those required to be accounted for in another fund. Debt Service Funds Debt service funds are used to account for the accumulation of resources for, and payment of, general long-term debt principal, interest and related costs. PARKING AUTHORITY OF THE CITY OF CARLSBAD Notes to Combined Financial Statements (Continued) (1) Organization and Summary of Significant Accounting Policies. (Continued) (a) Basis of Presentation. (Continued) GENERAL LONG-TERM DEBT ACCOUNT GROUP This account group is used to establish accounting control and accountability for the Authority's general long-term debt. It is used to account for all long-term obligations of the Authority. (b) Measurement Focus and Basis for Accounting Governmental fund types are accounted for on a "spending" measurement focus. Accordingly, only current assets and current liabilities generally are included on their balance sheets, and the reported fund balance provides an indication of available, spendable resources. Operating statements for governmental fund types report increases (revenues) and decreases (expenditures) in available spendable resources. Governmental fund types use the modified accrual basis of accounting. Revenues are recognized when susceptible to accrual (i.e., both measurable and available). Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues that are accrued include interest income. Governmental fund expenditures are recognized when the liability is incurred, except for principal and interest on long-term debt, which is recognized when due. (c) Budgets The Authority does not adopt an annual budget; thus, no budgetary comparisons are presented. (d) Investments Investments are stated at cost or amortized cost which approximates market value. (e) Total Columns Total columns on the combined statements are captioned "Totals (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 balance in conformity with generally accepted accounting principles. Such data is not comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. -5- PARKING AUTHORITY OF THE CITY OF CARLSBAD Notes to Combined Financial Statements (Continued) (2) Cash and Investments Cash and investments held by the Authority at June 30, 1995 consisted of the following: Deposits $ 91,609 Investments 88.179 $179.788 The Authority's investment policy and state statutes authorize the Authority to invest in obligations of the U.S. Treasury, its agencies and instrumentalities, commercial paper rated A-l by Standard and Poor's Corporation or P-l by Moody's Commercial Paper, banker's acceptances with a maximum maturity of 270 days, repurchase and reverse repurchase agreements, certificates of deposit with national and state licensed or chartered banks or federal or state savings and loan associations, money market and mutual funds whose portfolios consist of one or more of the foregoing investments, San Diego County investment pool and the State Treasurer's investment pool. Under the California Government Code, a financial institution is required to secure deposits made by state or local governmental units by pledging securities held in the form of an undivided collateral pool. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. As of June 30, 1995, all of the Authority's deposits were classified as category 1. The bank balance equals the carrying amount. Classification of Investment by Credit Risk As defined in Governmental Accounting Standards Board Statement No. 3, investments in securities are categorized in the following manner: Category 1 - Investments that are insured or registered, which are held by the Authority or its agent in the Authority's name. Category 2 - Uninsured and unregistered investments, for which the securities are held by the counterparty's trust department or agent in the Authority's name. Category 3 - Uninsured and unregistered investments, for which the securities are held by the counterparty or by its trust department or agent, but not in the Authority's name. -6- PARKING AUTHORITY OF THE CITY OF CARLSBAD Notes to Combined Financial Statements (Continued) (2) Cash and Investments. (Continued) Category Carrying Market Type of Investment 1_ 2 3 Amount Value U.S. Treasury notes $ - 64.818 - 64.818 65.000 $ - 64.818 _=_ 64,818 65,000 Investment in money market mutual funds - Pacific Horizons 23.361 23.361 Total investments $88.179 (3) Lease Agreements Leases have been executed between the Authority and the City under which the City agreed to make annual payments of $138,000 and $174,000 for the lease of a parking facility and its subsequent expansion, respectively. The leases have been recorded by the Authority as direct financing leases. Lease payments are due quarterly and terminate on the date of retirement of the related revenue bonds. Under the terms of the lease agreements and the bond resolutions, Debt Service Funds in excess of the next interest and principal payments may be used as follows: First, to maintain a reserve of $68,000 and $156,000, respectively, for the 1969 and the 1981 Bonds. Next, to pay the General Fund for any expenses of the Authority and to maintain the fund balance at $3,000, and then as credits to the City for rentals due under the leases. Due to the excess monies in the 1969 Bond Service Fund during the fiscal year ending June 30, 1995, no lease payments were required from the City under the parking facility lease. A lease payment of $800,353 was made during the fiscal year ending June 30, 1995 from the City under the expansion lease for redemption of all the outstanding 1981 bonds. (4) Revenue Bonds Payable The following is a summary of changes in revenue bonds payable for the year ended June 30, 1995: -7- PARKING AUTHORITY OF THE CITY OF CARLSBAD Notes to Combined Financial Statements (Continued) (4) Revenue Bonds Payable. (Continued) Series 1969 Series 1981 Totals Revenue bonds payable June 30, 1994 $250,000 825,000 1,075,000 Bonds retired/redeemed 125.000 825.000 950.000 Revenue bonds payable, June 30, 1995 $125.000 - 125.000 In February 1995, all the outstanding 1981 bonds were called. The remaining balance of revenue bonds payable represents the 1969 bonds, with the final principal payment of $125,000 due on October 1, 1995. Interest is payable on October 1 and April 1 at 6.4% per annum. At June 30, 1995, the Authority was in compliance with all significant debt covenants. (5) Due To and From Other Funds The following table shows amounts due from other funds within the Authority to other funds within the Authority at June 30, 1995: Interfund Interfund Receivable Payable Bond Service Funds: Series 1969 $4,816 Reserve Funds: Series 1969 - 4.816 Totals $4.816 4.816 -8- SUPPLEMENTAL DATA -9- PARKING AUTHORITY OF THE CITY OF CARLSBAD Combining Balance Sheet - Debt Service Funds June 30, 1995 Assets Cash and investments Net investment in direct financing lease Accrued interest receivable Due from other funds Total assets Bond Service Funds Reserve Funds Series 1969 Series 1981 Series 1969 Series 1981 Totals 70,748 2,068 $17,431 34,681 72 $57.000 72.816 88,179 34,681 2,140 4.816 129.816 Liabilities and Fund Balances Liabilities: Due to other funds $ - Deferred revenue 34.681 Total liabilities 34.681 Fund balances - reserved for debt service 22.319 Total liabilities and fund balances S57.000 4,816 4.816 68.000 72.816 4,816 90.319 129.816 -10- PARKING AUTHORITY OF THE CITY OF CARLSBAD Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds Year Ended June 30, 199S Bond Service Funds Reserve Funds Series 1969 Series 1981 Series 1969 Series 1981 Totals Revenues: Lease payments Interest income Total revenues Expenditures: Principal retirement Principal redemption Interest Premium on redemption Return of excess lease payment Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year $ - 732,398 2.740 635 2.740 733.033 125,000 12,000 137.000 (134.260) (165.254) 5.744 5,744 (3381 5.406 160,550 (1.179)(5.744) (5.744) (128,854) (5,883) 151.173 5.883 68.000 & 22.319 - 68.000 732,398 4.957 14.076 4.957 746.474 225,000 725,000 78,000 6,750 944 407 1.035.694 4.550 (289.220) 166,294 (160.550) (167.811) (160.550) (1.517) (156,000) (290,737) 156.000 381.056 90.319 -11- PARKING AUTHORITY OF THE CITY OF CARLSBAD Schedule of Insurance Coverage Year Ended June 30, 1995 Insurance coverage maintained by the City of Carlsbad with the Authority listed as additional insured at June 30, 1995 includes: Type of Coverage All risk including rental income Mobile equipment Honesty Blanket Bond Valuable papers Service interruption Amount of Coverage $500,000,000 5,000,000 1,500,000 10,000,000 5,000,000 Term 05/15/95 to 05/15/96 05/15/95 to 05/15/96 04/16/95 to 04/16/96 05/15/95 to 05/15/96 05/15/95 to 05/15/96 Effective January 1, 1986, the Authority has not been covered under a liability insurance policy but has been included under the City of Carlsbad's self-insurance program. -12-