12-21-1993 - Comprehensive Annual Financial Report (CAFR)•ity of West Covina
Memorandum
TO
tom: -
SUBJECT:
City Council and City Manager
Finance Department
•c
AGENDA
ITEM NO. J-1
COMPREHENSIVE ANNUAL FINANCIAL DATE December. 21, 1993
REPORT (CAFR)
SUMMARY; -The City CAFR for Fiscal I Year 1992-93, which has been
audited by Moreland & Associates CPA's.,, will,be presented.
BACKGROUND:
The Comprehensive Annual Financial Report for the year ended June 30,
.1993, was prepared in accordance with generally. accepted accounting
principles; established by the Governmental Accounting Standards Board
and guidelines recommended by the Governmental Finance Officers
Association of the. United States :and Canada. Thus, the report
consists of•an introductory section -which familiarizes.readers.with
the organization and operations of the City; a financier] section,
which includes the unqualified opinion of our independent auditors,
oreland & Associates, the general purpose. financial statements, and
required supplementary information; and a. statistical section, which
includes financial data. that presents historical trends and: other
information about the City..
_Governmental, Accounting -Standards require. that the financial
information of all organizations over which the City. exercises.
significant "oversight responsibility" be included in the City's
general purpose financial statements. Accordingly, the CAFR must
include the financial information of the City, the Redevelopment,
Agency of -the City of West Covina, the. Parking Authority of the City
of West Covina, the. West Covina Public Financing Authority and the
City 's share of the_ Los Angeles County -West. Covina.. Civic Center.
Authority., Although these are legally, separate entities, .'these
governmental organizations are to a.certain degree dependent on the
City or directly controlled by the City Council.
ANALYSIS:
The City"s financial position at June 30, 1993, as characterized,by
its balance sheet,, can be summarized as strong'. Total assets
increased from $410.6 million to $419.3 million. Liabilities
increased by $4.8 million and municipal equity has increased from
$186.5 million to $190.8 million.
Total revenues during .the 19931 fiscal year for governmental,
proprietary and.fiduciary fund types increased, by $9,409,912 from the
previous year. Property taxes increased $5,526,428 (55.1%) due mostly
to $3,928,469 in Fashion Plaza Community Facilities District taxes
which represents two years' worth of collections. Other taxes fell
by $987,317 (5.4%) due to shortfalls in sales taxes ($622,214) and
business license' taxes ($263,916) reflecting the poor ,economy.
Revenues from other agencies increased $2,271,150 (63..7%) due mostly
to $1,607,000 in proceeds from the sale of.Proposition A funds for
general fund monies. The gain on sale L of certain- long-term
investments accounted for most of the $1,571,117 (332%) increase in
miscellaneous revenues
Total expenditures during the 1993 fiscal year for governmental,
proprietary and fiduciary fund types increased by $28,577,432. The
Council's steadfast commitment to public safety is reflected in the
$1,155,713 (5.5%) increase in police and fire expenditures. The
$2,944,154 (51.4%) increase in community Services is due mainly to the
exchange of $2,503,077 of Proposition "A" sales tax for $1,607,_000 in
general fund monies. Capital Outlay expenditures. increased $6,429,472
(139.9%) due to the construction activity for the Fashion. Plaza
Memo.to City Council ,
Page 2
expansion. The large increase .in Debt Service expenditures
($16,716,463, 144.4%) reflects the refunding. of the 1986 Tax
Allocation Bonds in January, 1993. Internal Service Fund expenditures
fell $1,983,449 (47.9%) from the prior, year which was inflated by
extraordinary general liability and workers' compensation
self-insurance costs.
A representative from Moreland & Associates is available to make a
short presentation and answer any questions.
In adopting: the CAFR, the Council will be ratifying certain interfund
transfers made in amounts different from those originally budgeted as
follows:
TRANSFER IN TRANSFER OUT
FUND BUDGET ACTUAL BUDGET ACTUAL
-General $, 525,000 $.479,000
Traffic Safety $ 525,000 $ 479,000
Gasoline. Tax $ 691000, $ 172,420
Proposition-111. $ 69.,000 $ 172,420
.Tliese�dev.iations from the budget were caused: by shortfalls, in- Traffic-. .
Satiety- and '. Gas Tax revenues and. were satisfied. with. subsidies: of
General and Proposition ill monies-. respectively. They will be
..approved by the Council if the CAFR is adopted°.
RECOMMENDATION: .
Staff:: -recommends•- that -the City Council receive: and file. the City's
Comprehensive,Annual Financial Report,
Basil Panas.
City.Controller,
REVIEWED & APPROVED:
Abraha W. Koniars
FinaiiCe Director
'BP:AWK/gma
CAFR-199:. AGE
0,
it