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Home My WebLink About4.5 Fiscal Year 1986-87 Audit Report 31030 CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: DECEMBER. 21,• 1987 SUBJECT Fiscal Year 1986-87 Annual Audit EXHIBITS ATTACHED . The 1986-87 Financial Audit and Management letter . RECOMMENDATION Accept the June 30, 1987 Financial Audit and Management Letter and the budget changes reflected therein. FINANCIAL STATEMENT See below: DESCRIPTION Perry Carter, Certified Public Accountant, completed the audit of the financial statements for the Municipal Corporation of the City of Dublin. The combined Statements of Revenue and Expenditures (page 4) show that the City received $10, 617,898 in revenue and incurred expenditures of $9, 805,297 during the last fiscal year . A comparison of the specific budgeted amounts to actual figures for some items in the General Funds may be helpful and are, therefore, shown below: Specific General Funds Revenues Amount Budceted Actual %Difference 1 . Property Taxes $ 524, 1000 $ 559, 454 6.58 2. Sales and Use Tax 4, 500, 000 4, 84-11, 469 7. 63 3. Licenses & Permits 663, 300 586,320 -11. 60 4 . Charges of Services 593,150 593, 407 . 04 General Funds Expenditures 5. General Government $2, 381, 818 $2, 208,131 -7.29 6. Public Safety 1, 760, 04-0 1, 611, 762 -8. 42 7. Transportation 513,154 429, 257 -16. 3: S. Vector Control 6, 000 2,955 -50.25 9 . Community Developme 1, 097, 440 1, 062, 858 -3.15 10. Culture & Recreation 479,114 349, 563 -26. 97 ll . Capital Outlay 43, 795 361734 -16.12 Additional expenditures for governmental functions ( items 5 through 10 above ) other than capital outlay occurred in special revenue and special assessment funds . The total of these expenditures equaled $471, 678 and are shown en page 4 of the audit . The capital outlay portion of expenditures accounted for the single largest difference between the amount budgeted and actual figures . Some of the capital outlay projects responsible for the difference are : • • I 1. •�l( / y.;f �.�'+>! .f :. - Budgeted_ "pent 12. -Sewage Facility ,Expansion. . . .$800,000,':',. , ' ,$ "I.� 00 13. Shannon Park Renovation. . . , . :: 456;130.'; ; , . ;";'. . :.` : . : :00 s';;r .__•;.". , 14 . Kolb`Park. . , . . .. , . .: 817,`300::`. . . . . . . ..702 `877:'00 15. Dublin Blvd. NW Frnt ..Clark. .'.' .1.611-900.' .. 16. Fuel Efficient Trtic .Study. . , � :12; 600: ; . . . _ ..The Civic Center., and Police Vehicles expenditures -,:..were either. capitalized in the Dublin Information Inc. :;�Enterprise Fund,-":.or transferred to the Inter"nal Service Fund .for proper accounting The Auditor also prepared a management: letter.,that Adentified his concerns about matters of internal .control - This getter --is :used to help identify priorities of a financial management .nature for the current year. Staff discussed these concerns "with.'the .auditor;*;. and concur with him. The audit committee reviewed the audit .and the management letter; they may wish to comment regarding these -items. data3 CITY OF DUBLIN FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1987 With Report of Certified Public Accountant Perry H. Carter, Certified Public Accountant TABLE OF CONTENTS Page REPORT OF CERTIFIED PUBLIC ACCOUNTANT 1 FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups 2 Combined Statement of Revenues , Expenditures and Changes in Fund Balances - All Governmental Fund Types 4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis ) and Actual - General , Special Revenue and Capital Projects Fund Types 5 Combined statement of Revenues, Expenses and Changes in Fund Balance - All Proprietary Fund Types 7 Combined Statements Changes in Financial Position All Proprietary Fund Types 8 Notes to Financial Statements 9 FINANCIAL STATEMENTS OF INDIVIDUAL FUNDS GENERAL FUND Balance Sheet 20 Statement of Revenues, Expenditures and Changes in Fund Balance 21 'SPECIAL REVENUE FUNDS Combining Balance Sheet 24 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 26 Perry H. Carter, Certified Public Accountant TABLE OF CONTENTS Page CAPITAL PROJECTS FUNDS Combining Balance Sheet 29 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 39 SPECIAL ASSESSMENT FUNDS Combining Balance Sheet 50 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 51 PROPRIETARY FUND TYPES Combining Balance Sheet 53 Combining Statement of Revenues, Expenses and Changes in Fund Balance 54 Combining Statement of Changes in Financial Position 55 GENERAL FIXED ASSETS ACCOUNT GROUP Schedule of General Fixed Assets by Sources 57 Perry H. Carter, Certified Public Accountant T PERRY H. CAR'_'ER, C. t A. CERTIFIED PUBLIC ACCOUNTANT 1558 B Street, Suite 2 Hayward, California 94541 (415) 537-1835 REPORT OF CERTIFIED PUBLIC ACCOUNTANTS Honorable Mayor, Members of the City Council and City Manager City of Dublin Dublin , California I have examined the combined financial statements of the City of Dublin , California and its combining and individual fund finan- cial statements as of and for the year ended June 30, 1987 . My 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 I considered necessary in the circumstances. In my opinion , the combined financial statements referred to above present fairly the financial position of the City of Dublin, California at June 30, 1987 , and the results of its operations, and changes in financial position of its proprietary fund types for the year then ended, in conformity .with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Also, in my opinion, the combining and individual fund financial statements referred to above pre- sent fairly the financial position of the individual funds of the City of Dublin , California at June 30, 1986 and their results of operations , and changes in position of individual proprietary funds for the year then ended in conformity with generally ac- cepted accounting principles applied on a basis consistent with that of the preceding year . PERRY H . CARTER November 20, 1987 CITY OF DUBLIN COMBINED BALANCE SHEET- - ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1987 Governmental Fund Types Special Capital Debt Special General Revenue Projects Service Assessments ASSETS Cash and investments $ 7,130,060 $ 1 ,829,821 $ 3 $ $ 594,362 Receivables: Taxes 23,713 Accounts Special assessments 587,379 Accrued interest 208,366 Due from other governments 373,066 460,816 Due from other funds 487,504 2,093,693 Prepaid expenses 5,061 Land, machinery and equipment (net of accumulated depreciation-machinery and equipment of $52,975) Construction in progress $ 8.227,770 $ 2,290.637 $ 2,093,696 $ $ 1 .181 ,741 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 475,537 $ 36,743 $ 160,415 $ $ 21 ,293 Accrued wages 23,915 Deposits 40,621 3,125 Due to other funds 469,158 2,112,039 Deferred revenues 26,000 575,971 Bonds payable (Note 4) 770,000 Certificates of participation (Note 9) 540,073 531 ,901 2,272,454 1 ,370,389 FUND EQUITY Contributed capital Investments in general fixed assets Retained earnings: Designated for authorized expenditures/projects Designated for equipment replacement Fund balance: Reserved for vacation benefits 36,203 Designated for street improvement 5,598,555 168,129 Designated for authorized expenditures/projects 2,052,939 1 ,590,607 ( 178,758) ( 188,648) 7,687,697 1 ,758,736 ( 178,758) ( 188,648) TOTAL LIABILITIES AND FUND EQUITY $ 8,22. 7L770 $ 2_,290,637 $ 2,093.696 $ $ 1181 .741 Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -2- CITY OF DUBLIN COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1987 Fiduciary Account Proprietary Fund Types Fund Types Groups Total Internal Trust General (Memorandum Service Enterprise Deposit Fixed Assets Only) ASSETS Cash and investments $ 74,428 $ 8,751 ,606 $ 120,611 $ $ 18,500,891 Receivables: Taxes 23,713 Accounts Special assessments 587,379 Accrued interest 208,366 Due from other governments 833,882 Due from other funds 2,581 ,197 Prepaid expenses 8,616 13,677 Land, machinery and equipment (net of accumulated depreciation-machinery and equipment of $52,975) 146,687 143,911 290,598 Construction in progress 8,132,438 8,132,438 $ 229,731_ $ 16,884,044 $ 120,611 $ 143,911 $ 31 ,172.141 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 2,072 $ 50,901 $ $ $ 746,961 Accrued wages 23,915 Deposits 120,611 164,357 Due to other funds 2,581 ,197 Deferred revenues 601 ,971 Bonds payable (Note 4) 770,000 Certificates of participation (Note 9) 11 ,795,000 11 ,795,000 2,072 11 ,845,901 120,611 16,683,401 FUND EQUITY Contributed capital 88,424 88,424 Investments in general fixed assets 143,911 143,911 Retained earnings: Designated for authorized expenditures/projects 1 ,938,143 1 ,938,143 Designated for equipment replacement 139,235 139,235 Fund balance: Reserved for vacation benefits 36,203 Designated for street improvement 5,766,684 Designated for authorized expenditures/projects 3,100,000 6,376,140 227, 659 5,038,143 143,911 14,488,740 TOTAL LIABILITIES AND FUND EQUITY $ 229,731 $ 166884,044 $ 120.611 $ 143,911 $ 34172,191 Concluded See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -3- CITY OF DUBLIN COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year Ended June 30, 1987 Governmental Fund Types Special Capital Debt Special Total General Revenue Projects Service Assessments (Memorandum Only) REVENUES Taxes $ 5,837,811 $ $ $ $ $ 5,837,811 Licenses and permits 586,320 586,320 Intergovernmental 795,353 1 ,170,101 1 ,956,454 Charges for services 593,407 593,407 Use of money and property 773,939 75,425 34,280 883,644 Fines and forfeits 15,690 76,065 91 ,755 Other revenue 37,890 209,878 254,035 501 ,802 Special assessment 157,704 157,704 8,640,410 1 ,531 ,469 254,035 191 ,984 10,617,898 EXPENDITURES General government 2,208,131 2,208,131 Public safety 1 ,611 ,762 40,064 118,505 1 ,770,331 Highways and streets 429,287 268,388 32,376 730,051 Health and welfare 2,985 12,345 15,330 Community development 1 ,062,858 1 ,062,858 Culture and leisure 349,863 349,863 Capital outlay 36,734 35,000 3,525,791 71 ,208 3,668,733 5,701 ,620 355,797 3,525,791 222,089 9,805,297 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 2,938,790 1 ,175,672 (3,271 ,756) ( 30,105) 812,601 OTHER FINANCING SOURCES (USES) Operating transfers in 992,897 992,897 Operating transfers out ( 886,347) ( 120,000) ( 121 ,657) ( 1 ,128,004) ( 886,347) ( 120,000) 871 ,240 ( 135,107) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES AND OTHER USES 2,052,443 1 ,055,672 (2,400,516) ( 30,105) 677,494 FUND BALANCE TRANSFER (NOTE 12) ( 500,000) 500,000 (3,138,931 ) ( 3,138,931 ) FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) 6,135,254 703,064 1 ,721 ,758 3,138,931 (158,543) 11 ,540,464 FUND BALANCES, END OF YEAR $ 7,687,697 18736 $(_178,758L $ $,(188,648) $ 9,079,027 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -4- CITY OF DUBLIN COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET (GAAP BASIS) AND ACTUAL - GENERAL, SPECIAL REVENUE AND CAPITAL PROJECTS FUND TYPES Year Ended June 30, 1987 General Fund Special Revenue Fund Types Budget Actual Variance Budget Actual Variance REVENUES Taxes $ 5,529,900 $ 5,837,811 $ 307,911 $ $ $ Licenses and permits 663,300 586,320 ( 76,980) Intergovernmental 785,289 795,353 10,064 1 ,986,735 1 ,170,101 ( 816,634) Charges for services 593,150 593,407 257 Fines and forfeits 14,500 15,690 1 ,190 64,000 76,065 12,065 Use of money and property 853,790 773,939 ( 79,851 ) 27,850 75,425 47,575 Other revenue 10,750 37,890 27,140 191 ,400 209,878 18,478 Sale of certicates of participation 8,450,679 8,640,410 189,731 2,269,985 1 ,531 ,469 ( 738,516) EXPENDITURES General government 2,381 ,818 2,208,131 173,687 Public safety 1 ,760,040 1 ,611 ,762 148,278 64,000 40,064 21,936 Highways and streets 513,154 429,287 83,867 306,750 268,388 38,362 Health and welfare 6,000 2,985 3,015 12,345 12,345 Community development 1 ,097,440 1 ,062,858 34,582 Culture and recreation 479,114 349,863 129,251 Capital outlay 43,795 36,734 7,061 35,000 35,000 6,281 ,361 5,701 ,620 579,741 418,095 355,797 62,298 REVENUES GREATER (LESS) THAN EXPENDITURES 2,169,318 2,938,790 769,472 1 ,851 ,890 1 ,175,672 ( 676,218) OTHER FINANCING SOURCES (USES) Operating transfers in 832,500 ( 832,500) Operating transfers .out (5,095,151 ) ( 886,347) 41208,804 (2,542,640) ( 120,000) 2,422,640 (4,262,651 ) ( 886,347) 3,376,304 (2,542,640) ( 120,000) 2,422,640 REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES AND OTHER USES (2,093,333) 2,052,443 4,145,776 ( 690,750) 1 ,055,672 1 ,746,422 FUND BALANCE TRANSFER ( 500,000) ( 500,000) FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) 4,641 ,270 6,135,254 1 ,493,984 135,476 703,064 567,588 FUND BALANCES, END OF YEAR $ 2,047.,_937 $ 7,687,697 $ 5,639,760 $( 555.274) $ 1 75__ 8,736 $ 2,314,010 Continued See "ccompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -5- CITY OF DUBLIN COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET (GAAP BASIS) AND ACTUAL - GENERAL, SPECIAL REVENUE AND CAPITAL PROJECTS FUND TYPES Year Ended June 30, 1987 Capital Project Fund Types Budget Actual Variance REVENUES Taxes $ $ $ Licenses and permits Intergovernmental Charges for services Fines and forfeits Use of money and property Other revenue 490,100 254,035 ( 236,065) Sale of certicates of participation 490,100 254,035 ( 236,065) EXPENDITURES General government Public safety Highways and streets Health and welfare Community development Culture and recreation Capital outlay 6,905,009 3,525,791 3,379,218 6,905,009 3,525,791 3,379,218 REVENUES GREATER (LESS) THAN EXPENDITURES (6,414,909) (.3,271 ,756) 3,143,153 OTHER FINANCING SOURCES (USES) Operating transfers in 5,593,340 992,897 (4,600,443) Operating transfers out ( 121 ,657) ( 121 ,657) 5,593,340 871 ,240 (4,722,100) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES AND OTHER USES ( 821 ,569) (2,400,516) (1 ,578,947) FUND BALANCE TRANSFER 500,000 500,000 FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) 123,318 1 ,721 ,758 1 ,598,440 FUND BALANCES, END OF YEAR $( 198,251 ) $( 178,758) $ 19.493 Conclusion See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -6- CITY 07 DUBLIN CO�iBJ.NED STATEMENT OF REVENUES , EXPENSES AND CH NIGES IN FUND BALANCES ALL PROPRIETARY FUND TYPES Year Ended June 30 , 1987 REVENUES Use of money and property $ 437, 864 Rent income 1 , 379, 851 Equipment usage 87 , 769 1 ,905 ,484 EXPENSES 528 , 995 OPERATING INCOME 1 , 376 ,489 . NONOPERATING REVENUES ( EXPENSE) Op?rating transfer in 135 , 107 NET INCOME 1 , 511 , 596 FUND BALANCE TRANSFER (NOTE 12 ) 3, 138, 931 FUND BALANCE, BEGINNING OF YEAR 615, 275 FUND BALANCE, END OF YEAR $ 5, 265 , 802 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -7- CITY OF DUBLIN COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY FUND TYPES Year Ended June 30, 1987 SOURCES OF WORKING CAPITAL Net income $ 1, 511 , 596 Add back items not requiring working capital - Depreciation 52, 975 1 , 564, 571 Fund balance transfer 3, 138, 931 4,703, 502 USES OF WORKING CAPITAL Increase in construction , in-progress 1 , 735 , 020 Fixed assets, acquired 136, 353 Certificate of participation payment 173, 000 2 ,044, 373 INCREASE IN WORKING CAPITAL $ 21659, 129 ELEMENTS OF NET INCREASE (DECREASE ) IN WORKING CAPITAL Cash $ 2, 683, 028 Accounts payable ( 32 , 515) Prepaid expenses 8, 616 NET INCREASE IN WORKING CAPITAL $ 21659, 129 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -8- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1987 NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Dublin was incorporated February 1, 1982 under the Municipal Organization Act of 1977 . The City operates under a Council-Manager form of government and provides services to resi- dents primarily by contracting with other governmental agencies and private contractors. Financial statements in this report include the financial activi- ties of the City of Dublin, and a public assistance non-profit corporation , Dublin Information, Inc. This presentation is re- quired as the City exercises significant control over the corpor- ation . No other entities have been included or excluded, from these financial statements. The accounting policies of the City of Dublin conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies: A -- FUND ACCOUNTING The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities , fund equity, revenues, and expenditures, or expen- ses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending acti- vities are controlled. The funds required by the City of Dublin are grouped, in the financial statements of this report, into three broad fund types and one account group as follows: GOVERNMENTAL FUNDS General Fund - The general fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes. Capital Projects Funds - Capital projects funds are used to account for financial resources to be used for the acquisition or Perry H. Carter, Certified Public Accountant -9- CITY OF DUBLIN NOTEES TO FINANCIAL STATEMENTS June 30, 1987 construction of major capital projects (other than those financed by proprietary funds, special assessment funds and special reve- nue funds ) . Debt Service Funds - Debt service funds are established to account for the accumulation of resources for, and the payment of , interest and principal on long-term debt. Special Assessment Funds - Special assessment funds are used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. Proprietary Funds Enterprise Fund - Enterprisee Funds are used to account for operations (a ) that are financed and operated in a manner similar to private business enterprises - where the intent of the govern- ing body is that the costs (expenses, including depreciation ) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or ( b) where the governing body has decided that periodic determina- tion of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance , public policy, management control , accountability or other purposes. Internal Service Fund - Internal service funds are used to ac- count for operations where services are provided to other depart- ments on a cost reimbursement basis Fiduciary Fund Trust Deposit Fund - Trust deposit funds are used to account for assets held by the city as trustee to be expended or invested in accordance with the conditions of the trust agreement. Account Groups - General fixed assets are recorded as expendi- tures in the General Fund, Special Revenue Funds, and the Capital Projects Funds at the time of purchase. Such assets are accounted for in the General Fixed Assets account group. General long-term debt expected to be financed from governmental funds is accounted for in the General Long-Term Debt Account Group. Depreciation is not provided for in the General Fixed Assets account group. All fixed assets are valued at historical cost. Donated assets are valued at their estimated fair market value at the date donated. Perry H. Carter, Certified Public Accountant -10- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30 , 1987 The City has elected not to capitalize "improvements other than buildings" which would consist of nonenterprise expenditures relating to roads, bridges, curbs, gutters, streets, sidewalks, drainage systems, and lighting systems. An account group is not a fund. Consequently, it is concerned with the measurement of financial position only and not the results of operations . B -- BASIS OF ACCOUNTING Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements . Basis of accounting relates to the timing of the measurements made , regardless of the measurement focus applied . All governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting. Their reve- nues are recognized when they become measurable and available as net current assets. Expenditures are generally recognized under the modified accrual basis of accounting which is when the re- lated fund liability is incurred. An exception to this rule is interest and principal on long-term debt, which is recognized when due. Proprietary funds are accounted for on the accrual basis of accounting . C -- BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1 . Prior to June 30, the City Manager submits to the City Coun- cil a proposed operating budget for the fiscal year commencing the following July 1. The operating budget in- cludes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. Prior to July 1, the budget is legally enacted through pas- sage of a resolution . 4 . The City Manager is authorized to transfer budgeted amounts within an activity, within any fund; however, any other budget transfer must be approved by the City Council. Perry H. Carter, . Certified Public Accountant -11- CITY OF DUBLIN NOTE, TO FINANCIAL STATEMENTS June 30 , 1937 5. Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds. 6. Budgets for the general, special revenue, and capital pro- jects funds are adopted on a basis consistent with generally accepted accounting principles (GAAP ) . D -- INVESTMENTS Investments are stated at cost or amortized cost , which approxi- mates market. E -- PROPERTY TAXES Property taxes in the State of California are limited by the State Constitution to one percent of assessed value plus an additional amount for general obligation debt, if applicable . The State has determined the method of distribution of property taxes among the various receiving entities . Alameda County assesses properties, bills for, collects and dis- tributes property taxes for the City. The valuation and lien and levy date for secured and unsecured taxes is March 1 . Property taxes are recognized as revenue in the year of levy with appropriate accruals made at year end in accordance with the modified accrual basis of accounting. F -- TOTAL COLUMNS ON COMBINED STATEMENT 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 finan- cial position , results of operations, or changes in financial position in conformity with generally accepted accounting princi- ples. Neither is such data comparable to a consolidation. .Interfund eliminations have not been made in the aggregation of this data . NOTE 2 --. CASH AND INVESTMENTS The City maintains a cash and investment pool that is available Perry H. Carter, Certified Public Accountant -12- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30 , 1987 to all funds . Each fund type ' s portion of the pool is designated as "Cash and investments" on the combined balance sheet. At June 30 , 1987 the City ' s funds were invested in certificates of deposit, and the Local Agency Investment Fund ( the State Treasurer' s investment pool ) only. Of the cash and investments at June 30,. 1987 $10, 861 ,000 was invested with the Local Agency Investment Fund which is not insured. The remaining balance consisting of certificates of deposit and demand deposits was covered by federal deposit insur- ance , except for $600, 000. Uninsured amounts were collateralized by the holding institution , in accordance with California law. NOTE 3 -- DUE FROM OTHER GOVERNMENTS Amounts due from other governments at June 30 , 1987 consist of the following : Special General Revenue Fund Fund Total Documentary transfer tax $ 6, 312 $ $ 6, 312 Motor vehicle . in-lieu tax 55 , 771 55 , 771 Sales tax 304 , 500 304, 500 Federal aid 460, 498 460 ,498 Other 6, 483 318 6, 801 $ 373 , 066 $ 460, 816 $ 833 , 882 NOTE 4 -- SPECIAL ASSESSMENT BONDS PAYABLE The following is a schedule of the special assessment bonds of the City of Dublin. These bonds were issued in 1986. Perry H. Carter, Certified Public Accountant -13- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30 , 1987 Interest Outstanding Maturities Date of Issue Rate* June 30, 1986 July 2, August 15 , 1986 7.00 % $ 55,000 1987 7. 50 55, 000 1988 8.00 55,000 1989 8. 25 55, 000 1990 8. 50 55, 000 1991 8. 75 55, 000 1992 9.00 55, 000 1993 9. 00 55,000 1994 9. 25 55 ,000 1995 9. 50 55 ,000 1996 9. 75 220 , 000 1997 through 2000 $ 770,000 *Interest payable semiannually on July and January 2 in each year. NOTE 5 -- CHANGES IN GENERAL FIXED ASSETS A summary of changes in general fixed assets follows: Balance Balance July 1 , June 30, 1986 Additions 1987 Equipment $ 124,482 $ 19,429 $ 143,911 $ 124,482 $ 19 ,429 $ 143 , 911 NOTE 6 -- OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES Generally accepted accounting principles require disclosure , as part of the Combined Statements, of certain information concern- ing individual funds including: Summary disclosures of debt service requirements to maturity for all types of outstanding debt. This requirement is met by Note 4 and Note 9. Summary disclosures of changes in general fixed assets by major asset class. This requirement is met by Note 5. Perry H.. Carter, Certified Public Accountant -14- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1987 Individual fund interfund receivable and payable balances. Interfund balances at June 30, 1987 consist of the following: Interfund Interfund Receivable Payable General Fund $ 487, 504 $ Capital Projects Fund 2, 093, 693 2, 112 ,039 Federal Aid Urban Fund 460,498 CDBG Fund 8, 660 $ 21581 , 197 $ 2 , 581 , 197 Segment information for Enterprise Funds: The City maintains one Enterprise Fund , Dublin Information , Inc . Required balance sheet information consequently, is reported in the combined financial statements. Segment information with respect to operations is as follows: OPERATING REVENUES $ 1, 815 , 555 EXPENSES Depreciation 52 , 975 Operating 320, 219 443 , 194 NET INCOME 1 , 372, 361 FUND BALANCE TRANSFER 3, 138, 931 FUND BALANCE, BEGINNING OF PERIOD 526 ,851 FUND BALANCE , END OF PERIOD $5, 038, 143 NOTE 7 -- MISCELLANEOUS REVENUES The schedule below sets out the detail of miscellaneous revenues for the year ended June 30, 1987: Revenues General Fund $ 37 , 890 Special Revenue Fund: Park dedication fees 209, 878 Capital Projects Fund: Reimbursements 254,034 $ 501 , 802 Perry H. Carter, Certified Public Accountant -15- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1987 NOTE 8 -- RETIREMENT COMMITMENTS Substantially all of the City ' s employees are covered by the Public Employee ' s Retirement System (PERS) . PERS is a defined benefit, contributory retirement plan administered by the State of California . Total pension expense and the amount funded for the year ended June 30, 1987 was $36, 919. NOTE 9 -- CERTIFICATES OF PARTICIPATION Certain land owned by the City of Dublin is leased to the Dublin Information , Inc . , a nonprofit corporation organized under the General Nonprofit Corporation Law of the State of California . The corporation will lease back to the City the facilities which are to be constructed on the site . Dublin Information, Inc. will finance the facility construction through Certificates of Parti- cipation , which were issued in 1985/86. The lease term is from the commencement date , December 18, 1986 through February 1 , 2010. Upon termination of the lease , title to the facilities will revert to the City. The Certificates of Participation are reported as debts of Dublin Information, Inc . which is reported as a proprietary fund type in the financial statements of the City. The terms of repayment are as follows: Date issued: 12/18/85. Interest due: 2/1 and 8/1 of each year. Principal Interest Principal Interest Year Amount Rate Year Amount Rate 1988 130, 000 7. 25 % 1994 $ 280,000 8. 60 1989 195 , 000 7. 50 1995 305,000 8. 80 1990 205 , 000 7. 75 1995 335, 000 9.00 1991 225 , 000 8.00 1997 365,000 9.00 1992 240,000 8. 20 1998 395,000 9.00 1993 260,000 8.40 1999 430, 000 9.00 2010 8, 380, 000 9. 25 $ 11 , 795,000 NOTE 10 -- CONTINGENT LIABILITIES The City participates in certain grant programs. These programs are subject to program compliance audits and/or financial audits by the grantor or their representatives. Performance of such Perry H. Carter, Certified Public Accountant -16- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1987 audits in the future may give rise to findings which will result in a liability on the part of the City. The City is of the opinion that any liability arising from a grantor ' s audit will be immaterial. NOTE 11 -- CHANGES IN FUND BALANCES , BEGINNING OF THE YEAR During fiscal year 1986/87 , the following corrections were made to certain fund balances: Special General Revenue BALANCES, AS PREVIOUSLY REPORTED $ 6, 123, 739 $ 704, 578 Corrections -add (deduct ) : Reserved for accrued vacation benefits 11 , 504 Payment of State Gas Tax Fund ( 1 , 514 ) Other 11 BALANCES , AS RESTATED $ 6, 135 , 254 $ 703 , 064 NOTE 12 -- FUND BALANCE TRANSFER During 1986/87 the fund balance of the Debt Service Fund of $3 , 138 , 931 was transferred to the Enterprise Fund (Dublin Infor- mation , Inc . ) Also, $500, 000 was transferred from the General Fund to the Capital Projects Fund. NOTE 13 -- FUND RECLASSIFICATION During the year , the City determined that Dublin Information, Inc. , which had been classified as an Internal Service Fund, would more properly be classified as an Enterprise Fund. The fund balance of Dublin Information, Inc. of $ 526, 851 was accord- ingly reclassified as follows: Internal Service Enterprise Fund Fund BALANCE AT JUNE 30, 1986 $ 526, 851 $ Reclassification (526, 851 ) 526, 851 BALANCE AFTER RECLASSIFICATION $ $ 526, 851 Perry H. Carter, Certified Public Accountant -17- CITY OF DUBLIN NOT:::S TO FINANCIAL STATEMENTS June 30, 1987 NOTE 14 -- LITIGATION The City was involved in several lawsuits at June 30, 1987. City Management estimates that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the financial statements of the City. NOTE 15 -- SUBSEQUENT EVENTS Subsequent to year end, (June 30, 1987 ) the City of Dublin en- gaged special legal counsel and an investment banker to aid the Cite in refinancing the debt associated with the Civic Center and related Capital Projects. Perry H. Carter, Certified Public Accountant -18- COMBINING AND INDIVIDUAL FUND STATEMENTS AND GENERAL FIXED ASSETS Perry H. Carter, Certified Public Accountant CITY OF DUBLIN GENERAL FUND June 30, 1987 The purpose of the General Fund is to account for resources traditionally associated with City Government, which are not required to be accounted for in another fund. Revenues and expenditures of the Federal Revenue Sharing Program are accounted for in this fund. See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -19- CITY OF DUBLIN GENERAL FUND BALANCE SHEET June 30, 1987 ASSETS Cash and investments $ 7 , 130, 060 Receivables: Property taxes 23, 713 Accounts Accrued interest 208, 366 Due from other governments 373, 066 Due from other funds 487, 504 Prepaid expenses 5 ,061 TOTAL ASSETS $ 8 227 770 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 475 , 537 Accrued wages 23, 915 Deposits 40,621 540,073 FUND EQUITY Fund balance : Reserved for vacation benefits 36 , 203 Designated for street improvement 5, 598, 555 Designated for authorized projects 2, 052 , 939 7 ,687 , 697 TOTAL LIABILITIES AND FUND EQUITY $ 81227 , 770 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -20- CITY OF DUBLIN GENERAL FUND STATEMENT OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended June 30, 1987 REVENUE Taxes: Property tax $ 559,454 Sales and use tax 4, 863 ,469 Real property transfer tax 67 ,436 Cable TV franchise tax 68,010 Electric franchise tax 114 , 820 Gas franchise tax 29, 003 Transient occupancy tax 78, 461 Garbage franchise tax 57 , 158 5 , 837 , 811 Licenses and permits: Building permits $ 576 , 515 Encroachment fees 3 , 738 Animal permits 5, 375 692 586 , 320 Intergovernmental : Trailer coach in-lieu tax 4 , 128 Motor vehicle in-lieu tax 584, 192 Cigarette tax 97 , 629 Off highway motor vehicle in-lieu tax 402 Homeowner ' s property tax relief 16,051 Revenue sharing 48, 339 SB 30 allocation 44, 612 795 , 353 Charges for services: Zoning fees 82 , 712 Plan checking fees 418, 142 Special police fees 6,080 Park and recreation fees 62, 221 Sales of maps and documents 6,443 Other charges 17 , 809 593 ,407 Fines and forfeits 15, 690 Use of money and property: Interest 735, 537 Rents and concessions 38,402 773, 939 Miscellaneous 37, 890 TOTAL REVENUE 8,640,410 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -21- CITY OF DUBLIN GENERAL FUND STATEMENT OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended June 30, 1987 EXPENDITURES General government: Personal services $ 279, 589 Services and supplies 1, 890,698 Contract services 37 , 844 $ 2, 208, 171 Public safety: Personal services 11 , 339 Services and supplies 97 , 339 Contract services 1 , 503,084 1 , 611 , 762 Highways and streets: Personal services 26,421 Services and supplies 25, 753 Contract services 377 , 113 429, 287 Health and welfare vector control 2, 985 Community development: Personal services 210, 447 Services and supplies 161 ,459 Contract services 690, 952 1 , 062, 858 Culture and leisure : Personal services 173 , 783 Services and supplies 44, 297 Contract services 131 , 733 349, 863 Capital outlay 36, 734 5 , 701 ,620 EXCESS OF REVENUES OVER EXPENDITURES 2, 938, 790 OTHER FINANCING SOURCES (USES ) Operating transfers in Operating transfers out 886, 347 EXCESS OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES ) 2,052,443 FUND BALANCE TRANSFER (NOTE 12) ( 500,000) FUND BALANCE , BEGINNING OF YEAR (NOTE 11 ) 6, 135, 254 FUND BALANCE, END OF YEAR $ 71687,697 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -22- SPECIAL REVENUE FUNDS Perry B. Carter, Certified Public Accountant CITY OF DUBLIN SPECIAL REVENUE FUNDS June 30 , 1987 Traffic Safety Fund - Resources of this fund are required to be used exclusively for official traffic control devices, maintenance thereof , equipment and supplies for traffic law en- forcement and maintenance , improvement, or construction of public streets, bridges and culverts within the City. State Gasoline Tax Fund - Resources of this fund are required to be used primarily for the research, planning, construction , im- provement, maintenance and operation of public streets and high- ways , and for certain other transportation related activities. Federal Aid Urban Fund - Resources of this fund are required to be used for improvements or restoration of roads, streets , fringe parking , and public transportation facilities within the boundaries of the local agency. Transportation Fund - Resources of this fund are required to be used for providing paratransit services to Dublin residents. CDBG Fund - Community development block grants are accounted for in this fund. The resources of this fund are required to be used to meet program objectives which includes rehabilitation of existing housing , construction of public improvements, and the development of new affordable housing . . Park Dedication Fund - Resources of this fund are required by State law to be used for the purpose of developing new or reha- bilitating existing park or recreational facilities to serve the subdivision for which in-lieu fees were received . Disaster Assistance Fund - Resources of this fund is provided by the State for flood damage suffered by the City. See accompanying notes to financial .statements. Perry H. Carter, Certified Public Accountant -23- CITY OF DUBLIN SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1987 Disaster Traffic Safety State Transportation Assistance Fund Gasoline Tax Fund Fund ASSETS Cash and investments $ 49,231 $ 190,287 $ 6,173 $ Due from other governments 318 TOTAL ASSETS $ 49,231 $ 190,605 $ $ LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 8,094 $ 22,476 $ 6,173 $ Due to other funds Deferred revenue 8,094 22,476 6,173 FUND EQUITY Fund balance 41 ,137 Designated for street improvements 168,129 41 ,137 168,129 TOTAL LIABILITIES AND FUND EQUITY $ 49,231 $ 190,605 $ Continued See accompanying notes to financial statements. Perry H, Carter, Certified Public Accountant -24 CITY OF DUBLIN SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1987 Federal Park Aid Urban Dedication Highway Fund CDBG Fund Fund Total ASSETS Cash and investments $ 797,875 $ $ 786,255 $ 1 ,829,821 Due from other governments 460,498 460,816 TOTAL ASSETS $ 1 ,258,373 $ $ 786_255 $ 2,290,637 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ $ $ $ 36,743 Due to other funds 460,198 8,660 469,158 Deferred revenue 26,000 26,000 460,498 34,660 531 ,901 FUND EQUITY Fund balance 797,875 (34,660) 786,255 1 ,590,607 Designated for street improvements _ 168,129 797,875 (34,660) 786,255 1 ,758,736 TOTAL LIABILITIES AND FUND EQUITY $ 1 ,258,373 $ $ 786.255 $ 22 290,637 Concluded See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -25- CITY OF DUBLIN SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987 Disaster Traffic Safety State Transportation Assistance Fund Gasoline Tax Fund Fund REVENUES Intergovernmental FAU grant $ $ $ $ Gasoline tax 274,541 TDA Act funds 12,345 Fines and forfeits Vehicle code fines 76,065 Use of money and property Interest 1 ,562 17,560 All other Park dedication fees flood grant 77,627 292,101 12,345 EXPENDITURES Public safety Service and supplies 19,319 Contract services 20,745 Highways and streets Contract services 268,388 Capital outlay 35,000 Health and welfare Contract services 12,345 40,064 303,388 12,345 REVENUES IN EXCESS OF (LESS THAN) EXPENDITURES 37,563 ( 11 ,287) OTHER FINANCING SOURCES (USES) Operating- transfers out REVENUES IN EXCESS OF (LESS THAN) EXPENDITURES AND OTHER FINANCING USES 37,563 ( 11 ,287) FUND BALANCE TRANSFER (1 ,514) FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) 3,574 179,416 1 ,514 FUND BALANCES, END OF YEAR $ 41 ,137 $ 168.129 $ $ Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -26- CITY OF DUBLIN SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987 Federal Park Aid Urban Dedication Highway Fund CDBG Fund Fund Total REVENUES Intergovernmental FAU grant $ 797,875 $ $ $ 797,875 Gasoline tax 274,541 TDA Act funds 12,345 CDBG Grant funds 85,340 85,340 Fines and forfeits Vehicle code fines 76,065 Use of money and property Interest 56,303 75,425 All other Park dedication fees and flood grant 209,878 209,878 797,875 85,340 266,181 1 ,531 ,469 EXPENDITURES Public safety Service and supplies 19,319 .Contract services 20,745 Highways and streets Contract services 268,388 Capital outlay 35,000 Health and welfare Contract services 12,345 355,797 REVENUES. IN EXCESS OF (LESS) THAN EXPENDITURES 797,875 85,340 266,181 1 ,175,672 OTHER FINANCING SOURCES (USES) Operating transfers out 120,000 120,000 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES AND OTHER FINANCING USES 797,875 ( 34,660) 266,181 1 ,055,672 FUND BALANCE TRANSFER ( 1 ,514) FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) 520,074 704,578 FUND BALANCES, END OF YEAR $ X75 $(. 34.660) $ 786.255 $ 1 ,758,736 Concluded See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -27- CAPITAL PROJECTS FUNDS Perry H. Carter, Certified Public Accountant CITY OF DUBLIN CAPITAL PROJECTS FUNDS June 30 , 1987 Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities or projects. See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -28- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBIN?Nr_, BALANCE SHEET June 30, 1987 Intersection Street Traffic Street City Modification Name and Signals AVB/ Improvements Sewage Base Dublin Blvd./ Approach Stagecoach Amador Valley Facility Map Dougherty Road Siqns Road Boulevard Expansion ASSETS Cash $ $ $ $ $ $ Due from others 183 20,143 1 ,701 12,689 96,367 758,722 TOTAL ASSETS $ 183 $ 2Q,=1==43 $ 1 ,701 $ 12,689 $ 96 3 7 $ 758.722 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ $ $ $ $ Due to other funds TOTAL LIABILITIES FUNDS BALANCES Designated for authorized projects 183 20,143 1 ,701 12,689 96,367 758,722 TOTAL LIABILITIES AND FUND BALANCES $ 183 $ 20,143 $ 1 ,701 $ 12,689 $ 96,367 $ 758,722 Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -29- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1987 Village Annual City Civic Defective Parkway Street Bus Entrance Center Sidewalk Landscape Overlay Shelters Signs Project Repair and Sidewalk Program ASSETS Cash $ $ $ $ $ $ Due from others 30,316 22,928 557,428 2,490 TOTAL ASSETS $ 30,316 $ 22,928 $ 557,428 $ $ 2,490 $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ $ $ 29,264 $ $ Due to other funds 13,931 80,232 TOTAL LIABILITIES 43,195 80,232 FUNDS BALANCES Designated for authorized projects 30,316 22,928 557,428 (43,195) 2,490 (80,232) TOTAL LIABILITIES AND FUND BALANCES $ $ 22,928 $ 557.428 $ $ 2,490 $ Continued Sec• accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -30- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1987 Downtown Word Downtown Dublin Street Processing Improvement Boulevard Lighting Kolb Park Equipment Study Underground Additions Improvements ASSETS Cash $ $ 3 $ $ $ Due from others 130,790 171 ,789 TOTAL ASSETS $ $ 3 $ 130.790 $ 171 .789 $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ $ $ $ 3,624 Due to other funds 15,819 6,965 110,748 TOTAL LIABILITIES 15,819 6,965 114,372 FUNDS BALANCES Designated for authorized projects (15,819) (6,962) 130,790 171 ,789 (114,372) TOTAL LIABILITIES AND FUND BALANCES $ $ 3 $ 130,790 $ 171 ,789 $ Continued See accompanying notes to financial statements. Perry H, Carter, Certified Public Accountant -31- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1987 San San Traffic Signal Ramon Road Ramon Road Alcosta/San Traffic Signal Traffic Signal Phase II Phase III Ramon Road Dublin/Sierra Interconnect ASSETS Cash $ $ $ $ $ Due from others 17,071 34,966 TOTAL ASSETS $ $ $ 17,071 $ $ 34 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 14,818 $ $ $ 716 $ 91 ,403 Due to other funds 1 ,293,705 40,150 138,599 TOTAL LIABILITIES 1 ,308,523 40,150 139,315 91 ,403 FUNDS BALANCES Designated for authorized projects (1 ,308,523) (40,150) 17,071 (139,315) (56,437) TOTAL LIABILITIES AND FUND BALANCES $ coat inuC-rl See accoiuj-,anying notes to financial statements. Perry H. Carter, Certified Public Accountant -32- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1987 Median Landscape DSRSD City Dublin Village Parkway Services Copy Storage Boulevard to Kimball Study Machine Yard Extension ASSETS Cash $ $ $ $ $ Due from others 51 ,166 2,507 129 38 2,784 TOTAL ASSETS $ 51 ,166 $ 2507 $ 1-2-9 $ 38 $ 2,784 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ $ $ $ Due to other funds — TOTAL LIABILITIES FUNDS BALANCES Designated for authorized projects 51 ,166 2,507 129 38 2,784 TOTAL LIABILITIES AND FUND BALANCES $ 1 ,166 $ 2.507 $ 129 $ 38 $ Continued See ,:accompanying notes to financial statements. Perry H: Carter, Certified Public Accountant -33- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1987 Landscape- Dublin Boule- Dougherty Amador Valley Traffic Signal Arroyo Vista vard West of Road Widening Blvd./Dougherty Amador Valley/ Sidewalk San Ramon Road at Railroad Village Parkway Amador Plaza ASSETS Cash $ $ $ $ $ Due from others 10,738 9,821 TOTAL ASSETS $ $ 10,738 $ $ _ $ 9,821 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ $ $ 2,772 $ Due to other funds 19,964 14,569 377,357 TOTAL LIABILITIES 19,964 14,569 380,129 FUNDS BALANCES Designated for authorized projects (19,964) 10,738 (14,569) (380,129) 9,821 TOTAL LIABILITIES AND FUND BALANCES $ — $ $ $ _ $�.�821 Continued Sae accompanying notes to financial statements. Perry A. Carter, Certified Public Accountant -34- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1987 Traffic Signal San Ramon Rd. Traffic Signal Village Park- Improvements Park Develop- Amador Valley/ Village Park- way/Lewis ments-Phase IV ment Plan San Ramon Road way Hall ASSETS Cash $ $ $ $ $ Due from others 2,428 73,874 2,960 TOTAL ASSETS $ 2,428 $ $ $ 73,874 $ 2 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ $ 342 $ $ Due to other funds - TOTAL LIABILITIES 342 FUNDS BALANCES Designated for authorized projects 2,428 (342) 73,874 2,960 TOTAL LIABILITIES AND FUND BALANCES $ 2,A a $ $ - $ $ 2.960 Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -35- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1987 Median Break- Street Name Silvergate/ Sign Replace- Amador Lakes Police Silvertree Dolan Park ment Program Mini Park Vehicle ASSETS Cash $ $ $ $ $ Due from others 1 ,237 647 31 ,831 _ TOTAL ASSETS $ 1 ,237 $ $ 647 $ 31 ,831 $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ 4,855 $ $ 1 ,505 $ Due to other funds TOTAL LIABILITIES 4,855 1 ,505 FUNDS BALANCES Designated for authorized projects 1 ,237 (4,855) 647 30,326 TOTAL LIABILITIES AND FUND BALANCES $ 7 $ $ 647 $ 31 ,831 $ Continued See accuapanying notes to financial statements. Perry H. Carter, Certified Public Accountant -36- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1987 Dougherty Rd. Major Arter- Senior Dougherty Dublin Blvd. Fencing East ial Fence Citizens Hills NW Fronting Side Replacement Center Park at Clark ASSETS Cash $ $ $ $ $ Due from others TOTAL ASSETS $ $ _ $ $ $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 4,252 $ 3,762 $ $ $ 2,616 Due to other funds TOTAL LIABILITIES 4,252 3,762 2,616 FUNDS BALANCES Designated for authorized projects (4,252) (3,762) (2,616) TOTAL LIABILITIES AND FUND BALANCES $ $ $ $ $ Continued See_ accompanying notes to financial statemk2nts. Perry H. Carter, Certified Public Accountant -37- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1987 Traffic Signals Cable Public Fuel Effici- East and Street Access ency Traffic Dougherty Light Additions Facilities Signal Study Hills Park Total ASSETS Cash $ $ $ $ $ 3 Due from others 45,950 _ 2,093,693 TOTAL ASSETS $ $ 45,950 $ $ a $ 2_,._093,696 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 170 $ $ 220 $ 96 $ 160,415 Due to other funds _ 2,112,039 TOTAL LIABILITIES 170 220 96 2,272,454 FUNDS BALANCES Designated for authorized projects (170) 45,950 (220) (96) ( 178,758) TOTAL LIABILITIES AND FUND BALANCES $ — $ 45.950 $ — $ — $ 2,093,696 Concluded See accompanying notes to financial statement. Perry H. Carter, Certified Public Accountant -38- _ e CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBTNING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987 Intersection Street Traffic Street City Modification Name and Signals AVB/ Improvements Sewage Base Dublin Blvd./ Approach Stagecoach Amador Valley Facility Map Dougherty Road Signs Road Boulevard Expansion REVENUES Interest income $ 183 $ 816 $ 69 $ 513 $ 2,167 $ 30,722 Other revenue (reimbursement) 94,200 TOTAL REVENUE 183 816 69 513 96,367 30,722 EXPENDITURES General government: Contractual services Capital projects: Construction in progress Land, equipment and other facilities TOTAL EXPENDITURES _ REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 183 816 69 513 96,367 30,722 OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES 183 816 69 , 513 96,367 30,722 FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) 19,327 1 ,632 12,176 728,000 FUND BALANCES, END OF YEAR $ 183 $ 20,143 $ 1,701 $ 12,689 $ 96,367 $ 758,722 Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -39- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987 Village Annual City Civic Defective Parkway Street Bus Entrance Center Sidewalk Landscape Overlay Shelters Signs Project Repair and Sidewalk Program REVENUES Interest income $ $ $ $ $ $ Other revenue (reimbursement) 1 ,228 928 12,428 6 101 403 TOTAL REVENUE 1 ,228 928 12,428 6 101 403 EXPENDITURES General government: Contractual services 12,065 22,112 Capital projects: Construction in progress 31 ,136 77,630 Land, equipment and other facilities TOTAL EXPENDITURES 43,201 99,742 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 1 ,228 928 12,428 (43,195) 101 (99,339) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES 1 ,228 928 12,428 (43,195) 101 (99,339) FUND BALANCE TRANSFER 500,000 FUND BALANCES, BEGINNING OF YEAR 29,088 22,000 45,000 2,389 19,107 FUND BALANCES, END OF YEAR $ 30,316 $ 22,928 $ 557,428 $( 195) $ 2,490 $(80,232) Continued Soo accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -40- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987 Downtown Word Downtown Dublin Street Processing Improvement Boulevard Lighting Kolb Park Equipment Study Underground Additions Improvements REVENUES Interest income $ 4 $ 972 $ 5,403 $ 6,956 $ 53 Other revenue (reimbursement) TOTAL REVENUE 4 972 5,403 6,956 53 EXPENDITURES General government: Contractual services 48,620 34,615 Capital projects: Construction in progress 5,232 Land, equipment and other facilities 79,810 TOTAL EXPENDITURES 48,620 5,232 114,425 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 4 (47,648) 171 6,956 (114,372) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out (15,999) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES (15,995) (47,648) 171 6,956 (114,372) FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR 176 40,686 130,619 164,833 FUND BALANCES, END OF YEAR $(15.819) $(_ ) $ 130.790 $ 171 ,789 Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -41 - CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987 San San Traffic Signal Ramon Road Ramon Road Alcosta/San Traffic Signal Traffic Signal Phase II Phase III Ramon Road Dublin/Sierra Interconnect REVENUES Interest income $ 732 $ 358 $ 2,180 $ 1 ,704 $ 2,547 Other revenue (reimbursement) 27,729 TOTAL REVENUE 28,461 358 2,180 1 ,704 2,547 EXPENDITURES General government: Contractual services 161 ,082 40,508 4,202 11 ,494 57,655 Capital projects: Construction in progress 1 ,202,374 39,396 209,904 89,431 Land, equipment and other facilities TOTAL EXPENDITURES 1 ,363,456 40,508 43,598 221 ,398 147,086 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (1 ,334,995) (40,150) (41 ,418) (219,694) (144,539) OTHER FINANCING SOURCES Operating transfers in Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES (1 ,334,995) (40,150) (41 ,418) (219,694) (144,539) FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR 26,472 56,489 80,379 88,102 FUND BALANCES, END OF YEAR $(1"10£3��Z ) Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -42- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987 Median Landscape DSRSD City Dublin Village Parkway Services Copy Storage Boulevard to Kimball Study Machine Yard Extension REVENUES Interest income $ 6,144 $ 184 $ $ $ Other revenue (reimbursement) 4,719 5 38 178 TOTAL REVENUE 6,144 4,903 5 38 178 EXPENDITURES General government: Contractual services 7,935 8,796 Capital projects: Construction in progress 29,457 Land, equipment and other facilities _ TOTAL EXPENDITURES 37,392 8,796 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (31 ,248) (3;893) 5 38 178 OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES (31 ,248) (3,893) 5 38 178 FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR 82,414 6,400 124 _ 2,606 FUND BALANCES, END OF YEAR $ `�1�� $ 2-,�Q 7 $ I-U $ A $ $ Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -43- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987 Landscape- Dublin Boule- Dougherty Amador Valley Traffic Signal Arroyo Vista vard West of Road Widening Blvd./Dougherty Amador Valley/ Sidewalk San Ramon Road at Railroad Village Parkway Amador Plaza REVENUES Interest income $ $ 570 $ 13 $ 19 $ 433 Other revenue (reimbursement) 22,500 TOTAL REVENUE 570 13 22,519 433 EXPENDITURES General government: Contractual services 9,329 97,863 Capital projects: Construction in progress 5,788 943,541 Land, equipment and other facilities 120,985 TOTAL EXPENDITURES 5,788 130,314 1 ,041 ,404 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES ( 5,788) 570 (130,301 ) (1 ,018,885) 433 OTHER FINANCING SOURCES (USES) Operating transfers in 120,000 637,854 Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES ( 5,788) 570 (10,301 ) ( 381 ,031 ) 433 FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR (14,176) 10,168 ( 4,268) 902 9,388 FUND BALANCES, END OF YEAR $(1 9 4) $ 1 7 $(14.569) $( 380.129) $ 9.821 Contintied See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -44- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987 Traffic Signal San Ramon Rd. Traffic Signal Village Park- Improvements Park Develop- Amador Valley/ Village way/Lewis ments-Phase IV ment Plan San Ramon Road Parkway Hall REVENUES Interest income $ 128 $ 404 $ 270 $ 2,991 $ 120 Other revenue (reimbursement) TOTAL REVENUE 128 404 270 2;991 120 EXPENDITURES General government: Contractual services 44,453 15,637 Capital projects: , Construction in progress Land, equipment and other facilities TOTAL EXPENDITURES 44,453 15,637 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 128 (44,049) (15,367) 2,991 120 .OTHER FINANCING SOURCES (USES) Operating transfers in 34,073 2,225 Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS (LESS) THAN OF EXPENDITURES 128 ( 9,976) (13,142) - 2,991 120 FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR 2,300 9,976 12,800 70,883 2,840 FUND BALANCES, END OF YEAR $_2,428 $ $( 342) $ 73.874 $ 2.960 Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -45- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987 Median Break- Street Name Amador Silvergate/ Sign Replace- Lakes Police Silvertree Dolan Park ment Program Mini Park Vehicle REVENUES Interest income $ 50 $ $ 26 $ 1 ,363 $ 528 Other revenue (reimbursement) - TOTAL REVENUE 50 26 1 ,363 528 EXPENDITURES General government: Contractual services 15,861 5,155 Capital projects: Construction in progress Land, equipment and other facilities - TOTAL EXPENDITURES 15,861 5,155 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 50 (15,861 ) 26 ( 3,792) 528 OTHER FINANCING SOURCES (USES) Operating transfers in 11 ,006 105,130 Operating transfers out (105,658) REVENUES AND OTHER FINANCING SOURCES IN EXCESS (LESS) THAN OF EXPENDITURES 50 ( 4,855) 26 ( 3,792) FUND BALANCE TRANSFER ( 25,000) FUND BALANCES, BEGINNING OF YEAR 1 ,187 621 34,118 25,000 FUND BALANCES, END OF YEAR $ 1 ,237 $( 4,855) $ 6 $ 30,326 $ Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -46- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987 Dougherty Rd. Major Arter- Senior Dougherty Dublin Blvd. Fencing East ial Fence Citizens Hills NW Fronting Side Replacement Center Park at Clark REVENUES Interest income $ $ $ $ $ Other revenue (reimbursement) TOTAL REVENUE EXPENDITURES General government: Contractual services 6,029 6,572 2,368 947 14,304 Capital projects: Construction in progress 14,698 Land, equipment and other facilities TOTAL EXPENDITURES 6,029 6,572 2,368 15,645 14,304 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (6,029) (6,572) (2,368) (15,645) (14,304) OTHER FINANCING SOURCES (USES) Operating transfers in 1 ,777 2,810 2,368 15,645 11 ,688 Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES (4,252) (3,762) ( 2,616) FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR FUND BALANCES, END OF YEAR Continued S-�e accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -47- CITY OF DUBLIN . CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987. Traffic Signals Cable Public Fuel Effici- East and Street Access ency Traffic Dougherty Light Additions Facilities Signal Study Hills Park Total REVENUES Interest income $ $ 950 $ $ $ 84,887 Other revenue (reimbursement) 20,000 169,148 TOTAL.REVENUE 20,950, 254,035 EXPENDITURES General government: Contractual services 29,054 2,651 17,102 676,409 Capital projects: Construction in progress 2,648,587 Land, equipment and other facilities 200,795 TOTAL EXPENDITURES 29,054 2,651 17,102 3,525,791 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (29,054) 20,950 (2,651 ) (17,102) (3,271 ,756) OTHER FINANCING SOURCES (USES) Operating transfers in 28,884 2,431 17,006 992,897 Operating transfers out ( 121 ,657) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES ( 170) 20,950 ( 220) ( 96) (2,400,516) FUND BALANCE TRANSFER 25,000 500,000 FUND BALANCES, BEGINNING OF YEAR 1 ,721 ,758 FUND BALANCES, END OF YEAR $( 170) $ 45,950 $(—_220) $( 9 ) $( 178.758) Concluded See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -48- SPECIAL ASSESSMENT FUNDS Perry H. Carter, Certified Public Accountant CITY OF DUBLIN SPECIAL ASSESSMENT FUNDS June 30 , 1987 Special assessment funds are used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. Perry H. Carter, Certified Public Accountant -49- CI q",* OF DUBLIN SPF,-IAL ASSESSMENT FUNDS COM3INING BALANCE SHEET Year Ended June 30, 1987 San Ramon Road Street Specific Lighting Landscape Plan Assessment Assessment Assessment District District District 83-1 83-2 Fund Total ASSETS Cash and assessments $ 56, 260 $ 34, 683 $ 503,419 $ 594, 362 Receivables: Special assess -men is Current 1 , 332 10, 076 11 ,408 Deferred 575 , 971 575, 971 TOTAL ASSETS $ 57 , 592 $ 34, 683 $ 1 , 089, 466 $ 1181 ,741 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 10 , 673 $ 10,475 $ 145 $ 21 , 293 Deposits 3, 125 3, 125 Deferred revenues 575 , 971 575, 971 Bonds payable 770,000 770 ,000 10, 673 10,475 1 , 349, 241 1 , 370, 389 FUND EQUITY Fund balance 46, 919 24, 208 ( 259, 775) ( 188, 648 ) TOTAL LIABILITIES AND FUND EQUITY $ 57 , 592 $ 34, 683 $ 11089 ,466 $ 11181 , 741 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -50- CITY OF DUBLIN SPE`IAL ASSESSMENT FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES Year Ended June 30, 1987 San Ramon Road Street Specific Lighting Landscape Plan Assessment Assessment Assessment District District District 83-1 83-2 Fund Total REVENUES Special assessment $ 134, 776 $ 21 , 568 $ 1, 360 $ 157 , 704 Use of money and property Interest 1 , 829 2 , 540 29 , 911 34, 280 136 , 605 24 , 108 31 , 271 191 , 984 EXPENDITURES Public safety Service and supplies 118, 505 118, 505 Highways and streets Contract services 32, 376 32, 376 Capital outlay 71 , 208 71 , 208 118, 505 32, 376 71 , 208 222, 089 REVENUES IN EXCESS OF ( LESS THAN ) EXPENDITURES 18, 100 ( 8, 268 ) ( 39 , 937 ) ( 30, 105 ) OTHER FINANCING SOURCES (USES ) Operating transfers in Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS (LESS ) THAN EXPENDITURES AND OTHER USES 18, 100 ( 8, 268 ) ( 39, 937 ) ( 30, 105 ) FUND BALANCES, BEGINNING OF YEAR 28, 819 32,476 ( 219, 838) (158, 543 ) FUND BALANCES, END OF YEAR $ 46 , 919 $ 24, 208 $( 259 , 775 ) $( 188, 648 ) See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -51- PROPRIETARY FUND TYPES Perry H. Carter, Certified Public Accountant CITY OF DUBLIN PRPRIETARY FUND TYPES . June 30 , 1987 INTERNAL SERVICE FUNDS Equipment Replacement Fund - To provide for the accumulation of resources to replace equipment, as funded by interdepartmental fees. ENTERPRISE FUNDS Dublin Information , Inc . - This fund is used to account for the activity of Dublin Information, Inc. , a non-profit public ser- vices corporation . The corporation was created for the purpose of building a public facilities project, which will then be leased to the City of Dublin . The lease income derived from the City will be used to repay Certificates of Participation, which were issued by the corporation to fund the construction of the project. The City exercises oversight responsibility with re- spect to the corporation , consequently the financial activity of the corporation is reported in the financial statements of the City . See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -52- CITY OF DUBLIN COI'1;•INING BALANCE SHEET PROPRIETARY FUND TYPES June 30 , 1987 Internal Enterprise Service Fund Fund Dublin Equipment Information Replacement Inc. Total ASSETS Cash and investments $ 74,428 $ 8, 751 , 606 $ 8, 826, 034 Prepaid expenses 8, 616 8, 616 Land, machinery and equipment net of accum- ulated depreciation , machinery and equipment of $78 , 090 146, 687 146, 687 Construction in progress 8, 132 ,438 8, 132 ,438 $ 229, 731 $ 16, 884 ,044 $ 17 , 113, 775 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 2,072 $ 50, 901 $ 52, 973 Certificates of par- ticipation 11 , 795 ,000 11 , 795, 000 2,072 11 , 845 ,901 11 , 847 ,973 FUND EQUITY Contributed capital 88,424 88, 424 ,Retained earnings: Designated for author- ized expenditures/ projects 1, 938 , 143 1 ,938, 143 Unreserved 139, 235 139, 235 Fund balance : Designated for author- ized expenditures/ projects 3, 100,000 3 , 100,000 227 ,659 5 ,038, 143 5, 265 ,802 $ 229, 731 $ 16, 884,044 $ 17, 113 , 775 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -53- CITY OF DUBLIN COti3L ING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES PROPRIETARY FUND TYPES Year Ended June 30, 1987 Internal Enterprise Service Fund Fund Dublin Equipment i Information Replacement Inc. Total REVENUES Interest income $ 2, 160 $ 435, 704 $ 437, 864 Rent income 1 , 379, 851 1 , 379, 851 Equipment usage 87 , 769 87 , 769 89, 929 1 , 815 , 555 1 , 905,484 EXPENSES 85 ,801 443 , 194 928,995 OPERATING INCOME 4, 128 1, 372 , 361 1 , 376, 489 NONOPERATING REVENUE (EXPENSE ) Operating transfer in 135 , 107 135, 107 Operating transfer out 135, 107 135 , 107 NET INCOME 139, 235 1 , 372, 361 3 , 138,931 FUND BALANCE TRANSFER (NOTE 12 ) 3, 138, 931 3, 138, 931 FUND BALANCE AT BEGINNING OF PERIOD 88,424 526, 851 615, 275 FUND BALANCE AT END OF PERIOD $ 227 , 659 $ 51038 , 143 $ 5, 265, 802 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -54- CITY OF DUBLIN COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION PROPRIETARY FUND TYPES Year Ended June 30, 1987 Internal Enterprise Service Fund Fund Dublin Equipment Information Replacement Inc. Total SOURCES OF WORKING CAPITAL Net income $ 139, 235 $ 1, 372, 361 $ 1, 511 , 596 Add back items not requir- ing working capital - Depreciation 52 , 957 52 , 975 Fund balance transfer 3 , 139 ,931 3, 138, 931 192 , 210 4, 511 , 292 4, 703 , 502 USES OF WORKING CAPITAL Increase in contraction , in-progress 1 , 735 , 020 1 ,735,020 Fixed assets acquired 136, 353 136 , 353 Certificates of partici- pation payment 173 ,000 173 , 000 136 , 353 1 ,908,020 2 ,044, 373 INCREASE IN WORKING CAPITAL $ 55 , 857 $ 21603 , 272 $ 21659 , 129 ELEMENTS OF NET INCREASE (DECREASE ) IN WORKING CAPITAL Cash $ 49 , 313 $ 2, 633, 715 $ 2,683 ,028 Accounts payable ( 2,072) ( 30,443) ( 32, 515) Prepaid expenses 8, 616 8, 616 NET INCREASE IN WORKING CAPITAL $ 55_, 857 $ 2,603 , 272 $ 21659, 129 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -55- I GENERAL FIXED ASSETS 0 Perry H. Carter, Certified Public Accountant t CITY OF DUBLIN " GENERAL FIXED ASSETS June 30, 1987 The purpose of the General Fixed Assets group of accounts is to account for fixed assets not used in proprietary fund operations or accounted for in Trust Funds. See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -56- CITY OF DUBLIN SCHEDULE OF GENERAL FIXED ASSETS BY SOURCES June 30, 1987 GENERAL FIXED ASSETS Machinery and equipment $ 143 ,911 $ 143,911 INVESTMENT IN GENERAL FIXED ASSETS General fund purchases $ 143 , 711 Gifts 200 $ 143, 911 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -57- CITY OF DUBLIN MANAGEMENT LETTER JUNE 30 , 1987 Perry H. Carter, Certified Public Accountant ST C.P.A. PERRY H. C CERTIFIED PUBLIC ACCOUNTANT 1558 B Street,Suite 2 Hayward,California 94541 (415) 537-1835 December 15, 1987 Honorable Mayor, Members of the City Council , and City Manager City of Dublin, California I have examined the financial statements of the City of Dublin for the year ended June 30, 1987 and have issued my report thereon dated November 20, 1987. As part of my examination, I made a study and evaluation of the City' s system of internal accounting control to the extent I considered necessary to evaluate the system as required by gener- ally accepted auditing standards. Under these standards, the purposes of such an evaluation are to establish a basis for reliance on the system of internal accounting control in deter- mining the nature, timing, and extent of other auditing proce- dures that are necessary for expressing an opinion on the finan- cial statements and to assist the auditor in planning and per- forming his examination of the financial statements. The objective of internal accounting control is to provide reasonable , but not absolute , assurance as to the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial state- ments and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a system of internal accounting control should not exceed the benefits de- rived and also recognizes that the evaluation of these factors necessarily requires estimates and judgments by management. There are inherent limitations that should be recognized in considering the potential effectiveness of any system of internal accounting control. In the performance of most control proce- dures, errors can result from misunderstanding of instructions, mistakes of judgment, carelessness, or other personal factors. Control procedures whose effectiveness depend upon segregation of duties can be circumvented by collusion. Similarly, control procedures can be circumvented intentionally by management either with respect to the execution and recording of transactions or with respect to the judgments required in the preparation of financial statements. Further, projection of any evaluation of internal accounting control to future periods is subject to the risk that the pro- cedures may become inadequate because of changes in conditions City of Dublin .December 15 .1987 Perry H. Carter - 2 1 and that the degree ' of compliance with the procedures may deter- iorate. My examination of the financial statements was made in accordance with generally accepted auditing standards, ; including the ' 'study and evaluation of the system of internal accounting control for the year ended June 30, 1987. The examination, which was made for the purposes set forth above, would not necessarily disclose all weaknesses in the system because it was based on selective tests of accounting records and related .data. However, such evaluation disclosed the following conditions that I believe to be weaknesses, . excluding those which were corrected before 'they came to my attention. •In addition, I have included my recommenda- tions for improving the accounting system. These conditions were considered, in determining the nature, timing, and extent of audit tests to be applied in my examination of the financial statements, and this report of such conditions does not modify my report dated November 20, 1987, on such finan- cial statements. My recommendations with respect to the City's system of internal control is discussed below, and includes the status of the prior year's recommendations, along with the current year's recommenda- tions. CURRENT YEAR RECOMMENDATION 1 -- REVIEW OF INTERNAL CONTROL In my management letter to the City for 1985/86 I pointed out that the City had employed its first Finance Director. In that letter I recommended that the Finance Director, as one of his first duties, review the system of internal controls to determine its proper functioning. To emphasize the importance of internal controls, I am proposing that the City develop this general recommendation one step further. In particular, I recommend that the City Manager and Finance Director each year meet and establish an agenda of internal control areas to be reviewed each year. Depending upon the scope of work involved this might be one study or several. Since it would be an internal review the degree of formality associated with outside consultant reviews would not be necessary. The primary benefits to such a program are: 1. The establishment of the system of internal controls as an on-going major objective. City of Dublin December �-15,"1987 Perry H. Carter r Page 3 2. The maintenance and development of .the system :'of internal controls. 3. Potential audit efficiencies due to a pr.oper.ly -functioning system. . 4. Potential operating efficiencies due to the "operational audit" aspects of any internal review. I think that this type of program will provide the City the benefits I have listed above, without causing .undue hardship in terms of personnel requirements. Also, the need to have a pro- perly functioning system of internal controls will become. part of the yearly planning process. PRIOR YEAR RECOMMENDATIONS The following is a summary of the status of the prior year's recommendations: 1 . Computer study - implemented. 2. Review of internal control - see current year recommendation. 3. Dublin Information, inc. - implemented. I wish to thank the City Manager and Finance Director and staff for their cooperation during the course of the audit. Should you wish to discuss any of the comments I have made , I will be happy to meet with you at your convenience. Sincerely, 14 , Ca-47Z PERRY H. CARTER