cityofbuenapark, comprehensiveannual with report …

CITY OF BUENA PARK, CALIFO~l'IJIA

COMPREHENSIVE ANNUALFINANCIAL REPORT

WITH REPORT ON AUDITBY INDEPENDENT

CERTIFIED PUBLIC ACCOUNTANTS

FOR THE YEAR ENDED JUNE 30, 2008

Prepared By:Finance Department

CITY OF BUENA PARK

COMPREHENSNE ANNUAL FINANCIAL REPORT

TABLE OF CONTENTS

For the Year Ended June 30, 2008

INTRODUCTORY SECTION:Letter of TransmittalOrganizational ChartListing of OfficialsGFOA Certificate ofAchievement for Excellence in Financial Reporting

FINANCIAL SECTION:Independent Auditors' Report

Management's Discussion and Analysis

Basic Financial Statements:Government-wide Financial Statements:

Statement ofNet AssetsStatement ofActivities

Fund Financial Statements:Governmental Funds:

Balance SheetReconciliation of the Governmental Funds Balance Sheet

to the Statement ofNet AssetsStatement ofRevenues, Expenditures and Changes in Fund BalancesReconciliation of the Governmental Funds Statement of Revenues,

Expenditures and Changes in Fund Balances to the Statement ofActivities

Proprietary Funds:Statement ofNet AssetsStatement of Revenues, Expenses and Changes in Net AssetsStatement of Cash Flows

Notes to Financial Statements

PageNumber

I - V

VI

vnvm

1 - 2

3 - 22

2324 - 25

26 - 27

2930 - 31

33

3435

36 - 37

39 - 77

CITY OF BUENA PARK

COMPREHENSIVE ANNUAL FINANCIAL REPORT

TABLE OF CONTENTS(CONTINUED)


REQUIRED SUPPLEMENTARY INFORMATION:

Description of Major FundsBudgetary Comparison Schedules:

General FundRedevelopment Agency Low and Moderate

Housing Special Revenue FundNote to Required Supplementary Information

SUPPLEMENTARY INFORMATION:

Other Governmental Funds:Description of Other Governmental FundsCombining Balance SheetCombining Statement of Revenues, Expenditures and Changes

In Fund BalancesSchedules of Revenues, Expenditures and Changes in Fund Balance-

Budget and Actual:Asset Forfeiture Special Revenue FundProposition 172 Police Augmentation Special Revenue FundState Gasoline Tax Special Revenue FundMeasure M Turnback Special Revenue FundResidential Rehabilitation Special Revenue FundHOME Deferred Loans Special Revenue FundLocal Law Enforcement Block Grant Special Revenue FundOrange County Anti-Drug Abuse Special Revenue FundTraffic Congestion Relief Special Revenue FundState OCATT Special Revenue FundCOPS/SLESF Special Revenue FundHousing and Community Development Special Revenue FundBuena Park Foundation Special Revenue FundAB 2766/AQMD Special Revenue FundCity Capital Projects FundPark-in-Lieu Capital Projects Fund

PageNumber

79

81

82 - 83

8485

87

88 - 8990 - 93

94 - 97

98991001011021031041051061071081091I0III1I21I3

CITY OF BUENA PARK




SUPPLEMENTARY INFOR.TvIATION (CONTINUED):

Description of Other Major FundsSchedules of Revenues, Expenditures and Changes in Fund Balance:

Redevelopment Agency Debt Service FundRedevelopment Agency Capital Projects Fund

Internal Service Funds:Description of Internal Service FundsCombining Statement of Net AssetsCombining Statement of Revenues, Expenses

and Changes in Net AssetsCombining Statement of Cash Flows

STATISTICAL SECTION (UNAUDITED):

Description of Statistical Section Contents

Financial Trends:Net Assets by Component - Last Six Fiscal YearsChange in Net Assets - Expenses and Program Revenues - Last Six Fiscal YearsChange in Net Assets - General Revenues - Last Six Fiscal YearsFund Balances - Governmental Funds - Last Six Fiscal YearsChanges in Fund Balances - Governmental Funds - Last Six Fiscal YearsGovernmental Activities Tax Revenues by Sources - Last Six Fiscal Years

Revenue Capacity:Direct and Overlapping Property Tax Rates - Last Six Fiscal YearsPrincipal Property TaxpayersSecured Property Tax Levies and Collections - Last Six Fiscal YearsAssessed Value and Actual Value of Taxable Property - Last Six Fiscal Years

Debt Capacity:Ratios of Outstanding Debt by Type - Last Six Fiscal YearsDirect and Overlapping Governmental Activities DebtLegal Debt Margin Information - Last Six Fiscal Years

PageNumber

115

116117

119120-121

122 - 123124 - 127

129

130-131132 - 133134 - 135136 - 137138 - 139

140

141142143144

145147

148 - 149

CITY OF BUENA PARK




STATISTICAL SECTION (UNAUDITED) (CONTINUED):

Debt Capacity (Continued):Revenue Bond Coverage:

1996 Revenue Bonds - Last Ten Fiscal Years2000 Tax Allocation Refunding Bonds - Last Eight Fiscal Years2003 Tax Allocation Refunding Bonds - Last Five Fiscal Years

Demographic and Economic Information:Demographic and Economic Statistics - Last Six Fiscal YearsPrincipal Employers

Operating Information:Full-Time City Employees by Function - Last Six Fiscal YearsOperating Indicators by Function - Last Six Fiscal YearsCapital Asset Statistics by Function - Last Six Fiscal Years

PageNumber

150150151

152153

154 - 155156 - 157158 - 159

INTRODUCTORY SECTION

December 10, 2008

Honorable Mayor and Members of the City CouncilCity of Buena ParkBuena Park, California

It is my pleasure to submit the Comprehensive Annual Finance Report (CAFR) of the City ofBuena Park (the City) for the fiscal year ended June 30, 2008.

This report consists of management's representations concerning the finances of the City.Consequently, management assumes full responsibility for the completeness and reliability of allof the information presented in this report. To provide a reasonable basis for making theserepresentations, management has established a comprehensive internal control framework that isdesigned both to protect the City's assets from loss, theft, or misuse and to compile sufficientreliable information for the preparation of the City's financial statements in conformity withgenerally accepted accounting principles (GAAP). Because the cost of internal controls shouldnot outweigh their benefits, internal controls have been designed to provide reasonable ratherthan absolute assurance that the financial statements will be free from material misstatements.

The City's financial statements have been audited by Diehl, Evans & Company, L.L.P., a firm ofcertified public accountants. The independent auditor concluded, based on the audit, that therewas a reasonable basis for rendering an unqualified opinion on the City's financial statements forthe fiscal year ended June 30, 2008. The independent auditor's report is presented as the firstcomponent of the financial section of this report.

The independent audit of the financial statements of the City was part of a broader, federallymandated "Single Audit" designed to meet the specific needs of the federal grantor agencies.The standards governing Single Audit engagements require the independent auditor to report notonly on the fair presentation of the financial statements, but also on internal controls and legalrequirements involving the administration of federal awards. These reports are available in theCity's separately issued Single Audit Report.

GAAP require that management provide a narrative introduction, overview, and analysis toaccompany the basic financial statements in the fonn of Management's Discussion and Analysis(MD&A). This letter of transmittal is designed to compliment the MD&A and should be read inconjunction with it. The City of Buena Park's MD&A can be found immediately following thereport of the independent auditors.

The financial report is divided into three sections:

I. Introductory Section

This section includes the table of contents, this letter of transmittal, the GFOACertificate of Achievement, the organizational chart, and the list of principal officials.

2. Financial Statement Section

This section includes the Independent auditor's report, Management's Discussion andAnalysis, the basic financial statements, required supplementary information, and thecombining and individual fund statements and schedules.

3. Statistical Information Section

This section includes pertinent financial and non-financial information that presentshistorical trends and other significant data.

City of Buena Park Profile

The City of Buena Park is a general law city that was incorporated on January 27, 1953. It islocated at the northwest edge of Orange County, which is located in the southwestern part of theState of California. The City of Buena Park occupies a land area of 10.27 square miles andprovides a full range of services, including police protection, street and other infrastructureconstruction and maintenance, and recreational activities to its population of 82,768.

The City of Buena Park operates under the council-manager form of government. The CityCouncil's five members are elected at large to provide the policy-setting and legislative functionsof the City for four-year overlapping terms. Elections are held in November of even-numberedyears, with either two or three seats to be filled. The mayor is elected by City Council for a oneyear term and is the presiding officer of the Council. The City Council is responsible, amongother things, for passing ordinances, adopting the budget, appointing committees, and hiring theCity Manager, City Clerk, and City Attorney. The City Manager is responsiblc for carrying outthe policies and ordinances of the Council, for overseeing the day-to-day operations of the City,and for appointing the heads ofthe various departments.

The annual budget serves as the foundation for the City's financial planning and policy making.The City Manager presents the proposed budget to the City Council for review prior to thebeginning of each fiscal year. The City Council is required to hold public hearings on theproposed budget and to adopt a final budget no later than June 30, the close of the fiscal year.The budget is prepared according to fund, function (e.g., public safety), and department (e.g.,police). The City Manager or Department Heads may make certain transfers of appropriationswithin a department. However, the City Manager's approval is required to transfer resourcesfrom an operating account to a capital account and to transfer appropriations betweendepartments.

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The finaneial aetivities of the three legally separate entities for whieh the City serves as thegoverning body are also ineluded in this report; the Redevelopment Ageney of the City of BuenaPark, the Buena Park Foundation, and the Buena Park Publie Finaneing Authority.

Local Economv

Buena Park is an eeonomically balanced community. It is home to the world-famous Knott'sBerry Farm, one of the nation's most popular and largest themc amusement parks. Also locatedin Buena Park are the Medieval Times Dinner and Tournament, Pirate's Dinner Adventure,Knott's Soak City, and Ripley's Belicve-It-or Not Museum. These attractions contribute to thehealthy tourism industry in the City.

In addition to the entertainment-type businesses, Buena Park also offers a complete selection ofbotels, restaurants, commercial centers, office complexes, business parks, and the recentlyrenovated Buena Park Mall. Major nationally recognized employers in the City of Buena Parkinclude Pepsi, Nutrilitc, Yamaha, and Georgia Pacific. In addition, the City's Auto Centerincludes most ofthe major automobile brands.

Nationally and locally, the economy is experiencing a significant slowdown. Decreasingconsumer confidence and rising unemployment have negatively affected consumer spending.Automobile sales and retail sales continue to decline. The volatile financial markets haveexperienced unprecedented events, such as the bankruptcy of Lehman Brothers and the seizure ofWashington Mutual by the Federal Government. The fallout from the sub-prime mortgage crisiscontinues to affect all areas of the economy, including the housing and finance sectors. Locally,the City is experiencing a decrease in tax revenues and construction activity. The City continuesto work on many economic development projects that are anticipated to provide an economicstimulus in the long-term. Among these are final re-use of the former Nabisco site, the Beachand Orangethorpe mixed use development, and the re-positioning of the entertainment corridorincluding redevelopment of the former Movieland and certain motel properties.

Major Initiatives

The Orange County Transportation Authority (OCTA), in partnership with the CaliforniaDepartment of Transportation (Caltrans), continues construction on the 1-5 Gateway Project.This $325 million project will widen the portion of the Interstate 5 freeway that runs through theCity. Once completed, the project will reduce congestion and improve traffic flow along thisroute that serves as the gateway to Orange County. The Stanton Avenue bridge was completedand reopened during the year. The next phase, which is the demolition and reconstruction of theBeach Boulevard bridge is well underway. Construction for the entire projeet is seheduled to beeompleted by 2010.

The City has started eonstruetion on a new state-of-the-art Poliee Faeility. This new 66,000square foot faeility will replaee the existing 30,000 square foot, 43 year old building. This $39million projeet is funded jointly by the City and the Redevelopment Ageney and is seheduled tobe eompleted by the end of 2009.

iii

Another major project is the expansion of the Walter D. Ehlers Community Center, whichincludes the construction of a 9,500 square foot activity building and a new entry canopy andaccess drive for the Senior Center. The Redevelopment Agency is funding this $5.2 millionproject which is scheduled to be completed in 2009.

The City is participating in a joint use agreement with the Buena Park School District for theconstruction of a new gymnasium building. Funding for $5.2 million project is being providedby the City, the Redevelopment Agency, the State of California, and the Buena Park SchoolDistrict. The new 16,000 square foot facility will be located at Buena Park Junior High Schooland is currently in construction and scheduled to be completed in 2009. It will be available forcommunity sports leagues and public use during the evenings and weekends.

The City Council continues to update the City's Strategic Plan that was first crcated in August2006. The plan established milestone projects and priorities and is intended to guide thc Cityover the next few years. In addition, the plan will assist in thc allocation of City resources. Thequarterly and annual updates allow for the plan to be modified, so as to meet the changing needsof the community. An action plan for each plan goal has been developed that establishes benchmark components, activities or decisions in order to ensure that each goal is actively pursued.

The following capital improvement projects were completed:

• Rehabilitation of Orangethorpe Avenue between Valley View Street and Knott Avenue• Rehabilitation of Knott Avenue• Median Improvements• Rehabilitation of San Antonio Park Restrooms• Improvements at Brenner, Beat, San Antonio, Smith Murphy, and Peak parks• Sewer Replacement at Holder Street

Cash Management Policies and Praetiees

As a general law city, Buena Park operates its pooled idle cash investments under the PrudentInvestor Standard. This affords the City a broad spectrum of investment opportunities as long asthe investment is deemed prudent and is allowable under current legislation of the State ofCalifornia Govcrnment Code Section 53600 et. seq. and the gcneral law of the City of BuenaPark. Buena Park strives to maintain the level of investment of all idle funds as near 100% aspossible through daily and projected cash flow determinations. The City's cash managementsystem is designed to accurately monitor and forecast expenditures and revenues thus enablingthe City to invest funds to the fullest extent possible. The City attempts to obtain the highestreturn possible while meeting the criteria for safety and liquidity as established and outlined inthe City's Investment Policy, which is approved annually by the City Council.

Risk Management

The City of Buena Park is self-insured in both workers' compensation and general liability forthe first $500,000 per claim. The City maintains coverage in excess of this self-insured retention

IV

limit through the California Insurance Pool Authority (elPA), a public entity risk pool. ./'l.S

currently structured, all departments are chargcd an annual "premium" and thesc monies arcdeposited into a fund from which claims and administrative costs are paid. All self-insuranceprograms arc administered by third party professional administrators who function under criteriaestablished by the City's Risk Management Division.

Government Finance Officers Association of the United States and Canada (GFOA)Certificate of Achievement Award

The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to theCity of Buena Park for its comprehensive annual financial report for the year ended June 30,2007. In order to be awarded a Certificate of Achievement, a government must publish an easilyreadable and efficiently organized comprehensive annual report. This report must satisfy bothgenerally accepted accounting principlcs and applicable legal requirements. A Certificate ofAchievement is valid for a period of one year only. 1 believe that our current comprehensiveannual financial report continues to meet the Certificate of Achievement Program's requirementsand I am submitting it to the GFOA to determine its eligibility.

Acknowledgments

The preparation and publication of this report could not be accomplished without the dedication,professionalism, and teamwork of the Finance Department staff. I would like to express mysincere appreciation to all members of the Finance Department. In addition, I want toacknowledge the efforts of the City's independent auditors, Diehl, Evans and Company, LLP,who assisted in the preparation of this report. Finally, I would like to thank the City Managcrand the City Council for their support in planning and conducting the financial operations of theCity in a responsible and progressive manner.

Respectfully submitted,

Sung HyunDirector of Finance

v

vi

CITY MANAGER/

Executive Director

Community Redevelopment

Agency

City

Clerk

City

Attorney

Citizens Advisory

Committee on

Community

Development

Airport Noise and

Safety Committee

Beautification

Environmental

Commission

Fine Arts

Commission

Park & Recreation

Commission

Personnel

Board

Planning

Commission

Traffic and

Transportation

Commission

Senior Citizens

Commission

CITY OF BUENA PARK Organizational Chart

Deputy City Manager

Internal

Support

Services

Police Department

Community Development

Services

Department

Recreation, Parks &

Community Services

Department

Public

Works

Department

Economic

Development

Department

Finance

CITY OF BUENA PARKList of Principal Officials

CITY OF BUENA PARK:

CITY COUNCIL

Mayor Jim DowMayor Pro-Tern Steve BerryCouncil Member Arthur C. BrownCouncil Member Patsy MarshallCouncil Member Donald W. McCay

ADMINISTRATION AND DEPARTMENT HEADS

City Manager. '" Rick WarsinskiDeputy City Manager James VanderpoolCity Attorney Steven DorseyCity Clerk Shalice ReynosoDirector of Community Development .Joel RosenDirector of Economic Development May Wong HuiDirector of Finance Sung HyunPolice Chief Tom MonsonDirector of Public Works/City Engineer .James BieryDirector of Recreation, Parks and Community Services Steve Hunt

COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF BUENA PARK:

BOARD OF DIRECTORS

Chairman Jim DowVice Chairman Steve BerryBoard Member Arthur C. BrownBoard Member Patsy MarshallBoard Member Donald W. McCayExecutive Director '" Rick WarsinskiDeputy Executive Director. May Wong HuiAgency Counsel James L. MarkmanSecretary Shalice ReynosoTreasurer Sung Hyun

Vll

FINANCIAL SECTION

DIEHL, EVANS &. COMPANY, LLPCERTIFIED PUBLIC ACCOUNTANTS &: CONSULTANTS

A PARTNERSIDr INCLUDING ACCOUNTANCY CORPORATIONS

5 CORPORATE PARK, SUITE 100IRVINE, CALIFORNIA 92606-5165(949) 399-0600. FAX (949) 399-0610www.diehlevans.com

December 8, 2008

INDEPENDENT AUDITORS' REPORT

The Honorable Members ofthe City Council of theCity of Buena Park

Buena Park, California

MICHAEL R. LUDfN, CPACRAIG W. SPRAKER, CPANITIN P. PATEL, CPAROBERT J. CALLANAN, CPA

*PHILIP H. HOLTKAMP, CPA*THOMAS M. PERLQWSKl, CPA*HARVEY J_ SCHROEDER, CPAKENNETH R. AMES, CPA

*WILLIAM C. PENTZ, CPA

• A PROfESSIONAL CORPORATION

We have audited the accompanying financial statements of the governmental actIvItIes, thebusiness-type activities, each major fund, and the aggregate remaining fund information of the City ofBuena Park, California as of and for the year ended June 30, 2008, which collectively comprise theCity's basic financial statements as listed in the table of contents, These financial statements are theresponsibility of the City of Buena Park, California's management Our responsibility is to expressopinions on these financial statements based on our audit

We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States, Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements arefree of material misstatement An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements, An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluating the overallfinancial statement presentation, We believe that our audit provides a reasonable basis for ourOpInIOnS,

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, the business-type activities, each majorfund and the aggregate remaining fund information of the City of Buena Park, California as ofJune 30, 2008, and the respective changes in financial position and cash flows, where applicable,thereof for the year then ended in conformity with accounting principles generally accepted in theUnited States of America,

- I -

OTHER OFFICES AT: 2965 ROOSEVELT STREETCARLSBAD, CALIFORNIA 92008-2389(760) 729-2343. FAX (760) 729-2234

613 W. VALLEY PARKWAY. SUITE 330ESCONDIDO, CALIFORNIA 92025-2598(760) 741-3141. FAX (760) 741-9890

In accordance with Government Auditing Standards, we have also issued our report datedDecember 8, 2008 on our consideration of the City of Buena Park, California's internal control overfinancial reporting and on our tests of its compliance with certain provisions of laws, regulations,contracts and grant agreements and other matters. The purpose of that report is to describe the scopeof our testing of internal control over financial reporting and compliance and the results of that testingand not to provide an opinion on the internal control over financial reporting or on compliance. Thatreport is an integral part of an audit perfonned in accordance with Government Auditing Standards andshould be considered in assessing the results of our audit.

The management's discussion and analysis and the required supplementary infonnation identified inthe accompanying table of contents are not a required part of the basic financial statements but aresupplementary infonnation required by the accounting principles generally accepted in the UnitedStates of America. We have applied certain limited procedures to the management's discussion andanalysis, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation of this required supplementary infonnation. However, we did not auditthe management's discussion and analysis and express no opinion on it. The budgetary comparisonschedules and related note have been subjected to the auditing procedures applied in the audit of thebasic financial statements and, in our opinion are fairly stated in all material respects in relation to thebasic financial statements taken as a whole.

Our audit was conducted for the purpose of fonning opmlOns on the financial statements thatcollectively comprise the City of Buena Park, California's basic financial statements. The introductorysection, the combining financial statements, the individual fund schedules of revenues, expendituresand changes in fund balance - budget and actual and statistical section are presented for purposes ofadditional analysis and are not a required part of the basic financial statements. The combiningfinancial statements and individual fund schedules of revenues, expenditures and changes in fundbalance - budget and actual have been subjected to the auditing procedures applied in the audit of thebasic financial statements and, in our opinion, are fairly stated in all material respects in relation to thebasic financial statements taken as a whole. The introductory section and statistical section have notbeen subjected to the auditing procedures applied in the audit of the basic financial statements and,accordingly, we express no opinion on them.

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CITY OF BUENA PARK

~v1ANAGE~vfENT'S DISCUSSION AND ANALy'BIS

June 30, 2008

The following discussion and analysis of the financial perfonnance of the City of Buena Park providesan overview of the City's financial activities for the fiscal year ended June 30, 2008. We encouragereaders to consider the information presented here in conjunction with additional infonnation that wehave furnished in our letter of transmittal, which can be found in the introductory section of this report.

Financial Highlights

• The total assets of the City exceeded its liabilities at the close of fiscal year 2007-08 by$303,060,000. Net assets represent the difference between all of the City's assets andliabilities, including infrastructure (roads, bridges, stonn drains, sewers, traffic signals, andwater system mains and lines) and other capital assets (buildings and improvements, vehicles,furniture, and equipment). Of this amount, $56,620,000 may be utilized for the City's ongoingobligations to its citizens and creditors.

• The City's total net assets increased $38,358,000. Of this amount, $30,613,000 is attributableto the operations of the governmental activities, including general government, publicprotection, transportation, development, environmental, health and leisure. The remaining$7,745,000 is attributable to the water operation in the business-type activities.

• As of June 30, 2008, the City's governmental funds reported combined ending fund balances of$206,869,000, an increase of $94,938,000 or 85% in comparison with the prior fiscal year.Approximately 31% of the fund balance, or $63,746,000 is unreserved and available for use atthe government's discretion. This includes $36,856,000 in the General Fund, $3,585,000 in theSpecial Revenue Funds, and $23,305,000 in the Capital Projects Fund. Included in theunreserved fund balance is the City Council designation of $360,000 for fire surplus funds and$9,566,000 for future capital projects.

• Long-term obligations for governmental actlVltIes increased by $73,454,000. This 182%increase is due to the issuance of tax allocation bonds.

See independent auditors' report.- 3 -

CITY OF BUENA PARK

~v1Af,JAGEtv1ENT'S DISCUSSI01~ AND ANALYSIS(CONTINUED)

June 30, 2008

Using the Aeeompanying Financial Statements

This annual report consists of a series of financial statements. The Statement of Nct Assets and theStatement of Activities provide information about the activities of the City as a whole and present alonger-term view of the City's finances. Also included in the accompanying report are fund financialstatements. For governmental activities, the fund financial statements tell how these services werefinanced in the short term as well as what remains for future spending. Fund financial statements alsoreport the City's operations in more detail than the government-wide statements by providinginformation about the City's most significant funds.

Overview of the Financial Statements

The annual report consists of four parts - management's discussion and analysis (this section), thebasic financial statements, required supplementary information, and an optional section that presentscombining statements for nonmajor governmental funds and internal service funds. The basic financialstatements comprise three components:

• Government-wide financial statements. These statements provide both long-term and short-terminformation about the City's overall financial status.

• Fund financial statements. These statements focus on individual parts of the City government,reporting the City's operations in more detail than the government-wide statements.• The governmental funds statements tell how general government services like public safety

were financed in the short-term as well as what remains for future spending.

• Proprietary fund statements offer short- and long-term financial information about the activitythe City operates like a business, i.e., the Water Enterprise Fund.

• Notes to financial statements. - Explains some of the information in the financial statements andprovides more detailed data.

The statements are followed by a section of required supplementary information that providesadditional financial and budgetary information.

Figure A-I summarizes the major features of the City's financial statements, including the portion ofthe City government they cover and the types of information they contain. The remainder of thisoverview section of management's discussion and analysis explains the structure and contents of eachof the statements.

See independent auditors' report.-4-

CITY OF BUENA PARK

~v1A1'~AGE~vfE1~T'SDISCUSSION AND Al'IJALYSIS(CONTINUED)

June 30, 2008

Overview of the Financial Statements (Continued)

Figure A-IMajor Features of the City's Government-wide and Fund Financial Statements

Fund StatementsGovernmental Funds Proprietary Funds

Scope

Requiredfinancialstatements

Accountingbasis andmeasurement

focus

Type of asset!liabilityinformation

Type of inflow!outflowinformation

Government-wideStatements

Entire City governmentand the City'scomponent units

• Statement of netassets

• Statement ofactivities

Accrual accounting andeconomic resourcesfocus

All assets and liabilities,both financial andcapital, and short-termand long-term

All revenues andexpenses during year,regardless of when cashis received or paid

The activities of the Citythat are not proprietary

• Balance sheet• Statement of

revenues,

expenditures andchanges in fundbalances

Modified accrualaccounting and currentfinancial resources focus

Only assets expected tobe used up and liabilitiesthat corne due during theyear or soon thereafter;no capital assets or longterm debt included

Revenues for which cashis received during orsoon after the end of theyear; expenditures whengoods or services havebeen received andpayment is due duringthe year or soonthereafter

Activities the City operatessimilar to private businesses

• Statement of net assets• Statement of revenues,

expenses and changes innet assets

• Statement of cash flows

Accrual accounting andeconomic resources focus

All assets and liabilities,both financial and capital,and short-term and longterm

All revenues and expensesduring the year, regardlessof when cash is received orpaid


CITY OF BUENA PARK

IvfANAGE:tvfEl~T'SDiSCUSSION AND Al'11ALYSIS(CONTINUED)

June 30, 2008

Reporting the City as a Whole

The accompanying government-wide financial statements include the Statement of Net Assets andthe Statement of Activities that present financial data for the City as a whole and are designed toprovide readers with a broad overview of the City's financial condition. These statements include allassets and liabilities using the accrual basis ofaccounting, which is similar to the accounting used bymost private-sector companies. All of the currcnt year's revenues and expenses are taken into accountregardless of when cash is received or paid.

These two statements report the City's net assets and changes in them. The City's net assets - thedifference between assets and liabilities - is one way to measure thc City's financial health, orfinancialposition. Over time, increases and decreases in the City's net assets are one indicator of whether its.financial health is improving or deteriorating. Other nonfinancial factors, however, should beconsidered, such as changes in the City's property tax base and the condition of the City's roads, toassess the overall health ofthe City.

In the Statement of Net Assets and the Statement of Activities, we divide the City into two kinds ofactivities:

• Governmental activities - Most of the City's basic services are reported in this category, such asgeneral government, development, public protection, transportation, environmental, health, andleisure. Sales taxes, property taxes, state subventions, charges for services and other revenuesfinance most of these activities.

• Business-type activity - The City charges a fee to customers to help it cover all or most of the costof the services accounted for in the Water Enterprise Fund.


CITY OF BUENA PARK

MANAGEMENT'S DISCUSSION AND ANALYSIS(CONTINUED)

June 30, 2008

Reporting the City's Major Funds

The fund financial statements provide detailed infonnation about the City's most significant funds -not the City as a whole. Some funds arc requircd to be established by State law or by bond covenants.However, City Council establishes many other funds to help it control and manage money forparticular purposes or to show that it is meeting administrative responsibilities for utilizing certaintaxes, grants, or other money. The City's two fund types - governmental and proprietary, utilize twodifferent accounting approaches.

• Governmental funds - Most of the City's basic services are reported in governmental funds, whichfocus on near-tenn inflows and outflows of resources available for spending, as well as balances ofresources available for expenditure at the end of the fiscal year. These funds are reported using themodified accrual basis of accounting, which measures cash and all other current financial assetsthat can readily be converted to cash. The governmental fund statements provide a detailed shortterm view of the City's general government operations and the basic services it provides.Governmental fund infonnation helps detennine whether there are more or fewer financialresources that can be spent in the near future to finance the City's programs. The relationship ordiffercnces between governmental activities (reported in the Statement of Net Assets and theStatement of Activities) and governmental funds is described in a rcconciliation following the fundfinancial statements.

The City maintains 20 individual governmental funds. Infonnation is presented separately in thegovernmental fund balance sheet and in the governmental fund statement of revenues,expenditures, and changes in fund balances for the General Fund, the Redevelopment Agency Lowand Moderate Housing Special Revenue Fund, the Redevelopment Agency Debt Service Fund andthe Redevelopment Agency Capital Projects Fund, all of which are considered to be major funds.Data from the other 16 funds are combined into a single, aggregated presentation. Individual funddata for each of these nonmajor governmental funds is provided in a combining statementelsewhere in this report.

• Proprietary funds - When the City charges customers for the services it provides - whether tooutside customers or to other units of the City - these services are generally reported in proprietaryfunds. Proprietary funds are reported in the same way that all activities are reported in theStatement of Net Assets and the Statement of Activities. In fact, the City's enterprise fund (acomponent of proprietary funds) is the same as the business-type activities we report in thegovernment-wide statements but provides more detail and additional infonnation, such as cashflows, for proprietary funds. The City's one enterprise fund, the Water Enterprise Fund, isconsidered to be a major fund of the City. The City uses internal service funds (the othercomponent of proprietary funds) to account for its self-insurance, equipment replacement andmaintenance, building maintenance, employee benefits, and infonnation technology support.Because these services predominantly benefit governmental rather than business-type functions,they have been included with governmental activities in the government-wide financial statements.


CITY OF BUENA PARK


June 30, 2008

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Below is a summary of the City's government-wide financial infonnation (in thousands):

Total Governmental and Business-type ActivitiesAmount PercentIncrease Increase

June 30,2008 June 30. 2007 (Decrease) (Decrease)

Assets $ 434,915 $ 322,189 $ II 2,726 34.99%Liabilities 13 1,855 57.487 74,368 129.36 %

Total Net Assets .lL 303..060 ~ 264.702 L-. 38.358 14.49%

Unrestricted net assets 1.- 56.620 $ 46.26~ $. 10.35~ 22.37 %

Long-tenn obligations $ I 15,,311 L .. 42.064 ~. 73.247 174.13 %

Program revenues ~ 36.482 $ 37.187 L (705) (1.90)%

Taxes L-. 76.394 $ 70·4~4 $ . 5.970 8.48%

Other general revenues $ 6.650 $ 6.U7 $ 533 8.71%

Expenses $.. 8I.l.68 1.-. 73.696 $ 7.472 10.14%


CITY OF BUENA PARK


June 30, 2008

GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)

As noted earlier, net assets may serve over time as a useful indicator of a government's financialposition. A summary of the government-wide statement ofnet assets (in thousands) at June 30, 2008and 2007 are as follows:

Governmental Activities:

PercentJune 30, June 30, Increase Increase

2008 2007 (Decrease) (Decrease)Assets:

Current and other assets $ 258,688 $ 158,539 $ 100,149 63.17%Capital assets 147,497 142,367 5,130 3.60%

Total Assets 406,185 300,906 105,279 34.99%

Liabilities:Current liabilities 14,091 12,879 1,212 9.41%Long-term liabilities 113,806 40,352 73,454 182.03 %

Total Liabilitics 127,897 53,23 I 74,666 140.27%

Net Assets:Invested in capital assets,

nct of related debt 46,057 115,185 (69,128) (60.01)%Restricted 183,500 92,445 91,055 98.50%Unrestricted 48,731 40,045 8,686 21.69 %

Total Net Asscts $ .. 278,288 $ 247,,675 L 30,613 12.36 %

See indepcndent auditors' report.- 9 -

CITY OF BUENA PARK


June 30, 2008


Business-type Activities:

Amount PercentJune 30, June 30, Increase Increase

2008 2007 (Decrease) (Decrease)Assets:

Current and other assets $ 10,465 $ 8,854 $ 1,611 18.20 %Capital assets 18,264 12,429 5,835 46.95%

Total Assets 28,729 21,283 7,446 34.99%

Liabilities:Current liabilitiesLong-term liabilities

Total Liabilities

Net Assets:Invested in capital assets,

net ofrelated debtUnrestricted

2,4521,505

16,8847,888

2,5441,712

__._ 4,256

10,8046,223

(92)(207)

(299)

6,0801,665

(3.62)%(12.09)%

(7.03)%

56.28%26.76%

Total Net Assets $ 24,772 $ 17.027 "",,$~~b,,7.~74",,5 45.49%

The largest portion of the City's net assets reflects its investment in capital assets (i.e., land, buildings,machinery, equipment, and infrastructure), less any related debt utilized to acquire those assets that isstill outstanding. The City uses these capital assets to provide services to its citizens; consequently,these assets are not available for future expenditure. Although the City's investment in its capital assetsis reported net of related debt, the resources needed to repay this debt must be provided from othersources, since capital assets themselves cannot be used to liquidate these liabilities.

An additional portion of the City's net assets represents resources that are subject to external (legallyimposed or statutory) restrictions ($183,500,000 for governmental activities) on how they may be used.This amount represents 65.94% of net assets for governmental activities. The unrestricted portion($48,731,000 for governmental activities and $7,888,000 for business-type activities), the part of netassets that can be used to finance day-to-day operations without constraints, represents 17.5% and31.8% of net assets for governmental and business-type activities, respectively.

See independent auditors' report.- 10-

CITY OF BUENA PARK


June 30, 2008


For governmental and business-type activities, net assets increased by $38,358,000. Contributing tothis increase is $10,965,000 in capital improvements or capital acquisitions (less any dispositions andreplacements of assets and the accumulated depreciation related to all assets currently in use).Approximately half of the capital acquisitions were infrastructure upgrades contributed by developers.Additionally, $6,198,000 in redevelopment property acquisitions contributed to this increase in netassets. In 2007-08, tax revenues increased by $6,000,000, primarily attributable to the net increase of$3,505,000 in sales and use taxes and property taxes in lieu of sales and use taxes, and to the increasein property taxes of $2,171,000. Cash and investments increased by $91,237,000 due in large part bythe infusion of cash from the Redevelopment Agency's 2008 Tax Allocation Bonds in the amount of$75,000,000 for the purpose of funding capital improvement projects.

There was an increase of $91,055,000 in restricted net assets. The majority of the increase iscommitted to future debt service payments, special programs or projects, and for contractor and vendorobligations. Unrestricted net assets increased by $10,351,000.


CITY OF BUENA PARK


June 30, 2008


Change in net assets of GovemmentaI Activities (in thousands) is as folIows:


2008 2007 (Decrease) (Decrease)Revenues:

Program Revenues:Charges for services $ 7,081 $ 6,903 $ 178 2.58 %Operating grants and

contributions 3,692 5,070 (l,378) (27.18) %Capital grants and

contributions 7,385 12,067 14,682) (38.80) %Total Program

Revenues 18,158 24,040 15,882) (24047) %

General Revenues:Property taxes 33,107 30,937 2,170 7.01 %Sales and use taxes 21,697 17,476 4,221 24.15 %Property taxes in lieu of

sales and use taxes 4,804 5,521 (717) (l2.99) %Transient occupancy taxes 4,784 4,938 (l54) (3.12) %Franchise taxes 1,773 1,590 183 11.51 %Other taxes 10,228 9,962 266 2.67 %Investment income 5,533 5,210 323 6.20 %Other revenue 580 577 .52 %

Total GeneralRevenues 82,506 76,211 6,295 8.26 %

Total Revenues 100,664 100,251 413 Al %

Expenses:General government 6,259 6,328 (69) (1.09) %Leisure 3,227 2,649 578 21.82 %Transportation 8,814 7,958 856 10.76 %Public protection 29,208 27,856 1,352 4.85 %Development 15,028 10,959 4,069 37.13 %Environmental 2,635 2,504 131 5.23 %Health 2,830 2,686 144 5.36 %Interest expense 2,384 1,627 757 46.53 %

Total Expenses 70.385 62,567 7.818 12.50 %

Increase in Net Assetsbefore transfers 30,279 37,684 (7,405) (l9.65) %

Transfers 334 330 1.21 %

Change in Net Assets 30,613 38,014 (7,401) (l9A7) %

Net Assets - Beginning ofYear 247,675 209,661 38,014 18.13%

Net Assets - End of Year $ 278,288 L 247,675 $ 3!1613 12.36 %


CITY OF BUENA PARK

~vfAl'.JAGEJvlENT'S DISCUSSION Al~D ANALYSIS(CONTINUED)

June 30, 2008


Governmental Activities (Continued):

The cost of all governmental activities for fiscal year 2007-08 was $70,385,000, However, as shown inthe Statement of Activities, the amount that the taxpayers ultimately financed for these activities wasonly $52,228,000, because some of the cost was paid by those who directly benefited from theprograms ($7,081,000), or by other governments and organizations that subsidized certain programswith operating grants and contributions ($3,692,000), and capital grants and contributions($7,384,000), The City's governmental program revenues were $18,157,000, The City paid for theremaining "public benefit" portion of governmental activities with $82,840,000 in taxes and generalrevenue (some of which could only be used for certain programs) and with other revenues, such asinterest and general entitlements,

Total resources available during the year to finance governmental operations were $348,672,000,consisting ofnet assets at July I, 2007 of$247,675,000, program revenues of$18,157,000, generalrevenues of $82,506,000, and transfers of $334,000, Total expenses for governmental activities duringthe year were $70,385,000, thus net assets were increased by $30,613,000, to $278,288,000,

Program revenues decreased $5,882,000, a 24,7% change from the prior year, This decrease is directlyrelated to the completion of the train station project In the prior fiscal year, the train station projecthad required $5,582,000 in federal transportation administration grants, state gasoline tax revenue, andMeasure M revenue,

Property tax revenue increased $2,170,000, or 7,01% from the previous fiscal year, This increase inproperty taxes is due to the increase in assessed valuation due to significant improvements in the City'sredevelopment areas, In addition to this increase in property values, the City experienced an increaseof $3,505,000, or 152% in the combined total of sales taxes, and of property taxes in lieu of salestaxes, This increase in sales tax is largely attributable to the sales tax true-up reconciliation andestimates as a result of the State's "triple flip", Interest income increased $323,000, a 62% increasefrom the prior fiscal year due to the availability of more funds for investment purposes, Other taxesincreased by $294,000, a change of I ,8%,

See independent auditors' report,- 13 -

CITY OF BUENA PARK

tv1AJ'.JAGE!vlEl~T'S DISCUSSION AND ANALYSIS(CONTINUED)

June 30, 2008



Government-Wide Revenues

Other taxes andrevenue23.0%

Sales and usetaxes26.2%

Charges forservIces

7.0%

Operatinggrants and

contributions3.7%

Capital grantsand

contributious7.3%

Property taxes32.8%

Expenses for the governmental activities increased $7,818,000, or 12.5%. Of this increase, $4,069,000is for development expenses, which reflect the increase in economic development activities as well asimprovement of blighted areas; $1,352,000 for increases in public protection costs due to police salaryand benefit changes and an increase in the Orange County Fire Authority's fire services contract; and$856,000 for transportation related improvements to the City's infrastructure.

Generalgovernment

8.9%

Transportation12.5%

..,- Leisure4.6%

Government-Wide ExpensesInterestexpense

3.4%Health4.0%

Environmental3.7%

Development21.4%

Publicprotection

41.5%


CITY OF BUENA PARK

~vfAt.JAGE~vfEl~T'SDISCUSSION Al'JD ANALYSIS(CONTINUED)

June 30, 2008


Change in net assets of Business-type Aetivities (in thousands) is as follows:

Amount PereentJune 30, June 30, Inerease Increase

2008 2007 (Deereasel (DeereaselRevenues:

Program Revenues:Charges for services $ 12,772 $ 12,559 $ 213 1.69 %Capital grants and

contributions 5,553 588 4.965 844.38%

Total ProgramRevenues 18,325 13,147 5,178 39.39 %

General Revenues:Investment income 347 312 35 11.21%Other revenue 190 190 100.00%

Total GeneralRevenues 537 312 225 72.12%

Total Revenues 18,862 13,459 5,403 40.14 %

Expenses:Water utility 10,783 11,129 (346) (3.11)%

Total Expenses 10,783 11,129 (346) (3.11)%

Increase in Net Assetsbefore transfers 8,079 2330 5,749 246.74%

Transfers (334) (330) 1.21 %

Change in Net Assets 7,745 2,000 5,745 287.25 %

Net Assets - Beginning ofYear 17,027 15,027 2,000 13.31 %

Net Assets - End of Year $ 24,772 $ 11,027 $ 7745 45,49 %


CITY OF BUENA PARK

tvIAl'~AGErvfENT'S DISCUSSION' AND ANALYSIS(CONTINUED)

June 30, 2008

GOVER1'lMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)

Business-type Aetivities (Continued):

The eost of all proprietary (business-type) aetivities this year was $10,783,000. As shown in theStatement of Aetivities and Changes in Net Assets, the amount paid by users of the systems was$12,772,000, investment ineome totaled $537,000, and transfers were $334,000. Beginning net assetswere $17,027,000 and ending net assets were $24,772,000. Of the ending net assets amount,$16,884,000, or 68.2%, was invested in eapital assets and $7,888,000, or 31.8%, was unrestrieted.

There was an inerease in water revenue from the prior year of $213,000. This was due to a rateinerease to eover the inereased eost of water and to fund eurrent and future infrastruetureimprovements. Expenses deereased by $346,000 whieh refleeted the deerease in the amount of waterprodueed. There are two methods of water produetion: Pumping water from the ground, andpurehasing water from the Metropolitan Water Distriet. Pumping water is 40% eheaper thanpurehasing water. However, there are restrietions that limit the amount of water that ean be pumped.These restrietions take into aeeount various faetors including water demand, drought, rainfall, levels ofgroundwater, and eonservation demands. Based on the 2007-08 MWD requirements, more water waspumped than purehased. Aetivity for the 2007-08 fiseal year inereased net assets by $7,745,000 aseompared to an inerease in net assets of $2,000,000 in the 2006-07 fiseal year. However, $5,553,000of this inerease in net assets were infrastrueture eontributions (water lines, mains and serviees) fromproperty developers.

Financial Analysis of thc City's Governmental Funds

Below is an analysis of the City's governmental fund activities for the year (in thousands):

Amount PercentJune 30, June 30, lnerease Increase

2008 2007 (Decrease) (Dcerease)Total Fund Balances:

General Fund $ 41,646 $ 31,712 $ 9,934 31.33 %Redevelopment Agency

Low and ModerateHousing 20,878 16,734 4,144 24.76%

Redevelopment AgencyDebt Serviee 45,980 24,942 21,038 84.35%

Redevelopment AgencyCapital Projects 83,180 24,925 58,255 233.72%

Other GovernmentalFunds 15,185 13,618 1,567 11.51 %

Total FundBalances $ 206.869 ~ ,l11.931 L- 94.938. 84.82%


CITY OF BUENA PARK


June 30, 2008

FInancial Analysis of the City's Governmental Funds (Continued)

AmountJune 30, June 30, Increase

2008 2007 (Decrease)Unreserved Fund Balances:

General Fund $ 36,856 $ 27,915 $ 8,941Redevelopment Agency

Capital Projects 52,398 (496) 52,894Other GovernmentalFunds (25,508) 8,671 (34,179)

Total UnreservedFund Equity L 63",746 ~ 36,090 L, 27.656

PercentIncrease

(Decrease)

32.02 %

(10,664.1 1)%

(394.17)%

76.63%

As of the close of the current fiscal year, the City's governmental fund balances reported a combinedending balance of $206,869,000, an increase of $94,938,000, or 84.8%, in comparison to the prioryear.

The total fund balance at year-end for the City's General Fund was $41,646,000, which is an increaseof $9,934,000, or 31.3% from the previous year. Revenues increased by $7,434,000 primarily due to anincrease in sales tax revenues and investment income. The unreserved fund balance was $36,856,000,or 75.4% of General Fund expenditures. The Redevelopment Agency Low and Moderate HousingFund increased $4,144,000 due to housing set-aside revenues. The Redevelopment Agency DebtService Fund balance increased $21,038,000, of which $10,194,000 is from bond proceeds and$10,806,000 is net tax increment monies which will be used to fund future redevelopment projects andagency obligations. The Redevelopment Agency Capital Projects Fund balance increased $58,255,000because ofbond proceeds.


CITY OF BUENA PARK

tv1A1'~AGEtv1ENT'S DISCUSSION ANDANALY·SIS(CONTINUED)

June 30, 2008

Financial Analysis of the City's Proprietary Funds

Below is an analysis of the fund equity of the City's proprietary funds (in thousands):

AmountJune 30 June 30, Increase

2008 2007 (Decrease)Net Assets:

Water Fund $ 24,772 $ 17,027 $ 7,745Internal Service Funds 8,624 6,414 2,210

Total Net Assets ~ 33,396 ~ 23,441 ~ 9,955

AmountJune 30, June 30, Increase

2008 2007 (Decrease)Unrestricted Net Assets:

Water Fund $ 7,888 $ 6,223 $ 1,665Internal Service Funds 6,079 3,880 2,199

Total UnrestrictedNet Assets L, 13,967 ,$" IQ,103 1--, ,3,864

PercentIncrease

(Decrease)

45.49%34.46%

42.47%

PercentIncrease

(Decrease)

26.75 %56.68%

38.25%

Total net assets of the Water Enterprise Fund increased $7,745,000, and unrestricted net assetsincreased $1,655,000. The increase in net assets is due to developer contributions of a water well andmultiple water lines, mains, and services.

The Internal Service Funds total net assets increased by $2,210,000, and unrestricted net assetsincreased by $2,199,000. The increase in net assets from the prior year was primarily due to adecrease in worker's compensation and public liability claims. The function of the Internal ServiceFunds is to provide services to other City departments. These services include the following:equipment and vehicle maintenance and replacement, worker's compensation, public liability,employee benefits, building and grounds maintenance, and infonnation technology support.


CITY OF BUENA PARK

rv1Al~AGElviEl~T'SDISCUSSION" AND ANALYSIS(CONTINUED)

June 30, 2008

Debt Administration

Below is a schedule of the changes to the City's long-term debt (in thousands). Additional informationon the City's long-term debt is shown in note 6 to the financial statements.

Balance at Balance atJuly 1, June 30,2007 Additions Deletions 2008

Governmental Activities:Tax allocation bonds $ 26,282 $ 75,819 $ (1,399) $ 100,702Loans payable 4,319 4,319Revenue bonds payable 899 (161) 738Claims payable 6,302 819 (1,724) 5,397Employee leave benefits 2,550 699 (599) 2,650

Total GovernmentalActivities 40.352 77.337 (3,883) 113,806

Business-type Activities:Revenue bonds payable 551 (99) 452Loans payable 80 (6) 74Notes payable 994 (139) 855Employee leave benefits -ill) 124

Total Business-typeActivities 1,712 58 (265) 1,505

Total Long-TermObligations $ ~,064 $ 77,395 $ (4,14-8) $ 115,311

At the end of the current fiscal year, the City had bonded debt outstanding of $101,892,000. The entirebonded debt outstanding represents bonds secured solely by specified revenue sources (e,g., taxallocation bonds and revenue bonds), The City's total debt (principal and interest) increased by$73,247,000 during the current fiscal year, In 2007-08, the Redevelopment Agency of the City ofBuena Park issued $75,720,000 in tax allocation bonds for the purposes of constructing the new policefacility, for the expansion of the Ehlers Community Center, and for the purchase of multiple propertiesfor redevelopment improvement.

The City of Buena Park and the Buena Park Redevelopment Agency maintain an "AAA" rating fromStandard & Poor's and an "Aaa" rating from Moody's for both the tax allocation bonds and revenuebonds.


CITY OF BUENA PARK

tv1A:t~AGE~vfENT'SDISCUSSION" AND ANALYSIS(CONTINUED)

June 30, 2008

Capital Assets

The capital assets of the City are the assets having a historic cost of more than $1,000 and a useful lifeof greater than two years that are used in the performance of the City's functions, includinginfrastructure assets. The City has elected to use the "Basic Approach" as defined by GASB StatementNo. 34 for infrastructure reporting. The following infrastructure networks are recorded as capital assetsin the government-wide financial statements:

• Road system, which includes street and alley rights-of-way, pavement, alleys, medians, curbs,gutters, sidewalks, traffic signals, interconnect cables, and bridges.

• Storm drain system, which includes storm drain lines and storm drain catch basins.

• Sewer system, which includes sewer lines.

• Water system, which includes water lines, water wells, and booster pump stations.

Below is a schedule of the City's capital assets, net of accumulated depreciation (in thousands):


2008 2007 (Decrease) (Decrease)Goverumental Activities:

Rights-of-Way $ 48,517 $ 48,369 $ 148 0.31 %Land 5,413 5,416 (3) (0.6) %Construction in progress 7,400 20,202 (12,802) (63.37)%Buildings 25,457 11,482 13,975 121.71 %Improvements 5,190 5,078 112 2.21 %Machinery and equipment 4,900 4,936 (36) (0.73)%Furniture and fixtures 229 225 4 1.78 %Infrastructure:

Road system 47,885 44,158 3,727 8.44 %Stonn drain system 2.506 2,501 0.20 %

Total GoverumentalActivities 147,497 142.367 5,130 3.60 %


CITY OF BUENA PARK

rvfAl~AGElviENT'S DISCUSSION AND ANALYSIS(CONTINUED)

June 30, 2008

Capital Assets (Continued)


2008 2007 (Decrease) (Decrease)Business-type Activities:

Land $ 2 $ 2 $ %Construction in progress 667 4 663 16,575.00 %Buildings 12 14 (2) (14.29)%Improvements 106 112 (6) (5.36)%Pumps and reservoirs 847 887 (40) (4.51)%IIydrants, meters and

connections 862 546 316 57.88 %Machinery and equipment 527 442 85 19.23 %Infrastructure:

Wells 3,300 1,768 1,532 86.65 %Water and sewer lines 11,941 8.654 3,287 37.98 %

Total Business-typeActivities 18,264 12,429 5,835 46.95 %

Total Capital Assets $ 165,761 .~. 15422fi $ 10.965 7.08 %

Capital assets from governmental activities increased $5,130,000, or 3.6%, and business-type activitiesincreased $5,835,000, or 46.9%. The increase in governmental activities capital assets was largely dueto transportation system improvements. For business-type activities the increase was due to developercontributed water mains, lines, and services. Construction is currently in progress for the new PoliceFacility, the Ehlers Recreation Center Expansion, sewer system upgrades and multiple streetimprovements citywide. Further infonnation on the City's capital assets can be found in note 5 of thefinancial statements.

Capital asset and infrastructure projects completed m 2007-08 totaled $21,885,000. Theseimprovements include:

• Train Station facility.• Ehlers Community Center boiler replacement.• Brenner, San Marino, Smith Murphy, and Peak Park improvements.• Knott Avenue improvements.• Orangethorpe Avenue improvements from Valley View to Knott Avenue.• Residential street resurfacing.• Citywide median improvements.


CITY OF BUENA PARK

tv1At.J"AGEtv1Et~T'SDISCUSSION" Al-.JD ANALYSIS(CONTINUED)

June 30, 2008

General Fund Budgetary Highlights

Actual General Fund revenues were $6,308,000 higher than the $55,651,000 budgeted for 2007-08. Ofthis increase, $2,841,000 was due to thc sales taxes true-up reconciliations and estimates as a result ofthe state's "triple flip". A $I ,382,000 variance in investment income was due to the availability ofmore funds for investment purposes.

Comparing the fiscal year 2007-08 General Fund original (or adopted) budget for expcnditures andtransfers amount of $50,302,000 to the final budgeted amount of $71,809,000 shows a net increase of$21,507,000. The increase from the total original budgeted expenditures to the final budget can besummarized as follows:

• Appropriations of $112,000 for general government• Appropriations of $I8,000 for leisure• Appropriations of $327,000 for transportation• Appropriations of $94,000 for public protection• Appropriations of$518,000 for development• Appropriations of$39,000 for environmental• Appropriations of $814,000 for capital outlay• Appropriations of$19,585,000 for other financing sources

The changes between the original and the amended budget were due to increases and adjustments forcapital improvement projects, police protection programs and other public work projects. The largestof the changes was due to the budget increase to transfer monies from the General Fund into the CityCapital Improvement Fund's police facility project.

Overall, the General Fund actual cxpenditures were $19,647,000 less than the final budget. Of thistotal, $17,420,000 is for the transfer to the Capital Projects fund for the police facility project whichwill be largely expended in the next fiscal year; $990,000 is for park improvement projects andinfrastructure upgrades; and $952,000 are professional and contractual services.

Economic Factors and Next Year's Budgets and Ratcs

The key assumptions in the General Fund forecast for fiscal year 2008-09 were:

• Significant slowing in economic activity• Decreasing tax revenues

Contacting the City's Financial Management

This financial report is designed to provide our citizens, taxpayers, customers, and creditors with ageneral overview of the City's finances and to show the City's accountability for the money it receives.If you have questions about this report, separate reports of the City's component units or needadditional financial information, contact the Finance Director's Office, at City of Buena Park,6650 Beach Boulevard, Buena Park, California 90622.


CITY OF BUENA PARK

STATEMENT OF NET ASSETS

June 30, 2008

Governmental Business-typeActivities Activities Total

ASSETS:Cash and investments (Note 3) $ 181,284,944 $ 7,292,289 $ 188,577,233Cash and investments with fiscal agent (Note 3) 12,012,260 712,163 12,724,423Accounts receivable 5,713,121 2,396,937 8,110,058Interest receivable 1,497,385 63,522 1,560,907Taxes receivable 3,958,993 3,958,993Loans receivable 13,286,382 13,286,382Due from other governments 4,134,816 4,134,816Prepaid items 91,329 91,329Deposits 1,544,823 1,544,823Property held for resale 32,256,841 32,256,841Inventory 85,160 85,160Deferred charges 2,822,002 2,822,002Capital assets, not depreciated (Note 5) 61,329,464 670,010 61,999,474Capital assets, depreciated, net (Note 5) 86,167,719 17,594,420 103,762,139

TOTAL ASSETS 406,185,239 28,729,341 434,914,580

LIABILITIES:Accounts payable 3,906,003 1,894,521 5,800,524Accrued liabilities 4,186,165 101,534 4,287,699Deposits payable 1,948,384 448,469 2,396,853Retentions payable 361,178 7,930 369,108Due to other governments 3,689,639 3,689,639Long-term liabilities (Note 6):

Due within one year 3,095,500 273,020 3,368,520Due in morc than one year 110,710,574 1,231,694 111,942,268

TOTAL LIABILITIES 127,897,443 3,957,168 131,854,611

NET ASSETS:Invested in capital assets, net of related debt 46,057,210 16,883,932 62,941,142Restricted for:

Debt service 47,317,287 47,317,287Low and moderate income housing 28,995,322 28,995,322Transportation 10,434,859 10,434,859Specific programs 96,751,621 96,751,621

Unrestricted 48,731,497 7,888,241 56,619,738

TOTAL NET ASSETS $ 278,287,796 $ 24,772,173 $ 303,059,969

See independent auditors! report and notes to basic financial statements.

- 23 -

CITY OF BUENA PARK

STATEMENT OF ACTNITIES

For the year ended June 30, 2008

Functions/ProgramsGovernmental Activities:

General governmentLeisureTransportationPublic protectionDevelopmentEnvironmentalHealthInterest expense

Total governmental activities

Program RevenuesCharges Operating Capital

for Grants and Grants andExpenses Services Contributions Contributions

$ 6,259,025 $ 496,798 $ 203,045 $3,226,397 555,092 1,316,866 151,1908,814,421 312,519 264,323 7,233,261

29,208,062 2,129,714 1,319,28415,027,736 921,367 490,2682,635,123 59,534 98,1412,830,061 2,605,9222,384,266

70,385,091 7,080,946 3,691,927 7,384,451

Business~type activities:Water

Total business-type activities

Total

10,782,831

10,782,831

$ 81,167,922

12,771,933

12,771,933

$ 19,852,879 $ 3,691,927

5,553,100

5,553,100

$ 12,937,551

General revenues:Taxes:

PropertySales and useProperty taxes in lieu of sales and use taxesTransient occupancy taxesFranchiseOther

Investment incomeOther

Transfers

Total general revenues and transfers

Change in net assets

Net assets - beginning of year

Net assets - end of year

S-ee independent auditors! report and notes to basic financial statements.

- 24-

Net (Expense) Revenue andChanges in Net Assets

Governmental Business-typeActivities Activities Total

$ (5,559,182) $ $ (5,559,182)(1,203,249) (1,203,249)

(1,004,318) (1,004,318)(25,759,064) (25,759,064)

(13,616,101) (13,616,101)(2,477,448) (2,477,448)

(224,139) (224,139)

(2,384,266) (2,384,266)

(52,227,767) (52,227,767)

7,542,202 7,542,202

7,542,202 7,542,202

(52,227,767) 7,542,202 (44,685,565)

33,106,858 33,106,85821,697,441 21,697,4414,804,312 4,804,312

4,784,029 4,784,029

1,773,013 1,773,01310,227,905 10,227,905

5,532,811 346,961 5,879,772580,007 189,830 769,837334,000 (334,000)

82,840,376 202,791 83,043,167

30,612,609 7,744,993 38,357,602

247,675,187 17,027,180 264,702,367

$ 278,287,796 $ 24,772,173 $ 303,059,969

- 25 -

CITY OF BUENA PARK

BALANCE SHEET

GOVERNMENTAL Ful-..IDS

June 30, 2008

Redevelopment

Agency RedevelopmentLow and Moderate Agency

Housing Debt

General Special Revenue ServiceASSETS

Cash and investments $ 35,766,116 $ 18,113,701 $ 47,863,538Cash and investments with fiscal agent 1,155,106 168,344 10,287,305Accounts receivable 2,198,694 1,542

Interest receivable 288,705 147,302 729,862Taxes receivable 2,101,040 371,971 1,485,982Loans receivable 7,896,826Due from other governments 3,545,996

Prepaid items 69,185Deposits 451,100Property held for resale 1,860,990Due from other funds (Note 4)

Advances to other funds (Note 4) 9,042,197Inventory 85,160

TOTAL ASSETS $ 54,252,199 $ 29,011,776 $ 60,366,687

LIABILITIES AND FUND BALANCES

LIABILITIES:

Accounts payahle $ 1,066,603 $ 8,564 $ 770,680Accrued liabilities 1,675,778 7,578Due to other governments 3,689,639Deposits payable 1,660,994 312

Retentions payableDue to other funds (Note 4)

Advances from other funds (Note 4) 9,042,197Deferred revenue (Note 13) 8,202,547 8,117,788 883,846

TOTAL LIABILITIES 12,605,922 8,134,242 14,386,362

FUND BALANCES (NOTE 9):

Reserved 4,790,344 20,877,534 45,980,325Unreserved, designated reported in:

General fund 9,926,452Capital projects funds

UnresclVcd, undesignated reported in:General fund 26,929,481Special revenue fundsCapital projects funds

TOTAL FUND BALANCES 41,646,277 20,877,534 45,980,325

TOTAL LIABILITIES AND FUND BALANCES $ 54,252,199 $ 29,011,776 $ 60,366,687

See independent auditors' report and notes to basic financial statements.

- 26-

Redevelopment

Agency Other Total

Capital Governmental GovernmentalProjects Funds Funds

$ 52,432,318 $ 15,485,212 $ 169,660,885

254,275 147,230 12,012,260

99,368 3,312,507 5,612,111

114,780 1,280,649

3,958,993

384,141 4,950,425 13,231,392584,642 4,130,638

69,185

1,093,723 1,544,823

30,395,851 32,256,841233,612 233,612

9,042,197

85,160$ 84,659,676 $ 24,828,408 $ 253,118,746

$ 1,067,366 $ 696,217 $ 3,609,430

27,692 72,021 1,783,0693,689,639

287,078 1,948,384

361,178 361,178233,612 233,612

9,042,197

384,141 7,993,863 25,582,185

1,479,199 9,643,969 46,249,694

31,875,984 40,692,389 144,216,576

9,926,452

1,500,000 1,500,000

26,929,4813,585,133 3,585,133

49,804,493 (29,093,083) 20,711,410

83,180,477 15,184,439 206,869,052

$ 84,659,676 $ 24,828,408 $ 253,118,746

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- 28-

CITY OF BUENA PARK

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SIIEETTO TIIE STATEMENT OF NET ASSETS

June 30, 2008

Fund balances for governmental funds

Amounts reported for governmental activities in the Statement of Net Assets are different because:

Capital assets, net of depreciation, have not been included as financial resources

in governmental fund activity.

$ 206,869,052

144,951,696

Long-tenn liabilities applicable to the City governmental activities are not due and payable

in the current period and accordingly are not reported as fund liabilities. Also, bond

issuance costs are not recorded as assets under the modified accrual basis of accounting

All liabilities, both current and long-tcnn, are reported in the Statement of Net Assets,

Balances at June 30, 2008 are:

Tax allocation bonds payable

Loans payable

Revenue bonds payable

Deferred charges for issuance costs

Deferred charge on refunding of bondsBond premium

Compensated absences

Accrued interest payable from the current portion of interest due on bonds payable has

not been reported in the governmental funds.

Long-term assets that are not available for current use. Amounts are recorded as

deferred revenue under the modified accrual basis of accounting.

Interest receivable which is not considered available to finance cutTent expenditures is

not reported in the governmental funds. For the Statement of Net Assets, this amount

is accrued as it pertains to the current fiscal year.

Internal service funds are used by management to charge the costs of certain activities,

such as equipment management, to individual funds. The assets and liabilities of

the internal service funds must be added to the Statement of Net Assets.

Net assets of governmental activities


- 29-

$ (100,870,000)(4,318,718)

(737,800)2,822,002

314,498(146,671)

(2,556,655) (105,493,344)

(2,368,886)

25,582,185

122,763

8,624,330

$ 278,287,796

CITY OF BUENA PARK

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESGOVERN-MENTAL FUNDS


RedevelopmentAgency Redevelopment

Low and Moderate AgencyHousing Debt

General Special Revenue ServiceREVENUES:

Taxes $ 44,776,919 $ 5,339,346 $ 20,679,971Licenses and permits 474,847Fines and forfeitures 957,829Intergovernmental 7,175,156 16,847Charges for services 5,631,423Investment income 2,051,451 833,033 2,146,146Miscellaneous 69,385 20,922

TOTAL REVENUES 61,137,010 6,210,148 22,826,117

EXPENDITURES:

Current:

General government 5,499,913Leisure 1,961,774Health 2,830,061Transportation 5,099,052Public protection 28,160,289Development 1,684,635 1,759,547 7,503,522Environmental 2,654,326

Capital outlay 773,800Debt service:

Principal retirement 161,200 184,750 1,255,250Interest and other charges 45,985 122,263 1,442,497Bond issuance costs 2,085,508

TOTAL EXPENDITURES 48,871,035 2,066,560 12,286,777

EXCESS OFREVENDES OVER

(UNDER) EXPENDITURES 12,265,975 4,143,588 10,539,340

OTHER FINANCING SOURCES (USES):

Trausfers in (Note 4) 384,685 206,177Transfers out (Note 4) (3,291,207) (65,526,000)Sale of property 575,000Proceeds of bond issuance 75,720,000Bond premium 99,183

TOTAL OTHER FINANCING SOURCES (USES) (2,331,522) 10,499,360

NET CHANGE IN FUND BALANCES 9,934,453 4,143,588 21,038,700

FUND BALANCES - BEGINNING OF YEAR 31,711,824 16,733,946 24,941,625

FUND BALANCES - END OF YEAR $ 41,646,277 $ 20,877,534 $ 45,980,325


- 30-

Redevelopment

Agency Other Total

Capital Governmental GovernmentalPrqjects Funds Funds

$ $ 352,230 $ 71,148,466

474,847

957,829

9,434,305 16,626,308

5,631,423

152,873 732,282 5,915,785

491,777 1,115,829 1,697,913

644,650 11,634,646 102,452,571

66,883 5,566,796

1,000,000 2,961,774

2,830,061

397,474 5,496,526

722,521 28,882,810

4,742,411 2,587,120 18,277,2352,654,326

68,731 9,330,435 10,172,966

1,601,200

317,796 1,928,5412,085,508

5,128,938 14,104,433 82,457,743

(4,484,288) (2,469,787) 19,994,828

65,526,000 6,961,746 73,078,608

(2,786,737) (2,925,660) (74,529,604)

575,000

75,720,00099,183

62,739,263 4,036,086 74,943,187

58,254,975 1,566,299 94,938,015

24,925,502 13,618,140 111,931,037

$ 83,180,477 $ 15,184,439 $ 206,869,052

- 31 -


- 32-

CITY OF BUENA PARK

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITlJRES AND CHANGES IN FUND BALANCES

TO THE STATEMENT OF ACTIVITIES


Net change in fund balances - total governmental funds

Amounts reported for governmental activities in the Statement of Activities are different because:

$ 94,938,015

Governmental funds report capital outlays as expenditures. However, in the Statement ofActivities, the cost of those assets is allocated over the estimated useful lives as depreciationexpense. This is the amount by which capital outlays and disposition of capital assets, net,exceeded depreciation in the current periodCapital expendituresDisposition of capital assetsDepreciation expense

The issuance of long term debt provides current financial resources to governmental funds,while the repayment of the principal of long-tenn debt consumes the current financialresources of governmental funds. Neither transaction, however, has any effect on net assets.Also, governmental funds report the effect of issuance costs, premiums, discounts and similaritems when the debt is first issued, whereas these amounts are deferred and amortized in theStatement of Activities. These amounts are the net effect of theses differences in the treatmentof long-tenn debt and related items:Principal paymentsProceed of bond issuanceBond premiumBond issuance costs

Some expenses reported in the Statement of Activities do not require the use of currentfinancial resources and therefore are not reported as expenditures in the governmental funds:Interest expenseAmortization of bond premiumAmortization of deferred charge on refundingAmortization of issuance costsCompensated absences

Governmental funds report long-term rehabilitation loans made as expenditures andrepayments of those loans as revenues. However, these transactions have no effectin the Statement of Activities. The loan activity for the current period is as follows:Loans madeLoans repaid

Some revenues reported in the statement of activities are not considered to be availableto finance current expenditures and therefore are not reported as revenues in thegovernmental funds:Intergovernmental incomeProperty taxSales taxInvestment income

Internal service funds are used by management to charge the costs of certain activities,such as equipment management, to individual funds. The net revenues (expenses) ofthe internal service funds is reported with governmental activities.

Change in net assets of governmental activities


- 33 -

$ 9,707,367(1,399,381)(3,189,613)

1,601,200(75,720,000)

(99,183)2,085,508

(987,648)3,899

(44,400)(57,332)(95,855)

3,387,082(258,684)

(1,131,955)237,154

(983,967)409,967

5,118,373

(72,132,475)

(1,181,336)

3,128,398

(1,468,801)

2,210,435

$ 30,612,609

CITY OF BUENA PARK

STATEMENT OF NET ASSETS

PROPRIETARY FlJl"luS

June 30, 2008

Business-type GovernmentalActivities Activities

Water InternalEnterprise Fund Service Funds Total

ASSETSCURRENT ASSETS:

Cash and investments $ 7,292,289 $ 11,624,059 $ 18,916,348Restricted cash and investments 712,163 712,163Accounts receivable, net 2,396,937 101,010 2,497,947Interest receivable 63,522 93,973 157,495Loans receivable 54,990 54,990Due from other governments 4,178 4,178Prepaid items 22,144 22,144

TOTAL CURRENT ASSETS 10,464,911 11,900,354 22,365,265

NONCURRENT ASSETS:Capital assets, net of accumulated depreciation 18,264,430 2,545,487 20,809,917

TOTAL ASSETS 28,729,341 14,445,841 43,175,182

LIABILITIESCURRENT LIABILITIES:

Accounts payable 1,894,521 296,573 2,191,094Accrued liabilities 74,882 34,210 109,092Deposits payable 448,469 448,469Retentions payable 7,930 7,930Employee leave benefits 17,500 20,757 38,257Loans payable 7,283 7,283Notes payable 143,737 143,737Claims payable 850,000 850,000

TOTAL CURRENT LIABILITIES 2,594,322 1,201,540 3,795,862

CURRENT LIABILITIES PAYABLEFROM RESTRICTED ASSETS:

Interest payable 26,652 26,652Revenue bonds payable ]04,500 104,500

TOTAL CURRENT LIABILITIES PAYABLEFROM RESTRICTED ASSETS 131,152

TOTAL CURRENT LIABILrflES 2,725,474 1,201,540 3,927,014

NONCURRENT LIABILITIES:Loans payable 66,343 66,343Revenue bonds payable 347,700 347,700Notes payable 710,935 7]0,935Employee leave benefits 106,716 72.468 179,184Claims payable 4,547,503 4,547,503

TOTAL NONCURRENT LIABILITIES ],231,694 4,619,971 5,85],665

TOTAL LIABILITIES 3,957,]68 5,821,5] 1 9,778,679

NET ASSETSInvested in capital assets, net of related debt ]6,883,932 2,545,487 ]9,429,4]9Unrestricted 7,888,241 6,078,843 13,967,084

TOTAL NET ASSETS $ 24,772,173 $ 8,624,330 $ 33,396,503


- 34-

CITY OF BUENA PARK

STATEMENT OF REVENUES, EXPENSES ANDCHANGES IN NbT ASSETS

PROPRIETARY FUNDS




OPERATING REVENUES:Charges for services $ 12,771,933 $ 5,471,881 $ 18,243,814

OPERATING EXPENSES:Self-insurance 1,287,119 1,287,119Employee benefits 181,299 181,299Maintenance and supplies 3,044,615 3,044,615Information systems 360,757 360,757Water services 9,668,696 9,668,696

Health services 549,716 549,716Depreciation 502,282 728,877 1,231,159

TOTAL OPERATING EXPENSES 10,720,694 5,602,667 16,323,361

OPERATING INCOME (LOSS) 2,051,239 (130,786) 1,920,453

NONOPERATING REVENUES (EXPENSES):Investment income 346,961 511,038 857,999Grants 189,830 189,830Gain on sale of property 45,187 45,187Interest expense (62,137) (62,137)

TOTAL NONOPERATING REVENUES (EXPENSES) 474,654 556,225 1,030,879

INCOME BEFORE TRANSFERSAND CAPITAL CONTRIBUTIONS 2,525,893 425,439 2,951,332

TRANSFERS IN 1,799,996 1,799,996TRANSFERS OUT (334,000) (15,000) (349,000)CAPITAL CONTRIBUTIONS 5,553,100 5,553,100

CHANGE IN NET ASSETS 7,744,993 2,210,435 9,955,428

TOTAL NET ASSETS - BEGINNING OF YEAR 17,027,180 6,413,895 23,441,075

TOTAL NET ASSETS - EJ\JD OF YEAR $ 24,772,173 $ 8,624,330 $ 33,396,503


- 35-

CITY OF BUENA PARK

STATEMENT OF CASH FLOWSPROPRIETARY FLJl'luS




CASH FLOWS FROM OPERATING ACTIVITIES:Receipts from user departments $ $ 5,460,895 $ 5,460,895Receipts from customers 12,515,386 12,515,386Payments to suppliers for goods and services (8,329,967) (4,722,704) (13,052,671)Payments to employees for services (1,987,559) (1,121,637) (3,109,196)

NET CASH PROVIDED (USED)BY OPERATING ACTNITIES 2,197,860 (383,446) 1,814,414

CASH FLOWS FROM NONCAPITALFINANCING ACTIVITIES:

Grant revenue 189,830 189,830Cash received from other funds 1,799,996 1,799,996Cash paid to other funds (334,000) (15,000) (349,000)

NET CASH PROVIDED (USED) BYNONCAPITAL FINANCING ACTNITIES (144,170) 1,784,996 1,640,826

CASH FLOWS FROM CAPITAL ANDRELATED FINANCING ACTNITIES:

Acquisition and construction of capital assets (784,191) (749,334) (1,533,525)Sale of capital assets 53,778 53,778Principal paid (244,576) (244,576)Interest paid (67,013) (67,013)

NET CASH USED BY CAPITAL ANDRELATED FINANCING ACTNITIES (1,095,780) (695,556) (1,791,336)

CASH FLOWS FROM INVESTING ACTNITIES:Interest received 346,806 527,334 874,140

NET CASH PROVIDED BY INVESTING ACTNITIES 346.806 527,334

NET INCREASE IN CASHAND CASH EQUIVALENTS 1,304,716 1,233,328 2,538,044

CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 6,699,736 10,390,731 17,090,467

CASH AND CASH EQUIVALENTS - END OF YEAR $ 8,004,452 $ 11,624,059 $ 19,628,511

See independent auditorsl report and notes to basic financial statements. (Continued)

- 36 -

CITY OF BUENA PARK

STATEMENT OF CASH FLOWSPROPRIETARY Fl.J1'luS

(CONTINUED)



Water !uteroalEnterprise Fund Service Funds Total

RECONCILIATION OF OPERATING INCOME (LOSS) TONET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:

Operating income (loss) $ 2,051,239 $ (130,786) $ 1,920,453Adjustments to reconcile operating income (loss) to

net cash provided (used) by operatiug activities:Depreciation 502,282 728,877 1,231,159

Changes in operating assets and liabilities:(Increase) decrease in accounts receivables (306,227) (6,808) (313,035)(Increase) decrease in loans receivable (12,644) (12,644)(Increase) decrease in due from other governments (4,178) (4,178)

(Increase) decrease in prepaid items (3,534) (3,534)Increase (decrease) in accounts payable (139,421) (54,235) (193,656)Increase (decrease) in accrued liabilities 3,185 158 3,343!ucrease (decrease) in deposits payable 49,680 49,680

Increase (decrease) in employee leave benefits 37,122 4,292 41,414Increase (decrease) in claims payable (904,588) (904,588)

TOTAL ADJUSTMENTS 146,621 (252,660) (106,039)

NET CASH PROVIDED (USED)BY OPERATING ACTIVITIES $ 2,197,860 $ (383,446) $ 1,814,414

The Water Enterprise Fund received capital contributions in the fann of donated capital assets totaling $5,553,100.


- 37 -


- 38-

CITY OF BUENA PARK

NOTES TO FINANCIAL STATEMENTS

June 30, 2008

1. DESCRIPTION OF REPORTING ENTITY:

The accounting policies of the City confonn to accounting principles generally accepted in theUnited States of America, as applicable to governments. As required by accounting principlesgenerally accepted in the United States of America, these financial statements present the City andits component units, entities for which the City is considered to be financially accountable. TheCity is considered to be financially accountable for an organization if the City appoints a votingmajority of that organization's governing body and the City is able to impose its will on thatorganization or there is a potential for that organization to provide specific financial benefits to orimpose specific financial burdens on the City. The City is also considered to be financiallyaccountable for an organization, if that organization is fiscally dependent upon the City (i.e., it isunable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approvalfrom the City). In certain cases, other organizations are included as component units if the natureand significance of their relationship with the City are such that their exclusion would cause theCity's financial statements to be misleading or incomplete.

Included within the City of Buena Park financial reporting entity are: the Redevelopment Agencyof the City of Buena Park (the Agency) and the Buena Park Foundation (the Foundation). TheAgency and the Foundation are separate legal entities which are included in the City's reportbecause the City Council serves as the governing body for these component units. OnSeptember 6,1988, the City Council of Buena Park approved Resolution No. 8729 which createdthe Buena Park Public Financing Authority (the Authority). As ofJune 30, 2008, the Authority hashad no financial activity.

The City of Buena Park was incorporated January 27, 1953 under the general laws of the State ofCalifornia and enjoys all the rights and privileges pertaining to such "General Law" cities.

The Redevelopment Agency of the City of Buena Park was established April 20, 1972 pursuant tothe State of California Health and Safety Code, Section 33000 entitled "CommunityRedevelopment Law". Its purpose is to prepare and carry out plans for improvement, rehabilitationand redevelopment of blighted areas within the territorial limits of the City of Buena Park. Theactivities of the Agency are presented in the accompanying financial statements in a specialrevenue fund, a debt service fund and a capital projects fund.

The Buena Park Foundation was created September 10, 1982 and has been awarded tax-exemptstatus under Section 501 (c)(3) of the Internal Revenue Code. Its purpose is to produce accessprogramming to independent civic organizations and to award scholarships to students in thecommunications field. The activities of the Foundation are presented in the accompanying financialstatements in a special revenue fund.


CITY OF BUENA PARK

NOTES TO FINANCIAL STATEMENTS(CONTINUED)

June 30, 2008

1. DESCRIPTION OF REPORTING ENTITY (CONTINUED):

Since the City Council serves as the governing board for its component units, all of the City'scomponent units are considered to be blended component units. Blended component units,although legally separate entities, are in substance, part of the City's operations and so data fromthese units are reported with the interfund data of the primary government. Upon their completion,financial statements of the component units can be obtained at City Hall.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

A. Measurement Focus and Basis of Accounting:

The basic financial statements of the city are composed of the following:

• Government-wide financial statements

• Fund financial statements

• Notes to financial statements

Financial reporting is based upon all GASB pronouncements, as well as the FASB Statementsand Interpretations, APB Opinions and Accounting Research Bulletins that were issued on orbefore November 30,1989 that do not conflict with or contradict GASB pronouncements.FASB pronouncements issued after November 30, 1989 are not followed in preparation of theaccompanying financial statements.

Government-wide Financial Statements

Government-wide financial statements display infonnation about the reporting government as awhole. These statements include separate columns for the governmental and business-typeactivities of the primary government (including its blended component units). Eliminationshave been made in the Statement of Activities so that certain allocated expenses are recordedonly once (by the function to which they were allocated). However, general governmentexpenses have not been allocated as indirect expenses to the various functions of the City.Interfund services provided and used are not eliminated in the process of consolidation.


CITY OF BUENA PARK


June 30, 2008

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):

A. Measurement Foeus and Basis of Accounting (Continued):

Government-wide Financial Statements (Continued)

Government-wide financial statements are presented usmg the economic resourcesmeasurement focus and accrual basis of accounting. Under the economic resourcesmeasurement focus, all (both current and long-term) economic resources and obligations of thereporting government are reported in the government-wide financial statements. Basis ofaccounting refers to when revenues and expenses are recognized in the accounts and reported inthe financial statements. Under the accrual basis of accounting, revenues, expenses, gains,losses, assets and liabilities resulting from exchange and exchange-like transactions arerecognized when the exchange takes place. Revenues, expenses, gains, losses, assets andliabilities resulting from nonexchange transactions are recognized in accordance with therequirements of GASB Statement No. 33.

Program revenues include charges for services and payments made by parties outside thereporting government's citizenry if that money is restricted to a particular program. Programrevenues are netted with program expenses in the statement of activities to present the net costof each program.

Amounts paid to acquire capital assets are capitalized as assets in the government-widefinancial statements, rather than reported as expenditures. Proceeds of long-term debt arerecorded as a liability in the government-wide financial statements, rather than as an otherfinancing souree. Amounts paid to reduce long-term indebtedness of the reporting governmentare reported as a reduction of the related liability, rather than as expenditures.

When both restricted and unrestricted resources are combined in a fund, expenses areconsidered to be paid first from restricted resources, and then from unrestricted resources.

Fund Financial Statements

The underlying accounting system of the City is organized and operated on the basis ofseparate funds, each of which is considered to be a separate accounting entity. The operationsof each fund are accounted for with a separate set of self-balancing accounts that comprise itsassets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate.Governmental resources are allocated to and accounted for in individual funds based upon thepurposes for which they are to be spent and the means by which spending activities arecontrolled.


CITY OF BUENA PARK


June 30, 2008


A. Measurement Focus and Basis of Accounting (Continued):

Fund Financial Statements (Continued)

Fund financial statements for the primary government's governmental and proprietarystatements display information about major funds individually and other funds in the aggregate.

Governmental Funds

In the fund financial statements, governmental funds are presented using the modified-accrualbasis of accounting. Revenues are recognized when they become measurable and available asnet current assets. Measurable means that the amounts can be estimated, or otherwisedetennined. Available means that the amounts were collected during the reporting period orsoon enough thereafter to be available to finance the expenditures accrued for the reportingperiod. The City uses an availability period of 60 days.

Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in lieu, transientoccupancy taxes, grants and interest associated with the current fiscal period are all consideredto be susceptible to accrual and have been recognized as revenues of the current fiscal period tothe extent nonnally collected within the availability period. Other revenue items are consideredto be measurable and available when cash is received by the City.

Exchange transactions are recognized as revenues in the period in which they are earned (i.e.,the related goods or services are provided). Locally imposed derived tax revenues arerecognized as revenues in the period in which the underlying exchange transaction upon whichthey are based takes place. Imposed nonexchange transactions are recognized as revenues inthe period for which they were imposed. If the period of use is not specified, they arerecognized as revenues when an enforceable legal claim to the revenues arises or when they arereceived, whichever occurs first. Government-mandated and voluntary nonexchangetransactions are recognized as revenues when all applicable eligibility requirements have beenmet.

In the fund financial statements, governmental funds are presented using the current financialresources measurement focus. This means that only current assets and current liabilities aregenerally included on their balance sheets. The reported fund balance (net current assets) isconsidered to be a measure of "available spendable resources". Governmental fund operatingstatements present increases (revenues and other financing sources) and decreases(expenditures and other financing uses) in net current assets. Accordingly, they are said topresent a summary of sources and uses of"available spendable resources" during a period.


CITY OF BUENA PARK


June 30, 2008



Governmental Funds (Continued)

Noncurrent portions of long-term receivables due to governmental funds arc reported on theirbalance sheets in spite of their spending measurement focus. Special reporting treatments areused to indicate, however, that they should not be considered "available spendable rcsources",since they do not represent net current assets.

Recognition of governmental fund type revenue represented by noncurrent receivables isdeferred until they become current receivables. Noncurrent portions of other long-termreceivables are offset by fund balance reserve accounts.

Due to the nature of their spending measurement focus, expenditure recogmtlOn forgovernmental fund types excludes amounts represented by noncurrent liabilities. Since they donot affect current assets, such long-term amounts are not recognized as goverrunental fund typeexpenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year thatresources were expended, rather than as fund assets. The proceeds of long-term debt arerecorded as other financing sources rather than as a fund liability. Amounts paid to reducelong-term indebtedness are reported as fund expenditures.

Proprietary Funds

The City's enterprise and internal service funds are proprietary funds. In the fund financialstatements, proprietary funds are presented using the accrual basis of accounting. Revenues arerecognized when they are earned and expenses are recognized when the related goods orservices are delivered. In thc fund financial statements, proprietary funds are presented usingthe economic resources measurement focus. This means that all assets and all liabilities(whether current or noncurrent) associated with their activity are included on their balancesheets. Proprietary fund type operating statements present increases (revenues) and decreases(expenses) in total net assets.


CITY OF BUENA PARK


June 30, 2008



Proprietary Funds (Continued)

Proprietary fund operating revenues, such as charges for services, result from exchangetransactions associated with principal activity of the fund. Exchange transactions are those inwhich each party receives and gives up essentially equal values. Nonoperating revenues, suchas subsidies, taxes, and investment earnings result from nonexchange transactions or anciIlaryactivities. Amounts paid to acquire capital assets are capitalized as assets in the enterprise fundfinancial statements, rather than reported as expenses. Proceeds oflong-term debt are recordedas a liability in the enterprise fund financial statements, rather than as an other financingsource. Amounts paid to reduce long-term indebtedness of the enterprise fund are reported as areduction of the related liability, rather than as an expense.

B. Fund Classifications:

The City reports the following major governmental funds:

The General Fund is the general operating fund of the City. All general tax revenues and otherreceipts that are not allocated by law or contractual agreement to some other fund are accountedfor in this fund. Expenditures of this fund include the general operating expenditures andcapital improvement costs which are not paid through other funds.

The Redevelopment Agency Low and Moderate Housing Special Revenue Fund is used toaccount for approved improvements to City residential structures for persons of low andmoderate income. Financing is provided by a portion of property tax increment incomecollected by the County.

The Redevelopment Agency Debt Service Fund is used to account for that portion of taxincrement revenue that is set aside for repayment of long-term debt of the RedevelopmentAgency.

The Redevelopment Agency Capital Projects Fund is used to account for financial resources tobe used for the development and redevelopment associated with the Redevelopment ProjectAreas.


CITY OF BUENA PARK


June 30, 2008


B. Fund Classifications (Continued):

The City reports the following major propriety fund:

The Water Enterprise Fund is used to account for the costs (including dcpreciation) ofproviding water services to the general public and to account for the user charges by whichthese costs are recovered.

Additionally, the City reports the following fund types:

The Special Revenue Funds are used to account for specific revenues that are legally restrictedto expenditure for a particular purpose.

The Capital Projects Funds are used to account for the acquisition and construction of majorcapital facilities.

The Internal Service Funds are used to finance and account for activities involved in renderingmanagement information, equipment replacement and maintenance, building maintenance,employee benefits and self-insurance services to departments within the City. Costs ofmaterials and services used are accumulated in these funds and charged to the user departmentsas such goods are delivered or services are rendered.

C. Transfers:

Transfers are reported as other financing sources and uses of funds in the governmental fundsstatement ofrevenues, expenditures and changes in fund balances.

D. Advances to Other Funds:

Long-term interfund advances are recorded as a receivable and as reserved fund balance by theadvancing governmental fund (net of any related deferred revenue recorded).

E. Cash and Investments:

Investments are reported in the accompanying balance sheet at fair value, except for certaininvestment contracts that are reported at cost because they are not transferable and they haveterms that are not affected by changes in market interest rates.


CITY OF BUENA PARK


June 30, 2008


E. Cash and Investments (Continued):

Changes in fair value that occur during a fiscal year are recognized as investment incomereported for that fiscal year. Investment income includes interest earnings, changes in fairvalue, and any gains or losses realized upon the liquidation, maturity, or sale of investments.

The City pools cash and investments of all funds. Each fund's share in this pool is displayed inthe accompanying financial statements as cash and investments. Investment income earned bythe pooled investments is allocated to the various funds based on each fund's average cash andinvestment balance.

F. Cash Equivalents:

For purposes of the statement of cash flows, cash equivalents represents demand deposits ofproprietary funds held in financial institutions or in cash management pools where funds can beadded or withdrawn at any time without prior notice or penalty and cash equivalents are highlyliquid investments with a maturity of three months or less from the date ofpurchase.

G. Inventories:

Inventories held by the general fund are stated at cost on a first-in, first-out basis. The generalfund inventories are recorded as an expenditure when used (consumption method).

H. Property Held for Resale:

Property held for resale represents land, structures and their related improvements that wereacquired for resale in accordance with the objectives of the Central Business DistrictRedevelopment Project. These costs will be charged to current year project expenditures whenthe related land and structures are sold. Property held for resale is valued at the lower of cost ormarket.

A portion of fund balance is reserved for property held for resale to indicate that a portion offund balance is not available for future expenditures.


CITY OF BUENA PARK


June 30, 2008


1. Capital Assets:

Capital assets (including infrastructure) are recorded at historical cost at the time of purchase.Assets acquired from gifts or contributions are recorded at fair market value on the datereceived. Generally, capital asset purchases in excess of $1 ,000 are capitalized if they have anexpected useful life of two years or more.

Capital assets include public domain (infrastructure) capital assets such as roads, bridges, curbsand gutters, pavement, alleys, traffic signals, interconnect cables, streets, sidewalks, medians,sewers and storm drains.

Capital assets used in operations are depreciated over their estimated useful lives using thestraight-line method in the government-wide financial statements and in the fund financialstatements of the proprietary funds. Depreciation is charged as an expense against operationsand accumulated depreciation is reported on the respective balance sheet.

The ranges oflives used for computing depreciation for each capital asset class are as follows:

BuildingsPumping plant, reservoir, wellsDistribution systemSewer linesWater systemImprovementsMachinery and equipmentFurniture and fixturesInfrastructure:

Road systemStorm drain system

J. Employee Leave Benefits:

20 - 45 years15 - 50 years25 - 50 years

75 years20 - 75 years10 - 40 years2 - 20 years2 - 20 years

25 - 75 years75 years

A liability is recorded for unused vacation and similar compensatory leave balances since theemployees' entitlement to these balances are attributable to services already rendered and it isprobable that virtually all of these balances will be liquidated by either paid time off orpayments upon termination or retirement.


CITY OF BUENA PARK


June 30, 2008


J. Employee Leave Benefits (Continued):

A liability is recorded for unused sick leave balances only to the extent that it is probable thatthe unused balances will result in termination paymcnts. This is estimated by including in theliability the unused balances of employees currently entitled to receive termination payments,as well as those who are expccted to become eligible to receive termination benefits as a resultof continuing their employment with the City. Other amounts of unused sick leave areexcluded from the liability since their payment is contingent solely upon the occurrence of afuture evcnt (illness) which is outside the control of the City and the employee.

Permanent general City employees carn from 80 to 160 vacation hours a year, depending upontheir length of employment, and 96 sick Icave hours a year. Employees can carry forward up to320 hours in earned but unused vacation hours and an unlimited number of sick hours for use inthe subsequent years.

Upon termination or retirement, permanent employees are entitled to receive compensation attheir current base salary for all unused vacation leave, except for those employees that have notcompleted twelve months of continuous service. Nonmanagement employees are not eligiblefor sick leave benefits upon termination if appointed on or after October 4, 1982. Otheremployees retiring with a minimum of 5 years service (or terminating with a minimum of10 years service) are entitled to receive from 20% to 50% of the value of the unused sick leavefor up to 960 hours.

If material, a proprietary fund liability is accrued for all earned but unused leave benefitsrelating to the operations of the proprietary funds.

K. Claims and Judgments:

The City records a liability for litigation, judgments and claims when it is probable that an assethas been impaired or a liability has been incurred prior to year-end and the probable amount ofloss (net of any insurance coverage) can be reasonably estimated. This liability is recorded inthe internal service funds which account for the City's self-insurance activities.

L. Use of Estimates:

The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States of America requires management to make estimates andassumption that affect the reported amounts of assets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statements and the reported amountsof revenues and expenditures during the reporting period. Actual results could differ fromthose estimates.


CITY OF BUENA PARK


June 30, 2008

3. CASH AND INVESTMENTS:

Cash and investments at June 30, 2008 are classified in the accompanying financial statements asfollows:

GovernmentWide

Statement ofNet Assets

Cash and investmentsCash and investments with fiscal agents

$ 188,577,23312,724,423

$ 201.301.656

Cash and investments at June 30, 2008 consisted of the following:

Demand accountsPetty cashEscrow depositsInvestments

Total Cash and Investments

$ 2,918,68324,748

569,849197,788,376

:L201.301.656

Investments Authorized by the California Government Code and the City's InvestmentPolicy:

The table below identifies the investment types that are authorized for the City by the CaliforniaGovernment Code (or the City's investment policy, where more restrictive). The table alsoidentifies certain provisions of the California Government Code (or the City's investment policy,where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.This table does not address investments of debt proceeds held by bond trustee that are governed bythe provisions of debt agreements of the City, rather than the general provisions of the CaliforniaGovernment Code or the City's investment policy.


CITY OF BUENA PARK


June 30, 2008

3. CASH AND INVESTMENTS (CONTINUED):

Investments Authorized by the California Government Code and the City's InvestmentPolicy (Continued):

Authorized Investment TypeU.S. Treasury Bills, Bonds and NotesU.S. Government Sponsored

Enterprise SecuritiesBanker's Acceptances NotesNegotiable Certificates of DepositsRepurchase AgreementsMedium-Term Corporate NotesCommercial PaperLocal Agency Investment Fund (LAIF)Mutual Fund Administered by a Major Bank

N/A - Not Applicable

Investments Authorized by Debt Agreements:

MaximumMaturity

5 years

5 years180 days

5 years10 days5 years

270 daysN/A

5 years

MaximumAmount orPercentageAllowed

None

None20%30%15%30%20%35%15%

MaximumInvestment

in One IssuerNone

None30%

NoneNoneNone10%

NoneNone

Investment of debt proceeds held by bond trustee are governed by provlSlons of the debtagreements, rather than the general provisions of the California Government Code or the City'sinvestment policy. Investments authorized for funds held by bond trustee include, U.S. TreasuryObligations, U.S. Government Sponsored Enterprise Securities, Certificates of Deposits,Commercial Paper, Local Agency Bonds, Banker's Acceptance, Money Market Mutual Funds,Investment Contracts and Repurchase Agreements. There were no limitations on the maximumamount that can be invested in one issuer, maximum percentage allowed or the maximum maturityof an investment, except for the maturity of Banker's Acceptance and Certificates of Depositswhich are limited to one year.


CITY OF BUENA PARK


June 30, 2008

3. CASH AND INVESTMENTS (CONTIl\TUED):

Disclosures Relating to Interest Rate Risk:

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair valueof an investment. Generally, thc longer the maturity of an investment, the greater the sensitivity ofits fair value to changes in market interest rates. One of the ways that the City manages itsexposure to interest rate risk is by purchasing a combination of shorter term and longer terminvestments and by timing cash flows from maturities so that a portion of the portfolio is maturingor coming close to maturity evenly over time as necessary to provide the cash flow and liquidityneeded for operations.

Information about the sensitivity of the fair values of the City's investments (including investmentsheld by bond trustee) to market interest rate fluctuations is provided by the following table thatshows the distribution of the City's investments by maturity:

Remaining Maturity (in Months)

12 Months 13 ·24 25·60 Over

Investment Type or Less Months Months 60 Months

U.S. Treasury Securities $ $ 3,292,218 $ 11,810,764 $ $ 15,102,982

U.S. Government Sponsored

Enterprise Securities 11,395,841 19,417,081 25,545,145 56,358,067

Medium·Term Corporate

Notes (MTN) 4,074,401 6,746,481 10,820,882

Money Market Mutual Funds 25,062,746 25,062,746

Commercial Paper 3,200,000 3,200,000

Local Agency Investment Fund (LA1F) 75,084,125 75,084,125Held by Bond Trustee:

Money Market Mutual Funds 10,487,608 10,487,608

Investment Agreements 1,671,966 1,671,966

$129304.721 $ 29455780 ~d]~.:i5,902 $~.671,966 8J.27.788.376


CITY OF BUENA PARK


June 30, 2008


Disclosures Relating to Credit Risk:

Generally, crcdit risk is the risk that an issuer of an investment will not fulfill its obligation to theholder of the investment. This is measured by the assigmnent of a rating by a nationally recognizedstatistical rating organization. Presented below is the minimum rating required by (whereapplicable) the California Government Code, the City's investment policy, or debt agreements, andthe Standard and Poor's rating as of year end for each investment type:

Total Minimum Notas of Legal Required

Investment Type June 30. 2008 Rating AAA Other Unrated to be RatedU.S. Treasury Securities $ 15,102,982 N/A $ - $ - $ $ 15,102,982U.S. Government

Sponsored EnterpriseSecurities 56,358,067 AAA 56,358,067

MTN 10,820,882 AAA 1,009.870 9,811,012Money Market

Mutual Funds 25,062,746 AAA 25,062,746Commercial Paper 3,200,000 AAA 3,200,000LAIF 75,084,125 N/A 75,084,125Held by Bond Trustee:

Money Market

Mntual Funds 10,487,608 AAA 10,487,608Investment Agreements 1,671,966 N/A 1,671,966

Total $1.27,7IHiJ2n U2,9lJi,29I $ 13,011012 $..76,756.091 $J.J, I02.,232

N/A - Not Applicable

The actual ratings for the Medium Term Corporate Notes (MTN) are as follows:

Other:AA+ $ 1,233,592AA 1,463,920AA- 3,478,586A+ 3,634,914

$ 9,811 012,

The actual ratings for the Commercial Paper are as follows:

Other:A-1+

See independent auditors' report.

$. 3,2.0D,000

- 52-

CITY OF BUENA PARK


June 30, 2008


Concentration of Credit Risk:

The investment policy of the City contains no limitations on the amount that can be invested in anyone issuer beyond that stipulated by the California Government Code. Investments in anyoneissuer that represent 5% or more of total City's investments are as follows:

PercentReported of

Issuer Investment Type Amount InvestmentFederal Home Loan Bank U.S. Government Sponsored

Enterprise Securities $ 14,624,859 7.39 %Federal Home Loan U.S. Government Sponsored

Mortgage Association Enterprise Securities $ 11,646,992 5.89 %Federal National U.S. Government Sponsored

Mortgage Association Enterprise Securities $ 12,113,193 6.12 %Federal Farm Credit Bank U.S. Government Sponsored

Enterprise Securities $ 10,460,408 5.29 %

Custodial Credit Risk:

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financialinstitution, a government will not be able to recover its deposits or will not be able to recovercollateral securities that are in the possession of an outside party. The custodial credit risk forinvestments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to atransaction, a government will not be able to recover the value of its investment or collateralsecurities that are in the possession of another party. The California Government Code and theCity's investment policy do not contain legal or policy requirements that would limit the exposureto custodial credit risk for deposits or investments, other than the following provision for deposits:The California Government Code requires that a financial institution secure deposits made by stateor local governmental units by pledging securities in an undivided collateral pool held by adepository regulated under state law (unless so waived by the governmental unit). The marketvalue of the pledged securities in the collateral pool must equal at least 110% of the total amountdeposited by the public agencies. California law also allows financial institutions to secure Citydeposits by pledging first trust deed mortgage notes having a value of 150% of the secured publicdeposits. At June 30, 2008, the City deposits (bank balances) were insured by the FederalDepository Insurance Corporation up to $100,000 and the remaining balances were collateralizedunder California Law.


CITY OF BUENA PARK


June 30, 2008


Investment in State Investment Pool:

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulatedby California Government Code Section 16429 under the oversight of the Treasurer of the State ofCalifornia. The fair value of the City's investment in this pool is reported in the accompanyingfinancial statements at amounts hased upon the City's pro-rata share of the fair value provided byLAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The halanceavailahle for withdrawal is based on the accounting records maintained by LAIF, which arerecorded on an amortized cost basis.

4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:

Due To/From Other Funds:

Current interfund receivables and payables as of June 30, 2008 are as follows:

Due to Other Governmental Funds from:Other Governmental Funds $ 233,612.

Interfund balances are a result of short-term interfund borrowings to manage cash flows.

Advances To/From Other Funds:

Long-term interfund receivables and payables as of June 30, 2008 are as follows:

Advances from General Fund to:Redevelopment Agency Debt Service Fund L9.042.197

The Redevelopment Agency Debt Service Fund has received monies from the General Fund foruse in its operations. These advances have no stipulated due dates and interest rates range from3.07% to 10.00%. The balance outstanding at June 30, 2008 includes accrued interest of$5,588,307.


CITY OF BUENA PARK


June 30, 2008

4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED):

Transfers In and Out:

Transfers in and out for the year ended June 30, 2008 are as follows:

Transfer FromGeneral

Redevelopment Agency DebtService Fund

Redevelopment Agency CapitalProjects Fund

Other Governmental Funds

Water Enterprise Fund

Internal Service Funds

Transfer ToOther Govermnental Funds (1)Internal Service Funds (2)

Redevelopment AgencyCapital Projects Fund (l)

General FundRedevelopment Agency

Debt Service FundOther Govermnental Funds (l)

General FundOther Govermnental Funds (l)Internal Service Funds (2)

General Fund (3)Internal Service Funds (2)

Internal Service Funds (2)

Amount$ 1,551,211

1,739,996

65,526,000

30,000

206,1772,550,560

50,6852,859,975

15,000

304,00030,000

15,000

~ 74,878,§D;!

Interfund transfers were principally used to (1) provide capital projects funds with the fundingnecessary to accomplish those projects approved by City Council, (2) to cover workers'compensation claims and/or liability claims and fund accrued leave liability, and (3) to compensatethe General Fund for revenues lost when a hydro-electric connection was eliminated as part of twonew wells.


CITY OF BUENA PARK


June 30, 2008

5. CAPITAL ASSETS:

A summary of changes in the Governmental Activities capital assets at June 30, 2008 is as follows:

Balances at Balances atGovernmental Activities: July 1, 2007 Additions Deletions June 30, 2008

Capital assets, not being depreciated:

Rigbts-of-way $ 48,369,334 $ 147,314 $ $ 48,516,648Land 5,416,179 (3,243) 5,412,936Construction in progress 20.202.381 9.290,368 (22.092,869) 7,399.880

Total capital assets,

not being depreciated 73,987.894 9.437.682 (22.096,112) 61.329.464

Capital assets, being depreciated:

Buildings 14,640,250 14,283,280 28,923,530

Improvements 10,208,632 485,407 10,694,039

Macbinery and equipment 12,774,492 1,200,843 (860,342) 13,114,993Furniture and fixtures 465,629 26,381 492,010Infrastructure:

Road system 72,022,636 7,060,120 (2,769,652) 76,313,104Storm drain system 3,825,026 55,857 3,880,883

Total capital assets,

being depreciated 113,936,665 23,111,888 (3,629,994) 133.418,559

Less accumulated depreciation for:Buildings (3,158,000) (307,589) (3,465,589)Improvements (5,130,616) (372,928) (5,503,544)Machinery and equipment (7,839,648) (1,227,497) 851,750 (8,215,395)Furniture and fixtures (240,936) (22,143) (263,079)Infrastructure:

Road system (27,864,264) (1,937,394) 1,373,515 (28,428,143)

Stann drain systems (1.324,151) (50.939) (1.375,090)Total accumulated depreciation (45,557,615) 13,918.490) 2,225,265 (47,250,840)

Total capital assets

being depreciated, net 68,379,050 19,193,398 (1,404,729) 86,167.719

Governmental activities

capital assets, net ~42.1Q{j,,244 $ 28.631,080 ~ill,500.841) $ 147.491,HU


CITY OF BUENA PARK


June 30, 2008

5. CAPITAL ASSETS (CONTINUED):

A summary of changes in the Business-Type Activities capital assets at June 30, 2008 is as follows:

Business-Type Activities:

Balances at

July I, 2007 Additions Deletions

Balances at

June 30. 2008

$

Capital assets, not being depreciated:

Land

Construction in progressTotal capital assets,

not being depreciated

2,500 $ $

___~3,.!-'78,-"-7 663,723

___-".>6,"'28'-'.7 663,723

$ 2,500

667,510

670,010

Capital assets, being depreciated:

Buildings

Improvements

Pumps and reservoirsHydrants, meters, and connectionsMachinery and equipment

Wells

Water and sewer linesTotal capital assets,

being depreciated

Less accumulated depreciation for:Buildings

Improvements

Pumps and reservoirsHydrants, meters, and connectionsMachinery and equipment

Wells

Water and sewer lines

Total accumulated

depreciation

43,672 43,672

1lI,608 111,608

2,043,238 2,043,238

4,542,534 343,000 4,885,534

975,487 120,468 1,095,955

3,091,845 1,600,000 4,691,845

20,841,384 3,610,100 24.451,484

31,649,768 5,673,568 37,323,336

(29,722) (1,597) (31,319)

(5,580) (5,580)

(1,156,598) (39,350) (1,195,948)

(3,996,340) (27,681) (4,024,021)

(533,021) (36,090) (569,1lI)

(1,323,982) (68,483) (1,392,465)

112,186,971) 1323,501) 112,510.472)

09,226,634) (502,282) 09,728,916)

Total capital assets

being depreciated, net 12.423,134 5,171.286 17,594.420

Business-type activities,capital assets, net

See independent auditors' report,- 57 -

1B264.,1,30

CITY OF BUENA PARK


June 30, 2008

5. CAPITAL ASSETS (CONTINUED):

Depreciation expense was charged in the following functions in the statement of activities:

Governmental Activities:General governmentLeisureTransportationPublic protectionDevelopmentInternal serviee fund depreciation charged to programs

Total depreciation expense - governmental activities

Business-Type Activities:Water

6. LONG-TERM LIABILITIES:

$ 471,422282,311

2,028,392313,449

94,039728.877

~ 3.918,49Q

$ 502.282

A summary of changes in long-term liabilities for the year endcd June 30, 2008 is as follows:

Balances at Balances at Due within

July 1, 2007 Additions Deletions June 30. 2008 One Year


Tax allocation bonds $ 26,590,000 $ 75,720,000 $ (1,440,000) $ 100,870,000 $ 1,485,000

Add (less) deferred amounts:

For issuance premium 51,387 99,183 (3,899) 146,671

On advance refunding (358,898) 44,400 (314,498)

Total tax allocation bonds 26,282,489 75,819,183 (1,399,499) 100,702,173 1,485,000

Loan payable 4,318,718 4,318,718

Revenue bonds payable 899,000 (161,200) 737,800 170,500

Claims payable 6,302,091 819,410 (1,723,998) 5,397,503 850,000

Employee leave benefits 2.549,733 699.312 (599,165) 2,649,880 590,000

Total Governmental

Activities Long-tenn

Liabilities ~40Ji2~Q31 $ 77.337.905 $ .0 88~,862) .t... 113.806 074 $... 3J)2.5~500


Balances at Balances at Due within

July I, 2007 Additions Deletions June 30, 2008 One Year

$ 80,527 $ $ (6,901) $ 73,626 $ 7,283

551,000 (98,800) 452,200 104,500

993,547 (138,875) 854,672 143,737

87,094 57,642 (20,520) 124,216 17.500

CITY OF BUENA PARK


June 30, 2008

6. LONG-TERM LIABILITIES (CONTINUED):


Loan payable

Revenue bonds payable

Notes payable

Employee leave benefits

Total Business-type

Activities Long-term

Liabilities ~


A. Tax Allocation Bonds:

Tax Allocation Refunding Bonds, Series 2000

$8,265,000 Tax Allocation Refunding Bonds, Series 2000; issued February 2, 2000; S8,265,000of serial bonds are due in annual principal installments of S550,000 to $750,000 throughSeptember 1,2014; secured by tax increment revenues; interest ranging from 4.00% to 5.40%.A financial guarantee insurance policy has been issued, and accordingly, no cash reservebalance is required to be established. As of June 30, 2008 the principal amount outstandingwas $4,515,000.

The debt service requirements to maturity are as follows:

Year EndingJune 30, Principal Interest

2009 $ 550,000 $ 218,3282010 580,000 190,9182011 610,000 161,4582012 640,000 129,8882013 675,000 95,8492014 710,000 59,3152015 750,000 20,250

Totals ~ .:'i,515,000 $ 876,006


Total$ 768,328

770,918771,458769,888770,849769,315770,250

$ 5,391.006

CITY OF BUENA PARK


June 30, 2008

6. LONG-TE~lV[ LIABILITIES (CONTINUED):

Governmental Aetivities (Continued):

A. Tax Allocation Bonds (Continued):

2003 Tax Allocation Refunding Bonds

On July 2, 2003, the Redevelopment Agency of the City of Buena Park issued $24,055,000 ofTax Allocation Bonds to provide funds to advance refund the 1992 Refunding Tax AllocationBond Series A and B issued by the Agency. The 2003 Bonds were issued at a premium of$63,363. This premium is being amortized on a straight-line basis as interest expense through2024. The advance refunding met the requirements of an in-substance defeasance and the 1992Tax Allocation Bonds were removed from the Agency's long-term debt. The principal balanceon the 1992 Tax Allocation Bonds were paid off on September 2, 2003.

The 2003 Tax Allocation Bonds are special obligation of the Agency secured by tax incrementrevenues on a parity with the Agency's $8,265,000 aggregate principal amount of the 2000Refunding Tax Allocation Bonds. The reserve requirement of $1,658,129 is covered by$1,671,974 held by the Agency in the debt service fund.

The Bonds are payable in annual installments ranging from $935,000 to $1,600,000 untilmaturity on September I, 2024. Interest is payable semiannually on March I and September I,with rates ranging from 2.0% to 4.2% per annum. Bonds outstanding at June 30, 2008 were$20,635,000.

The advance refunding resulted in a difference between the reacquisition price and the netcarrying amount of the old debt of $495,798. This difference, net of accumulated amortization,is reported in the accompanying financial statements as a reduction from bonds payable and isbeing charged to interest expense through the year 2014.


CITY OF BUENA PARK


June 30, 2008




2003 Tax Allocation Refunding Bonds (Continued)

Future debt service requirements on these bonds are as follows:

Year EndingJune 30, Principal Interest Total

2009 $ 935,000 $ 720,785 $ 1,655,7852010 960,000 696,618 1,656,61820ll 985,000 670,840 1,655,8402012 1,010,000 643,655 1,653,6552013 1,040,000 614,168 1,654,168

2014 - 2018 5,715,000 2,531,839 8,246,8392019 - 2023 6,850,000 1,361,118 8,21I,1l82024 - 2025 3,140,000 132,370 3,272,370

Subtotals 20,635,000 7,371,393 28,006,393Add (less) deferred

amounts:Issuance premium 48,393 48,393On advance refunding (314,498) (314,498)

Totals t 20,368,895 $ .. 7",.371.393 $ 27,740,288

2008 Tax Allocation Bonds, Series A

On February 26,2008, Redevelopment Agency of the City of Buena Park issued $48,800,000Tax Allocation Bonds, Series A. The 2008 Bonds were issued at a premium of $99,183. Thispremium is being amortized on a straight-line basis as interest expense through 2035.

The 2008 Tax Allocation Bonds, Series A, are special obligation of the Agency secured by taxincrement revenues on a parity with the Agency's $8,265,000 and $20,635,000 aggregateprincipal amount of the Tax Allocation Bonds, Series 2000, and 2003 Tax AllocationRefunding Bonds, respectively. The reserve requirement of $3,700,972 is covered by$3,714,864 held in a reserve fund by the fiscal agent for the bonds,


CITY OF BUENA PARK


June 30, 2008

6. LONG-TER.M LIABILITIES (CONTINUED):



2008 Tax Allocation Bonds, Series A (Continued)

The Bonds are payable in annual installments ranging from $100,000 to $4,140,000 untilmaturity on September 1,2035. Interest is payable semiannually on March 1 and September 1,with rates ranging from 3.0% to 6.25% per annum. Bonds outstanding at June 30, 2008 were$48,800,000.



2009 $ $ 2,645,016 $ 2,645,0162010 100,000 2,680,770 2,780,7702011 100,000 2,677,645 2,777,6452012 100,000 2,674,270 2,774,2702013 215,000 2,668,489 2,883,489

2014 - 2018 2,105,000 13,145,363 15,250,3632019 - 2023 3,730,000 12,470,902 16,200,9022024 - 2028 12,495,000 10,682,144 23,177,1442029 - 2033 19,270,000 5,993,565 25,263,5652034 - 2036 10,685,000 976,500 ll,661.500

Subtotals 48,800,000 56,614,664 105,414,664Add deferred amounts:

Issuance premium 98,278 98,278Totals $ 48.898.278 $ ~q,614,664 $. I05,512,942

2008 Tax Allocation Bonds, Series B

On June 4, 2008, Redevelopment Agency of the City of Buena Park issued $26,920,000 TaxAllocation Bonds, Series B. The 2008 Tax Allocation Bonds, Series B, are special obligationof the Agency secured by tax increment revenues on a parity with the Agency's $8,265,000,$20,635,000, and $48,800,000 aggregate principal amount of the Tax Allocation Bonds, Series2000, 2003 Tax Allocation Refunding Bonds, and 2008 Tax Allocation bonds, Series A,respectively. The reserve requirement of $2,493,224 is covered by $2,493,224 held in a reservefund by the fiscal agent for the bonds.


CITY OF BUENA PARK


June 30, 2008




2008 Tax Allocation Bonds, Series B (Continued)

The Bonds are payable in annual installments ranging from $580,000 to $3,080,000 untilmaturity on September 1,2023. Interest is payable semiannually on March I and September I,with rates ranging from 5.093% to 6.253% per annum. Bonds outstanding at June 30, 2008were $26,920,000.



2009 $ $ 1,141,125 $ 1,141,1252010 965,000 1,605,605 2,570,6052011 1,000,000 1,555,566 2,555,5662012 1,030,000 1,503,872 2,533,8722013 580,000 1,460,031 2,040,03 I

2014-2018 7,355,000 6,367,497 13,722,4972019 - 2023 12,910,000 3,075,675 15,985,675

2024 3,080,000 96,296 3,176,296

Totals ~6,920,000 $ 16,805,667 $ 43,725,667

B. Loan Payable:

A loan made by a developer, in the amount of$4,3I8,7I8, to the Redevelopment Agency oftheCity of Buena Park for the acquisition ofreal property; interest at 8.00% compounded annually;quarterly payments at least equal to 40.00% of the sales tax revenue received and retained bythe City. As of June 30, 2008 the amount outstanding was $5,442,886, including accruedunpaid interest of $1,124, I68. The term of the loan ends May 2014, at which time any unpaidprincipal and interest will be forgiven by the developer.


CITY OF BUENA PARK


June 30, 2008



B. Loan Payable (Continued):

Total estimated debt service schedule for the loan payable (based on estimated annual sales taxrevenue of $500,000) are as follows:

Year EndingJune 30,

200920102011201220132014

SubtotalsEstimated amount

to be forgivenTotals

C. Revenue Bonds:

Principal$

$. ._ 4.318.718

$ 200,000200,000200,000200,000200,000200,000

$. 1,400,00Q

$ 200,000200,000200,000200,000200,000200,000

$ 1.400,QOQ

$3,445,000 Revenue Bonds; issued August 1, 1996; due in annual principal installments of$161,200 to $320,000 from August 1,1997 through August 1,2011; subject to mandatoryredemption on August 1, 2006; interest ranging from 4.10% to 5.75%; reserve requirement of$236,000 was fully funded at June 30, 2008; reserve funds for this issue are held on the City'sbehalf by the Countywide Public Financing Authority. The total principal amount outstandingas of June 30, 2008 was $1,190,000. A portion of this liability is recorded in the City's WaterEnterprise Fund. See Note 6G for the Water Enterprise Fund's share of the outstanding debtand future debt service requirements. As of June 30, 2008, the governmental activities share ofthe principal amount outstanding was $737,800.


Year EndingJune 30,

2009201020112012Totals


Principal$ 170,500

179,800189,100198.400

$. 737.800

- 64-

Interest$ 41,633

32,25622,18711.408

$ 107.484

$ 212,133212,056211,287209.808

L 845.284

CITY OF BUENA PARK


June 30, 2008



D. Claims Payable:

Claims payable are typically paid from the Workers' Compensation Self-Insurance Fund andthe Public Liability Self-Insurance Fund. There is no fixed payment schedule for claimsliabilities.

E. Employee Leave Benefits:

Employee leave benefits payable to employees upon tennination. The City's policies relatingto the payment of these benefits are discussed in Note 2J of the notes to the financialstatements. The liability at June 30, 2008, in the amount of $2,649,880, is expected to be paidprimarily by the general fund transfers to the accrued leave intemal service fund in future years.There is no fixed payment schedule for the employee leave benefits liability.

Busiuess-type Activities:

F. Loan Payable:

Economic Development Administration Loan

The Economic Development Administration (EDA) of the U.S. Department of Commerce loancommitment recorded in the enterprise fund requires equal annual payments of principal andinterest at 5% through July 1,2017. As of June 30,2008 the principal amount outstanding was$73,626.


Year EndingJune 30,

200920102011201220132014201520162017Totals


Principal$ 7,283

7,6288,0108,4108,8319,2729,736

10,2244,232

$ 73.626

- 65-

Interest$ 3,671

3,3262,9442,5442,1231,6821,218

730220

$ 18.458

Total$ 10,954

10,95410,95410,95410,95410,95410,95410,9544.452

$ 92,D84

CITY OF BUENA PARK


June 30, 2008


Business-type Activities (Continued):

G. Revenue Bonds:

A portion of the $3,445,000 Revenue Bonds (see Note 6C) is recorded in the City's WaterEnterprise Fund. The Water Enterprise Fund's share of the outstanding balance as ofJune 30, 2008 was $452,200.

The Water Enterprise Fund's share of the debt service requirements to maturity are as follows:


2009 $ 104,500 $ 25,5172010 II 0,200 19,77020Il 115,900 13,5982012 121.600 6,992Totals $ 452.200 $ 65,877

H. Notes Payable:

Total$ 130,017

129,970129,498128,592

$ 518.077

On April 17, 1996, the City entered into an agreement with the Orange County Water District(OCWD) for the acquisition, construction, installation and operation of two new groundwaterproduction wells. Under this agreement, OCWD will provide a loan to the City to finance allinitial costs, not to exceed $1,000,000 per well, for the design and construction of the wells.The City will repay OCWD with installment payments over a fifteen ycar period at 3.50%interest. The note payable is recorded in the Water Enterprise Fund. As of June 30, 2008 theprincipal amount outstanding was $854,672.



2009 $ 143,737 $ 29,9132010 148,767 24,88320Il 153,974 19,6762012 159,363 14,2872013 164,941 8,7092014 83,890 2,937Totals L 854,672 $ 100.405


$ 173,650173,650173,650173,650173,65086,827

$ 955,077

CITY OF BUENA PARK


June 30, 2008


Business-type Activities (Continued):

1. Employee Leave Benefits:

Employee leave benefits payable to employees upon tennination. The City's policies relatingto the payment of these benefits are discussed in Note 2J of the notes to the financialstatements. The liability at June 30, 2008 was $124,216. There is no fixed payment schedulefor the employee leave benefits liability.

7. DEFINED BENEFIT PENSION PLAN:

A. Plan Description:

The City's defined benefit pension plans, the Miscellaneous and Safety Plans for the City ofBuena Park (Plans), provide retirement and disability benefits, annual cost-of-livingadjustments, and death benefits to plan members and beneficiaries. As of July 1, 2005, the Citywas mandated by the State to participate in the risk pool for the Safety Plan. For the SafetyPlan, the risk pool combines the assets and liabilities across employers of the risk pool toprovide a method to spread the risk of uncertain gains and losses over a larger base ofmembers. The Plans are part of the Public Agency portion of the California Public Employees'Retirement System (CalPERS), an agent multiple-employer plan administered by CaIPERS,which acts as a common investment and administrative agent for participating public entitieswithin the State of California. A menu of benefit provisions as well as other requirements areestablished by State statutes within the Public Employees' Retirement Law. The City selectsoptional benefit provisions from the benefit menu by contract with CalPERS and adopts thosebenefits through local ordinance. CalPERS issues a separate comprehensive annual financialreport. Copies of CaIPERS' annual financial report may be obtained from the CalPERSExecutive Office: 400 P Street, Sacramento, CA 95814.

B. Funding Policy for Miscellaneous Plan:

Participants are required to contribute 7% of their annual covered salary. The City makes thecontributions required of City employees on their behalf and for their account. The City isrequired to contribute the actuarially detennined remaining amounts necessary to fund thebenefits for its members. The actuarial methods and assumptions used are those adopted by theCalPERS Board of Administration. The required employer contribution rate for the year endedJune 30,2008 was 7.70%. The contribution requirements of the plan members are establishedby State statute and the employer contribution rate is established and may be amended byCalPERS.


CITY OF BUENA PARK


June 30, 2008

7. DEFINED BENEFIT PENSION PLAN (CONTINUED):

C. Annual Pension Cost for the Miscellaneous Plan:

For fiscal year 2008, the City's actual and contributed annual pension cost was $1,005,550. Therequired contribution for the fiscal year 2008 was determined as part of the June 30, 2005actuarial valuation using the entry age normal actuarial cost method with the contributionsdetermined as a percent of payroll. The actuarial assumptions included (a) 7.75% investmentrate of return (net of administrative expenses), (b) projected salary increases that vary byduration of service ranging from 3.25% to 14.45%, (c) inflation of 3.00%, (d) payroll growth of3.25%, and (e) an individual salary growth based on merit scale varying by duration ofemployment, coupled with an assumed annual inflation component of 3.00%, and an annualproduction growth of 0.25%.

The actuarial value of the Plan's assets were determined using a technique that smoothes theeffect of short-term volatility in the market value of investments over a fifteen year period. ThePlan's initial unfunded liabilities are amortized over a closed period that depends on the Plan'sdate of entry into CaIPERS. Subsequent plan amendmeuts are amortized as a level percentageofpay over a closed 20 year period. Gains and losses that occur in the operation of the plan areamortized over a rolling 30 year period. If the Plan's accrued liability exceeds the actuarialvalue of plan assets, then the amortization payment on the total unfunded liability may not belower than the payment calculated ovcr a 30 year amortization period. The remaining Plan'samortization period at June 30, 2008 was 15 years for the Miscellaneous Plan.

Three-Year Trend Information for the Miscellaneous Plan

Fiscal Annual Pension Percentage of Net PensionYear Cost (APC) APC Contributed Obligation

6/30106 $ 897,191 100% $

6/30107 887,492 100%

6/30108 1,005,550 100%


CITY OF BUENA PARK


June 30, 2008

7. DEFINED BENEFIT PENSION PLAN (CONTINUED):

D. Funded Status and Funding Progress:

As of June 30, 2007, the most recent actuarial valuation date, the plan was 95.4% funded. Theactuarial accrued liability for benefits was $76.3 million, and the actuarial value of assets was$80.0 million, resulting in an unfunded actuarial accrued liability (UAAL) of $3.7 million. Thecovered payroll (annual payroll of active employees covered by the plan) was $12.1 million, andthe ratio of the UAAL to the covered payroll was 30.7%.

The schedule of funding progress presented below, presents multiyear trend information aboutwhether the actuarial value of plan assets is increasing or decreasing over time relative to theactuarial accrued liability for benefits.

Schedule of Funding Progress for the Miscellaneous Plan for CalPERS

Actuarial Actuarial UAALasaActuarial Value of Accrued Unfunded %ofValuation Assets Liability (AAL) AAL Funded Covered Covered

Date (AAL) Entry Age (VAAL) Ratio Payroll Payroll(A) (B) (A-B) (B/A) (C) [(A-B/C]

6/30105 $ 67,816,700 $ 67,385,197 $ 431,503 99.4 % $10,599,769 4.1 %6/30106 73,200,848 75,865,122 (2,664,274) 103.6 % 11,673,624 (22.8) %6/30107 79,989,502 76,286,233 3,703,269 95.4 % 12,060,732 30.7 %

E. Annual Required Contribution for the Safety Plan:

The contribution requirements of the Safety Plan members and the City are established andmay be amended by the State. Plan members are required to contribute 9% of their annualcovered salary. The City is required to contribute at an actuarially determined rate; the currentrate is 42.525% of covered payroll. The City's contributions to CalPERS for the years endedJune 30, 2008, 2007 and 2006 were $3,652,389, $3,481,257 and $3,149,563, respectively, andwere equal to the required contributions for each year.


CITY OF BUENA PARK


June 30, 2008

8. POST-EMPLOYMENT BENEFITS:

In addition to providing pension benefits, the City provides certain health care benefits for retiredemployees. Potentially all of the City'S employees with hire date prior to July I, 1999 may becomeeligible for those benefits if they reach normal retirement age while working for the City. As ofJune 30, 2008, 228 retired employees were receiving benefits. The City pays monthly medicalpremiums ranging from $126 to $420 for each employee depending upon which group theemployee belonged and the number of individuals covered by the policy. These benefits areprovided pursuant to provisions of the State of California Employees Medical and Hospital CareAct.

The City finances these post-employment benefits on a pay-as-you-go basis. For the year endedJune 30, 2008, approximately $729,687 of post-employment benefit expenditures were recognized.

9. RESERVES AND DESIGNATIONS OF FUND BALANCES:

A City may set up reserves of fund equity to segregate fund balances which are appropriable forexpenditure in future periods, or which are legally set aside for a specific future use. Fund"designations" also may be established to indicate tentative plans for financial resource utilizationin a future period.

The City's reserves and designations at June 30, 2008 are tabulated below, followed byexplanations as to the nature and purpose of each reserve and designation.

General Housing Service

Reserved for:

Encumbrances $ 1,182.109 $ $

Property held for resale 1,860,990

Advances to other funds 3,453,890

Inventory 85,160

Deposits 451,100

Low and moderate housing 18,565,444

Prepaid items 69,185

Debt service 45,980325

386,410 $ 40,692,389 $

30,395,851

Total Reserves 4,790344

Redevelopment

Agency

Low and

Moderate

20,877,534

Redevelopment

Agency

Debt

45.980325

Redevelopment

Agency

Capital

Projects

$

1,093,723

31,875.984

Otber

Governmental

Funds

40.692.389

Total

42,260,908

32,256,841

3,453,890

85,160

1,544,823

18,565,444

69,185

45.980325

144216,576


CITY OF BUENA PARK


June 30, 2008

9. RESERVES AND DESIGNATIONS OF FUND BALANCES (CONTINUED):

Redevelopment

Agency Redevelopment Redevelopment

Low and Agency Agency Other

Moderate Debt Capital Governmental

General Housing Service Projects Funds Total

Unreserved:

Designated for:

Fire surplus fund $ 360,000 $ $ $ $ $ 360,000

Future capital projects 9,566,452 1,500,000 11,066,452

Undesignated 26,929,481 49,804.493 (25,507,950) 51,226,024

Total Unreserved 36,855,933 51,304,493 (25,507,950) 62,652.476

Total Fund Balances ~L,646.277 ~Q,877§34 $, ,45,980325 $ 83.180_4n ,$-.li184439 $...2Q6,869,Q.s1

A. Reserved for Encumbrances:

Amounts reserved for encumbrances are commitments for materials and services on purchaseorders and contracts that are unperformed.

B. Reserved for Property Held for Resale:

This reserve is provided to indicate that land held for resale by the Redevelopment Agency isnot available as a resource to meet expenditures of the current year.

C. Reserved for Advances to Other Funds:

This reserve is provided to indicate that amounts advanced to the Redevelopment Agency arenot available as a spendable resource to meet expenditures of the current year.

D. Reserved for Inventory:

This reserve is provided to indicate that the inventory balance is not available as a spendableresource to meet expenditures of the current year.

E. Reserved for Deposits:

This reserve is provided to indicate that deposits are not available as a spendable resource tomeet expenditures of the current year.

Sec independent auditors' report.- 71 -

CITY OF BUENA PARK


June 30, 2008

9. RESERVES AND DESIGNATIONS OF FUND BALANCES (CONTINUED):

F. Reserved for Low and Moderate Housing:

This reserve is provided to indicate that amounts set-aside for tax increment monies received bythe Redevelopment Agency are to be used for projects/programs benefiting low/moderateincome households.

G. Reserved for Prepaid Items:

This reserve is provided to indicate that prepaid items are not available as a resource to meetexpenditures of the current year.

H. Reserved for Debt Service:

This reserve is provided to indicate that amounts accumulated in the Redevelopment AgencyDebt Service Fund are to be used for future debt service, including amounts held in accordancewith bond indentures or similar covenants.

1. Designated for Fire Surplus Fund:

This designation is provided to indicate future use of funds for the fire department needs.

J. Designated for Future Capital Projects:

This designation is provided to indicate future use of funds for capital projects.

K. Undesignated:

Amounts that have not been reserved or designated.

10. DEFICIT FUND BALANCES AND EXCESS EXPENDITURES:

The following funds reported deficits in fund balances at June 30, 2008:

Other Governmental Funds:Housing and Community Development Special RevenueCity Capital Projects Fund

$ 12,343486,405

The deficits will be eliminated through future revenues as well as operating transfers from theGeneral Fund.


CITY OF BUENA PARK


June 30, 2008

10. DEFICIT FUND BALANCES AND EXCESS EXPENDITURES (CONTINUED):

The following departments/funds reported expenditures in excess of appropriations:

AppropriationsActual

Expenditures VarianceMajor Funds:

General Fund:General Government:

Community Support Services $Non-departmental

Health:Public Works

Public Protection:Community Development ServicesPublic Works

Low and Moderate Housing SpecialRevenue Fund:

Development:Economic Development

Debt Service:Interest and other charges

Redevelopment Agency DebtService Fund:

Deht Service:Interest and other chargesBond issuance costs

Redevelopment Agency CapitalProjects Fund:

Development:Economic Development

Debt Service:Interest and other charges


479,606 $766,500

2,8IO,390

420,161575,000

1,388,345

122,260

1,418,370

4,056,782

- 73 -

515,416804,572

2,830,061

435,016650,569

1,759,547

122,263

1,442,4972,085,508

4,742,411

317,796

$ (35,810)(38,072)

(19,671)

(I4,855)(75,569)

(371,202)

(3)

(24,127)(2,085,508)

(685,629)

(3 I 7,796)

CITY OF BUENA PARK


June 30, 2008

10. DEFICIT FUND BALANCES AND EXCESS EXPENDITURES (CONTINUED):

The folIowing departments/funds reported expenditures in excess of appropriations (Continued)

Major Funds (Continued):Appropriations

ActualExpenditures Variance

Other Governmental Funds:Asset Forfeiture Special Revenue:

Public Protection:Police Department

Home Deferred Loan Special Revenue:Development:Economic Development

State OCATT Special Revenue:Public Protection:Police Department

I I. PROPERTY TAX CALENDAR:

$ 18,874 $

500,980

154,490

23,498 $

1,462,581

160,098

(4,624)

(961,601)

(5,608)

Property taxes are reported on a modified accrual basis. Accordingly, they are recognized as leviedprovided they meet the modified accrual criteria. Property taxes not meeting the criteria aredeferred until they are received or otherwise meet the criteria. Included in taxes receivable anddeferred revenue as of June 30, 2008 was $1,395,643 of property taxes (net of uncolIectibles)levied for the year ended June 30, 2008 and measurable at that date, but not available to financecurrent period expenditures and therefore not susceptible to accrual as revenues.

Property taxes were levied on assessed valuations on March 1, 2007 and became a lien on theproperty assessed on that date. Taxes on the secured rolIs are payable in two instalIments onNovember 1, 2007 and February 1, 2008 and become delinquent on December 10, 2007 andApril 10, 2008, respectively. Taxes on unsecured property were assessed and payable onMarch 1,2007 and became delinquent the folIowing August 31.


CITY OF BUENA PARK


June 30, 2008

11. PROPERTY TAX CALENDAR (CONTINUED):

All property taxes are collected by the County of Orange Tax Collector and are apportioned toparticipating agencies in accordance with a prearranged schedule of apportionments as follows:

Apportionment Apportionment Percent of Levy or ActualNumber Date Amount to be Apportioned

Secured:I November 22, 2007 5%2 December 8, 2007 20%3 December 20, 2007 20%4 January 19, 2008 Remainder of first installment5 March 20, 2008 5%6 April 20, 2008 30%7 May 18, 2008 Remainder of second installment

8 Final July 13, 2008 Collections through June 30, 2008

Unsecured:I September 22, 2007 Actual collections through

August 31, 20072 January 19, 2008 Actual collections through

December 31, 20073 Final June 20, 2008 Actual collections through

May31,2008

The state constitutional amendment Proposition 13 (now Article XIIIA to the Constitution) whichbecame effective July 1, 1978, altered the method of property tax assessment. This amendmentessentially reduces the total property tax levy to one percent of full cash value on the 1975-76assessment adjusted upward the lesser of the increase in CPI or per capita income indices or twopercent compounded for each succeeding year except that property changing ownership subsequentto July 1, 1978 and improvements are reassessed at the time of the exchange or improvement andadjusted each year thereafter at the appropriate rate.


CITY OF BUENA PARK


June 30, 2008

12. RISK MANAGEMENT:

In the self-insurance internal service funds, the City has recorded liabilities in the amount of$5,397,503 for lawsuits and other claims arising in the ordinary course of City operations. TheCity is self-insured in both workers' compensation and general liability for the first $500,000 perworkers' compensation claim and for the first $500,000 per general liability claim. The Citymaintains coverage in excess of this self-insured retention limit through the California InsurancePool Authority (CIPA) for workers' compensation and general liability claims. CIPA is a publicentity risk pool which operates a risk management and insurance program for 12 member citieswithin California, and is self-sustaining through member premiums.

The City has entered into contracts with claims administrators to process claims against the Cityfor workers' compensation and general liability claims. Liabilities have been recorded forestimated losses from claims and judgments in the amount of $4,831,171 for workers'compensation and $566,332 for general liability. Losses for claims incurred but not reported arerecorded when the probable amount of loss can be reasonably estimated.

For the past three fiscal years, the City settled no cases at amounts in excess of the policy limits ofapplicable insurance coverage.

Changes in the liability claims payable for the past three fiscal years are as follows:

FiscalYear

2005 - 20062006 - 20072007 - 2008

Beginning ofFiscal Year

$ 6,325,1256,786,0816,302,091

ClaimsIncurred

and Changesin Estimates

$ 1,547,8871,180,244

819,410

ClaimPayments

$ (1,086,931)(1,664,234)(1,723,998)

End ofFiscal Year

$ 6,786,0816,302,0915,397,503

13. DEFERRED REVENUE:

Deferred revenue consists primarily of delinquent property taxes and interest accrued on long-terminterfund advances that are measurable, but not collected soon enough after year end to beconsidered available to finance current operations. These amounts have not yet been recognized asrevenues nor have they been taken into fund balance. Therefore, the reservation of fund balanceestablished for long-term advances excludes that portion of the advances resulting from therecording of deferred revenue. Only that portion of the advances that affected fund balance hasbeen reserved.


CITY OF BUENA PARK


June 30, 2008

13. DEFERRED REVENUE (CONTINUED):

Deferred revenue has also been recorded for federal financial assistance received by the City andinvested in loans receivable. These amounts will be recognized as revenue when they becomeavailable to finance program expenditures.

Deferred revenue at June 30, 2008 consisted of the following:

Redevelopment

Agency Redevelopment Redevelopment

Low and Agency Agency Other

Moderate Debt Capital Governmental

General Housing Service Projects Funds Total

Interest earned but not

currently collectible $ 5,588.307 $ $ $ $ $ 5,588,307

Unbilled receivable 266,230 3,043,438 3,309,668

Long-term receivable 2,057,175 7,896,826 384,141 10,338,142

Delinquent property taxes 290,835 220,962 883,846 1,395,643

Federal assistance invested

in loans 4.950,425 4,950.425

Total $ ~JQ2.s41 LdU)L7~ $ 883 846 $ 38;hlll $ 7923,§63 $ 25,582JB5

14. MORTGAGE REVENUE BONDS:

In July 2000, the City of Buena Park issued, in conjunction with Walden Glen, LP, Variable RateDemand Multifamily Housing Revenue Bonds, Series 2000 to provide funds for rehabilitation andpennanent financing for a multifamily housing facility located in the City. The debt is a specialobligation of the limited partnership and is payable solely fonn payments made on mortgage loansand are secured by a pledge of such mortgage loans. Neither faith nor the taxing power of the Cityof Buena Park have been pledged to the payment of the bonds. Accordingly, the debt is notreported as a liability in the accompanying financial statements.



- 78-

CITY OF BUENA PARKREQUIRED SUPPLEMENTARY INFORMATION

- 79-


- 80-

CITY OF BUENA PARK

DESCRIPTION OF MAJOR FUNDS

June 30, 2008

GENERAL FUND

The General Fund is the general operating fund of the City. All general tax revenues and other receiptsthat are not allocated by law or contractual agreement to some other fund are accounted for in thisfund. Expenditures of this fund include the gencral operating expenditures and capital improvementcosts which are not paid through other funds.

SPECIAL REVENUE FUND

The Redevelopment Agency Low and Moderate Housing Special Revenue Fund is used to account forapproved improvements to City residential structures for persons of low and moderate income.Financing is provided by a portion ofproperty tax increment income collected by the County.

- 81 -

CITY OF BUENA PARK

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND


REVENUES:TaxesLicenses and pennitsFines and forfeituresIntergovernmentalCharges of servicesInvestment incomeMiscellaneous

TOTAL REVENUES

Variance withFinal Budget

Budget Amounts PositiveOriginal Final Actual (Negative)

$ 40,701,800 $ 40,701,800 $ 44,776,919 $ 4,075,119543,130 543,130 474,847 (68,283)

1,015,400 1,015,400 957,829 (57,571)6,311,890 7,023,714 7,175,156 151,4425,418,210 5,608,244 5,631,423 23,179

669,400 669,400 2,051,451 1,382,05189,300 89,300 69,385 (19,915)

54,749,130 55,650,988 61,137,010 5,486,022

See independent auditors! report and note to required supplementary infonnation.

EXPENDITURES:Current:

General government:City councilCity managerCommunity support servicesCity attorneyCity clerkInternal support servicesFinancePuhlic worksNon-departmental

Total General government

Leisure:Recreation administration

Health:Public works

Transportation:Police departmentPublic works

Total Transportation

Public protection:Community development servicesFire departmentPolice departmentPublic works

Total Public protection

297,510 322,810717,470 746,454477,950 479,606242,000 242,000457,630 421,105893,000 911,898729,210 780,956

1,074,890 1,097,049766,500 766,500

5,656,160 5,768,378

1,950,390 1,968,702

2,810,390 2,810,390

2,101,010 2,104,6143,099,880 3,423,333

5,200,890 5,527,947

420.430 420,1617,529,840 7,529,840

19,610,530 19,704,745575,000 575,000

28,135,800 28,229,746

321,667 1,143728,881 17,573515,416 (35,810)180,664 61,336416,270 4,835843,299 68,599734,381 46,575954,763 142.286804,572 (38,072)

5,499,913 268,465

1,961,774 6,928

2,830,061 (19,671)

2.102.1 11 2,5032.996.941 426,392

5,099,052 428,895

435,016 (14,855)7,517,607 12,233

19,557,097 147,648650,569 (75,569)

28,160,289 69,457

(Continued)

- 82-

CITY OF BUENA PARK

BUDGETARYCOMPAillSONSCHEDULE

(CONTll>J1iED)

GENERAL FUND




EXPENDITURES (CONTINUED):

Current:Development:

Community development services $ 1,297,160 $ 1,801,731 $ 1,376,160 $ 425,571

Economic development 508 508

Public works 326,050 338,556 308,475 30,081

Total Development 1,623,210 2,140,795 1,684,635 456,160

Environmental:Recreation, parks and community services 2,635,430 2,674,335 2,654,326 20,009

Capital outlay 956,150 1,769,657 773,800 995,857

Debt service:Principal 161,200 161,200 161,200

Interest and other charges 46,490 46,490 45,985 505

Total Debt service 207,690 207,690 207,185 505

TOTAL EXPENDITURES 49,176,110 51,097,640 48,871,035 2,226,605

EXCESS OF REVENUES OVER(UNDER) EXPENDITURES 5,573,020 4,553,348 12,265,975 7,712,627


Transfers in 689,300 1,083,300 384,685 (698,615)Transfers out (1,125,550) (20,711,333) (3,291,207) 17,420,126

Salc of property 575,000 575,000

TOTAL OTHER FINANCING

SOURCES (USES) (436,250) (19,628,033) (2,331,522) 17,296,511

NET CHANGE IN FUND BALANCE 5,136,770 (15,074,685) 9,934,453 25,009,138

FUND BALANCE - BEGINNING OF YEAR 31,711,824 31,711,824 31,711,824

FUND BALANCE - END OF YEAR $ 36,848,594 $ 16,637,139 $ 41,646,277 $ 25,009,138

See independent auditors' report and note to required. supplementary infonnation.

- 83 -

CITY OF BUENA PARK

BUDGETARY COMPARISON SCHEDULE

RFDEVELOPMENT AGENCY LOW AND MODERATE HOUSING SPECIAL REVENUE FUND



Budget Amounts Positive

Original Final Actual (Negative)RFVENUES:

Taxes $ 4,130,000 $ 4,130,000 $ 5,339,346 $ 1,209,346

Intergovernmental 100,000 100,000 16,847 (83,153)Investment income 400,000 400,000 833,033 433,033Miscellaneous 5,000 5,000 20,922 15,922

TOTAL RFVENUES 4,635,000 4,635,000 6,210,148 1,575,148

EXPENDITURES:

Current:

Development:Economic development 1,152,370 1,388,345 1,759,547 (371,202)

Debt service:Principal retirement 184,750 184,750 184,750

Interest and other charges 122,260 122,260 122,263 (3)

TOTAL EXPENDrfURES 1,459,380 1,695,355 2,066,560 (371,205)

EXCESS OF RFVENUES OVER(UNDER) EXPENDITURFS 3,175,620 2,939,645 4,143,588 1,203,943

FUND BALANCE - BEGINNING OF YEAR 14,497,729 14,475,974 16,733,946 (2,257,972)

FUND BALANCE - END OF YEAR $ 17,673,349 $ 17,415,619 $ 20,877,534 $ (1,054,029)

See independent auditors' report and note to required supplementary infonnation.

- 84-

CITY OF BUENA PARK

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION

June 30, 2008

1. BUDGETARY CONTROL AND ACCOUNTING:

The City adopts an annual budget for all of its funds. Annual budgets are prepared on the modifiedaccrual basis for the governmental funds and on the accrual basis for the proprietary funds, exceptthat depreciation is not budgeted in the proprietary funds. Under Section 2-43 of the MunicipalCode, the City Manager is required to prepare and submit to the City Council the annual budget ofthe City and administer it after adoption. The City Manager is authorized to transfer budgetedamounts between the accounts of any department; however, any revisions that alter the totalappropriations of any department within cach fund must be approved by City Council. Allappropriations lapse at year end. City Council approval is obtained to provide the authority toliquidate unexpended encumbrances in the ensuing year.



- 86-

CITY OF BUENA PARKSUPPLEMENTARY INFORMATION

- 87-

CITY OF BUENA PARK

DESCRIPTION OF OTHER GOVERNMENTAL FUNDS

June 30, 2008

SPECIAL REVENUE FUNDS

Special Revenue Funds account for specific revenues that are legally restricted to expenditure for aparticular purpose. Special Revenue Funds include the following:

Asset Forfeiture Fund to account for assets seized as a result of drug enforcement activities.

Proposition 172 Police Augmentation Fund to account for the half-cent sales tax remitted to the Cityfrom other governmental agencies to be expended for public safety.

State Gasoline Tax Fund to account for street and maintenance projects of the public worksdepartment. Financing is provided by the City's allocation of State gasoline taxes.

Measure M Turnback Fund to account for various transportation projects associated with Measure Mfunding.

Residential Rehabilitation Fund to account for revenue received from Department of Housing andUrban Development for housing improvements projects of the planning and public works departments.

HOME Deferred Loans Fund to account for grant monies received from first-time homebuyerdownpayment assistance program.

Local Law Enforcement Block Grant Fund to account for grant monies received for local lawenforcement activities.

Orange County Anti-Drug Abuse Fund to account for revenue received for a multi-jurisdictionanti-drug task force.

Traffic Congestion Relief Fund to account for the Governor's transportation congestion relief programrevenue received for the repair and reconstruction of streets.

State OCATT Fund to account for revenue received for investigation and prosecution of criminalsbelonging to major auto theft rings.

COPS/SLESF Fund to account for COPS/SLESF revenue received for policing and law enforcementactivities.

- 88-

CITY OF BUENA PARK

DESCRIPTION OF OTHER GOVERNMENTAL FUNDS(CONTINUED)

June 30, 2008

SPECIAL REVENUE FUNDS (CONTINUED)

Housing and Community Development Fund to account for commercial and residential improvementprojects of the planning, economic development, and public works departments. Financing is providedby a federal grant from the Department of Housingand Urban Development.

Buena Park Foundation Fund to account for costs incurred in providing cable television access toindependent civic organizations and to award scholarships to students interested in the communicationfield. Financing is provided by a contribution made by the cable television company which has beenawarded the franchise rights for community cable television services.

AB 2766/AQMD Fund to account for AB 2766/AQMD revenue received for air quality improvementprojects.

CAPITAL PROJECTS FUNDS

Capital Projects Funds account for the acquisition and construction of major capital facilities. CapitalProjects Funds include the following:

City Fund to account for the Buena Park Metrolink Train Station project and construction of the newpolice facility.

Park-in-Lieu Fund to account for recreational development projects financed by developer fees paidin-lieu ofpark development.

- 89-

CITY OF BUENA PARK

COMBINING BALANCE SHEETOTHERGOVEN~vffiNTALFu~DS

June 30, 2008

Special Revenue FundsProposition

172 StateAsset Police Gasoline

Forfeiture Augmentation TaxASSETS

Cash and investments $ 597,600 $ 88,148 $ 5,009,804Cash and investments with fiscal agent 122,230Accounts receivable 147 203,562Interest receivable 4,825 28,860Due from other fundsLoans receivableDue from other governments 44,275 59,679 480,688

TOTAL ASSETS $ 646,847 $ 147,827 $ 5,845,144


LIABILITIES:Accounts payable $ 542 $ 274 $ 63,555Accrued liabilities 7,499 4,674Deposits payable 287,078Retentions payable 136,363Due to other fundsDeferred revenue 203,562

TOTAL LIABILITIES 287,620 7,773 408,154

FUND BALANCES (DEFICITS):Reserved:

Encumbrances 1,628 4,183,244Unreserved:

Undesignated 357,599 140,054 1,253,746

TOTAL FUND BALANCES (DEFICITS) 359,227 140,054 5,436,990

TOTAL LIABILITIES AND FUND BALANCES $ 646,847 $ 147,827 $ 5,845,144


- 90-

Special Revenue Funds (Continued)Local Law Orange

Measure HOME Enforcement County TrafficM Residential Deferred Block Anti-Drug Congestion

Tumback Rehabilitation Loans Grant Abuse Relief

$ 2,204,125 $ 234,784 $ 226,489 $ 29,655 $ 91,688 $ 79,306

1,848,374 2,287 14,02120,707 1,896 1,829 239 740 1,765

2,020,497 2,822,580

$ 4,073,206 $ 2,259,464 $ 3,050,898 $ 29,894 $ 106,449 $ 81,071

$ 327,845 $ $ $ $ $5,484 664 5,661

199,815

1,666,702 2,020,497 2,822,580

2,199,846 2,020,497 2,822,580 664 5,661

1,330,524

542,836

1,873,360

238,967

238,967

228,318

228,318

29,230

29,230

100,788

100,788

81,071

81,071

$ 4,073,206 $ 2,259,464 $ 3,050,898 $ 29,894 $ 106,449 $ 81,071

(Continued)

- 91 -

CITY OF BUENA PARK

COMBINING BALANCE SHEETOTHER GOVERN-MENTAL FUNlJS

(CONTINUED)

June 30, 2008

Special Revenue Funds (Continued)Housing

andState COPSI Community

OCATT SLESF DevelopmentASSETS

Cash and investments $ 6,239 $ 10,707 $ 22,121Cash and investments with fiscal agentAccounts receivable 44,494 999Interest receivable 86 486Due from other fundsLoans receivable 107,348Due from other governments

TOTAL ASSETS $ 10,793 $ 130,954


LIABILITIES:Accounts payahle $ $ $ 13,307Accrued liabilities 6,239 8,858 22,642Deposits payahleRetentions payableDue to other fundsDeferred revenue 107,348

TOTAL LIABILITIES 6,239 8,858 143,297

FUND BALANCES (DEFICrrS):Reserved:

Encumbrances 109Unreserved:

Undesignated (12,452)

TOTAL FUND BALANCES (DEFICITS) 44,494 1,935 (12,343)

TOTAL LIABILITIES AND FUND BALANCES $ 50,733 $ 130,954


- 92-

Special Revenue Funds (Continued) Capital Projects FundsTotal Total Total

Buena Special Capital OtherPark AB 2766/ Revenue Projects Governmental

Foundation AQMD Funds Park-in-Lieu Funds Funds

$ 52,435 $ 274,827 $ 8,927,928 $ $ 6,557,284 $ 6,557,284 $ 15,485,212122,230 25,000 25,000 147,230

25,449 2,139,333 1,173,174 1,173,174 3,312,507]]7 61,550 53,230 53,230 114,780

233,612 233,612 233,6124,950,425 4,950,425

584,642 584,642

$ 78,001 $ 508,439 $ 17,019,720 $ 1,198,174 $ 6,610,514 $ 7,808,688 $ 24,828,408

$ 7,893 $ $ 413,416 $ 242,493 $ 40,308 $ 282,801 $ 696,21761,721 10,300 10,300 72,021

287,078 287,078336,178 25,000 25,000 361,178

233,612 233,612 233,6126,820,689 1,173,174 1,173,174 7,993,863

7,893 7,919,082 1,684,579 40,308 1,724,887 9,643,969

5,515,505 35,081,429 95,455 35,176,884 40,692,389

70,108 508,439 3,585,133 (35,567,834) _--",6,4-,-,7-,-,4,,-,-75;;.:1-,-, (29,093,083) (25,507,950)

70,108 508,439 9,100,638 (486,405) _-"6,,,,5-,-,70;;.:,2:;;0;;.:6 -,-,6:.:.,0;;.:8:;;3:.;;;,8:;;0,-1 _-:.:15:.:.,1;;.:8;;.:4,-,,4;;.:39'-.

$ 78,001 $ 508,439 $ 17,019,720 $ 1,198,174 $ 6,610,514 $ 7,808,688

- 93 -

CITY OF BUENA PARK

COMBINING STATEMENT OF REVENUES, EXPENDITURESAND CHANGES n~ FUlw BALANCES - OTHER GOVERNMENTAL Fffi'lluS


Special Revenue FundsProposition

172 StateAsset Police Gasoline

Forfeiture AugmentationREVENUES:

Taxes $ $ 352,230 $

Intergovernmental 282,850 3,722,249

Investment income 29,002 2 143,664

Miscellaneous

TOTAL REVENUES 311,852 352,232 3,865,913


General governmentLeisureTransportation 246,978

Public protection 23,498 206,226

DevelopmentCapital outlay 20,573 1,962,003

TOTAL EXPENDITURES 44,071 206,226 2,208,981

EXCESS OF REVENUES OVER(UNDER) EXPENDITURES 267,781 146,006 1,656,932

OTHER FINANCING SOURCES (USES):Transfers in 1,773,723

Transfers out (41,880) (130,813)

TOTAL OTHER FINANCINGSOURCES (USES) (41,880) 1,642,910

NET CHANGE IN FUND BALANCES 267,781 104,126 3,299,842

FUND BALANCES (DEFICITS) - BEGINNING OF YEAR 91,446 35,928 2,137,148

FUND BALANCES (DEFICITS) - END OF YEAR $ 359,227 $ 140,054 $ 5,436,990


- 94-

Special Revenue Funds (Continued)Local Law Orange

Measure HOME Enforcement County TrafficM Residential Deferred Block Anti-Drug Conge.'ltion

Tumback Rebabilitation Loans Grant Abuse Relief

$ $ $ $ $ $1,885,571 123,428 60,000 16,832 99,701

92,750 38,576 44,884 705 1,907 4,74723,162

1,978,321 162,004 104,884 17,537 101,608 27,909

(Continued)

- 95-

CITY OF BUENA PARK

COMBINING STATEMENT OF REVENUES, EXPENDITURESAN]) CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS

(CONTINUED)


Special Revenue Funds (Continued)

$ $ $160,098 158,550 677,305

4,264 5,543982

160,098 162,814 683,830

REVENUES:TaxesIntergovernmentalInvestment incomeMiscellaneous

TOTAL REVENUES

StateOCATT

COPSISLESF

Housingand

CommunityDevelopment


General governmentLeisureTransportationPublic protectionDevelopment

Capital outlay

TOTAL EXPENDITURES

EXCESS OF REVENUES OVER(UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES):Transfers inTransfers out

160,098

160,098

66,621

217,200845,687

56,107

217,200 901,794

(54,386) (217,964)

1,056 290,747(35,600)

TOTAL OTHER FINANCINGSOURCES (USES)

NET CHANGE IN FUND BALANCES

FUND BALANCES (DEFICITS) - BEGINNING OF YEAR

FUND BALANCES (DEFICITS) - END OF YEAR


- 96-

66,621

66,621

(22,127)

$

1,056

(53,330)

55,265

1,935 $

255,147

37,183

(49,526)

(12,343)

Special Revenue Funds (Continued) Capital Projects FundsTotal Total Total

Buena Special Capital OtherPark AB 2766/ Revenue Projects Governmental

Foundation AQMD Funds City Park-in-Lieu Funds Funds

$ $ $ 352,230 $ $ $ $ 352,23098,141 7,284,725 2,149,580 2,149,580 9,434,305

727 366,771 62,967 302,544 365,511 732,28277,363 101,507 1,014,322 1,115,829

78,090 98,141 8,105,233 2,212,547 1,316,866 3,529,413 11,634,646

66,883 66,883 66,8831,000,000 1,000,000 1,000,000

397,474 397,474722,521 722,521

2,587,120 2,587,1203,932,426 4,857,943 540,066 5,398,009 9,330,435

66,883 4,857,943 1,540,066 6,398,009 14,104,433

11,207 98,141 398,809 (2,645,396) (223,200) (2,868,596) (2,469,787)

270,000 3,792,098 2,169,648 1,000,000 3,169,648 6,961,746(1,315,145) (1,575,088) (35,427) (1,610,515) (2,925,660)

270,000 2,476,953 594,560 964,573 1,559,133 4,036,086

11,207 368,141 2,875,762 (2,050,836) 741,373 (1,309,463) 1,566,299

58,901 140,298 6,224,876 1,564,431 5,828,833 7,393,264 13,618,140

$ 70,1 08 $ 508,439 $ 9,100,638 $ (486,405) $ 6,570,206 $ 6,083,801 $ 15,184,439

- 97-

CITY OF BUENA PARK

SCHEDULE OF REVENUES, EXPENDITURES ANDCHANGES n~ FuND BALANCE - B1JDGET AND ACTUAL

ASSET FORFEITURE SPECIAL REVENUE FUND




REVENUES:

Intergovernmental $ 50,000 $ 50,000 $ 282,850 $ 232,850

Investment income 10,000 10,000 29,002 19,002

TOTAL REVENUES 60,000 60,000 311,852 251,852

EXPENDITURES:

Current:Public protection:

Police department 18,874 18,874 23,498 (4,624)

Capital outlay 41,126 41,126 20,573 20,553

TOTAL EXPENDITURES 60,000 60,000 44,071 15,929

EXCESS OF REVENUES OVER(UNDER) EXPENDITURES 267,781 267,781

FUND BALANCE - BEGINNING OF YEAR 91,446 91,446 91,446

FUND BALANCE - END OF YEAR $ 91,446 $ 91,446 $ 359,227 $ 267,781


- 98-

CITY OF BUENA PARK

SCHEDULE OF REVENUES, EXPENDITURES ANDCHANGES IN FUND BALANCE - BUDGET AND ACTUAL

PROPOSITION 172 POLICE AUGMENTATION SPECIAL REVENUE FUND




REVENUES:Taxes $ 370,320 $ 370,320 $ 352,230 $ (18,090)Investment income 2 2

TOTAL REVENUES 370,320 370,320 352,232 (18,088)


Public protection:Police department 218,290 218,290 206,226 12,064


EXCESS OF REVENUES OVER(UNDER) EXPENDITURES 152,030 152,030 146,006 (6,024)

OTHER FINANCING USES:Transfers out (177,350) (177,350) (41,880) 135,470

TOTAL OTHER FINANCING USES (177,350) (177,350) (41,880) 135,470

NET CHANGE IN FUND BALANCE (25,320) (25,320) 104,126 129,446



See independent auditors! report.

- 99-

CITY OF BUENA PARK

SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN HIND BALANCE - BlJDGET AND ACTUAL

STATE GASOLINE TAX SPECIAL REVENUE FUND




Original Final Actual (Negative)

REVENUES:

Intergovernmental $ 1,517,500 $ 3,904,274 $ 3,722,249 $ (182,025)


TOTAL REVENUES 1,613,000 3,999,774 3,865,913 (133,861)

EXPENDITURES:

Current:

Transportation:Public works 222,570 248,770 246,978 1,792

Capital outlay 2,427,000 9,565,143 1,962,003 7,603,140


EXCESS OF REVENUES OVER

(UNDER) EXPENDITURES (1,036,570) (5,814,139) 1,656,932 7,471,071


Transfers in 4,740,590 1,773,723 (2,966,867)

Transfers out (22,500) (1,521,107) (130,813) 1,390,294


SOURCES (USES) (22,500) 3,219,483 1,642,910 (1,576,573)

NET CHANGE IN FUND BALANCE (1,059,070) (2,594,656) 3,299,842 5,894,498


FUND BALANCE - END OF YEAR $ 1,078,078 $ (457,508) $ 5,436,990 $ 5,894,498


- 100-

CITY OF BUENA PARK


CHANGES rN FUND BALANCE - BUDGET AND ACTUAL

MEASURE M TURNBACK SPECIAL REVENUE FUND





REVENUES:

Intergovernmental $ 1,076,200 $ 4,583,238 $ 1,885,571 $ (2,697,667)


TOTAL REVENUES 1,129,200 4,636,238 1,978,321 (2,657,917)

EXPENDITURES:

Current:Transportation:

Public works 150,940 150,940 150,496 444

Capital outlay 2,317,000 5,979,338 1,893,743 4,085,595



(UNDER) EXPENDITURES (1,338,740) (1,494,040) (65,918) 1,428,122


Transfers in 3,821,391 1,263,579 (2,557,812)

Transfers out (2,813,970) (676,836) 2,137,134

TOTAL OTHER FrNA.'fCING

SOURCES (USES) 1,007,421 586,743 (420,678)

NET CHANGE IN FUND BALANCE (1,338,740) (486,619) 520,825 1,007,444


FUND BALANCE - END OF YEAR $ 13,795 $ 865,916 $ 1,873,360 S 1,007,444


- 101 -

CITY OF BUENA PARK

SCHEDULE OF REVENUES, EXPENDITURES ANDCHANGES IN Ful~D BALANCE - BUDGET AND ACTUAL

RESIDENTIAL REHABILITATION SPECIAL REVENUE FUND




REVENUES:Intergovernmental $ 125,000 $ 125,000 $ 123,428 $ (1,572)Investment income 76,000 76,000 38,576 (37,424)Miscellaneous 500 500 (500)

TOTAL REVENUES 201,500 201,500 162,004 (39,496)


Development:Economic development 400,000 400,000 278,852 121,148


EXCESS OF REVENUES OVER(UNDER) EXPENDITURES (198,500) (198,500) (116,848) 81,652

OTHER FINANCING USES:Transfers out (290,747) (290,747)

TOTAL OTHER FINANCING USES (290,747) (290,747)

NET CHANGE IN FUND BALANCE (198,500) (198,500) (407,595) (209,095)


FUND BALANCE - END OF YEAR $ 448,062 $ 448,062 $ 238,967 $ (209,095)


- 102-

CITY OF BUENA PARK


CHANGES rN FUND BALANCE - BU-nGET AND ACTUAL

HOME DEFERRED LOANS SPECIAL REVENUE FUND


Budget AmountsOriginal Final Actual


Positive(Negative)

REVENUES:

IntergovernmentalInvestment income

TOTAL REVENUES


Development:Economic development

TOTAL EXPENDITURES


FUND BALANCE - BEGINNING OF YEAR

$ 210,00060,000

270,000

500,980

500,980

(230,980)

1,586,015

$ 210,00060,000

270,000

500,980

500,980

(230,980)

1,586,015

$ 60,00044,884

104,884

1,462,581

1,462,581

(1,357,697)

1,586,015

$ (150,000)(15,116)

(165,116)

(961,601)

(961,601)

(1,126,717)

FUND BALANCE - END OF YEAR


$ 1,355,035

- 103 -

$ 1,355,035 $ 228,318 $ (1,126,717)

CITY OF BUENA PARK


CHANGES IN FlTNTI BALANCE - BUDGET ANlJ ACTUAL

LOCAL LAW ENFORCEMENT BLOCK GRANT SPECIAL REVENUE FUND




REVENUES:

Intergovernmental $ 20,000 $ 20,000 $ 16,832 $ (3,168)

Investment income 705 705

TOTAL REVENUES 20,000 20,000 17,537 (2,463)

EXPENDITURES:

Current:

Public protection:

Police department 60,820 60,820 29,131 31,689



OTHER FINANCING SOURCES:

Transfers in 40,820 40,820 40,824 4

TOTAL OTHER

FINANCING SOURCES 40,820 40,820 40,824 4

NET CHANGE IN FUND BALANCE 29,230 29,230


FUND BALANCE - END OF YEAR $ $ $ $ 29,230


- 104-

CITY OF BUENA PARK


CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

ORANGE COUNTY ANTI-DRUG ABUSE SPECIAL REVENUE FUND




REVENUES:Intergovemmental $ 69,000 $ 69,000 $ 99,701 $ 30,701Investment income 1,907 1,907

TOTAL REVENUES 69,000 69,000 101,608 32,608

EXPENDITURES:

Current:Public protection:




(UNDER) EXPENDITURES (85,550) (85,550) 15,240 100,790

OTHER FINANCING SOURCES:Transfers in 85,550 85,550 85,548 (2)

TOTAL OTHER

FINANCING SOURCES 85,550 85,550 85,548 (2)



FUND BALANCE - END OF YEAR $ $ $ 100,788 $ 100,788


- 105 -

CITY OF BUENA PARK



TRAFFIC CONGESTION RELIEF SPECIAL REVENUE FUND




REVENUES:

Investment income $ 50,000 $ 50,000 $ 4,747 $ (45,253)Miscellaneous 30,000 30,000 23,162 (6,838)

TOTAL REVENUES 80,000 80,000 27,909 (52,091)

OTHER FINANCING USES:

Transfers out (225,000) (139,269) 85,731

TOTAL OTHER FINANCING USES (225,000) (139,269) 85,731

NET CHANGE IN FUND BALANCE 80,000 (145,000) (111,360) 33,640


FUND BALANCE - END OF YEAR $ 272,431 $ 47,431 $ 33,640


- 106-

CITY OF BUENA PARK


STATE OCATT SPECIAL REVENUE FUND




REVENUES:Intergovernmental $ 154.490 $ 154,490 $ 160,098 $ 5,608

TOTAL REVENUES 154,490 154,490 160,098 5,608


Public protection:Police department 154,490 154,490 160,098 (5,608)

TOTAL EXPENDITURES 154,490 154,490 160,098 (5,608)


OTHER FINANCING SOURCES:Transfers in 66,621 66,621

TOTAL OTHERFINANCING SOURCES 66,621 66,621


FUND BALANCE (DEFICIT) -BEGINNING OF YEAR (22,127) (22,127) (22,127)

FUND BALANCE - END OF YEAR $ (22,127) $ (22,127) $ 44,494 $ 66,621


- 107-

CITY OF BUENA PARK


CHANGES IN FUNlJ BALANCE - BUDGET AND ACTUAL

COPS/SLESF SPECIAL REVENUE FUND





REVENUES:

Intergovernmental $ 120,000 $ 120,000 $ 158,550 $ 38,550

Investment income 500 500 4,264 3,764

TOTAL REVENUES 120,500 120,500 162,814 42,314

EXPENDITURES:

Current:

Public protection:




OTHER FINANCING SOURCES:

Transfers in 136,530 136,530 1,056 (135,474)

TOTAL OTHER

FINANCING SOURCES 136,530 136,530 1,056 (135,474)

"NET CHANGE IN FUND BALANCE (53,330) (53,330)


FUND BALANCE - END OF YEAR $ 55,265 $ 55,265 $ $ (53,330)


- 108 -

CITY OF BUENA PARK



HOUSING AND COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND




REVENUES:

Intergovernmental $ 1,099,900 $ 1,099,900 $ 677,305 $ (422,595)Investrnentincorne 7,000 7,000 5,543 (1,457)Miscellaneous 1,000 1,000 982 (18)

TOTAL REVENUES 1,107,900 1,107,900 683,830 (424,070)

EXPENDITURES:


Economic development 976,510 1,038,175 845,687 192,488Capital outlay 71,580 70,355 56,107

TOTAL EXPENDITURES 1,048,090 1,108,530 901,794 206,736


(UNDER) EXPENDITURES 59,810 (630) (217,964) (217,334)

OTHER FINANCING SOURCES (USES):Transfers in 290,747 290,747Transfers out (471,590) (35,600) 435,990


SOURCES (USES) (471,590) 255,147 726,737

NET CHANGE IN FUND BALANCE 59,810 (472,220) 37,183 509,403

FUND BALANCE (DEFICIT) -

BEGIN1'<1NG OF YEAR (49,526) (49,526) (49,526)

FUND BALANCE (DEFICIT) - END OF YEAR $ 10,284 $ 509,403


- 109-

CITY OF BUENA PARK

SCHEDULE OF REVENUES, EXPENDlTIJRES AND


BUENA PARK FOUNDATION SPECIAL REVENUE FUND




Original Final Actual (Negative)REVENUES:

Investment income $ 750 $ 750 $ 727 $ (23)Miscellaneous 78,000 78,000 77,363 (637)

TOTAL REVENUES 78,750 78,750 78,090 (660)

EXPENDITURES:

Current:

General government 77,862 77,862 66,883 10,979


EXCESS OF REVENUES OVER(UNDER) EXPENDITURES 888 888 11,207 10,319




- 110-

CITY OF BUENA PARK



AB 2766/AQMD SPECIAL REVENUE FUND





REVENUES:

Intergovernmental $ 100,000 $ 100,000 $ 98,141 $ (1,859)

TOTAL REVENUES 100,000 100,000 98,141 (1,859)

OIBER FINANCING USES:Transfers in 270,000 270,000

TOTAL OTHER FINANCING USES 270,000 270,000

NET CHANGE IN FUND BALANCE 100,000 100,000 368,141 268,141




- 111 -

CITY OF BUENA PARK



CITY CAPITAL PROJECTS FUND





REVENUES:

Intergovernmental $ $ 2,130,138 $ 2,149,580 $ 19,442

Investment income 70,000 70,000 62,967 (7,033)

TOTAL REVENUES 70,000 2,200,138 2,212,547 12.409

EXPENDITURES:Capital outlay 40,927,475 4,857,943 36,069,532

TOTAL EXPENDITURES 40,927,475 4,857,943 36,069,532


(UNDER) EXPENDITURES 70,000 (38,727,337) (2,645,396) 36,081,941


Transfers in 500,000 37,128,970 2,169,648 (34,959,322)

Transfers out (1,211,000) (1,575,088) (364,088)

TOTAL OTHER FINANCINGSOURCES (USES) 500,000 35,917,970 594,560 (35,323,410)

NET CHANGE IN FUND BALANCE 570,000 (2,809,367) (2,050,836) 758,531


FUND BALANCE (DEFICIT) - END OF YEAR $ 2,134,431 $ (1,244,936) $ (486,405) $ 758,531


- 112 -

CITY OF BUENA PARK

SCHEDULE OF REVENUES, EXPENDffURES AND


PARK-IN-LIEU CAPITAL PROJECTS FUND





REVENUES:

Investment income $ 128.000 $ 128,000 $ 302,544 $ 174,544

Miscellaneous 500,000 500,000 1,014,322 514,322

TOTAL REVENUES 628,000 628.000 1,316,866 688,866

EXPENDITURES:

Current:Leisure:

Recreation administration 1,000,000 1,000,000

Capital outlay 150,000 5,129,010 540,066 4,588,944

TOTAL EXPENDITURES 150,000 6,129,010 1,540,066 4,588,944


(UNDER) EXPENDITURES 478,000 (5,501,010) (223,200) 5,277,810


Transfers in 4,500,000 1,000,000 (3,500,000)

Transfers out (100,000) (35,427) 64,573


SOURCES (USES) 4,400,000 964,573 (3,435,427)

NET CHANGE IN FUND BALANCE 478,000 (1,101,010) 741,373 1,842,383


FUND BALANCE - END OF YEAR $ 6,306,833 $ 4,727,823 $ 6,570,206 $ 1,842,383


- 113 -


- 114-

CITY OF BUENA PARK

DESCRIPTION OF OTHER MAJOR FUNDS

June 30, 2008

DEBT SERVICE FUND

Redevelopment Agency Debt Service Fund to account for that portion of tax increment revenue that isset asidc for repayment oflong-term debt ofthe Redevelopment Agency.

CAPITAL PROJECTS FUND

Redevelopment Agency Capital Projects Fund to account for financial resources to be used for thedevelopment and redevelopment associated with the Redevelopment Project Areas.

- 115 -

CITY OF BUENA PARK


CHANGES IN FUND BALANCE - BlJDGET AND ACTUAL

REDEVELOPMENT AGENCY DEBT SERVICE FUND


Budget Amounts

Original Final Actual


Positive(Negative)

REVENUES:

Taxes

Investment income

TOTAL REVENUES

$ 18,777,0001,200,000

19,977,000

$ 18,777,000

1,200,000

19,977,000

$ 20,679,971

2,146,146

22,826,]]7

$ 1,902,971

946,146

2,849,]]7

EXPENDIT1JRES:


Economic developmentDebt service:

Principal retirementInterest and other chargesBond issuance costs

TOTAL EXPENDITURES


(UNDER) EXPENDITURES

OTHER FINANCING USES:

Transfers inTransfers outProceeds of bond issuanceBond premium

TOTAL OTHER FINANCING USES

NET CHANGE IN FUND BALANCE




7,559,000 7,559,000 7,503,522 55,478

1,255,250 1,255,250 1,255,250

1,418,370 1,418,370 1,442,497 (24,127)

2,085,508 (2,085,508)

10,232,620 10,232,620 12,286,777 (2,054,157)

9,744,380 9,744,380 10,539,340 794,960

206,177 206,177

(3,987,680) (3,987,680) (65,526,000) (61,538,320)

75,720,000 75,720,00099,183 99,183

(3,987,680) (3,987,680) 10,499,360 14,487,040

5,756,700 5,756,700 21,038,700 15,282,000

24,941,625 24,941,625 24,941,625

$ 30,698,325 $ 30,698,325 $ 45,980,325 $ 15,282,000

- ]]6-

CITY OF BUENA PARK


REDEVELOPMENT AGENCY CAPITAL PROJECTS FUND


Budget Amounts

Original Final Actual


Positive

(Negative)

REVENUES:Investment incomeMiscellaneous

TOTAL REVENUES

EXPENDITURES:

Current:

Development:

Economic developmentCapital outlayDebt service:

Interest and other charges

TOTAL EXPENDITURES


(UNDER) EXPENDITURES

$ 71,840

316,880

388,720

3,441,600

553,000

3,994,600

(3,605,880)

$ 71,840

316,880

388,720

4,056,782

695,030

4,751,812

(4,363,092)

$ 152,873

491,777

644,650

4,742,411

68,731

317,796

5,128,938

(4,484,288)

$ 81,033

174,897

255,930

(685,629)

626,299

(317,796)

(377,126)

(121,196)


Transfers inTransfers out


SOURCES (USES)

NET CHANGE IN FUND BALANCE




3,987,680 3,987,680 65,526,000 61,538,320

(381,800) (25,136,800) (2,786,737) 22,350,063

3,605,880 (21,149,120) 62,739,263 83,888,383

(25,512,212) 58,254,975 83,767,187

24,925,502 24,925,502 24,925,502

$ 24,925,502 $ (586,710) $ 83,180,477 $ 83,767,187

- 117 -


- 118 -

CITY OF BUENA PARK

DESCRIPTION OF INTERNAL SERVICE FUNDS

June 30, 2008

Internal Service Funds are used to finance and account for activities involved in rendering equipmentreplacement and maintenance, building maintenance and self-insurance services to departments withinthe City. Costs of materials and services used are accumulated in these funds and charged to the userdepartments as such goods are delivered or services are rendered. The Internal Service Funds are asfollows:

Workers' Compensation Self-Insurance Fund to account for the cost of providing workers'compensation insurance to the various City departments. Such costs are charged to the departmentsbased upon a percentage of salaries.

Public Liability Self-Insurance Fund to account for the cost of providing general liability insurancecoverage to the various City departments. Such costs are charged to the departments at a fixed rate.

Accrued Leave Fund to account for vacation and sick leave pay-out to retiring employees.

Equipment Maintenance and Replacement Fund to account for the costs of movable equipment used byother City departments. Such costs are based upon actual usage at a fixed rate throughout the year.

Buildings and Grounds Maintenance Fund to account for the costs of maintaining City buildings andgrounds. Such costs are charged to the various departments based upon each department's estimatedusage of the buildings and surrounding grounds.

Management Information Systems Fund to account for the costs of providing computer equipment andmaintenance to the various City departments. Such costs are based upon the number of computer usersin each department.

- 1I9-

CITY OF BUENA PARK

COMBINING STATEMENT OF NET ASSETS

INTERNAL SERVICE FUNDS

June 30, 2008

Workers' Public

Compensation Liability AccruedSelf-Insurance Self-Insurance Leave

ASSETSCURRENT ASSETS:

Cash and investments $ 6,400,499 $ 719,827 $ 1,302,674Accounts receivable, net 73,430Interest receivable 51,764 5,812 10,552Loans receivableDue from other governmentsPrepaid items

TOTAL CURRENT ASSETS 6,525,693 725,639 1,313,226

NONCURRENT ASSETS:Capital assets, net of accumulated depreciation

TOTAL NONCURRENT ASSETS

TOTAL ASSETS 6,525,693 725,639 1,313,226

LIABILITIESCURRENT LIABILITIES:

Accounts payable 354 101,264

Accrued liabilitiesEmployee leave benefits

Claims payable 760,814 89,186TOTAL CURRENT LIABILITIES 761,168 190,450

NONCURRENT LIABILITIES:

Employee leave benefits

Claims payable 4,070,357 477,146TOTAL NONCURRENT LIABILITIES 4,070,357 477,146

TOTAL LIABILITIES 4,831,525 667,596

NET ASSETS

Invested in capital assetsUnrestricted 1,694,168 58,043 1,313,226

TOTAL NET ASSETS $ 1,694,168 $ 58,043 $ 1,313,226


- 120-

Equipment Buildings

Maintenance and Managementand Grounds Information

Replacement Maintenance Systems Total

$ 1,419,810 $ 764,090 $ 1,017,159 $ 11,624,059

27,576 4 101,010

11,463 6,169 8,213 93,973

54,990 54,990

4,178 4,178

1,673 20,471 22,144

1,515,512 774,441 1,045,843 11,900,354

2,050,710 11,024 483,753 2,545,487

2,050,710 11,024 483,753 2,545,487

3,566,222 785,465 1,529,596 14,445,841

66,285 101,489 27,181 296,573

20,277 13,933 34,210

12,967 7,790 20,757

850,000

99,529 123,212 27,181 1,201,540

45,271 27,197 72,4684,547,503

45,271 27,197 4,619,971

144,800 150,409 27,181 5,821,511

2,050,710 11,024 483,753 2,545,487

1,370,712 624,032 1,018,662 6,078,843

$ 3,421,422 $ 635,056 $ 1,502,415 $ 8,624,330

- 121 -

CITY OF BUENA PARK

COMBINING STATEMENT OF REVENUES, EXPENSES ANDCHANGES n·H-lET ASSETS



Workers! PublicCompensation Liability Accrued

Self-Insurance Self-Insurance Leave

OPERATING REVENUES:Charges for services $ 1,250,412 $ $

TOTAL OPERATING REVENUES 1,250,412

OPERATING EXPENSES:Self-insurance 574,407 712,712Employee benefits 181,299Maintenance and suppliesInformation systemsDepreciation

TOTAL OPERATING EXPENSES 574,407 712,712 181,299

OPERATING INCOME (LOSS) 676,005 (712,712) (181,299)

NONOPERATING REVENUES (EXPENSES):Investment income 295,941 7,816 63,691Gain on sale of property

TOTAL NONOPERATING REVENUES (EXPENSES) 295,941 7,816 63,691

INCOME (LOSS) BEFORE TRANSFERS 971,946 (704,896) (117,608)

TRANSFERS IN 1,749,996 50,000TRANSFERS OUT

CHANGE IN NET ASSETS 971,946 1,045,100 (67,608)

TOTAL NET ASSETS (DEFICIT) - BEGINNING OF YEAR 722,222 (987,057) 1,380,834

TOTAL NET ASSETS - END OF YEAR $ 1,694,168 $ 58,043 $ 1,313,226


- 122-

Equipment Buildings



$ 2,176,957 $ 1,442,988 $ 601,524 $ 5,471,881

2,176,957 1,442,988 601,524 5,471,881

1,287,119

181,299

1,665,501 1,379,114 3,044,615

360,757 360,757

638,259 622 89,996 728,877

2,303,760 1,379,736 450,753 5,602,667

(126,803) 63,252 150,771 (130,786)

62,617 32,646 48,327 511,038

45,187 45,187

107,804 48,327 556,225

(18,999) 95,898 199,098 425,439

1,799,996

(15,000) (15,000)

(18,999) 80,898 199,098 2,210,435

3,440,421 554,158 1,303,317 6,413,895

$ 3,421,422 $ 635,056 $ 1,502,415 $ 8,624,330

- 123 -

CITY OF BUENA PARK

COMBINING STATEMENT OF CASH FLOWS



Workers' PublicCompensation Liability AccruedSelf-Insurance Self-Insurance Leave

CASH FLOWS FROM OPERATING ACTNITIES:Receipts from user departments $ 1,256,141 $ 113 $Payments to suppliers for goods and services (968,015) (1,380,422)Payments to employees for services (181,299)

NET CASH PROVIDED (USED)BY OPERATING ACTIVITIES 288,126 (1,380,309) (181,299)

CASH FLOWS FROM NONCAPITAL FINANCING ACTNITIES:Cash reeeived from other funds 1,749,996 50,000Cash paid to other funds

NET CASH PROVIDED (USED) BYNONCAPITAL FINANCING ACTNITIES 1,749,996 50,000

CASH FLOWS FROM CAPITAL ANDRELATED FINANCING ACTNITIES:

Acquisition and construction of capital assetsSale of capital assets

NET CASH PROVIDED (USED) BY CAPITALAND RELATED FINANCING ACTNITIES

CASH FLOWS FROM INVESTING ACTMTIES:Interest received 305,911 5,648 67,595

NET CASH PROVIDED BYINVESTING ACTNITIES 305,911 5,648 67,595

NET INCREASE (DECREASE) IN CASHANDCASHEQUNALENTS 594,037 375,335 (63,704)

CASH AND CASH EQUNALENTS - BEGINNING OF YEAR 5,806,462 344,492 1,366,378

CASH AND CASH EQUNALENTS - END OF YEAR $ 6,400,499 $ $ 1,302,674


124 -

Equipment Buildings



$ 2,150,875 $ 1,438,817 $ 614,949 $ 5,460,895

(1,075,623) (925,919) (372,725) (4,722,704)

(546,268) (394,070) (1,121,637)

528,984 118,828 242,224 (383,446)

1,799,996

(15,000) (15,000)

(15,000) 1,784,996

(490,593) (8,263) (250,478) (749,334)

1,347 53,778

(438,162) (8,263) (249,131) (695,556)

64,561 33,206 50,413 527,334

64,561 33,206 50,413 527,334

155,383 128,771 43,506 1,233,328

1,264,427 635,319 973,653 10,390,731

$ 1,419,810 $ 764,090 $ 1,017,159 $ 11 ,624,059

- 125-

CITY OF BUENA PARK

COMBINING STATEMENT OF CASH FLOWSINTERNAL SERVICE FUNDS

(CONTINUED)


Workers' PublicCompensation Liability AccruedSelf-Insurance Self-Insurance Leave

RECONCILIAnON OF OPERATING INCOME (LOSS) TO NETCASH PROVIDED (USED) BY OPERATING ACTIVITIES:Operating income (loss) $ 676,005 $ (712,712) $ (181,299)

Adjustments to reconcile operating income (loss) tonet cash provided (used) by operating activities:

DepreciationChanges in operating assets and liabilities:

(Increase) decrease in accounts receivables 5,729 113

(Increase) decrease in loans receivables(Increase) decrease in due from other governments(Increase) decrease in prepaid itemsIncrease (decrease) in accounts payable 354 (157,084)

Increase (decrease) in accrued liabilitiesIncrease (decrease) in employee leave benefitsIncrease (decrease) in claims payable (393,962) (510,626)

TOTAL ADJUSTMENTS (387,879) (667,597)

NET CASH PROVIDED (USED)BY OPERATING ACTIVITIES $ 288,126 $ (1,380,309) $ (181,299)


- 126-

Equipment Buildings

Maintenance and Management

and Grounds InfonnationReplacement Maintenance Systems Total

$ (126,803) $ 63,252 $ 150,771 $ (130,786)

638,259 622 89,996 728,877

(26,082) 7 13,425 (6,808)(12,644) (12,644)

(4,178) (4,178)

(1,673) (1,861) (3,534)

56,936 55,666 (10,107) (54,235)

(424) 582 158

1,415 2,877 4,292(904,588)

655,787 55,576 91,453 (252,660)

$ $ 118,828 $ 242,224 $ (383,446)

- 127 -


- 128 -

CITY OF BUENA PARK

DESCRIPTION OF STATISTICAL SECTION CONTENTS

June 30, 2008

This part of the City of Buena Park's comprehensive annual financial report presents detailedinformation as a context for understanding what the information in the financial statements, notedisclosures, and required supplementary information say about the government's overall financialhealth.

Contents:

Financial Trends - These schedules contain trend information to help thereader understand how the City's financial performance and well-being havechanged over time.

Revenue Capacity - These schedules contain information to help the readerassess the City's most significant local revenue source, the property tax.

Debt Capacity - These schedules present information to help the reader assessthe affordability of the City's current levels of outstanding debt and the City'sability to issue additional debt in the future.

Demographic and Economic Information - These schedules offer demographicand economic indicators to help the reader understand the environment withinwhich the City's financial activities take place.

Operating Information - These schedules contain service and infrastructuredata to help the reader understand how the information in the City's financialreport relates to the services the City provides and the activities it performs.

- 129-

130 - 140

141 - 144

145 - 151

152 - 153

154 - 159

City of Buena ParkNet Assets by Component

Last Six Fiscal Years(accrual basis of accounting)

(in Tbousands)

Fiscal Year2002-03 2003-04 2004-05 2005-06 2006-07

Governmental Activities:Invested in capital assets,

net of related debt S 111,326 S 89,200 S 92,880 S 101,936 S 115,185

Restricted 46,251 49,722 60,922 75,655 92,445

Unrestricted (6,807) 24,656 27,464 32,070 40,045

Total governmental activities net assets 150,770 J63,578 181,266 209,661 247,675


Invested in capital assets,net of related debt 9,894 9,479 9,430 10,181 10,804

RestrictedUnrestricted 4,5J7 5,043 4,846 6,223

Total business-type activities net assets 14,411 14,522 14,605 J5,027 17,027

Primary Government:

Invested in capital assets,

In net of related debt 121,220 98,679 102,310 112,117 J25,989

Restricted 46,251 49,722 60,922 75,655 92,445

Unrestricted (2,290) 29,699 32,639 36,916 46,268

Total primary government net assets S 165,181 $ J78,100 S 195,871 S 224,688 S 264,702

Note: The City of Buena Park has elected to show only six years of data for this schedule,

Source: City of Buena Park Finance Department

130 -

Fiscal Year2007-08

$ 46,057

183,499

48,732

278,288

16,884

7,888

24,772

62,941

183,499

56,620

S 303,060

- 131 -

City of Buena ParkChanges in Net Assets - Expenses and Program Revenues


(in Thousands)

Fiscal Year

2002-03 2003-04 2004-05 2006-07Expenses:


General government $ 5,916 $ 5.560 $ 5,439 $ 6,377 $ 6,328

Leisure 1.895 1,877 1,932 2,010 2,649

Transportation 5,886 6,049 7.233 6,743 8,094Public protection 22,442 22,936 24,551 27,387 27,856

Development 6.081 5.120 7,410 8,484 10,959Environmental 2,291 2.154 2.178 2,392 2,504

Health 2,607 2,285 2.524 2,592 2,686Interest 2.763 1,532 1.589 1,467

Total governmental activities net expenses 49.881 52.856 57,452 62,703


Water 7,722 8,354 9,534 10,269 1l,129

Total business-type activities net assets 7,722 8,354 10,269 11,129

Total primary government expenses $ 57,603 $ 55,867 $ 62,390 $ 67,721 $ 73,832

Program Revenues:


Charges for services:

General government $ 739 $ 467 $ 390 $ 398 $ 488

Leisure 454 485 527 543 584

Transportation 1.020 170 347 333 328

Public protection 1,159 1,690 1,907 2,127 1,922

Development 1,171 903 1,447 1,062 1,104

Environmental 16 23 759 19

Health 2,316 2,221 2,255 2,421 2,457

Operating grants and contributions 7,514 6,562 5,307 3,957 5,071Capital grants and contributions 1,025 610 4,854 9,261

Total governmental activities program revenues 15,398 13,124 20,861 24,040


Charges for services:Water utility 8,809 9,604 9,741 9,929 12,559

Operating grants and contributions 92 588

Capital grants and contributions 588

Total business-type activities program revenues 8,993 9,604 9,741 9,929

Primary government program revenues $ 24,391 $ 22,728 $ 30,790 $ 37,775

Net (Expense)/Revenue:

Governmental activities $ (34,483) $ (34,389) S (35,799) $ (36,591) $ (38,663)

Business-type activities 1,271 1,250 207 (340)

Total primary government net expense $ (33,212) $ (33,139) S (35,592) S (36,057)

Note: The City of Buena Park has elected to show only six years of data for this schedule.


- 132-

Fiscal Year2007-08

$ 6,259

3,226

8,815

29,208

15,028

2,635

2,830

2,384

10,783

10,783

$ 81,168

$ 497

555

313

2,130

92159

2,606

3,692

7,384

18,157

12,772

5,553

18.325

$ 36,482

$ (52,228)

7,542

$ (44,686)

- 133 -

City of Buena ParkChanges in Net Assets - General Revenues

La."it Six Fiscal Years(accrual basis of accounting)

(in Thousands)

Fiscal Year2002-03 2003-04 2004-05 2005-06 2006-07

General Revenues and Other

Changes in Net Assets:

Governmental Activities:Property taxes S 12,628 S 15,906 $ 21,576 $ 26,090 $ 30,936

Sales taxes 13,710 14,971 11,930 13,439 17,476

Property taxes in lieu of sales taxes 4,049 5,039 5,521

Transient occupancy taxes 3,613 3,884 4,525 5,091 4,938

Franchise taxes 1,513 1,567 1,561 1,581 1,591

Other taxes 7,247 8,228 7,252 8,806 9,962

Investrnentincorne 1,936 806 2,125 2,782 5,210

Other 277 974 138 559 577

Transfers 330 330 330 644 330

Gain on sale ofproperty 438 560 136

Total governmental activities 41,254 47,104 53,486 64,591 76,677

Business-type Activities:Investment income 109 40 104 169 312

Other 101 1,153

Transfers (330) (330) (330) (560) (330)

Total business-type activities (221 ) (290) (125) 762 (I8)

Total primary government S 41,033 S 46,814 $ 53,361 S 65,353 $ 76,659

Change in Net Assets:

Governmental activities S 6,771 S 12,715 S 17,687 $ 28,000 S 38,014

Business-type activities 1,050 960 422 2,588

Total primary government $ 7,821 $ 13,675 $ 17,769 $ 28,422 $ 40,602



- 134-

Fiscal Year2007-08

$ 33,107

21,697

4,804

4,784

1,773

10,228

5,533

580

334

82,840

347

190

(334)

203

$ 83,043

$ 30,612

7,745

$ 38,357

- 135-

City of Buena ParkFund Balances - Governmental Funds

Last Six Fiscal Years(modified accrual basis of accounting)

(in Thousands)

Fiscal Year2002-03 2003-04 2004-05 2005-06 2006-07

General Fund:Reserved $ 7,867 $ 5,455 $ 5,222 $ 4,417 $ 3,797Unreserved, designated 3,917Unreserved, undesignated 19,008 20,195 21,942 23.998

Total general fund $ 26,875 $ 25,650 $ 23,301 $ 26,359 $ 31.712

All Other Governmental Funds:Reserved $ 19,489 $ 26,325 $ 32,835 $ 61,587 $ 72,044Unreserved, designated reported in:

Capital projects fundsUnreserved, undesignated reported in:

Special revenue funds 14,378 5,580 8,985 4,932 5,155Capital projects funds 8,570 11,428 12,698 (2,571) 3,020

Total all other governmental funds $ 42,437 $ 43,333 $ 54,518 $ 63,948 $ 80,219



- 136-

Fiscal Year2007-08

$ 4,7909,926

26,930

$ 41,646

$ 139,427

1,500

3,58520,711

$ 165,223

- 137 -

City of Buena ParkChanges in Fund Balances - Governmental Funds

Last Six Fiscal Years(modified accrual basis of accounting)

(in Thousands)

Fiscal Years

2002-03 2003-04 2004-05 2005-06 2006-07

Revenues:

Taxes $ 35,160 $ 39,742 $ 45,807 $ 53,940 $ 63,079

Licenses and pennits 474 436 761 557 492Fines and forfeitures 985 851 1,125 1,011 879

Intergovernmental 7,548 10,585 12,535 12,983 22,181

Charges for services 4.381 4,659 4,956 6,237 5,326

Investment income 2,610 1,398 2,242 2,683 5,088

Miscellaneous 281 1,546 2,160 1,396 2,697

Total revenues 51,439 59,217 69,686 78,807 99,742

Expenditures:

General government 5,043 4,795 4,994 5,397 5,441

Leisure 1,483 1,536 1,553 1,692 2,317

Health 2,397 2,285 2,524 2,592 2,687

Transportation 3,796 4,282 4,469 4,888 4,863

Public protection 20,517 22,439 24,101 26,444 27,918

Development 7,240 5,906 7,675 8,968 12,657

Environmental 2,109 2,189 2,240 2,370 2,589

Debt service:

Principal retirement 1,404 923 1,321 1,501 1,547

Interest and other charges 2,789 1,463 1,818 1,850 1,895

Bond issuance costs 979

Advance refunding escrow 4,304

Capital outlay 8,990 9,391 6,324 11,749 15,999

Total expenditures 55,768 60,492 57,019 67,451 77,913

Excess (deficiency) of revenues

over (under) expenditures (4,329) (1,275) 12,667 11,356 21,829

Other Financing Sources (Uses):

Transfers in 12,197 3,215 2,620 5,863 24,802

Transfers out (12,653) (5,520) (6,451) (5,838) (25,007)

Issuance of debt 2,412

Refunding bonds issued at a premium 24,118

Payment to refunded bond escrow agent (21,434)

Sale of property 1,107

Sale of capital assets 567

Total other financing sources (uses) 946 (3,831 ) 1,132 (205)

Net change in fund balances (2,373) (329) 8,836 12,488 21,624

Fund balances - July 1 69.312 68,983 77,819 90,307

Fund balances - June 30 $ 69,312 $ 68,983

Debt service as a percentage of

noncapital expenditures 51.33% 74.02% 51.76% 29.61% 23.33%



- 138-

Fiscal Year2007-08

$ 71,149

475

958

16,6265,631

5,916

1,698

102,453

5,567

2,962

2,830

5,496

28,883

18,2772,654

1,601

1,929

2,086

10,173

82,458

19,995

73,079

(74,530)

75,720

99

575

74,943

94,938

111,931

$ 206,869

14.46%

- 139-

City of Buena ParkGovernmental Activities Tax Revenues By Source


(in Thousands)

Property Tax TransientFiscal Property Sales and in Lieu of Occupancy Franchise OtherYear Tax Use Tax Sales Tax Tax Taxes

2002-03 $ 12,628 $ 13,711 S $ 3,613 $ 1,513 $ 7,247

2003-04 15,906 14,971 3,884 1,567 8,228

2004-05 21,576 11,930 4,049 4,525 1,561 7,252

2005-06 26,090 13,439 5,039 5,091 1,581 8,806

2006-07 30,936 17,476 5,521 4,938 1,591 9,962

2007-08 33,107 21,697 4,804 4,784 1,773 10,228



- 140-

City of Buena ParkDirect and Overlapping Property Tax Rates

Last Six Fiscal Years(rate per $1,000 ofassessed value)

Overlapping RatesCity Metro

Fiscal Direct Buena Park WaterYear Rate Schools District

2002-03 1.0000 0.0571 0.0067

2003-04 1.0000 0.0530 0.0061

2004-05 1.0000 0.0477 0.0058

2005-06 1.0000 0.0492 0.0052

2006-07 1.0000 0.0448 0.0047

2007-08 1.0000 0.0459 0.0045


Source: Orange County Auditor/Controller

- 141 -

City of Buena ParkPrincipal Property Tax Payers

Current Year and Nine Years Ago

2007-08 1998-99Percentage Percentage

of Total City of Total CityTaxable Taxable Taxable TaxableAssessed Assessed Assessed Assessed

Taxpayer Value Rank Value Value Rank ValueKnotfs Ber!)' Fann $ 295,080,662 1 4,37% $ 181,939,905 1 4,94%PRI Buena Park Indl California LLC 121,800,000 2 1,80% 0,00%Coventry II DDR 100,111,53 I 3 1048% 0,00%Amway Corporation 34,975,286 4 0,52% 0,00%LBA Realty Fund Holding Co. 34,949,846 5 0.52% 0.00%MS Rialto Shozi Buena Park 34,611,194 6 0.51% 0.00%Bottling Group LLC 31,908,777 7 0047% 0.00%Alticor Inc. 30,660,573 8 0045% 0.00%JC Penney Properties Inc. 28,417,444 9 0042% 50,380,388 4 1.37%HK Fullerton LLC 27,861,870 10 0041% 0.00%Nabisco Inc. 0.00% 66,111,778 2 1,79%Nutrilite Corporation 0.00% 62,660,389 3 1,70%Sunrise Buena Park 0.00% 42,494,391 5 1.15%Jim Dandy Markets 0.00% 38,335,719 6 1,04%Teachers Insurance &

Annuity Assoc. 0.00% 24,426,529 7 0.66%Robert Dollar Building Assoc. Ltd. 0.00% 17,654,310 8 0048%Oltmans SC Investment 0.00% 17,340,000 9 0047%CMFInc. 0.00% 16,400,526 10 0044%

$ 740,377,183 10.97% $ 517,743,935 14.05%

Excludes government and tax-exempt property owners

Source: Orange County Assessment Rolls and HdL Companies

- 142 -

City of Buena ParkSecured Property Tax Levies and Collections (1)

Last Six Fiscal Years

Total Collected within thcFiscal Tax fiscal year of the levy Collections in Total collections to dateYear Levy Amount %of Levy Subsequent Years Amount % of Levy

2002-03 $ 5,079,856 $ 5,002,823 98.48% $ 50,936 $ 5,053,759 99.49%

2003-04 5,083,738 5,006,643 98.48% 53,529 5,060,172 99.54%

2004-05 5,421,516 5,343,610 98.56% 58,325 5,401,935 99.64%

2005-06 5,803,838 5,689,465 98.03% 16,874 5,689,465 98.03%

2006-07 5,972,094 5,885,260 98.55% 5,885,260 98.55%

2007-08 6,144,400 5,927,041 96.46% (2) 5,927,041 96.46%

(1) Property tax totals are net of 1915 act hond

(2) Information not availahle


Source: Orange County Auditor/Controller

- 143 -

City of Buena ParkAssessed Value and Actual Value of Taxable Property

Last Six Fiscal Years(rate per $1,000 of assessed value)

Total TotalTaxable Direct

Fiscal Residential Commercial Industrial Other* Tax-Exempt Assessed TaxYear Property Property Property Property Property Value Rate

2002-03 $ 2,980,069 $ 806,914 $ 439,238 $ 820,479 $ 95,417 $ 5,142,117 1.00

2003-04 3,227,043 805,068 445,343 837,147 112,966 5,427,567 1.00

2004-05 3,509,777 879,365 483,837 856,771 118,759 5,848,509 1.00

2005-06 3,894,858 964,520 576,312 763,352 122,037 6,321,079 1.00

2006-07 4,361,702 1,129,515 585,221 769,675 132,101 6,978,214 1.00

2007-08 4,774,547 1,191,585 659,512 835,226 137,704 7,598,574 1.00

*Other property includes recreational, institutional, vacant, and miscellaneous property.

Note: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes toa total maximum rate of 1%ba."cd upon the assessed value of the property being taxed. Each year, theassessed value of property may be increased by an 1!inflation factor" (limited to a maximum increase of2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. Atthat point, the new assessed value is reassessed at the purchase price of the property sold. Theassessed valuation data shown above represents the only data currently available with respect to theactual market value of taxable property and is subject to the limitations described above.


Source: Orange County Assessor, HdL Coren & Cone

- 144-

City of Buena ParkRatios of Outstanding Debt by Type

Last Six Fiscal Years(amounts expressed in thousands, except per capita amounts)

Governmental Activities Business-Type Activities Restricted %of

Section Total fof Net Personal Per

Fiscal Revenue 108 Claims Revenue Notes Primary Debt Bonded Income Capita

Year Bonds La,,", Payable Bonds Payable Government (1) (1)

2002-03 $ 33,008 $ 4,675 $ 6,921 $ 897 $ 1,690 $ 47,191 $ 11,184 $ 36,007 0.88% $ 361

2003-04 31,426 4,319 6,826 817 2,865 46,253 13,876 32,377 0.73% 317

2004-05 30,146 4,319 6,325 733 1,350 42,873 20,574 22,299 0.43% 197

2005-06 28,687 4,319 6,786 644 1,215 41,651 31,000 10,651 0.10% 48

2006-07 27,181 4,319 6,302 551 1,074 39,427 25,313 14,1l4 0.19% 95

2007-08 101,440 4,319 5,397 452 855 112,463 47,317 65,146 1.47% 722

(1) See the Schedule of Demographic and Economic Statistics on page 152 for personal income and population data,

Note: Details regarding the outstanding debt can be found in the notes to the financial statements.



- 145-

- 146 -


City of Buena ParkDirect and Overlapping Governmental Activities Debt

As of June 30, 2008(in Thousands)

Governmental UnitDebt

Outstanding

EstimatedPercentage

Applicable (lJ

EstimatedShare of

OverlappingDebt

Debt repaid with property taxes:Orange County and Buena Park School District

Subtotal, overlapping debt

City of Buena Park direct debt

Total direct and overlapping debt

$ 82,851 0.88% $

$

15,649

15,649

1,190

16,839

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundariesof the City. This schedule estimates the portion of outstanding debt of tbose overlapping governments thatis borne by the residents and businesses of the City of Buena Park. This process recognizes that, whenconsidering the government's ability to issue and repay long-term debt, the entire debt burden borne by theresidents and businesses should be taken into account. However, this does not imply that every taxpayeris a resident, and therefore responsible for repaying the debt, of each overlapping government.

(1) The percentage of overlapping debt applicable is estimated using taxable assessed property values.Applicable percentages were estimated by detennining the portion of the county's taxable assessed valuethat is within the government's boundaries and dividing it by the county's total taxable assessed value.

Sources: Orange County Auditor/Controller and California Municipal Statistics, Inc.

- 147-

City of Buena ParkLegal Debt Margin Information

Last Six Fiscal Years(in Thousands)

Fiscal Year2002-03 2003-04 2004-05 2005-06 2006-07

Debt limit $ 748,859 $ 786,241 $ 859,252 $ 946,662 $ 1,026,917

Total net debt applicable to limit

Legal debt margin $ 748,859 $ 786,241 $ 859,252 $ 946,662 $ 1,026,917

Total net debt applicable to tbe limitas a percent of debt limit 0.00% 0.00% 0.00% 0.00% 0.00%

Legal Debt Margin Calculation for Fiscal Year 2007-2008:Assessed valueAdd back: exempt real property

Total assessed value

Debt limit (15% of total assessed value)Debt applicable to limit

Legal debt margin

Note: Under state finance law, the City of Buena Park's outstanding general obligation debt should notexceed 15 percent of total assessed property value. By law, the general obligation debt subject tothe limitation may be offset by amounts set aside for repaying general obligation bonds.

Note: The City of Buena Park has elected to show only six years of data for tbis schedule.


- 148-

Fiscal Year2007-08

$ 1,117,886

$ 1,117,886

0.00%

$ 7,351,653100,923

$ 7,452,576

$ 1,117,886

$ 1,117,886

149 -

City of Buena ParkRevenue Bond Coverage

1996 Revenue Bonds - Last Ten Fiscal YearsFiscal GrossYear Revenue (I) Principal Interest Total Coverage

1998-99 $ 33,572,341 $ 170,000 $ 170,300 $ 340,300 9865.51%

1999-00 37,201,855 175,000 163,330 338,330 10995,73%

2000-01 39,121,508 185,000 155,805 340,805 11479,15%

2001-02 43,990,623 195,000 147,295 342,295 12851.67%

2002-03 39,887,043 200,000 138,032 338,032 11799,78%

2003-04 40,466,558 210,000 128,232 338,232 11964.14%

2004-05 43,782,676 220,000 117,732 337,732 12963,73%

2005-06 48,933,841 235,000 106,513 341,513 14328.54%

2006-07 53,703,477 245,000 87,683 332,683 16142.54%

2007-08 61,958,980 260,000 74,170 334,170 18541.16%(lJ Total General Fund revenues

2000 Tax Allocation Refunding Bonds - Last Eight Fiscal YearsFiscal GrossYear Revenue (I) Principal Interest Total Coverage

2000-01 $ 7,907,798 $ 550,000 $ 417,286 $ 967,286 817,52%

2001-02 8,979,335 395,000 366,261 761,261 1179.53%

2002-03 8,504,504 415,000 349,447 764,447 1112.50%

2003-04 11,697,070 435,000 331,380 766,380 1526.28%

2004-05 16,141,004 455,000 311,790 766,790 2105,01 %

2005-06 21,256,682 475,000 290,628 765,628 2776.37%

2006-07 27,585,756 500,000 267,953 767,953 3592.12%

2007-08 29,680,915 525,000 218,327 743,327 3992,98%(I) Total Redevelopment Agency revenues


- 150-

City of Buena ParkRevenue Bond Coverage

(Continued)

2003 Tax Allocation Refunding Bonds - Last Five Fiscal YearsFiscalYear

GrossRevenue (1) Principal Interest Total Coverage

2007-08 29,680,915 915,000(1) Total Redevelopment Agency revenues

2003-04

2004-05

2005-06

2006-07

$ 11,697,070

16,141,004

21,256,682

27,585,756

$

730,000

880,000

895,000

$ 534,694

798,097

781,998

763,129

742,766

$ 534,694

1,528,097

1,661,998

1,658,129

1,657,766

2187.62%

1056.28%

1278.98%

1663.67%

1790.42%


- 151 -

City of Buena ParkDemographic and Economic Statistics


FiscalYear

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

PerPersonal CapitaIncome Personal Unemployment

Population (I) (in thousands) Income (2)' Rate (3)

80,617 $ 3,061,914 $ 37,981 5,80%

80,637 3,166,454 39,268 5.40%

81,066 3,346,404 41,280 4.90%

81,349 3,836,500 47,161 4.80%

82,452 4,050,537 49,126 5.00%

82,768 4,069,951 49,173 5.60%

*Based on Orange County personal income data.


Sources:(1) State of California - Department of Finance(2) U.S. Dept. of Commerce - Bureau of Economic Analysis(3) U.S. Dept. of Labor - Bureau of Labor Statistics

- 152 -

City of Buena ParkPrincipal Employers

Current Fiscal Year and Nine Fiscal Years Ago

2007-08 1998-99% of Total % of Total

City CityEmployer Employees Rank Employment* Employees Rank Employment

Knattls Berry Fann 5,071 1 12.50% 4,000 1 10.57%Leach Corporation 483 2 1.19% 540 4 1.43%Nutrilite 479 3 1.18% 570 3 1.51%Pepsi 462 4 1.14% 465 6 1.23%J.C. Penney 382 5 0.94% 511 5 1.35%Yamaha 342 6 0.84% 0.00%City of Buena Park 315 7 0.78% 442 8 1.17%Walmart 269 8 0.66% 0.00%Tawa Supennarket 250 9 0.62% 0.00%House of Imports 249 10 0.61% 0.00%Lucky Stores 0.00% 1,350 2 3.57%Ultra Wheel Company 0.00% 450 7 1.19%Sears, Roebuck & Co. 0.00% 250 9 0.66%Medieval Times 0.00% 244 10

Total 8,302 20.47% 8,822 23.32%

* Based upon Employment Development Department's estimate of 40,557 residents employed in 2007-2008and 37,834 employed in 1998-1999.

Source: City of Buena Park Finance Department and Buena Park Chamber of Commerce

- 153 -

City of Buena ParkFull-Time City Employees by Function


Fiscal YearFunction 2002-03 2003-04 2004-05 2005-06 2006-07

General Government 62 62 62 63 63Public Safety 144 144 143 143 143Public Works 50 48 46 46 46Parks & Recreation 25 24 25 25 25Economic Development 9 8 8 8 8Water 27 27 29 29

Total 317 313 313 314 314


Source: City of Buena Park Budget

- 154-

Fiscal Year2007-08

631434626

829

315

- 155 -

City of Buena ParkOperating Indicators by Function



Police:Calls dispatched 26,015 30,014 38,900 37,183 32,646Crime reports 13,200 13,400 14,000 10,819 4,617Moving citations 4,443 7,215 7,000 5,206 5,737Parking citations 14,809 16,933 17,000 19,883 19,506

Streets and Highways:Asphalt repair (in tons) 418 440 396 315 454Curb & gutter repair (lineal ft.) 845 901 910 1,188 2,428Sidewalk repair (lineal ft.) 1,243 797 793 1,462 1,832Traffic signals maintained

Water:Number of customer accounts 19,000 19,100 19,250 19,250 19,300Average daily consumption (millionsof gallons) 15 16 15 15 15

Water samples taken (annual) 1,200 1,200 1,200 1,200 1,200

Sewers:Feet of sewer mains root cut/

chemically treated 25,000 25,000 25,000 25,000 25,000

M'aintenance:Square ft. graffiti removal 3,603 3,808 6,316 5,309 5,191Streetsweeping miles 23,000 23,000 23,000 23,000 23,000Trees pruned per year 3,540 3,540 4,085 4,511 4,785

Culture and Recreation:Youth sports 1,322 1,432 1,441 1,405 1,380Aquatics 21,823 25,157 21,842 29,603 27,974Picnic rentals 5,935 9,615 8,550 6,500 10,400Leisure classes 7,840 10,222 9,733 7,869 8,294Senior Center participants 48,053 51,706 52,550 55,240 87,801


Source: City of Buena Park

- 156 -

Fiscal Year2007-08

37,1549,9007,198

19,764

3161,6993,322

19,300

151,200

25,000

5,10023,000

4,834

1,39028,570

9,5008,622

132,849

- 157 -

City of Buena ParkCapital Asset Statistics by Function



Public Safety:Police stations 1 1 1 1 1Number of patrol units 27 27 28 28 28

Highways and Streets:Miles of streets 147.1 146.9 146.9 147.3 147.6Traffic Signals 68 69 70 70 70

Water:

Number of active water wells 7 7 7 7 7Number of reservoirs 1 1 1 1 1Miles of lines & mains 214 215 216 217 220

Sewer:Miles of sanitary sewers 168 168 168 168 168Miles of flood control channel 21 21 21 21 21

Culture and Recreation:Number of parks 11 11 11 11 11Number of community centers 1 1 1 1 1


Source: City of Buena Park

- 158 -

Fiscal Year2007-08

130

147.670

81

220

16821

111

- 159-

cityofbuenapark, comprehensiveannual with report …

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