2007 CAFRI
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CITY OF ROSEMEAD
California
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 305 2007
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CITY OF ROSEMEAD
Rosemead, California
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2007
Prepared by the Finance Department
Steve Brisco
Director of Finance
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CITY OF ROSEMEAD
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Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2007
TABLE OF CONTENTS. (Continued)
page
STATISTICAL SECTION, (Continued)
Fund Balances of Governmental Funds
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anges
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overnmental Funds
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Assessed Value and Estimated Actual Value of Taxable Property
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Direct and Overlapping Property Tax Rates
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Principal Property Tax Payers
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Property Tax Levies and Collections
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Ratios of Outstanding Debt by Type
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Ratio of General Bonded Debt Outstanding
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Direct and Overlapping Governmental Activities Debt
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Legal Debt Margin
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Pledged Revenue Coverage
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Demographic and Economic Statistics
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Principal Employers
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Full-time and Part-time City Employees
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Operating Indicators by Function
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Capital Asset Statistics by Function
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I CITY OF ROSEMEAD
' Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2007
' TABLE OF CONTENTS
' INTRODUCTORY SECTION
Letter of Transmittal
' Directory of Officials
FINANCIAL SECTION
' Independent Auditors' Report
Management's Discussion and Analysis (Required Supplementary Information)
' Basic Financial Statements:
Government-wide Financial Statements:
' Statement of Net Assets
Statement of Activities
Fund Financial Statements:
' Governmental Funds:
Balance Sheet
' Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
Statement of Revenues, Expenditures and Changes in Fund Balances
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
' Statement of Fiduciary Assets and Liabilities - Agency Fund
Notes to the Basic Financial Statements
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REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Low-Moderate Income Housing Set-Aside .
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Federal Highway Grant
Notes to Required Supplementary Information
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CITY OF ROSEMEAD
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2007
TABLE OF CONTENTS. (Continued)
Page
FINANCIAL SECTION, (Continued)
OTHER SUPPLEMENTARY INFORMATION
Combining Balance Sheet - Non-Major Special Revenue Funds
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Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Non-Major Special Revenue Funds
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Traffic Safety
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Proposition C
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Proposition A
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - State Gas Tax
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Air Quality Management District
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Local Transportation
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Street Lighting
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Narcotics Forfeiture and Seizure
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Rosemead Housing Development Corporation
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Major Fund Budget and Actual Schedules:
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Redevelopment Agency Debt Service Fund 69
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Redevelopment Agency Capital Projects Fund 70
Combining Statement of Changes in Assets and Liabilities - Agency Fund 71
STATISTICAL SECTION
Net Assets by Component 73
Changes in Net Assets 74
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MAYOR:
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JOHN THAN
MAYOR PRO TEM:
JOHN NUNEZ
COUNCILMEMBERS:
MARGARET CLARK
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POLLY LOW
GARY A. TAYLOR
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Rosemead
8838 E. VALLEY BOULEVARD • P.O. BOX 399
ROSEMEAD, CALIFORNIA 91770
TELEPHONE (626) 569-2100
FAX (626) 307-9218
' February 25, 2008
To the Honorable Mayor, Members of the City Council, and Citizens of the City Of Rosemead:
State law requires that every general-purpose local government publish a complete set of audited
financial statements. This report is published to fulfill that requirement for the fiscal year ended
' June 30, 2007.
' Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control that it has
established for this purpose. Because the cost of internal control should not exceed anticipated
' benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
' Mayer Hoffman McCann P.C., Certified Public Accountants, have issued an unqualified
("clean') opinion on the City Of Rosemead's financial statements for the year ended June 30,
2007. The independent auditors report is located at the front of the financial section of this
report.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's
report and provides a narrative introduction, overview, and analysis of the basic financial
' statements. MD&A complement this letter of transmittal and should be read in conjunction with
it.
Profile if the Government
The City of Rosemead, incorporated on August 4, 1959, is located in the central metropolitan area
of Los Angeles County approximately nine miles east of the City of Los Angeles. It currently
occupies 5.5 square miles and shares boundaries with the Cities of San Gabriel, Temple City, El
Monte, South El Monte, Montebello and Monterey Park. The City serves a population of 57,427.
The City Of Rosemead operates as a general law city under the council-manager form of
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government. Policy-making and legislative authority are vested in a governing council (Council)
consisting of the mayor and four other members, all elected on a non-partisan basis. The Council
appoints the government's manager, who in turn appoints the heads of the various departments.
The City Council also appoints the City Clerk, the City Attorney, the City Treasurer and
commissioners to the Planning and the Traffic Commissions. "rile Council also acts as the
Rosemead Community Development Commission (RCDC) and the Rosemead Housing
Development Commission (RHDC). Council members serve four-year terms, with two members '
elected every two years and three members elected in the subsiquent two year period. The mayor
is elected for a one-year tern by the Council members.
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The City of Rosemead provides a full range of services, many of which are contracted, including
police and fire protection: the construction and maintenance of highways, streets and other '
infrastructure: and recreational and cultural activities. The Council is required to adopt a final
budget by no later than the close of the fiscal year. This annual budget serves as the. foundation
forthe City'of Rosemead's financial planning and control. The budget is prepared by fund, and
department. The City Manager is authorized to transfer budgeted amounts between funds within
the same department. Any new appropriations must be authorized by Council.
Local economy '
Major industry groups located within the City's boundaries inch de general consumer goods, '
restaurants and hotels, autos and transportation, fuel and service stations, food and drugs,
business and industry as well as building and construction. The City continues to have a better '
percentage of sales tax growth than Los Angeles County, accordingly, the City's sales tax
analysts are projecting modest growth in sales tax for the fiscal year 2008-09 and that increase
will be included in the budget.
Because of the City's location in a region with a varied economic base, the City experienced a
nine year history of declining unemployment. During the past ten years, the unemployment rate
has been consistently trending downward from an initial high of 7.5 percent (1998) to a low of
4.1 percent (2006). Unemployment inched up in 2007 to 43 percent. Unemployment is expected
to increase still further in 2008. 'File Federal Reserve (Fed) is projecting unemployment rates, at
the national level. to be between 52 and 5.3 percent. Rosemead's rate is roughly 1/2 percent
lower than the national average. Unemployment is expected to edge up in 2008 primarily '
because generally, the economy is decelerating. The Fed also projects national economic growth
to slow to about 1.3 to 2.0 percent. The Fed cites the intensifying housing slump, tighter credit
conditions. financial market turmoil and higher oil prices as primary causes of the economic slow
down in the U.S
Long-terrr:.Jinnnciai plnmritt,~~ ,
Unreserved, undesignated fund balance in the general fund (132..7 percent of total general fund
revenues.' falls within the policy guidelines set by the Council for budgetary and planning
purposes (i.e., policy is 32 percent of total general fund revenues). Projects to be completed or
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undertaken in the next two years include the completion of the Garvey Avenue Bridge
reconstruction, which will be paid for with Proposition C and Federal Highway Replacement and
Rehabilitation (I IBRR) funds, a street resurfacing project on Garvey Avenue, which will be paid
for with Proposition C funds and STP-L funds, and extensive repairs to the Council Chambers
with funding sources yet to be finalized. Additional projects are in the initial planning stages and
will be reported in subsequent reports as details solidify.
Relevan[financial policies
With the State declaring a fiscal emergency it is unclear. at this time. exactly what the impact to
the City will he. Accnrdingly, staff will take a cautious approach in estimating State provided
funds for the FY 2008-09 budget, as more details become available staff will adjust the budget to
accommodate State balancing measures that effect the City.
' Subsequent to closing the books. Council has approved a new reserve policy which sets the
reserve rate at approximately 32 percent of revenues and a new purchasing policy that will also
strengthen internal controls.
' Major inidatives
The Rosemead Community Development Commission (RCDC) is in the early stages of several
significant projects that will be reported on as the details become available. A project that can be
' reported at this time is the purchase of the Rosemead Inn. "rhe RCDC has received a purchase
agreement from the seller and upon final completion of the property purchase it will become a
potential redevelopment project. Other projects are in the planning and negotiation stages but are
not reportable at this time.
1 4 words wid Ac.knowied enrenls
The Government Finance Officers Association (GgOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City of Rosemead for its aanprehensive annual financial
report (CAFR) for the fiscal year ended June 30, 2005. With this current report the City will again
submit the accompanying financial report to GFOA for consideration of qualifications foi- the
Certificate of Achievement for Excellence in Financial Reporting. In order to be awarded a
Certificate of Achievement, the government has to publish an easily readable and efficiently
organized CAFR that satisfies both generally accepted accounting principles and applicable legal
requirements.
The preparation of this report would not have been possible without the dedicated service of the
entire staff of the finance and administration department. I wish to express our appreciation to all
members of the department who assisted and contributed in the preparation of this report. Credit
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also must he given to the mayor and the City Council for their unfailing support for maintaining
the highest standards of professionalism in the management of the City of Rosemead's finances.
Respectfully submitted,
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City of Rosemead
Directory of Officials
June 30, 2007
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CITY COUNCIL
John Tran, Mayor
John Nunez, Mayor Pro Tern
Margaret F. Clark, Council Member
Polly Low, Council Member
Gary A. Taylor, Council Member
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CITY MANAGEMENT
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Oliver Chi, City Manager
Brian Saeki, Assistant City Manager/External Business Units
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Matt Hawkesworth, Assistant City Manager/Internal Business Units
Steve Brisco, Director of Finance
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Don Anderson, Director of Public Safety
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rector of Parks and Recreation
Jim Donovan, Building Official
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Matt Everling, City Planner
Michelle Ramirez, Economic Development Administrator
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Chris Marcarello, Administrative Services Officer
Aileen Flores, Public Affairs Manager
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FINANCIAL SECTION
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Mayer Hoffman McCann P.C.
An Independent CPA Firm
Conrad Government Services Division
2301 Dupont Drive, Suite 200
Irvine. California 92612
949-474-2020 ph
949-263-5520 fx
w .mhm-pc.com
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The Honorable Mayor and City Council
' City of Rosemead
Rosemead, California
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INDEPENDENT AUDITORS' REPORT
We have audited the accompanying financial statements of the governmental activities, each
' major fund, and the aggregate remaining fund information of the City of Rosemead, California,
as of and for the year ended June 30, 2007, which collectively comprise of the City's basic
financial statements, as listed in the table of contents. These financial statements are the
' responsibility of the management of the City of Rosemead. Our responsibility is to express
opinions on these financial statements based on our audit.
' We conducted our audit in accordance with auditing standards generally accepted in the United
States of America, and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made
' by management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinions.
' In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position, of the governmental activities, each, major fund, and the
aggregate remaining fund information of the City of Rosemead, Califomia,'as of,June 30, 2007,
and the respective changes in financial position of the City of Rosemead California for the year
then ended in conformity with accounting principles generally accepted in the United States of
America.
' The information identified in the accompanying table of contents as management's discussion
and analysis and required supplementary information are not a required part of the basic
financial statements but are supplementary information required by accounting principles
' generally accepted in the United States of America. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement
and presentation of the supplementary information. However, we did not audit the information
' and express no opinion on it
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The Honorable Mayor and City Council
City of Rosemead
Rosemead, California
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the City of Rosemead's basic financial statements. The introductory
section combining and individual nonmajor fund financial statements and schedules and
statistical tables listed in the table of contents are presented for purposes of additional analysis
and are not a required part of the basic financial statements. The combining and individual
nonmajor funds financial statements and schedules have been subjected to the auditing
procedures applied in the audit of the basic financial statements, and in our opinion, are fairly
stated in all material respects in relation to the basic financial statements taken as a whole. The
introductory section and statistical tables have not been subjected to the auditing procedures
applied.in the audit of the basic financial statements and, accordingly, we express no opinion on
them.
In'accordance with Government Auditing Standards, we have. also issued a report dated
February 22, 2008 on. our'consideration of the City's internal control over financial reporting and
our tests of its compliance with certain provisions of laws, regulations, contracts, grant
agreements, and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
Aar
Irvine, California
February 22, 2008
' Management's Discussion and Analysis
' As management of the City of Rosemead, we offer readers of the City of Rosemead's financial
statements this narrative overview and analysis of the financial activities for the fiscal year ended
' June 30, 2007. We encourage readers to consider the information presented here in conjunction
with additional information that we have furnished in our letter of transmittal and the City's
financial statements.
Financial Highlights
' • The assets of the City of Rosemead pertaining to its governmental activities exceed its
liabilities, at the close of the fiscal year ended June 30, 2007, by $54.0 million. Of this
amount, $35.3 million is unrestricted, and thus may be used to meet the government's
' ongoing obligations to citizens and creditors.
• The City's total. net assets increased by $3.5 million due to generalized increases in
' program revenues and general revenues.
' • For the General Fund the revenues and transfers-in available for expenditure were
$193,444 more than expended. Net change in fund balance, with the inclusion of other
financing sources, is $125,439.
• As of June 30, 2007, unreserved undesignated fund balance in the General fund was $22.5
million or 131% of total General fund expenditures. The City of Rosemead's financial
' policies at the close of FY 2006-07 do not specify a reserve amount, however, on January
8, 2008 a reserve policy was approved by. City Council requiring a reserve of 32% of
specific revenues.
' Overview-of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial
' statements, which are comprised of three components: 1) government-wide financial statements,
2) fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are
' designed to provide readers with a broad overview of the City's finances, in a manner similar to
a private-sector business.
' The statement of net assets presents information on all of the City's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City of Rosemead
' is improving or deteriorating.
The statement of activities presents information showing how the government's net assets
' changed during the most recent fiscal year. All changes in net assets are reported as soon as the
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underlying event giving rise to the change occurs, regardless of the timing of related cash flows. ,
Thus, with the use of the accrual basis of accounting, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g. '
uncollected taxes and earned but unused vacation leave).
Both the government-wide financial statements distinguish functions of the City that are '
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City include ,
general government, public safety, public works, community services, community development,
and parks and recreation.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain '
control over resources that have been segregated for specific activities or objectives. The City of
Rosemead, like other state and local governments, uses fund accounting to ensure and ,
demonstrate compliance with finance-related legal requirements. All of the funds of the City can
be divided into two categories: governmental funds and fiduciary funds.
Governmental funds. Governmental funds. are used to account for essentially the same functions ,
reported as governmental activities in the government-wide financial statements. However,
unlike the government-wide financial statements, governmental fund financial statements focus '
on near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a '
government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial '
statements, it is useful to compare the information -presented for governmental funds.with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government's near-term '
financing decisions. Both the governmental fund balance sheet and governmental fund statement
of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City of Rosemead maintains individual governmental funds. Information is presented '
separately in the governmental fund balance sheet and in the governmental fund statement of '
revenues, expenditures, and changes in fund balances for the General Fund, CDBG Grant Fund,
Low-Moderate Income Housing Set-Aside Fund, Federal Highway Grant Fund, Rosemead
Community Development Commission Debt Service Fund and the Rosemead Community '
Development Commission Capital Projects Fund, all of which are considered to be major funds
for the purposes of this report. Data from the other governmental funds are combined into a
single, aggregated presentation. Individual fund data for each of these non-major governmental '
funds is provided in the form of combining statements elsewhere in this report.
The City of Rosemead adopts an annual appropriated budget for each of its governmental funds. '
A budgetary comparison statement has been provided for each governmental fund to demonstrate
compliance with this budget.
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Notes to the financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statements.
Notes to the financial statements can be found on pages 20 to 46 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the City's progress
in funding its obligation to provide pension benefits to its employees. Required supplementary
information can be found in notes to the financial statements. Required supplementary
information can be found on pages 47 to 52 of this report.
The City as a Whole
Net assets may serve as a useful indicator of a government's financial position. In the case of the
City of Rosemead, assets exceeded liabilities by $54.0 million at June 30, 2007. By far the
largest portion of the City's net assets, 88.8%, reflects its investment in illiquid capital assets
(e.g. land, infrastructure, buildings, equipment). The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending.
City of Rosemead Net Assets
As of June 30, 2007 and 2006
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".e~„3r"c^GovernmentaltAchvdtes,J
a"s.:•i~~
~??~x+ 2006:69
f;~~~~20U5 06
Current and other assets
$ 49,342,855
$ 48,088,843
Capital assets
47,987,394
44,066,466
Total assets
97,330,249
92,155;309
Long-term liabilities outstanding'
. 38,187,636
37,740,516
Other liabilities
5,126,044
3.868,791
Total liabilities
43,313,680
41,609,307
Net assets:
Invested in capital assets, net of related debt
10,541,606
13,345,433
Restricted
8,181,231
6,901,454
Unrestricted
35,293,732
30,299,115
Total net assets
$ 54,016,569
$ 50,546,002
The restricted portion of the City's net assets, $8.2 million or 15.2%, represents resources that
are subject to restrictions on how they may be used. The remaining balance of unrestricted net
assets, $35.3 million or 65.3%, may be used to meet the government's ongoing obligations to
citizens and creditors.
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Changes in Net Assets. Governmental activities increased the City's net assets by $3.5 million
during fiscal year 2006-07.
City of Rosemead Statement of Activities
Years Ended June 30, 2007 and 2006
Program revenues:
Charges for services
$ 2,755,215
$ 3,010,483
Operating contributions and grants
8,292,725
6,475,403
Capital contributions and grants
3,077,208
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General revenues:
Property taxes
9,121,682
3,915,980
Othertaxes
4,526,624
5,809,661
Investment income
2,028,128
1,930,059
Intergovernmental, unrestricted.
856,701 -
2,966,002
Other
478,473
1,323,520
Total revenues
31,136,756
25,431,108
Expenses:
General governmental
4,980,519
5,629,316
Public safety
6,618,779.
6,116,352
Public works
6,120,563.
3,403,699
Community services
602,114
3,223,843
Community development'
2,467,842
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-Parks and recreation
4,178,000
- 3,959,590
Interest expense -
2,698,372
1,832,219
Total expenses
27,666,189
24,165,019
Increase in net assets
3,470,567
1,266,089
Net assets - June 30, 2006
50,546,002
49.279,913
Net assets - June 30, 2007
$ 54,016,569
$ 50,546,002
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Revenues by Source - Governmental Activities
Revenues received by all the City's governmental funds were $28.9 million in FY 2006-07 or
14.5% more than FY 2005-06.
Statement of Revenues by Category
All Governmen
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Funds
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Taxes
$ 13,648,306 47.23%
$ 9,527,384 37.76%
Intergovernmental
9,419,698 32.60%
10,785,591 42.74%
Licenses and permits
1,683,204 5.82%
1,528,864 6.06%
Charges for services
414,375 1.43%
660,890 2.62%
Fines, forfeitures and penalties
437,117 1.51%
753,224 2.99%
Special assessments
789,089 2.73%
- 0.00%
Investment income
2,028,128 7.02%
.1,947,566 7.72%
Other
478,473 1-.66%
29,332 0.12%
Total
$ 28,898,390 100.00%
$ 25,232,851 100.00%
General Fund revenues increased by $2.0 million in FY 2006-07 over prior year amounts.
Statement of Revenues by Category
General Fund
AflA~~2006.`;07.' ~
Pt 2005 06v i~~ S
Taxes
$ 9,618,592
56.82%
$
5,616,272
37.60%
Intergovernmental
3,636,438
21.48%
5,747,997
38.48%
Licenses and permits
1,683,204
9.94%
1,528,864
1024%
Charges for services
414,375
2.45%
652,890
4.37%
Fines, forfeitures and penalties
206,971
1.22%
524,730
3.51%
Special assessments
45,070
0.27%
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0.00%
Investment income
848,132
5.01%
836,110
5.60%
Other
474,576
2.80%
29,042
0.19%
Total
$ 16,927,358
100.00%
$
14,935,905
100.00%
As of the end of the 2006-07 fiscal year, the City's governmental funds reported combined
ending fund balances of $41.1 million. Of this fund balance, 87.6% of the total, or $36.0 million,
constitutes "unreserved" fund balance, which is, within certain restrictions, available for
discretionary spending at the City Council's will. The remainder of the combined ending fund
balance is "reserved," indicating that it is not available for new spending because it has already
been committed to General Fund encumbrances (for liquidation of contracts and purchase orders
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of the prior period), $150,000, and Low-Moderate Income Housing Set-Aside Fund advances to
other funds totaling $5.0 million.
The General fund is the chief operating fund of the City of Rosemead. At the end of the 2006-07
fiscal year, unreserved undesignated fund balance of the General fund was $22.5 million, and
total fund balance was $22.6 million. As a measure of the General Fund's liquidity, it can be
useful to compare unreserved, undesignated fund balance to total fund expenditures. Unreserved
undesignated fund balance represents 131.5% of 2006-07 General Fund expenditures.
General Fund Budgetary Highlights
There were no budget amendments in FY 2006-07. Total revenues in the General Fund were
$1.3 million greater than estimated revenues primarily due to under estimated Intergovernmental
Revenues. General Fund expenditures were $1.8 less than appropriations. The savings were:
$3 million in Public Safety, $.56 million in Community Development and $.86 million in Parks
and Recreation. Budget to actual comparisons can be found on pages 53 to 71 in this report.
Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for its governmental activities as of
June 3,0, 2007, amounts to $48.0 million (net of accumulated depreciation). This investment in
capital assets includes land, buildings, park improvements, roadways, sewer, storm drains,
vehicles, computer equipment; furniture, other equipment:
Additional information- on the City's capital assets can be'found in the, notes to financial
statements section of this report, Note 6.
Long-term debt. At the end of the current fiscal year, the City of Rosemead had total debt
outstanding of $38.2.
City of Rosemead Long-Term Debt
k+y:14~'+ l 'YC 'LA 9'a~p1.
' GO~vE m
ental4r
v
-
~
y
bT~ ~~g~,.-R~..••ACLIVInC`'1<~"s",.a fit..? 9f _iKt:~'ut"
s~"
'2006 07
1'??
a
~2005 06
~
~
,
,
;
2
s
r
,
Employee compensated absences
$ 435,608
$ 323,686
Tax allocation bonds, Series 1993A
-
23,095,000
Tax allocation bonds, Series 2006A
13,225,000
14,005,000
Tax allocation bonds, Series 2006B
24,230,000
-
Unamortized bond premiums
297,028
316,830
Total
$ 38,187,636
$ 37,740,516
The City's long-term debt increased during the current fiscal year Due to the addition of new
debt to finance redevelopment activities in Redevelopment Project Area 1.
1
1
1
I
8
Further details on long-term debt can be found in the notes to financials statements section of this
report, Note 7.
' Economic Factors and Next Year's Budget
' • There exists regional concern over the housing values. This concern notwithstanding,
Rosemead's assessed property values and property tax collections remain strong.
' Assessed valuation increases of 9.7% were realized in FY 2006-07. Property tax
revenue (29.3% of City-wide revenues) remains a key city-wide revenue.
• Contributions toward employee pensions through the California Public Employees
Retirement System (CalPERS) increased sharply beginning in FY 2003-04 with the
decline in the interest rate environment which created pressure on annual budgets.
' The employer's contribution rate for miscellaneous employees was 6.838% in FY
2003-04 and has grown to 19.802% in FY 2007-08. On the other hand, the rate of
annual increases has leveled out. The employer contribution rate for miscellaneous
employees is projected by Ca1PERS to be 19.8% in FY 2008-09.
The above factors were considered in preparing the City's budget for FY 2007-2008. At
' the time that the FY 2007-08 budget was being prepared general economic conditions
were still reasonably stable. The State was predicting a strong economy with projections
of debt reduction in the near term and the budget was prepared accordingly.
Subsequently, economic conditions have worsened due to the housing market and credit
crisis, as well as the general erosion of economic conditions. The State announced that
' . they will be postponing gas tax payments to local agencies until fall 2008 and further
uncertainties at the State level seem imminent. The FY 2008-09 budget is expected to be
prepared with these uncertainties reflected in the FY 2008-09 budget. .
' .Requests for information
' This financial report is designed to provide a general overview of the financial position of the
City of Rosemead for all those with an interest in the government's finances. Questions
' concerning any of the information provided in this report or requests for additional financial
information should be directed to Steven Brisco, Finance Director, sbrisco@cityofrosemead.org
626.569.2120, or by U.S. mail: Finance Department, 8838 East Valley Boulevard, Rosemead,
CA, 91770.
1
9
CITY OF ROSEMEAD
Statement of Net Assets
'
June 30, 2007
Governmental
,
Activities
Assets:
Cash and investments (note 2)
$ 41,766,461
'
Receivables:
Accounts
6,256,217
Accrued interest
525,434
'
Notes
244,420
Deferred charges
550,323
- Capital assets (note 6):
'
Land
2,953,234
Construction in progress
8,004,998
Other capital assets, net
37,029,162
'
Total assets
97,330,249
,
Liabilities:
Accounts payable
Accrued salaries and benefits
4,538,050
154;992
,
'Deposits payable
35,792
Accrued interest payable
Noncurrent liabilities (note 7)
397,210
,
Due within one year
1,136,738
Due in more than one year
37,050,898
'
Total liabilities
43,313,680
Net assets:
'
Invested in capital assets, net of related debt
10,541,606
Restricted for:
Public works
5,170,465
'
Public safety
1,899,192
Low-moderate income housing
1,111,574
Unrestricted
35,293,732
'
Total net assets
$ 54,016,569
'
See accompanying notes to the basic financial
statements.
'
10
'
1
CITY OF ROSEMEAD
Statement of Activities
Fiscal Year ended June 30, 2007
'
Program Revenues
Net (Expense)
Operating
Capital
Revenue and
Charges for Contributions
Contributions
Changes in
Expenses Services and Grants
and Grants
Net Assets
Governmental activities:
'
General government
$ 4,980,519 316,849 -
(4,663,670)
Public safety
6,618,779 228,907 1,369,252
-
(5,020,620)
'
Public works
Community services
6,120,563 1,420,547 3,103,023
602,114 414,375 988,684
3,077,208
1,480,215
800,945
Community development 2,467,842 374,537 2,831,766
738,461
Parks and recreation
4,178,000 - -
(4,178,000)
'
Interest expense
2,698,372
(2,698,372)
Total governmental
'
activities
$ 27,666,189 2,755,215 8,292,725
3,077,208
(13,541,041)
General revenues:
Taxes:
.
Property taxes
9,121,682
'
Sales and use taxes
2,501,106
Transient occupancy taxes _
1,311,697
Franchise taxes
713,821
Investment income
2,028,128
Motor vehicle in lieu, unrestricted
856,701
'
Other general revenues
478,473
Total general revenues
17,011,608
'
Change in net assets
3,470,567
Net assets at beginning of year
50,546,002
'
Net assets at end of year
$ 54,016,569
See accompanying notes to the basic financial statements.
e
11
CITY OF ROSEMEAD
Balance Sheet - Governmental Funds
June 30, 2007
Assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Notes
Due from other funds (note 4)
Advances to other funds (note 4)
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Accrued' salaries. and benefits . "
Deposits payable _
Due to other funds (note 4)
Deferred revenue
Advances from other funds (note 4)
Special Revenue
Low-Moderate Federal
CDBG Income Housing Highway
General Grant Set-Aside Grant
$ 20,299,449 1,111,574
1,328,079 1,179,476 3,329,464
367,099 - -
244,420 -
2,237,537 - -
- - 4,947,087
$ 24,476,584 1,179,476 6,058,661 3,329,464
$ 1,309,601 639,433 1,837,145
147,773 3,104
- 376,930 1,860,403
408,665 1,085,887 1,462,675
Total liabilities
1,866,039
Fund balance:
Reserved for:
Encumbrances
150,000
Advances to other funds
-
Unreserved, reported in:
General fund
22,460,545
Special revenue funds
-
Debt service funds
Capital projects funds
-
Total fund balance
22,610,545
Total liabilities and fund balance $ 24,476,584
2,105,354 5,160,223
4,947,087
(925,878) 1,111,574 (1,830,759)
925,878 6,058,661 (1,830,759)
1,179,476 6,058,661 3,329,464
See accompanying notes to the basic financial statements.
12
1
1
D
b
S
i
C
it
l P
t
e
t
erv
ce
rojec
ap
a
s
'
Redevelopment
Redevelopment
Non-Major
Agency
Agency
Governmental
Total
552
12
141
233
8
213
653
41
461
766
,
,
,
,
,
,
'
-
164,809
254,389
6,256,217
158,335
525,434
-
244,420
'
2,237,537
4,947,087
'
552
12,464,377
8,468,042
55,977,156
1,19,836
632,035.
4,538,050
'
4115
154,992
.
-
35,792.
35,792 .
204
. 2,237,537
'
8,000
2,965;227
4;947,087
4,947,087
'
5,066,923
680,146
14,878,685
1
552 -
- 7,397,454
' 552 7,397,454
' 552 12,464,377
150,000
4,947,087
- 22,460,545
7,787,896 6,142,833
- 552
7,397,454
7,787,896 41,098,471
8,468,042 55,977,156
13
(This page intentionally left blank)
14
I
' CITY OF ROSEMEAD
' Governmental Funds
Reconcilation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
t June 30, 2007
Fund balances of 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 resouces in governmental fund activity.
' Capital assets
Accumulated depreciation
$ 41,098,471
77,012,368
(29,024,974)
' Long-term debt and compensated absences that have not been included
in the governmental fund activity:
Compensated absences (435,608)
Other long term liabilities '(37,201,705)
Accrued interest payable for the current portion of interest due on
' bonds payable has not been reported in the governmental funds.
' Revenues that are measurable but not available. Amounts are recorded
as deferred revenue under the modified accrual basis of accounting.
' Net assets of governmental activities
1
' See accompanying notes to the basic financial statements.
' 15
(397,210)
2,965,227
$ 54,016,569
CITY OF ROSEMEAD
Statement of Revenues. Expenditures and Changes in Fund Balances
Governmental Funds
Fiscal Year ended June 30, 2007
Special Revenue
Low-Moderate Federal
CDBG Income Housing Highway
General Grant Set-Aside Grant
Revenues
Taxes
$ 9,618,592
-
-
Intergovernmental
3,636,438
1,186,204
1,822,526
Licenses and permits
1,683,204
-
-
-
Charges for services
414,375
-
-
-
Fines, forfeitures and penalties
206,971
-
-
-
Special assessments
45,070
-
-
-
Investment income
848,132
-
45,385
-
Other
474,576
Total revenues
16,927,358
1,186,204
45,385
1,822,526
Expenditures:
Current:
General government
2,983,274
-
-
-
Public safety
6,300,405
Public works
564,970
1,076,865
3,703,935
Community services
384,207
1,035,217
Community development
2,603,196
-
Parks and recreation
4,249,462
Debt service:
Principal
-
Interest and fiscal charges
Payment to bond escrow agent
-
-
-
Total expenditures
17,085,514
2,112,082
-
3,703,935
Excess (deficiency) of revenues
over(under)expenditures
(158,156)
(925,878)
45,385
(1,881,409)
Other financing sources (uses):
Transfers in (note 5)
351,600
-
1,019,082
Transfers out (note 5)
(68,005)
(50,000)
Proceeds of refunding bonds
Payment to bond escrow agent
-
-
Total other financing sources (uses)
283,595
969,082
Change in fund balances
125,439
(925,878) ,
1,014,467
(1,881,409)
Fund balances at beginning
of year, as restated (note 13)
22,485,106
5,044,194
50,650
Fund balances (deficit) at end of year
$ 22,610,545
(925,878)
6,058,661
(1,830,759)
See accompanying notes to the basic financial statements.
16
1
'
Debt Service
Capital Projects
'
Redevelopment
Redevelopment
Non-Major
Agency
Agency
Governmental
Total
'
4,029,714
-
13,648,306
-
2,774,530
9,419,698
'
-
1,683,204
414,375
230,146
437,117
-
744,019
789,089
'
441,824
692,787
2,028,128
352
3,545
478,473
4,471,890
4,445,027
28,898,390
'
'
1,480,714
316,849
4,780,837
-
437,507
6,737,912
765,672
2,787,326
8,898,768
-
-
1,419,424.
80,367
6,857
2,690,420
-
-
-
4,249,462
t
780,000
-
780,000
1,505,781
1,006,944
2,512,725
1,323,238
1,323,238
'
3,609,019
3,333,697
3,548,539
33,392,786
(3,609,019)
1,138,193
896,488
(4,494,396)
24,342,791
-
469,605
26,183,078
'
(25,713,473)
(351,600)
(26,183,078)
24,230,000
24,230,000
(22,075,305)
(22,075,305)
'
2,267,486
(1,483,473)
118,005
2,154,695
(1,341,533)
(345,280)
1,014,493
(2,339,701)
1
1,342,085
7,742,734
6,773,403
43,438,172
'
552
7,397,454
7,787,896
41,098,471
1
'
17
CITY OF ROSEMEAD
Governmental Funds
Reconcilation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Fiscal Year ended June 30, 2007
Net changes in fund balances of governmental funds
Amounts reported for governmental activities in the statement of
activities is different because:
Governmental funds report capital outlay as expenditures. However, in
the statement of activities, the cost of those assets is allocated over their
estimated useful lives as depreciation expense. This is the amount by which
capital outlays exceeded depreciation in the current period.
Capital outlay
Depreciation expense
$ (2,339,701)
5,502,841
(1,581,913)
Proceeds from the issuance of debt is reported as other financing sources in
governmental funds. The issuance of bonds increases liabilities in the statement-
of net assets, but does not result in an increase in net assets in the statement
of activities. (24,230,000)
Repayment of bond principal is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the statement of net assets.
The statement of net assets includes accrued interest on long term debt.
To record as an expense the net change in compensated absences in the
statement of activities.
Revenues that are measurable but not available. Amounts are not recorded
as revenue under the modified accrual basis of accounting.
Change in net assets of governmental activities
See accompanying notes to the basic financial statements.
23,894,802
98,094
(111,922)
2,238,366
$ 3,470,567
18
1
1
1
1
t
1
CITY OF ROSEMEAD
Statement of Fiduciary Assets and Liabilities
Agency Fund
June 30, 2007
Assets
Cash and investments (note 2)
Total assets
Liabilities .
Deposits payable
Total liabilities
$ 385,555
$ 385,555
$ 385.555
$ 385,555
See accompanying notes to the basic financial statements.
19
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2007
(1) Summary of Significant Accounting Policies
(a) Reporting Entity
The City of Rosemead, California, ("the City") was incorporated in August 1959
under the general laws of the State of California. The City operates under an
elected Council/City Manager form of government. It provides a broad range of
services to its citizens, including general government, public safety, streets,
,sanitation and health, cultural and park facilities, and social services.
Many of the functions often provided by municipal government are, in the City,
provided by special districts. Examples of some of these special districts, which
usually encompass areas larger than the City itself, are the Fire Protection
District, the Library District and the County Flood Control District. Certain other
governmental functions are paid for by the City, but performed by a variety of
other public and private agencies under contract. Some of the contracts now in
effect are for police, street maintenance and animal control.
The accounting policies of the City conform to generally accepted accounting
principles as applicable to governments. As required by generally accepted
accounting principles, these financial statements present the government and its
component units, which are entities for which the government is considered to be
financially accountable. The City is considered to be financially accountable for
an organization if the City appoints a voting majority of that organization's
governing body and the City is able to impose its will on that organization or there
is a potential for that organization to provide specific financial benefits to or
impose specific financial burdens on the City. The City is also considered to be
financially accountable if an organization is fiscally dependent (i.e., it is unable to
adopt its budget, levy taxes, set rates or charges, or issue bonded debt without
approval from the City). In certain cases, other organizations are included as
component units if the nature and significance of their relationship with the City
are such that their exclusion would cause the City's financial statements to be
misleading or incomplete.
Based upon the above criteria, the blended component units of the City are the
Rosemead Financing Authority (the Authority), the Rosemead Community
Development Commission (the Commission) and the Rosemead Housing
Development Corporation (the Corporation).
20
' CITY OF ROSEMEAD, CALIFORNIA
' Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies. (Continued)
Rosemead Financing Authority
The Authority provides for the financing or refinancing of public capital
improvements and working capital requirements of local agencies that enter into
contractual arrangements with the Authority.
' Rosemead Community Development Commission
' The Commission's purpose is to prepare and carry out plans for the
improvement, rehabilitation and redevelopment of blighted areas within the City.
The Commission finances street, park and utility improvements, and also
' acquires and constructs major capital facilities, all within the Rosemead Project
Area No. 1.
I
Although the Agency is legally separate, it is reported as if it were part of the City
because the City Council also serves as the governing board of the Agency.
Separate financial statements of the Agency can be obtained from the Finance
Department.
Rosemead Housing Development Corporation
I
k
I
The Corporation accounts for the construction, financing and operations of low
and moderate-income housing. It is a California nonprofit benefit corporation
organized under Section 501(c)(3) of the Internal Revenue Code.
Since the City Council and/or other City officials serve as the Governing Board
for these component units, all of the City's component units are considered to be
blended component units. Blended component units, although legally separate
entities, are, in substance, part of the City's operations. Therefore, data from
these units are reported with the funds of the primary government, the City. The
Commission and the Corporation issue separate component unit financial
statements. The financial statements of these component units can be obtained
from the Finance Department.
21
1
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies. (Continued)
(b) Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
• Government-wide financial statements
• Fund financial statements
Notes to the basic financial statements
Financial reporting is based upon all GASB pronouncements, as well as the
FASB Statements and Interpretations, APB Opinions, and Accounting Research
Bulletins that were issued on or before November 30, 1989 that do not conflict
with or contradict GASB pronouncements.
Government-wide Financial Statements
Government-wide financial statements display information about the reporting
government as a whole, except for its fiduciary activities. These statements
include separate columns for the governmental and business-type activities of
the primary government (including its blended component units), as well as its
presented component units. The City of Rosemead has no discretely presented
component units. Eliminations have been made in the Statement of Activities so
that certain allocated expenses are recorded only once (by function to which they
were allocated). However, general governmental expenses have not been
allocated as indirect expenses to the various functions of the City.
Government-wide financial statements are presented using the economic
resources measurement focus and the accrual basis of accounting. Under the
economic resources measurement focus, all (both current and long-term)
economic resources and obligations of the reporting government are reported in
the government-wide financial statements. Basis of accounting refers to when
revenues and expenditures are recognized in the accounts and reported in the
financial statements. Under the accrual basis of accounting, revenues, expenses,
gains, losses, assets, and liabilities resulting from exchange and exchange-like
transactions are recognized when the exchange takes place. Revenues,
expenses, gains, losses, assets, and liabilities resulting from nonexchange
transactions are recognized in accordance with the requirements of GASB
Statement No. 33.
22
I
fl
1
I
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accountinq Policies, (Continued)
Program revenues include charges for services, special assessments, and
payments made by parties outside of the reporting government's citizenry if that
money is restricted to a particular program. Program revenues are netted with
program expenses in the statement of activities to present the net cost of each
program.
Amounts paid to acquire capital assets are capitalized as assets in the
government-wide financial statements, rather than reported as expenditure.
Proceeds of long-term debt are recorded as a liability in the government-wide
financial statements, rather than as other financing source. Amounts paid to
reduce long-term indebtedness of the reporting government are reported as a
reduction of the related liability, rather than as expenditure.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the
basis of separate funds, each of which is considered to be a separate accounting
entity. The operations of each fund are accounted for with a separate set of self-
balancing accounts that comprise its assets, liabilities, fund equity, revenues and
expenditures or expenses, as appropriate. Governmental resources are allocated
to and accounted for in individual funds based upon the purposes for which they
are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government's governmental,
proprietary, and fiduciary funds are presented after the government-wide
financial statements. These statements display information about major funds
individually and nonmajor funds in the aggregate for governmental and enterprise
funds. Fiduciary statements include financial information for fiduciary funds and
similar component units. Fiduciary funds of the City primarily represent assets
held by the City in a custodial capacity for other individuals or organizations.
' Governmental Funds
In the fund financial statements, governmental funds are presented using the
' modified-accrual basis of accounting. Their revenues are recognized when they
become measurable and available as net current assets. Measurable means that
the amounts can be estimated, or otherwise determined. Available means that
' the amounts were collected during the reporting period or soon enough thereafter
to be available to finance the expenditures accrued for the reporting period. The
City uses a thirty day availability period.
23
1
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies. (Continued)
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. 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 are
recognized as revenues in the period in which the underlying exchange
transaction on which they are based takes place. Imposed non-exchange
transactions are recognized as revenues in the period for which they were
imposed. If the period of use is not specified, they are recognized as revenues
when an enforceable legal claim to the revenues arises or when they are
received, whichever occurs first. Government-mandated and voluntary non-
exchange transactions are recognized as revenues when, all applicable eligibility
requirements have been met.
In the fund financial statements, governmental funds are presented using the
current financial resources measurement focus. This means that only current
assets and current liabilities are generally included on their balance sheets. The
reported fund balance (net current assets) is considered to be a measure of
"available spendable resources." Governmental fund operating statements
present increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets. Accordingly, they
are said to present a summary of sources and uses of "available spendable
resources" during a period.
Non-current portions of long-term receivables due to governmental funds are
reported on their balance sheets in spite of their spending measurement focus.
Special reporting treatments are used to indicate, however, that they should not
be considered "available spendable resources," since they do not represent net
current assets. Recognition of governmental fund type revenues represented by
noncurrent receivables are deferred until they become current receivables.
Noncurrent portions of other long-term receivables are offset by fund balance
reserve accounts.
Because of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities.
Since they do not affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the
year that resources were expended, rather than as fund assets. The proceeds of
long-term debt are recorded as other financing sources rather than as a fund liability.
Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
24
I
' CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
' (Continued)
t
(1) Summary of Significant Accounting Policies. (Continued)
' When both restricted and unrestricted resources are combined in a fund,
expenses are considered to be paid first from restricted resources, and then from
' unrestricted resources.
Fiduciary Funds
'
The City's fiduciary funds account for assets held by the government in a trustee
capacity or as an agent on behalf of others. Trust funds account for assets held
by the government under the terms-of a formal trust agreement.
'
(c) Major and Fiduciary Fund Types
'
The City's major governmental funds are as follows:
General Fund - Accounts for all financial resources except those required to be
accounted for in another fund. These resources are devoted to financing the
general services that the City performs for its citizens.
' Community Development Block Grant Fund - Accounts for Community
Development Block Grants received from the U.S. Department of Housing and
Urban Development.
' Low-Moderate Income Housing Set-Aside Fund - Accounts for 20% of gross
property tax increment revenue received by the Commission to fund future
' projects involving the replacement or rehabilitation of low and moderate-income
housing within City limits.
Federal Highway Grant Fund - Accounts for Federal Highway Grants received
' from the California Department of Transportation.
Debt Service Fund - Accounts for the accumulation of resources for the payment
' of general long-term debt principal, interest and related costs.
Capital Projects Fund - Accounts for financial resources to be used for the
' improvement and rehabilitation of the community redevelopment project areas
and acquisition or construction of major capital facilities within the City.
I
25
CITY OF ROSEMEAD. CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
The City's Fiduciary Fund is as follows:
Agency Fund - Accounts for the assets held in a trustee capacity or as an agent.
The cash being held primarily represents amounts placed on deposit for
refundable permits and performance bonds. The Agency Fund is custodial in
nature and does not present results of operations or have a measurement focus.
(d) Investments
For financial reporting purposes, investments are adjusted to their fair value
whenever the difference between fair market value and the carrying amount is
material.
Changes in fair value that occur during a fiscal year are recognized as
investment income reported for that fiscal year. Investment income includes
interest earnings, changes in fair value, and any gains or losses realized upon
the liquidation or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal
agents. Each fund's share in this pool is displayed in the accompanying financial
statements as cash and investments. Investment income earned by the pooled
investments is allocated to the various funds based on each fund's average cash
and investment balance.
(e) Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as
short-term, highly liquid investments that are both readily convertible to known
amounts of cash or so near their maturity that they present insignificant risk of
changes in value because of changes in interest rates. Cash equivalents also
represent the proprietary funds' share in the cash and investment pool of the City
of Rosemead. Cash equivalents have an original maturity date of three months or
less from the date of purchase. For purposes of the statement of cash flows, the
entire balance of cash and investments on the combined balance sheet for the
internal service fund is considered cash and cash equivalents.
26
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CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(f) Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical
'
records are available and at an estimated historical cost where no historical
records exist. Contributed capital assets are valued at their estimated fair market
value at the date of the contribution. Generally, capital asset purchases in excess
'
of $2,500 are capitalized if they have an expected useful life of one year or more.
'
Capital assets include public domain (infrastructure) general fixed assets
consisting of certain improvements including roads, streets, sidewalks, medians,
and storm drains.
1
Capital assets used in operations are depreciated over their estimated useful
lives using the straight-line, method in the government-wide financial statements
and in the fund financial statements of the internal service funds. Depreciation is
'
charged as an expense against operations and accumulated depreciation is
reported on the respective balance sheet.
'
The following schedule summarizes capital asset useful lives:
Buildings 50 years
Improvements other than buildings 15 years
'
Machinery and equipment 7 years
Autos and trucks 5 years
Furniture and office equipment 7 years
Infrastructure:
Bridges 50 years
Sewer system and storm drain system 50-100 years
'
Medians and sidewalks 40 years
Traffic signals 30 years
Streets 20 years
'
(g) Compensated Absences
' Vacation and sick leave pay are payable to employees at the time used or upon
termination of employment. All vacation is accrued when incurred in the
government-wide level financial statements. Sick pay is accrued to the extent it is
probable that the benefits will result in termination payments (i.e., rather than be
taken as absences due to illness or other contingencies, such as medical
appointments and funerals). The sick leave liability is estimated based on the
' 27
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued)
City's past experience of making termination payments from sick leave, adjusted
for the effect of changes in its termination payment policy and other current
factors. A liability for these amounts is reported in governmental funds only if it
has matured or will be paid from available resources of the current period. City
employees accumulate vacation hours that may be paid upon termination, death
or retirement. Employees can accumulate up to three weeks of accrued vacation
per year depending on the length of employment. Employees can accumulate up
to 160 hours of sick leave. Any hours in excess of 160 are considered to be
vested and are paid to the employee based on a vesting schedule. In addition,
employees can accrue compensatory time.
The City allows employees who have earned vacation time an opportunity to
have the City buy back up to two weeks of vacation time per year. In order to
participate in the Vacation Buy-Back Program, an employee must take at least 40
consecutive hours of vacation at one time.
(h) Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods
and are recorded as prepaid items in both government-wide and fund financial
statements.
(i) Fund Equity
In the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally
restricted by outside parties for use for a specific purpose. Designations of fund
balance represent tentative management plans that are subject to change.
(j) Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
28
1
1
1
1
1
1
1
1
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments
Cash and investments as of June 30, 2007 are classified in the accompanying financial
statements as follows:
Statement of Net Assets:
Cash and investments $41,766,461
Statement of Fiduciary Assets and Liabilities:
Cash and investments 385,555
Total cash and investments $42.152.016
Cash and investments as of June 30, 2007 consist of the following:
Deposits with financial institutions $19,469,962
Investments 22,682.054
Total cash and investments $42.152.016
29
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Investments Authorized by the California Government Code and the City's Investment
Policy
The table below identifies the investment types that are authorized for the City by the
California Government Code and the City's investment policy. The table also identifies
certain provisions of the California Government Code (or the City's investment policy, if
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 by the provisions of debt agreements of the City, rather than the general
provisions of the California Government Code or the City's investment policy.
Investment Types
Authorized by State Law
Authorized
By Investment *Maximum
Policy Maturity
*Maximum
*Maximum
Percentage
Investment '
Of Portfolio
In One Issuer
U.S. Treasury Obligations
U.S. Agency Securities
Banker's Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase Agreements
Medium-Term Notes
Money Market Mutual Funds
Local Agency Investment Fund
(LAIF)
Yes
5 years
None
None
Yes
5 years
None
None
Yes
270 days
40%
10%
Yes
270 days
25%
10%
Yes
3 years
30%
None
No
N/A
N/A
N/A
No
N/A
N/A
N/A
Yes
3 years
15%
10%
Yes
N/A
None
None
Yes
N/A
None
None
* Based on state law requirements or investment policy requirements, whichever is more
restrictive.
30
I
'
CITY OF ROSEMEAD, CALIFORNIA
'
Notes to the Basic Financial Statements
(Continued)
1
(2) Cash and Investments. (Continued)
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by prov
isions of the debt
agreements, rather than the general provisions of the California Government Code or
the City's investment policy. The table below identifies the investment types that are
authorized for investments held by bond trustee. The table also
identifies certain
'
provisions of these debt agreements that address interest rate risk,
credit risk, and
concentration of credit risk.
'
Maximum
Maximum
Authorized Maximum Percentage
Investment
'
Investment Tvpe Maturity Allowed,
in One Issuer
U.S. Treasury Obligations 5 years None
None
U.S. Agency Securities 5 years None
None
'
Banker's Acceptances 270 days 40%
10%
Commercial Paper 180 days 10%
10%
Money Market Portfolio 1 year None
None
'
Repurchase Agreements Life of Bond None
None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the
' fair value of an investment. Generally, the longer the maturity of an investment, the
greater the sensitivity of its fair value to changes in market interest rates. One of the
ways that the City manages its exposure to interest rate risk is by investing in pooled
' investments, such as LAIF.
1
31
1
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Information about the sensitivity of the fair values of the City's investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the
following table that shows the distribution of the City's investments by maturity:
Remaining Maturity (in Months)
12 Months 13 to 24 25 Months
Investment Type Total Or Less Months or Greater
State investment pool $ 21,504,598 21,504,598
Held by bond trustee:
Money market funds 34,377 34,377
Repurchase agreement 1,143,079 1,143,079
Total $ 22 682 054 1.5 4l)]
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation
to the holder of the investment. This is measured by the assignment of a rating by a
nationally recognized statistical rating organization. Presented below is the minimum
rating required by (where applicable) the California Government Code, the City's
investment policy, or debt agreements, and the actual rating as of year end for each
investment type.
Minimum
Legal
Not
Investment Type
Total
Rating
AAA Rated
State investment pool
$21,504,598
N/A
- 21,504,598
Held by bond trustee:
Money market funds
34,377
A
34,377 -
Repurchase agreement
1,143,079
N/A
- 1,143,079
Total
$22.682.054
34.377 22.647.677
32
' CITY OF ROSEMEAD, CALIFORNIA
' Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Custodial Credit Risk
' Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be
able to recover collateral securities that are in the possession of an outside party. The
' custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty (e.g., broker-dealer) to a transaction, a government will not be able to
recover the value of its investment or collateral securities that are in the possession of
' another party. The California Government Code and the City's investment policy do not
contain legal or policy requirements that would limit the exposure to 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
' state or local governmental units by pledging securities in an undivided collateral pool
held by a depository regulated under state law (unless so waived by the governmental
unit). The market value of the pledged securities in the collateral pool must equal at least
110% of the total amount deposited by the public agencies. California law also allows
financial institutions to secure City deposits by pledging first trust deed mortgage notes
having a value of 150% of the secured public deposits.
' Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
' regulated by the California Government Code under the oversight of the Treasurer of the
State of California. The fair value of the City's investment in this pool is reported in the
accompanying financial statements at amounts based upon the City's pro-rata share of
the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized
cost of that portfolio). The balance available for withdrawal is based on the accounting
' records maintained by LAIF, which are recorded on an amortized cost basis.
1
33
1
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(3) Property Taxes
Under California law, property taxes are assessed and collected by the counties up to
1% of assessed value, plus other increases approved by the voters. The property taxes
are recorded initially in a pool, and are then allocated to the cities based on complex
formulas. Accordingly, the City of Rosemead accrues only those taxes that are received
from the County within sixty days after year-end.
Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
The Community Development Commission of the City of Rosemead's primary source of
revenue comes from property taxes. Property taxes allocated to the Commission are t
computed in the following manner:
(a) The assessed valuation of all, property within the project area is determined on t
the date of adoption of the Redevelopment Plan.
(b) Property taxes related to the incremental increase in assessed values after the
adoption of the Redevelopment Plan are allocated to the Commission; all taxes
on the "frozen" assessed valuation of the property are allocated to the City and
other districts.
The Commission has no power to levy and collect taxes and any legislative property tax
shift might reduce the amount of tax revenues that would otherwise be available to pay
the principal of, and interest on, debt. Broadened property tax exemptions could have a
similar effect. Conversely, any increase in the tax rate or assessed valuation, or any
reduction or elimination of present exemptions would increase the amount of tax
revenues that would be available to pay principal and interest on debt.
34
I
1
1
1
1
1
1
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(4) Interfund Receivables and Payables
Current interfund receivables and payables balances at June 30, 2007 are as follows:
Due from other funds Due to other funds
General Fund CDBG Grant
Federal Highway.Grant
Local Transportation
Total General Fund
Total
(A) Short term borrowing to cover temporary cash shortfalls.
Amount
$ 376,930 (A)
1,860,403 (A)
204 (A)
2.237, 537
Noncurrent interfund receivable and payable balances at June 30, 2007 are as follows:
Advances to other funds Advances from other funds Amount
Low-Moderate Income Capital Projects Fund $ 4,947,087 (B)
Housing Set-Aside
Total $ 4.947.087
(B) Under State law, the Commission is required to set aside a portion of its property
tax increment revenue for low- and moderate-income housing. The Commission
has made findings that, for the years ended June 30, 1986 through 1991, it was
allowed to defer funding of the set-aside. The set-aside amounts incurred during
the fiscal years ended June 30, 1994, 1995 and 1996 were also deferred until the
fiscal year ending June 30, 2023, as provided by the Commission's adoption of
the housing deficit repayment plan. As of June 30, 2007, the accumulated set-
aside amount not yet funded was $4,947,087. As required by law, the
Commission devised a plan to fund the accumulating amount.
35
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(5) Interfund Transfers
Interfund transfers were as follows for the year ended June 30, 2007:
Transferln Transfer Out Amount
General Fund Rosemead Housing
Development Corporation $ 351.600
Low-Moderate Income
Housing Set-Aside CDC Capital Projects 1,019,082 (A)
CDC Debt Service CDC Capital Projects 24.342.791 (B)
Narcotics Seizure General Fund 68.005
Rosemead Housing Low-Moderate Income
Development Corporation Housing Set Aside 50,000
CDC Capital Projects 351,600
Subtotal 401,600
Total $26.183 078 .
The following describes the significant transfers in and transfers out included in the
financial statements:
(A) The CDC Capital Projects fund transferred 20% of tax increment earned during
the fiscal year ended June 30, 2007 to the Low-Moderate Income Housing Set-
Aside Fund.
(B) The CDC Capital Projects Fund transferred bond proceeds of $24,342,791 to the
CDC Debt Service Fund to provide funding for the repayment of the Tax
Allocation Bonds, Series 1993A.
36
' CITY OF ROSEMEAD, CALIFORNIA
' Notes to the Basic Financial Statements
(Continued)
1
(6) Capital Assets
Capital asset activity was as follows for the year ended June 30, 2007:
Balance at
Balance at
'
June 30, 2006
Increases
Decreases June 30, 2007
Governmental activities:
Capital assets not depreciated:
'
Land
$ 2,953,234
2,953,234
Construction in progress
2,725,784
5,279,214
8,004,998
Total capital assets
not being depreciated
5,679.018
5,279,214
10,958,232
'
Capital assets being depreciated:
Buildings
22,634,585
67,387
- 22,701,972
Improvements other than buildings 868,483
-
- 868,483
Machinery and equipment
711,789
86,772
_ 798,561
Autos and trucks
370,440
370,440
Furniture and office equipment
2,395,612
69,468
- 2,465,080
Infrastructure
38,849,600
38.849.600
'
Total capital assets
being depreciated
65,830.509
223,627
- 66,054,136
'
Less accumulated depreciation for:
Buildings
5,189,406
321,762
_ 5,511,168
'
Improvements other than buildings 868,483
868,483
Machinery and equipment
690,685
19,946
- 710,631
'
Autos and trucks
Furniture and office equipment
316,450
2,033,135
42,885
110,549
- 359,335
2,143,684
Infrastructure
18.344.902
1,086,771
19,431.673
'
Total accumulated depreciatio
n 27.443.061
1,581,913
29.024.974
Total capital assets being
depreciated, net
38,387.448
(1,358,286)
37,029,162
'
Governmental activities
capital assets, net
44.066.466
47 987 394
'
'
37
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(6) Capital Assets, (Continued)
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental activities
General government $ 87,760
Public Works 1,263,874
Community development 230.279
Total depreciation expense 1.581.913
(7) Changes in Long-Term Liabilities
Long-term debt consists of the following at June 30, 2007:
Balance at
Balance at
Due within
June 30, 2006
Additions
Reductions
June 30. 2007
One Year
Governmental activities:
Tax allocation bonds,
Series 1993A $23,095,000
23,095,000
-
-
Tax allocation bonds,
Series 2006A 14,005,000
780,000
13,225,000
810,000
Tax allocation bonds,
Series 2006B -
24,230,000
-
24,230,000
295,000
Unamortized bond
premiums 316,830
-
19,802
297,028
19,802
Compensated
Absences 323.686
229.922
118,000
435.608
11.936
$37.740.516
24.459.922
24 012.802
38187,636
.1
The City records expenditures related to compensated absences through the City's
General Fund.
38
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1
1
H
I
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(7) Changes in Long-Term Liabilities, (Continued)
Tax Allocation Bonds, Series 2006A
On March 9, 2006, the Commission issued tax allocation bonds in the amount of
$14,005,000 (Series 2006A) to: (1) refund a portion of the Commission's outstanding
Series 1993A bonds and (2) to finance redevelopment activity in Redevelopment Project
Area No.1. The bonds bear interest ranging from 3.25% to 5.00% and mature in annual
installments of $780,000 to $1,250,000 on various dates through October 1, 2022. The
Commission purchased a surety bond in lieu of cash reserve in the amount of
$1,323,238. Portions of the bonds are subject to early redemption, at the option of the
Commission, beginning October 1, 2017.
A surety bond has been acquired to satisfy the reserve requirements. As of June 30,
2007 the outstanding balance was $13,225,000.
Tax Allocation Bonds, Series 2006B
In December 2006, the Commission issued $24,230,000 in Project Area No. 1 Tax
Allocation Bonds. The bonds mature in amounts ranging from $70,000 to $1,430,000
with interest rates ranging from 3.25% to 4.25% through October 1, 2025. The net
proceeds were used to refund the remaining $23,095,000 amount outstanding on the
1993 Tax Allocation Bonds. The securities were deposited in an irrevocable trust with
an escrow agent to provide for all future debt service payments on the 1993 Bonds. As
a result, the entire 1993 Bonds are considered to be defeased and the liability for those
bonds has been removed from the government-wide financial statements. The advance
refunding resulted in an economic gain of approximately $2,600,000 and a difference
between the reacquisition price and the net carrying amount of the old debt of
$1,527,568.
A surety bond has been acquired to satisfy the reserve requirements. As of June 30,
2007, $24,230,000 of the bonds are outstanding.
39
CITY OF ROSEMEAD, CALIFORNIA '
Notes to the Basic Financial Statements ,
(Continued)
(7) Changes in Long-Term Liabilities, (Continued)
At June 30, 2007, debt service requirements to maturity for governmental activities long-
term debt are as follows:
2006A Tax Allocation Bonds 2006B Tax Allocation Bonds ,
Year Ending June 30 Principal Interest Principal Interest
2008 $ 810,000 1,815,114 295,000 817,327
'
2009 845,000 1,785,183 70,000 1,041,261
2010 870,000 1,757,314 75,000 1,038,986
2011 900,000 1,727,989 75,000 1,036,361
'
2012 930,000 419,481 80,000 1,033,736
2013-2017 5,235,000 1,521,555 430,000 5,125,365
2018-2022 3,320,000 362,542 3,715,000 4,911,918
'
2023-2027 315,000 12,994 6,890,000 3,774,336
2028-2032 - 8,595,000 2,091,625
2033-2034 4,005,000 268,406
,
$13 225 000 .402.17 24.230 000 21.139,321
(8) Risk Mana
ement
,
g
Self-insurance pool pursuant to ioint powers agreement
The City is a member of the California Joint Powers Insurance Authority (the Authority).
,
The Authority is composed of 107 California public entities and is organized under a joint
powers agreement pursuant to California Government Code 6500 et seq. The purpose
of the Authority is to. arrange and administer programs for the pooling of self-insured
'
losses, to purchase excess insurance or reinsurance, and to arrange for group-
purchased insurance for property and other coverages. The Authority's pool began
covering claims of its members in 1978. Each member government has an elected
'
official as its representative on the Board of Directors. The Board operates through a
nine-member Executive Committee.
'
The City participates in the Authority
s general liability program for which each member
government pays a primary deposit to cover estimated losses for a fiscal year (claims year).
Six months after the close of a fiscal year, outstanding claims are valued. A retrospective
deposit computation is then made for each open claims year. Costs are spread to
'
members as follows: the first $30,000 of each occurrence is charged, directly to the
member costs, from $30,001 to $750,000 are pooled based on a members' share of costs
under $30,000; costs from $750,001 to $15,000,000 are pooled based on payroll. Costs of
'
covered claims above $15,000,000 are currently paid by reinsurance. The protection for
each member is $50,000,000 per occurrence and $50,000,000 annual aggregate. ,
40 '
I
' CITY OF ROSEMEAD, CALIFORNIA
' Notes to the Basic Financial Statements
(Continued)
1
(8) Risk Management, (Continued)
1 The City also participates in the workers' compensation pool administered by the
Authority. Members retain the first $50,000 of each claim, Claims are pooled separately
' between public safety and nonpublic safety. Loss development reserves are allocated by
pool and by loss layer ($0 to $100,000 allocated by retained amount and $100,000 to
$2,000,000 by payroll). Losses from $50,000 to $100,000 and the loss development
' reserve associated with losses up to $100,000 are pooled based on the member's share
of losses under $50,000. Losses from $100,000 to $2,000,000 and loss development
reserves associated with losses from $100,000 to $2,000,000 are pooled based on
' payroll.. Costs from $2,000,000 to $50,000,000 are transferred to an excess insurance
policy. Costs in excess of $50,000,000 are pooled among the members based on
payroll. Administrative expenses are paid from the Authority's investment earnings.
' The City participates in the pollution legal liability and remediation legal liability
insurance which is available through the Authority. The policy covers sudden and
gradual pollution of scheduled property, streets and storm drains owned by the City.
Coverage is on a claims-made basis. There is a $50,000 deductible. The Authority has a
limit of $120,000,000 for the three-year period from July 1, 2005 through July 1, 2008.
Each member of the Authority has $10,000,000 limit during the three-year term of the
' policy.
During the past three fiscal years, none of the above programs of protection have had
' settlements or judgments that exceeded pooled or insured coverage. There have been
no significant reductions in pooled or insured liability coverage from coverage in the prior
year.
1
1
41
1
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(9) , Retirement Plans
Defined Contribution Pension Plan
The City had a defined contribution pension plan that covered substantially all retired
employees and was funded by a group annuity contract. Plan participants became
vested upon the dissolution of the plan on September 8, 1992. There were no
subsequent contributions to this plan. On September 8, 1992, participants of the plan
who were current employees had their share of the annuity contract transferred to the
California Public Employees' Retirement System (PERS). The value of the external
investment pool for retired employees is $63,025 as of June 30, 2007.
Defined Benefit Pension Plan
The City contracts with the Public Employees' Retirement System (PERS) of the State of
California (Plan) to provide its salaried employees retirement and disability benefits
which are paid by the State of California under a cost-sharing multiple-employer plan.
Copies of PERS' annual financial report may be obtained from its executive office
located at 400 P Street, Sacramento, California 95814.
Through June 30, 2003, the PERS retirement and disability plan was an agent multiple-
employer retirement plan. Effective July 1, 2003, due to the City having under 100
employees, the City's PERS pension plan was converted from an agent multi-employer
plan(former plan) to a cost-sharing multiple-employer plan. The former plan is an
aggregate of single employer plans where separate accounts are maintained for each
employer and contributions by the employer benefit only the employees of the employer.
Under this plan, separate actuarial valuations are performed for each employer and the
results are attributed to and accounted for by the employer. The cost-sharing multiple-
employer plan is a "Pooling" arrangement whereby risks, rewards and benefit costs are
shared and not attributed individually to any single employer. Periodic employer pension
expense can be significantly different between the plan types. The change to the
pooling arrangement was initially effective for the City's required contribution rate during
the fiscal year ended June 30, 2007.
At the time of joining the risk pool under the cost-sharing multiple-employer plan, a side
fund (the amount that approximates what the City would owe PERS if it exited the plan)
was created to account for the difference between the funded status of the pool and the
funded status of the City's plan.
42
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' CITY OF ROSEMEAD, CALIFORNIA
' Notes to the Basic Financial Statements
(Continued)
(9) Retirement Plan. (Continued)
All permanent City employees are eligible to participate in the System. Employees
attaining the age of 55 with five years of credited California service (service) are eligible
' for normal retirement and are entitled to a monthly benefit of 2.0% of their final
compensation for each year of service. Final compensation is defined as the highest
annual salary earned. Retirement may begin at age 50 with a reduced benefit rate. The
' plan also credits employees for unused sick leave. Upon separation from the plan prior
to retirement, members' accumulated contributions are refundable with interest credited
through the date of separation.
' The City pays the employees' required contribution of 7% of regular earnings. The City is
required to contribute at an actuarially determined rate; the current rate is 20.889% of
' annual covered payroll for miscellaneous employees. The contribution requirements of
plan members and the City are established and may be amended by CaIPERS.
Three-year trend' information for CalPERS:
Annual Percentage
Pension Cost of APC _Net Pension
' Fiscal Years Ended June 30, (APC) Contributed Obligation
2005 $ 269,457 100
2006 440,687 100
2007 471,068 100
' Supplemental Defined Benefit Pension Plan
Effective July 1, 2000, the City entered into an agreement with Public Agency
' Retirement Services (PARS) whereby the City contributes to a supplemental employee
pension plan (the plan ll), a single-employer defined benefit pension plan administered
by Phase II Systems. The plan II provides a supplemental retirement benefit of 1% for
each year of service to plan members and beneficiaries. Employees with at least 10
' years of service and City Council members with at least 10 years of service are eligible
to participate at age 60 and receive an annual benefit equal to 3% of the highest annual
gross pay for each year of service. Benefits are determined using the same method as
' CalPERS benefits.
PARS issues a publicly available financial report that includes financial statements and
' required supplementary information for the plan II. That report may be obtained by
writing to PARS, 3961 MacArthur Boulevard, Suite 200, Newport Beach, California,
92660.
' 43
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(9) Retirement Plan, (Continued)
Funding policy
Plan members are not required to contribute any of their annual covered salary, as the
City will be required to contribute the actuarially determined rate. The rate for the year
ended June 30, 2007 was 11.48% of annual covered payroll. The City expects to fund
the initial actuarial calculated accrued benefit over the first few years of the plan 11.
Annual pension cost
The required contribution is determined as part of the latest actuarial valuation, using the
entry-age actuarial cost method with the contributions determined as a percent of pay.
The actuarial assumptions used were the same as used for CalPERS. A twenty year
amortization period has been selected to amortize past service costs with 16 years
remaining.
Three-year trend information for Phase II Systems:
Annual
Pension Cost
Fiscal Years Ended June 30 A( PC)
2005
$214,294
2006
204,740
2007
298,238
Post-Employment Healthcare Plan
Percentage
of APC Net Pension
Contributed Obligation
100
100
100
On July 10, 2001, the City adopted a resolution whereby, effective July 1, 2002, retired
City employees will be entitled to receive amounts from the City necessary to pay the
cost of their enrollment, including the enrollment of spouses and eligible family
members, in a health benefit plan, up to a maximum of the rate that CaIPERS charges to
family enrollments. This healthcare premium subsidy will be available to any City
employee who reaches retirement age and retires from the City and who does not then
work for another government employer. The City has not addressed how it will fund this
program as of June 30, 2007. Currently, expenditures are recorded as incurred. There
were no expenditures incurred during the year ended June 30, 2007.
44
CITY OF ROSEMEAD, CALIFORNIA
' Notes to the Basic Financial Statements
(Continued)
' (10) Commitments and Contingencies
The City is a member of the Los Angeles County Liability Trust Fund (the Trust Fund),
' which was set up to pay for litigation involving the Los Angeles County Sheriffs'
Department within any of the 40 cities that are served by the Los Angeles County
Sheriffs' Department. The Trust Fund was and is being funded by the 40 cities based
' upon each city's allocated surcharge, calculated as a percentage of each city's
contribution to the total contracted amount with the County paid to Los Angeles County
for the use of its deputies. Based upon the agreement signed by all of the 40 cities at the
time the Trust Fund originated, the cities will be jointly liable for any and all claims filed
against the Los Angeles County Sheriffs' Department, regardless of the location within
the 40 cities.
In 1998 the County of Los Angeles lost a litigation mailer that resulted in a $25,000,000
judgment against the Los Angeles County Sheriffs' Department, which Los Angeles
County has since paid. The City believes its share of this liability is approximately 3%, or
' $600,000, which will accrue interest at 4% and be paid by the Trust Fund to Los Angeles
County (from amounts on deposit with the Trust Fund) over the.; next 10 years. No
additional liability will be incurred by the City. However, if the City decided to terminate
its association with the Trust Fund, it would become immediately liable for its share of
the remaining liability.
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(11) Fund Deficits
The following funds had deficit balances as of June 30, 2007:
Deficit Fund
Fund Name Balance
Community Development Block Grant $ 925,878
Federal Highway Grant 1,830,759
Local Transportation 204
Community Development Block Grant
The deficit fund balance was a timing difference caused by a delay in reimbursements.
There was a large deferred revenue balance of $1,085,887 at June 30, 2007. These
revenues were earned, but not available to be recorded until the year ending June 30,
2008.
45
CITY OF ROSEMEAD, CALIFORNIA
Notes to the Basic Financial Statements
(Continued)
(11) Fund Deficits, (Continued)
Federal Highway Grant
Expenditures were charged to the project in fiscal year ended June 30, 2007 and
submitted for reimbursement. The reimbursements were not available to be recorded
until the year ending June 30, 2008. The deficit fund balance was caused by a delay in
receiving the reimbursements.
(12) Expenditures in Excess of Appropriations
Expenditures exceeded appropriations in the following funds:
Fund Budget Actual Variance
,
Street Lighting $ 337,000 369,502 (32,502)
CDC Debt Service 1,293,320 3,609,019 (2,315,699)
'
(13) Prior Period Adjustment
The June 30, 2006 fund balances in the fund financial statements have been restated as
follows:
Low-Moderate
Income Housing Capital
Set-Aside Fund Proiects Fund
Fund balance at June 30, 2006,
as previously reported $ 870,799 11,916,129
To reflect prior year's advance from
the Capital Projects Fund to the Low-
Moderate Income Housing Set-Aside (773,692) 773,692
To reflect the advance to the Capital
Projects Fund for the deferral of the
20% set-aside tax increment 4,947,087 (4,947,087)
Fund balance at June 30, 2006,
as restated $5.044.194 77 742 33
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47
CITY OF ROSEMEAD
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
Variance-
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:
Taxes:
Property taxes
$ 4,830,000
4,830,000
4,920,386
90,386
Business license tax
45,000
45,000
40,670
(4,330)
Sales and use tax
2,865,000
2,865,000
2,501,106
(363,894)
Transient occupancy tax
1,000,000
1,000,000
1,311,697
311,697
Franchise tax
782,100
782,100
713,821
(68,279)
Real estate transfer tax
163,000
163,000
130,912
(32,088)
Total taxes
9,685,100
9,685,100
9,618,592
(66,508)
Intergovernmental
2,260,140
2,260,140
3,636,438
1,376,298
Licenses and permits
1,695,800
1,695,800
1,683,204
(12,596)
Charges for services
334,930
334,930
414,375
79,445
Fines and penalties
491,000
491,000
206,971
(284,029)
Special assessments
3,200
3,200
45,070
41,870
Investment income
1,000,000
1,000,000
848,132
(151,868)
Other
170,010
170,010
474,576
304,566
Total revenues
15,640,180
15,640,180
16,927,358
1,287,178
Expenditures:
Current:
General government
3,038,420
3,038,420
2,983,274
55,146
Public safety
6,622,020
6,622,020
6,300,405
321,615
Public works
595,460
595,460
564,970
30,490
Community services
343,600
343,600
384,207
(40,607)
Community development
3,166,970
3,166,970
2,603,196
563,774
Parks and recreation
5,106,830
5,106,830
4,249,462
857,368
Total expenditures
18,873,300
18,873,300
17,085,514
1,787,786
Excess (deficiency) of revenues
over (under) expenditures
(3,233,120)
(3,233,120)
(158,156)
3,074,964
Other financing sources (uses):
Transfers in
1,368,380
1,368,380
351,600
(1,016,780)
Transfers out
(71,910)
(71,910)
(68,005)
3,905
Total other financing
sources (uses)
1,296,470
1,296,470
283,595
(1,012,875)
Change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(1,936,650) (1,936,650) 125,439 2,062,089
22,485,106 22,485,106 22,485,106 -
$ 20,548,456 20,548,456 22,610,545 2,062,089
48
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CITY OF ROSEMEAD
Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
Revenues:
Intergovernmental
Total revenues
Expenditures:
Current:
Public works
Community services
Total expenditures
Net change in fund balance
Fund balances at beginning of year
Fund balances (deficit) at end of year
Variance-
Budgeted Amounts
Positive
Original Final
Actual (Negative)
$ 2,807,990 2,807,990
1,186,204 (1,621,786)
2,807,990 2,807,990
1,186,204 (1,621,786)
1,149,219 1,149,219 1,076,865
_ 72,354
1,658,771 1,658,771 1,035,217
623,554
2,807,990 2,807,990 2,112,082
695,908
- - (925,878)
(925,878)
$ 925,878
925,878
49
CITY OF ROSEMEAD
Low-Moderate Income Housing Set-Aside
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
Revenues:
Investment income
Total revenues
Other financing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
Change in fund balances
Fund balances at beginning
of year, as restated
Fund balances at end of year
Variance-
Original
Final
Positive
Budget
Budget
Actual
(Negative)
$ 26,000
26,000
45,385
19,385
26,000
26,000
45,385
19,385
-
-
1,019,082
1,019,082
(250,000)
(250,000)
50,000
200,000
(250,000)
(250,000)
969,082
1,219,082
(224,000)
(224,000)
1,014,467
1,238,467
5,044,194
5,044,194
5,044,194
-
$ 4,820,194
4,820,194
6,058,661
1,238,467
50
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1
CITY OF ROSEMEAD
Federal Highway Grant
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30. 2007
Variance-
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:
Intergovernmental
7,583,940
7,583,940
1,822,526
(5,761,414)
Total revenues
7,583,940
7,583,940
1,822,526
(5,761,414)
Expenditures:
Current:
Public works
7,583,840
7,583,840
3,703,935
3,879,905
Total expenditures
7,583,840
7,583,840
3,703,935
3,879,905
Net change in fund balance
100
100
(1,881,409)
(1,881,509)
Fund balances at beginning of year
50,650
50,650
50,650
Fund balances (deficit) at end of year
$ 50,750
50,750
(1,830,759)
(1,881,509)
51
CITY OF ROSEMEAD, CALIFORNIA
Note to the Required Supplementary Information
Fiscal Year Ended June 30. 2007
(1) Budgetary Information
Annual budgets are adopted on a basis consistent with accounting principles generally
accepted in the United States of America for all governmental funds except the Capital
Projects fund, which adopts project-length budgets. All annual appropriations lapse at
fiscal year end.
On or before the last day in March of each year, all agencies of the government submit
requests for appropriations to the City Manager so that a budget may be prepared.
Before the first Thursday of June, the proposed budget is presented to the City Council
for review. The Council holds public hearings and a final budget must be prepared and
adopted no later than June 30.
The appropriated budget is prepared by fund, function and department. The City's
Department Heads, with approval of the Finance Director and City Manager, may make
transfers of appropriations within a department and between departments within a fund.
Transfers of appropriations between funds must be approved by the City Council. The
legal level of budgetary control (i.e., the level at which expenditures may not legally
exceed appropriations) is the fund level. The council made several supplemental
budgetary appropriations throughout the year. The supplemental budgetary
appropriations made in the various governmental funds are detailed in the required
supplementary information.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g.,
purchase orders, contracts) outstanding at year end are reported as reservations of fund
balances and do not constitute expenditures or liabilities because the commitments will
be reappropriated and honored during the subsequent year.
52
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54
' NONMAJOR GOVERNMENTAL FUNDS
' Special Revenue Funds
' Special revenue funds are used to account for specific revenues that are legally restricted to
expenditures for particular purposes.
Traffic Safety Fund - This fund is used to account for the receipt of vehicle code fines which are
' expended for construction, maintenance of traffic control devices, streets, crossing guard
salaries, and equipment and supplies for traffic enforcement and accident prevention.
' Proposition C Fund - This fund is to be used by the cities for public transit to increase safety
and improve road conditions by repairing and maintaining streets heavily used by public transit.
' Proposition A Fund - This fund is used to finance public transportation projects. Effective July
1, 1982, this fund accounts for the City's share of additional sales tax collected in the County of
Los Angeles as a result of Proposition A.
' State Gas Tax Fund - This fund is used to account for monies that are collected by the State
under the title of Motor Vehicle Fuel License Tax and represent an additional + or - $.10 per
gallon of gas sold. Gas Tax money is distributed to the City based upon population and vehicle
' registration. Funds may be used for: Select Streets: Right-of-way acquisition, construction or
maintenance. Minor Streets: Right-of-way acquisition or construction is allowed as the City
Council has determined that 90% or more of the City's street system has already been
' constructed.
Air Quality Management District Fund - This fund accounts for the receipt of monies from the
' Air Quality Maintenance District. These funds shall be used to implement programs to reduce
air pollution from mobile sources pursuant to the California Clean Air Act.
' Local Transportation Fund - This fund is used to account for monies made available by the
State for mass transit, bike paths, and pedestrian walkways. City policy has been to use this
money for construction of sidewalks, pedestrian access to schools, parks or commercial areas.
' Street Lighting Fund - This fund is used to account for monies collected by ad valorem property
tax based on $.2495 per $1000 of assessed property value to provide for energy cost and
' maintenance of the Rosemead Lighting District, whose boundaries, with the exception of the
Southern California Edison company property, coincide with the city's boundaries. Proposition
13 has limited the ad valorem tax that can be collected.
' Narcotics Seizure Fund - This fund is used to account for funds received from the County of
Los Angeles for monies forfeited, and the proceeds from the sale of assets seized from illegal
narcotic activities within the City of Rosemead. The forfeited funds must be used by the law
' enforcement and prosecutorial agencies exclusively to support law enforcement and
prosecutorial efforts.
' Rosemead Housing Development Corporation - This fund is used to account for the
construction, financing and operations of low and moderate income housing. The Corporation is
a blended component until of the City of Rosemead.
1
' 55
CITY OF ROSEMEAD
Non-Major Special Revenue Funds
Combining Balance Sheet
June 30, 2007
Assets
Cash and investments
Receivables:
Accounts
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued salaries and benefits
Deposits payable
Due to other funds
Deferred revenue
Total liabilities
Fund balances:
Unreserved:
Designated
Undesignated
Total fund balances (deficit)
Total liabilities and
fund balances
Traffic
Proposition
Proposition
State Gas
Safety
C
A
Tax
$ 210,060
4,691,059
415,593
714,161
20,086
73,614
89,949
7,305
$ 230,146
4,764,673
505,542
721,466
$ 338,192 121,799 90,565
- 4,025 -
- 8,000
338,192 125,824 98,565
230,146 4,426,481 379,718 622,901
230,146 4,426,481 379,718 622,901
$ 230,146 4,764,673 505,542 721,466
56
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Rosemead
Air Quality
Housing
Management
Local Street
Narcotics
Development
District
Transportation Lighting
Seizure
Corporation
Total
115,141
1,669,826
15,865
381,948
8,213,653
17,840
31,415
-
14,180
254,389
132,981
1,701,241
15,865
396,128
8,468,042
31,328 32,195 15,775 2,181 632,035
- - 90 - 4,115
- - 35,792 35,792
204 - 204
- - - - 8,000
31,328 204 32,195 15,865 37,973 680,146
101,653 - 1,669,046 358,155 7,788,100
- (204) (204)
101,653 (204) 1,669,046 358,155 7,787,896
132,981 1,701,241 15,865 396,128 8,468,042
57
CITY OF ROSEMEAD
Non-Major Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Fiscal Year ended June 30, 2007
Revenues:
Intergovernmental
Fines, forfeitures and penalties
Special assessments
Investment income
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Community development
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
Change in fund balances
Fund balance (deficit) at beginning of year
Fund balance (deficit) at end of year
Traffic Proposition Proposition State Gas
Safety C A Tax
$ - 760,492 915,432 1,025,374
230,146 - -
225,655 16,114 28,210
3,400 - 145
230,146 989,547 931,546 1,053,729
1,025,315 766,401 831,518
1,025,315 766,401 831,518
230,146 (35,768) 165,145 222,211
230,146 (35,768)
165,145
222,211
- 4,462,249
214,573
400,690
$ 230,146 4,426,481
379,718
622,901
58
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Rosemead
Air Quality
Housing
Management
Local
Street
Narcotics
Development
District
Transportation
Lighting
Seizure
Corporation
Total
69,392
3,840
2,774,530
-
-
-
230,146
-
744,019
-
744,019
7,242
-
415,566
692,787
-
-
-
3,545
76,634
3,840
744,019
415,566
4,445,027
-
-
-
-
316,849
316,849
-
-
369,502
68,005
-
437,507
160,107
3,985
-
-
2,787,326
6,857
-
6,857
166,964
3,985
369,502
68,005
316,849
3,548,539
(90,330)
(145)
374,517
68,005
98,717
896,488
-
-
-
68,005
401,600
469,605
(351,600)
(351,600)
-
-
68,005
50,000
118,005
(90,330)
(145)
374,517
-
148,717
1,014,493
191,983
(59)
1,294,529
209,438
6,773,403
101,653
_(?0J4
1,669,046
358,155
7,787,896
59
CITY OF ROSEMEAD
Traffic Safety
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
Revenues:
Fines, forfeitures and penalties
Total revenues
Expenditures:
Current:
Public safety
Total expenditures
Change in fund balances
Fund balance at beginning of year
Fund balance at end of year
Variance-
Final
Positive
Budget
Actual
(Negative)
$ 220,000
230,146
10,146
220,000
230,146
10,146
220,000
220,000
220,000
-
220,000
-
230,146
230,146
$
230,146
230,146
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1 CITY OF ROSEMEAD
Proposition C
1 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
1
Variance-
1 Budgeted Amounts Positive
Original . Final Actual (Negative)
1
Revenues:
Intergovernmental
$ 700,000.
700,000
760,492
60,492
Investment income
109,240
109,240
225,655
116,415
1
Other
-
-
3,400
3,400
Total revenues
809,240
809,240
989,547
180,307
1
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dit
xpen
ures:
Current:
1
Public works
2,409,630
2,176,215
1,025,315
1,150,900
Total expenditures
2,409,630
2,176,215
1,025,315
1,150,900
1
Net change in fund balance
(1,600,390)
(1,366,975)
(35,768)
1,331,207
Fund balance at beginning of year
4,462,249
4,462,249
4,462,249
-
1
74
426
4
1
Fund balance at end of year
$ 2,861,859
3,095,2
4;
,
81
;331,207
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CITY OF ROSEMEAD
Proposition A
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
Variance-
Final
Positive
Budget
Actual
(Negative)
Revenues:
Intergovernmental
$ 820,000
915,432
95,432
Investment income
16,114
16,114
Total revenues
820,000
931,546
111,546
Expenditures:
Current:
Public works
904,200
766,401
137,799
Total expenditures
904,200
766,401
137,799
Change in fund balances
(84,200)
165,145
249,345
Fund balance at beginning of year
214,573
214,573
-
Fund balance at end of year
$ 130,373
379,718
249,345
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CITY OF ROSEMEAD
State Gas Tax
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
Variance-
Final
Positive
Budget
Actual
(Negative)
Revenues:
Intergovernmental
$ 1,085,500
1,025,374
(60,126)
Investment income
940
28,210
27,270
Other
145
145
Total revenues
1,086,440
1,053,729
(32,711)
Expenditures:
Current:
Public works
1,486,300
831,518
654,782
Total expenditures
1,486,300
831,518
654,782
Change in fund balance
(399,860)
222,211
622,071
Fund balance at beginning of year
400,690
400,690
-
Fund balance at end of year
$ 830
622,901
622,071
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CITY OF ROSEMEAD
Air Quality Management District
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
Variance-
Final
Positive
Budget
Actual
(Negative)
Revenues:
Intergovernmental
$ 65,000
69,392
4,392
Investment income
30
7,242
7,212
Total revenues
65,030
76,634
11,604
Expenditures:
Current:
Public works
234,000
160,107
73,893
Community development
7,000
6,857
143
Total expenditures
241,000
166,964
74,036
Change in fund balances
(175,970)
(90,330)
85,640
Fund balance at beginning of year
191,983
191,983
-
Fund balance at end of year
$ 16,013
101,653
85,640
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Local Tran
ti
t
spor
a
on
Schedule of Revenues, Expenditures and Changes in Fund Balances - Bud
Fi
l Y
get and Actual
sca
ear ended June 30, 2007
'
Variance-
Final
Positive
Budget
Actual
(Negative)
Revenues:
'
Intergovernmental
$ 74,000
3,840
(70,160)
Investment income
120
-
(120)
'
Total revenues
74,120
3,840
(70,280)
Expenditures:
'
Current:
Public works
74,000
3,985
70,015
'
Total expenditures
C
74,000
3,985
70,015
hange in fund balances
120
(145)
(265)
'
Fund balance (deficit) at beginning of year (59)
(59)
-
Fund balance (deficit) at end of year
$ 61
(265)
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65
CITY OF ROSEMEAD
Street Lighting
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
Variance-
Final
Positive
Budget
Actual
(Negative)
Revenues:
Special assessments
$ 580,000
744,019
164,019
Total revenues
580,000
744,019
164,019
Expenditures:
Current:
Public safety
337,000
369,502
(32,502)
Total expenditures
337,000
369,502
(32,502)
Change in fund balances
243,000
374,517
131,517
Fund balances at beginning of year
1,294,529
1,294,529
-
Fund balances at end of year
$ 1,537,529
1,669,046
131,517
66
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CITY OF ROSEMEAD
Narcotics Forfeiture and Seizure
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
Revenues:
Intergovernmental
Total revenues
Expenditures:
Current:
Public safety
Total expenditures
Excess (deficiency) of
revenues over
(under) expenditures
Other financing sources (uses):
Transfers in
Total other financing
sources (uses)
Change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance-
Final Positive
Budget Actual (Negative)
71,910 68,005 3,905
71,910 68,005 3,905
(71,910) 68,005 3,905
71,910 68,005 3,905
71,910 68,005 (3,905)
67
CITY OF ROSEMEAD
Rosemead Housing Development Corporation
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
Variance-
Final
Positive
Budget
Actual (Negative)
Revenues:
Investment income
$ 406,500
415,566 9,066
Other
6,100
- (6,100)
Total revenues
412,600
415,566 2,966
Expenditures:
Current:
General government 795,900 316,849 479,051
Total expenditures 795,900 316,849 479,051
Excess (deficiency) of
revenues over
(under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
Change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(383,300)
98,717.
482,017
250,000
401,600
151,600
-
(351,600)
351,600
250,000
50,000
20( 0,000)
(133,300)
148,717
282,017
209,438
209,438
-
$ 76,138
358,155
282,017
68
' CITY OF ROSEMEAD
Redevelopment Agency Debt Service Fund
' Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
I
Expenditures:
'
Debt service:
Principal
'
Interest and fiscal charges
Payment to bond escrow agent
'
Total expenditures
Excess (deficiency) of
'
revenues over (under)
expenditures
Other financing sources (uses):
'
Transfers in
Payment to bond escrow agent
Total other financing
sources (uses)
' Net change in fund balance
' Fund balance at beginning -of year
Fund balance at end of year
1
I
Variance-
Final Positive
Budget Actual (Negative)
$ - 780,000 (780,000)
1,293,320 1,505,781 (212,461)
- 1,323,238 (1,323,238)
1,293,320 3,609,019 (2,315,699)
_(1,293,320) (3,609,019) (2,315,699)
1,293,320 24,342,791 23,049,471
- (22,075,305) (22,075,305)
1,293,320 2,267,486 974,166
- (1,341,533) (1,341,533)
1,342, 085 1,342,085
$ 1,342,085 552 (1,3
1 69
CITY OF ROSEMEAD
Redevelopment Agency Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fiscal Year ended June 30, 2007
Revenues:
Taxes
Investment income
Other
Total revenues
Expenditures:
Current:
General government
Public works
Community development
Debt service:
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Proceeds of bonds
Total other financing sources (uses)
Net change in fund balance
Fund balance at beginning
of year, as restated
Fund balance at end of year
Variance-
Final Positive
Budget Actual (Negative)
$ 3,700,000 4,029,714 329,714
171,200 441,824 270,624
352 352
3,871,200 4,471,890 600,690
2,657,720
1,480, 714
1,177,006
5,327,750
765,672
4,562,078
55,500
80,367
(24,867)
- 1,006,944 (1,006,944)
8,040,970 3,333,697 4,707,273
(4,169,770) 1,138,193 5,307,963
2,370,000
(5,031,700)
(25,713,473)
24,230,000
(2,661,700)
(1,483,473)
(6,831,470)
(345,280)
7,742,734
$ 911,264
7,742,734
7,397,454
70
(2,370,000)
(20, 681, 773)
24,230,000
1,178,227
6,486,190
6,486,190
1
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CITY OF ROSEMEAD
Agency Fund
Combining Statement of Changes in Assets and Liabilities
Fiscal Year ended June 30, 2007
Assets
Cash and investments
Total assets
Liabilities
Deposits payable
Total liabilities
Balance at Balance at
June 30, 2006 Additions Deletions June 30, 2007
$ 302,957 82,598 385,555
$ 302,957 82,598 385,555
$
302,957
82,598
385,555
$
302,957
82,598
385,555
71
STATISTICAL SECTION
This part of the City of Rosemead's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the government's overall
financial heath.
Contents
Paae
Financial Trends 73
These schedules contain trend information to help the reader understand how
the government's financial performance and well-being have changed over time.
Revenue Capacity 77
These schedules contain trend information to help the reader asses the
government's most significant local revenue source, the property tax.
Debt Capacity 81
These schedules present information to help the reader assess the affordability
of the government's current levels of outstanding debt and the government's
ability to issue additional debt in the future.
Demographic and Economic Information 87
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities
take place.
Operating Information 89
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates to the
services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
Comprehensive Annual Financial Reports for the relevant year:
72
1
CITY OF ROSEMEAD
Net Assets by Component
Last Four Fiscal Years
(accrual basis of accounting)
Fiscal Year
2004 2005 2006 2007
Governmental activities:
Invested in capital assets,
net of related debt
$ 10,439,445
12,130,249
13,345,433
10,541,606
Restricted.
6,526,788
6,035,250
6,901,454
8,181,231
Unrestricted
26,498,620
31,114,414
30,299,115
35,293,732
Total governmental activities net assets
$ 43,464,853
49,279,913
50,546,002
54,016,569
The City of Rosemead implemented GASB 34 for the fiscal year ended June 30,
2004. Information prior to the implementation of GASB 34 is not available.
73
CITY OF ROSEMEAD '
Changes in Net Assets
Last Four Fiscal Years
(accrual basis of accounting)
Fiscal Year
2004 2005 2006 2007
Expenses:
Governmental activities:
General government S
4,803,476
4,800,168
Public safety
5,797,080
6,058,824
Public works
2,058,252
3,252,252
Public health
65,583
60,828
Community services
3,121,996
2,862,328
Community development
-
-
Parks and recreation
3,2012236
3,456,308
Interest expense
1,854,185
1,830,836
Total governmental activities expenses
20,901.808
22321,544
Program revenues:
Governmental activities:
Charges for services:
General government
Public safety
Public works
Public health
Community services
Community development
Parks and recreation
Total governmental activities
. program revenues
5,629,316
6,065.066
3,403,699
51,286
3,223,843
3,959.590
1.832,219
24,165,019
4,980,519
6,618,779
6,120,563
602,114
2,467,842
4,178,000
2,698,372
27,666,189
7,026,282
6,299,415
3,288,225
316,849
726,345
984,965
900,359
1,598,159
3,091,146
3,760,495
4,144,733
7,600,778
1,691,586
1,211,615
814,754
1,403,059
-
-
3,206,303
287.137
266,398
337,815
-
12,822,496
12,522,888
9,485,886
14,125,148
Net revenues (expenses):
Governmental activities
Total net revenues (expenses)
(8.079,312)
(9,798,656)
(14,679,133)
(13,541,041)
General revenues and other changes in
net assets:
Governmental activities:
Taxes:
'
Property taxes
3,941,383
4,077,332
3,915,980
9,121,682
Sales and use taxes
2,865,887
3,518,657
3,525,557
2,501,106
Transient occupancy taxes
1,081,174
1,102,756
1,207.298
1,311,697
'
Othertaxes
149,737
765,215
1,076,806
713,821
Intergovernmental/ in-lieu VLF
-
3,165,148
2,966,002
-
Investment income -
187,278
1,260,095-
1,930,059
2,028,128.
,
Motor vehicle in-lieu, unrestricted
-
1,716,656
1,290,667
856,701
Other general revenues
- -
- 7,857
31853
478,473
Total governmental activities
8,225,459
151613,716
15,945,222
17,011,608
t
Changes in net assets
Governmental activities
Total primary government
S 146.147
5,815,060
1,266,089
3,470.567
The City of Rosemead implemented GASB 34 for the fiscal year ended June
30, 2004.
,
Information prior to the implementation ofGASB 34 is not available.
74
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CITY OF ROSEMEAD
Fund Balances of Governmental Funds
Last Four Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2004
2005 2006
2007
General fund:
Reserved
$ 353,616
1,719,044 256,765
150,000
Unreserved
20,053,506
19,896,581 22,228,341
22,460,545
Total general fund
$ 20,407,122
21,615,625 22,485,106
22,610,545
All other governmental funds
Reserved $ 3,195,415 - 7,693,216 4,947,087
Unreserved, reported in:
Special revenue funds 5,653,208 7,336,247 6,821,660 6,142,833
Debt service funds 32,835 2,354,835 - 552
Capital projects funds 6,264,457 8,433,842 6,435,798 7,397,454
Total all other governmental funds $ 15,145,915 18,124,924 20,950,674 18,487,926
The City of Rosemead has elected to show only four years of data for this schedule.
75
1
CITY OF ROSEMEAD
Ch
i
l
anges
n Fund Ba
ances of Governmental Funds
Last Four Fiscal Years
(modified accrual basis of accounting)
'
Fiscal Year
'
2004
2005
2006
2007
Revenues:
Taxes
$ 9,041,026
9,189,326
9,527,384
13,648,306
1
Intergovernmental
8,826,909
14,379,314
10,785,591
9,419,698
Licenses and permits
1,508,009
1,595,115
1,528,864
1,683,204
Charges for services
581,848
550,478
660,890
414,375
'
Fines, forfeitures and penalties
589,890
857,135
753,224
437,117
Special assessments
-
-
-
789,089
Investment income
1,372,591
1,260,286
1,947,566
2,028,128
Other
37
30,316
29,332
478,473
'
Total revenues
21,920,310
27,861,970
25,232,851
28,898,390
Expenditures
,
Current:
General government
22965,572
3,023,192
3,790,631
4,780,837
Public safety
5,797,080
6,087,918
6,536,043
6,737,912
,
Public works
3,144,358
5,208,142
6,064,980
8,898,768
Community services
Community development
65,583
3,259,505
60,828
3,424,954
51,286
3,216,935
1,419,424
2,690,420
'
Parks and recreation
3,201,236
3,383,358
3,881,469
4,249,462
Capital outlay
26,639
184,301
149,641
-
Debt service:
-
'
Principal
445,000
465,000
490,000
780,000
Interest and fiscal charges
1,859,747
1,836,765
1,559,114
2,512,725
Payment to bond escrow agent
-
550,323
1,323,238
Total expenditures
20,764,720
23,674,458
26,290,422
33,392,786
Excess (deficiency) of
revenues over (under)
expenditures
1,155,590
4,187,512
(1,057,571)
(4,494,396)
Other financing sources (uses):
'
Transfers in
3,905,993
4,941,103
13,300,319
26,183,078
Transfers out
(3,905,993)
(4,941,103)
(13,3 00,3 19)
(26,183,078)
Proceeds of bonds
14,605;000
24,230,000
,
Premium on debt issued
316,830
Payment to bond escrow agent,
(9,569,028)
(22,075,305)
Total other financing
t
sources (uses)
4,752,802
2,154,695
Net change in fund balances
$ 1,155,590
4,187,512
3,695,231
(2,339,701)
,
Debt service as a percentage of
noncapital expenditures
11.1%
9.8%
9.9%
13.8%
The City of Rosemead has elected to show only./bur years ofdata.for this schedule.
'
76
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CITY OF ROSEMEAD
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
City
Fiscal Year
Taxable
Ended
SBE
Assessed
June 30
Secured
Unsecured
Non-Unitary
Value
1998
$ 1,676,290,709
$ 38,648,676
$ 1,077,155
$1,716,016,540
1999
1,689,227,961
40,360,462
1,833,455
1,731,421,878
2000
1,733,311,605
44,424,487
1,415,275
1,779,151,367
2001
1,801,399,282
48,058,831
664,802
1,850,122,915
2002
1,894,448,049
49,217,140
1,632,754
1,945,297,943
2003
2,017,936,508
50,453,472
2,601,128
2,070,991,108
2004
2,168,666,818
52,904,496
19,367,174
2,240,938,488
2005
2,345,083,686
57,368,008
20,426,612
2,422,878,306
2006
2,561,631,859
64,776,971
18,555,208
2,644,964,038
2007
2,826,876,615
55,851,646
19,173,832
2,901,902,093
Beginning with the fiscal year ended June 30, 2002, exemptions are netted directly against the
individual property categories.
NOTE:
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to
a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year,
the assessed value of property may be increased by an "inflation factor" (limited to a maximum
increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a
new owner. At that point, the new assessed value is reassessed at the purchase price of the
property sold. The assessed valuation data shown above represents the only data currently available
with respect to the actual market value of taxable property and is subject to the limitations
described above.
' Source: HDL Coren & Cone and Los Angeles County Assessor's Office
1
1 77
CITY OF ROSEMEAD
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Current Fiscal Year
I Year Detail of Rates producing Revenue for City and Associated Rede
City General Fund Direct Rates RDA Incremental Rate
City Share of I % Levy
Roll Year per Prop 13 Debt Rates Total City Rates
2006/07 0.06682% 0.00000% 0.06682%
Prop 13 1 % + applicable
RDA TRA voter approved debt
03985 1.00541%
0.23351%
I
Rate '
I Year Detail of all Taxpayer Rates for Largest General Fund Tax Rate Area 03917 (direct rate agencies in bold)
Agency:
City Rosemead Tax District 1
0.06682
Alhambra City High School Dist.
0.09549
Alhambra High-Elem. School Fund
0.04267
Children's Institutional Tuition Fund
0.00273
City Rosemead Lighting District
0.02705
Co. Sch. Serv. Fund Alhambra High
0.00034
Co. Sch. Serv. Fund -Garvey Union
0.00730
Consolidated Fire Protection Dist of LA Co.
0.17056
County Sanitation District No. 15 Operating
0.01273
County School Services
0.00138
Dev. Center Handicapped Minors Garvey
0.00080
Educational Augmentation Fund Impound
0.13752
Educational Revenue Augmentation Fund
0.06904
Garvey School District
0.06120
LA County Library
0.02257
LA City Community College Dist.
0.02936
LA Community College Children's Center I'd
0.00030 -
LA County Accumulative Capital Outlay
0.00011
LA County Fire - Ffw
0.00697
LA County Flood Control Improvement Dist.
0.00166
LA Count` Flood Control Maintenance
0.00940
Los Angeles County General
0.23344
Upper San Gabriel Valley Municipal Water
0.00055
Total Prop. 13 Rate
1.00000
Detention Facilities 1987 Debt S
0.00066
Garvey Sch Dist Ds 2000 Set A
0.01913
Garvey Sch Dist Ds 2000 Set B
0.00470
Garvey Sch Dist 2004 Series 2005
0.02692
L.A. Ccd Ds 2001 Ser-A
0.00115
L.A. Ccd Ds 2001 Tax'Ble Set 2004 A
0.00079
L.A. Ceti Ds 2003 Ser-B
0.00128
L.A. Ccd Ds 2003 Tax'Ble Ser 2004B
0.00079
L.A. Ccd Ds 2001. 2006 Series B
0.00437
L.A. Ccd Ds 2003, 2006 Series C
0.00859
La Co Fl. Con. Storm Dr. D.S. #4 -
0.00005 -
Lace Ds Ref 2001 Series 2005 A
0.00449
Orig Area Up S G Vy Mwd 1116001.
0.00470 -
Total Voter Approved Rate
0.07762 -
Total Tax Rate 1.07762
Notes: General fund tax rates are representative and based upon the direct and overlapping rates for the largest General Fund tax rate area
(TRA) by net taxable value.
Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section
information. The percentages presented in the columns above do not sum across rows.
RDA rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per
California State statute. RDA direct and overlapping rates are applied. only to the incremental property values.
Source: HDL Coren & Cone and Los Angeles County Assessor's Office
78
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CITY OF ROSEMEAD
Principal Property Tax Payers
Current Year and Nine Years Ago
2006/07
Taxable
Assessed
Taxpayer
Value
Rank
Rosemead Hwang, LLC
$ 30,361,500
1
Rosemead Place, LLC
42,508,398
2
May Department Stores Company
15,430,000
3
California Federal Savings
12,643,700
4
1683 Walnut Grove, LLC
8,543,336
5
Taiking, LLC
5,935,013
6
Rosemead Shopping Center, LLC
8,161,000
7
Diamond Flower Investment Group
3,506,527
8
Raymond K. Chiang Trust
3,468,000
9
Irish Construction
3,266,177
10
Chicago Title Insurance Company
Builder Square, LLC
Vikon Development, Inc.
Shiung Kuo Yuan
Ruey M. & Shu N. Chen, Et. Al.
Ming T. & Grace T. Chen
Frederick Capriccio Company Trust,
$ 133,823,651
1997/98
Percent of
Percent of
Total City
Total City
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Value
Value
Rank
Value
1.05%
1.46%
0.53%
14,019,496
2
0.82%
0.44%
21,281,361
1
1.24%
0.29%
0.20%
0.28%
0.12%
0.12%
0.11%
3,551,344
6
0.21%
10,500,000
3
0.61%
6,844,315
4
0.40%
3,800,000
5
0.22%
3,268,993
7
0.19%
28,412,087
8
1.66%
2,542,950
9
0.15%
2,208,597
10
0.13%
4.61% 96,429,143 5.62%
The amounts shown above include assessed value data for both the City and the
Redevelopment Agency.
Source: Hdl Coren & Cone, Los Angeles County Assessor 2006/07 Combined Tax Rolls.
79
CITY OF ROSEMEAD
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Taxes Levied
Year Ended
for the
June 30
Fiscal Year
1998
$ 965,643
1999
984,721
2000
1,013,510
2001
1,059,067
2002
1,111,483
.2003
1,181,683
2004
1,262,684
2005
1,364,266
2006
2,054,921
2007
2,269,752
Collected within the
1 414Li11L UUVJIi%j
Amount
of Levy Year
$1,054,459
109.20%
940,904
95.55%
1,106,595
109.18%
1,261,833
119.15%
1,168,453
105.13%
1,161,629
98.30%
1,445,722
114.50%
1,203,406
88.21%
2,130,559
103.68%
2,147,626
94.62%
* Information not available.
t
Percent
_ Amount
of Levy
$1,054,459
109.20%
940,904
95.55%
- 1,106,595
109.18%
1,261,833
119.15%
1,168,453
105.13%
1,161,629
98.30%
1,445,722
114.50%
1,203,406
88.21%
2,130,559
103.68%
2,147,626
94.62%
Source: HDL Coren & Cone and Los Angeles County Auditor Controller's Office
80
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CITY OF ROSEMEAD
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year
Tax
Allocation
Bonds
Percentage
of Personal
Income
Debt
Per
Capita'
1997/98
35,610,000
2.59%
646
1998/99
35,300,000
2.46%
633
1999/00
34,970,000
2.31%
617
2000/01
34,625,000
2.14%
604
2001/02
34,255,000
2.10%
619
2002/03
33,830,000
2.00%
612
2003/04
33,385,000
1.93%
595
2004/05
32,920,000
1.65%
580
2005/06
37,100,000
1.77%
649
2006/07
37,455,000
1.68%
655
Notes: Details regarding the City's outstanding debt can be found in the notes to the
financial statements.
i These ratios are calculated using personal income and population' for the prior calendar year.
81
CITY OF ROSEMEAD
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(In Thousands, except Per Capita)
Tax Percent of
Fiscal Year
Allocation
Bonds
Assessed
Value I
Per
Capita
1997/98
35,610
2.08%
646
1998/99
35,300
2.04%
633
1999/00
34,970
1.97%
617
2000/01
34,625
1.87%
604
2001/02
34,255
1.76%
619
2002/03
33,830
1.63%
612
2003/04
-33,385
1.49%
595
2004/05
32,920
1.36%
580
2005/06
37,100
1.40%
649
2006/07
37,455
1.29%
655
General bonded debt is debt payable with governmental fund resources and general
obligation bonds recorded in enterprise funds (of which, the City has none).
i Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
82
CITY OF ROSEMEAD
Direct and Overlapping Governmental Activities Debt
June 30, 2007
'
City Assessed Valuation $2,456,279,183
$2,456,279,183
Redevelopment Agency Incremental Valuation $445.622,910
445.622.910
'
Total Assessed Valuation
$2.901.902.093
Estimated
Shareof
Percentage
Outstanding
Overlapping
'
Applicable' '
Debt 6/30/07
Debt
Overlapping Deb[ Repaid with Property Taxes:
Los Angeles County Flood Control District 0.312%
$ 370,000
1,154
Metropolitan Water District 0.335%
165,681,509
555,033
Garvey School District DS 2000 Series A 50.525%
7,254,903
3,665.540
Garvey School District DS 2000 Series B 50.525%
6,444,519
3,256,093
Garvey School District 2004 Series 2005 50.525%
20,713.634
10.465,564
Rosemead School District DS 2000 Series A '70.187%
7,105,000
4,986,786
'
Rosemead School District DS 2000 Series B 70.187%
9,730,000
6,829,195
El Monte Union HSD DS 2002 Series A 14.185%
6,095,000
864,576
El Monte Union III DS 2002 Series B 14.185%
8,470,000
1,201,470
El Monte Union FISD DS 2006 Refunding Bond 14.185%
38,929,927
5,522,210
L.A. CCD DS 2001 Series A. 0.314%
40,260,000
126,416
L.A. CCD DS 2003 Series B 0.314%
27,774,898
87.213
L.A. CCD DS 2003 Series 2004 B 0.314%
103,900,000
326.246
L.A. CCD DS 2001 Series 2004 A 0.314%
82,000,000
257.480
'
LACC DS REF 2001 Series 2005 A 0.314%
433,540,000
1,361,316
LA CCD DS 2001 2006 Series B 0.314%
350,000,000
1,099,000
Pasadena Area CCD DS 2002 Series A 2.691%
5,4052000
145,449
Pasadena CCD DS 2006 Series B 2.691%
87,657,774
2.358.871
'
Montebello Unif DS 1998 Series 98 1.534%
17,044,698
261,466
Montebello Unif SD DS 98 Series 99 1.534%
15,222,854
233,519
Montebello USD DS 1998 Series 2001 1.534%
14,357,827
2207249
Montebello USD DS 1998 Series 2004 1.534%
15,485,273
237.544
'
Montebello Unified DS 1998 Series 2002 1.534%
15,426,849
236.648
.
Montebello Unif DS 2004 Set 2004 1.534%
29,230,000
448,388
San Gabriel USD DS 2002 Series A 0.930%
11,697,600
108,788
San Gabriel USD DS 2002 Series B 0.930%
6,728,892
62,579
'
San Gabriel USD DS 2005 Refunding Bonds 0.930%
17,435,000
162,146
Total overlapping debt repaid with property tares
1.543,961.157
45.080.937
'
Debt to Assessed Valutation Ratios:
Direct Debt
0.00%
'
Overlapping Debt
1.84%
- Total Debt
1.84%
'
Notes:
For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's
'
taxable assessed value that is within the city's boundaries and dividing it by each unit's total t
axable assessed value.
Overlapping governments are those that coincide, at least in part, with the
geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that
is home by the residents
and businesses of the City. This process recognizes that, when considering the City's ability
to issue and repay
'
long-term debt, the entire debt burden home by the residents and businesses should be taken
into account. However,
this does not imply that every taxpayer is a resident, and therefore responsi
ble for repaying th
e debt, of each
overlapping government.
'
Source: Hdl Coren & Cone, L.A. County Assessor and Auditor Combined 2006/07 Lien Date
Tax Rolls.
'
83
CITY OF ROSEMEAD
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
1997/98 1998/99 1999/00 2000/01 2001/02
Assessed valuation
$ 1,716,016,540
1,731,421,878
1,779,151,367
1,850,122,915
1,945,297,943
Conversion percentage
25%
25%
25%
25%
25%
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit
$ 429,004,135 432,855,470 444,787,842 462,530,729 486,324,486
15% 15% 15% 15% 15%
64,350,620 64,928,320 66,718,176 69,379,609 72,948,673
$ 64.350,620
64,928.320
66,718,176
69,379,609
72,948,673
0.0%
0.0%
0.0%
0.0%
0.0%
The Government Code of the State of California provides for a legal debt limit of
15% of gross assessed valuation. However, this provision was enacted when
assessed valuation was based upon 25% of market value. Effective with the 1981-82
fiscal year, each parcel is now assessed at 100% of market value (as of the most
recent change in ownership for that parcel). The computations shown above reflect
a conversion of assessed valuation data for each fiscal year from the current full
valuation perspective to the 25% level that was in effect at the time that the legal
debt margin was enacted by the State of California for local governments located
within the state.
Source: Rosemead Finance Department
Los Angeles County Tax Assessor's Office
84
1
1
1
1
Fiscal Year
2002/03 2003/04 2004/05 2005/06 2006/07
2,070,991,108 2,240,938,488 2,422,878,306 2,644,964,038 2,901,902,093
25% 25% 25% 25% 25%
517,747,777 560,234,622 605,719,577 661,241,010 725,475,523
15% 15% 15% 15% 15%
77,662,167 84,035,193 90,857,936 99,186,151 108,821,328
77,662,167 84,035,193 90,857,936 99,186,151 108,821,328
0.0% 0.0% 0.0% 0.0% 0.0%
85
CITY OF ROSEMEAD
Pledged-Revenue Coverage
Last Ten Fiscal Years
(In Thousands)
Tax Allocation Bonds
Fiscal Year
Ended
Tax
Debt Service
June 30
Increment
Principal
Interest
Coverage
1998
2,770,865
295,000
1,989,427
1.21
1999
2,870,290
310,000
1,971,450
1.26
2000
2,990,564
330,000
1,951,663
1.31
2001
2,945,877
345,000
1,932,853
1.29
2002
3,197,754
370,000
1,912,843
1.40
2003
3,105,416
425,000
1,891,273
1.34
2004
3,376,579
445,000
1,870,873
1.46
2005
3,494,330
465,000
1,836,765
1.52
2006
3,310,295
490,000
1,559,114
1.62
2007
4,029,714
780,000
1,505,781
1.76
Note: Details regarding the city's outstanding debt can be found in the notes to the financial
statements. Operating expenses do not include interest or depreciation expenses.
86
1
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1
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1
t
CITY OF ROSEMEAD
Demographic and Economic Statistics
Last Ten Calendar Years
Per
Personal Capita Unemployment
Fiscal Population Income Personal Rate
Year (1) (in thousands)( 2) Income (2) (3)
1997/98
55,760
1,434,091
25,719
6.50%
1998/99
56,664
1,517,065
26,773
5.60%
1999/00
57,328
1,621,007
28,276
5.40%
2000/01
55,351
1,634,072
29,522
5.90%
2001/02
55,289
1,692,452
30,611
6.10%
2002/03
56,065
1,727,026
30,804
6.80%
2003/04
56,710
1,991,372
35,115
6.00%
2004/05
57,189
2,101,467
36,746
4.50%
2005/06
57,144
2,229,245
39,011
4.60%
2006/07
57,427
N/A
N/A
4.90%
Sources: (1) California State Department of Finance
(2) U.S. Department of Commerce - Bureau of Economic Analysis
(3) State of California Employment Development Department (data shown
is for the County)
87
CITY OF ROSEMEAD
Principal Employers
Current Year and Nine Years Ago
2007
1998*
Percent of
Percent of
Number of
Total
Number of Total
Employer
Employees
Employment
Employees Employment
Southern California Edison
1
4,000
16.26%
- 0.00%
Countrywide Home Loans
2
2,500
10.16%
- 0.00%
Garvey School District
3
1,000
4.07%
- 0.00%
Rosemead School District
4
375
1.52%
- 0.00%
Hemetic Seal Corporation
5
260
.1.06%
- 0.00%
La Victoria Foods
6
250
1.02%
- 0.00%
Marge Carson, Inc.
7
225
0.91%
- 0.00%
Irish Construction
8
220
0.89%
- 0.00%
Panda Restaurant Group
9
220
0.89%
- 0.00%
Don Bosco Tech
10
200
0.81%
- 0.00%
i Based upon Employment Development Department's estimate of 24,600 residents employed in 2006-07.
* Information for 1998 is not available.
Source: Rosemead Chamber of Commerce
88
1
CITY OF ROSEMEAD
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Full-Time and Part-time Employees as of June 30
Function 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
General government 18 17 16 16 19 16 14
Public safety 1 23 25 25 19 16 23 22
Community
development 10 5 8 12 6 5 6
Parks and recreation 87 91 100 101 107 117 97
15 18 17
17 23 22
6 6 11
94 103 101
Total 138 138 149 148 148 161 139 132 150 151
The City of Rosemead contracts with the Los Angeles County Sheriffs Department for all
police services with the exception of parking control and crossing guards which are provided
by City personnel.
The City of Rosemead is part of the Los Angeles County Fire Protection District which provides
fire fighting, fire prevention, and plan check services for the City.
The City of Rosemead also contracts for Public Works and Engineering services.
Source: City Finance Department
89
CITY OF ROSEMEAD
Operating Indicators
by Function
Last Ten Fiscal Years
Fiscal Year
Police:
Arrests
Parking citations issued
Fire:
Number of emergency calls
Inspections
Public works:
Street resurfacing (miles)
Parks and recreation:
Number of recreation classes
Source: City of Rosemead
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
1,510 1,366 1,292 1,310 1,299 1,102 1,081 1,230 1,315 1,786
n/a n/a n/a n/a n/a n/a n/a n/a n/a 9,651
n/a n/a n/a 2,634 2,809 2,728 2,733 2,800 2,868 2,994
117 117 117 117 117 117 117 117 117 117
3.9 1.4 4.9 - 1.7 - 1.3 - 1.3 2.5
350 350 400 400 400 420 450 530 720 775
90
1
1
1
1
1
CITY OF ROSEMEAD
Capital Asset Statistics
by Function
Last Ten Fiscal Years
Fiscal Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Public Safety:
Sheriff stations
1
I
I
1
I
1
1
1
I
1
Fire:
Fire stations
2
2
2
2
2
2
2
2
2
2
Public works:
Streets (miles)
76.80
76.80
76.80
76.80
76.80
76.80
76.80
76.80
76.80
76.80
Streetlights
2,299
2,371
2,483
2,571
2,506
2,700
2,700
2,702
2,705
2,706
Traffic signals
39
39
39
39
39
39
39
39
39
41
Parks and recreation:
Parks
10
10
10
10
10
10
10
10
10
10
Community centers
2
2
2
2
2
2
2
2
2
2
Source: City of Rosemead
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Rosemead City Hall
8838 E. Valley Boulevard Rosemead, CA 91770
Telephone: (626) 569-2100