2004 CAFR1
1
1
1
1
1
1
1
1
1
1
1
i
1
1
1
1
i
1
CITY OF ROSEMEAD
California
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 305 2004
F(NR~JC~
cory
I
1
i
1
1
1
i
1
1
1
1
1
1
1
1
1
1
1
1
I
1]
1
I
CITY OF ROSEMEAD, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2004
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal i - ix
List of City Officials x
Organizational Chart xi
Certificate of Award for Outstanding Financial Reporting xii
Certificate of Achievement for Excellence in Financial Reporting xiii
FINANCIAL SECTION
Independent Auditor's Report
1 - 2
Management's Discussion and Analysis
3-10
Basic Financial Statements:
Government-wide Financial Statements:
Statement of net assets - governmental activities
11
Statement of activities - governmental activities
12
Fund Financial Statements:
Balance sheet - governmental funds
14 and 15
Reconciliation of total governmental fund balances to net assets
of governmental activities in the statement of net assets
16
Statement of revenues, expenditures and changes in fund
balances - governmental funds
18 and 19
Reconciliation of the statement of revenues, expenditures and changes
in fund balances of governmental funds to the statement of activities
20
Statement of fiduciary net assets - trust and agency funds
21
Statement of changes in fiduciary net assets - pension trust fund
22
Notes to the financial statements
23 - 41
Required Supplementary Information
Schedule of revenues, expenditures and changes in fund balances -
budgetary comparison - general fund 44 and 45
1
I
TABLE OF CONTENTS CONTINUED
Schedule of revenues, expenditures and changes in fund balances - '
budgetary comparison - community development
block grant 46 ,
Notes to required supplementary information 47
Supplemental Schedules ,
Combining balance sheet - nonmajor governmental funds - special
revenue funds 50 and 51 '
Combining statement of revenues, expenditures and changes in fund
balances - nonmajor governmental funds - special revenue funds 52 and 53 ,
Combining schedule of revenues and expenditures - budget and
actual - nonmajor governmental funds - special revenue funds 54 - 56
Statement of changes in assets and liabilities - agency fund 57
STATISTICAL SECTION
Government-wide information:
Government-wide Expenditures by Function
60 and 61
Government-wide Revenues by Source
62 and 63
Fund information:
General Governmental Expenditures by Function - All Governmental
Fund Types
64 and 65
General Revenues by Source - All Governmental Fund Types
66 and 67
D
Other Tax Revenues by Source - All Governmental Fund Types
68
Computation of Legal Debt Margin
A
69
0
ssessed Valuations of Taxable Property
7
and 71
Property Tax Levies and Collections
72
Special Assessment Levies and Collections - Lighting and
'
Maintenance District
73
Ratio of Annual Debt Service Expenditure for Total Bonded
Debt to Total General Expenditures
74
'
Ratio of Annual Debt Service Expenditure for Total Bonded
Debt Per Capita
76
'
Ratio of Annual Debt Service Expenditure for Total Bonded
Debt to Assessed Valuation
Property Tax Rates - All Overlapping Governments
77
78
,
Schedule of Direct and Overlapping Bonded Debt
79
Demographic Statistics
80
'
Principal Taxpayers
82
I
I TABLE OF CONTENTS CONTINUED
'
Schedule of Insurance in Force
'
Construction Activity
Miscellaneous Statistics
Vicinity Map
1
1
1
I
83
84
85
86
1
1
1
i
N
T
R
0
0
u
c
r
0
MAYOR:
YOR:
MA
CLARK
MAYOR PRO TEM:
JAY T. IMPERIAL
'
COUNCILMEMBERS:
BILL ALARCON
GARY A. TAYLOR
JOE VASQUEZ
1
11
i
I
December 1, 2004
The Honorable Mayor
and Members of the
Rosemead City Council
Councilmembers:
Poscmead
8838 E. VALLEY BOULEVARD • P.O. BOX 399
ROSEMEAD, CALIFORNIA 91770
TELEPHONE (626) 569-2100
FAX (626) 307-9218
Submitted for your information and consideration is the Comprehensive Annual Financial Reportforthe
fiscal year ended June 30, 2004. This is a combined report of the City of Rosemead, Rosemead
Community Development Commission and the Rosemead Housing Development Corporation. The
report is prepared by the City's Finance Department and made available to residents, the City Council,
and the investment community.
The responsibility for both the accuracy and completeness of the financial report rests with the City. To
the best of our knowledge the information presented is accurate in all material aspects and includes all
disclosures necessary to enable the reader to gain an understanding of the City's financial activities.
' GENERAL INFORMATION
F
LJI
I redevelopment activities while the RHDC Board is responsible for oversight of two senior housing
The City of Rosemead was incorporated on August 4, 1959, and operates as a general law city. It has
a Council-Manager form of government, with five council members elected at large for four-year
overlapping terms. The Council selects a Mayor and a Mayor Pro-Tem each year from its membership.
The Council is responsible for enacting local legislation, establishing general policy for the City and
adopting annual budgets. The Council's duties include the appointments of a City Manager, City
Attorney, City Clerk, City Treasurer, and the selection of citizens to serve on the City's Planning
Commission and Traffic Commission. The City Council also acts as the Rosemead Community
Development Commission (RCDC) and Rosemead Housing Development Corporation (RHDC) and the
Building Rehabilitation Appeals Board. The RCDC oversees the operation and accountability for
facilities and operation of homeownership.and rehabilitation assistance programs. '
The City of Rosemead has a population of 56,710 living in an area encompassing 5.5 square miles. ,
The City is located in the central metropolitan area of Los Angeles County, approximately nine miles
east of downtown Los Angeles. The City shares common boundaries with the municipalities of San '
Gabriel, Temple City, El Monte, South El Monte, Montebello, and Monterey Park. Two majorfreeways,
the San Bernardino (1-10) and the Pomona (60) intersect the City in an east\west direction providing '
convenient access to all areas of Southern California. In addition, major rail and public bus lines
provide convenient regional transportation options.
Sales tax is the City's major revenue source and is derived from light manufacturing, commercial and 1
local retail business activities. Commercial and industrial uses account for approximately 22% of the
land use within the City. The remaining 78% of land area is used for residential purposes (64%), and
by public facilities activities (14%).
HIGHLIGHTS OF FISCAL YEAR 2003.04
Administration: The year was dominated by state-level fiscal and political issues that came to a head a
with the recall of Governor Gray Davis and the election of Arnold Schwarzengger. The state's inability
to control its expenditures and live within its fiscal means precipitated state raids on local government a
revenues. The new governor's first executive order that permanently repealed the vehicle license fee
further exacerbated the local revenues picture. California local government agencies responded to
these unwarranted attacks on local revenue sources by qualifying an initiative for the November 2004
ballot, which would provide constitutional protection of local revenues. Subsequently, Governor
Schwarzenegger and the League of California Cities negotiated an alternative ballot measure,
Proposition 1A, which provided stronger revenue protection than the cities original initiative. In return
the cities and counties offered to help the state solve its budget crisis by giving up $2.6 billion in
revenues in 2004-05 and 2005-06 (which translates into roughly a $1.4 million share for Rosemead). '
Proposition 1A passed with over 80% approval.
During this fiscal year, the City had an estimated reduction of $520,000 in motor vehicle license fee ■
(VLF) revenue and $207,000 in Educational Revenue Augmentation Fund (ERAF). The state is ■
obligated to replace the lost VLF revenue in fiscal year 2006-07. Proposition 1A addresses future VLF
payments for local agencies by permanently replacing VLF backfill revenue with a like amount of '
property tax revenues thereby making local government agencies whole. Rosemead's tax increment
revenues from Redevelopment Project Area No.1 continued to remain flat, although new development '
projects coming on-line will start to boost revenues. Nonetheless, state's budget crisis requires that we
maintain a careful watch on revenues. i
Public Works: As the City gears up for some major capital improvements over the next few years, only '
two capital improvement projects were completed during the fiscal year. Additionally, Traffic Congestion ,
J I
I
Relief (TCR) funds were utilized to slurry seal various streets throughout the City. Gas Tax, Sidewalk
' Grant and Community Development Block Grant (CDBG) funds were utilized to repairdamaged curbs,
gutters and sidewalks and to perform ADA upgrades citywide. Rosemead Community Development
' Commission and CDBG funds were utilized to perform ADA retrofitting and various City park
playgrounds.
Planning: A variety of exciting development activities took place during Fiscal Year 2003-2004. These
'development activities, both large and small, are creating positive changes to the landscape of the
community. These positive changes include physical, social and economic aspects that will help to
position Rosemead for a future of economic stability and an enhanced "quality of life". ,
' Although considered a "built out" community with few vacant properties left to develop, Rosemead has
the potential for redeveloping numerous neighborhoods and commercial corridors with Infill" projects.
These "infilP' projects, though challenging to coordinate, will increase the economic vitality of the
community and build upon the existing strengths that are inherent to the City.
The most important commercial activity that was realized this year was the approval of land use
entitlements for a proposed Wal-Mart Supercenter to be located on Walnut Grove Avenue. Wal-Mart
entered into a purchase/sale agreement for the vacant property from Southern California Edison (SCE).
The Supercenter concept is new to Southern California and Wal-Mart has announced that they have
plans to open forty (40) of these retail outlets in the Southern California region over the next several
years. The project was approved by the City Council in September 2004 and is currently the subject of
' a legal challenge.
' New office buildings built or under construction in the City include the following: One office structure
has been completed along the eastern section of Valley Boulevard. Located at 9428 Valley Boulevard,
the building consists of approximately 9,000 square feet of medical office use with a building valuation
' of $651,000. A second office/retail structure is currently under construction at 9368 Valley Boulevard
and consists of 6,250 square feet and a building valuation of $452,000. The third significant new office
development is located adjacent to the Fire Station #4, at 2630 San Gabriel Boulevard, consists of a
' 6,000 square foot structure with a building valuation of $938,000.
New retail developments include Oak Tree Plaza located at 8036-8038 Garvey Avenue. This
development consists of approximately 8,400 square feet of retail space and has a building valuation of
$530,000. Also under construction along Valley Boulevard is a new McDonalds Restaurant that
' consists of 4,000 square foot structure with a building valuation of $386,000. Walgreens has opened
their first pharmacy/market at the southeast corner of Garvey and San Gabriel Blvd. This development
' includes the reconstruction of a neighborhood market (Los Toros Meat Market). The building valuation
of this project is estimated at $1.2 million. .
Rosemead Place Shopping Center (Target Center) has successfully re-tenanted the Kids-R-Us store
with Bed Bath and Beyond which recently opened for business. The Bed Bath & Beyond remodel
included two additional shop spaces and had a building remodel/expansion. Office Depot recently
opened within the center adjacent to Bed Bath and Beyond. The tenant improvement plan for this
space was valued at $550,000. These new national retail tenants are great additions to the center and
will create additional synergy between the new Target store and other proposed tenants that are
currently looking at vacant tenant space. The owners of the center have also submitted plans for a
major exterior renovation project. The project includes new stucco finishes, changes to the color
scheme, roof cornice details, tower elements, wood trellis', metal canopy systems, lighting fixtures and
landscape imptovements. This fagade renovation program will create an exciting new look to the
largest shopping center in the City.
Currently under construction in the northern most portion of the City is an Industrial Park that includes
123,000 square feet of industrial floor space with an estimated building valuation of $3.9 million.
Two preschools and a church expansion project are also under construction and should be completed
in the coming months. One preschool is located at 2739 Stingle Avenue and is valued at $258,000.
The second school is remodeling a vacant building at 2600 New Avenue and has a remodel valuation
of $324,000. The church expansion for the Buddhist Ortho Creed Association located at 3021 Del Mar
Avenue includes a new Assembly Hall and parking structure, which together are valued at $1.5 million.
On the residential development front, three larger residential tract developments were approved in the
north-west portion of the City, in the vicinity of Mission Drive. One of those projects is currently under
construction and includes the development of sixteen, new, detached single-family residences. The
other two single-family developments that were approved in nearby neighborhoods include twenty
additional single-family lots.
Parks and Recreation: The City completed various park and recreation improvements during the fiscal
year. At the Rosemead Community Recreation Center new furniture, counter tops, carpet and tile were
installed. New rubber surfacing under the play equipment was installed in the preschool area.
Various purchases were made to improve and upgrade the operations at Garvey Community Center,
which included a sound system, new drum sets for percussion classes, bike racks and wrestling mats.
Rosemead's aquatic facilities received equipment upgrades and plans are underway for renovating
locker and shower room facilities.
New rubber surfacing under the play equipment and new play equipment were installed at Garvey Park.
Picnic tables fabricated from recycled materials and heavy duty bar-b-ques grills were also installed at
Garvey Park during 2003-04.
iv
1
1
I
PROSPECTS FOR THE FUTURE
' Although it is difficult to predict with any degree of certainty what the future will bring given the many
variables affecting our national, state and local economy, we are nonetheless optimistic about the City's
' future. Recent economic trends, the state budget crisis notwithstanding, suggest a busy and full
development agenda incoming years. The following narratives describe projects that we anticipate will
' be initiated during the next fiscal year.
First, on the public infrastructure side, several capital improvement projects are planned for fiscal year
2004-05. CDBG funds will be utilized to install ADA-compliant pedestrian push buttons on all traffic
signals throughout the City as well as pedestrian improvements on San Gabriel Boulevard. CDBG
' funds will also be utilized for the reconstruction of several alleys adjacent to Valley Boulevard and for
the reconstruction of Virginia Street, which is anticipated to start in Winter and late Spring 2005,
respectively.
' The installation of a new traffic signal at Hellman Avenue and the eastbound 1-10 off-ramps will also
begin in Spring 2005, pending authorization of the Federal Transportation Act from which Federal grant
i funds may be made available for construction of the signal. Gas Tax funds will be utilized for
performing miscellaneous concrete repairs and to slurry seal and resurface various streets throughout
' the City. -11 -
Federal Transportation Efficiency Act (TEA) funds will be utilized for street improvements on San
1 Gabriel Boulevard, including new sidewalks, parkway trees and an asphalt concrete overlay. It is
anticipated that the reconstruction of the Hellman Avenue Bridge over the Alhambra Wash utilizing
' Federal Highway Bridge Replacement and Rehabilitation (HBRR) funds will begin in April 2005. The
engineering design and environmental clearance forthe replacement of the Garvey Avenue Bridge over
the Rio Hondo will continue in fiscal year 2004-05.
Despite. the negative impact of state budget constraints upon regional and statewide construction
projects and jobs, the City is committed to pressing ahead with planning and construction of these and
other important infrastructure projects. These public works will create good quality jobs while at the
same time improving the city's physical environment and quality of life for residents and businesses.
On the business community front, the city is seeing an upswing in investment and new businesses. In
fact, the Rose Institute of State and Local Government at Claremont McKenna College released its
' annual "Cost of Doing Business Survey" which identified Rosemead as the best place in the San
Gabriel Valley when it comes to the cost of doing business.
' Several commercial infill projects that utilize Southern California Edison transmission line right of way
will move forward in the next calendar year. The City held public hearings and approved plans to
' convert a three-acre parcel into an office/retail shopping center with approximately 33,000 square feet
I
of leaseable floor area.
Another SCE right of way development is scheduled to be developed along San Gabriel Boulevard t
south of Garvey Avenue. The City and the California Public Utility Commission have granted approval
of an industrial park with a self-storage facility at 2447 San Gabriel Boulevard. The project includes
110,000 square of storage and 17,500 square feet of commercial/industrial space.
Other projects that have been approved by the City and will begin construction in the coming months '
include a 8,500 square foot office building on the vacant Carrerra Tile site valued at $615,000 and a 65-
room Comfort Suites Hotel located at 9512 Valley Boulevard valued at,$2.6 million. '
The City is still actively working with developers to redevelop several key commercial sites within the .
City, including parcels located along Valley and Rosemead Boulevards. A few of the targeted sites ,
include the northeast corner of Valley and Temple City Boulevards and the northwest corner of Valley
and Rosemead Boulevards; as well as, the northeast corner of Del Mar and Garvey and southwest ,
corner of Rosemead Boulevard and Mission Drive.
REPORTING ENTITY AND ITS SERVICES
The reporting entity is comprised of all funds of the City of Rosemead, Rosemead Community
Development Commission, and Rosemead Housing Development Corporation. '
The Rosemead Community Development Commission finances streets, parks, and utility improvements
within the Redevelopment project area, as well as, in some selected areas outside the project area,
which benefit the project area. The Rosemead Housing Development Corporation provides for
conservation and financing of Low and Moderate Income Housing within the City limits. The City of '
Rosemead provides a broad range of services to its citizens including general government, public
safety, street construction and maintenance, sanitation, building safety, parks and recreational facilities, ,
and cultural services. Some of the functions typically provided by municipal government are, as in the
City of Rosemead, provided by special districts. These districts, which usually encompass an area
larger than the City itself, include the Consolidated Fire Protection District of Los Angeles County, the '
Los Angeles County Public Library District, and the Los Angeles County Sanitation Districts. Other
governmental functions paid for by the City but performed by County departments under contract with
the City are police protection, street maintenance, and animal control. '
FINANCIAL INFORMATION '
The City requires that its financial statements be audited by a Certified Public Accountant selected by
the City Council. This requirement has been satisfied, and the Auditor's opinion is included in the t
financial section of this report.
I
Vi 1
I
' In addition, the City is required to undergo an annual single audit in conformity with the provisions of.
the Single Audit Act and U.S. Office of Management and Budget Circular A-133, "Audits of States,
Local Governments and Non-profit organizations." This requirement has also been satisfied and there
were no material exceptions noted in the report.
We encourage readers to consider the information presented here in conjunction with the additional
' information furnished in the Management's Discussion and Analysis, basic financial statements and the
accompanying notes to those financial statements.
' The Comprehensive Annual Financial Report is divided into the following three sections:
' 1. Introductory Section - which includes this transmittal letter, list of principal officials, the City's
Organization Chart, the California Society of Municipal Finance Officers (CSMFO) Outstanding
Financial Reporting certificate and the Government Finance Officers Association of the United
' States (GFOA) Certificate of Achievement for excellence in Financial Reporting for the fiscal
year ended June 30, 2003.
' 2. Financial Section - which includes the auditor's opinion, Management's Discussion and
Analysis, basic financial statements, Required Supplementary Information, and Supplemental
t Schedules.
3. Statistical Section - which includes relevant financial and non-financial data presenting
historical trends and other information about the City.
BUDGETARY CONTROL
' In addition to internal accounting controls, the City also maintains budgetary controls. The objective of
' these budgetary controls are to insure compliance with the City's budget policy embodied in the annual
appropriated budget approved by the City Council. Activities of the general fund, special revenue
funds, debt service fund, and capital projects fund are included in the annual approved budget.
' Budgetary control is maintained at a functional level by division within departments through use of
' object level account appropriations. Actual expenditures are compared to these appropriations.
The City Manager is authorized to transfer budgeted amounts between funds within the same
. , department. Any new appropriations must be authorized by City Council.
All unexpended budgeted funds lapse at the end of the budget year. The exception is the capital
projects fund because the budgeted appropriations relate to all future appropriations as well as current
year appropriations.
1 vii
I
CASH MANAGEMENT
The City and the Commission maintain separate cash and investment pools. Each fund's or fund's
type's share of the pool balance is reported in the financial statements as "cash and cash investments."
Earnings from the pooled investments are allocated monthly to each participating fund based on a
formula that takes into consideration each fund's average investment in the pool.
RISK MANAGEMENT
The City of Rosemead has been a member of the California Joint Powers Authority since its inception
in 1976. Members are insured for $50,000,000 per occurrence for General and Automotive Liability
and the same amount for Special Liability, which includes errors and omissions. The City Manager
acts as the Risk Manager and one member of Council is a delegate to the Authority.
GANN LIMIT
In 1979, Proposition 4, the "Gann" initiative, was passed. This
measure was intended to control government spending by
establishing a spending limit, which is calculated from the base
year 1978-79 and adjusted annually by the Consumer Price
Index and population changes. This limitation applies only to
appropriations subject to the limitation as defined under Article
XIIIB of the California Constitution. We are pleased to inform
you that the City is in the enviable position of being well within
30% of the calculated appropriation limit at June 30, 2004. The
City's 2004-05 estimated revenues and budgeted expenditures
indicate that by June 30, 2005 the City will be approximately
35% of the limit.
OTHER INFORMATION
The City of Rosemead was pleased to receive a Certificate of Award for Outstanding Financial
Reporting from the California Society of Municipal Finance Offices (CSMFO) for the City's
Comprehensive Annual Financial Report, Fiscal Year Ended June 30, 2003. This Certificate is
awarded to governmental units who publish an easily readable, efficiently organized, comprehensive
annual financial report, which conforms to program standards and satisfies both generally accepted
accounting principles and applicable legal requirements. The City of Rosemead was awarded this
Certificate for the last fifteen (15) consecutive years.
This Certificate is valid for a period of one year only. We believe that the City's current comprehensive
1
1
I
1
I
I
1
1
1
I
Viii
i
annual financial report continues to meet the Certificate of Achievement program requirements and are
again submitting it to the CSMFO to determine its eligibility for another certificate.
1
1 The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Rosemead for its
Comprehensive Annual Financial Report for the fiscal year ended June 30, 2003. The Certificate of
1 Achievement is a prestigious national award recognizing conformance with the highest standards for
preparation of state and local government financial reporting.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable
and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program
' standards. Such CAFR must satisfy both generally accepted accounting principles and applicable legal
requirements.
' A Certificate of Achievement is valid for a period of one year only. The City of Rosemead received a
Certificate of Achievement last year. We believe our current report continues to conform to the
' Certificate of Achievement program requirements, and we are submitting it to GFOA.
ACKNOWLEDGMENTS
' The preparation of this report could not have been accomplished without the efficient and dedicated
efforts of the entire Rosemead Finance Department. The department's effort to upgrade the quality of
1 financial reporting for the City of Rosemead has led to improved quality of financial information
available to the City Council and citizens.
1 We would like to thank the members of the City Council for their continued support, leadership and
concern for the financial stability of the community.
1 Respectfully submitted,
`rte' z
Bill Crowe
City Manager
i
Karen Ogawa/
' Finance Director
1
ix
r,.
CITY OF ROSEMEAD, CALIFORNIA
CITY OFFICIALS
June 30, 2004
ELECTED OFFICIALS:
City Council:
Margaret F. Clark Mayor
Jay T. Imperial Mayor Pro Tern
William Alarcon Councilman
Gary A. Taylor Councilman
Joe Vasquez Councilman
APPOINTED OFFICIALS:
Planning Commissioners:
Darrel Kelty Chairman
Duc Loi Vice Chairman
Robert Breen Commissioner
Diane Herrera Commissioner
Daniel Lopez Commissioner
Traffic Commissioners:
Holly Knapp Chairman
Brandan Matsdorf Vice Chairman
Edward Quintanilla Commissioner
Michael Benjamin Commissioner
Bill Crowe City Manager
Bill Crowe City Treasurer
Robert L. Kress City Attorney
Nancy Valderrama City Clerk
X
1
LU
M U
W J
fA C
O
U.
Q
N
H Q
U C7
O
xi
I
v ~
V
U ~
W
O
U
M
O
N
O
N
O
t"r
W
O.i
-1
O
C4
r~l
V
E
E
1
U
9
W
n
1
c
z
d
F
1
_
o
d
v
.
~ d
W
V
1
d
d
4 e t
~
o ~
y'o3
p
C
m
'Ek
1
v
v
ea
o o
~a
-
~
,
r
W
a
~
i
1
1
1
xii
I
1
1
i
1
1
1
1
1
1
1
1
1
1
1
1
1
i
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Rosemead,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2003
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
-.NGE OfFj~ .
work=
p M s President
9 Srai as'
uuua
Executive Director
xiii
THIS PAGE INTENTIONALLY LEFT BLANK
Xiv
1
1
1
F
N
A
N
C
I
A
L
' McGladrey&Pullen
Certified Public Accountants
' Independent Auditor's Report
' The Honorable Mayor and Members
of the City Council
City of Rosemead
Rosemead, California
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, (the City) as of and for the year ended
June 30, 2004, which collectively comprise the City's basic financial statements as listed in the accompanying table
of contents. These financial statements are the responsibility of the City's management. 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 as of June 30, 2004, and the respective changes in financial position, thereof for the year then ended, in
conformity with accounting principles generally accepted in the United States of America.
As described in Note 4 to the financial statements, the City has reported all of its retroactive major general
infrastructure assets in the statement of net assets, effective July 1, 2003. The effect of reporting all of their major
general infrastructure assets was to increase the City's net assets for the governmental activities as of July 1, 2003
by $20,220,578, net of accumulated depreciation of $16,042,844.
In accordance with Government Auditing Standards, we have also issued our report dated October 8, 2004 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 and 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.
' The Management's discussion and analysis and supplementary budgetary comparison schedules on pages 3 to
10 and 44 to 46 , respectively, 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.
1
' McGladrey 8 Pullen, LLa is a member firm of RSM International,
an afflhation of separate and independent legal entities.
I
'
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City's basic financial statements. The combining and individual nonmajor fund financial statements and other
schedules, listed in the table of contents as supplementary information, are presented for purposes of additional
'
analysis and are not a required part of the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation the basic financial statements taken as a whole.
'
The accompanying introductory and statistical sections, as listed in the table of contents, are presented for purposes
of additional analysis and are not a required part of the basic financial statements. This information has not been
,
subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we
express no opinion on it.
Pasadena, California
October 8, 2004
1
1
1
I
L_J
LI
I Overview of the Financial Statements
MANAGEMENT'S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2004
THE CITY OF
ROSEMEAD
As management of the City of Rosemead ("City'), we offer readers of the City's financial-
statements this narrative overview and analysis of the financial activities of the City for the fiscal
year ended June 30, 2004. Our intent is to assist the reader of these financial statements to better
understand the impact of the City's financial decisions. This analysis will focus on the significant
changes in an effort to explain the City's overall financial condition. We encourage the readers to
consider the information presented here in conjunction with the additional information furnished in
our letter of transmittal, the basic financial statements and the accompanying notes to.those
financial statements.
'
This section of the annual report consists of four parts - management's discussion and analysis
(this section), the basic financial statements, required supplementary information, and optional
section that represents combining statements for non-major governmental funds. The basic
'
financial statements include two kinds of statements that present different views of the City.
• The first two statements are Government-wide Financial Statements that provide both long-
term and-short-term information about the City's overall financial status.
• The remaining statements are Fund Financial Statements that focus on individual parts of the
'
City government, reporting the City's operations in more detail than the Government-wide
Statements.
'
Governmental Funds Statements detail how general government services such as public
safety were financed in the short-term as well as what remains for future spending.
'
Fiduciary Fund Statements provide information about the financial relationships - such as
contractor and miscellaneous deposits - in which the City acts solely as a trustee or agent
'
for the benefits of others to whom the resources belong.
The financial statements also include notes that explain some of the information in the financial
statements and provide more detailed data. The statements are followed by a section of required
'
supplementary information that further explains and supports the information in the financial
statements. In addition to these required elements, we have included a section with combining
t
statements that provide detail about our non-major governmental funds, which are added together
and presented in single columns in the basic financial statements.
The remainder of this overview section of management's discussion and analysis explains the
structure and contents of each of the statements.
Government-wide Financial Statements
The Government-wide Financial Statements report information about the City as a whole using
accounting methods similar to those used by private-sector companies. The Statement of Net
Assets includes all of the City's assets and liabilities. All of the current year's revenues and
expenses are accounted for in the Statement of Activities regardless of when cash is received or
paid.
The two Government-wide Financial Statements report the City's net assets and how they have
changed. Net assets - the difference between the City's assets and liabilities - are one way to
measure the City's financial health, or position. Overtime, increases or decreases in the City's net
assets are an indicator of whether the City's financial health is improving or deteriorating,
respectively. One needs to consider additional non-financial factors, such as changes in the City's
property tax base and the condition of the City's infrastructure, to assess the overall health of the
City.
The Government-wide Financial Statements of the City are 100% categorized as Governmental
activities. The City's basic services, such as law enforcement, public works, community services,
community development, and general administration, are included here. Taxes, revenues from
other governments and agencies, income from property tax and investments, grants and
contributions, and charges for services finance most of these activities.
Fund Financial Statements
The Fund Financial Statements provide more detailed information about the City's most significant
funds - not the City as a whole. Funds are accounting devices that the City uses to keep track of
specific sources of funding and spending for particular purposes.
Some funds are required by State law and bond covenants, while the City establishes other funds
to control and manage money for particular purposes or to show that it is properly using certain
taxes and grants.
The City has two kinds of funds:
Governmental funds - Most of the City's basic services are included in governmental funds.
These funds are used to account for (1) cash and other financial assets that can readily be
converted to cash flow in and out, and (2) balances left at year-end that is available for
spending. Consequently, the Governmental Funds Statements provide a detailed short-term
view that helps the reader determine the amount of financial resources that can be spent in the
near future to finance the City's programs. A reconciliation between the long-term and short-
1
1
1
I
1
I
5
1
1
1
'
term focus of the Government-wide Financial Statements is provided immediately following
each statement.
Fiduciary funds - These funds are used to account for situations where the City's role is purely
custodial, such as the receipt, temporary investment, and remittance of fiduciary resources to
'
individuals, private organizations, or other governments. All of the City's fiduciary activities are
reported in a separate Statement of Fiduciary Net Assets. We exclude these activities from the
City's Government-wide Financial Statements because the City cannot use these assets to
finance its operations.
' Financial Analysis of the City as a Whole
Net Assets
The City's combined net assets for the fiscal year ended June 30, 2004, as shown below, were
$43,464,853. The most significant change in net assets is primarily due to capital assets acquired
prior to the implementation of GASB 34, which totals $20.2 million net of $16.0 million in
accumulated depreciation.
1
I
NET ASSETS - GOVERNMENTAL ACTIVITIES
2004
2003
Cash and investments
$
33,141,922
$
31,754,392
Receivables
2,824,065
3,163,572
Prepaid items
3,000
3,000
Restricted assets, cash and investments
2,321;835
2,321,914
Capital assets
41,804,905
22,698,019
Total assets
$
80,095,727
S
59,940,897
Accounts Payable and accrued liabilities
$
2,846,375
$
2,661,578
Deferred revenue
97,204
131,778
Noncurrent liabilities
33,687,295
34,049,413
Total liabilities
$
36,630,874
$
36,842,769
Invested in capital assets, net of related debt $ 10,439,445 $ (11,351,394)
Restricted 6,526,788 3,194,817
Unrestricted 26,498,620 31,254,705
Total net assets $ 43,464,853 $ 23,098,128
5
Governmental Activities
The following table presents the cost of each of the City's major programs, as well as each
function's program revenues (fees generated by the activities, contributions, and intergovernmental
aid). The most significant change in governmental activities is primarily due to capital assets
acquired prior to the implementation of GASB 34, which totals $20.2 million net of $16.0 million in
accumulated depreciation.
GOVERNMENTAL ACTIVITIES
PROGRAM REVENUES AND EXPENSES
2004 2003
Revenues:
Program Revenues:
Charges for services $ 6,686,442 $ 6,812,460
Operating grants and contribution 6,136,054 6,253,601
General Revenues:
Taxes:
Property taxes 3,941,383 3,561,019
Sales and use taxes 2,865,887 3,296,371
Transient occupancy taxes 1,081,174 968,131
Other taxes 149,737 125,823
Income from property and investments 187,278 680,401
Total revenues $ 21,047,955 $ 21,697,806
Expenses:
General government
$ 2,972,310
$ 3,211,759
Public safety
5,797,080
6,027,827
Public works
2,058,252
2,508,194
Public health
65,583
76,978
Public recreation
3,201,236
2,991,866
Community services
3,121,996
3,230,193
Interest on long-term debt
1,854,185 "
1,875,973
Depreciation expense
1,831,166
552,358
Total expenses
$ 20,901,808
$ 20,475,148
Change in net assets
146,147
1,222,658
Net assets at beginning of year
43,318,706
21,875,470
Retroactive infrastructure
-
20,220,578
Net assets at end of year
$ 43,464,853
Net assets at end of year, as restated
$ 43,318,706
1
1
1
1
I
1
I
6 1
Financial Analysis of the City's Funds
e
As noted earlier, the City uses fund. accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unreserved fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported ending fund
balances of $35.6 million. Approximately 51% of this amount ($18.0 million) constitutes
unreserved fund balance, which is available for spending at the government's discretion based on
the purpose for which it was received. The remainder of the fund balance is reserved ($3.5 million)
'
or designated ($14.0 million), which indicates that it is not available for new spending because it
has already been committed (1) to pay debt service ($23 million), (2) for future low-moderate
income housing projects ($.9 million), (3) for a variety of other restricted purposes ($.4 million), (4)
'
for future capital project ($6.9 million), (5) for replacement of building and "equipment ($1.8 million),
and (6) other contingencies including litigation and self insurance ($5.3 million).
' The General fund is the chief operating fund of the City, and at the end of the fiscal year had an
ending fund balance of $20.4 million, an increase of $0.8 million. This increase was primarily due
to an increase in license and permit fees and decrease in general government expenditures.. The
' unreserved portion of the General fund was $19.2 million, of which $7.1 million was designated.
The Capital Projects fund showed a decrease of $0.7 million in their fund balances during the year.
' The Other Governmental Funds showed an increase of $1.1 million, which is primarily due to the
increase in State Gas Tax and Public Transportation fund balances.
' General Fund Budgetary Highlights
' There were no budget amendments to the budgeted revenues during the year. The difference
between the final budgeted revenues and the actual revenues for the year was $82,461. The
' increase is primarily due to increase in sales and use taxes, transient occupancy taxes, building
permits which were partially offset by a decrease in intergovernmental grants and income from
investments.
' The increase from the total original budgeted expenditures to the final budget amounted to
$255,080, due to a projected increase in operating expenditures. The difference between the final
budgeted expenditures and the actual expenditures for the year on a budgetary basis of $786,244
can be generally summarized as a "savings" being carried forward into the new fiscal year to
enhance and provide for future services and programs.
1
Capital Assets and Debt Administration
Capital Assets
At the end of 2004, the City had recorded an investment of $41.8 million in a broad range of capital
assets, including land, buildings, park facilities, vehicles, maintenance equipment, and
infrastructure assets. This number does include all infrastructure assets, even those acquired prior
to implementation of GASB 34 which totals $20.2 million net of $16.0 million in accumulated
depreciation. The following table presents the City's capital assets.
CITY OF ROSEMEAD'S CAPITAL ASSETS
2004 2003
Land
Construction in progress
Buildings and improvements
Improvements other than building
Furniture and office equipment
$ 2,953,234 $ 3,018,234
1,227,002 -
17,546,214 18,047,664
138 1,359
490,235
Machinery and equipment 56,104
Automobiles and trucks 65,686
Infrastructure 19,466,292
Net capital assets $ 41,804,905
544,258
167,797
97,374
821,333
$ 22,698,019
More detailed information about the City's capital assets is presented in Note 4, Capital Assets, to
the financial statements.
Debt Administration
At year-end, the City had $33.7 million in bonds and compensated absences. More detail about
the City's long-term liabilities is presented in Note 5, Long-term Debt, to the financial statements.
Economic Factors and Next Year's Budgets and Rates
According to the Los Angeles Economic Development Commission's July 2004 economic forecast,
the California and Southern California economies will pick up speed over the balance of 2004 and
into 2005. The state's economy will grow by 0.8% or by 114,000 jobs in 2004, accelerating to 1.3%
or 189,100 jobs in 2005. California's business environment will continue to present a challenge
there is a "premium" attached to doing business in the State and it is getting bigger. Issues in focus
.include workmen's compensation insurance, paid family leave, the increased contributions by
1
1
D
0
8
B
1
I
1
I
I
8
Il
I
business to the unemployment insurance fund and nuisance lawsuits. Further destabilizing the
State's situation will be the ongoing problems with the state budget (deficit). New taxes seem likely.
There is anticipation of the Governor's plan to "re-invent" (streamline) state government.' "Blowing
up the boxes" could cause a real uproar in Sacramento and there could be negative impacts on
business.
The forecast also predicts that Southern California will continue to carry the growth ball in 2004 and
2005. On a percentage basis, non-farm employment in the Los Angeles County area will grow by
at 1.6% in 2005. There are conflicting trends in housing. New home construction in Southern
California should generally hold at high levels in 2004, and then ease off in 2005. The severe
supply and demand imbalance has led to rapidly rising prices, and now there is growing fear of a
"price bubble." The Riverside-San Bernardino area continues to lead in both residential housing
development and nonresidential construction.
After years of state raids on local funds, a coalition of local government agencies has achieved
passage of Proposition 1A, a constitutional amendment approved overwhelmingly by the voters on
November 2nd. Proposition 1A will restore predictability and certainty to the funding needed for
police, fire and other essential local.services.
Proposition 1A was one part of the 2004-05 state budget agreement negotiated by the League and
its local government partners with Governor Schwarzenegger and legislative leaders.
Core Details of the Budget Agreement and Proposition 1A:
• Cities, counties, special districts and redevelopment agencies will help the state solve its
budget crisis by giving up $1.3 billion in local revenues in both FY 2004-05 and 2005-06
($2.6 billion total). The cities' share of this loss will be $350 million for each of the two
years and Rosemead's annual share is projected to be $700,000.
• The state will continue to shift local property taxes to pay for schools (the "ERAF" shift -
currently about $5 billion annually), but cannot shift any additional property or sales tax or
vehicle license fees.
In an emergency, the state can borrow property tax from local government but only if prior
loans have been repaid, and only twice within a 10 year period.
• Eliminates current VLF backfill from the state general fund. Instead, provides these
' amounts to cities and counties from the countywide ERAF fund.
• Vehicle license fees are statutorily capped at .65% of the value of a vehicle,'and this
revenue is dedicated to cities and counties. If the rate falls below .65%, the state is
' constitutionally obligated to backfill cities and counties for the difference between the new
rate and .65%.
• Constitutionally protects the rate and method of distribution of the local Bradley-Burns
1 sales tax and Transactions and Use Tax. Guarantees payment of property tax backfill for
Prop. 57 sales tax cent suspension. Also guarantees return of '/4 cent Bradley Burns
' sales tax when Prop 57 bonds retired.
• Gives the Legislature the authority to authorize two or more local agencies within a county
to exchange property tax and sales tax but only if the governing bodies of each of those
' agencies approves a locally-negotiated exchange agreement.
1 9
Budgeted expenditures are expected to increase by more than $17.4 million with a General fund '
budget of $14.4 million. The increase is mainly due to a 290% increase in public works and 71%
increase in Community Development Block Grant activities. All of these factors were considered in '
preparing the City of Rosemead's General fund budget for the 2004-05 fiscal year.
Contacting the City's Financial Management
I
This financial report is designed to provide our citizens, taxpayers, investors and creditors with a '
general overview of the City's finances and to demonstrate the City's accountability for the money it
receives. If you have any questions about this report or need additional information, contact the
Finance Department, 8838 East Valley Boulevard, Rosemead, CA 91770. The Finance ,
Department can also be reached at (626) 569-2120.
1
I
I
0
0
a
I
I
I
I
I
i
10 1
'
City of Rosemead, California
Statement of Net Assets-Governmental Activities
June 30, 2004
Assets
Cash and investments
$
33,141,922
Receivables
2,824,065
Prepaid items
3,000
Restricted assets, cash and investments
2,321,835
38,290,822
'
Capital assets
Land
2,953,234
Construction in process
1,227,002
'
Buildings and improvements
21,668,159
Improvements other than buildings
868,483
Machinery and equipment
696,564
'
Autos and trucks
330,834
Furniture and equipment
2,202,763
Infrastructure
36,603,803
'
66,550,842
Less accumulated depreciation
(24,745,937)
Total capital assets (net of accumulated depreciation)
41,804,905
Total assets
$
80,095,727
'
Liabilities
Accounts payable and accrued liabilities
$
2,846,375
'
Deferred revenue
97,204
Noncurrent liabilities
Due within one year
465,000
'
Due in more than one year
33,222,295
Total liabilities
36,630,874
t
Invested in capital assets, net of related debt
10,439,445
Restricted for:
Community development projects
Capital projects
628,360
5,027,848
Low-moderate income housing
870,580
'
Unrestricted
Total net assets
$
26,498,620
43
464
853
,
,
'
See Notes to Financial Statements.
'
11
City of Rosemead, California
Statement of Activities-Governmental Activities
Year Ended June 30, 2004
Program Revenues
Net(Expense)
Operating
Revenue and
Charges for
Grants and
Changes in
Functions/Programs
Expenses
Services
Contributions
Net Assets
Governmental activities:
General government
$ 2,972,310 $
5,175,382
$ 1,850,900
$ 4,053,972
Public safety
51797,080
626,345
100,000
(5,070,735)
Highways and streets
2,058,252
103,511
2,987,635
1,032,894
Public health
65,583
-
(65,583)
Public recreation
3,201,236
287,137
(2,914,099)
Community services
3,121,996
494,067
1,197,519
(1,430,410)
Interest on long-term debt
1,854,185
-
-
(1,854,185)
Depreciation expense
1,831,166
-
-
(1,831,166)
Total government activities
$ 20,901,808 $
6,686,442
$ 6,136,054
(8,079,312)
General revenues:
Taxes:
Property taxes
Sales and use taxes
Transient occupancy taxes
Othertaxes
Income from property and
investments
Change in net assets
Net assets at beginning of year, as restated
Net assets at end of year
See Notes to Financial Statements.
12
3,941,383
2,865,887
1,081,174
149,737
187,278
8,225,459
146,147
43,318,706
$ 43,464,853
1
L
1
11
1
u'
0
0
I.
i
1
►J
I
1
1 THIS PAGE INTENTIONALLY LEFT BLANK
I
1
1
I
1
1
1
1 13
City of Rosemead, California
Balance Sheet-Governmental Funds
June 30, 2004
Assets
Community
Development
General Block Grant
Fund Fund
Cash and investments
Receivables
Prepaid items
Restricted cash and investments
Due from other funds
Total assets
Liabilities and Municipal Equit
S 20,179,605 $ - $
1,880,197 471,688 32,835
- - 2,321,835
241,447 427 -
$ 22,301,249 $ 472,115 $ 2,354,670
Liabilities
Accounts payable and accrued liabilities $ 1,637,764 $ 190,766 $
Deferred revenue 256,363 97,203
Due to other funds - 184,146
Total liabilities 1,894,127 472,115
Municipal. Equity
Fund balance:
Reserved:
Prepaid items
Long-term receivable
Debt service
Low-moderate income housing
Unreserved:
Designated for:
Redevelopment projects
Building and equipment replacement
Litigation settlements
Self-insurance
Contingencies
Undesignated:
General fund
Special revenue funds
Total municipal equity
Total liabilities and municipal equity
See Notes to Financial Statements.
353,616
1,800,000
1,000,000
300,000
4,000,000
12,953,506
1
1
I
Debt ,
Service
Fund
2,321,835
32,835
20,407,122 - 2,354,670 '
$ 22,301,249 $ 472,115 $ 2,354,670
1
'
14
Capital
Other
Total
Projects
Governmental
Governmental
Fund
Funds
Funds
$ 6,424,778 $ 6,537,539 $ 33,141,922
100,773 338,572 2,824,065
- 3,000 3,000
- 2,321,835
- 14,400 256.274
$ 6,525,551 $ 6,893,511 $ 38,547,096
$ 261,094 $ 294,595 $ 2,384,219
- - 353,566
- 72,128 256,274
261,094 366,723 2,994,059
3,000 . 3,000
- 353,616
- 2,321,835
870,580 870,580
6,264,457 625,360
6,922,652
- -
1,800,000
- -
1,000,000
- -
300,000
- -
4,000,000
- -
12,953,506
- 5,027,848
5,027,848
6,264,457 6,526,788
35,553,037
$ 6.525,551 $ 6,893,511
$ 38,547,096
15
City of Rosemead, California .
Reconciliation of Total Governmental Fund Balances to Net Assets of
Governmental Activities in the Statement of Net Assets
June 30, 2004
Total fund balances, governmental funds
Amounts reported for, governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are
not reported in the funds.
Accrued interest is not due and payable in the current period and, therefore, is not reported
in the funds.
Revenues that are not available to pay current period expenditures are deferred in the funds.
Long-term liabilities, including bonds payable and compensated absences are not due and
payable from current available resources and, therefore, are not reported in the funds.
Net assets of governmental activities
See Notes to Financial Statements.
$ 35,553,037
41,804,905
(462,156)
256,362
(33,687,295)
$ 43,464,853
16
1
1
1
THIS PAGE INTENTIONALLY LEFT BLANK
17
c
City of Rosemead, California
Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds
Year Ended June 30, 2004
Property taxes and special assessments
Other taxes
Intergovernmental
Licenses and permits
Charges for services
Fines, forfeitures and penalties
Use of money and property
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Public health
Public recreation
Community services
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers:
From other funds
(To) other funds
Total other financing sources (uses).
Net change in fund balances
Fund balance, beginning
Fund balance, ending
See Notes to Financial Statements.
Community
Development Debt
General Block Grant Service
Fund Fund Fund
$ 2,200 $ $
5,099,643
4,346,437 1,660,429
1,508,009 -
581,763 -
331,369 -
510,021 - 134,736
37 - -
12,379,479 1,660,429 134,736
2,533,700
5,204,756 -
227,958 412,027
65,583 -
3,201,236 -
2,004,371 1,248,402
5,261 -
445,000
- - 1,859,747
13,242,865 1,660,429 2,304,747
(863,386) - (2,170,011)
1,677,820 - 2,169,932
(58,241) -
1,619,579 - 2,169,932
756,193 - (79)
19,650,929 2,354,749
$ 20,407,122 $ $ 2,354,670
1
I
78
1
Capital
Other
Total
Projects
Governmental
Governmental
Fund
Funds.
Funds
$ 3,376,579 8
562,604 a
3,941,383
5,099,643
246,250
-2,573,793
8,826,909
-
1,508,009
85
581,848
-
258,521
589,890
83,678
644,156
1,372,591
-
-
37
3,706,592
4,039,074
21,920,310
169,978
261,894
2,965,572
592,324
5,797,080
727,833
1,776,540
3,144,358
-
-
65,583
-
3,201,236
-
6,732
3,259,505
21,378
-
26,639
-
445,000
-
1,859,747
919,189
2,637,490
20,764,720
2,787,403
1,401,584
1,155,590
58,241
3,905,993
(3,496,152)
(351,600)
(3,905,993)
(3,496,152)
(293,359)
(708,749)
1,108,225
1,155,590
6,973,206
5,418,563
34,397,447
8 6.264,457 9
6,526,788 9
35,553,037
19
City of Rosemead, California '
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances '
of Governmental Funds to the Statement of Activities
Year Ended June 30, 2004 '
Net change in fund balances, total governmental funds. $ 1,155,590
diff
f
i
i
i
b
'
v
ecause:
act
t
es are
erent
Amounts reported for governmental activities in the statement o
Governmental funds report capital outlays as expenditures. These expenditures are
recorded in Public Works, Community Services and Capital Outlay. However, in the
'
statement of activities, the cost of those assets is allocated over their estimated useful lives
and reported as depreciation expense. This is the amount of capital assets recorded in the
current period.
1,326,398
'
Depreciation expense on capital assets is reported in the government-wide statement of
activities and changes in net assets, but does not require the use of current financial
'
resources. Therefore, depreciation expense is not reported as expenditures in
governmental funds.
(1,831,166)
'
The net effect of various miscellaneous transactions involving capital assets (i.e., gains/losses
on sales) is to decrease net assets.
(685,068)
The repayment of long-term debt is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets.
445,000
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in the governmental
funds.
(1,176)
Revenues that were recognized for the statement of activities in the prior year are now
recognized in the funds. (263,431) a
Change in net assets of governmental activities $ 146,147
See Notes to Financial Statements.
I
20
1
t
City of Rosemead, California
Statement of Fiduciary Net Assets-Trust and Agency Funds
June 30, 2004
Assets
ension
Trust Fund
gency Fund
Cash and investments
$
-
$
228,499
Investment in mutual funds
114,683
Total assets
$
114,683
$
228,499
Liabilities and Net Assets
Refundable deposits
$
-
$
228,499
'
Net assets, held for employees' retirement
114,683
-
Total liabilities and net assets
$
114,683
$
228,499
See Notes to Financial Statements.
t
'
21
City of Rosemead, California
Statement of Changes in Fiduciary Net Assets-Pension Trust Fund
Year Ended June 30, 2004
Additions, investment income on investments pool S 5,752
Total additions
Deductions
Benefits paid to participants and beneficiaries 19,374
Administrative expenses 3,608
Total deductions 22,982
Net (decrease) in plan net assets (17,230)
Net assets, beginning 131.913
Net assets, ending S 114,683
See Notes to Financial Statements.
22
I
1
City of Rosemead, California
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies
Nature of operations:
City of Rosemead, California: The City of Rosemead, Califomia, (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.
t 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.
' Description and scope of the reporting entity: As required by accounting principles generally accepted in the
United States of America, these financial statements present the financial position of the City and its component
units, entities for which the City 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 for an organization if that organization is fiscally dependent upon the City (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 component units of the City are the Rosemead Community Development
Commission (the Commission) and the Rosemead Housing Development Corporation (the Corporation).
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.
Rosemead Housing Development Corporation: 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.
1
23
1
City of Rosemead, California
Notes to the Financial Statements '
Note 1. Summary of Significant Accounting Policies, Continued ,
Government-wide and fund financial statements: The government-wide financial statements (i.e., the statement
of net assets and the statement of changes in net assets) report information on all of the nonfduciary activities of the '
City and its blended component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities are supported by taxes and intergovernmental revenues.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are
offset by program revenues. Direct expenses are those that are clearly identifiable to a specific function or segment.
Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from, goods,' '
services or privileges provided by a given function or segment and (2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and other items not
properly classified as program revenues are reported as general revenues. ,
Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are
excluded from the government-wide financial statements. Major individual governmental funds are reported in ,
separate columns in the fund financial statements.
Measurement focus, basis of accounting and financial statement presentation: The government-wide financial
statements are reported using the economic resources measurement focus and the accrual basis of accounting, as
'
are the fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue
as soon as all eligibility requirements imposed by the provider have been met. Amounts reported as program
'
revenues include (1) charges to customers or applicants for goods, services or privileges provided; (2) operating
grants and contributions; and (3) capital grants and contributions. Internally dedicated resources, such as taxes, are
reported as general revenues rather than as program revenues.
'
Net assets are reported as restricted when constraints placed on their use are either externally imposed by creditors,
grantors, contributors, or laws or regulations of other governments, or imposed by law through local enabling
'
s policy to use
legislation. When both restricted and unrestricted resources are available for use, it is the City
'
restricted resources first, then unrestricted resources as they are needed.
Governmental fund financial statements are reported using the current financial resources measurement focus and
'
the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and ,
available. Revenues are considered available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available
,
if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when
a .liability is incurred, as under accrual accounting. Principal and interest on long-term debt are recorded as fund
liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early
'
in the following year.
Revenues that are accrued generally include real property taxes, sales tax, transient occupancy taxes, franchise '
taxes, vehicle license fees, highway users tax and interest.
I
24
I
1
City of Rosemead, California
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies, Continued
Real property taxes are levied for the period from July 1 to June 30 against property owners of record on March 1.
The taxes are due in two installments, on December 10 and April 10, and become delinquent after December 10 and
April 10, respectively. Under the provisions of National Council on Governmental Accounting Interpretation 3,
property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided it is collected
within 60 days of the end of the fiscal year in the fund financial statements.
The City's fiduciary fund types are trust and agency funds. The Agency Fund accounts for assets held as an agent on
' behalf of others. The trust fund is custodial in nature (assets equal liabilities) and does not involve measurement of
results of operations.
The City reports the following major governmental funds:
The 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.
The Community Development Block Grant Fund accounts for Community Development Block Grants received
from the United States Department of Housing and Urban Development.
The Debt Service Fund accounts for the accumulation of resources for the payment of general long-term debt
principal, interest and related costs.
The 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.
' Additionally, the City reports the following fund types:
' 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. The City's
fiduciary fund types are as follows:
The Pension Trust Fund accounts for the activity of the retirement plan for employees of the City using the accrual
basis of accounting.
The 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.
1 Management has the ultimate responsibility for the appropriateness of the accounting policies and procedures used
by the City.
1 25
City of Rosemead, California
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies, Continued
Cash and investments: Cash includes amounts in demand and time deposits. Investments are reported in the
accompanying balance sheet at fair value, except for certain money market and investment contracts that are
reported at cost because they are not transferable and they have terms that are not affected by changes in market
interest rates.
Changes in fair value that occur during a fiscal year are recognized as income from property and investments
reported for that fiscal year. Income from property and investments includes interest earnings; changes in fair value;
any gains or losses realized upon the liquidation, maturity or sale of investments; property rentals and the sale of
City-owned property.
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 on a monthly basis, based on each fund's average cash and
investments balance, except for investment income associated with funds not legally required to receive pooled
investment income which has been assigned to and recorded as revenue of the General Fund, as provided by
California Government Code Section 53647.
Restricted cash and investments represent amounts that are restricted under the terms of debt agreements.
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.
Capital assets: Capital assets, which include land, buildings, equipment and infrastructure assets (e.g., roads,
bridges, traffic signals and similar items), are reported in the government-wide financial statements. Capital assets
are defined by the City as assets with an initial, individual cost of more than $500 and an estimated useful life in
excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of an asset or materially extend an asset's
useful life are not capitalized.
Costs associated with construction in progress are recorded in their respective fixed asset category upon approval by
the City Council.
26
I
1
1
1
II'
1
I of vacation time per year In order to participate in the Vacation Buy-Back Program, an employee must take at least
City of Rosemead, California
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies, Continued
Depreciation is charged to operations using the straight-line method based on the estimated useful life of an asset. .
The estimated useful lives of depreciable assets are as follows:
Years
Buildings
50
Improvements other than buildings
15
Machinery and equipment
7
Autos and trucks
5
Furniture and office equipment
7
Infrastructure:
Bridges, sewer, storm drains
50
Medians/monuments, sidewalks
40
Local/collector streets, plants and irrigation, traffic signals
30
Arterial streets, bus stop improvements
20
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 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 they have 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
40 consecutive hours of vacation at one time.
Deferred revenue: The deferred revenue reported in the City's financial statements represents money received
during the current or previous fiscal years that has not been earned by, or has been earned but is not available to,
the City as of the end of the fiscal year. These monies will be recognized as revenues in subsequent fiscal years
once the revenue has been earned.
Receivables and payables: Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (short-term interfund loans)
' or "advances to/from other funds" (long-term interfund loans).
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account
in the applicable governmental fund to indicate that they are not available for appropriation and are not expendable,
available financial resources.
All trade, service and taxI receivables are shown net of an allowance for uncollectibles.
i
i
I 27
J
t
1
City of Rosemead, California
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies, Continued
Long-term obligations: In the government-wide financial statements, long-term debt and other long-term obligations
are reported as liabilities in the statement of net assets. Bond premiums, discounts and issuance costs are deferred
and amortized over the life of the bonds using the effective-interest method. Bonds payable are reported net of the
applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the
term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums, discounts and issuance costs
during the current period. The face amount of debt issued is reported as other financing sources. Premiums received '
on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other
financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt
service expenditures. ,
Fund equity: In the fund financial statements, governmental funds report reservations of fund balances for amounts
that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. '
Designations of fund balances represent tentative management plans and are subject to change.
Note 2. Cash and Investments '
Cash resources of the individual funds are combined to form a pool of cash and investments. The City values all of its
cash and invested cash at fair value on a portfolio basis. The City manages its pooled idle cash and investments '
under a formal investment policy that is reviewed by the Investment Committee and adopted annually by the City
Council and that follows the guidelines of the California Government Code. Individual investments cannot be
identified with any single fund because the City may be required to liquidate its investments at any time to cover large ,
cash outlays required in excess of normal operating needs. Funds must request large outlays in advance in order for
the City Treasurer to have the funding available.
The carrying amount of the City's cash and investments at June 30, 2004 is as follows: '
Unrestricted cash and investments:
Cash
$ 2,451,129
'
Time certificates of deposit
6,100,000
Total unrestricted cash
8,551,129
'
Califomia State Local Agency Investment Fund
24,819,037
Investment in U.S. government securities
255
-Investments in external pool
114.683
'
Total unrestricted investments
24,933,975
Total unrestricted cash and investments
33,485,104
,
Restricted cash and investments, investment in corporate note
2,321,835
S 35,806,939
'
I
28
H
1
1
1
Il
CI
I to invest in the following instruments:
City of Rosemead, California
Notes to the Financial Statements
Note 2. Cash and Investments, Continued,
Cash and investments are reported in the accompanying financial statements as.
Govemmental activities
Cash and investments S 33,141,922
Restricted cash and investments 2,321,835
35,463,757
Statement of fidiciary net assets, cash and investments 343,182
$ 35,806,939
At June 30, 2004, the carrying amount of the City's cash deposits total $8,551,129, and the bank balance of the
City's cash deposits maintained in financial institutions is $8,632,445. The cash deposits are held by the City's agent
in the City's name. Of the $8,632,445 maintained in financial institutions, $655,485 is insured by the Federal Deposit
Insurance Corporation (FDIC) and the remainder is collateralized with securities held by the pledging financial
institution, or by its Trust Department or agent, but not in the City's name. The primary difference between the
carrying amount and the bank balance are deposits in transit and outstanding checks. In accordance with state
statues, the City maintains deposits at those depository institutions insured by the FDIC. The California Government
Code requires California banks and savings and loan associations to collateralize the deposits of governmental
entities by pledging government securities as collateral. The market value of pledged securities must equal at least
110% of those deposits. California law also allows financial institutions to secure the deposits of governmental
entities by pledging first trust deed mortgage notes having a collateral value of 150% of a corporation's total deposits.
The City is authorized by its investment policy, in accordance with Section 53601 of the California Government Code,
Securities issued or guaranteed by the federal government or its agencies.
I
Bankers' acceptances that are eligible for purchase by the Federal Reserve System.
Commercial paper, rated A-1/P-1, secured by an irrevocable line of credit or government securities.
Certificates of deposit with national and state licensed or chartered banks and federal or state savings and
loan associations.
Medium-term corporate notes, rated AAA or AA.
Money market funds. .
29
1
City of Rosemead, California
Notes to the Financial Statements
Note 2. Cash and Investments, Continued 0
In accordance with GASB Statement No. 3, Deposits with Financial Institutions, Investments (Including Repurchase
Agreements) and Reverse Repurchase Agreements, the City's investments are categorized, according to the
following criteria, to give an indication of the level of risk assumed by the City at year end:
Category 1 includes investments that are insured or registered or for which the securities are held by the City or its
agent in the City's name.
Category 2 includes uninsured and unregistered investments for which the securities are held by the
counterparty's Trust Department or agent in the City's name.
Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty
'
s name.
or by its Trust Department or agent, but not in the City
'
The following is the summary of investments as of June 30, 2004:
'
Category Fair
1 2 3 Uncategorized Value
Investment in pool,'California State Local
'
Agency Investment Fund (LAIF) $ $ $ - $ 24,819,037 $ 24,819,037
U.S. government securities - 255 255
Investments in external pool (see Note 8) - 114,683 114,683
'
Investment in corporate note 2,321,835 - 2,321,835
Total, investments $ $ 2,321,835 $ - $ 24,933,975 $ 27,255,810
'
Investments: State statues authorize the City to invest any available funds in securities issued or guaranteed by the
United States Treasury or agencies of the United States, bank certificates of deposit, bankers' acceptances,
negotiable certificates of deposit, the LAIF, commercial paper and bonds, and registered warrants or treasury notes
'
of the State of California and its agencies. An advisory board has been established to monitor LAIF's compliance with
regulations and investment alternatives established by the state.
'
'
, LAIF, which is managed by the State Treasurer. LAIF
The City participates in a voluntary external investment pool
has oversight provided by the Local Agency Investment Advisory Board. The Board consists of five members as
designated by state statute. The Chairman of the Board is the State Treasurer or his designated representative. The
'
fair value of the City's shares in the pool approximates the fair value of the position in the pool.
At June 30, 2004, the City's pooled investments in LAIF in the amount of $24,819,037 are not subject to custodial
'
credit risk categorization. The total estimated fair value invested by all public agencies in LAIF is $57,637,500,817. Of
that amount, 100% is invested in nonderivative financial products.
The balance in the City's investment in the external pool of $114,683 represents funds invested with a Life Insurance
'
Company in mutual funds for retired employees who are not participants in CalPERS (see Note 8). The mutual funds
invest in various debt and equity securities, similar to the types of investments at LAIF.
'
IL J
30 '
City.of Rosemead, California
' Notes to the Financial Statements
' Note 2. Cash and Investments, Continued
Cash and investments with fiscal agents: The City has monies held by a trustee pledged for the payment or
security of their outstanding tax allocation bonds. These are subject to the same risk category as the invested cash.
The California Government Code provides that these monies, in absence of specific statutory provisions governing
the issuance of bonds or certificates, may be invested in accordance with the ordinance, resolutions or indentures
specifying the types of investments its trustees or fiscal agents may make. These ordinances, resolutions or
indentures are generally more restrictive than the City's general investment policy. At June 30, 2004, the monies held
by the trustee were invested in a taxable 5.8% corporate note payable that matures on October 1, 2023.
Note 3. Receivables
Receivables as of June 30, 2004 consist of the following:
' Community
Development Debt Capital Other
General Block Grant Service Projects Nonmajor
' Fund - Fund Fund Fund Funds Total
Othertaxes $ 1,188,634 $ - $ $ $ - $ 1,188,634
' Due from other
governmental agencies 97,631 471,613 76,000 208,438 853,682
Accrued interest 120,769 - 32,835 24,773 40 178,417
Due from local utility
companies (A) 353,616 353,616
Other 119,547 75 - - 130,094 249,716
$ 1,880,197 $ 471,688 $ 32,835 $ 100,773 $ 338,572 $ 2,824,065
" During the fiscal year ended June 30, 1987, the Commission approved a reimbursement agreement with a local
utility company, advancing the utility company funds required to install a water line and a water main extension.
The total original amount advanced was $550,200. The Commission then contributed the receivable to the City
at the present value amount of $456,766. The City is to collect this receivable from the utility company in 40
annual noninterest-bearing installments of $12,345, with the final installment due June 30, 2027.
I
' 31
City of Rosemead, California
Notes to the Financial Statements
Note 3. Receivables, Continued 0
During the fiscal year ended June 30, 1990, the Commission approved a similar reimbursement agreement with
a local utility company, advancing the utility company funds required to replace various water mains. The total
amounts advanced under this agreement were $334,705 during the fiscal year ended June 30, 1990 and
$29,372 during the fiscal year ended June 30, 1991. The Commission then contributed the receivables to the
City at the present value amount of $163,340 and $17,744, respectively. The City is to collect the receivables
a
from the utility company in 15 annual noninterest-bearing installments of $21,097 and $1,958, with the final
installments due from June 30, 2004 to June 30, 2006.
During the fiscal year ended June 30, 1991, the Commission approved an additional reimbursement agreement
with a local utility company, advancing the utility company funds required to install a water main and fire service
improvements. The total amount advanced was $315,600. The Commission then contributed the receivable to
the City at the present value amount of $212,427. The City is to collect this receivable from the utility company in
'
15 annual noninterest-bearing installments of $20,773, with the final installment due June 30, 2006.
Receivables from local utility companies as of June 30, 2004 consist of the following:
,
Agreement Year, June 30:
'
1987
$ 283,936
1990
1991
28,168
41,512
,
$ 353,616
1
I
32
City of Rosemead, California
Notes to the Financial Statements
1 Note 4. Capital Assets and Accounting Change
Capital asset activity was as follows for the year ended June 30, 2004:
'
Retroactive
Balance at Infrastructure
Balance at
'
June 30, 2003 Implementation Increases
Decreases June 30, 2004
Governmental activities:
Capital assets not being
'
depreciated:
Land
$ 3,018,234 $ $
$ 65,000 $ 2,953,234
Construction in progress
791,412 - 435,590
- 1,227,002
'
Total capital assets not
being depreciated
3,809,646 435,590
65,000 4,180,236
Capital assets being depreciated:
'
Buildings and improvements
21,668,159
21,668,159
Improvements other than
building
868,483
-
-
868,483
'
Machinery and equipment
736,681
15,179
55,296
696,564
Autos and trucks
345,036
-
14,202
330,834
Furniture and office equipment
2,098,471
-
104,292
-
2,202,763
Infrastructure
59,793
36,263,422
771,337
490,749
36,603,803
Total capital assets
being depreciated
25,776,623
36,263,422
890,808
560,247
62,370,606
'
Less accumulated depreciation for: -
Buildings and improvements
3,620,495
-
501,450
_
4,121,945
Improvements other than
building
867,124
1,221
868,345
Machinery and equipment
568,884
73,697
2,121
640,460
'
Autos and trucks
247,662
31,688
14,202
265,148
Furniture and office equipment
1,554,213
158;315
1,712,528
Infrastructure
29,872
16,042,844
1,064,795
-
17,137,511
Total accumulated
depreciation
6,888,250
16,042,844
1,831,166
16,323
24,745,937
Total capital assets being
depreciated, net
18,888,373
20,220,578
(940,358)
543,924
37,624,669
'
Governmental activities
capital assets, net
$ 22.698 019
$ 20.220.578
$ (504,768)
$ 608,924 $
41,804,905
'
Infrastructure assets include projects
that were in progress as of June
30, 2004. The
estimated cost to
complete
these projects as of June 30, 2004 is
approximately
$1,411,823.
1 33
City of Rosemead, California
Notes to the Financial Statements
Note 4. Capital Assets and Accounting Change, Continued
Effective July 1, 2002 (i.e, the fiscal year ended June 30, 2003), the City adopted Governmental Accounting
Standards Board (GASB) Statement No. 34, and related pronouncements. In accordance with the reporting
requirements of GASB Statement No. 34, the City was required to prospectively report all of its major general
infrastructure asset additions in the statement of net assets, and retroactively report general infrastructure prior to the
fiscal year beginning after June 15, 2006. However, the City decided to report its major general infrastructure assets
effective July 1, 2003. The effect of reporting all of its major general infrastructure assets was to increase the City's
fund balance for the governmental funds as of July 1, 2003 by $20,220,578, net of accumulated depreciation of
$16,042,844.
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government
Parks and recreation
Public safety
Community service
Total depreciation expense
Note 5. Long-term Debt
$ 1,744,455
74,149
10,086
2,476
$ 1,831,166
The folowing is a summary of changes in the principal balance of long-term debt for the year ended June 30, 2004:
Principal
Balance at
Governmental activities:
Tax allocation bonds,
series 1993A
Compensated
absences
Principal ,
Balance at Due Within
June 30, 2003 Additions
Reductions
June 30, 2004 One Year
'
$ 33,830,000 $
$ 445,000
$ 33,385,000 $ 465,000
,
295,557 83,234
76,496
302,295 -
$ 34,125,557 $ 83,234
$ 521,496
$ 33,687,295 $ 465,000
'
The City records expenditures related to compensated absences through the City's General Fund.
Tax allocation bonds, Series 1993A: In November 1993, the Commission issued tax allocation bonds in the amount
of $34,275,000 (Series 1993A) to finance a portion of the cost of the redevelopment area known as Project Area
No. 1. The bonds bear interest ranging from 4.6% to 5.6%. The bonds mature before October 1, 2033. The bond
issue reallocated $6,813,850 of proceeds from the 1991 bond issue deposited in the Low-Moderate Income Housing
Set-Aside Fund in October 1991. The reallocation had the effect of satisfying the present value effect of the $423,574
borrowed from the Educational Revenue Augmentation Fund (ERAF) in fiscal year ended June 30, 1993 and
satisfying the present value effect of the set-aside requirements as follows: $812,342 for fiscal year ended June 30,
1992, $847,147 for fiscal year ended June 30, 1993 and $469,142 for each of the fiscal years ended/ending June 30,
1997 through June 30, 2022. Additional Low-Moderate Income Housing Set-Aside commitments are addressed in
Note 9.
34
1
City of Rosemead, California
0
1
1
1
1
1.
1
Notes to the Financial Statements
Note 5. Long-term Debt, Continued
The Tax Reform Act instituted certain arbitrage restrictions with respect to the issuance of tax-exempt bonds.
Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the
interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if
applicable rebates are not paid to the federal government at least every five years.
During the current year, the City performed calculations of excess investment earnings on various bonds and
financings in accordance with arbitrage regulations. The City has determined that no arbitrage rebate liability exists
as of June 30, 2004.
At June 30, 2004, debt service requirements to maturity for governmental activities long-term debt (excluding
compensated absences) for which minimum annual de
bt service payments have not been established are as follows:
Long-term Debt
Fiscal Year Ending June 30,
Principal
Interest
2005
$ 465,000
$ 1,836,765 _
2006
490,000
1,812,168
2007
515,000
1,785,909
2008
545,000
1,757,948
2009
570,000
1,728,400
2010-2014
3,340,000
8,139,370
2015-2019
4,365,000
7,092,913
2020-2024
5,715,000
5,701,500
2025-2029
7,505,000
3,862,460
2030-2034
9,875,000
. 1,442,700
$ 33,385,000
$ 35,160,133
35
City of Rosemead, California
Notes to the Financial Statements '
Note 6. Interfund Transactions
,
Interfund receivables and payables balances as of June 30, 2004 were:
,
Interfund Interfund
Recevables Payables
Governmental activities:
'
Major governmental activities:
General
$ 241,447 $
Special Revenue Fund, Community Development Block Grant
427 184,146
'
Nonmajor governmental funds:
Special Revenue Funds:
'
Traffic Safety 51,873
Local Transportation - 20,255
Capital Projects Funds, Rosemead Housing Development 14,400 -
,
$ 256,274 S 256,274
There were no outstanding advances to and from other funds as of June 30, 2004. Interfund balances result from the
'
lag time between the dates that interfund goods and services are provided, or reimbursable expenditures occur,
and payments between funds are made.
,
Interfund transfers for the year ended June 30, 2004 consisted of the following:
Transfers from Transfers to Amount
General Fund Nonmajor other governmental funds $ 58,241
'
Capital Projects Fund General Fund 1,326,220
Debt Service Fund 2,169,932
'
Nonmajor other governmental funds General Fund 351,600
$ 3.905,993
'
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that
statute or budget requires to expend them, and (2) move receipts collected in debt service to other funds after debt
service requirements have been met.
1
36 1
City of Rosemead, California
1 Notes to the Financial Statements
I Note 7. Risk Management
' Self-insurance pool pursuant to joint powers agreement: The City is a member of the California Joint Powers
Insurance Authority (Authority). The Authority is composed of 106 California public entities and is organized under a
joint powers agreement pursuant to California Government Code 5600 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 member's 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.
' The City also participates in the workers' compensation pool and administered by the Authority. Pool deposits and
retrospective adjustments are valued in a manner similar to the General Liability pool. The City is charged for the first
$50,000 of each claim. Costs are pooled above that level to $50,000. Costs from $50,001 to $100,000 per claim are
pooled based on the member's'losses under its retention level. Costs between $100,001 and $2,000,000 per claim
are pooled based on payroll. Costs between $2,000,000 and $50,000,000 are paid by excess insurance purchased
by the Authority. Costs in excess of $50,000,000 are pooled by the members based on payroll.
' Dudng the past three fiscal (claims) 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.
' Other coverage: The City has also purchased property protection and employee dishonesty insurance from a
casualty insurance company. However, the City does not carry insurance coverage for natural disasters. There is a
' $1,000 per loss deductible. Premiums for the coverage are paid annually and are not subject to retroactive
adjustments.
1 Note 8. Retirement Plan
Defined contribution pension plan: The City had a defined contribution pension plan that covered substantially all
' retired employees which 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
1
I
37
City of Rosemead, California
Notes to the Financial Statements
Note 8. Retirement Plan, Continued
California Public Employee Retirement System (CalPERS). The value of the external investment pool for retired
employees is $114,683 as of June 30, 2004 (see Note 2).
Defined benefit pension plan:
.Plan description: The City contributes to the CalPERS, an agent multiple-employer public employee defined benefit
pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments and death
benefits to plan members and beneficiaries. CaIPERS acts as a common investment and administrative agent for
participating public employers within the state of California. Benefit provisions, as well as other requirements, are
established by state statutes within the Public Employees' Retirement Law. The City selects optional benefit
provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance.
CalPERS issues a publicly available financial report that includes financial statements and required supplementary
information. That report may be obtained from their executive office at 400 P Street, Sacramento, California 95814.
Funding policy: Participants are required to contribute 7% of their annual covered salary. The City makes the
contributions required of City employees on their behalf and for their accounts. The City is required to contribute at an
actuarially determined rate; the current rate is 12.72% of annual covered payroll for miscellaneous employees. The
contribution requirements of plan members and the City, are established and may be amended by CalPERS.
Annual pension cost: For the fiscal year ended June 30, 2004, the City's annual pension cost of $276,002 for
CalPERS was equal to the City's required and actual contributions. The required contribution was determined as part
of the latest actuarial valuation, June 30, 2002, using the entry age actuarial cost method, with the contributions
determined as a percent of pay. The actuarial assumptions included (a) 8.25% investment rate of return (net of
administrative expenses) (b) projected salary increases that vary by duration of service ranging from 3.75% to
14.20% and (c) 3.75% cost-of-living adjustment. Both (a) and (b) include an inflation component of 3.50%' The
actuarial value of CalPERS' assets was determined using techniques that smooth the effects of short-term volatility in
the market value of investments over a three-year period. CalPERS' unfunded actuarial accrued liability is being
amortized as a level percentage of projected payroll on a closed basis. The average remaining amortization period at
June 30, 2002 was 15 years.
Three-year trend information for CalPERS:
Annual Percentage
Pension Cost of APC Net Pension
Fiscal Years Ended June 30, (APC) Contributed Obligation
2002 $ 213,547 100
2003 260,088 100
2004 276,002 100
38
I~
1
City of Rosemead, California
Notes to the Financial Statements
Note 8. Retirement Plan, Continued
Required supplementary information, funded status of plan:
Entry Age Unfunded/
' Normal Acturarial (Over- Annual UAAL*
-Valuation Accrued Value of funded) Funded Covered as a % of
Date Liability Assets Liability Ratio Payroll Payroll
June 30, 2000 $ 51098,416 $ 4,929,515 $ 168,901 96.7 $ 1,518,687 11.1
June 30, 2001 5,559,070 5,351,876 207,194 96.3 1,618,110 12.8
' June 30, 2002 6,637,658 5,376,394 1,261,264 81.0 1,896,978 66.5
Unfunded actuarial accrued liability
' Supplemental retirement plan:
' Plan description: In addition,,effective July 1, 2000, the City entered into an agreement with Phase 11 Systems
whereby the City will contribute to a supplemental employee pension plan (the plan II), a single-employer defined
benefit pension plan administered by Phase 11 Systems. The plan II will provide a supplemental retirement benefit of
1% for each year of service to plan members and beneficiaries. Employees with at least 20 years of service and City
' Council members with at least 12 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.
Phase II Systems issues a publicly available financial report that includes financial statements and required
supplementary information for the plan 11. That report maybe obtained by writing to Phase 11 Systems, 3961
' MacArthur Boulevard, Suite 200, Newport Beach, California 92660, or by calling 1-800-540-6369.
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 current rate is 10.83% of annual covered payroll. The City
expects to fund the initial actuarial calculated accrued benefit over the first few years of the plan II.
' Annual pension cost: The required contribution is determined as part of the latest actuarial valuation, June 30,
2002, 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.
' Three-year trend information for Phase II Systems:
Annual Percentage
' Pension Cost, of APC Net Pension
Fiscal Years Ended June 30, (APC) Contributed Obligation
' 2002 $ - 100 $
2003 207,464 100
2004 196,797 100
' 39
City of Rosemead, California
Notes to the Financial Statements
Note 8. Retirement Plan, Continued
Required supplementary information, funded status of plan
Entry Age
Unfunded/
Normal
Acturarial
(Over-
Annual
UAAL*
Valuation
Accrued
Value of
funded)
Funded
Covered
as a % of
Date
Liability
Assets
Liability
Ratio
Payroll
Payroll
June 30, 2002
$ 2,225,016
$ 301,553
$ 1,923,463
13.6
$ 2,211,122
87.0
June 30, 2004
2,582,633
828,182
1,754,451
32.1
2,037,432
86.1
Postemployment healthcare plan: 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 CalPERS 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, 2004. Currently, expenditures are
recorded as incurred. There were no expenditures incurred during the year ended June 30, 2004.
Note 9. Commitments and Contingencies
Low-moderate Income Housing Set-aside Fund: 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, 2004, the accumulated set-aside amount not yet funded was approximately $4,947,000. As required
by law, the Commission devised a plan to fund the accumulating amount.
To help fund the completion of the Senior Citizen Housing project construction, the Capital Projects Fund transferred
an additional $849,863 to the Low-Moderate Income Housing Set-Aside Fund during the fiscal year ended June 30,
2002, over and above the 20% requirement of $299,993, and an additional $1,279,548 to the Low-Moderate Income
Housing Set-aside Fund during the fiscal year ended June 30, 2003, over and above the 20% requirement of
$290,868. These additional amounts, which total $2,129,411, are considered an advance on future set-aside
requirements and will be deducted from future transfers for the set-aside over future years. During the fiscal year
ended June 30, 2004, the 20% requirement of $394,533 was funded using this advance. As of June 30, 2004, the
remaining advance was $1,734,878.
Litigation: The City is a member of the LA County.Liability Trust Fund (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.
40
1
City of Rosemead, California
Notes to the Financial Statements
Note 9. Commitments and Contingencies, Continued ,
In 1998 the County of Los Angeles lost a litigation matter that resulted in a 825,000,000 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.
B Advance agreement: In February 1995, the Commission approved an agreement with a local utility company to
advance the utility company $117,600 required to install water distribution mains within the Commission
redevelopment area. The agreement was put on hold by the Commission and, as of October 8, 2004, the agreement
1 remains on hold.
Note 10. Pronouncements Issued but Not Yet Effective
The GASB has issued several pronouncements prior to June 30, 2004, that have effective dates that may impact
future financial presentations.
' Management has not currently determined what, if any, impact implementation of the following statements may have
' on the financial statement of the City.
• GASB Statement Number 40, Deposit and Investment Risk Disclosures
' • GASB Statement Number 42, Accounting and Financial Reporting for Impairment of Capital Assets and
Insurance Recoveries
' GASB Statement Number 45, Accounting and Financial Reporting by Employers for Post-employment
Benefits Other Than Pensions
t Additionally, the GASB issued Statement Number 44, Economic Condition Reporting: The Statistical Section, which
amends portions of previous guidance related to the preparation of a statistical section when presented as a required
part of a comprehensive annual financial report (CAFR).
1
I
41
THIS PAGE INTENTIONALLY LEFT BLANK
42
1
1
d
Required Supplementary Information
43
City of Rosemead, California
Schedule of Revenues, Expenditures and Changes in Fund Balances-
Budgetary Comparison-General Fund
Year Ended June 30, 2004
Variance from
Budgeted Amounts Final Budget-
Original Final Actual Amounts Over (Under)
Fund balance, July 1, 2003 $ (100,000) $ (81,170) $ 19,650,929 $ 19,732,099
Resources (inflows)
Property taxes and special assessments
1,500
1,500
2,200
700
Other taxes
4,685,000
4,685,000
5,099,643
414,643
Intergovernmental
4,663,280
4,663,280
4,346,437
(316,843)
Licenses and permits
1,045,000
1,045,000
1,508,009
463,009
Charges for services
784,610
784,610
581,763
(202,847)
Fines, forfeitures and penalties
322,000
322,000
331,369
9,369
Use of money and property
933,650
933,650
510,021
(423,629)
Other
12,500
12,500
37
(12,463)
Transfer from other funds
1,692,220
1,692,220
1,677,820
(14,400)
Amount available for
appropriations
14,139,760
14,139,760
14,057,299
(82,461)
Charges to appropriations (outflows), current:
General government:
City council
290,510
290,510
264,505
(26,005)
City administration
792,370
792,370
658,645
(133,725)
City clerk
148,990
148,990
128,790
(20,200)
Finance
475,450
475,450
384,927
(90,523)
City treasurer
300
300
(300)
City attorney
163,660
579,900
159,720
(420,180)
Buildings
574,500
163,660
561,275
397,615
Community promotions
300,800
319,630
331,002
11,372
City garage
28,300
36,390
44,836
8,446
Appropriation reserves
100,000
-
-
-
Public safety:
Law enforcement
5,078,340
5,068,340
4,829,510
(238,830)
Parking control
209,940
201,850
170,058
(31,792)
Crossing guards
155,050
155,050
123,901
(31,149)
Animal regulations
86,000
86,000
79,465
(6,535)
Emergency services
7,700
7,700
1,822
(5,878)
See Note to Required Supplementary Information.
44
I
City of Rosemead, California
1 Schedule of Revenues, Expenditures and Changes in Fund Balances-
Budgetary Comparison-General Fund, Continued
Year Ended June 30, 2004
'
Budgeted Amounts
Original 'Final
Actual Amounts
Variance from
Final Budget-
Over (Under)
Public works:
'
Street and highways
S 99,000
S 99,000
$ 182,089
$ 83,089
Traffic administration
44,390
44,390
41,214
(3,176)
'
Traffic signals
200,000
200,000
4.655
(195,345)
Public health:
Solid waste
66,590
70,490
65,583
(4,907)
Public recreation:
Parks administration
320,780
. 320,780
290,997
(29,783)
Parks
1,521,450
11521,450
1,384,663
(136,787)
Recreation
850,300
850,300
859,350
9,050
Aquatics
375,610
375,610
349,171
(26,439)
Fee and charge
278,450
292,900
308,949
16,049
'
Dinsmoor heritage house
6,500
10,500
8,106
(2,394)
Community services:
Planning
411,700
415,250
416,030
780
Building regulation
724,300
964,700
992,363
27,663
'
Engineering
313,600
332,900
364,038
31,138
Community improvements
187,690
242,940
231,940
(11,000)
Capital outlay
20,000
20,000
5,261
(14,739)
'
Transfer to other funds
58,241
58,241
Total charges to appropriations
13,832,270
14,087,350
13,301,106
(786,244)
Net change in fund balance
307,490
52,410
756,193
703,783
'
Fund balance, June 30, 2004
$ 207,490
S (28,760)
$ 20,407,122
$ 20,435,882
I See Note to Required Supplementary Information.
I
t
45
I
City of Rosemead, California
Schedule of Revenues, Expenditures and Changes in Fund Balances-
Budgetary Comparison-Community Development Block Grant Fund
Year Ended June 30, 2004
Variance from
Budgeted Amounts Final Budget-
Original Final Actual Amounts Over (Under)
Fund balance, July 1, 2003
Resources (inflows):
Intergovemmental
. Amount available for appropriations
Charges to appropriations (outflows), current:
Public works
Community services
Total charges to appropriations
Net change in fund balances
Fund balance, June 30, 2004
$ - $ - $ - . $
3,035,659 3,035,659 1,660,429 (1,375,230)
3,035,659 3,035,659 1,660,429 (1,375,230)
1,519,000
1,357,400
412,027 (945,373)
1,526,659
1,688,259
1,248,402 (439,857)
3,045,659
3,045,659
1,660,429 (1,385,230)
(10,000)
(10,000)
- 10,000
$ (10000)
$ (10,000) $
- $ 10,000
See Note to Required Supplementary Information.
46
1
1
1
1
1
-1
1
1
1
1
1
1
U
U
I
1
1
1
1
City of Rosemead, California
t Note to Required Supplementary Information
I 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 government's manager so that a budget may be prepared. Before the first Thursday of June, the proposed
budget is presented to the government's 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. Transfers of
appropriations between departments within a fund 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 department 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.
I
1
1.
I
47
THIS PAGE INTENTIONALLY LEFT BLANK
48
1
1
Supplemental Schedules
1
' 49
City of Rosemead, California
Combining Balance Sheet-Nonmajor Governmental Funds-Special Revenue Funds
June 30, 2004
Air Quality
Traffic
State
Management
Local
Public
Assets
Safety
Gas Tax
District
Transportation
Transportation
Cash and investments
$ -
$ 837,765
$ 277,852
$ -
$ 2,933,455
Receivables
51,873
8,000
30,661
55,563
138,985
Prepaid items
-
-
-
-
-
'Due from other funds
-
-
-
-
-
Total assets
$ 51,873
$ 845,765
$ 308,513
$ 55,563
S 3,072,440
Liabilities and Fund Balances
Liabilities
Accounts payable and
accrued liabilities
Due to other funds
Total liabilities
Fund Balances
Reserved for:
Low-moderate income housing
Prepaid items
Unreserved, designated for
redevelopment projects
Unreserved, undesignated
Special revenue funds
Total fund balances
Total liabilities and
fund balances
$ - $ 74,822 $ 26,052 $ 250 $ 114,488
51,873 - - 20,255 -
51,873 74,822 26,052 20,505 114,488
770,943
282,461
35,058
2,957,952
- 770,943
282,461
35,058
2,957,952
$ 51,873 $ 845,765
$ 308,513 $
55,563
$ 3,072,440
50
1
1
1
t
I
Low-Moderate Rosemead
Income
Housing -
Federal
Street
Narcotics
Housing
Development
Highway
Lighting
Seizure
Set-Aside
Corporation
Grant
Total
S 782,456
$ 13,028
$ 870,540
$ 636,119
$ 186,324 S
6,537,539
38,792
-
40
14,658
-
338,572
-
3,000
3,000
-
_
-
14,400
-
14,400
$ 821,248
$ 13,028
$ 870,580
$ 668,177
$ 186.324 $
6,893,511
$ 25,258 $ 13,028 $ , $ 39,817 $ 880 $ 294,595
- - 72,128
25,258 13,028 39,817 880 366,723
870,580 870,580
- 3,000 3,000
625,360 625,360
795,990 - 185,444 5,021,848
795.990 870,580 628,360 185,444 6,526,788
$ 821,248 $ 13,028 $ 870.580 S 668,177 $ 186,324 $ 6,893,511
c
51
1
City of Rosemead, California
Combining Statement of Revenues, Expenditures and Changes in Fu
nd Balances-
Nonmajor
Governmental Funds-Special Revenue Funds
Year Ended June 30, 2004
'
'
Air Quality
Traffic
State
Management
Local
Safety
Gas Tax
District
Transportation
'
Revenues:
Property taxes and special assessments
$ -
$ -
$ -
$ -
Intergovernmental
-
1,033,766
78,201
55,564
'
Fines, forfeitures and penalties
258,521
-
-
-
Use of money and property
-
111,664
4,362
59
Total revenues
258,521
1,145,430
82,563
55,623
'
Expenditures:
Current:
General government
Public safety
Public works
Community services
Capital outlay
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Operating transfers:
From other funds
(To) other funds
Total other financing sources
Net change in fund balances
Fund balance, beginning
Fund balance, ending
258,521 - - -
- 777,334 86,911 52,575
- 6,732 -
258,521 777,334 93,643 52,575
- 368,096 (11,080) 3,048
368,096 (11,080) 3,048
402,847 293,541 32,010
$ $ 770,943 $ 282,461 $ 35,058
52
1
i'
Low-Moderate
Rosemead
Income
Housing
Federal
Public
Street
Narcotics
Housing
Development
Highway
Transportation
Lighting
Seizure
Set-Aside
Corporation
Grant
Total
$ -
$ 562,604
$
$
$
$ -
$ 562,604
1,405,702
_
_
560
2,573,793
-
258,521
39,918
488,153
-
644,156
'
1,445,620
562,604
=
488.153
560
4,039,074
'
_
-
2,323
259,571
261,894
275
562
58,241
-
-
592,324
859,720
,
=
1,776,540
-
6,732
'
859,720
275,562
58,241
2,323
259,571
-
2,637,490
585,900
287 042
(58 241)
(2,323)
228,582
560
1,401,584
-
-
58,241
=
-
-
58,241
'
(351 600)
(351,600)
-
-
58,241
(351.600)
-
(293,359)
'
585,900
287,042
-
(2,323)
(123,018)
560
1,108,225
2,372,052
508,948
872,903
751,378
184,884
5,418,563
S 2,957,952
S 795,990
S
S 870,580
S 628,360
S 185,444
6,526,788
'
1
,
'
53
City of Rosemead, California
Combining Schedule of Revenues and Expenditures-Budget and Actual-
Nonmajor Governmental Funds-Special Revenue Funds
Year Ended June 30, 2004
Variance from
Final Budget-
Budget
Actual
Over (Under)
Traffic Safety
Total revenues
$ -
S 258,521
S 258,521
Expenditures:
Public safety
Law enforcement
290,000
258,521
(31,479)
Total expenditures
290,000
258,521
(31,479)
Net change in fund balance
(290,000)
-
290,000
State Gas Tax
Total revenues
998,990
1,145,430
146,440
Expenditures:
Public safety
Narcotics forfeiture and seizure _
262
262
Public works
Streets and highways
490,500
213,567
(276,933)
Traffic signal maintenance
150,000
119,662
(30,338)
Trees and parkways
265,500
244,808
(20,692)
Signs and striping
173,850
177,366
3,516
Public transit
-
14,169
14,169
Community service
Engineering
7,500
7,500
-
Total expenditures
1,087,350
777,334
(310,016)
Net-change in fund balance
(88,360)
368,096
456,456
Air Quality Management District
Total revenues
60,810
82,563
21,753
Expenditures:
Public works
Public transit
269,500
86,911
(182,589)
Community service
Planning
7,000
6,732
(268)
Total expenditures
276,500
93,643
(182,857)
Net change in fund balance
(215,690)
(11,080)
204,610
Local Transportation
Total revenues
55,190
55,623
433
Expenditures:
Public works
Street and highways
73,200
52,575
(20,(325)
Total expenditures
73,200
52,575
(20,625)
Net change in fund balance
(18,010)
3,048
21,058
54
I
P
1
1
1
I
1
City of Rosemead, California
Combining Schedule of Revenues and Expenditures-Budget and Actual-
Nonmajor Governmental Funds, Continued
Year Ended June 30, 2004
Variance from
Final Budget-
Budget
Actual
Over (Under)
Public Transportation
Total revenues -
$ 1,299,830 $
1,445.620
$ 145,790
Expenditures:
General government
City garage
140
140
Public works
Street and highways
680,000
95,461
(584,539)
Public transit
825,420
764,119
(61,301)
Capital outlay
Public transit
29.300
-
(29,300)
Total expenditures
1,534,720 .
859,720
(675,000)
Net change in fund balance
(234 890)
585,900
820,790
Street Lighting
Total revenues
Expenditures:
Public safety
Street lighting
Total expenditures
Net change in fund balance
Narcotics Seizure
Total revenues
Expenditures:
Public safety
Narcotics
Public works
Traffic signal maintenance
Total expenditures
Net operating transfers .
Net change in fund balance
Low-Moderate Income Housing Set-Aside
'
Total revenues
Expenditures:
General government
'
Administration
Total expenditures
Net change in fund balance
I
55
400,000 562,604 162,604
386,000
275,562
(110,438)
386,000
275,562
(110,438)
14,000
287,042
273,042
61,450 58,207 (3,243)
- 34 34
61,450 58,241 (3,209)
61,450 58,241 (3,209)
2,323
2,323
2,323
2,323
(2,323)
(2,323)
City of Rosemead, California
Combining Schedule of Revenues and Expenditures-Budget and Actual-
Nonmajor Governmental Funds, Continued
Year Ended June 30, 2004
Variance from
Final Budget-
Actual Over (Under)
Rosemead Housing Development Corporation
Total revenues
Expenditures:
General government
Administration
Special projects
Total expenditures
Net operating transfers
Net change in fund balance
Federal Highway Grants
Total revenues
Expenditures:
Public works
Street and highways
Total expenditures
Net change in fund balance
Totals
Total revenues
Expenditures:
Total expenditures
Net operating transfers
Net change in fund balance
S 413,400 $ 488,153 S 74,753
15,900
207,823
191,923
577,840
51,748
(526,092)
593,740
259,571
(334,169)
34,000
(351,600)
(385,600)
(146,340)
(123,018)
23,322
9,045,700 560 (9,045,140)
9,045,700 (9,045,700)
9,045,700 (9,045,700) '
- 560 560
12,273,920 4,039,074 (8,234,846) '
(13,348,660) (2,637,490) (10,711,170) ,
95,450 (293,359) (388,809)
S (979 290) $ 1,108,225 $ 2,087,515
1
I
56 1
1
City of Rosemead, California
Statement of Changes in Assets and Liabilities-Agency Fund
Year Ended June 30, 2004
Balance
July 1 2003 Additions
alance
Deductions June 30, 2004
Refundable Deposits
'
Assets, cash $ 188,697 56,432
(16.630) S 228,499
Liabilities, refundable deposits S 188 697 6,432
(16 630) S 228,499
1
e
57
THIS PAGE INTENTIONALLY LEFT BLANK
58
1
1
1
Notes: The City of Rosemead does not
have revenue bonds; therefore, the
Revenue Bond Coverage - Last
Ten Fiscal Years schedule is not
included.
S
T
A
i
I
8
T
I
C
A
L
I
I
I
1
1
THIS PAGE INTENTIONALLY LEFT BLANK
59
CITY OF ROSEMEAD, CALIFORNIA
GOVERNMENTAL-WIDE EXPENDITURES BY FUNCTION (1)
Last Two Fiscal Years
Fiscal
General
Public
Year
Government
Safety
2002-03
$ 3,211,759
$ 6,027,827
2003-04
2,972,310
5,797,080
Highways and Public
Streets Health
$ 2,508,194
2,058,252
.p IV,JIV
65,583
(1) All governmental fund types, including General, Speical Revenue, Debt Service, and
Capital Projects funds. Operating Transfers have been exluded from all years.
Public
Recreation
$ 2,991,866
3,201,236
60
1
1
1
1
1
Community
Interest on
Depreciation
Services
Long-term Debt
Expense
$ 3,230,193
$ 1,875,973
$ 552,358
3,121,996
1,854,185
1,831,166
Total
$ 20,475,148
20,901,808
61
CITY OF ROSEMEAD, CALIFORNIA
GOVERNMENT-WIDE REVENUES BY SOURCE (1)
Last Two Fiscal Years
Taxes
Fiscal
Property
Special
Transient
Other
Year
Tax
Assessments
Occupancy Taxes
Taxes
2002-03
$ 3,561,019
$ 3,296,371
$ 968,131 $
125,823
2003-04
3,941,383
2,865,887
1,081,174
149,737
(1) All governmental fund types, including General, Special Revenue, Debt Service, and
Capital Projects funds. Operating Transfers have been excluded from all years.
Income from
Property and
Investments
$ 680,401
187,278
62
1
1
t
' Program Revenues
' Charges for Operating Grants
Services and Contribution
$ 6,812,460 $ 6,253,601
' 6,686,442 6,136,054
a
0
a
Total
21,697,806
21,047,955
63
CITY OF ROSEMEAD, CALIFORNIA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
ALL GOVERNMENTAL FUND TYPES
Last Ten Fiscal Years
Fiscal
General
Public
Year
Government
Safety
1994-95
$ 1,918,204
$ 4,666,871
1995-96
1,946,848
4,733,426
1996-97
2,053,607
4,922,197
1997-98
1,800,080
4,655,943
1998-99
1,948,412
5,259,501
1999-00
2,200,867
5,069,851
2000-01
3,023,022
5,646,028
Public Public Public
Works Health Recreation
$ 4,400,953
3,788,669
3,349,572
3,287,310
8,524,188
4,306,657
5,438,487
$ 39,852 $ 1,901,397
44,863
45,966
45,381
43,844
59,293
1,869,684
2,144,066
1,906,179
2,030,237
2,242,859
2,372,023
2001-02 9,697,571 5,612,195 8,013,192 55,354
2002-03 3,281,690 6,027,827 3,311,963 76,978
2003-04 2,965,572 5,797,080 3,144,358 65,583
(1) All governmental fund types, including General, Speical Revenue, Debt Service, and
Capital Projects funds. Operating Transfers have been exiuded from all years.
2,615,368
2,991,866
3,201,236
64
1
1
1
1
1
1
1
1
1
1
Community
Capital
Debt
Services
Outlay
Service
Other Total
$ 2,090,216
$ 1,713,742
$ 2,279,153
$2,385,954 $ 21,396,342
1,867,352
119,184
2,271,154
180,000 16,821,180
1,976,965
47,683
2,271,333
- 16,811,389
2,060,701
56,182
2,279,054
- 16,090,830
2,085,868
419,087
2,270,187
- 22,581,324
1,516,717
202,060
2,272,258
- 17,811,269
1,901,124
120,645
2,267,847
- 20,828,469
2,247,780
52,336
2,272,057
- 30,565,853
3,277,529
1,253,202
2,306,073
- 22,527,228
3,259,505
26,639
2,304,747
- 20,764,720
$35
$30
$25
$20
$15
$10
$5
$0
Millions
1996-99 1999-2000 2000-01 2001-02 2002-03 2003-04
(General Govt. OPublic Safety ®Public Works MPublic Recr. MComm. Serv.
]Debt Services NMisc.
65
CITY OF ROSEMEAD, CALIFORNIA
GENERAL REVENUES BY SOURCE (1)
ALL GOVERNMENTAL FUND TYPES
Last Ten Fiscal Years,
Fiscal
Year
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
(1)
Property
Special
Other
Inter-
Licenses
Tax
Assessments
Taxes
governmental
and Permits
$ 3,411,909
$ 386,814
$ 3,907,616
$ 6,733,543
$ 699,234
2,671,909
365,184
3,664,031
6,155,519
760,191
2,845,775
382,609
3,952,511
7,532,960
760,037
2,770,865
418,502
4,134,533
6,758,226
739,162
2,870,290
367,277
3,999,539
10,120,540
964,567
2,990,564
428,609
4,266,791
7,359,001
917,350
2,945,877
424,580
4,629,225
9,329,239
797,493
3,197,754
456,328
4,417,537
11,889,649
996,395
3,105,416
455,604
5,216,294
9,543,023
1,243,995
3,376,579
564,804
5,099,643
8,826,909
1,508,009
All governmental fund t
ypes, including General, Speical Revenue, Debt Service, and
Capital Projects-funds.
Operating Transfers have
been exluded from all
years.
66
a
a
a
a
a~
a
a
a
0
0
0
0
Charges for
Services
564,962
539,055
584,033
499,492
643,385
662,094
445,059
467,598
680,096
581,848
Millions
$25
$20
$15
$10
$5
Fines,
Forfeitures
and Penalties
317,969
365,400
363,938
349,322
625,756
448,675
626,127
658,184
645,744
589,890
Use of
Money and
Property
$ 1,383,762
2,667,346
2,415,335
2,497,294
2,244,326
2,068,706
2,963,292
1,675,373
1,108,145
1,372,591
Other
$ 387,606
138,159
63,262
71,628
155,534
80,540
54,094
22,668
9,184
37
6
Total
17,793,415
17,326,794
18,900,460
18,239,024,
21,991,214
19,222,330
22,214,986
23,781,486
22,107,501
21,920,310
$o
1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04
Olntergovt. E3 Prop. Tax OOther Taxes OUse of M& P mMisc. oLic. & Permits r3Fines, For. & Pen. 1
67
CITY OF ROSEMEAD, CALIFORNIA
OTHER TAX REVENUES BY SOURCE
ALL GOVERNMENTAL FUND TYPES
Last Ten Fiscal Years
Fiscal
Year
Real
Estate
Taxes
Sales and
Use Tax
Franchise
Fees
1994-95
$ 36,739
$ 2,582,644
$ 568,020
1995-96
40,404
2,309,758
577,004
1996-97
47,904
2,550,967
574,497
1997-98
46,600
2,658,370
605,586
1998-99
58,767
2,529,135
600,899
1999-00
66,456
2,717,017
625,880
2000-01
87,524
2,945,565
695,582
2001-02
102,531
2,711,328
701,238
2002-03
125,823
3,421,636
700,704
2003-04
149,737
3,129,318
739,414
68
Transient
Occupancy
Tax
Total
$ 718,877
$ 3,906,280
735,574
3,662,740
777,568
3,950,936
822,611
4,133,167
809,490
3,998,291
855,999
4,265,352
899,012
4,627,683
900,891
4,415,988
968,131
5,216,294
1,081,174
5,099,643
CITY OF ROSEMEAD, CALIFORNIA
' COMPUTATION OF LEGAL DEBT MARGIN
' June 30, 2004
1
Total assessed valuation
1
Debt limit: 3.75% of total assessed valuation
1
Amount of debt applicable to debt limit:
' Total bonded debt
Less tax allocation notes exempt by law
' Total amount of debt application
to debt limit
' Legal debt margin
1
1
$34,255,000
34,255,000
69
$ 2,370,318,418
$ 88,886,941
$
$ 88,886,941
CITY OF ROSEMEAD, CALIFORNIA
ASSESSED VALUATIONS OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal
Year Land
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
$ 820,044,812
837,930,509
839,391,647
841,497,520
852,261,064
875,890,808
919,681,140
971,680,932
1,038,911,981
State Assessed
Personal
Unitary and Operating
Improvements
Property
Non-unitary Property
$ 884,095,866 $
11,198,234 $
140,532,446
857,272,720
11,534,790
139,789,581
858,050,748
10,568,291
137,886,292
852, 913,158
11, 363,160
140, 328, 015
856,431,323
10,742,661
141,741,081
882,240,913
9,580,437
139,870,251
913,554,831
8,798,983
130,370,296
960,520,295
6,971,738
136,275,505
1,012,447,390
7,960,820
127,445,268
2003-04 1,153,776,353 1,076,597,064 8,157,466 129,093,930
Source: Los Angeles County Auditor-Controller, Tax Division
70
1
1
1
1
1
1
1
1
1
Locally Assessed
Personal
Land Improvements
Property
$ 13,103,797
$ 26,191,169
14,186,602
25,615,938
14,583,278
25,615,938
13,161,523
25,688,653
13,954,969
26,590,993
14,389,698
30,053,289
14,217,867
34,031,964.
15,398,799
34,028,841
Total
$ 1,895,166,324
1,886,330,140
1,886,096,194
1,984,952,029
1,901,722,091
1,952,025,396
2,020,655,081
2,124,876,110
Property
Exemptions
$ 24,386,741
28,458,429
33,592,337
28,607,474
28,559,132
33,003,778
40,082,928
43,302,662
16,366,841 34,264,631 2,237,396,931 38,960,555
18,144,609 35,045,887 2,420,815,309 50,496,891
NET PROPERTY VALUE
Millions
$2500
$2000
$1500
$1000
$500
$0
199485
71
Net
Property
Value
$ 1,870,779,583
1,857,871,711
1,852,503,857
1,956,344,555
1,873,162,959
1,919,021,618
1,980,572,153
2,081,573,448
2,198,436,376
2,370,318,418
189596 199&97 1997-98 1988-99 1999-2000 200001 2001-02 2002-03 2003-04
CITY OF ROSEMEAD, CALIFORNIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Percentage
Assessment
Assessment
Collected
Fiscal Year
Levy
Collected
Currently
1994-95
$ 826,818
807,644
97.68%
1995-96
922,420
1,037,006
112.42%
1996-97
978,278
1,017,845
104.04%
1997-98
965,643
1,054,459
109.20%
1998-99
984,721
940,904
95.55%
1999-00
1,013,510
1,106,595
109.18%
2000-01
1;059,067
1,261,833
119.15%
2001-02
1,111,483
1,168,453
105.13%
2002-03
1,181,683
1,161,629
98.30%
2003-04
1,262,684
1,445,722
114.50%
72
1
CITY OF ROSEMEAD, CALIFORNIA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
'
LIGHTING AND MAINTENANCE DISTRICT
Last Ten Fiscal Years
1
Percentage
'
Assessment Assessment
Collected
Fiscal Year
Levy Collected
Currently
1994-95
$ 339,205 $ 388,150
114.43 %
1995-96
350,258 366,475
104.63 %
1996-97
373,885 384,184
102.75 %
'
1997-98
377,243 419,868
111.30 %
1
368
525
96
16 %
1998-99
,
383,237
.
.
'
1999-00
396,460 430,048
108.47 %
'
2000-01
414,275 426,122
102.86 %
2001-02
436,305 457,876
104.95 %
2002-03
464,400 455,604
98.19 %
'
2003-04
494,993 564,804
114.10 %
1
1
'
73
CITY OF ROSEMEAD, CALIFORNIA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR TOTAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES
Last Ten Fiscal Years
Fiscal
Year
Principal
1994-95
$ 260,000
1995-96
265,000
1996-97
280,000
1997-98
295,000
1998-99
310,000
1999-00
330,000
2000-01
345,000
2001-02
370,000
2002-03 425,000
2003-04 445,000
(1) Includes all Governmental Funds.
Total Debt
Interest Service
$ 2,279,153
2,271,154
2,271,333
2,279,054
2,270,187
2,272,258
2,267,847
2,272,057
2,306,073
2,304,747
$ 2,019,153
2,006,154
1,991,333
1,984,054
1,960,187
1,942,258
1,922,847
1,902,057
1,881,073
1,859,747
74
Debt Service
Total (1)
To Total
General
General
Expenditures
Expenditures
$ 21,550,318
10.58%
16,821,180
13.50%
16,811,389
13.51%
16,090,830
14.16%
22,581,324
10.05%
17,811,269
12.76%
20,828,469
10.89%
30,565,853
7.43%
22,527,228
10.24%
20,764,720
11.10%
a
a
0
a
$25
$20
$15-
$10
$5
$0
1994-95
$35
$30
$25
$20
$15
$10
$5
$0
1999-2000
TOTAL BONDED DEBT TO
TOTAL GENERAL EXPENDITURES
Millions
Millions
75
1995-96 1996-97 1997-98 1998-99
2000-01 2001-02 2002-03 2003-04
CITY OF ROSEMEAD, CALIFORNIA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR TOTAL BONDED DEBT PER CAPITA. .
Last Ten Fiscal Years
Debt Service
Fiscal
Total Debt
To Total
Year
Principal
Interest
Service
Population
Population
1994-95
$ 260,000
$ 2,019,153
$ 2,279,153
53,639 $
42.49
1995-96
265,000
2,006,154
2,271,154
54,487
41.68
1996-97
280,000
1,991,333
2,271,333
55,128
41.20
1997-98
295,000
1,984,054
2,279,054
55,760
40.87
1998-99
310,000
1,960,187
2,270,187
56,664
40.06
1999-00
330,000
1,942,258
2,272,258
57,328
39.64
2000-01
345,000 '
1,922,847
2,267,847
55,351
40.97
2001-02
370,000
1,922,847
2,292,847
55,289
41.47
2002-03
425,000
1,881,073
2,306,073
56,065
41.13
2003-04
445,000
1,859,747
2,304,747
56,710
40.64
76
1
1
1
1
t
1
CITY OF ROSEMEAD, CALIFORNIA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR TOT
AL BONDED DEB
T TO TOTAL ASSESSE
D VALUATION
Last Ten Fiscal Years
Debt Service
Total
To Total
Fiscal
Total Debt
Assessed
Assessed
Year
Principal
Interest
Service
Valuation
Valuation
1994-95
$ 260,000
$ 2,019,153
$ 2,279,153 $
1,870,779,583
0.12%
1995-96
265,000
2,006,154
2,271,154
1,857,871,711
0.12%
1996-97
280,000
1,991,333
2,271,333
1,852,503,857
0.12%
1997-98
295,000
1,984,054
2,279,054
1,956,344,555
0.11%
1998-99
310,000
1,960,187
2,270,187
1,873,162,959
0.12%
1999-00
330,000
1,942,258
2,272,258
1,919,021,618
0.12%
2000-01
345,000
1,922,847
2,267,847
1,980,572,153
0.11%
2001-02
370,000
1,902,057
2,272,057
2,081,573,448
0.11%
2002-03
425,000
1,881,073
2,306,073
2,198,436,376
0.10%
2003-04
445,000
1,859,747
2,304,747
2,370,318,418
0.10%
77
CITY OF ROSEMEAD, CALIFORNIA
PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS
(Per $100 of Assessed Valuation)
Last Ten Fiscal Years
Los
Los Angeles
County
Fiscal
City of
Angeles
School
Water
Flood
Sanitation
Year
Rosemead
County
Districts
Districts
Control
District
Total
1994-95
0
1.001993
0.080512
0.038900
0.006041
0
1.127446
1995-96
0
1.001604
0
0.038900
0.001991
0
1.042495
1996-97
0
1.001604
0
0.038900
0.001991
0
1.042495
1997-98
0
1.001604
0
0.038900
0.001991
0 .
1.042495
1998-99
0
1.001604
0
0.038900
0.001991
0
1.042495
1999-00
0
1.001604
0
0.038900
0.001991
0
1.042495
2000-01
0
1.001604
0
0.038900
0.001991
0
1.042495
2001-02
0
1.001604
0
0.038900
0.001991
0
1.042495
2002-03
0
1.001604
0
0.038900
0.001991
0
1.042495
2003-04
0
1.001604
0
0.038900
0.001991
0
1.042495
Source: Tax Rates By Tax Rate Areas, Los Angeles County Tax Collector
78
I
1
1 2003.04 Assessed Valuation:
1
1
1
H
I
I
1
I Source: California Municipal Statistics, Inc.
CITY OF ROSEMEAD, CALIFORNIA
SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT
June 30, 2004
$1,915,948,700 (after deducting $324,989,788
redevelopment incremental valuation)
Direct and Overlapping Tax and Assessment Debt
%Applicable
Debt 6130104
Los Angeles County
0.303 %
$71,114
Los Angeles County Flood Control District
0.314
433,147
Metropolitan Water District
0.157
702,536
Los Angeles Community College District
0.266
1,791,816
Pasadena Area Community College District
2.675
833,263
Rio Hondo Community College District
0.001
580
Montebello Unified School District
1.770
1,242,134
San Gabriel Unified School District
1.068
303,660
El Monte Union High School District
14.512
3,410,320
El Monte School District
0.004
986
Garvey School District
44.144
6,530,850
Rosemead School District
68.222
11,966,139
Los Angelees County Regional Park and Open Space Assessment District
0.303
1,139,916
City of Rosemead
100.000
Total Direct and Overlapping Tax and Assessment Debt:
$28,426,461
Overlapping General Fund Obligation Debt
Los Angeles County General Fund Obligations
0.303 %
$4,397,599
Los Angeles County Pension Obligations
0.303
4,002,183
Los Angeles County Superintendent of Schools Certificates of Participation
0.303
78,034
Los Angeles County Sanitation District #2 Authority
0.005
2,200
Los Angeles County Sanitation District #15 Authority
6.772
3,050,095
Pasadena Area Community College Certificates of Participation
2.675
143,915
Montebello Unified School District Certificates of Participation
1.770
450,996
San Gabriel Unified School District Certificates of Participation
1.068
101,353
El Monte Union High School District Certificates of Participation
14.512
81,267
El Monte School District and Certificates of Participation
0.004
235
Garvey School District Certificades of Participation
44.144
1,220,582
Rosemead School District Certificates of Participation
68.222
6,095,636
San Gabriel Valley Mosquito Abatement District Certificates of Participation
2.951
32,461
Total Gross Direct and Overlapping General Fund Obligation Debt:
$19,656,556
Less: Los Angeles County Certificates of Participation (100% self-supporting
from leasehold revenues on properties in Marina Del Rey)
211,055
Total Net Direct and Overlapping Bonded Debt:
519,445,501
Gross Combined Total Debt $48,083,017 (1)
Net Combined Total Debt $47,871,962
(1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax
allocation bonds and non-bonded capital lease obligations.
Ratios to Assessed Valuations: Direct Debt 0.00 %
Total Overlapping Tax & Assessment 1.27 %
Gross Combined Total Debt 2.51 %
Net Combined Total Debt 2.50 %
Stale School Building Aid Repayable as of 6/30/04 $ 0
79
CITY OF ROSEMEAD, CALIFORNIA
DEMOGRAPHIC STATISTICS
Fiscal Year
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
Population (1)
53,639
54,487
55,128
55,760
56,664
57,328
55,351
55,289
56,065
56,710
Last Ten Fiscal Years
Households (2)
14,195
14,238
14,254
14,278
14,313
14,345
14,350
14,460
14,506
14,557
Income
Per Capita (3)
21,562
23,501
24,945
25,719
26,773
28,276
29,522
30,611
30,804
Unavailable
Source:
(1) California State Department of Finance, Office of Demographic Research
(2) California Employment Development Department
* (3) U.S. Department of Commerce, Bureau of Economic Analysis
Information presented is for the County of Los Angeles, which includes the City of Rosemead.
Income Per Capita and Unemployment Rate specifically for the City of Rosemead is not available.
Unemploy-
ment Rate
ment-Rate (3)
7.40%
7.90%
6.90%
6.50%
5.60%
5.40%
5.90%
6.10%
6.80%
6.00%
80
1
1
60
' 50
' 40
30
20
10
0
t
t
1
60
50
40
30
20
10
0
DEMOGRAPHIC STATISTICS
Thousands
Thousands
81
1994-95 1995-96 1996-97 1997-98 1998-99
ILDHouseholds r3IncomePerCapita OPopulation 3
1999-2000 2000-01 2001-02 2002-03
oHouseholds olncome Per Capita oPopulation
CITY OF ROSEMEAD
PRINCIPAL TAXPAYERS
June 30, 2004
Percentage
of Total City's
Assessed Assessed
Valuation Valuation
Southern California Edison Company
$204,319,473
8.62%
Countrywide/California Federal
9,626,052
0.41%
Hsi Lai University
8,232,229
0.35%
Panda Restaurant Group
8,000,000
0.34%
Diamond Square
7,696,695
0.32%
Vikon Center
5,600,000
0.24%
Quanjude Center
2,918,321
0.12%
Lucky Plaza
2,232,079
0.09%
ABC Plaza
1,655,484
0.07%
Rosemead Center
1,491,135
0.06%
$251,771,468 10.62%
Note: Principal property taxpayers and assessed valuations presented here reflect the
Rosemead Redevelopment Agency Project Area only as the City of Rosemead
is a non-property tax city.
82
CITY OF ROSEMEAD, CALIFORNIA
'
SCHEDULE OF INSURANCE IN FORCE
'
June 30, 2004
'
Policy
Expiration
Number
Date
Type of Coverage
'
Southern California Joint Powers
'
Insurance Authority
07/01/05
General Liability
'
Southern California Joint Powers
07/01/05
Workers Compensation
Insurance Authority
Coverage
'
Kelley, Jiggins, Towle & Blue
05743382
07/01/05
Public Employees
Blanket Bond
'
d M
hi
Kelley, Jiggins, Towle & Blue
9922993-03
10/19/05
Boiler an
ac
nery
'
Kelley, Jiggins, Towle & Blue
2781100
07/01/05
Notary Public Bond
Error & Omissions
'
Kelley, Jiggins, Towle & Blue
CP8119571C
07/01/05
Property Insurance
'
Source: City Finance Department
1
1
1
'
83
CITY OF ROSEMEAD, CALIFORNIA
CONSTRUCTION ACTIVITY
Last Ten Fiscal Years
Number of
Building Permit
Fiscal
Residential
Valuations (I
n Thousands)
Year
Dwelling Units
Residential
Nonresidential
Total
1994-95
37
$ 10,880,831
$ 3,552,722
$ 14,433,553
1995-96
42
12,267,012
2,094,550
14,361,562
1996-97
24
9,787,980
4,325,690.
14,113,670
1997-98
35
7,270,943
14,133,409
21,404,352
1998-99
28
8,973,771
11,726,986
20,700,757
1999-00
42
23,062,147
5,247,903
28,310,050
2000-01
24
13,440,052
12, 273,661
25,713,713
2001-02
13
7,202,314
19,089,443
26,291,757
2002-03
49
17,035,414
11,560,779
28,596,193
2003-04
45
19,878,915
15,857,875
35,736,790
Number of
Building
Permits Issued
608
652
611
522
595
478
423
487
551
624
84
I
I
1
0
CITY OF ROSEMEAD, CALIFORNIA
MISCELLANEOUS STATISTICS
June 30, 2004
The City of Rosemead is located in Los Angeles County, California approximately nine miles east of the City of Los Angeles.
Incorporated in 1959, the City of Rosemead now encompasses a total land mass of 5.5 square miles and operates as a general
law city under a Council - City Manager form of government. The Rosemead Community Development Commission, activated on
January 4, 1972, includes 511 acres within he City's 5.5 square miles.
Population
Land Area
Streets & Alleys
Parks
Percentage of Land Use:
Residential
Public Facilities
Commercial (stores & shops)
Mixed Commercial/Residential
Office & Light Industrial
Public Facilities:
Community Centers
a
Swimming Pools
Libraries
Gymnasiums
a
Ball Diamonds (lighted)
Tennis Courts (lighted)
Education Facilities:
Elementary Schools
Secondary Schools
High Schools
Fire Protection: *
Number of firefighters and officers
Police Protection:
Parking Control (personnel)
Police Protection (sworn personnel).
U
U
U
U
Major Employers and Number of Employees:
Southern California Edison Company
Countrywide Mortgage
Hermetic Seal Corporation
56,710
5.5 square miles
74.42 miles
50 acres
64 %
14
9
7
6
100 %
2
2
2
1
4
5
10
3
2
37
4
38
4,500
800
450
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 contracts with the Los Angeles County Sheriffs Department for all police services with the exception
of parking control which is provided by City personnel.
85
Pasadena
LU11 F-CdGll
210,
San Bernardino
Fullerton
Anaheim
Riverside
Orange -
The CITY OF ROSEMEAD is located in Los Angeles County,
approximately nine miles east of downtown Los Angeles.
Incorporated in 1959, the CITY OF ROSEMEAD now encompasses
a total land mass of 5.5 square miles with an approximate
population of 56,710
City of Rosemead
California
86