2003 CAFR1
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CITY OF ROSEMEAD
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California
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CIVIC PRIDE
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 305 2003
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CITY OF ROSEMEAD, CALIFORNIA
COMPREHENSIVE
ANNUAL FINANCIAL
REPORT
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FISCAL YEAR ENDED JUNE 30, 2003
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Prepared by the Finance Department
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Karen L. Ogawa, Finance Director
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CITY OF ROSEMEAD, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2003
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal
List of City Officials
Organizational Chart
Certificate of Award for Outstanding Financial Reporting
Certificate of Achievement for Excellence in Financial Reporting
FINANCIAL SECTION
Independent Auditor's Report
Management's Discussion and Analysis
Basic Financial Statements:
Government-wide Financial Statements:
Statement of net assets - governmental activities
Statement of activities - governmental activities
Fund Financial Statements:
Combined balance sheet - governmental funds
Reconciliation of total governmental fund balances to net assets
of governmental activities in the statement of net assets
Combined statement of revenues, expenditures and changes in fund
balances - governmental funds
Reconciliation of the statement of revenues, expenditures and changes
in fund balances of governmental funds to the statement of activities
Statement of fiduciary net assets - trust and agency funds
Statement of changes in fiduciary net assets - pension trust fund
Notes to the financial statements
Required Supplementary Information
' Combining statement of revenues, expenditures and changes in fund
balances - budgetary comparison - general fund
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3-10
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14 and 15
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21 - 39
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TABLE OF CONTENTS CONTINUED 1
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Combining statement of revenues, expenditures and changes in.fund
Balances - budgetary comparison - community development
block grant
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Notes to required supplementary information
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Supplemental Schedules
Combining balance sheet - nonmajor governmental funds - special
revenue funds
48 and 49
Combining statement of revenues, expenditures and changes in fund
balances - nonmajor governmental funds - special revenue funds
50 and 51
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Combining schedule of revenues and expenditures - budget and
actual - nonmajor special revenue funds
52 and 53
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STATISTICAL SECTION
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General Governmental Expenditures by Function - All Governmental
Fund Types
56 and 57
General Revenues by Source - All Governmental Fund Types
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Other Tax Revenues by Source - All Governmental Fund Types
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Computation of Legal Debt Margin
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Assessed Valuations of Taxable Property
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Property Tax Levies and Collections
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Special Assessment Levies and Collections - Lighting and
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Maintenance District
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Ratio of Annual Debt Service Expenditure for Total Bonded
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Debt to Total General Expenditures
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Ratio of Annual Debt Service Expenditure for Total Bonded
Debt Per Capita
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Ratio of Annual Debt Service Expenditure for Total Bonded
Debt to Assessed Valuation
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Property Tax Rates - All Overlapping Governments
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Schedule of Direct and Overlapping Bonded Debt
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Demographic Statistics
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Principal Taxpayers
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Schedule of Insurance in Force
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Construction Activity
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Miscellaneous Statistics
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Vicinity Map
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MAYOR:
JOE VASQUEZ
MAYOR PRO TEM:
MARGARETCLARK
COUNCILMEMBERS:
JAY T. IMPERIAL
GARY A. TAYLOR
WILLIAM F, ALARCON
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December 2, 2003
The Honorable Mayor
and Members of the
Rosemead City Council
Councilmembers:
Poses cad
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, 2003. 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.
0 GENERAL INFORMATION
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-Tern each yearfrom its membership.
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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 and Rosemead Housing Development Corporation Board, and oversees the responsibility
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for the operation and accountability of the Rosemead Community Development Commission, Building
Rehabilitation Appeals Board, and the Rosemead Housing Development Corporation.
The City of Rosemead has a population of 56,605 living in an area encompassing 5.5 square miles.
The City is located in the central Northwestern section 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 major
freeways, 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.
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Sales tax is the City
s major revenue source and is derived from light manufacturing, commercial, and
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 used for residential purposes (64%), and by
public facilities activities (14%).
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HIGHLIGHTS OF FISCAL YEAR 2002-03
Administration: The statewide growth slowdown has been painful for local businesses, the city and
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local residents. The state and the Los Angeles region in recent years has had to cope with a variety of
challenges, including the sharp slowing of the U.S. economy, a full-blown state energy crisis, the
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unexpectedly rapid and deep tech sector crash, and the aftermath of September 11 m events. Despite
the fact that the state has outperformed the rest of the nation in most economic indicators, the effects
of the energy crisis and the September 11th attacks has continued to undermine consumer confidence,
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tourism and other business activities. Nevertheless, there continues to be positive forces at work in
2003 for the region and community. These include new housing construction and public infrastructure
projects, as well as, development of new retail businesses that will generate additional sales tax
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revenues. The addition of a Target store is an indicator of that trend.
The energy crisis has been a source of much concern, as bankruptcy of Southern California Edison
(SCE) would have had a devastating effect on our local finances and operations. SCE tax revenues
contribute greatly to our local budget. Our very economy and quality of life depend upon the jobs,
community involvement and economic activity resulting from SCE's being headquartered in our City.
The bankruptcy of SCE would have had a chilling impact on our local economic base, not to mention '
the entire state economy and business climate. Bankruptcy was averted only after the California Public
Utility Commission (CPUC) reached agreement with SCE on terms for restoring SCE to financial
health, which is expected to occur within the year. t
The most vulnerable city revenue continues to be the state general fund "backfill" for the vehicle license
fee (VLF) tax reduction made in 1999. Despite past state assurances made to protect local government '
from any revenue loss from the VLF license fee rollback, the State confiscated approximately $1.0
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million in VLF payments and tax increment revenues for the Educational Revenue Augmentation Fund
(ERAF) to pay for government's spending excess. The tax increment revenue from Redevelopment
Project Area No. 1 continues to remain flat. That combined with the State budget crisis mandates that
we maintain a careful watch on revenues.
Public Works: Planning and design work has been underway for the past year on several major
capital improvements projects that are expected to get underway in 2004. During the past fiscal
year the City completed a traffic signalization capital improvement project. Public works activities
have focused largely on maintenance and repair. As example, Traffic Congestion Relief (TCR)
funds were utilized to slurry seal various streets throughout the City.
Planning: A variety of exciting development activities took place during fiscal year 2002-03. These
development activities, both large and small, are creating positive changes to the landscape of the
community. These positive changes 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 neighborhoods with "infill" projects. These "infill" projects, though
challenging to implement, will increase the economic vitality of the community and build upon the
existing strengths that are inherent to the City.
The most important commercial development that was realized this year was the renovation of the
180,000 square foot, vacant Chicago Title Building on Walnut Grove Avenue. The Panda
Restaurant Group purchased this vacant property to re-locate their corporate office headquarters
from South. Pasadena to Rosemead. The structure was completely remodeled and is once again in
a productive use. The Panda Restaurant Group, Inc. celebrated its 30th anniversary this year and
opened its 600th Panda Express Chinese Restaurant. The Panda Group is aggressively expanding
and has targeted 20% growth rate leading to a projected 10,000 stores by 2020.
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Two new office structures have been completed along the eastern section of Valley Boulevard. The
development at 9143 Valley consists of approximately 7,300 square feet of new medical office
space that is valued at $530,000. The property development at 9428 Valley Boulevard consists of
approximately 9,000 square feet of office and retail space with a valuation of $650,000.
New restaurant and food services are also springing up along the Valley Boulevard corridor. A
complete interior and exterior remodeling of the former A-1 Rental Store on Valley Boulevard was
completed with the opening of a French/Vietnamese sandwich shop: "Mr. Baugette". This
bakery/sandwich shop concept is proving to be quite popular and is being replicated elsewhere in
the city and surrounding communities. The total valuation of the remodeling project was $150,000.
We were disappointed that the much anticipated New Century Auto mall, that was constructed
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within the SCE transmission line right-of-way on Valley Boulevard, was closed this year. After B
being open less than one year, the low number of vehicle sales from the site prompted the
business owner to close the location. Nevertheless, plans have been submitted to convert the
three-acre site into a retail shopping center with approximately 30,000 square feet of leaseable floor
area.
On the residential development front, a significant amount of activity has been initiated over the
past year, including three residential tract, developments, approved in the northern portion of the
City. One of these projects located at 8723-29 Mission Drive was recently completed and included
the construction of twelve, new, detached single-family residences. The other two single-family
developments that were approved in nearby neighborhoods include twenty-six additional single- '
family homes.
Parks and Recreation: The City completed various park and recreation improvements during the fiscal'
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year. At the Rosemead Community Recreation Center 200 new chairs and a floor scrubber were
purchased and the center was fumigated. Tennis courts were resurfaced and the pool reception area '
was rebuilt at Garvey Park. A new stage cover and furnishings were also acquired during the fiscal
year.
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 in coming 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 2003-04. CDBG funds will be utilized for ADA improvements throughout the City including ,
pedestrian push buttons on all traffic signals and sidewalk improvements at various locations
throughout the City as well as the replacement of parkway trees on a portion of Charlotte Avenue.
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 late Spring '
2004. The installation of a new traffic signal at Hellman Avenue and the eastbound 1-10 off-ramps
is also anticipated in Spring 2004.
Federal Transportation Efficiency Act (TEA) funds will be utilized for a major street improvement
project on San Gabriel Boulevard, including new sidewalks, parkway trees and an asphalt concrete
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overlay. Gas Tax funds will be utilized for performing miscellaneous concrete repairs and a slurry
seal throughout the City.
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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
2004. The engineering design and environmental clearance for the replacement of the Garvey
Avenue Bridge over the Rio Hondo Channel will continue in fiscal year 2003-04.
Private development activities include several key commercial renovations/remodels. Primestor
Development Inc. purchased the Former Toys R Us property, and the existing structure will be
remodeled into a Levitz Furniture store. The five-acre site has the potential to support an additional
retail tenant. The City is working closely with Primestor to attract another national retail tenant to
the site. Across the street at Rosemead Place Shopping Center, the ownership has secured a
lease deal to bring a Bed Bath & Beyond store to the Center. Bed Bath & Beyond is a great
addition to the center that will create additional synergy between the new Target store and other
prospective tenants that are currently looking at the vacant tenant spaces. 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 improvements. This facade renovation
program will create an exciting new look to the largest shopping center in the City.
In August 2003, the City facilitated the relocation of CH Auto, which has operated on Garvey
Avenue for twenty years. As a significant sales tax producer within the Community, it was in the
best interest of the City to retain this business. With the assistance of the City, CH Auto was able
to purchase the former Laidlaw Harley Davidson property and relocate and significantly expand
their operations. The City utilized Community Development Block Grant (CDBG) monies to assist
in property acquisition and relocation assistance through an economic development loan. CH Auto
is now operating in their new, larger location with great success.
Southern California Edison (SCE) has been marketing three large properties within the City of
Rosemead boundaries over the last three years. One of these properties includes the vacant 23=
acre site at the corner of Rush Street and Walnut Grove Avenue, which is zoned for commercial
uses. SCE has entered into a purchase and sales agreement with Wal-Mart to construct a Wal-Mart
store, a gasoline fueling station, a restaurant pad and an inline retail strip of smaller retail tenants.
Public controversy invariably is associated with projects of this magnitude. The processing of this
development application has begun with the kickoff of an Environmental Impact Report (EIR)
scoping session. It is anticipated that the entitlement process will require approximately eight
months before the EIR will be considered by the City Council, perhaps in early Summer of 2004.
The City is still actively working with developers to redevelop several key commercial sites within
the City, including areas within the recently adopted Redevelopment Project Area No. 2, located
along Valley and Rosemead Boulevards. A few of the targeted sites include the northeast corner of
Valley and Temple City Boulevards; the southwest corner of Valley Boulevard and Walnut Grove
Avenue; the northwest corner of Valley and Rosemead Boulevards; and southwest corner of
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Rosemead Boulevard and Mission Drive.
Minor park facility improvements are also anticipated in the coming year. Improvements at Rosemead
Community Recreation Center include minor remodeling in the various offices, rooms, and the lobby
reception area. Additional tables and chairs will be purchased as will various pieces of equipment,
picnic tables and bar-b-que units. The Rosemead Pool diving board stand and pool vacuum will be
replaced and repairs will be made to both pool heaters.
Garvey Park improvements will include replacing backboards and rims in the gym, replacement of
aluminum picnic tables and bar-b-que units, new volleyball equipment, re-carpeting the pre-school
room with tile, and purchase a computer. Garvey Pool improvements for the fiscal year 2003-04 will
include purchasing a pool cover, replacement of the pool vacuum and diving board stand, retiling the
showers and restrooms, replaster the pool, and new front doors and frames.
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
financial section of this report.
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
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Q were no material exceptions noted in the report.
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.
a 2. Financial Section - which includes the auditor's opinion, Management's Discussion and
Analysis, basic financial statements, Required Supplementary Information, and Supplemental
Schedules.
3. Statistical Section - which includes relevant financial and non-financial data presenting
p historical trends and other information about the City.
BUDGETARY CONTROL
a 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.
m Budgetary control is maintained at a functional level by division within departments through use of
m 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
m 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
m projects fund because the budgeted appropriations relate to all future appropriations as well as current
w year appropriations.
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,
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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 31% of the calculated
appropriation limit at June 30, 2003. The City's 2003-
04 estimated revenues and budgeted expenditures
indicate that by June 30, 2004 the City will be
approximately 34% of the limit.
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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, 2002. 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 fourteen (14) consecutive years.
This Certificate is valid for a period of one year only. We believe that the City's current comprehensive
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.-
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
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Comprehensive Annual Financial Report for the fiscal year ended June 30, 2002. The Certificate of
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.
Q ACKNOWLEDGMENTS
a 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
financial reporting for the City of Rosemead has led to improved quality of financial information
available to the City Council and citizens.
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.
Respectfully submitted,
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Bill Crowe
City Manager
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K en Ogawa
Finance Direct r
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CITY OF ROSEMEAD, CALIFORNIA
CITY OFFICIALS
June 30, 2003
ELECTED OFFICIALS:
City Council:
Joe Vasquez
Mayor
Margaret F. Clark
Mayor Pro Tern
William Alarcon
Councilman
Jay T. Imperial
Councilman
Gary A. Taylor
Councilman
APPOINTED OFFICIALS:
Planning Commissioners:
Diane Herrera
Chairman
Robert Breen
Commissioner
Darrel Kelty
Commissioner
Daniel Lopez
Commissioner
Due Loi
Commissioner
Traffic Commissioners:
Holly Knapp
Chairman
Edward Quintanilla
Vice Chairman
Carmine Baffo
Commissioner
Michael Benjamin
Commissioner
Brandan Matsdorf
Commissioner
Bill Crowe City Manager
Bill Crowe City Treasurer
Robert L. Kress City Attorney
Nancy Valderrama City Clerk
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Rosemead,
California
a For its Comprehensive Annual
Financial Report
a for the Fiscal Year Ended
June 30, 2002
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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.
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m McGladrey&Pullen
Certified Public Accountants
Independent Auditor's Report
The Honorable Mayor and Members
of the City Council
City of Rosemead
Rosemead, California
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We have audited the accompanying financial statements of the governmental activities of 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, 2003, 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 an opinion 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 GovemmentAuditing 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
opinion.
In our opinion, the basic 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, 2003, and the respective changes in financial position, where applicable, thereof for the year
then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated September 19, 2003 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 grants. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with this report in considering the
results of our audit.
As described in Note 1 to the financial statements, the City adopted the provisions of Governmental Accounting
Standards Board (GASB) Statement No. 34, Basic Financial Statements-and Management's Discussion and
Analysis-for State and Local Governments; GASB Statement No. 37, Basic Financial Statements-and
Management's Discussion and Analysis-for State and Local Governments: Omnibus; GASB Statement No. 38,
Certain Financial Statement Note Disclosures; GSAB Statement No. 41, Budgetary Comparison Schedules-
Perspective Differences; and GASB Interpretation No. 6, Recognition and Measurement of Certain Liabilities and
Expenditures in Governmental Fund Financial Statements, as of June 30, 2003.
Management's discussion and analysis and supplementary budgetary comparison schedules on pages 3 to 10
and 43 to 44 , respectively, are not a required part of the basic financial statements but are supplementary
information required by the GASB. 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.
McGladrey & Pullen, aP is a member firm of RSM International,
an affiliation of separate and independent legal enfifies.
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Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise 1
the City's basic financial statements. The accompanying combining nonmajor fund financial statements and
combining budgetary comparison schedules listed as supplemental schedules in the table of contents are presented 1
for purposes of additional analysis, are not a required part of the basic financial statements and, in our opinion, are
fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The letter of
transmittal and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we express no opinion on them. 1
Pasadena, California
September 19, 2003
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MANAGEMENT'S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2003
THE CITY OF
ROSEMEAD
As management of the City of Rosemead (the 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, 2003. 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. Since fiscal year ended June 30, 2003 is the implementation year for GASB Statement No. 34
requirements, no comparative data from the prior year is presented. Comparative data will be presented in future
years.
Overview of the 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.
- The 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 employee
retirement, 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 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.
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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.. Over time, 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
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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
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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.
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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 are 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
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long-term and short-term focus of the Government-wide Financial Statements is provided immediately
following each statement.
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• 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
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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.
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Financial Analysis of the City as a Whole
Net Assets
The City's combined net assets for the fiscal year ended June 30, 2003, as shown below, were $23,098,128.
NET ASSETS-GOVERNMENTAL ACTIVITIES
Cash and investments $ 31,754,392
Receivables 3,163,572
Prepaid items 3,000
Restricted assets, cash and investments 2,321,914
Capital assets 22,698,019
Total assets $ 59,940,897
Accounts Payable and accrued liabilities
$ 2,661,578
Deferred revenue
131,778
Noncurrent liabilities
34,049,413
Total liabilities
$ 36,842,769
Invested in capital assets, net of related debt $ (11,351,394)
Restricted 3,194,817
Unrestricted 31,254,705
Total net assets $ 23,098,128
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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).
GOVERNMENTAL ACTIVITIES
PROGRAM REVENUES AND EXPENSES
Revenues:
Program Revenues:
Charges for services
Operating grants and contribution
General Revenues:
Taxes:
Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise fees .
Motor vehicle license fee
Othertaxes.
Income from property and investments
Total revenues
Expenses:
General government
Public safety
Public works
Public health
Public recreation
Community services
Interest on long-term debt
Depreciation expense
Total expenses
Change in net assets
Net assets at beginning of year
Net assets at end of year
$ 2,722,334.
6,253,601
3,561,019
3,296,371
968,131
700,704
3,389,422
125,823
680,401
$ 21,697,806
$ 3,211,759
6,027,827
2,508,194 .
76,978
2,991,866 .
3,230,193
1,875,973
552,358
$ 20,475,148
1,222,658
21,875,470
$ 23;098,128
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Financial Analysis of the City's Funds
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 $34.4 million.
Approximately 49% of this amount ($16.7 million) constitutes unreserved and undesignated 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 ($3.6 million) or designated ($14.1 million), which indicates that it is not available for
new spending because it has already been committed (1) to pay debt service ($2.3 million), (2) for future low-
moderate income housing projects ($.9 million), (3) for a variety of other restricted purposes ($.4 million), (4) for
future capital project ($7.8 million), (5) for replacement of building and equipment ($1.8 million), and (6) other
contingencies including litigation, self insurance and other ($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 $19.7 million, an increase of $1.3 million. This increase was primarily due to an increase in sales and use taxes.
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 $2.8 million in their fund balances during the year. At the end of
fiscal year 2001-02, Capital Projects fund had a decrease in fund balance in the amount of $3.8 million.
The majority of other major governmental funds, showed virtually no change in their 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 $944,583. The increase is primarily due to increase in
sales and use taxes, transient occupancy taxes, intergovernmental grants, building permits which were partially offset
by a decrease in income from investments.
The increase from the total original budgeted expenditures to the final budget amounted to $223,320, 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 $746,708 can be generally summarized as a "savings" being
carried forward into the new fiscal year to enhance and provide for future services and programs.
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Capital Asset and Debt Administration
Capital Assets
At the end of 2003, the City had recorded an investment $22.7 million in a broad range of capital assets, including
land, buildings, park facilities, vehicles, maintenance equipment, and infrastructure assets. This number does not
include infrastructure assets constructed prior to July 1, 2002. The City has not completed its inventory of
infrastructure assets. The City has until June 30, 2007 to record its retroactive general infrastructure assets. The
following table presents the City's capital assets.
CITY OF ROSEMEAD'S CAPITAL ASSETS
Land $ 3,018,234
Buildings and improvements 18,047,664.
Improvements other than building
Infrastructure
Machinery and equipment
Automobiles and trucks
Furniture and office equipment
Net capital assets
1,359
821,333
167,797
97,374
544,258
$ 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 $34.1 million in bonds and compensated absences. More detail about the City's long-term
liabilities is presented in Note 5, Long-tens Debt, to the financial statements.
- Economic Factors and Next Year's Budgets and Rates
The state of California is facing significant deficits due to a number of factors, not the least of which include shaking
off the effects of a slowdown in the state's economy and the effects of unfavorable long-term contracts entered into
during the energy crisis of 2002. Current estimates of the state's budget shortfall for FYE 2004 range up to $39 .
billion. Since a significant portion of local government revenues come from the state, the current budget crisis in
California could have a direct significant financial impact on all local governments, including the City of Rosemead.
The state's legislature have instituted many revenue enhancement Bills to try to narrow the budget shortfall, including
raising the license fees paid by car owners by 200% effective October 1, 2003. This Bill caused a backlash of
criticism from the public which, in turn, led to repealing the fee increase.as a major issue in the October 7, 2003.
California governor recall election. On November 17, 2003, the state's new governor signed an executive order
repealing the license fee increase retroactive to October 1, 2003.
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The governor wants both houses to approve a General Fund appropriation of approximately $3.2 billion to backfill lost
local government revenue from the vehicle license fee (VLF), but the initial word is that the Senate's Democratic
leadership is reluctant to fund a backfill for local government at the expense of General Fund supported programs.
Legislative Analyst Liz Hill has issued her report on the current condition of the state's finances in which she predicts,
ongoing deficits of about $14 billion annually. The governor has called for special sessions of the state legislature
beginning November 18, 2003 to discuss the state's fiscal problems. At this time, the City's management is not able
to predict the ultimate effect that the reduction in VLF fees will have on the City's financial position or results of
operations.
In November 2001, an Orange County Superior Court Judge ruled that the Orange County Assessor's Office violated
Proposition 13 by increasing the taxable value of a Seal Beach residence by 4% in a single year (1998). County
attorneys argued that the assessment was legal because it made up for years in which the property value did not
increase. The county maintains it was merely "recapturing" the full tax value of the property, charging 2% for each of
the years the property values did not rise. On December 12, 2002, the Superior Court certified class action status for
this case and the Court and Tax Collector are currently addressing when and if notification to the taxpayers should be
executed.
In 2002, two other local courts (Los Angeles and San Diego) ruled differently on the same issue and both affirmed
the current statewide practice of property assessment restoration (i.e.; the local courts differ on this issue). The
property tax laws are applied on a statewide basis and the contradicting ruling with two other local courts on the
same legal issue require a uniformity review at the appellate level. With this notice, the Court of Appeal will establish
a briefing and hearing schedule and that process may take several months to complete. Based on the Court of
Appeal's briefing schedule, the respondent is required to submit a reply brief by October 17, 2003. Then, the
appellants will answer the respondent's reply brief by November 7, 2003. The Court of Appeal has schedule a
hearing on December 16, 2003. If the Judge's decision is upheld on appeal, it could have financial ramifications
throughout the state of California. The City's management is unable to reasonably estimate the financial effect to it,
or to the Redevelopment Agency, if a the Orange County Superior Court's decision is upheld because it would be
dependent upon how the court's decides to apply its ruling."
Additional economic factors:
• The May 2003 revision of the govemor's 2003-04 budget reports a projected $38.2 billion deficit through the
2003-04 fiscal year, or 50% of the state of California's General Fund.
• PERS rates for medical insurance costs are expected to increase 30% for most plans.
• PERS rates for our miscellaneous plan have increased for the 2003-04 fiscal year from 6.735% to 6.838%.
• Workers' compensation expenditures were budgeted reflecting an increase of 38%; however, effective
October 1, 2003 the City has contracted with the California Joint Powers Insurance Authority, which should
result in a savings of $220,000.
' Budgeted expenditures are expected to increase 8% with a General fund budget of $13.8 million. The increase is
mainly due to a 6% increase in law enforcement and 15% increase in parks and recreation functions. All of these .
factors were considered in preparing the City of Rosemead's General fund budget for the 2003-04 fiscal year.
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Contacting the City's Financial Management
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.
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I City of Rosemead, California
Statement of Net Assets-Governmental Activities
June 30, 2003
j
Cash and Investments
$
31,754,392
Receivables
3,163,572
Prepaid Items
3,000
Restricted Assets, cash and investments
2,321,914-
37,242,878
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Capital Assets
Land
3,018,234
Buildings and improvements
21,668,159
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Improvements other than buildings
Machinery and equipment
868,483
736,681
Autos and trucks
345,036
Furniture and equipment
2,098,471
Infrastructure
851,205
29,586,269
Less accumulated depreciation
(6,888,250)
0
Total capital assets (net of accumulated depreciation)
22,698,019
Total assets
$
59,940,897
0
Liabilities
0
Accounts Payable and Accrued Liabilities
$
2,661,578
Deferred Revenue
131,778
0
Noncurrent Liabilities
Due within one year
445,000
Due in more than one year
33,604,413
0
Total liabilities
36,842,769
Invested in Capital Assets, net of related debt
(11,351,394)
0
Restricted for
Debt service
2,321,914
Low-moderate income housing
872,903
Unrestricted
31,254,705
Total net assets
$
23,098,128
See Notes to Financial Statements.
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City of Rosemead, California
Statement of Activities-Governmental Activities
Year Ended June 30, 2003
Program Revenues
Net(Expense)
Operating
Revenue and
Charges for
Grants and
Changes in
Functions/Programs
Expenses
Services
Contributions
Net Assets
Governmental activities:
General government
$ 3,211,759
$ 483,189
$ 1,569,177
$ (1,159,393)
Public safety
6,027,827
680,920
114,847
(5,232,060)
Highways and streets
2,508,194
-
2,746,004
237,810
Public health
76,978
-
-
(76,978)
Public recreation
2,991,866
225,842
-
(2,766,024)
Community services
3,230,193
1,332,383
1,823,573
(74,237)
Interest on long-term debt
1,875,973
-
-
(1,875,973)
Depreciation expense
552,358
-
(552,358)
Total government activities
$ 20,475,148
$ 2,722,334
$ 6,253,601
(11,499,213)
General revenues:
Taxes:
Property taxes
3,561,019
Sales and use taxes
3,296,371
Transient occupancy taxes
968,131
Franchise fees
700,704
Motor vehicle license fee
3,389,422
Other taxes
125,823
Income from property and
investments
680,401
12,721,871
Change in net assets
1,222,658
Net assets at beginning of year
21,875,470
Net assets at end of year $
23,098,128
See Notes to Financial Statements.
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1 13
City of Rosemead, California
Combined Balance Sheet-Governmental Funds
June 30, 2003
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Community
Development Debt
General Block Grant Service
Assets Fund Fund Fund
Cash and Investments
Receivables
Prepaid Items
Restricted Cash and Investments
Due from Other Funds
. Total assets
$ 19,132,542 $ - $
2,167,883 641,874 32,835
- - 2;321,914
426,528 427 -
$ 21,726,953 $ 642,301 $ 2,354,749
Liabilities and Municipal Eoui
Liabilities
Accounts payable and accrued liabilities $ 1,521,656 $ . 166,822 $
Deferred revenue 554,368 97,203
Due to other funds - 378,276
Total liabilities 2,076,024 642,301
Municipal Equity
Fund balance:
Reserved:
Prepaid items
Long-tens receivable
Debt service
Low-moderate income housing
Unreserved:
Designated for:
Capital projects
Building and equipment replacement
Litigation settlements
Self-insurance
Contingencies
Undesignated
Total municipal equity
Total liabilities and municipal equity
See Notes to Financial Statements.
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401,283 - ,
- 2,321,914 ,
- 32,835.00 ,
1,800,000 - -
1,000,000 - - '
300,000 - -
4,000,000 - -
12,149,646 - '
19,650,929 - 2,354,749
$ 21,726,953 $ 642,301 $ 2,354,749
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Other
Capital
Governmental/ Total
Projects
Special Revenue Governmental
Fund
Funds Funds
$ 7,034,170 $ 5,587,680 $ 31,754,392
87,497 233,483 3,163,572
- 3,000 3,000
- 2,321,914
- - 426,955
$ 7,121,667 $ 5,824,163 $ 37,669,833
$ 148,461 $ 356,921 $ 2,193,860
- - - 651,571
- 48,679 426,955
148,461 405,600 3,272,386
3,000 3,000
- 401,283
- 2,321,914
872,903 872,903
6,973,206 748,378.00 7,754,419
- - 1,800,000
- 1,000,000
- 300,000
- 4,000,000
3,794,282 15,943,928
6,973,206 5,418,563 34,397,447
$ 7,121,667 $ 5,824,163 $ 37,669,833
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, 2003
Total fund balances, governmental funds $ 34,397,447
Amounts reported for govemmental 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.
22,698,019
Accrued interest is not due and payable in the current period and, therefore, is not reported
in the funds.
(467,718)
Revenues that are not available to pay current period expenditures are deferred in the funds.
519,793
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.
(34,049,413)
Net assets of governmental activities
$ 23,098,128
See Notes to Financial Statements.
16
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Cit
of Rosemead
Califo
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Combined Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds
Year Ended June 30, 2003
Community
Development
Debt
Capital
Other
Total
General
Block Grant
Service
Projects
Governmental
Governmental
Fund
Fund
Fund
Fund
Funds
Funds
Revenues:
Property taxes and special assessments
$ 1,514
$
$
$ 3,105,416 $
454,090 $
3,561,020
Othertaxes
5,216,294
-
-
-
-
5,216,294
Intergovemmental
5,068,442
2,166,849
-
-
2,407,732
9,643,023
Licenses and permits
1,243,995
_
-
-
1,243,995
Charges for services
480,115
199,981
680,096
Fines, forfeitures and penalties
363,427
-
-
-
282,317
645,744
Use of money and property
446,837
-
135,045
193,162
333,101
1,108,145
Other
9,184
-
-
-
-
9,184
Total revenues
12,829,808
2,166,849
-135,045
3,498,559
3,477,240
22,107,501
Expenditures:
Current:
General government
2,753,306
257,642
270,742
3,281,690
Public safety
5,267,537
-
-
-
760,290
6,027,827
Public works
Public health
255,244
76,978
343,276
-
371,747
2,341,696
3,311,963
76,978
Public recreation
2,991,866
2,991,866
Community services
1,666,309
1,604,635
-
-
6,685
3,277,629
Capital outlay
62,862
220,232
-
563,763 -
406,345
1,253,202
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Debt service:
Principal
425,000
425,000
Interest
1,881,073
1,881,073
Total expenditures
13,074,102
2,168,143
2,306,073
1,193,152
3,785,758
22,527,228
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Revenues over (under) expenditures
(244,294)
(1,294)
(2,171,028)
2,305,407
(308,518)
(419,727)
Other financing sources (uses):
-
Operating transfers:
From other funds
1,612,115
1,294
2,170,919
3,015,528
6,799,856
(To) other funds
(53,740)
(5,088,250)
(1,657,866)
(6,799856)
Total other financing sources
(uses)
1,558,375
1,294
2,170,919
(5,088,250)
1,357,662
-
Revenues and other financing
sources over (under)
expenditures and other
financing (uses)
1,314,081
-
(109)
(2,782,843)
1,049,144
(419,727)
Fund balance, beginning
18,336,848
2,354,858
9,756,049
4,369,419
34,817,174
Fund balance, ending
$ 19,650,929
$
$ 2,354,749
$ 6,973,206 $
5,418,563 $
34,397,447
See Notes to Financial Statements.
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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, 2003
Expenses and other uses over revenues and other sources, total governmental funds $ (419,727)
Amounts reported for governmental activities in the statement of activities are different because:
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. 2,104,407
Depreciation expense on capital assets is reported in the government-wide statement of
activities and changes in net assets, but they do not require the use of current financial
resources. Therefore, depreciation expense is not reported as expenditures in
governmental funds. (552,358)
The net effect of various miscellaneous transactions involving capital assets (i.e., sales)
is to increase net assets. (284,429)
The repayment of the principle of long-term debt consumes the current financial resources of
government funds. This transaction, however, has no effect on net assets. This amount is
the net effect of this difference in the treatment of long-term debt and related items. 425,000
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. 75,031
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds. (125,266)
Change in net assets of governmental activities $ 1,222,658
See Notes to Financial Statements.
18
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City of Rosemead, California
Combined Statement of Fiduciary Net Assets-Trust and Agency Funds
June 30, 2003
Assets
Cash and Investments
Total assets
Liabilities and Municipal Equity
Refundable deposits
Municipal Equity, fund balance reserved for employees' retirement
Total liabilities and municipal equity
19
Total
Pension Fiduciary
Trust Fund Agency Fund Funds
$ 131,913 $ 188,697 $ 320,610
$ 131,913 $ 188,697 $ 320,610
$ - $ 188,697 $ 188,697
131,913 - 131,913
$ 131,913 $ 188,697 $ 320,610
City of Rosemead, California
Statement of Changes in Fiduciary Net Assets-Pension Trust Fund
June 30, 2003
Additions, interest income on cash and investments $ 7,618
Total additions
Deductions
Benefits paid to participants and beneficiaries
19,375
Administrative expenses
3,608
Total deductions
22,983
Net (decrease) in plan net assets
(15,365)
Net assets held in trust for pension benefits, beginning
147,278
Net assets held in trust for pension benefits, ending
$ 131,913
See Notes to Financial Statements.
20
I City of Rosemead, California
I Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies
Nature of operations:
City of Rosemead, California: The City of Rosemead, California (the City) was incorporated in August 1959 under
the general laws of the State of California. The City operates under an elected Council/City Manager form of
government. It provides a broad range of services to its citizens, including general government, public safety, streets,
sanitation and health, cultural and park facilities, and social services.
Many of the functions often provided by municipal government are, in the City, provided by special districts. Examples
of some of these special districts, which usually encompass areas larger than the City itself, are the Fire Protection
District, the Library District and the County Flood Control District. Certain other governmental functions are paid for by
the City, but performed by a variety of other public and private agencies under contract. Some of the contracts now in
effect are for police, street maintenance and animal control.
Rosemead Community Development Commission: The Rosemead Community Development Commission's (the
a Commission) purpose is to prepare and carry out plans for the improvement, rehabilitation and redevelopment of
blighted areas within the City.
a 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 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.
a 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
a 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 Commission and the Corporation.
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 is reported with the
interfund data of the primary government. Only the Commission and the Corporation issue separate component unit,
financial statements. Upon their completion, the financial statements of these component units can be obtained from
the Finance Department.
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1 21
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 nonfiduciary 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 govemment-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
legislation. When both restricted and unrestricted resources are available for use, it is the City's policy to use
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.
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I City of Rosemead, California
I Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies, Continued
Real property taxes are levied for the period beginning on 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-tens 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 Citys
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.
Management has the ultimate responsibility for the appropriateness of the accounting policies and procedures used
by the City.
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City of Rosemead, California '
Notes to the Financial Statements '
Note 1. Summary of Significant Accounting Policies, Continued
Implementation of new accounting principles:
Government Accounting Standards Board (GASB) Statement No. 34: The City adopted the provisions of GASB
Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local
Governments. This Statement affects the manner in which the City records transactions and presents financial
information. State and local governments have traditionally used a financial reporting model substantially.different
from the one used to prepare private-sector financial reports.
GASB Statement No. 34 establishes new requirements and a new reporting model for the annual financial reports of
state and local governments. The Statement was developed to make annual reports of state and local governments
easier to understand and more useful to the people who use governmental financial information to make decisions.
Management's discussion and analysis: GASB Statement No. 34 requires that financial statements be
accompanied by a narrative introduction and analytical overview of the City's financial activities in the form of
"management's discussion and analysis" (MD&A). This analysis is similar to the analysis provided in the annual
reports of private-sector organizations
.
Government-wide financial statements: The reporting model includes financial statements prepared using full
accrual accounting for all of the City's activities. This approach includes not just current assets and liabilities, but
also capital and other long-term assets as well as long-term liabilities. Accrual accounting also reports all of the
revenues and costs of providing services each year, not just those received or paid in the current year or soon
thereafter.
Statement of net assets: The statement of net assets is designed to display the financial position of the City
(government and business-type activities). The City now reports all capital assets in the government-wide
statement of net assets and reports depreciation expenses-the cost of "using up" capital assets-in the statement,
of activities. The net assets of the City are broken down into three categories: (1) invested in capital assets, net of
related debt, (2) restricted and (3) unrestricted.
1
Statement of activities: The government-wide statement of activities reports expenses and revenues in a format
that focuses on the cost of each of the City's functions. The expense of individual functions is compared to the
revenue generated directly by the function
.
Accordingly, the City has recorded capital and certain other long-term assets and liabilities in the statement of net
assets, and has reported all revenues and the cost of providing services under the accrual basis of accounting in the
'statement of activities.
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I City of Rosemead, California
I Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies, Continued
GASS Statement No. 37: The City adopted the provisions of GASB Statement No. 37, Basic Financial Statements-
and Management's Discussion and Analysis-for State and Local Governments: Omnibus. This Statement amends
GASB Statement No. 34 to either (1) clarify certain provisions or (2) modify other provisions that the GASB believes
may have unintended consequences in some circumstances. Accordingly, the City considered the effects of this
Statement when adopting the provisions of GASB Statement No. 34, as previously described.
GASB Statement No. 38: The City adopted the provisions of GASB Statement No. 38, Certain Financial Statement
Note Disclosures. This Statement modifies, establishes and rescinds certain financial statement disclosure
requirements. Accordingly, certain footnote disclosures have been revised to conform to the provisions of GASB
Statement No. 38.
GASB Statement No. 41: The City adopted the provisions of GASB Statement No. 41, Budgetary Comparison
Schedules-Perspective Differences. This Statement amends GASB Statement No. 34, Basic Financial
Statements-and Management's Discussion and Analysis-for State and Local Governments, to clarify the
budgetary presentation requirements for governments with significant budgetary perspective differences that result in
their not being able to present budgetary comparison information for their general fund and major special revenue
funds. These governments are required to present budgetary comparison schedules as required supplementary
information (RSI) based on the fund, organization or program structure that the government uses for its legally
adopted budget. Accordingly, the City considered the effects of this Statement when adopting the provisions of GASB
Statement No. 34 for the fiscal year ended June 30, 2003.
GASB Interpretation No. 6: The City adopted the provisions of GASB Interpretation No. 6, Recognition and
Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements. This Interpretation
clarifies the application of standards for modified accrual recognition of certain liabilities and expenditures in areas
u where differences have arisen, or could arise, in interpretation and practice. This Interpretation impacts the fund level
financial statements (governmental funds only, not fiduciary funds) required by GASB Statement No. 34 but has no
direct impact on the government-wide, financial statements. Accordingly, the City has not recognized the current
portion of certain long-term liabilities and related expenditures in the governmental fund financial statements for
amounts not considered to be due and payable as of June 30, 2003.
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.
a Restricted cash and investments represent amounts that are restricted under the terms of debt agreements.
1 25
City of Rosemead, California
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies, Continued
t
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.
1
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 $5,000 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 assets
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
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 50
Street improvements 40
Traffic signals 30
During the year ended June 30, 2003, the City capitalized general infrastructure assets acquired during the year
ended June 30, 2003. No retroactive infrastructure assets have been capitalized. As per GASB Statement No. 34,
the City has until its year ending June 30, 2007 to record its retroactive general infrastructure assets.
Compensated absences: Vacation and sick leave pay are payable to employees at the time used or upon
'termination of employment. All vacation and sick leave pay are accrued when incurred in the government-wide level
financial statements. 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
of vacation time per year. In order to participate in the Vacation Buy-Back Program, an employee must take at least
40 consecutive hours of vacation at one time.
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City of Rosemead, California
Notes to the Financial Statements
Note 1. Summary of Significant Accounting Policies, Continued
The vested portion of vacation and sick leave by employees at June 30, 2003 that is expected to be paid within one
year after year end is included in accrued liabilities in the General Fund.
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 eamed.
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 tax receivables are shown net of an allowance for uncollectibles.
Long-term obligations: In the govemment-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
tens 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.
27
City of Rosemead, California
Notes to the Financial Statements
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, 2003 is as follows:
Unrestricted cash and investments
Cash $ 4,780,495
Time certificates of deposit 4,312,174
Total unrestricted cash 9,092,669
California State Local Agency Investment Fund
22,850,420
Annuity contracts
131,913
Total unrestricted investments
22,982,333
Total unrestricted cash and investments
32,075,002
Restricted cash and investments, cash deposits held in trust 2,321,914
$ 34,396,916
At June 30, 2003, the carrying amount of the City's cash deposits, including those held in trust, totaled $9,092,669,
and the bank balance of the City's cash deposits maintained in financial institutions is $9,308,917. The cash deposits
are held by the City's agent in the City's name. Of the $9,308,917 maintained in financial institutions, $903,938 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.
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I City of Rosemead, California
Q Notes to the Financial Statements
Note 2. Cash and Investments, Continued
The City is authorized by its investment policy, in accordance with Section 53601 of the California Government Code,
a to invest in the following instruments:
Securities issued or guaranteed by the federal government or its agencies.
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.
In accordance with GASB Statement No. 3, Deposits with Financial Institutions, Investments (Including Repurchase
a 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
or by its Trust Department or agent, but not in the City's name.
The following is the summary of investment as of June 30, 2003:
1 Category Fair
1 2 3 Uncategorized Value
Investment in pool
California State Local Agency
Investment Fund (LAIF) $ - $ - $ - $ 22,850,420 $ 22,850,420
City-held investments
Annuity contracts 131,913 131,913
Cash with fiscal agents
Guaranteed investment contract - - - 2,321,914 2,321,914
Total investments $ $ $ $ 25,304,247 $ 25,304,247
1
1 29
City of Rosemead, California
Notes to the Financial Statements
Note 2. Cash and Investments, Continued
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.
The City participates in a voluntary external investment pool, LAIF, which is managed by the State Treasurer. LAIF
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, 2003, the City's pooled investments in LAIF in the amount of $22,850,420 are not subject to custodial
credit risk categorization. The total estimated fair value invested by all public agencies in LAIF is $55,709,492,881.
Of that amount, 100% is invested in nonderivative financial products.
Cash with fiscal agents: The City has monies held by trustees pledged to the payment or security of certain 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.
Note 3. Receivables
Receivables as of June 30, 2003 consist of the following:
Development
Debt
Capital
Other
General
Block Grant
_ Service
Projects
Nonmajor
Fund
Fund
Fund
Fund
Funds
Total
Othertaxes
$ 1,434,939
$ -
$
$
$ -
$ 1,434,939
Due from other
governmental agencies
35,240
641,874
162,569
839,683
Accrued interest
78,016
-
32,835
29,373
2,363
142,587
Due from local utility
companies wt
401,283
-
-
-
401,283
Other
218,405
58,124
68,551
345,080
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City of Rosemead, California
Notes to the Financial Statements
Note 3. Receivables, Continued
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.
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
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 $311,600. 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, 2003 consist of the following:
Agreement Year, June 30:
1987 $ 296,281
1990 44,993
1991 60,009
$ 401,283
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City of Rosemead, California
Notes to the Financial Statements
Note 4. Capital Assets
Capital asset activity was as follows for the year ended June 30, 2003:
Balance at
Balance at
July 1, 2002
Increases
Decreases Reclassifications June 30, 2003
Governmental activities:
Capital assets not being
depreciated:
Land
$ 3,163,663
$ 139,000
$ 284,429 $ - $ 3,018,234
Construction in progress
12,685,629
688,893
- (13,374,522)
Total capital assets not
being depreciated
15,849,292
827,893
284,429 (13,374,522) 3,018,234
Capital assets being depreciated
Buildings and improvements
8,293,637
13,374,522 21,668,159
Improvements other than
building
868,483
-
- 868,483
Machinery and equipment
735,984
697 -
736,681
Autos and trucks
344,659
42,750 42,373
345,036
Furniture and office equipment
1,716,609
381,862 -
2,098,471
Infrastructure
-
851,205 -
851,205
Total capital assets
being depreciated
11,959,372
1,276,514 42,373
13,374,522 26,568,035
Less accumulated depreciation for.
Buildings and improvements
3,292,731
327,764
3,620,495
Improvements other than
building .
863,454
3,670
- 867,124
Machinery and equipment
584,679
26,578
42,373 - 568,884
Autos and trucks
219,046
28,616
- - 247,662
Furniture and office equipment
1,418,355
. 135,858
- 1;554,213
Infrastructure
-
29,872
- - 29,872
Total accumulated
depreciation
6,378,265
552,358
42,373 - 6,888,250
Total capital assets being
depreciated, net
5,581,107 ,
724,156
- 13,374,522 19,679,785
Governmental activities
capital assets, net
$ 21430 399
$ 1,552,049
$ 284,429 $ - $ 22,698,019
Infrastructure assets include projects that were in progress as of June 30, 2003. The estimated cost to complete
these projects as of June 30, 2003 is approximately $1,311,000.
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City of Rosemead, California
Notes to the Financial Statements
Note 4. Capital Assets, Continued
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government
$
493,038
Parks and recreation
40,392
a
Public safety
15,321
Urban development
3,607
Total depreciation expense
$
552,358
Note 5. Long-term Debt
The folowing is a summary of changes in the principal balance of
long-term debt for the year ended June 30, 2003:
a
Principal
Principal
Balance at
Balance at
Due Within
June 30, 2002 Additions
Reductions June 30, 2003
One Year
a
Governmental activities:
Tax Allocation Bonds,
Series 1993A $ 34,255,000 $
$ 425,000 $ 33,830,000
$ 445,000
Compensated
absences' 436,071
140,514 295,557
76,144
$ 34,691,071 $
$ 565,514 $ 34,125,557
$ 521,144
Current portion is recorded as a current fund liability.
33
City of Rosemead, California
Notes to the Financial Statements
Note 5. Long-term Debt, Continued
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 June 30, 1997
through June 30, 2022. Additional Low-Moderate Income Housing Set-aside commitments are addressed in Note 10.
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, 2003.
At June 30, 2003, debt service requirements to maturity for governmental activities long-term debt (excluding
compensated absences) for which minimum annual debt service payments have not been established are as follows:
Governmental Activities
Years Ending June 30, Principal Interest
2004
2005
2006
2007
2008
2009-2013
2014-2018
2019-2023
2024-2028
2029-2033
2034
Total governmental long-term debt
445,000 $ 1,859,748
465,000 1,836,765
490,000
1,812,168
515,000
1,785,909
545,000
1,757,948
3,170,000
8,314,025
4,135,000
7,326,663
5,415,000
6,012,655
7,100,000
4,271,400
9,355,000
1,981,140
2,195,000
61,460
$ 33,830,000
$ 37,019,881
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Notes to the Financial Statements
Interfund transfers for the year ended June 30, 2003 consisted of the following:
Note 6. Interfund Transfers
Transfers from Transfers to Amount
General Fund Community Development Block Grant Fund $ 1,294
Nonmajor other governmental funds 52,446
Capital Projects Fund Debt Service Fund 2,170,919
Nonmajor other governmental funds 2,917,331
Nonmajorother governmental funds General Fund 1,612,115
Nonmajor other governmental funds 45,751
$ 6,799,856
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.
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 84 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 $20,000 of each occurrence is charged directly to the member costs, from
$20,001 to $500,000 are pooled based on a member's share of costs under $20,000, and costs from $500,001 to
$5,000,000 are pooled based on payroll. Costs of covered claims above $5,000,000 are currently paid by
reinsurance. The protection for each member is $50,000,000 per occurrence and $50,000,000 annual aggregate.
During the past three fiscal (claims) years, the general liability program has not 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.
35
City of Rosemead, California ,
Notes to the Financial Statements '
Note 7. Risk Management, Continued
'
Other coverage: The City participated in the workers' compensation program administered by State Insurance
Compensation Fund. Annual premiums were first estimated based on estimated losses for the upcoming fiscal year.
Subsequent to the close of the fiscal year, outstanding claims are valued resulting in retrospective adjustments. The
,
coverage under this arrangement includes statutory liability under California Workers' Compensation Law and any
liability under law for damages arising from employment. Settled claims have not exceeded coverage for these risks
in any of the last three fiscal (claims) years. Effective October 1, 2003, the City contracted with the California Joint
,
Powers Insurance Authority (Authority) for workers' compensation 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.
t
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
'
California Public Employee Retirement System (CaIPERS). The value of the annuity contract for retired employees is
$131,913 as of June 30, 2003.
'
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. CalPERS 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.
CaIPERS issues a publicly available financial report that includes financial statements and required supplementary
That report may be obtained from their executive office at 400 P Street
Sacramento
California 95814
information
'
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,
.
.
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 CaIPERS.
'
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Annual pension cost: For the fiscal year ended June 30, 2003, the City
s annual pension cost of $488,551 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 CaIPERS' assets was determined using techniques that smooth the effects of short-term volatility in
,
the market value of investments over a three-year period. CaIPERS' 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.
,
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Notes to the Financial Statements
Note 8. Retirement Plan, Continued
Three-year trend information for CaIPERS:
Annual
Percentage
Pension Cost
of APC
Net Pension
Fiscal Years Ended June 30,
(APC)
Contributed
Obligation
2001
$
210,241
100
$
2002
213,547
100
2003
488,551
100
Required supplementary information funded status of plan:
Entry Age
Unfunded/
Normal
Actuaarial
(Over-
Annual
UAAL'
Valuation
Accrued
Value of
funded)
Funded
Covered
as a % of
Date
Liability
Assets
Liability
Ratio
Payroll
Payroll
June 30, 2000
$ 5,098,416
$ 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 II Systems
whereby the City will contribute to a supplemental employee pension plan (the plan ll), a single-employer defined
benefit pension plan administered by Phase II 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 ll. That report may be obtained by writing to Phase II 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
Q required to contribute the actuarially determined rate. The rate is 10.24% of annual covered payroll for the fiscal year
ended June 30, 2003. The City expects to fund the initial actuarial calculated accrued benefit over the first few years
of the plan II.
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City of Rosemead, California
Notes to the Financial Statements
Note 8. Retirement Plan, Continued
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.
The most recent actuarial valuation for the plan II was completed in November 2002, as of the fiscal year ended
June 30, 20N. Other significant information from this actuarial calculation was as follows:
Actuarial liability over plan II assets $1,923,463
Unfunded prior service costs 2,225,016
Treatment of actuarial gains and losses 20-year amortization period for past service cost
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, 2003. Currently, expenditures will
be recorded as incurred; however, the GASB is currently working on an exposure draft to address the accounting and
disclosure treatment for this type of plan. There were no expenditures incurred during the year ended June 30, 2003.
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, 1996, 1997 and 1998 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, 2003, the accumulated set-aside amount not yet funded was approximately
$4,947,000. As required by law, the Commission devised a plan to fuund 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 from the Capital Projects Fund.,
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's1contribution 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
38
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I 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 $25,000,000 judgment against the Los
0 Angeles County Sheriffs' Department, which Los Angeles County has since paid. Approximately $20,000,000 is still
due Los Angeles County from cities within the liability pool, including the City of Rosemead. The City believes its
share of this liability is approximately 3%, or $600,000, which will accrue interest at 4% and be paid by the Trust
Fund to Los Angeles County (from amounts on deposit with the Trust Fund) over the next 10 years. No additional
liability will be incurred by the City. However, if the City decided to terminate its association with the Trust Fund, it
would become immediately liable for its share of the remaining liability.
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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 September 19, 2003, the
agreement remains on hold.
Note 10. Pronouncements Issued but Not Yet Adopted
GASB Statement No. 39: In May 2002, the GASB issued Statement No. 39, Determining Whether Certain
Organizations Are Component Units. This Statement amended GASB Statement No. 14, The Financial Reporting
Entity, to provide additional guidance to determine whether certain organizations for which the primary government is
not financially accountable should be reported as component units based on the nature and significance of their
relationship with the primary government. Generally, it requires reporting as a component unit an organization that
raises and holds economic resources for the direct benefit of a governmental unit. The City will be required to
implement this Statement for the fiscal year ending June 30, 2004. The City does not believe implementation of this
Statement will materially impact the City's financial statements.
GASB Statement No. 40: Beginning with the fiscal year ending June 30, 2005, the City will be adopting the
provisions of GASB Statement No. 40, Deposit and Investment Risk Disclosures. This Statement amends GASB
Statement No. 3,-Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse
Repurchase Agreements, to address common deposit and investment risks related to credit risk, concentration of
credit risk, interest rate risk and foreign currency risk. As an element of interest rate risk, this Statement requires
certain disclosures of investments that have fair value that are highly sensitive to changes in interest rates. Deposit
and investment policies related to the risks identified in this Statement also should be disclosed. Accordingly, the City
.
has not yet revised the cash and investments footnote disclosure to conform to the provisions of GASB Statement
No. 40.
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City of Rosemead, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances-
Budgetary Comparison-General Fund
Year Ended June 30, 2003
Variance With
Budgeted Amounts Final Budget-
Original Final Actual Amounts Over (Under)
Fund balance, July 1, 2002
Resources (inflows):
Property taxes and special assessments
Other taxes
Intergovernmental
Licenses and permits
Charges for services
Fines, forfeitures and penalties
Use of money and property
Other
Transfer from other funds
Amount available for
appropriations
Charges to appropriations (outflows), current:
General government
Public safety
Public works
Public health
Public recreation
Community services
Capital outlay
Transfer to other funds
Total charges to appropriations
Excess of resources over (under)
Charges to appropriations (outflows)
Fund balance, June 30, 2003
See Notes to Required Supplementary Information.
$ (33,990) $ (33,990) $ 18,336,848 $ 18,370,838
1,500
1,500
1,514
14
4,615,000
4,615,000
5,216,294
601,294
4,844,930
4,844,930
5,068,442
223,512
865,600
865,600
1,243,995
378,395
400,140
400,140
480,115
79,975
315,000
315,000
363,427
48,427
750,450
750,450
446,837
(303,613)
12,500
12,500
9,184
(3,316)
1,692,220
1,692,220
1,612,115
(80,105)
13,497,340 13,497,340 14,441,923 944,583
2,710,310
2,793,880
2,753,306
(40,574)
5,553,200
5,535,150
5,267,537
(267,613)
549,370
549,370
255,244
(294,126)
107,240
101,600
76,978
(24,622)
3,006,950
3,045,950
2,991,866
(54,084)
1,586,480
1,662,340
1,666,309
3,969
30,200
78,780
62,862
(15,918)
-
-
53,740
(53,740)
13,543,750
13,767,070
13,127,842
(746,708)
(46,410) (269,730) 1,314,081 1,691,291
$ (80,400) $ (303,720) $ 19,650,929 $ 20,062,129
43
City of Rosemead, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances-
Budgetary Comparison-Community Development Block Grant Fund
Year Ended June 30, 2003
Variance from
Budgeted Amounts Final Budget-
Original Final Actual Amounts Over (Under)
Fund balance, July 1, 2002
Resources (Inflows):
Intergovernmental
Transfers from other funds
Amount available for
appropriations
Charges to appropriations (outflows), current
Public works
Community services .
Capital outlay
Total charges to appropriations
Excess of resources
3,058,904 3,058,904 2,166,849 (892,055)
- - 1,294 1,294
3,058,904 3,058,904 2,168,143 (890,761)
917,145 917,145 343,276
(573,869)
2,141,759 2,585,259 1,604,635
(980,624)
220,232
220,232
3,058,904 3,502,404 2,168,143
(1,334,261)
over (under)
Charges to appropriations
(outflows) (443,500) 443,500
Fund balance, ending $ $ (443,500) $ $ 443,500
See Notes to Required Supplementary Information.
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I Notes to Required Supplementary Information
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
a 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.
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City of Rosemead, California '
Combining Balance Sheet-Nonmajor Governmental Funds-Special Revenue Funds '
June 30, 2003
1
Air Quality
Traffic State Management Local Public '
Assets Safety Gas Tax District Transportation Transportation
Cash and Investments $ - $ 471,525 $ 304,492 $ 43,647 $ 2,352,618 t
Receivables 48,679 8,000 16,529 - 137,345
Prepaid items - - - - -
Total assets $ 48,679 $ 479,525 $ 321,021 $ 43,647 $ 2,489,963 '
Liabilities and Fund Balances
'
Liabilities
Accounts payable and
accrued liabilities
$ - $ 76,678
$ 27,480 $
11,637
$ " 117,911
'
Due to other funds
48,679 -
-
-
-
Total liabilities
48,679 76,678
27,480
11,637
117,911
Fund Balances
'
Reserved for:
Low-moderate income housing
Prepaid items
'
Unreserved, undesignated
402,847
293,541
32,010
2,372,052
Designated for redevelopment
projects
-
-
-
-
'
Total fund balances
402,847
293,541
32,010
2,372,052
Total liabilities and
fund balances
$ 48,679 $ 479,525
$ 321,021 $
43,647
$ 2,489,963
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a
a
a
a
a
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Low-Moderate Rosemead
Income
Housing
Federal
Street
Narcotics Housing
Development
Highway
Lighting
Seizure Set-Aside
Corporation
Grant
Total
$ 568,646
$ 12,861 $ 870,540
$ 778,467
$ 184,884 $
5,587,680
8,695
- 2,363
11,872
-
233,483
-
-
3.000
3.000
$ 68,393 $ 12,861 $ $ 41,961 $ $ 356,921
- - 48,679
68,393 12,861 41,961 405,600
872,903 - 872,903
- 3,000 - 3,000
508,948 - 184,884 3,794,282
- - 748,378 - 748,378
508,948 872,903 751,378 184,884 5,418,563
$ 577,341 $ 12,861 $ 872,903 $ 793,339 $ 184,884 $ 5,824,163
49
City of Rosemead, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances-Non major
Governmental Funds-Special Revenue Funds
June 30, 2003
Air Quality
Traffic
State
Management
Local
Safety
Gas Tax
District
Transportation
Revenues:
Property taxes and special assessments
$
$ -
$ -
$
Intergovernmental
1,010,819
63,705
Fines, forfeitures and penalties
282,317
-
Use of money and property
-
5,456
6,600
1,091
Total revenues
282,317
1,016,275
70,305
1,091
Expenditures:
Current:
General government
Public safety
Public works
Community services
Capital outlay
Total expenditures
Other financing sources (uses):
Operating transfers:
From other funds
(To) other funds
Total other financing sources
Revenues and other financing sources
over(under)expenditures
Fund balance, beginning
Fund balance, ending
C
1
I
282,317 '
- 781,742 101,746 19,934
6,635
282,317 781,742 108,381 19,934 '
234,533 (38,076) (18,843)
168,314 331,617 50,853 '
$ $ 402,847 $ 293,541 $ 32,010
I
50
a
v
a
a
t
1
1
Low-Moderate
Rosemead
Income
Housing Federal
Public
Street
Narcotics
Housing
Development Highway
Transportation
Lighting
Seizure
Set-Aside
Corporation Grant
$ - $
454,090
$
$
$ $ -
$ 454,090
1,328,204
-
5,004
-
2,407,732
-
-
-
282,317
54,985
-
-
264,969 -
333,101
1,383,189
454,090
5,004
264,969-
3,477,240
- - 1,201 269,541
- 270,742
- 420,523 57,450 - -
- 760,290
1,438,274 -
- 2,341,696
50 -
- 6,685
21,561 - - - 384,784
406,345
1,459,885 420,523 57,450 1,201 654,325
3,785,758
52,446 1,570,416 1,392,666 3,015,528
- (1,392,666) (265,200) (1,657,866)
52,446 177,750 1,127,466 1,357,662
(76,696)
33,567
176,549
738,110
- 1,049,144
2,448,748
475,381
696,354
13,268
184,884 4,369,419
$ 2,372,052 $
508,948 $
$ 872,903
$ 751,378 $
184,884 $ 5,418,563
51
City of Rosemead, California
Combining Schedule of Revenues and Expenditures-Budget and Actual-
Nonmajor Special Revenue Funds
June 30, 2003
Variance
Favorable
Budget Actual (Unfavorable)
Traffic Safety
Total revenues $ 280,000 $ 282,317 $ . 2,317
Total expenditures 280,000 282,317 (2,317)
Net change in fund balance -
State Gas Tax
Total revenues 954,100 1,016,275 62,175
Total expenditures 921,700 781,742 139,958
Net change in fund balance 32,400 234,533 202,133
Air Quality Management District
Total revenues 62,300 70,305 8,005
Total expenditures 286,000 108,381 177,619
Net change in fund balance (223,700) (38,076) 185,624
Local Transportation
Total revenues 24,450 1,091 (23,359)
Total expenditures 68,800 19,934 48,866
Net change in fund balance (44,350) (18,843) 25,507
Public Transportation
Total revenues 1,250,000 1,383,189 133,189
Total expenditures 1,565,440 1,459,885 105,555
Net change in fund balance (315,440) (76,696) 238,744
Street Lighting
Total revenues 370,000 454,090 84,090
Total expenditures 456,000 1,459,885 (1,003,885)
Net change in fund balance (86,000) (1,005,795) (919,795)
Narcotics Seizure
Total revenues - 5,004 5,004
Total expenditures 59,700 57,450 2,250
Net operating transfers 119,180 52,446 (66,734)
Net change in fund balance 59,480 - (59,480)-
52
LJ
1
1
h
1
1
1
I
City of Rosemead, California
a Combining Schedule of Revenues and Expenditures-Budget and Actual-
Nonmajor Special Revenue Funds, Continued
June 30, 2003
0
0
I
0
I
I
I
1
1
Actual
Variance
Favorable
- 1,201 (1,201)
36,067 177,750 141,683
36,067 176,549 140,482
Low-Moderate Income Housing Set-Asic
Total revenues
Total expenditures
Net operating transfers
Net change in fund balance
327,200
264,969
(62,231)
1,408,800
654,325
754,475
1,079,000
1,127,466
48,466
(2,600)
738,110
740,710
Rosemead Housing Development Corporation
Total revenues
Total expenditures
Net operating transfers
Net change in fund balance
3,268,050 3,477,240 209,190
5,105,920 4,820,116 152,336
1,234,247 1,357,662 123,415_
$ 9,608,217 $ 9,655,018 $ 484,941
Totals
Total revenues
Total expenditures
Net operating transfers
Net change in fund balance
53
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54
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a
0
a
v
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
T
I
S
T
C
A
L
I
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55
CITY OF ROSEMEAD, CALIFORNIA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
ALL GOVERNMENTAL FUND TYPES
Last Ten Fiscal Years
Fiscal
General
Public
Public
Public
Public
Year
Government
Safety
Works
Health
Recreation
1993-94
$ 2,545,662
$ 4,596,592
6 4,096,433
$ 17,665
$ 1,719,424
1994-95
1,918,204
4,666,871
4,400,953
39,852
1,901,397
1995-96
1,946,848
4,733,426
3,788,669
44,863
1,869,684
1996-97
2,053,607
4,922,197
3,349,572
45,966
2,144,066
1997-98
1,800,080
4,655,943
3,287,310
45,381
1,906,179
1998-99
1,948,412
5,259,501
8,524,188
43,844
2,030,237
1999-00
2,200,867
5,069,851
4,306,657
2,242,859
2000-01
3,023,022
5,646,028
5,438,487
59,293
2,372,023
2001-02
9,697,571
5,612,195
8,013,192
55,354
2,615,368
2002-03
3,281,690
6,027,827
3,311,963
76,978
2,991,866
(1)
All governmental fund
types, including General, Speical Revenue,
Debt Service, and
Capital Projects funds.
Operating Transfer
s have been exluded from all years.
56
0
a
a
Community
Capital
Debt
Services
Outlay
Service
Other
Total
$ 2,092,838
$ 1,897,838
$ 6,026,877
$ 115,550
$ 23,108,879
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
3,277,629
1,253,202
2,306,073
-
22,527,228
$35
$30
$25
$20
$15
$10
$5
$0
Millions
oGeneral Govt. MPublic Safety OPublic Works MPublic Recr. ®Comm. Serv.
ODebt Services MMisc.
57
199B-% 1999-20W 2000.01 2001-02 2002-03'
CITY OF ROSEMEAD, CALIFORNIA
GENERAL REVENUES BY SOURCE (1)
ALL GOVERNMENTAL FUND TYPES
Last Ten Fiscal Years
Fiscal Property
Year Tax
Special Other
Assessments Taxes
Inter-
governmental
1993-94
$ 3,185,746
$ 342,315
$ 4,011,829 $
5,985,542 $
1994-95
3,411,909
386,814
3,907,616
6,733,543
1995-96
2,671,909
365,184
3,664,031
6,155,519
1996-97
2,845,775
382,609
3,952,511
7,532,960
1997-98
2,770,865
418,502
4,134,533
6,758,226
1998-99
2,870,290
367,277
3,999,539
10,120,540
1999-00
2,990,564
428,609
4,266,791
7,359,001
2000-01
2,945,877
424,580
4,629,225
9,329,239
2001-02
3,197,754
456,328
4,417,537
11,889,649
2002-03
3,105,416
455,604
5,216,294
9,643,023
(1)
All govemmental fund types, including General, Speical Revenue, Debt Service, and
Capital Projects funds.
Operating Transfers have
been exluded from all years.
Licenses
and Permits
812,096
699,234
760,191
760,037
739,162
964,567
917,350
797,493
996,395
1,243,995
58
Q
a
8
a
1
Charges for
Services
429,932
564,962
539,055
584,033
499,492
643,385
662,094
445,059
467,598
680,096
Millions
$25
$20
$15
$10
$5
Fines,
Forfeitures
and Penalties
$ 338,786
317,969
365,400
363,938
349,322
625,756
448,675
626,127
658,184
645,744
Use of
Money and
Property
$ 1,887,659
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
Other
$ 307,415
387,606
138,159
63,262
71,628
155,534
80,540
54,094
22,668
9.184
Total
$
17,301,320
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
$0
1998-99 1999-2000 2000-01 2001-02 2002-03
®Intergoyt. =Prop. Tax oOther Taxes =Use of M & P =Misc. EAic. & Permits =Fines, For. & =Pen]
59
CITY OF ROSEMEAD, CALIFORNIA
OTHER TAX REVENUES BY SOURCE
ALL GOVERNMENTAL FUND TYPES
Last Ten Fiscal Years
Real
Fiscal
Estate
Sales and
Franchise
Year
Taxes
Use Tax
Fees
1993-94
$ 36,696
$ 2,704,229
$ 550,555
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
Transient
Occupancy
Tax
Total
$ 719,157
$ 4,010,637
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
60
CITY OF ROSEMEAD, CALIFORNIA
COMPUTATION OF LEGAL DEBT MARGIN
June 30, 2003
a
a
Total assessed valuation
Debt limit: 3.75% of total assessed valuation
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
a Legal debt margin
$34,255,000
34,255,000
61
$ 2,198,436,376
$ 82,441,364
$
$ 82,441,364
CITY OF ROSEMEAD, CALIFORNIA
ASSESSED VALUATIONS OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal
Year Land
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
$ 789,170,566
820,044,812
837,930,509
839,391,647
841,497,520
852,261,064
875,890,808
919,681,140
2001-02
971,680,932
State Assessed
Personal
Unitary and Operating
Improvements
Property
Non-unitary Property
$ 869,204,989 $
10,509,734 $
138,033,544
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
2002-03 1,038,911,981 1,012,447,390 7,960,820 127,445,268
Source: Los Angeles County Auditor-Controller, Tax Division
62
0
0
0
a
a
a
a
a
0
Locally Assessed
Personal
Property
Land Improvements
Property
Total
Exemptions
$ 15,022,792
$ 29,128,797
$ 1,851,070,422
$ 21,456,065
13,103,797
26,191,169
1,895,166,324
24,386,741
14,186,602
25,615,938
1,886,330,140
28,458,429
14,583,278
25,615,938
1,886,096,194
33,592,337
13,161,523
25,688,653
1,984,952,029
28,607,474
13,954,969
26,590,993
1,901,722,091
28,559,132
14,389,698
30,053,289
1,952,025,396
33,003,778
14,217,867
34,031,964
2,020,655,081
40,082,928
15,398,799
34,028,841
2,124,876,110
43,302,662
16,366,841
34,264,631
2,237,396,931
38,960,555
N
ET PRO
PERTY VALUE
Millions
$2500
$2000
$1500
$1000
$500
$0
199594
63
Net
Property
Value
$ 1,829,614,357
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
1980.85 1895-88 199W 1987-98 1888-98 198&2000 5000-04 2001-02 2(82-03
CITY OF ROSEMEAD, CALIFORNIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Percentage
Assessment
Assessment
Collected
Fiscal Year
Levy
Collected
Currently
1993-94
$ 801,666
$ 774,534
96.62%
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%
64 1
CITY OF ROSEMEAD, CALIFORNIA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
LIGHTING AND MAINTENANCE DISTRICT
l Y
Fi
t T
L
ears
sca
as
en
Percentage
l Y
Assessment Assessment
Collected
L
Collected
Currently
ear
Fisca
evy
Q
1993-94
$ 347,298 $ 343,507
98.91
%
1994-95
339,205 388,150
114.43
%
a
1995-96
350,258 366,475
104.63
%
a
1996-97
373,885 384,184
102.75
%
a
1997-98
377,243 419,868
111.30
%
1998-99
383,237 368,525
96.16
%
a
1999-00
396,460 430,048
108.47
%
a
2000-01
414,275 426,122
102.86
%
2001-02
436,305 457,876
104.95
%
2002-03
464,400 455,604
98.19
%
65
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
1993-94
$ 2,055,000
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
(1) Includes all Governmental Funds.
Total Debt
Interest Service
$ 1,137,474
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
$ 3,192,474
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
Debt Service
Total (1)
To Total
General
General
Expenditures
Expenditures
$ 23,108,879
13.81%
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%
66
1
1
1
A
D
1
1
1
1
e
0
$25
$20
$15
$10
$5
$0
1993-94
$35
$30
$25
$20
$15
$10
$5
$0
1998-99
TOTAL BONDED DEBT TO
TOTAL GENERAL EXPENDITURES
Millions
Millions
67
199495 1995-96 1996-97 1996-97 1997-98
1999-2000 2000-01 2001-02 2002-03
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
1993-94
$ 2,055,000
$ 1,137,474
$ 3,192,474
53,798
$ 59.34
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
i
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
68
1
CITY OF ROSEMEAD, CALIFORNIA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR TOT
AL BONDED DEB
T TO TOTAL ASSESSED VALUATION
a
t T
Fi
l Y
L
as
en
sca
ears
a
Debt Service
Fiscal
Total Debt
Total
Assessed
To Total
Assessed
Year
Principal
Interest
Service
Valuation
Valuation
a
0
17%
1993-94
$ 2,055,000
$ 1,137,474
$ 3,192,474 $
1,829,614,357
.
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%
69
CITY OF ROSEMEAD, CALIFORNIA
PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS
(Per $100 of Assessed Valuation)
Last Ten Fiscal Years
Los
Fiscal
City of
Angeles
School
Water
Year
Rosemead
County
Districts
Districts
1993-94
0
1.001713
0.073026
0.044100
1994-95
0
1.001993
0.080512
0.038900
1995-96
0
1.001604
0
0.038900
1996-97
0
1.001604
0
0.038900
1997-98
0
1.001604
0
0.038900
1998-99
0
1.001604
0
0.038900
1999-2000
0
1.001604
0
0.038900
2000-01
0
1.001604
0
0.038900
2001-02
0
1.001604
0
0.038900
2002-03
0
1.001604
0
0.038900
Source:
Tax Rates By Tax
Rate Areas, Los
Angeles Cou
nty Tax Collector
Los Angeles County
Flood Sanitation
0.004212
0.006041
0.001991
0.001991
0.001991
0.001991
0.001991
0.001991
0.001991
0.001991
0
0
0
0
0
0
0
0
0
0
Total
1.123051
1.127446
1.042495
1.042495
1.042495
1.042495
1.042495
1.042495
1.042495
1.042495
70
1
a CITY OF ROSEMEAD, CALIFORNIA
a
SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT
June 30, 2003
a
2002.03 Assessed Valuation: $1,794,941,220 (after deducting $276,049,888
a
redevelopment incremental valuation)
Direct and Overlapping Tax and Assessment Debt:
%Applicable
Debt 6130103
Los Angeles County
0.305
%
$92,186
Los Angeles County Flood Control District
0.314
484,031
Metropolitan Water District
0.159
706,429
a
Los Angeles Community College District
0.266
1,348,700
Pasadena Area Community College District
2.722
898,260
Montebello Unified School District
1332
1,252,618
San Gabriel Unified School District
1.036
294,562
El Monte Union High School District
14.473
3,618,250
El Monte School District
0.004
1,014
Garvey School District
44.645
3,549,234
Rosemead School District
66.654
5,109,029
Los Angelees County Regional Park and Open Space Assessment District
0.305
1,203,942
City of Rosemead
100.000
-
Total Direct and Overlapping Tax and Assessment Debt:
$18,558,255
Overlapping General Fund Obligation Debt:
Los Angeles County General Fund Obligations
0.305
%
$4,801,181
Los Angeles County Pension Obligations
0.305
4,736,505
Los Angeles County Superintendent of Schools Certificates of Participation
0.305
84,651
Los Angeles County Sanitation District #2 Authority
0.005
2,260
Los Angeles County Sanitation District #15 Authority
6.745
3,120,393
Los Angeles Community College District Certificates of Participation
0.266
229,505
Pasadena Area Community College Certificates of Participation
2.722
156,107
Montebello Unified School District Certificates of Participation
1.732
236,331
San Gabriel Unified School District Certificates of Participation
1.036
98,420
El Monte Union High School District Certificates of Participation
14.473
156,308
El Monte School District and Certificates of Participation
0.0004
253
'
Garvey School District Certifcattes of Participation
44.645
1,263,454
Rosemead School District Certificates of Participation
66.654
6,038,852
'
San Gabriel Valley Mosquito Abatement District Certificates of Participation
Total Gross Direct and Overlapping General Fund Obligation Debt:
2.98
35,462
$20,959,682
Less: Los Angeles County Certificates of Participation (100% self-supporting
from leasehold revenues on properties in Manna Del Rey)
253,852
Total Net Direct and Overlapping Bonded Debt:
$20,705,830
Gross Combined Total Debt
$39,517,937 (1)
'
Net Combined Total Debt
d t
x
t
$39,264,085
gage revenue an
a
(1) Excludes tax and revenue anticipation notes, revenue, mor
allocation bonds and non-bonded capital lease obligations.
'
Ratios to Assessed Valuations: Direct Debt
0.00
%
Total Overlapping Tax 8 Assessment
0.90
%
Gross Combined Total Debt
2.20
%
'
Net Combined Total Debt
2.19
%
State School Building Aid Repayable as of 6130103 $ 0
Source: California Municipal Statistics, Inc.
-
71
CITY OF ROSEMEAD, CALIFORNIA
DEMOGRAPHIC STATISTICS
Fiscal Year
1993-94
1994-95
1995-96
Population (1)
53,798
53,639
54,487
55,128
55,760
56,664
57,328
55,351
55,289
56,065
Last Ten Fiscal Years
Households (2)
14,190
Income
Per Capita (3)
21,661
21,562,
23,501
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
Source:
14,195
14,238
14,254
14,278
14,313
14,345
14,350
14,460
14,506
24,945
25,719
26,773
28,276
29,522
30,611
Unavailable
(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.
72
Unemploy-
ment Rate
ment Rate (3)
9.70%
7.40%
7.90%
6.90%
6.50%
5.60%
5.40%
5.90%0
6.10%
6.80%
60
50
40
30
20
10
0
60
50
40
30
20
10
0
DEMOGRAPHIC STATISTICS
Thousands
Thousands
73
1993-94 199495 1995-96 1996-97 1997-98
oHouseholds Dlncome Per Capita OPopulation
1998-99 1999-2000 2000-01 2001-02
0Households oincome Per Capita C3 Population
CITY OF ROSEMEAD
PRINCIPAL TAXPAYERS
June 30, 2003
Percentage
of Total City's
Assessed
Assessed
Valuation
Valuation
Southern California Edison Company
$204,319,473
9.29%
Countrywide/California Federal
9,070,847
0.41%
Panda Restaurant Group
8,330,000
0.38%
Hsi Lai University
7,757,417
0.35%
Diamond Square
7,252,770
0.33%
Vikon Center
3,800,000
0.17%
Lucky Plaza
2,700,000
0.12%
Quanjude Center
2,633,896
0.12%
Irish Communications/Construction
2,953,693
0.13%
Garvey Wholesale Ligour
2,039,657
0.09%
$250,857,753
11.41%
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.
74
CITY OF ROSEMEAD, CALIFORNIA
SCHEDULE OF INSURANCE IN FORCE
June 30, 2003
Policy
Expiration
Number
Date
Type of Coverage
Southern California Joint Powers
Insurance Authority
07/01/04
General Liability
ti
W
k
C
State Compensation Insurance Fund
228962-90
09/30/03
on
ompensa
or
ers
Coverage
Kelley, Jiggins, Towle & Blue
05743382
07/01/04
Public Employees
Blanket Bond
Kelley, Jiggins, Towle & Blue
9922993-03
10/19/04
Boiler and Machinery
Kelley, Jiggins, Towle & Blue
2781100
07/01/04
Notary Public Bond
Error & Omissions
Kelley, Jiggins, Towle & Blue
CP8119571C
07/01/04
Property Insurance
Source: City Finance Department
'
75
CITY OF ROSEMEAD, CALIFORNIA
CONSTRUCTION ACTIVITY
Last Ten Fiscal Years
l
Number of
Building Permit
Number of
Fiscal
Residential
Valuations (I
n Thousands)
Building
Year
Dwelling Units
Residential
Nonresidential
Total
Permits Issued
1993-94
22 $
10,047,264
$ 7,651,470
$ 17,698,734
858
1994-95
37
10,880,831
3,552,722
14,433,553
608
1995-96
42
12,267,012
2,094,550
14,361,562
652
1996-97
24
9,787,980
4,325,690
14,113,670
611
1997-98
35 _
7,270,943
14,133,409
21,404,352
522
1998-99.
28
8,973,771
11,726,986
20,700,757
595
1999-00
42
23,062,147
5,247,903
28,310,050
478
2000-01
24
13,440,052
12,273,661
25,713,713
423
2001-02
13
7,202,314
19,089,443
26,291,757
487
2002-03
49
17,035,414
11,560,779
28,596,193
551
76
I CITY OF ROSEMEAD, CALIFORNIA
MISCELLANEOUS STATISTICS
a June 30, 2003
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 Redevelopment Agency, activated on
January 4, 1972, includes 511 acres within he City's 5.5 square miles.
Population 56,065
Land Area 5.5 square miles
Streets & Alleys 74.42 miles
Parks 50 acres
Percentage of Land Use:
Residential
64 %
Public Facilities
14
Commercial (stores & shops)
Mixed Commercial/Residential
9
7
Office & Light Industrial
6
Public Facilities:
100 %
Community Centers
2
Swimming Pools
2
Libraries
2
Gymnasiums
1
Ball Diamonds (lighted)
4
Tennis Courts (lighted)
5
'
Education Facilities:
Elementary Schools
10
Secondary Schools
3
'
High Schools
2
Fire Protection: *
Number of firefighters and officers
37
1
Police Protection:
Parking Control (personnel)
3
Police Protection (sworn personnel)
38
Major Employers and Number of Employees:
Southern California Edison Company
4,500
'
Countrywide Mortgage
800
Hermetic Seal Corporation
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.
' 77
City of Rosemead
California
5
101
ollv
Pasadena
10
605
210
San Bernardino
10
W Covina
60 Riverside
Santa
Monica Los
110
Fullerton
Anaheim
Long Beach
5
N
Orange
San
Diego
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 56,605
Whittier
78
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