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1999 CAFR1 1 1 1 1 1 1 1 i 1 1 1 1 1 1 1 1 1 i CITY OF ROSEMEAD California COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 309 1999 F [ Lv i I 1 1 1 1 1 E 1 1 1 1 1 1 1 i 1 1 1 ( F ROSEMEAD, CALIFORNIA FINANCIAL ET FISCAL YEAR ENDED JUNE 30, 1999 Prepared by the Finance Departmel Karen L 0gawo, Finance Director 1 1 ' CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT ' Fiscal Year Ended June 30, 1999 ' TABLE OF CONTENTS ' INTRODUCTORY SECTION Page Letter of Transmittal i - xii ' List of Principal Officials xiii Organizational Chart AV Certificate of Award for Outstanding Financial Reporting xv ' Certificate of Achievement for Excellence in Financial Reporting xvi ' FINANCIAL SECTION ' Independent Auditors' Report 1 General Purpose Financial Statements: ' Combined Balance Sheet - All Fund Typed and Account Groups 2-3 ' Combined Statement of Revenue, Expenditures and Changes in Fund Balances - All Governmental Fund Types 4-5 Combined Statement of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual - General, Special Revenue, Debt Service and Capital Project Fund Types 6-7 ' Statement of Changes in Plan Net Assets - Pension Trust Fund 8 ' Notes to Financial Statements 9-26 Combining and Individual Funds and Account Groups Financial Statements (Supplementary Information): ' GENERAL FUND: Balance Sheet 30 ' Statement of Revenue, Expenditures and Changes in Fund Balance 31 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1999 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) Combining and Individual Funds and Account Groups (Supplementary Information): (cont.) GENERAL FUND: (cont.) Revenue Detail - Budget and Actual Expenditure Detail - Budget and Actual SPECIAL REVENUE FUNDS: Combining Balance Sheet - All Special Revenue Funds Page t 32 ' 33 ' 38-41 Combining Statement of Revenue, Expenditures and Changes in Fund Balances - All Special Revenue Funds 42 - 45 Statement of Revenue, Expenditures and Changes In Fund Balance - Traffic Safety Fund 46 Statement of Revenue, Expenditures and Changes in Fund Balance - State Gas Tax Fund 47 Statement of Revenue, Expenditures and Changes in Fund Balance - Air Quality Management District 48 Statement of Revenue, Expenditures and Changes in Fund Balance - Local Transportation Fund 49 Statement of Revenue, Expenditures and Changes in Fund Balance - Public Transportation Fund 50 Statement of Revenue, Expenditures and Changes in Fund Balance - Community Development Block Grant Fund 51 1 I I L 11 I CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1999 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) Combining and Individual Funds and Account Groups (Supplementary Information): (cont.) SPECIAL REVENUE FUNDS: (cont.) Page Statement of Revenue, Expenditures and Changes in Fund Balance - 1976 Community Parklands Grant Fund 52 Statement of Revenue, Expenditures and Changes in Fund Balance - Street Lighting Fund 53 Statement of Revenue, Expenditures and Changes in Fund Balance - Narcotics Seizure Fund 54 Statement of Revenue, Expenditures and Changes in Fund Balance - Low-Moderate Income Housing Fund 55 Statement of Revenue, Expenditures and Changes in Fund Balance - Rosemead Housing Development Corporation 56 Statement of Revenue, Expenditures and Changes in Fund Balance - California Wildlife Fund 57 Statement of Revenue, Expenditures and Changes in Fund Balance - Federal Highwy Grants Fund 58 CAPITAL PROJECTS FUND: Balance Sheet - Capital Projects Fund 60 Statement of Revenue, Expenditures and Changes in Fund Balance 61 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual 62 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1999 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) Combining and Individual Funds and Account Groups (Supplementary Information): (cont.) CAPITAL PROJECTS FUND (cont.): DEBT SERVICE FUND: Balance Sheet - Debt Service Fund Statement of Revenue, Expenditures and Changes In Fund Balance Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual FIDUCIARY FUND TYPES: Combining Balance Sheet Combining Statement of Changes in Assets and Liabilities - All Agency Funds ACCOUNT GROUPS: Statement of General Fixed Assets Statement of Changes of General Fixed Assets YEAR 2000 COMPLIANCE: Year 2000 Compliance Page 64 65 66 68 69 72 73 77 1 1 1 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1999 TABLE OF CONTENTS (cont.) STATISTICAL SECTION General Governmental Expenditures by Function - All Governmental Fund Types 80 - 81 General Revenues by Source - All Governmental Fund Types 82 - 83 Other Tax Revenues by Source - All Governmental Fund Types 84 - 85 Assessed Valuations of Taxable Property 86 - 87 Special Assessment Levies and Collections - Lighting and Maintenance District 88 Computation of Legal Debt Margin 89 Ratio of Annual Debt Service Expenditure for Total Bonded Debt to Total General Expenditures 90 - 91 Ratio of Annual Debt Service Expenditure for Total Bonded Debt to Assessed Valuation 92-- Ratio of Annual Debt Service Expenditure for Total Bonded Debt Per Capita 93 Property Tax Rates - All Overlapping Governments 94: Schedule of Direct and Overlapping Bonded Debt 95 Demographic Statistics 96 - 97 Principal Taxpayers 98 Schedule of Insurance in Force 99 Construction Activity 100 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1999 TABLE OF CONTENTS (cont.) STATISTICAL SECTION (cont.) Miscellaneous Statistics Vicinity Map Page 101 102 I 1 ~ N ~ T ~ R ~ D 1 II b ~ C ~ T 0 ~ N 1 i i MAYOR: JOE VASOUEZ ' MAYOR PRO TEM: MARGARET CLARK COUNCILMEMBERS: ROBERT W. BRUESCH ' JAYT IMPERIAL GARY A. TAYLOR I i 1 1 i I I December 7, 1999 The Honorable Mayor and Members of the Rosemead City Council Councilmembers: Pps,,eiwad 8838 E. VALLEY BOULEVARD • P.O. BOX 399 ROSEMEAD, CALIFORNIA 91770 TELEPHONE (626) 288-6671 FAX (626) 307-9218 Submitted for your information and consideration is the Annual Financial Report for the fiscal year ended June 30, 1999. This is a combined report of the City of Rosemead, Rosemead Redevelopment Agency and the Rosemead Housing Development Corporation. The report is prepared by the City's Finance Department and made available to residents, the City Council, and the investment community. The responsibility for both the accuracy and completeness of the financial report rests with the City. To the best of our knowledge the information presented is accurate in all material aspects and includes all disclosures necessary to enable the reader to gain an understanding of the City's financial activities. GENERAL INFORMATION I i I I I I The City of Rosemead was incorporated on August 4, 1959, and operates as a general law city. It has a Council-Manager form of government, with five council members elected at large for four-year overlapping terms. The Council selects a Mayor and a Mayor Pro-Tem each year from its membership. The Council is responsible for enacting local legislation, establishing general policy for the City and adopting annual budgets. The Council's duties include the appointments of a City Manager, City Attorney, City Clerk, City Treasurer, and the selection of citizens to serve on the City's Planning Commission and Traffic Commission. The City Council also acts as the Redevelopment Agency and Rosemead Housing Development Corporation Board, and oversees the responsibility for the operation and accountability of the Redevelopment Agency, Building Rehabilitation Appeals, and the Rosemead Housing Development Corporation. I I The City of Rosemead has a population of 56,664 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 eastlwest direction providing convenient access to all areas of Southern California. In addition, major rail and public bus lines provide convenient regional transportation options. Sales tax is the City's major revenue source and is based on light manufacturing, commercial, and local retail business. This accounts 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%). HIGHLIGHTS OF FISCAL YEAR 1998-99 Administration: The year has seen continued improvement on the economic front at the state and regional levels, with the regional economy finally ending its reversionary phase, and showing healthy growth in most sectors. This economic expansion has been mirrored by continued regional population growth, which, while more modest than that of the late 1980s, nonetheless shows strong rates of natural increase and immigration. Migration, too, from other parts of the US has returned to the positive side. On a more cautious note, however, there is concern that despite the rising income, both the cost of living in the region and the patterns of income distribution has meant that a portion of the population remains unable to afford a basic standard of living. Governor Davis' first budget plan presented some encouragement to local government agencies. Given the marked change in policy with the new administration's admonition that local government is owed a return of revenue from the state, Rosemead and other local government entities are working hard to see this rhetoric translated into tangible commitments. As no revenues were budgeted for that return, we view this as a first step toward restoring state and local government relations. Until solid commitments are in place, local government views the Governor's budget as a status quo budget with the exception of increased funding for education. A generally positive economic outlook is based upon healthy revenue trends, as evidenced by a second year of substantial state budget surpluses. It is anticipated that this trend will be with state and region for at least the next two years and maybe even beyond. Personal income also appears to be undergoing a healthy upswing. Increased trends in income tax withholding seem to support this observation. Engineering: The City completed several capital improvement projects during the fiscal year. Two street resurfacing projects were performed, wherein twenty-five (25) street segments were resurfaced. In addition, street lighting systems were upgraded 1 1 1 1 1 1 1 i 1 1 I i 1 1 I i i 1 1 ' where necessary. Excerpt for planting of trees, construction of the Valley Boulevard project was completed wherein sidewalk was reconstructed, concrete pavement at Rosemead Boulevard was installed, the entire street was overlaid and new streetlights were installed. Lorica Street west of Temple City Boulevard was widened to 36 feet along with the construction of curb, gutter, sidewalk, storm drain, streetlights and parkway trees. Reconstruction on Highcliff Street concluded this fiscal year. Planning: As for public facility tenant improvements, Southern California Edison is continuing with their $35-540 million interior renovations of their corporate headquarters including the completion of a new chiller plant and ADA upgrades to the north entrance of G01 valued at $5,000,000. Further Don Bosco Technical High School has recently completed a $651,000 renovation of their Science building. 1 Rite Aide has completed their new store at the corner of Ivar and Valley Boulevard, valued at $750,000. Financial difficulties with the Rite Aid Corporation may hinder immediate occupancy of the structure. Countrywide Corporation located on Walnut ' Grove Avenue has completed the second phase of their interior renovations for the 2nd floor of the structure valued at $120,000. Irish Construction has completed an addition to their corporate offices estimated at $250,000. ' The first phase of a 31 unit single-family residential development at Del Mar and ' Graves Avenue was completed this year. Second$hase includes 17 additional homes that are currently in plan check and construction is scheduled to begin in early 2000. 1 1 I Parks and Recreation: The City completed various park and recreation improvements during the fiscal year. Rosemead Community Recreation Center improvements included purchases of office equipment, commercial grade carpet cleaner, repainted and wallpapered throughout the center, replaced room partitions, and installed rubberized surface in the pre-school play area. Rosemead Park improvements included renovation of restrooms and replacement of picnic shelters throughout the park. Rosemead Pool improvements included installation of a heat exchanger for the pool boilers and new fence post and chain link fence. Garvey Pool improvements included replacement deck office doors, exterior painting of pool building, and replacement diving boards. Zapopan Park Improvements included wrought iron fence and gate, resurfacing basketball court and replacement swing set. Zapopan Center improvements included purchases of office equipment and portable sound system. I iii PROSPECTS FOR THE FUTURE The City has implemented a first-time homebuyer program through the Rosemead Housing Development Corporation. The program is intended to assist potential homeowners in the community with up to $20,000 down payment assistance. The program was implemented. The City has assisted four (4) residents in purchasing a home within the community. In addition, the City is continuing with the development of the 25,000 square foot recreation center and seventy-two (72) senior housing units on the City owned parcel at 9118 Garvey Avenue. The City plans to fund the project with a variety of funds including Redevelopment Agency's Low-Moderate Income Housing Set-Aside funds, Community Development Block Grant (CDBG) HOME funds and the proceeds from a county wide recreational facilities bond measure (Proposition A) approved by the voters on November 5, 1996. The Rosemead; City Council, acting as the Rosemead Housing Development Corporation Board, has retained an architect and design of the project is now underway. The project is expected to begin construction this summer. The street lighting system will be upgraded where necessary. A slurry seal project is also proposed whereby over forty (40) street segments will be slurried along with the City Hall parking lot. A project to repair damaged sidewalk will commence in Fall 1999. Gas tax, Redevelopment Agency, SLTPP and CDBG funds will fund theses projects. Undergrounding of the utilities on San Gabriel Boulevard between Garvey Avenue and Hellman Avenue will be completed in early Spring 2000 and will be funded by Edison Rule 20A funds. To mitigate flooding problems on Kelburn Avenue in the vicinity of Garvey Park and on Delta and Earle Avenues, storm drains will be constructed in these streets beginning in Summer 1999. In Spring 2000, a storm drain in Grand Avenue between Walnut Grove Avenue and the Rubio Wash will be constructed to intercept storm runoff in the area. The engineering design of several other projects will get underway in Fiscal Year 1999-2000. These include street and storm drain improvements in Olney Street, Ralph Street and Hart Avenue, the restriping of Garvey Avenue, bridge retrofit work at the Walnut Grove Bridge over the Alhambra Wash and curb house numbering. Southern California Edison will be marketing two (2) large properties within the City of Rosemead. One of these properties includes the vacant 23 acre site at the corner of Rush Street and Walnut Grove Avenue. Trenching and soil samples have been conducted over the past few months to identify the exact location of the inactive i iv i 1 earthquake fault line that runs through the site. The second large parcel, 6.3 acres, currently being marketed is located at the northern border of Rosemead between 1 Walnut Grove and Earle Avenue. Edison previously used this facility for training and vehicle storage/maintenance. ' Rosemead Community Recreation Center future improvements includes purchases of storage cabinets, replacement desks and new counters. Rosemead Park improvements include resurfacing pavement area, regarding baseball diamond, purchase picnic tables and computer equipment. 1 Rosemead Pool improvements include replacing the pool, installation of new doors, new windows, handicap lift and computer equipment. Garvey Pool improvements include storage unit, supplies and new roof for pool building. Zapopan Park Improvements includes purchase of two swing sets for tot lot area. 1 1 1 D 1 1 1 1 1 1 i 1 REPORTING ENTITY AND ITS SERVICES The reporting entity is comprised of all funds and account groups of the City of Rosemead, Rosemead Redevelopment Agency, and Rosemead Housing Development Corporation. The Rosemead Redevelopment Agency 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 Library District, and the Los Angeles County Sanitation District. 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. REPORTING STANDARDS The financial reports have been prepared in conformance with the generally accepted accounting principles as set forth by the Governmental Accounting Standards Board v (GASB), applicable pronouncements of the American Institute of Certified Public Accountants, and the full financial disclosure guidelines of the Governmental Finance Officers Association of the United States and Canada. FINANCIAL STATEMENT 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 were no material exceptions noted in the report. The Comprehensive Annual Report is divided into the following three sections: I i 1 I I 1. Introductory Section - which includes this transmittal letter, the City's Organization Chart, and a list of the principal officials. 2. Financial Section - which includes the auditor's opinion, general purpose financial statements, and the combining and individual fund and account group financial statements. 3. Statistical Section - which includes relevant financial and non-financial data presenting historical trends and other information about the City. NOTES TO THE FINANCIAL STATEMENTS The Notes to the Financial Statements, which are part of the General Purpose Financial Statements within the Financial Section, are an integral part of the financial report and, are essential to the fair presentation and adequate disclosure of the financial position of the City, Redevelopment Agency, and the Rosemead Housing Development Corporation. The notes should be read along with the financial statements to gain a more thoroughly understanding of the information contained within this report. Your attention is specifically directed to the presentation of the City's significant accounting policies. I The fiscal operations of the City are primarily accounted for in the Governmental Funds, which include the General, Special Revenue, Debt Service and Capital Project Funds. vi I I 1 The 1998-99 Fiscal Year revenues for the' Governmental Fund types totaled $21,991,214. Presented above are the revenues by major source, which includes the percentage each source represents of the total revenues and the increase (decrease) from the prior year. ' The most notable decrease in revenues is Use of Money and Property. The most notable change in revenues is the increase shown in Intergovernmental revenues, ' which is the result of Community Development Block Grant funds and other State grant funds. ' The 1998-99 Fiscal Year expenditures for the Governmental Fund types totaled $22,581,324. Listed on the following page is a recapitulation of these expenditures by major function. The chart reflects expenditures by function as a percentage to the ' total expenditures and the incremental change from the prior fiscal year. ' The most significant increase in expenditures for 1998-99 over 1997-98 is reflected in Public Works. Majority of the increase is due to the Valley Boulevard project. The most notable expenditure decrease is in Debt Service function. ' GENERAL FUND ' The City of Rosemead remains in a strong financial position as of June 30, 1999 with a surplus of approximately twelve million eight hundred thousand dollars ($12.8). There were no residual equity transfers from any funds during the fiscal year. 1 vii GENERAL FIXED ASSETS As of June 30, 1999, the general fixed assets of the City totaled fourteen million two hundred forty-two thousand eight hundred forty-six dollars ($14,242,846). This amount represents the original cost of the assets, net of additions and deductions from July 1, 1998 to June 30, 1999, and is considerably less than their present value. The system of accounting presently recommended by the Governmental Accounting Standards Board does not allow for the recording of depreciation of general fixed assets as an expense of governmental funds. ACCOUNTING SYSTEM The City's accounting records are maintained on the modified accrual basis of accounting for the governmental fund types and agency funds. Revenue is recognized in the accounting period in which it becomes both available and measurable. Available means collectible within the current period or soon enough thereafter to pay current liabilities. The accrual basis of accounting is used for Pension Trust Fund, which recognizes revenues when earned and expenses when incurred. A system of internal accounting controls have been developed and regularly reviewed by the independent certified public accountant who audits the accounting records of viii ' the City. This system has been,designed to provide reasonable, but not absolute assurance that: 1 1. Assets have been protected from losses arising from unauthorized use or disposition. ' 2. Financial records can be relied upon for preparing adequate financial statements and maintaining accountability for assets. All internal control evaluations occur according to the above criteria. We believe that ' the City's controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. I BUDGETARY CONTROL ' In addition to internal accounting controls, the City also maintains budgetary controls. The objective of these budgetary controls are to insure compliance with the City's budget policy embodied in the annual appropriated budget approved by the city Council. Activities of the general fund, special revenue funds, debt service fund, and capital projects fund are included in the annual approved budget. r Budgetary control is maintained at a functional level by division within departments through use of object level account appropriations. Actual expenditures are compared to these appropriations. The City Manager is authorized to transfer budgeted amounts between funds within the same department. Any new appropriations must be authorized by City Council. All unexpended budgeted funds lapse at the end of the budget year. The exception is A the capital projects fund because the budgeted appropriations relate to all future appropriations as well as current year appropriations. CASH MANAGEMENT ' The City and the Agency 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. ' DEBT ADMINISTRATION ' The City of Rosemead, as a general law city, is restricted from incurring general I ix obligation bonded indebtedness which would exceed 3.75% of the total assessed valuation of all real and personal property within the city. The City of Rosemead presently has no bonded indebtedness. The Rosemead Redevelopment Agency issued $34,275,000 Tax Allocation Bonds (Series A) and $2,435,000 Taxable Tax Allocation Refunding Bonds (Series B) in November 1993 to finance public improvements within the Redevelopment Agency's project area and a portion of the bond proceeds were used to defease the 1991 Tax Allocation Bonds and the 1987 Tax Allocation Notes. The 1993 Bonds (Series A and B) interest payments are due semi-annually on October 1 and April 1, and principal payments due annually on October 1. In October 1991, the Agency funded its Low-Moderate Income Housing Set Aside fund with $6,813,850 from the proceeds of the 1987 Tax Allocation Notes. The Agency prefunded the Low-Moderate Housing Income Set-Aside Fund to satisfy the set-aside requirement for fiscal years 1996-97 through 2021-22, approximately $451,187 per year. 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 33% of the calculated appropriation limit. at June 30, 1999. The City's 1999-2000 estimated revenues and budgeted expenditures indicate that by June 30, 2000 the City will be approximately 34% of the limit. OTHER INFORMATION The City of Rosemead was pleased to receive a Certificate of Award for Outstanding Financial Reporting from the California Society of Municipal Finance Offices (CSMFO) for the City's Comprehensive Annual Financial Report, Fiscal Year Ended June 30, x I I I LJ 1998. 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 ten (10) 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 Comprehensive Annual Financial Report for the fiscal year ended June 30, 1998. 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 has received a Certificate of Achievement last year. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA. ACKNOWLEDGMENTS [1 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. xi 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, Frank G. Tripepi City Manager Karen L. Oga~ Finance Director xii 1 1 CITY OF ROSEMEAD, CALIFORNIA CITY OFFICIALS June 30, 1999 ELECTED OFFICIALS: City Council: APPOINTED OFFICIALS: Planning Commissioners: Traffic Commissioners: Joe Vasquez Mayor Margaret F. Clark Mayor Pro Tern Robert W. Bruesch Councilwoman Jay T. Imperial Councilman Gary A. Taylor Councilman William Alarcon Chairman Merced "Bill" Ortiz Vice Chairman Robert Breen Commissioner Duc Loi Commissioner Rudolfo Ruiz Commissioner Holly Knapp Chairman Edward Quintanilla Vice Chairwoman Carmine Baffo Commissioner Dianna Herrera Commissioner Victor Ruiz Commissioner Frank G. Tripepi City Manager Frank G. Tripepi City Treasurer Robert L. Kress City Attorney Nancy Valderrama City Clerk xiii I I 0 a lJ 2i W N O LL O r F- U F- U J a Z O Q N 2 a C7 cc O 1 I I % I D I I xiv 0 I I r: ■ v, a b~o J' r ~ a : C .C. ~ u v Q ® i v V `v U V N r =~L L. - . V L r~ U N 5 V V = ` y ~ j n L 4-41 4-4 ti F.. IL C R:. XV Certificate of Achievement for Excellence in Financial Reporting Presented to City of Rosemead, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1998 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. PNGE Off~~ OF TW MD coPu s President Executive Director xvi I 1 1 1 1 1 1 1 i i 1 i i i i i 1 i ■ N A N C Yl i 1 McGLADREY& PULLEN, LL P c the Honorable Mayor and Members of the City Council ' City of Rosemead Rosemead, California INDEPENDENT AUDITOR'S REPORT RSM international ' We have audited the accompanying general purpose financial statements of the City of Rosemead, California (the City), as of and for the year ended June 30, 1999. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion ' on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards ' applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit ' includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that ' our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material ' respects, the financial position of the City, as of June 30, 1999, and the results of its operations and the cash flows of its pension trust fund for the year then ended in conformity with generally accepted accounting principles. ' In accordance with Government Auditing Standards, we have also issued a report dated August 31, 1999 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. Our audit was made for the purpose of forming an opinion on the general purpose financial, statements taken as a whole. The combinine and individual fund statements and schedules listed in the table of ' contents as supplementary information are presented for purposes of additional analysis on pages to and are not a required part of the general purpose financial statements of the City. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements ' and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 1 Accountants Certified PubliI 1 1 The Year 2000 supplementary information on page is not a required part of the basic financial ' statements but is supplementary information required by the Governmental Accounting Standards Board. 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 do not express an opinion on it. In addition, we do not provide assurance that the City is or will become Year 2000 compliant, that the City's Year 2000 remediation ' efforts will be successful in whole or in part, or that parties with which the City does business are or will become Year 2000 compliant. 1 Pasadena, California August') 1, 1999 I i 1 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 CITY OF ROSEMEAD, CALIFORNIA GENERAL PURPOSE FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1999 1 CITY OF ROSEMEAD, CALIFORNIA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1999 Governmental Fund Assets and Other Debits Special Debt General Revenue Service Cash and investments Receivables Due from other funds Property and equipment Other Debits Amount available in debt service fund Amount to be provided for retirement of general long-term debt Total assets and other debits Liabilities, Municipal Equity and Other Credits Liabilities S 12,092,438 S 7,475,250 S .2,322,185 1,268,354 2,376,218 11,191 1,010,557 1,126,368 - S 14,371,349 S 10,977,836 S 2,333.376 Accounts payable and accrued liabilities S 1,174,263 S 1,180,156 S - Due to other funds 126,261 2,010,561 - Deferred revenue 252,585 95,773 - Refundable deposits - - - Tax allocation notes and bonds - - - Accrued vacation pay and compensatory time 9,635 - - Accrued litigation settlement - - Total liabilities 1,562,744 3,286,490 - Municipal Equity and Other Credits Investment in general fixed assets Fund balance: Reserved: Long-term receivable Debt service Low-moderate income housing Employees retirement Unreserved: Designated for: Capital projects Building and equipment replacement Litigation settlements Self insurance Contingencies Undesignated Total municipal equity and other credits Total liabilities, municipal equity and other credits See Notes to Financial Statements. 574,127 - - - 2,333,376 5,857,163 - 1,720,000 - - 1,000,000 - - 300,000 - - 5,000,000 - - ,4,214,478 1,834,183 - 12,808,605 7,691,346 2,333,376 I i S 14,371,349 S 10,977,836 S 2,333,376 I 2 I 1 1 1 I I 0 0 I 0 8 0 I F L'' 1 1 0 u i 1 Fiduciary Fund Type Account Groups Totals (Memorandum Only) General General Capital Trust and Fixed Long-term Projects Agency Assets Debt 1999 1998 S 15,836,240 $ 297,250 S - S - S 38,023,363 $ 39.537,711 373,832 - - - 4,029,595 2,250,955 5 - - - 2,136,930 205,393 - - 14,242,846 - 14,242,846 13,553,017 - - - 2,333,376 2,333,376 2,353,274 - - - 33,339,785 33,339,785 33,633,441 $ 16210,077 $ 297,250 S 14,242,846 $ 35,673,161 5 94,105,895 $ 91,533,791 S 252,708 $ - $ $ - $ 2,607,127 S 1,722,001 - 108 - - 2,136,930 205,393 - - - 348,358 373,411 106,218 - - 106,218 102,008 - - 35,300,000 35,300,000 35,610,000 373,161 382,796 346,793 _ _ - 36,921 252,708 106.326 - 35,673,161 40,881,429 38,396,527 14,242,846 - 14,242,846 13,553,017 - 574,127 606,932 _ - 2,333,376 2,353,274 _ _ _ - 5,857,163 4,565,862 - 190,924 - - 190,924 203,441 15,957,369 - - - 15,957,369 18,365,708 _ _ _ - 1,720,000 1,720,000 _ _ _ - 1,000,000 1,000,000 - - - - 300,000 300,000 _ _ _ - 5,000,000 3,000,000 _ - _ - 6,048,661 7,469,030 15,957369 190,924 14,242,846 - 53,224,466 53,137,264 S 16,210,077 $ 297,250 S 14,242,846 S 35,673,161 S 94,105,895 $ 91,533,791 3 CITY OF ROSEMEAD, CALIFORNIA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES Year Ended June 30, 1999 Governmental Fund Types Special Debt General Revenue Service Property taxes and special assessments $ - $ 367,277 $ - Othertaxes 3,999,539 - - Intergovernmental 3,549,344 6,571,196 - Licenses and permits 964,567 - - Charges for services 635,385 8,000 - Fines, forfeitures and penalties 319,076 306,680 - Use of money and property 636,273 725,466 117,386 Other 155,352 - - 10,259,536 7,978,619 117,386 Expenditures: Current: General government 1,744,965 152,870 - Public safety 4,283,184 976,317 - Public works 480,158 5,369,683 - Public health 43,844 - - Public recreation 2,030,237 - - Community service 1,188,555 897,313 - Capital outlay 419,087 - - Debt service: Principal - 310,000 Interest - - 1,960,187 10,190,030 7,396,183 2,270,187 Revenue over (under) expenditures 69,506 582,436 (2,152,801) Other financing sources (uses): Operating transfers: From other funds 1,097,300 690,581 2,132,903 (To) other funds (51,696) (550,000) - 1,045,604 140,581 2,132,903 Revenue and other financing sources over (under) expenditures and other 1,115,110 723,017 (19,898) financing (uses) Fund Balance, beginning 11,693,495 6,968,329 2,353,274 Fund Balance, ending S 12,808,605 $ 7,691,346 $ 2,333,376 See Notes to Financial Statements. 4 0 0 Totals (Memorandum Only) Capital Projects 1999 1998 $ 2,870,290 $ 3,237,567 $ 3,189,367 - 3,999,539 4,134,533 o 10,120,540 6,758,226 - 964,567 739,162 - 643,385 499,492 Q 625,756 349,322 765,201 2,244,326 2,497,294 182 155,534 71,628 3,635,673 21,991,214 18,239,024 a 50,577 1,948,412 1,800,080 - 5,259,501 4,655,943 2,674,347 8,524,188 3,287,310 43,844 45,381 2,030,237 1,906,179 - 2,085,868 2,060,701 - 419,087 56,182 - 310,000 295,000 - 1,960,187 1,984,054 o -2,724,924 22,581,324 16,090,830 910,749 (590,110) 2,148,194 1 651 3,921,435 3,797,014 (3,319,739) (3,921,435) (3,797,014) _ (3,319,088) - o 2 408 339 110 590 194 2 148 ( , , ) ) ( , , , 18,365,708 39,380,806 37,232,612 15 957 369 1 38 790 696 1 39 380 806 , , , , , , 1 1 1 5 CITY OF ROSEMEAD, CALIFORNIA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANCES IN FUND BALANCES BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES Year Ended June 30, 1999 General Variance Favorable ' Budget Actual (Unfavorable) Budget Revenue: Property taxes and special assessments S - S - S - S 360.000 Othertaxes 3,994 600 3,999,539 4,939 - Intergocemmental 3,422 700 3.549 344 126,644 6,193.838 Licenses and permits 734,100 964,567 230,467 - Charges for services 528,500 635,385 106,885 8,000 Fines and forfeitures 267,500 319,076 51,576 60,000 Use of money and property 451,200 636,273 185,073 399,450 Other 33,600 155.352 121,752 - 5.000 Total revenue 9.432.200 10.259,536 827,336 7,025.288 Expenditures: Current: General eovcmment Public safety Public works Public health Public recreation Community services Appropriations reserves Capital outlay Debt service: Principal Interest Total expenditures 1,912,580 1,744,965 167,615 5,161,040 4,970,038 4.283,184 686,854 742,680 193,440 480,158 (286,718) 5,918,095 50,900 43,844 7,056 - 2,107,520 2,030,237 77,283 - 1.238,120 9,188,555 49,565 1,536,538 65,017 - 65,017 - 383,300 419,087 (35,787) - 10,920,915 10,190,030 730,885 13,358.353 Revenue over (under) expenditures Other financing sources (uses): Operating transfers: From other funds (To) other funds Revenue and other financing sources over (under) expenditures and other financing (uses) Fund Balance, beginning Fund Balance, ending Sec Notes to Financial Statements. (1,488,715) 69,506 1,558,221 (6,333,065) 1,097,300 1,097,300 - - 5,845,499 (51,696) (51,696) (5.293,909) 1,097,300 1,045.604 (51,696) 551,590 S (391,415) 1,115,110 S 1,506,525 S (5781,475) 11,693,495 S 12.808.605 6 1 1 1 1 P I 0 I D 0 U I I I I U U Special Revenue Debt Service Capital Prolcct 0 Variance Variance Variance Favorable Favorable Favorable Actual (Unfavorable) Budeet Actual (Unfavorable) Budeet Actual (Unfavorable) S 367.277 S 7.277 S - S - S - S 2.800,000 S 2,870.290 S 70,290 6,571,196 377,358 - - - - - - 0 8,000 - - - - - - - 306,680 246.680 - - - - - - 725,466 327,016 (5.000) 130,000 117,386 (12,614) 330,000 765,201 182 435,201 182 7,978,619 953.331 130,000 117,386 (12.614) 3,130,000 3.635,673 505,673 D 152,870 5,008.170 - - - 45,900 50,577 (4,677) 976,317 (233.637) - - - - - - 5,369,683 548,412 = _ = 9,075,700 2.674.347 6,401,353 897,313 639,25 - - - - - - - = 310,000 1,968,713 310,000 1,960,187 - 8,526 - - - 7,396,183 5,962.170 2,278.713 2.270,187 8,526 9,121,600 2,724.924 6,396,676 582,436 6.915.501 (2.148,7 13) (2,152,801) (4,088) (5,991,600) 910,749 6,902,349 690,581 (5,154,918) 2,278,710 2,132,903 (145,807) - 651 651 (550.000) 4,743.909 (3,878,450) (3,3 19739) 558.711 140A1 (411,009) 2,278,710 2.132.903 (145,807) (3,878,450) (3,319,088) 559,362 _ 723,017 S 6,504,492 S 129.997 (19,898) S (149.895) S (9,870,050) (2,408,339) S 7.461.711 6,968,329 2.353.274 18,365,708 ' S 7 69 4 , 1.3 6 S 2.333 376 S 15.957,369 11 1 7 CITY OF ROSEMEAD. CALIFORNIA STATEMENTS OF CHANGES IN PLAN NET ASSETS PENSION TRUST FUND Year Ended June 30, 1999 (With Comparative Actual Amounts for the Year Ended June 30, 1998) 1999 1998 Additions: Interest income on cash and investments Total additions Deductions: Benefits paid to participants and beneficiaries Administrative expenses Total deductions Net (decrease) in plan net assets Net assets held in trust for pension benefits, beginning Net assets held in trust for pension henefits, ending See Notes to Financial Statements. S 11,846 $ 15,643 11,846 15,643 20,719 20,719 3,644 3,659 24,363 24,378 (12,517) (8,735) 203,441 212,176 $ 190,924 $ 203,441 . 8' I 1 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS O Note I. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant Accounting Policies 1 Reporting entity 1! As required by generally accepted accounting principles, these financial statements present the 1 government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations and are controlled by common governing boards; therefore, data from these 0 units is combined with data of the primary government. The blended component units included in the City of Rosemead (the City) reporting entity are the Rosemead Redevelopment Agency (the Agency) and the Rosemead Housing Development Corporation (the Corporation) which is a component unit of the 1 Agency. The component units have the same fiscal year as the City. Separately issued financial statements for the component units can be obtained from the City Clerk. Nature of operations City of Rosemead 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 Redevelopment Agency 1 1 1 1 1 The Agency finances street, park and utility improvements. It also acquires and constructs major capital facilities, all within the Rosemead Project Area No. I. 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. 1 9 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant Accounting Policies, Continued Measurement focus, basis of accounting and basis of presentation The accounts of the City and its component units are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The City has the following fund types and account groups: Governmental Funds are used to account for the general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified-accrual basis of accounting. Under the modified-accrual basis of accounting, revenue is recognized when susceptible to accrual (i.e., when they are measurable and available). "Measurable" means the amount of the transaction can be determined, and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The government considers all revenue available if it is collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt, which is recognized when due, and certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. In determining when to recognize intergovernmental revenue (grants, subsidies and shared revenue), the legal and contractual requirements of the individual programs are used as guidance. There are, however, essentially two bases for this revenue recognition. In one, moneys must be expended on the specific purpose or project before any amounts. will be paid to the City; therefore, revenue is recognized based upon the expenditures recorded. In the other, moneys are virtually unrestricted as to purpose of expenditure and nearly irrevocable, i.e., revocable only for failure to comply with prescribed compliance requirements, e.g., equal employment opportunity. These resources are reflected as revenue at the time of receipt, or earlier if they meet the criterion of availability. Other major revenue that is determined to be susceptible to accrual includes taxes and interest. Major revenue that is determined not to be susceptible to accrual because it is either not available soon enough to pay liabilities of the current period or not objectively measurable include licenses, permits, fines and forfeitures. Expenditures are recorded when the liability is incurred, except for interest on long-term debt and sick pay, which are recorded when paid. Vacation pay is recorded as an expenditure in the year it is earned, to the extent it is paid in that year or within 90 days after year end; otherwise, it is recorded as an expenditure when it is paid. Estimated losses on insurance claims are charged to expense in the period the loss is determinable. 10 O CITY OF ROSEMEAD, CALIFORNIA a NOTES TO FINANCIAL STATEMENTS Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant Accounting Policies, Continued a Agency funds are custodial in nature and do not present results of operations or have a measurement focus. Agency funds are accounted for using the modified-accrual basis of accounting. The City's Agency fund is used to account for assets that the City holds for others in an agency capacity. a The accrual basis of accounting is used for the Pension Trust Fund utilizing the flow of economic resources measurement focus. Under the accrual basis of accounting, revenue is recognized when earned and expenses are recorded when incurred. Governmental Fund Types a 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. Special Revenue Funds account for the proceeds of specific revenue sources (other than special assessments, expendable trusts and major capital projects) that are legally restricted to expenditures for specified purposes. The Special Revenue Funds and their purposes are as follows: The Traffic Safety Fund accounts for the receipt of vehicle code fines which are expended for traffic safety enforcement. ' The State Gas Tux Fund accounts for funds collected from the State of California which are used for street construction, street maintenance, engineering and administrative costs. The Air Quality Management District Fund accounts for the City's share of automobile registration fees collected from the state by the South Coast Air Quality Management District. The funds are used in improving transportation systems and to reduce reliance on private vehicles. The Local Transportation Fund accounts for state grants used to finance the construction of bikeways and sidewalks. The Public Transportation Funds account for the City's share of additional sales tax collected in the County of Los Angeles as a result of Propositions A and C. The funds are used to finance public ' transportation projects. The Community Development Block Grant Fund accounts for Community Development Block ' Grants received from the United States Department of Housing and Urban Development. The 1976 Community Parklands Grant Fund accounts for funds to be used for park projects. The Street Lighting Fund accounts for the operation of street lights within the City. The Narcotics Seizure Fund accounts for the funds received from the County of Los Angeles from the ' confiscation of cash and other valuables seized during drug-related police raids. The funds are used to further enhance the City's drug related crime prevention and detection programs. 11 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant Accounting Policies, Continued The Low-Moderate Income Housing Set-Aside Fund accounts for the 20% of gross property tax increment revenue received by the Agency to fund future projects involving the replacing or rehabilitation of low and moderate income housing within City limits. The Rosemead Housing Development Corporation accounts for the construction and financing of low and moderate income housing. It is a California nonprofit public benefit corporation organized under Section 501(c)(3) of the Internal Revenue Code. The California Wildlife Grant Fund accounts for a state grant for preapproved specified park projects. The Federal Highway Grant Fund accounts for a Federal Highway/Transportation Acts which are used for preapproved highway projects. Application and funding processes are administered by CalTrans. The Debt Service Fund accounts for the accumulation of resources for the payment of general long-term debt principal, interest and related costs. Capital Projects Fund' (Redevelopment 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 Agency. Fiduciary Fund Types Fiduciary Funds account for assets held by the government in a trustee capacity or as an agent on behalf of others. Trust funds account for assets held by the government under the terms of a formal trust agreement. The City's Fiduciary Fund Types are as follows: The Pension Trust Fund, a nonexpendable 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. Account Groups The General Fixed Assets Account Group is used to account for the City's fixed assets. The General Long-term Debt Account Group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary or trust funds. 12 U U U 0 I I I I I CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS A'ore I. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant Accounting Policies, Continued Management has the ultimate responsibility for the appropriateness of the accounting policies and procedures used by the City. The following is a summary of significant accounting policies: Cash investments and other investments The City pools cash and investment resources of some of its funds in order to facilitate the management of cash. Cash applicable to a particular fund is readily identifiable. The balance in the pooled cash accounts is available to meet current operating requirements. Investments are stated at fair value. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced liquidation. The fair value of the investments is generally based on published market prices and quotations from major investment firms. Investment earnings are allocated based on the source of funds. Receivables ' Property taxes attach as an, enforceable lien on property as of March 1. Taxes are levied on July I and are payable in two installments on December 10 and April 10. The County of Los Angeles bills and collects the property taxes and remits them to the City in installments during the year. Property taxes ' received within 60 days after the City's fiscal year end are considered "measurable" and "available" and are accrued in the City's financial statements. All other receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible. ' Property and equipment All property and equipment of the City are accounted for in the general fixed assets account group. ' Public domain (infrastructure) general fixed assets, consisting of certain improvements other than buildings, such as roads, sidewalks and bridges, are not capitalized. Property and equipment acquired or constructed for general governmental operations are recorded as expenditures in the fund making the ' expenditure and capitalized in the general fixed assets account group. All general fixed assets which were purchased or constructed are stated at cost. Assets acquired by gift ' or bequest are recorded at their fair market value at the date of transfer. No depreciation is recorded on general fixed assets. 1 13 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant Accounting policies, Continued Fund balances The reserved portion of the fund balances represents that amount which has been legally identified for the specific purpose or it represents that amount which is not available to liquidate current liabilities. The unreserved portion represents the amount available for budgeting future operations. Designated fund balances represent tentative plans for future use of financial resources. Vacation pay and compensatory time City employees accumulate vacation hours which 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 vested portion of vacation and sick leave by employees at June 30, 1999 that is expected to be paid within 90 days after year end is included in accrued liabilities in the General Fund. The amount not expected to be paid within 90 days is included in the General Long-term Debt Account Group. "Memorandum Only" total columns Included on the combined financial statements are total columns captioned "Memorandum Only" to indicate that they are presented only for informational purposes. Adjustments to eliminate interfund transactions have not been recorded in arriving at such amounts and the memorandum totals are not intended to fairly present the financial position or results of operations of the reporting entity taken as a whole. Additionally, the 1998 totals presented in the "Memorandum Only" columns are included to provide a summarized comparison with comparable 1999 amounts and are not intended to present all information necessary for a fair presentation of financial position and results of operations in accordance with generally accepted accounting principles. Comparative data/reclassification Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding of the changes in the government's financial position and operations and are not intended to present all information necessary for a fair presentation of financial position or results of operations in accordance with generally accepted accounting principles. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. 14 I I I I I 0 0 0 D 0 0 D 0 0 O CITY OF ROSEMEAD, CALIFORNIA D NOTES TO FINANCIAL STATEMENTS Note I. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant Accounting Policies, Continued 0 Budget matters The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and estimated revenue for all governmental fund types. Budgets presented in this report for comparison to actual amounts are presented in accordance with generally accepted accounting principles. Reported budget amounts represent the original adopted budget as amended. a The City Manager is authorized to make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the governing council. The legal level of budgetary control is the department level. The governing council made several supplemental budgetary 0 appropriations throughout the year, none considered to be material. In all funds, unexpended budgeted amounts lapse at the end of the budget year. Note Z Cash and Investments The components of cash and investments at June 30, 1999 are as follows: Cash in bank $ 1,423,015 Time certificates of deposit 2,950,000 Cash total 4,373,015 Cash with fiscal agent 2,322,186 Guaranteed investment contracts 1,527,898 Investment in State Treasurer's Investment Pool 24,5067286 Investment in annuity contracts 190,924 Other investments 5,103,054 Investments total 33,650,348 ' Cash and investments total $ 38,023363 Cash The City maintains cash and investment pools that are available for use by all funds. E ach fund's or fund type's share of the pool balance is reported in the financial statements as cash and cash investments. Eamings 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. i 1 15 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Nate 1. Cash and Investments, Continued At year end, the carrying amount of the City's deposits (i.e., cash in bank and time certificates of deposit) was $4,373,015 and the bank balance was $4,579,922. In accordance with state statutes, the City maintains deposits at those depository institutions insured by the Federal Depository Insurance Corporation. The California Government Code requires California banks and savings and loan associations to collateralize governmental entities' deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 1 10% of a city's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a collateral value of 150% of an the entity's total deposits. The cash and nonnegotiable certificates of deposit are classified in three categories of credit risk as follows: Category one includes deposits that are insured or collateralized with securities held by the entity or by its agent in the entity's name; Category two includes deposits that are collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name; Category three includes deposits that are uncollateralized: Bank Category 1 Category 2 Category 3 Balance Deposits: Cash $ 717,341 $ 912,581 $ $ 1,629,922 Certificates of deposit 20,025 2,929,975 2,950,000 $ 737,366 $ 3,842,556 $ - $ 4,579,922 Investments State statutes 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 State Treasurer's Investment Pool (LAIF), repurchase agreements, commercial paper and bonds, registered warrants or treasury notes of the State of California and its local agencies. An advisory board has been established to monitor the LAIF's compliance with regulations and investment alternatives established by the state. Investments include cash with fiscal agent of $2,322,186 which includes $2,321,421 invested in a guaranteed investment contract which accrues interest monthly at a rate of 5.8%, maturing October 1, 2013. Investments in annuity contracts included $190,924 invested in the Pension Trust Fund. This investment was carried at market value. Investments also included $1,527,898 of amounts in various guaranteed investment contracts which accrue interest quarterly at rates ranging from 7.18% to 7.41%, maturing October 1. 1999. 16 I Q 0 D 0 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 2. Cash and Investnrente, Continued The City participates in a voluntary external investment pool, LAIF, which is managed by the State Treasurer. LAW 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, 1999, the City's pooled investments in LAIF in the amount of $24,506.286 are not subject to custodial credit risk categorization. The total estimated fair value invested by all public agencies in LAIF is $36,801,515,428. Of that amount, 94.73% is invested in nonderivative financial products, and $5.27% in derivative financial products. Other investments are categorized in the three categories of credit risk and fair value as follows: Category one includes investments that are insured, registered or for which the securities are held by the City or its agent in the City's name; Category two includes investments that are uninsured and unregistered for which the securities are held by counterparty's trust department (if a bank) or agent in the City's name; Category three includes investments that are uninsured and unregistered investments for which the securities are held by counterparty's trust department (if a bank) or agent, but not in the City's name: Investment Type 1 Category Fair 2 3 Value U.S. government and government agency securities S $ - $ 4,601,741 $ 4,601,741 State and municipal bonds = 501,313 501,313 S S S 5,103,054 5,103,054 ' Cash with fiscal agent Guaranteed investment contracts 2,322,186 1,527,898 Investment in State Treasurer's 1 Investment Pool Investment in annuit contracts 24,506,286 924 190 y , Total other investments S 33,650,348 I 1 17 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 3. Receivables Receivables as of June 30, 1999 consist of the following: Special Capital General Revenue Debt Service Projects Total Property tax increment $ - $ - $ - $ 135,687 $ 135,687 Accrued interest 153,276 64,849 11,191 238,145 467,461 Due from local utility companies(") 574,127 - - - 574,127 Due from other governmental agencies 139,595 2,311,369 - - 2,450,964 Transient occupancy tax 213,233 - - - 213,233 Other 188,123 - - 188,123 $ 1,268,354 $ 2,376,218 S 11,191 $ 373,832 $ 4,029,595 t"t During the fiscal year ended June 30, 1987, the Agency 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 amount advanced was $493,807. The Agency then contributed the receivable to the City at the present valued amount. The City is to collect this receivable from the utility company in 40 annual installments of $12,345, with the final installment due June 30, 2027. During the fiscal year ended June 30, 1990, the Agency 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, 1992. The Agency then contributed the receivables to the City. The City is to collect the receivables from the utility company in 15 noninterest-bearing annual installments of $35,987 and $1,958, with the final installments due June 30, 2005 and September 30, 2006. During the fiscal year ended June 30, 1991, the Agency 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 Agency then contributed the receivable to the City at the present valued amount of $212,431. The City is to collect this receivable from the utility company in 15 annual installments of $20,773, with the final installment due June 30, 2006. 18 0 0 0 0 O 0 1 i 1 1 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 4. Interfund Receivables and PoVables Interfund receivables and payables as of June 30, 1999 are as follows: Interfund Funds Receivables Payables General Fund Special Revenue Funds: Traffic Safety State Gas Tax Air Quality Management District Local Transportation Fund Public Transportation Community Development Block Grant 1976 Community Parklands Grant Narcotics Seizure RRA - 20% Holding Fund California Wildlife Grant Federal Highway Grant Capital Projects Fund Trust and Agency Fund $ 1,010.557 $ 126.261 - 49,825 37,417 - 6,534 - - 25,961 61,781 - - 1,042,203 2,459 - 420 1,017,757 - - 1,400 - 891,172 1,126,368 2,010,561 5 108 $ 2,136,930 $ 2,136,930 Note 5. Property and Equipment Changes in property and equipment during the fiscal year ended June 30, 1999 were as follows Balance, Balance, July 1, 1998 Acquisitions Disposals June 30, 1999 Land $ 4,730,565 $ - $ - S 4,730,565 Buildings and improvements 5,785,314 621,538 - 6,406,852 Vehicles 258,873 9,849 - 268,722 Fumiture and office equipment 1,314.296 48,453 - 1,362,749 Special equipment and machinery 595,486 9,989 - 605,475 Other improvements 868,483 - - 868,483 $ 13,553,017 $ 689,829 $ - $ 14,242,846 19 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS A'ote 6. Employee Pension Plans Definer! Contribution Pension Plan The City had a defined contribution pension plan which covered substantially all retired employees and was funded by a group annuity contract. Plan participants became vested upon the dissolution of the plan on September 8, 1992. There were no subsequent contributions to this plan. On September 8, 1992, participants of the plan who were current employees had their share of the annuity contract transferred to the California Public Employee Retirement System (CalPERS). The value of the annuity contract for retired employees was $190,924 as of June 30, 1999. Defined Benefit Pension Plan Plait 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. CalPERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained from their executive office at 400 P Street, Sacramento, California 95814. Funding policy Participants are required to contribute 7% of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate; the current rate is 10.706% of annual covered payroll for miscellaneous employees. The contribution requirements of plan members and the City are established and may be amended by CaIPERS. Annual pension cost For the fiscal year ended June 30, 1999, the City's annual pension cost of $241,318 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, 1997, using the entry age normal actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions included (a) 8.5% investment rate of return (net of administrative expenses); (b) projected salary increases that vary by duration of service ranging from 4.5% to 14.95% and (c) 45% cost-of--living adjustment. Both (a) and (b) include an inflation component of 4.5%. The actuarial value of CalPERS assets was determined using techniques that smooth the effects of short-term volatilitylin the market value of investments over a three-year-period. CalPERS's 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, 1999 was 26 years. 20 1 i I I I 1 I 1 I I NOTES TO FINANCIAL STATEMENTS CITY OF ROSEMEAD, CALIFORNIA Note 6. Employee Pension Plans, Continued Three-year trend information for CaIPERS: Annual Percentage ' Pension Cost of APC Net Pension Fiscal Years Ended June 30, (APC) Contributed Obligation ' 1997 $ 185,932 100 % $ 1998 167,161 100 1999 241,318 100 ' Required Supplementary Information ' Funded Status of Plan Entry Age Unfunded/ Normal Actuarial (Over- Annual UAAL Valuation Accrued Value of funded) Funded Covered as a % of Date Liability Assets Liability Ratio Payroll Payroll ' 6/30/95 $ 2,449214 $ 1,882392 $ 566,822 76.9 % S 1,311.860 43.208 % 6/30/96 2,765,067 2,302,007 463,060 83.3 1,218,455 38.004 6/30/97 3,293,741 2,823,263 470,478 85.7 1,291,438 36.431 Note 7. Self-insurance Program ' The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and injuries to employees. The City carries commercial liability insurance and ' bonds its employees. The City carries no insurance coverage for natural disasters. Beginning in 1977, the City became a member of the California Joint Powers Insurance Authority (the Authority) (a joint powers authority of 77 California cities) for the purpose of pooling their losses and claims of workers' ' compensation and general liability with those of other member cities. The Authority is governed by a. Board of Directors which is composed of one representative and an alternate selected by the City Council of each city. Each Board member has one vote regarding control of all budgeting, financial and ' management issues coming before the Board of Directors. I 1 1 21 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 7. Self-insurance Program, Continued The City, through the Authority, has a self-insured retention of $20,000. The amount exceeding the self-insured retention level, excluding costs for "property damage only" occurrences which have a total incurred value of $5,000 or less, will be shared pro ratably among the pool based upon each member's share of cost under $20,000 up to a maximum of $500,000. Any losses above $500,000, including claims adjusting costs and administrative expenses, are shared pro rata based upon each member's share of aggregate payroll. The City has employers' liability insurance up to $5,000,000 per occurrence. 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 years. Note 8. Long-term Debt Tax allocation bonds, Series 1993 A and B In November 1993, the Rosemead Redevelopment Agency issued tax allocation bonds in the amount of $34,275,000 (Series 1993A) and taxable tax allocation refunding bonds in the amount of $2,435,000 (Series 1993B) to finance a portion of the cost of the redevelopment area known as Project Area No. I. The bonds bear interest ranging from 4.6% to 5.6% and 5.2% to 5.9% for Series 1993A and B, respectively. From the proceeds, $14,652,398 of Series A and $2,382,551 of Series B, along with the existing reserve amount of $2,651,000 on deposit with the fiscal agent, were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1987 and 1991 tax allocation bonds which are, therefore, considered defeased. Series 1993A bonds mature after October I, 2001 and before October 1, 2033, and Series 1993B bonds mature on or before October 1, 2001. In addition, the 1993 bond issue reallocated the $6,813,850 of the 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 $423,574 borrowed from the Educational Revenue Augmentation Fund (ERAF) in fiscal year ended June 36, 1993 and satisfying 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. 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, 1999. 22 ' CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS ' Note R. Long-term Debt, Continued ' Compensated absences That portion of the liability for the vested compensated absences totaling $373,161 which is not expected ' to be paid from available resources is reported in the General Long-term D ebt Account Group. Other long-tern debt ' The City has included amounts in the long-term debt account groups for a litigation settlement. Final payment for the litigation settlement was made in August 1998. fi l d d 30 The following is a summary of the general long-term debt transactions for sca year en e June , the 1999: Accrued Tax Allocation Tax Allocation Vacation and Bonds Series Bonds Series Litigation Compensatory 1993A 19936 Settlement Time Total Balance, June 30, 1998 S 34,275,000 S 1,335,000 S 36,921 S 339,794 S 35,986,715 ' Payments of principal - (310,000) (36,921) - (346,921) Additions 33,367 33,367 Balance, June 30, 1999 S 34,275,000 S 1,025,000 S S 373,161 S 35,673,161 The annual requirements, principal and interest to amortize the outstanding debt as of June 30, 1999 are ' as follows: Accrued During the Series 1993 Vacation and ' Fiscal Years A and B Compensa- Ending June 30, Bonds tory Time Interest Total ' 2000 S 330,000 S 373,161 S 1,942,258 S 2,645,419 2001 345,000 1,922,848 2,267,848 2002 370,000 - 1,902,518 2,272,518 2003 425,000 - 1,891,273 2,316,273 ' 2004 445,000 1,870,873 2,315.873 Years thereafter 33,385,000 - 35,137,719 68,522,719 ' S 35,300,000 S 373,161 S 44,667,489 S 80,340,650 ' Defeasance of prior debt The Agency has advance refunded prior bond issues which are considered defeased and, accordingly, the long-term debt liability has been removed from the General Long-term Debt Account Group. The ' Agency is, however, contingently liable if, for any reason, the funds on deposit are not sufficient to retire the defeased debt. On June 30, 1999, $5,939,631 of outstanding bond principal are considered defeased. 1 23 C O C ITY F ROSEMEAD, ALIFORNIA NOTES TO FINANCIAL STATEMENTS 1 Note 9. Budget Overespenditures ' Expenditures exceeded appropriations for the fiscal year ended Ju ne 30, 1999 in the following departments: Amount of Over- , Appropriations Expenditures expenditures General Fund General Government ' City council $ 71,800 $ 74,717 $ 2,917 City administration 550,630 557,672 6,992 City attorney 134,700 143,447 8,747 ' Public Works Engineering and administration 42,640 47,602 4,962 Street and highway construction 150,800 4307743 279,943 ' Traffic signs and striping maintenance - 1,813 1,813 Public Recreation, Recreation 649,300 662,353 13,053 Community Services, Planning 228,630 230,835 2,205 ' Capital outlay 383,300 419,087 35,787 Traffic Safety Fund Public safety 60,000 306,680 246,680 , State Gas Tax Fund Public works 1,345,950 1,498,641 152,691 Capital Projects Fund ' General government 45,900 50,577 4,677 , Note IO. Commitments and Contingent Liabilities Low-Moderate Income Housing Set-Aside Fund , Under state law, the Agency is required to set aside a portion of its pro perty tax increment revenue for low- and moderate-income housing. The Agency has made findings th at, for the years ended June 30, ' 1986 through 1991, it was allowed to defer funding of the set-aside. The set-aside, am ounts incurred during the fiscal years ended June 30, 1994, 1995, 1996, 1997 and 19 98 were also deferred until the fiscal year ending June 30, 2023, as provided by the Agency's adoption of the housing deficit repayment , plan. As of June 30, 1999, the accumulated set-aside amount not yet funded was approximately $4,947,000. As required by law, the Agency devised a plan to fund the accumulating amo unt. I 24 1 I Trust Fund originated, the cities will be jointly liable for any and all claims filed against a Los Angeles CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 10. Conrmitntetrts and Contingent Liabilities, Contitztted 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 serviced by the Los Angeles County Sheriffs Department. The Trust Fund was and is being funded by the 40 cities based upon an additional 6% charge on the amount paid to Los Angeles County for the use of its deputies within the City. Based upon the agreement signed by all of the 40 cities at the time the County Sheriffs Deputy, regardless of the location within the 40 cities. In 1998, the County of Los Angeles lost a litigation matter which resulted in a $26,000,000 judgment against the Los Angeles County Sheriffs Department which Los Angeles County has since paid. Approximately $20,000,000 is still due Los Angeles County. The City believes its share of this liability ' is approximately 3% or $600,000, which will be paid by the Trust Fund to Los Angeles County over the next ten years and accrue at 4% interest. No additional liability will be incurred by the City. However, the City would be liable for such share, if it decided to terminate its association with the Trust Fund. Advance agreement 1 11 1 1 In February 1996, the Agency approved an agreement with a local utility company to advance the utility company $117,600 required to install water distribution mains within the Agency redevelopment area. The agreement was put on hold by the Agency and, as of August 31, 1999, the agreement remains on hold. Note IL Pronouncements Issued But Not Yet Adopted In December 1998, the Governmental Accounting Standards Board (GASB) issued Statement of Governmental Accounting Standards No. 33, Accounting and Financial Reporting for Nonexchange Transactions. This Statement establishes accounting and financial reporting standards for nonexchange transactions involving financial or capital resources (e.g., most taxes, grants, and private donations). In a nonexchange transaction, a government gives (or receives) value without directly receiving (or giving) equal value in return. Statement No. 33 is required to be adopted for years beginning after June 16, 2000. The City has not completed its assessment of the effect that the adoption of Statement No. 33 will have on its financial statements. 1 25 CITY OF ROSEMEAD, CALIFORNIA I NOTES TO FINANCIAL STATEMENTS I Note]]. Pronouncements Issued Bu! Not Yet Adopted, Continued I In June 1999, the GASI3 issued Statement of Governmental Accounting Standards No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local ' Governments. This Statement establishes new financial reporting requirements for state and local governments. The City will be required to disclose the details about the full cost of providing government services and to allocate expenses and revenue to allow calculation of net costs program by ' program. In addition, the City will need to report all capital assets, including infrastructure assets, and begin to track depreciation on these items year to year. The City will be required to implement the new financial model for its fiscal year ending June 30, 2003. The City has not completed its assessment of ' the effect that the adoption of Statement No. 34 will have on its financial statements. 1.. 1 i I I I I 1 i I i I 26 1 I 1 1 1 1 CITY OF ROSEMEAD, CALIFORNIA COMBINING AND INDIVIDUAL FUNDS AND ACCOUNT GROUPS FINANCIAL STATEMENTS YEAR ENDED JUNE ^ 1999 27 THIS PAGE INTENTIONALLY LEFT BLANK zs I I I I LJ GENERAL FUND 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. 1 29 CITY OF ROSEMEAD, CALIFORNIA GENERAL FUND BALANCESHEET June 30, 1999 ASSETS Cash and investments Receivables Due from other funds Total Assets LIABILITIES AND MUNICIPAL EQUITY Liabilities: Accounts payable and accrued liabilities Due to other funds Deferred revenue Accrued vacation pay and compensatory time 1999 1998 $12,092,438 $11,454,939 1,268,354 1,234,137 1,010,557 205,393 $14,371,349 $12,894,469 $1,174,263 126,261 252,585 9,635 $1,067,246 126,729 6,999 Total Liabilities Municipal Equity and Other Credits: Fund Balance: Reserved: Long-term receivable Unreserved: Designated: Building and equipment replacement Litigation settlements Self-insurance Contingencies Undesignated Total Fund Balance Total Liabilities, Municipal Equity and Other Credits 30 $1,562,744 $1,200,974 $574,127 $606,932 1,720,000 1,720,000 1,000,000 1,000,000 300,000 300,000 4,000,000 3,000,000 5,214,478 5,066,563 $12,808,605 $11,693,495 $14,371,349 $12,894,469 I 11 1 1 1 CITY OF ROSEMEAD, CALIFORNIA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1999 1999 1998 REVENUES: Other Taxes $3,999,539 $4,134,533 Licenses and permits 964,567 739,162 Intergovernmental 3,549,344 3,479,407 Charges for services 635,385 489,792 Fines, forfeitures and penalties 319,076 279,104 Use of money and property 636,273 643,925 Other 155,352 26,613 Total Revenue $10,259,536 $9,792,536 EXPENDITURES: Current: General government $1,744,965 $1,631,462 Public safety 4,283,184 4,309,219 Public works 480,158 189,453 Public health 43,844 45,381 Public recreation 2,030,237 1,906,179 Community service 1,188,555 1,011,882 Capital outlay 419,087 56,182 Total Expenditures $10,190,030 $9,149,758 Revenue over (under) expenditures $69,506 $642,778 OTHER FINANCING SOURCES (USES): Operating transfers: From other funds $1,097,300 $1,097,300 (To) other funds (51,696) (45,328) Total Other Financing Sources (Uses) $1,045,604 $1,051,972 Revenues and Other Financing Sources over (under) expenditures $1,115,110 $1,694,750 FUND BALANCE, BEGINNING 11,693,495 9,998,745 FUND BALANCE, ENDING $12,808,605 $11,693,495 31 CITY OF ROSEMEAD, CALIFORNIA I GENERAL FUND REVENUE DETAIL - BUDGET AND ACTUAL , Fiscal Year Ended June 30, 1999 - Over (Under) , Budget Actual Budget 1998 TAXES Maintenance district $1,600 $1,248 ($352) $1,366 ' Real estate transfer tax 40,000 58,767 18,767 46,600 Sales and use tax 2,575,000 2,529,135 (45,865) 2,658,370 Franchise fees 598,000 600,899 2,899 605,586 Transient occupancy tax 780,000 809,490 29,490 822,611 ' $3,994,600 $3,999,539 $4,939 $4,134,533 LICENSES AND PERMITS , Business license fees $35,000 $38,481 $3,481 $39,149 Building permit fees 525,000 746,726 221,726 529,417 Public work permit 50,000 58,466 8,466 46,792 Tentative map fees 6,000 4,455 (1,545) ,6,940 , Development review fees 5,500 849 (4,651) 1,499 Final map fees 20,000 26,820 6,820 16,775 Occupancy permit fees 59,000 55,458 (3,542) 58,656 ' Sewer connection 30,000 27,759 (2,241) 37,544 Strong motion fees 2,000 3,755 1,755 2,390 Rehabilitation permit fees 1,600 1,798 198 - $734,100 $964,567 $230,467 $739,162 INTERGOVERNMENTAL Financial aid to local agencies $980,000 $940,904 ($39,096) $1,054,459 Motor vehicle in lieu tax 2,100,000 2,579,309 479,309 2,372,031 Other vehicle taxes 900 893 (7) 857 COPS Grant 123,800 28,238 (95,562) 52,060 a Other state grants 218,000 - (218,000) - $3,422,700 $3,549,344 $126,644 $3,479,407 CHARGES FOR SERVICES Filing and certification fees $50,000 $41,195 ($8,805) $50,005 Other current charges 251,000 324,006 73,006 214,363 Enivommental impact reports 100 - (100) - n Recreation fees 203,800 224,055 20,255 185,528 ll Assessments 3,000 14,550 11,550 16,784 ' Special community events 20,600 .31,579 - 10,979 23,112 $528,500 , $635,385 $106,885 $489,792 FINES, FORFEITURES AND PENALTIES Court fines and forfeitures $267,500 $319,076 $51,576 $279,104 USE OF MONEY AND PROPERTY Interest earned on investments $385,000 $570,187 $185,187 $582,970 D Rental Income 66,200 66,086 (114) 60,955 $451,200 ,$636,273 $185,073 $643,925 OTHER SANE program $121500 I $12,500 $12,500 Repairs to and sale of City property 1,100 13,988 12,888 1,040 Miscellaneous 20,000 128,864 108,864 13,073 $33,600 ;$155,352 I $121,752 $26,613 Total Revenues $9,432,200 $1,0,259,536 $827,336 $9,792,536 32 ' CITY OF ROSEMEAD, CALIFORNIA ' GENERAL FUND EXPENDITURE DETAIL - BUDGET AND ACTUAL Fiscal Year Ended Ju ne 30, 1999 Over ' (Under) Budget Actual Budget 1998 GENERAL GOVERNMENT Travel and meeting $30,500 $26,503 ($3,997) $28,178 City council 71,800 74,717 2,917 65,347 City administration 550,630 557,622 6,992 514,411 ' City clerk 136,810 115,746 (21,064) 81,317 223 128 Finance 273,220 250,211 (23,009) , City treasurer 12,020 10,181 (1,839) .11,757 City attorney 134,700 143,447 8,747 98,037 t General government buildings 397,700 288,472 (109,228) 323,785 Community promotion 269,500 252,785 (16,715) 250,287 City garage 35,700 25,281 (10,419) 35,215 ' $1,912,580 $1,744,965 ($167,615) $1,631,462 PUBLIC SAFETY ' Law enforcement $4,603,488 $3,997,681 ($605,807) $4,007,316 Animal regulation 80,000 45,892 (34,108) 57,138 Parking control 148,830 134,414 (14,416) 146,358 Crossing guard 118,320 103,101 (15,219) 91,688 ' Emergency services 19,400 2,096 (17,304) 6,677 Narcotics forfeiture - - - 42 $4,970,038 $4,283,184 ($686,854) $4,309,219 ' PUBLIC WORKS Engineering and administration $42,640 $47,602 $4,962 $33,154 ' Street and highway construction 150,800 430,743 279,943 146,310 TmfTic signs and striping maintenance 1,813 1,813 9,989 $193,440 $480,158 $286,718 $189,453 PUBLIC HEALTH Public health services - $50,900 $43,844 ($7,056) $45,381 ' PUBLIC RECREATION Administration $218,970 $208,822 ($10,148) $192,834 - Parks 900,500 896,197 (4,303) 847,260 Recreation 649,300 662,353 13,053 592,582 Aquatics 334,800 259,975 (74,825) 270,130 Dinsmoor Heritage House 3,950 2,890 (1,060) 3,373 $2,107,520 52,030,237 ($77,283) $1,906,179 COMMUNITY SERVICE Planning $228,630 $230,835 $2,205 $195,248 Building regulation 623,100 615,983 (7,117) 488,156 Engineering 266,600 227,620 (38,980) 222,462 Community improvements 119,790 114,117 (5,673) 106,016 ' $1,238,120 51,188,555 ($49,565) $1,011,882 CAPITAL OUTLAY $383,300 $419,087 $35,787 $56,182 ' 017) ($65 - APPROPRIATION RESERVES $65,017 - , ' Total Expenditures $10,920,915 $10,190,030 ($730,885) $9,149,758 33 THIS PAGE INTENTIONALLY LEFT BLANK 34 I I i SPECIAL REVENUE FUNDS ' Special Revenue Funds account for the proceeds of specific revenue sources (other than ' special assessments, expendable trusts and major capital projects) that are legally restricted to expenditures for specified purposes. 1 I 1 I 1 I Y 1 I 1 35 SPECIAL REVENUE FUNDS TRAFFIC SAFETY FUND Established to account for the receipt of vehicle code fines which are expended for traffic safety enforcement. STATE GAS TAR FUND Established to account for funds collected from the State of California which are used for street construction, street maintenance, engineering and administrative costs. AIR QUALITY MANAGEMENT DISTRICT FUND Established to account for funds collected from the State of California which are used for improving transportation systems and to reduce the reliance on private vehicles. LOCAL TRANSPORTATION FUND Established to account for state grants used to finance the construction of bikeways and sidewalks. PUBLIC TRANSPORTATION FUNDS Established to account for the City's share of additional sales tax collected in the County of Los Angeles as a result of Proposition A and C. The funds are used to finance public transportation projects. COMMUNITY DEVELOPMENT BLOCK GRANT FUND Established to account for Community Development Block Grants received from the United States Department of Housing and Urban Development. 1976 COMMUNITY PARKLANDS GRANT FUND Established to account for funds to be used for park projects. STREET LIGHTING FUND Established to account for the operation of street lights within the City. 36 1 1 SPECIAL REVENUE FUNDS (cont'd) NARCOTICS SEIZURE FUND Established to account for the funds received from the County of Los Angeles from the confiscation of cash and other valuables seized during drug related police raids. The funds are used to further enhance the City's drug related crime prevention and detection programs. LOW-MODERATE INCOME HOUSING SET-ASIDE FUND ' Established to account for the 209o' of gross property tax increment revenue received by the Agency to fund future projects involving the replacing or rehabilitation of low and moderate income housing within City limits. ' ROSEMEAD HOUSING DEVELOPMENT CORPORATION ' Established to account for the construction and financing of low and moderate income housing. It is a California nonprofit benefit corporation organized under Section 501(c)(3) ' of the Internal Revenue Code of 1986. CALIFORNIA WILDLIFE GRANT FUND Established to account for a state grant for pre-approved specified park projects.. I FEDERAL HIGHWAY GRANTS ' Established to account for the Federal Highway/Transportation Acts which are used for pre-approved highway projects. Application and funding processes are administered by Caltrans. I I I ' 37 ASSETS Cash and cash investments Receivables Due from other funds Total Assets LIABILITIES AND MUNICIPAL EQUITY Liabilities: Accounts payable Due to other funds Deferred revenue Total Liabilities Municipal Equity: Reserved for low-moderate income housing Unreserved, undesignated Total Equity Total Liabilities and Municipal Equity CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1999 Air Quality Local Traffic State Management -Trans- Safety Gas Tax District portation Fund Fund Fund Fund Public Trans- Community Development ' portation Block Grant Fund Fund I $ - $360,549 $151,932 $25,961 $1,169,593 $359,281 49,825 106,084 14,699 - 101,795 1,012,305 - 37,417 6,534 - 61,781 - $49,825 $504,050 $173,165 $25,961 $1,333,169 $1,371,586 ' $ - $217,957 $2,535 $ - $549,123 $233,610 ' 49,825 - - 25,961 - 1,042,203 95,773 ' 371 586 $1 $49,825 $217,957 $2,535 $25,961 $549,123 , , - 286,093 170,630 - 784,046 - ' $286,093 $170,630. $ - $784,046 $49,825 $504,050 $173,165 $25,961 $1,333,169 $1,371,586 ' 38 1 I f 1 t 1 1 1 CITY OF ROSEMEAD, CALIFORNIA 1 SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET continued June 30, 1999 1 1976 Community 1 Parklands Street Narcotics Grant Lighting Seizure Fund Fund Fund 1 $45,876 $210,216 $10,233 1 5,661 2,459 420 $48,335 $215,877 $10,653 1 1 Low-Moderate Rosemead Income Hous- Housing California ing Set-Aside Development Wildlife Fund Corporation Grant $4,774,557 $365,616 51,436 64,849 1,017,757 - - $5,857,163 5365,616 $1,436 1 S - $21,003 $10,653 $ - $15,447 $ - 1,400 1 $21,003 $10,653 $15,447 $1,400 1 1 48,335 194,874 $48,335 $194,874 1 $5,857,163 350,169 36 $5,857,163 $350,169 $36 $48,335 $215,877 $10,653 $5,857,163 $365,616 $1,436 i 1 1 1 1 1 39 I THIS PAGE INTENTIONALLY LEFT BLANK 40 I 1 i 1 1 1 1 1 i 1 i CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS i COMBINING BALANCE SHEET continued June 30, 1999 i ' Federal Highway Totals Grants 1999 1998 i ASSETS Cash and cash investments $7,475,250 $7,059,810 1 Receivables 1,021,000 2,376,218 698,441 Due from other funds 1,126,368 Total. Assets $1,021,000 $10,977,836 $7,758,251 LIABILITIES AND 1 MUNICIPAL EQUITY Liabilities: Accounts payable $129,828 $1,180,156 $344,841 Due to other funds 891,172 2,010,561 198,399 Deferred revenue 95,773 246,682 ' 490 6 922 789 Total Liabilities , $1,021,000 $3,28 , 1 Municipal Equity: Reserved for low-moderate income housing $5,857;163 $4,565,862 i Unreserved, undesignated - 1,834,183 2,402,467 Total Equity $7,691,346 $6,968,329 i Total Liabilities and Municipal Equity $1,021,000 $10,977,836 $7,758,251 i i 1 1. ' 41 CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Fiscal Year Ended June 30,1999 _ REVENUES: Special assessments Intergovernmental Charges for services Fines, forfeiture and penalties Use of money and property Other Total Revenues EXPENDITURES: Current: General government Public safety Public works Community services Total Expenditure Revenue over (under) expenditures Traffic State Safety Gas Tai Fund Fund 1,095,479 58,721 8,000 306,680 37,417 6,535 $306,680 $1,140,896 $65,256 306,680 1,498,641 $306,680 $1,498,641 i $ - ($357,745) $ - Air Quality Local Management Trans- District portation Fund Fund 3,000 $3,000 1,138,263 61,782 $1,200,045 OTHER FINANCING SOURCES (USES): Operating transfers: From other fiords (To) other funds Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING 25,968 Public Trans- portation Fund 1,477,335 $25,968 $1,477,335 $62,256 ($25,968) ($277,290) $ - $25,961 $ - $ - $25,961 $ - $ - ($357,745) $62,256 ($7) ($277,290) - 643,838 108,374 7 1,061,336 $ - $286,093 $170,630 $ - $784,046 92 i CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES continued Fiscal Year Ended June 30,1999 1976 Community Community Low-Moderate Rosemead Development Parklands Street Narcotics Income Housing Housing Block Grant Grant Lighting Seizure Set-Aside Development Fund Fund Fund Fund Fund Corporation $ - $ - $367,277 $ - $ - 2,220,613 37,120 1,000,000 2,459 457 452,416 164,400 $2,220,613 $2,459 $367,277 $37,577 $1,452,416 $164,400 $ _ $152,870 626,764 42,873 1,346,739 894,313 $2,241,052 $626,764 $42,873 $152,870 ($20,439) 20,439 $2,459 ($259,487) ($5,296) $20,439 $ - $1,452,416 $11,530 $ - 5,296 $238,885 $400,000 (400,000) (150,000) $ - $5,296 ($161,115) $250,000 $ - $2,459 ($259,487) $1,291,301 $261,530 45,876 454,361 4,565,862 88,639 $ - $48,335 $194,874 $5,857,163 $350,169 43 THIS PAGE INTENTIONALLY LEFT BLANK 44 1 1 1 REVENUES: i Special assessments intergovernmental ' Charges for services Fines, forfeiture and penalties Use of money and property ' Other EXPENDITURES: i Current: General government ' Public safety Public works Community services i i CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES continued Fiscal Year Ended June 30,1999 California Federal Wildlife Highway Totals Grant Grants 1999 1998 $ _ $ _ $367,277 $418,502 1,021,000 6,571,196 3,278,819 _ 8,000 9,700 - 306,680 70,218 725,466 498,701 0 160 $1,021,000 $7,978,619 $4,276,100 $152,870' $121,052 976,317 346,724 1,021,000 5,369,683 1,747,433 897,313 1,048,819 $1,021,000 $7,396,183 $3,264,028 $582,436 $1,012,072 i . OTHER FINANCING SOURCES (USES): Operating transfers: i From other funds (To) other funds 1 ' Revenue and other financing sources over (under) expenditures i FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ _ $ _ $690,581 $564,573 - (550,000) (447,206) $ _ $ _ $140,581 $117,367 $723,017 $1,129,439 36 6,968,329 5,838,890 $36 $7,691,346 $6,968,329 45 , CITY OF ROSEMEAD, CALIFORNIA TRAFFIC SAFETY FUND , STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1999 ' Over (Under) ' Budget Actual Budget 1998 REVENUES: 1 Fines, forfeiture and penalties $60,000 $306,680 $246,680 $70,218 Total Revenues $60,000 $306,680 $246,680 $70,218 t EXPENDITURES: ' Public safety $60,000 $306,680 $246,680 $70,218 Total Expenditures $60,000 $306,680 $246,680 $70,218 ' Revenues over (under) expenditu res $ - $ - $ - $ - OTHER FINANCING SOURCES (USES): Operating transfers: ' From (To) other funds $ - - $ - $ - $ - Revenue and other financing sources over (under) expenditures $ - $ - $ - $ - FUND BALANCE, BEGINNING ' FUND BALANCE, ENDING 1 46 1 ' CITY OF ROSEDIEAD, CALIFORNIA ' STATE GAS TAX FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ' Fiscal Year Ended June 30, 1999 1 ' REVENUES: Intergovernmental Charges for services ' Use of money and property Total Revenues EXPENDITURES: Public Works Community Services Total Expenditures Revenues over (under) expendilu OTHER FINANCING SOURCES (USES): Operating transfers: ' From (To) other funds Revenue and other financing sources ' over (under) expenditures FUND BALANCE, BEGINNING ' FUND BALANCE, ENDING Over (Under) Budget Actual Budget 1998 $907,500 $1,095,479 $187,979 $991,722 8,000 8,000 9,700 37,417 37,417 36,167 $915,500 $1,140,896 $225,396 $1,037,589 $1,345,950 $1,498,641 $152,691 $827,444 $1,345,950 51,498,641 $152,691 $827,444 res ($430,450) ($357,745) $72,705 $210,145 ($430,450) ($357,745) $72,705 $210,145 643,838 433,693 $286,093 $643,838 47 CITY OF ROSEMEAD, CALIFORNIA AIR QUALITY MANAGEMENT DISTRICT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1999 REVENUES: Intergovemmental Use of money and property Total Revenues EXPENDITURES: Public works Community Services Total Expenditures Revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Over (Under) Budget Actual Budget $60,000 $58,721 ($1,279) 6,535 6,535 $60,000 $65,256 $5,256 1 1998 ' $59,719 ' $59,719 ' $75,000 ($75,000) $51,289 4,000 3,000 (1,000) 3,857 ' $79,000 $3,000 ($76,000) $55,146 ($19,000) $62,256 ($81,256) $4,573 , $ $ , ($19,000) $62,256 $81,256 $4,573 ' 108,374 103,801 $170,630 $108,374 , i 48 ' ' CITY OF ROSEMEAD, CALIFORNIA Yr LOCAL TRANSPORTATTON FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ' Fiscal Year Ended June 30, 1999 1 ' REVENUES: Intergovernmental Use of money and property . Total Revenues ' EXPENDITURES: Public works Total Expenditures ' Revenues over (under) expenditures ' OTHER FINANCING SOURCES (USES): Operating transfers: From other fimds ' Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING ' FUND BALANCE, ENDING. Over (Under) Budget Actual Budget 1998 $20,000 $ ($20,000) 7 $20,000 S- ($20,000) $7 $40,000 $25,968 ($14,032) $40,000 $25,968 ($14,032) ($20,000) ($25,968) $5,968 $2;473 $2,473 ($2,466) $ - $25,961 $25,961 $2,473 ($20,000) ($7) $19,993 $7 7 $ - $7 49 CALIFORNIA CITY OF ROSEMEAD , , PUBLIC TRANSPORTATION FUND STATEMENT OF REVENUE, EXPENDITURES , AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1999 ' Over (Under) Budget Actual Budget 1998 REVENUES: Intergovernmental $1,040,000 $1,138,263 $98,263 $1,103,705 ' Use of money and property 25,000 61,782 36,782 55,553 Total Revenues $1,065,000 $1,200,045 $135,045 $1,159,258 ' , EXPENDITURES: Current: Public works $1,823,345 $1,477,335 ($346,010) $790,356 ' Total Expenditures $1,823,345 $1,477,335 ($346,010) $790,356 Revenues over (under) expenditures ($758,345) ($277,290) ($481,055) $368,902 ' ' OTHER FINANCING SOURCES (USES): Operating transfers: From other funds 147,206 To other funds - - - (147,206) ' Total Other Financing Sources (Uses) $ - $ - $ - $ - Revenue a l other financing sources , over (under) expenditures ($758,345) ($277,290) - $481,055 $368,902 FUND BALANCE, BEGINNING 1,061,336 692,434 ' FUND BALANCE, ENDING $784,046 $1,061,336 ' 50 ' ' CITY OF ROSEMEAD, CALIFORNIA ' COMMUNITY DEVELOPMENT BLOCK GRANT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1999 Over ' (Under) Budget Actual Budget 1998 ' REVENUES: Intergovernmental $3,145,338 $2,220,613 ($924,725) $1,120,833 ' Total Revenues $3,145,338 $2,220,613 ($924,725) $1,120,833 ' EXPENDITURES: Current: Public works $1,612,800 $1,346,739 ($266,061) $75,871 Community services 1,532,538 894,313 (638,225) 1,044,962 Total Expenditures $3,145,338 $2,241,052 ($904,286) $1,120,833 ' Revenues over (under) expenditures ($20,439) ($20,439) ' OTHER FINANCING SOURCES (USES): Operating transfers: . From other funds S - 20,439 20,439 $ Revenue and other financing sources t over (under) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING e 51 CITY OF ROSEMEAD, CALIFORNIA 1976 COMMUNITY PARKLANDS GRANT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1999 REVENUES: Intergovernmental Use of money and property Total Revenues EXPENDITURES: Public Recreation Total Expenditures Revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Budget Actual s- x- 2,100 2,459 a- $2,459 1 Over (Under) Budget , 1998 359 2,468 $359 468 ' $2 , s- a- a- a- ' S- $2,459 $2,459 $2,468 52 $2,459 $2,459 $2,468 45 876 43 408 ' , , $48,335 $45,876 ' 1 ' CITY OF ROSEMEAD, CALIFORNIA ' STREET LIGHTING FUND STATEMENT OF REVENUE, EXPENDITL AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1999 1 ' REVENUES: Special Assessment ' Total Revenues EXPENDITURES: Public safety Total Expenditures Revenues over (under) expenditures OTHER FINANCING SOURCES (USES): ' Operating transfers: From (To) other funds ' Revenue and other financing sources over (under) expenditures ' FUND BALANCE, BEGINNING FUND BALANCE, ENDING Budget Actual Over (Under) Budget 1998 $360,000 $367,277 $7,277 $418,502 $360,000 $367,277 $7,277 $418,502 $633,000 $626,764 ($6,236) - $230,811 $633,000 $626,764 ($6,236) $230,811 ($273,000) ($259,487) $13,513 $187,691 $ $ ($273,000) ($259,487) $13,513 $187,691 $194,874 53 266,670 $454,361 ' CITY OF ROSEMEAD, CALIFORNIA NARCOTICS SEIZURE FUND , STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1999 ' I Over (Under) ' Budget Actual Budget 1998 REVENUES: , Intergovernmental $37,120 $37,120 $2,840 Use of money and property - 457 457 - , Total Revenues $37,577 $37,577 $2,840 ' EXPENDITURES: Public Safety $49,680 $42,873 ($6,807) $45,695 ' Total Expenditures $49,680 $42,873 ($6,807) $45,695 Revenues over (under) expenditures ($5,296) $44,384 ($42,855) , OTHER FINANCING SOURCES (USES): , Operating transfers: From other funds $49,150 $5,296 ($43,854) $42,855 , Revenue and other financing sources over (under) expenditures ($530) $530 ' FUND BALANCE, BEGINNING FUND BALANCE, ENDING 54 I I CITY OF ROSEMEAD, CALIFORNIA ' LOW-MODERATE INCOME HOUSING FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ' FLwA Year Ended June 30, 1999 Over ' (Under) Budget Actual Budget 1998 ' REVENUES: Intergovernmental $1,000,000 $1,000,000 Use of money and property 210,000 452,416 242,416 .241,906 ' 241 906 Total Revenues $210,000 $1,452,416 $1,242,416 , $ EXPENDITURES: General government $ Total Expenditures - ' Revenues over (under) expenditures $210,000 $1,452,416 $1,242,416 $241,906 ' OTHER FINANCING SOURCES (USES): Operating transfers: From other funds $652,440 $238,885 ($413,555) ' To other funds (5,143,909) (400,000) 4,743,909 72,039 Total Other Financing Sources (Uses) ($4,491,469) ($161,115) $4,330,354 $72,039 ' over (under) expenditures ($4,281,469) $1,291,301 $5,572,770 $313,945 FUND BALANCE, BEGINNING 4,565,862 4,251,917 862 565 $4 FUND BALANCE, ENDING $5,857,163 , ; ' 55 CITY OF ROSEMEAD, CALIFORNIA ROSEMEAD HOUSING DEVELOPMENT CORPORATION STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1999 REVENUES: Use of money and property Other Total Revenues General government Total Expenditures Revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers: From other finds To other funds Total Other Financing Sources (Uses) Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Over (Under) Budget Actual Budget $161,350 $164,400 $3,050 5,000 (51000) $166,350 $164,400 ($1,950) $5,161,040 $152,870 ($5,008,170) $5,161,040 $152,870 ($5,008,170) ($4,994,690) $11,530 ($5,006,220) 5,143,909 400,000 (4,743,909) (150,000) (150,000) $4,993,909 $250,000 ($4,743,909) ($781) $261,530 $262,311 88,639 $350,169 56 1 1 1 i 1998 i $162,600 i 160 $162,760 i $121,052 i $121,052 i $41,708 i ' $41,708 46,931 $88,639 i i 1 1 1 CITY OF ROSEMEAD, CALIFORNIA ' CALIFORNIA WILDLIFE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1999 ' REVENUES: Intergovernmental ' Total Revenues EXPENDITURES: Public Recreation Total Expenditures Revenues over (under) expenditures OTHER FINANCING SOURCES (USES): ' Operating transfers: From (To) other funds Revenue and other financing sources over (under) expenditures ' FUND BALANCE, BEGINNING FUND BALANCE, ENDING Over (Under) Budget Actual Budget 1998 36 36 $36 $36 57 CALIFORNIA CITY OF ROSEMEAD ' , FEDERAL HIGHWAY GRANTS FUND STATEMENT OF REVENUE, EXPENDITURES t AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1999 ' Over (Under) Budget Actual Budget 1998 , REVENUES: Intergovernmental $1,021,000 $1,021,000 $ Use of money and property - - - - T l R 000 000 $1 021 $1 021 , ota evenues , , , , EXPENDITURES: ' Public works $1,021,000 $1,021,000 $ $ di T l E 000 $1 021 000 $1 021 $ $ i ota xpen tures , , , , Revenues over (under) expenditu res $ $ $ ' OTHER FINANCING SOURCES (USES): , Operating transfers: From (To) other fiuxls $ - Revenue and other financing sources i ' over (under) expenditures BEGINNING FUND BALANCE ' , FUND BALANCE, ENDING $ S 1 58 I ' O 0 0 8 0 8 a 0 0 0 0 0 0 O CAPITAL PROJECTS FUND (Redevelopment Fund) The Capital Projects Fund accounts for financial resources to be used for the acquisition or construction of major capital facilities within the Redevelopment Agency. 59 CITY OF ROSEMEAD, CALIFORNIA CAPITAL PROJECTS FUND BALANCESHEET June 30, 1999 1999 1998 ASSETS Cash and investments Receivables Due from other funds Total Assets LIABILITIES AND MUNICIPAL EQUITY Liabilities: Accounts payable and accrued liabilities Due to other funds Total Liabilities Municipal Equity and Other Credits: Fund Balance: Unreserved: Designated for capital projects Total Fund Balance Total Liabilities, Municipal Equity and Other Credits $15,836,240 $18,394,832 373,832 287,784 5 $16,210,077 $18,682,616 $252,708 $309,914 6,994 $252,708 $316,908 $15,957,369 $18,365,708 $15,957,369 $18,365,708 $16,210,077 $18,682,616 60 CITY OF ROSEMEAD, CALIFORNIA CAPITAL PROJECTS FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE e Fiscal Year Ended June 30, 1999 O O REVENUES: Property taxes and special assessments Use of money and property Other O Total Revenue EXPENDITURES: Current: General Government 0 Public Works Total Expenditures Revenue over (under) expenditures Q OTHER FINANCING SOURCES (USES): Operating transfers: From other funds (To) other funds Total Other Financing Sources (Uses) 0 Revenues and Other Financing Sources over (under) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING 61 1999 1998 $2,870,290 $2,770,865 765,201 1,213,094 182 44,855 $3,635,673 $4,028,814 $50,577 $47,566 2,674,347 1,350,424 $2,724,924 $1,397,990 $910,749 $2,630,824 $651 . (3,319,739) (3,304,480) ($3,319,088) ($3,304,480) ($2,408,339) ($673,656) 18,365,708 19,039,364 $15,957,369 $18,365,708 AND ( REVENUE Property taxes and special Use of money and properg Other EXPENDITURES Current General government Public works Revenue over OTHER FINANCING SC Operating transfers: From other funds (To) other funds Total Other Financing Revenue and other over (under) expe FUND BALANCE, FUND BALANCE, ENDING CITY OF ROSEMEAD, CALIFORNIA ' CAPITAL PROJECTS FUND ' STATEMENT OF REVENUE, EXPENDITURES :HANGES IN FUND BALANCE - BUDGET AND ACTUAL Fiscal Year Ended June 30, 1999 Over (Under) Budget Actual Budget 1998 , ssments $2,800,000 $2,870,290 $70,290 $2,770,865 330,000 765,201 435,201 1,213,094 182 182 44,855 $3,130,000 $3,635,673 $505,673 $4,028,814 ' $45,900 $50,577 $4,677 $47,566 9,075,700 2,674,347 (6,401,353) 1,350,424 $9,121,600 $2,724,924 ($6,396,676) $1,397,990 nditures ($5,991,600) $910,749 $6,902,349 $2,630,824 (USES): ' 9 (3,878,450) (3,31 739) 558,711 (3,304,480) i -ces(Uses) ($3,878,450) ($3,319,088) $559,362 ($3,304,480) ig sources 870 050) ($9 408 ($2 339) 461 711 $7 ($673 656) , , , , , , , , 18,365,708 19,039,364 ' $15,957,369 $18,365,708 i 1 i 62 i 0 8 0 1 DEBT SERVICE FUND The Debt Service Fund account for the accumulation of resources for the payment of general long- term debt principal, interest and related costs. 63 CITY OF ROSEMEAD, CALIFORNIA DEBT SERVICE FUND BALANCESHEET June 30, 1999 1999 1998 ASSETS Cash and investments with fiscal agent Receivables Total Assets LIABILITIES AND MUNICIPAL EQUITY Liabilities: Accounts payable and accrued liabilities Total Liabilities Municipal Equity and Other Credits: Fund Balance: Reserved: Debt service Total Fund Balance Total Liabilities, Municipal Equity and Other Credits 64 $2,322,185 $2,322,681 11,191 30,593 $2,333,376 $2,353,274 $2,333,376 $2,353,274 $2,333,376 $2,353,274 $2,333,376 $2,353,274 a a a a U a 0 0 CITY OF ROSEMEAD, CALIFORNIA DEBT SERVICE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1999 1999 1998 REVENUES: Use of money and property $117,386 $141,574 Total Revenue $117,386 $141,574 EXPENDITURES: Debt service: Principal $310,000 $295,000 Interest 1,960,187 1,984,054 Total Expenditures $2,270,187 $2,279,054 Revenue over(under)expenditures ($2,152,801) ($2,137,480) OTHER FINANCING SOURCES (USES): Operating transfers: From other funds $2,132,903 $2,135,141 (To) other funds Total Other Financing Sources (Uses) $2,132,903 $2,135,141 Revenues and Other Financing Sources over (under) expenditures ($19,898) ($2,339) FUND BALANCE, BEGINNING 2,353,274 2,355,613 FUND BALANCE, ENDING $2,333,376 $2,353,274 65 ITY OF RO EMEAD CA LIFORNIA , S C DEBT SERVICE FUND , STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Fiscal Year Ended June 30, 1999 ' Over ' (Under) Budget Actual Budget 1998 , REVENUE Interest $130,000 $117,386 ($12,614) $141,574 Other - $130,000 $117,386 ($12,614) $141,574 EXPENDITURES Debt Service: Principal $310,000 $310,000 $295,000 , Interest 1,968,713 1,960,187 (8,526) 1,984,054 Certificate refunding , $2,278,713 $2,270,187 ($8,526) $2,279,054 088 $4 137 480 $2 ' Revenue over (under) expenditures ($2,148,713) ($2,152,801) , ) ( , ) , ( , OTHER FINANCING SOURCES (USES): Operating transfers: From other funds $2,278,710 $2,132,903 ($145,807) $2,135,141 ' (To) other funds - Total Other Financing Sources (Uses) $2,278,710 $2,132,903 ($145,807) $2,135,141 Revenue and other financing sources over (under) expenditures $129,997 ($19,898) ($149,895) ($2,339). , FUND BALANCE, BEGINNING 2,353,274 2,355,613 ' FUND BALANCE, ENDING $2,333,376 $2,353,274 66 ~ ' D D D D 0 0 0 1 FIDUCIARY FUND TYPES PENSION TRUST FUND Established to account for the activity of the retirement plan for employees of the City. AGENCY FUND Established to account for the assets held in trustee capacity or as an agent. The cash being held primarily represents amounts placed on deposit for refundable permits and performance bonds. 67 CITY OF ROSEMEAD, CALIFORNIA FIDUCIARY FUNDS COMBINING BALANCE SHEET June 30, 1999 ASSETS Pension Trust Refundable Deposits Totals Cash and cash investments Receivables Total Assets LIABILITIES AND MUNICIPAL EQUITY Liabilities: Due to other funds Refundable deposits Total Liabilities Municipal Equity: Fund balance, reserved for employees' retirement Total Liabilities and Municipal Equity 1999 1998 $190,924 $106,326 $297,250 $305,449 $190,924 $106,326 $297,250 $305,449 $108 $108 106,218 106,218 102,008 $106,326 $106,326 $102,008 $190,924 $ - $190,924 $203,441 $190,924 $106,326 $297,250 $305,449 68 0 a 0 0 0 0 0 D 0 0 D 0 0 0 0 0 0 0 0 CITY OF ROSEMEAD, CALIFORNIA AGENCY FUND COMBINING STATEMENT OF CHANGUII ASSETS AND LIABILITIES Fiscal Year Ended June 30, 1999 s.s'ets Cash and cash investments Receivable Total Assets 7_:laui►ities Due to other funds Refundable deposits Balance July 1, 1998 Additions Balance Jas June 30, 1999 $102,008 $30,112 ;34 $106,326 $102,008 $30,112 =79 $106,326 $108 $108 102,008 28,321 l 106,218 $102,008 $28,429 WWI $106,326 69 THIS PAGE INTENTIONALLY LEFT BLANK 70 I I 1 1 1 1 H a 0 ACCOUNT GROUPS GENERAL FIXED ASSETS ACCOUNT GROUP Established to account for all property and equipment except for public domain fixed assets (e.g., streets, bridges, sidewalks, curbs, gutters and storm drainage systems). GENERAL LONG-TERM DEBT ACCOUNT GROUP Established to account for the outstanding principal balances of all long-term debt expected to be financed from governmental fund types. 71 CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF GENERAL FIXED ASSETS June 30, 1999 GENERAL FIXED ASSETS 1999 Land $4,730,565 Buildings and improvements 6,406,852 Vehicles 268,722 Furniture and office equipment 1,362,749 Special equipment and machinery 605,475 Other improvements 868,483 Total General Fixed Assets SOURCES OF FUNDS Prior Years Balance General Fund Community Development Block Grant Community Parklands Grant California Wildlife Grant Redevelopment Agency Rosemead Housing Development Corporation Ending Balance 1998 $4,730,565 5,785,314 258,873 1,314,296 595,486 868,483 $14,242,846 $13,553,017 Balance July 1, 1998 $8,625,304 269,008 54,767 1,353 84,010 1,048,707 3,469,868 3,469,868 $13,553,017 $689,829 $14,242,846 Balance Additions Deletions June 30, 1999 $8,625,304 61,794 - 330,802 - 54,767 - 1,353 - 84,010 628,035 - 1,676,742 72 O A CITY O F ROSEMEAD, C ALIFORNI STATEMENT OF CHANGES OF GENERAL FIXED ASSETS 0 Fiscal Year Ended June 30, 1999 0 Balance Balance Function and Activity July 1, 1998 Additions Deletions June 30, 1999 0 Land Prior year balance $542,926 $542,926 Redevelopment agency 2,350,308 - - 2,350,308 0 Housing development corporation 1,837,331 1,837,331 Total land $4,730,565 $4,730,565 0 Buildings and improvements Prior year balance $1,987,300 - $1,987,300 0 General government Community services 11,971 50,064 - - 11,971 50,064 Public recreation 1,991 - - 1,991 Redevelopment agency 2,101,452 621,538 2,722,990 0 Housing development corporation 1,632,536 - - 1,632,536 Total buildings and improvements $5,785,314 $621,538 $6,406,852 0 Vehicles Prior year balance $228,224 $228,224 General government 30,649 9,849 - 40,498 0 Total vehicles $258,873 $9,849 $268,722 Furniture and office equipment Prior year balance $427,588 $427,588 0 General government 56,998 8,877 65,875 Public safety 4,008 30,512 34,520 Community development 11,184 707 = 11,891 0 Cultural & leisure 17,561 1,860 19,421 Redevelopment agency 796,957 6,497 - 803,454 Total furniture and office 0 equipment $1,314,296 $48,453 $1,362,749 Special equipment and machinery Prior year balance $490,765 $490,765 Public safety $43,143 6,662 49,805 Community development $2,054 - - 2,054 0 Cultural & leisure 59,524 3,327 62,851 Total special equipment and machinery $595,486 $9,989 $605,475 0 Other improvements Prior year balance $748,492 $748,492 0 General government $4,927 = - 4,927 Public safety 9,464 9,464 Cultural & leisure 105,600 105,600 0 Total other improvements $868,483 $868,483 Total general fixed assets $13,553,017 $689,829 $14,242,846 0 73 I I I U U U I D U 0 0 I I S I I 1 I 1 YEAR 2000 COMPLIANCE 75 I U CITY OF ROSEMEAD YEAR 2000 COMPLIANCE fhe City's operations, like those of many governmental and business entities, may be affected by the inability of certain computer programs and electronic systems with embedded microprocessor chips to recognize calendar dates beyond the year 1999. Unless such programs or microprocessors are modified or replaced prior to the Year 2000, they may not function properly after December 31, 1999, causing system failures or miscalculations that could disrupt the City's operations. Q fhe following stages have been identified as necessary to implement a Year 2000 compliant system: Awareness Stage - Establishing a budget and project plan for dealing with the Year 2000 0 issue. Assessment Stage - Identifying all of its mission critical systems and individual components of those systems. Remediation Stage - Making changes to systems and equipment. Validation/Testing Stage - Validating and testing the changes made during the conversion and remediation process. The City is in the process of completing comprehensive inventories of the. City's software, hardware, embedded systems and business relationships (Assessment Stage). Preliminary inventories have been completed with the exception of potential embedded systems. The'City's staff is currently developing this inventory for their functional areas. The City plans to be Year 2000 compliant by December 1999. As part of the ongoing scheduled monitoring of progress, contingency plans will be initiated for any systems that appear to be noncompliant at that time. Because of the unprecedented nature of the Year 2000 issue, its effects and the success of related ' remediation efforts will not be fully determinable until the Year 2000 and thereafter. Management cannot assure that the City is or will be Year 2000 ready, that the City's remediation efforts will be successful in whole or in part, or that parties with whom the City business will be Year 2000 compliant. 1 1 1 1 1 77 THIS PAGE INTENTIONALLY LEFT BLANK 78 t t t t t t t t t t t t t t t t t 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 8 T I C A L I I Q U 0 Ul I I I 0 1 I 1 i 1 1 THIS PAGE INTENTIONALLY LEFT BLANK 79 CITY OF ROSEMEAD, CALIFORNIA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) ALL GOVERNMENTAL FUND TYPES Last Ten Fiscal Years Fiscal Public Public General Public Year Safety Works Government Health 1989-90 $3,809,631 $8,536,328 $1,712,102 $856,298 1990-91 3,994,221 6,374,969 2,215,912 1,014,349 1991-92 4,268,763 8,757,535 2,710,801 95,495 1992-93 4,264,366 3,598,687 2,429,325 1,677 1993-94 4,596,592 4,096,433 2,545,662 17,665 1994-95 4,666,871 4,400,953 1,918,204 39,852 1995-96 4,733,426 3,788,669 1,946,848 44,863 1996-97 4,922,197 3,349,572 2,053,607 45,966 1997-98 4,655,943 3,287,310 1,800,080 45,381 1998-99 5,259,501 8,524,188 1,948,412 43,844 Public Recreation $1,775,194 1,838,493 1,959,686 1,858,238 1,719,424 1,901,397 1,869,684 2,144,066 1,906,179 2,030,237 (1) General Governmental expenditures includes expenditures of the General, Special Revenue, Capital Projects, and Debt Service Funds only. Operating Transfers Out have been excluded from all years. 80 O U i , . 1 11 Community Capital Services Outlay $1,510,545 $123,443 2,070,348 160,397 1,592,156 144,180 1,411,467 36,384 2,092,838 1,897,838 2,090,216 1,713,742 1,867,352 119,184 1,976,965 47,683 2,060,701 56,182 2,085,868 419,087 Millions $25 $20 $15 $10 $5 0 Public Works OPublic Safety ODebt Services MGeneral Govt. MPublic Recr. Comm. Serv. mMisc. Debt Inter- Service governmental Other Total $2,618,539 $20,942,080 2,602,350 20,271,039 2,588,617 22,117,233 2,569,813 580,791 213,721 16,964,469 6,026,877 175,295 (59,745) 23,108,879 2,279,153 175,330 2,210,624 21,396,342 2,271,154 - 180,000 16,821,180 2,271,333 - 16,811,389 2,279,054 - 16,090,830 2,270,187 - 22,581,324 81 i I 199495 1995-96 1996-97 1997-98 1998-99 a CITY OF ROSEMEAD, CALIFORNIA GENERAL REVENUES BY SOURCE (1) u ALL GOVERNMENTAL FUND TYPES u Last Ten Fiscal Years a Fiscal, Property Special Other Licenses Inter- Year Tax Assessments Taxes and Permits governmental 1988-89 $3,921,667 $273,777 $3,591,798 $496,966 $4,518,697 1989-90 3,204,232 303,374 4,176,257 533,050 3,725,299 1990-91 3,059,892 347,061 4,245,201 479,084 4,557,510 e 1991-92 .3,746,398 384,036 3,787,547 554,935 4,824,498 1992-93 3,379,446 395,646 3,866,690 579,124 5,174,436 1993-94 3,185,746 342,315 4,011,829 812,096 5,985,542 1994-95 3,411,909 386,814 3,907,616 699,234 6,733,543 1995-96 2,671,909 365,184 3,664,031 760,191 6,155,519 1996-97 2,845,775 382,609 3,952,511 760,037 7,532,960 1997-98 2,770,865 418,502 4,134,533 739,162 6,758,226 0 1998-99 2,870,290 367,277 3,999,539 964,567 10,120,540 (1) Includes General, Special Revenues, Capital Projects, and Debt Service Funds. 82 ' O O 0 D r Fines, Use of Charges for Forfeitures Money and Services and Penalties Property Other Total $338,686 $477,896 $2,788,346 $97,468 $16,505,301 284,851 524,001 2,3 89,057 191,389 15,331,510 228,615 355,047 1,844,552 165,237 15,282,199 .366,345 278,253 1,625,706 391,194 15,958,912 347,262 313,980 1,258,827 318,603 15,634,014 429,932 338,786 1,887,659 307,415 17,301,320 564,962 317,969 1,383,762 387,606 17,793,415 539,055 365,400 2,667,346 138,159 17,326,794 584,033 363,938 2,415,335 63,262 18,900,460 499,492 349,322 2,497,294 71,628 18,239,024 643,385 625,756 2,244,326 155,534 21,991,214 Millions $5 $t5 $1i $5 199495 1995-96 1996-97 1997-98 1998-99 mintergovt. mProp. Tax oOther Taxes 0Use of M & P mMisc. OLic. & Permits ®Fines, For. & Pen. 1 83 Is CITY OF ROSEMEAD, CALIFORNIA OTHER TAX REVENUES BY SOURCE ALL GOVERNMENTAL FUND TYPES Last Ten Fiscal Years Fiscal Maintenance Real Estate Trailer Coach Sales and Year District Taxes Tax Use Tax 1989-90 $698 $142,520 $1,334 $3,205,342 1990-91 1,157 62,734 4,206 3,069,138 1991-92 1,309 55,567 2,474 2,679,103 1992-93 2,427 ' 38,974 2,810 2,647,816 1993-94 1,192 36,696 - 2,704,229 1994-95 1,336 36,739 - 2,582,644 1995-96 1,291 40,404 - 2,309,758 1996-97 1,575 47,904 - 2,550,967 1997-98 1,366 46,600 - 2,658,370 1998-99 1,248 58,767 2;'529,135 f - 84 1 f 0 D A D Transient Franchise Occupancy Fees Tax Total $494,223 $332,140 $4,176,257 556,710 551,256 4,245,201 525,327 523,767 3,787,547 547,920 626,743 3,866,690 550,555 719,157 4,011,829 568,020 718,877 3,907,616 577,004 735,574 3,664,031 574,497 777,568 3,952,511 605,586 822,611 4,134,533 600,899 809,490 3,999,539 85 CITY OF ROSEMEAD, CALIFORNIA ASSESSED VALUATIONS OF TAXABLE PROPERTY Last Ten Fiscal Years State Assessed Fiscal Personal Unitary and Operating (1) Year Land Improvements Property Non-unitary Property 1989-90 $533,974,252 $652,418,780 $6,569,433 $160,283,765 1990-91 618,578,205 722,428,113 8,491,869 117,327,265 1991-92 687,981,018 783,764,885 8,531,233 157,129,799 1992-93 753,698,398 832,424,224 11,587,587 160,638,918 1993-94 789,170,566 869,204,989 10,509,734 138,033,544 1994-95 820,044,812 884,095,866 11,198,234 140,532,446 1995-96 837,930,509 857,272,720 11,534,790 139,789,581 1996-97 839,391,647 858,050,748 10,568,291 137,886,292 1997-98 841,497,520 852,913,158 11,363,160 140,328,015 1998-99 852,261,064 856,431,323 10,742,661 141,741,081 (1) Effective with fiscal year 1988-89, Unitary and Operating Non-unitary assessed valuation are listed separately. Source: Los Angeles County Auditor-Controller, Tax Division 86 J•ux'.. •.4 •Y.ra O Locally Assessed Personal Land Improvements Property 0 $14,019,566 $48,546,323 13 855 289 336 467 41 , , , , 0 13,991,213 40,321,969 13,854,565 34,011,333 15,022,792 29,128,797 13,103,797 26,191,169 14,186,602 25,615,938 14,583,278 25,615,938 t 13,161,523 25,688,653 13,954,969 26,590,993 Total $1,415,812,119 1,522,017,208 1,691,720,117 1,806,215,025 1,851,070,422 1,895,166,324 1,886,330,140 1,886,096,194 1,984,952,029 1,901,722,091 Property Exemptions $26,320,466 28,314,973 29,940,297 31,116,915 21,456,065 24,386,741 28,458,429 33,592,337 28,607,474 28,559,132 NET PROPERTY VALUE Millions $2500 - 1 $2000 Net Property Value $1,389,491,653 1,493,702,235 1,661,779,820 1,775,098,110 1,829,614,357 1,870,779,583 1,857,871,711 1,852,503,857 1,956,344,555 1,873,162,959 $1500 $1000 $0 1989-90 1990.91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997 98 1998-99 87 CITY OF ROSEMEAD, CALIFORNIA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS LIGHTING AND MAINTENANCE DISTRICT Last Ten Fiscal Years Current Percentage Assessment Assessment Collected Fiscal Year Levy Collected Currently 1989-90 $315,287 $304,072 96.44% 1990-91 314,824 355,366 112.88 1991-92 350,800 385,345 109.85 1992-93 388,417 398,073 102.49 1993-94 347,298 343,507 98.91 1994-95 339,205 388,150 114.43 1995-96 350,258 366,475 104.63 1996-97 373,885 384,184 102.75 1997-98 377,243 419,868 111.30 1998-99 383,237 368,525 96.16 88 a CITY OF ROSEMEAD, CALIFORNIA COMPUTATION OF LEGAL DEBT MARGIN June 30, 1999 O Total assessed valuation Debt limit: 3.75% of total assessed valuation a Amount of debt applicable to debt limit: Total bonded debt Less tax allocation notes exempt by law Total amount of debt application to debt limit Legal debt margin 89 $35,300,000 35,300,000 $ 1,873,162,959 $ 70,243,611 $ 70,243,611 CITY OF ROSEMEAD, CALIFORNIA RATIO OF ANNUAL DEBT SERVICE EXPENDITURE FOR TOTAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscal Years Debt Service Total (1) To Total Fiscal Total Debt General General Year Principal Interest Service Expenditures Expenditures 1989-90 $1,515,000 $1,101,760 $2,616,760 $20,942,080 12.50 % 1990-91 1,630,000 972,350 2,602,350 20,271,039 12.84 1991-92 1,760,000 828,617 2,588,617 22,117,233 11.70 1992-93 1,900,000 669,813 2,569,813 16,964,469 15.15 1993-94 2,055,000 1,137,474 3,192,474 23,108,879 13.81 1994-95 260,000 2,019,153 2,279,153 21,550,318 10.58 1995-96 265,000 2,006,154 2,271,154 16,821,180 13.50 1996-97 280,000 1,991,333 2,271,333 16,811,389 13.51 1997-98 295,000 1,984,054 2,279,054 16,090,830 14.16 1998-99 310,000 1,960,187 2,270,187 22,581,324 10.05 (1) Includes all Governmental Fund Types. Premium for defeasement of bonds not included. 90 U e a 0 0 a 815 $0 $15 $10 $5 1989-90 $25 $20 $15 $10 $5 $0 1994-95 TOTAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Millions 1990-91 1991-92 1992-93 1993-94 Millions 1995-96 1996-97 1997-98 1998-99 91 CITY OF ROSEMEAD, CALIFORNIA RATIO OF ANNUAL DEBT.SERVICE EXPENDITURE FOR TOTAL BONDED DEBT TO TOT'AL'ASSESSED'VALUATION Last Ten Fiscal Years Fiscal Year Principal Interest 1989-90 $1,515,000 $1,101,760 1990-91 1,630,000 972,350 1991-92 1,760,000 828,617 1992-93 1,900,000 669,813 1993-94 2,055,000 1,137,474 1994-95 260,000 2,019,153 1995-96 265,000 2,006;154 1996-97 280,000 1,991,333 1997-98 295,000 1,984,054 1998-99 310,000 1,960,187 Total Debt Service $2,616,760 2,602,350 2,588,617 '2,569,813 3,192,474 2,279,153, 2,271,154` 2,271,333 2,279,054 2,270,187 Total Assessed Valuation $1,389,491,653 1,493,702,235 1,661,779,820 1,775,098,110 1,829,614,357 1,870,779,583 1,857,871,711 1,852,503,85Z,- 1,956,344,355 1,873,162,959 92 0 0 Debt Service To Total Assessed e Valuation 0.19 % 0.17 ' 0.16 0.15 0.17 0.12 e 0.12 0.12 , 0.12 0.12 o 0 0 0 0 a a 1 CITY OF ROSEMEAD, CALIFORNIA RATIO OF ANNUAL DEBT SERVICE EXPENDITURE FOR TOTAL BONDED DEBT PER CAPITA Last Ten Fiscal Years Debt Service Fiscal Total Debt To Total Year Principal Interest Service Population Population 1989-90 $1,515,000 $1,101,760 $2,616,760 51,156 $51.15 1990-91 1,630,000 972,350 2,602,350 52,247 49.81 1991-92 1,760,000 828,617 2,588,617 52,812 49.02 1992-93 1,900,000 669,813 2,569,813 52,922 48.56 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 1998-99 310,000 1,960,187 2,270,187 56,664 40.06 93 is CALIFO S E D RNIA CITY OF RO EM A , PROPERTY TA X RATES - ALL OVERLAPPING GOVERNMENTS (Per $100 of Assessed Valuation) Last Ten Fiscal Years e Los Los Angeles County Q Fiscal City of Angeles School Water Flood Sanitation Year Rosemead County Districts Districts Control District Total 1989-90 0 1.002242 0.109700 0.048900 0.006944 0_ 1.1.67786 1990-91 0 1.002104 0.072543 0.061533 0.005786 0 1:141966 1991-92 0 1.001409 0.078219 0.044300 0.003397 0 1.127325 4 34 1992-93 0 1.001713 0.144909 0.014100 0.004212 0 1.16 9 1993-94 0 1.001713 0.073026 0.044100 0.004212 0 1.123051 1994-95 0 1.001993 0.080512 0.038900 0.006041 0 1.127446 1995-96 0 1.001604 0 0.038900 0.001991 0 1.042495 1996-97 0 1:001604 0 0.038900 0.001991 0 . 1.042495 1997-98 0 1.001604 0 0.038900 0.001991 0. 1.042495 a 1998-99 0 1.001604 0 0.038900 0.001991 0 1.042495 Source: Tax Rates B y Tax Rate Are as. Los Angeles County Tax Collector 94 I ' CITY OF ROSEMEAD, CALIFORNIA SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT 1 1998-99 Assessed Valuation: 0 June 30, 1999 $1,504,854,487 (after deducting $226,567,391 redevelopment incremental valuation) Direct and Overlapping Tax and Assessment Debt: % A pplicable Debt 6/30/97 Los Angeles County 0.324 % $171,736 Los Angeles County Flood Control District 0.338 130,924 Metropolitan Water District 0.177 1,023,122 San Gabriel Valley Municipal Water District 0.016 544 Montebello Unified School District 1.700 758,838 Los Angeles County Regional Park and Open Space District 0.324 1,574,170 City of Rosemead 100.000 Total Direct and Overlapping Tar and Assessment Debt: $3,659334 e Overlapping General Fund Obligation Debt: Los Angeles County General Fund Obligations 0.324 % $5,413,144 Los Angeles County Pension Obligations 0.324 7,062,398 Los Angeles County Superintendent of Schools Certificates of Participation 0324 10,660 Los Angeles County Flood Control District Certificates of Participation 0.338 632,685 Los Angeles County Sanitation District #2 Authority 0.005 1,932 ' Los Angeles County Sanitation District # 15 Authority 7.019 2,067,818 Los Angeles Community College District Certificates of Participation 0.284 178,778 Pasadena Area Community College Certificates of Participation 2.926 214,476 ' Montebello Unified School District Certificates of Participation 1.809 360,896 San Gabriel Unified School District Certificates of Participation 0.992 88,747 E1 Monte Union High School District Certificates of Participation 13.829 929,309 ' El Monte School District and Certificates of Participation 0.004 154 Rosemead School District Certificates of Participation 64.863 2,925,321 San Gabriel Valley Mosquito Abatement District Certificates of Participation 3.181 47,556 ' Total Gross Direct and Overlapping General Fund Debt: $19,933,874 Less: Los Angeles County Certificates of Participation (100% self-supporting from leasehold revenues on properties in Marina Del Rey) 469,120 ' Total Net Direct and Overlapping Bonded Debt $19,464,754 Gross Combined Total Debt $23,593,208 (1) ' Net Combined Total Debt $23,124,088 (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax ' allocation bonds and non-bonded capital lease obligations. Ratios to Assessed Valuations: Direct Debt 0.00 % Total Overlapping Tax & Assessment 0.21 % ' Gross Combined Total Debt 1.57 % Net Combined Total Debt 1.54 % State School Building Aid Repayable as of 6/30/99: $ 0 Source: California Municipal Statistics, Inc. ' 95 CITY OF ROSEMEAD, CALIFORNIA DEMOGRAPHIC STATISTICS Last Ten Fiscal Years Fiscal Year 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 Source: Population (1) 51,156 52,247 52,812 52,922 53,798 53,639 54,487 55,128 55,760 56,664 Households (2) 13,870 14,153 14,169 14,193 14,190 14,195 14,238 14,254 14,278 14,313 Income Per Capita (3) $19,906 20,786 20,967 Unemploy- ment Rate (3) 21,434 21,661 21,562 23,501 24,945 25,719 4.7 % 5.8 8.0 9.6 9.7 7.4 7.9 6.9 6.5 5.6 (1) California State Department of Finance, Office of Demographic Research (2) City of Rosemead, Planning Department (3) California State Department of Finance, Finance and Economic Research Unit 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. Data not available at this time. 96 0 0 A a 60 50 40 30 ' 20 10 0 A 60 50 40 30 20 10 0 f 4. ~ M1C a.. , DEMOGRAPHIC STATISTICS Thousands Thousands 97 1989-90 1990-91 1991-92 1992-93 1993-94 oHouseholds olncomePer Capita oPopulation, Households oincome PerCapita ED Population] CITY OF ROSEMEAD 'PRINCIPAL TAXPAYERS June 30, 1999 Southern California Edison Company Chicago Title Insurance & Trust Countrywide Diamond Square Vikon Center Lucky Plaza Quanjude Duck Irish Communications/Construction ABC Plaza Nice Day Inn Assessed Valuation Percentage of Total City's Assessed Valuation $204,319,473 10.91 % 9,360,000 0.50 8,731,200 0.47 6,981,200 0.37 3,800,000 0.20 -2,700,000 0.14 2,573,429 0.14 2,562,278 0.14 1,759,000 0.09 1,664,639 0.09 $244,451,219 13.05 % 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. . r. 98 A CITY OF ROSEMEAD, CALIFORNIA v SCHEDULE OF INSURANCE IN FORCE June 30, 1999 Policy Expiration Number Date Type of Coverage ' Southern California Joint Powers Insurance Authority 7/1/2000 General Liability ' State Compensation Insurance Fund 228962-90 12/31/2000 Workers Compensation ' Coverage Kelley, Jiggins, Towle & Blue 05743382 7/1/2000 Public Employees ' Blanket Bond Kelley, Jiggins, Towle & Blue 9922993-03 10/19/2000 Boiler and Machinery Kelley, Jiggins, Towle & Blue 2781100 7/1/2000 Notary Public Bond ' Error & Ommissions ' Kelley, Jiggins, Towle & Blue CP8119571C 7/1/2000 Property Insurance ' Source: City Finance Department 99 a CITY OF ROSEMEAD, CALIFORNIA CONSTRUCTION ACTIVITY Last Ten Fiscal Years a Number of Building Permit Number of a Fiscal Residential Valuations (In Thousands) Building Year Dwelling Units Residential Nonresidential Total Permits Issued 1989-90 76 $14,571,516 $15,132,741 $29,704,257 794 1990-91 52 13,764,492 9,308,610 23,073,102 726 1991-92 62 16,145,335 15,522,368 31,667,703 827 324 416 18 511 877 , 1992-93 13 8,012,092 10,499, , , 1993-94 22 10,047,264 7,651,470 17,698,734 858 e 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 t 1996-97 24 9,787,980 4,325,690 14,113,670 611 352 04 522 1997-98 35 7,270,943 14,133,409 21,4 , 1998-99 28 8,973,771 11,726,986. 20,700,757 595 O a 100 a 8 CITY OF ROSEMEAD, CALIFORNIA MISCELLANEOUS STATISTICS June 30,1999 The City of Rosemead is located in Los Angeles County, California approximately nine miles east of the City of Los A 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. 0 Population 56,664 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) 9 a Mixed Commercial/Residential 7 Office & Light Industrial 6 a Public Facilities: 100% Community Centers 2 Swimming Pools 2 Libraries 2 Gymnasiums 1 Ball Diamonds (lighted) 4 Tennis Courts (lighted) 5 0 Education Facilities: Elementary Schools 10 Secondary Schools 3 A High Schools 2 Fire Protection: * Ntunber of firefighters and officers 37 Police Protection: Parking Control (personnel) 3 D Police Protection (sworn personnel) 38 Major Employers and Number of Employees: Southern California Edison Company 3,200 Ball Corporation 410 Crown City Plating 300 8 *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. a 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. 1 101 City of Rosemead a 5 California a Pasadena 210 a 101 San Bernardino Hollywoo 710 605 57 1 w Covina 0 g 60 Riverside Santa Los An s Monica Whittier 110 Fullerton N 1 40 Anaheim 1 Long Beach 5 Orange San Diego - a 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 56,664 102 I 1 S 1 I 0 I S 1 0 8 1 I 1 1 Q I I