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1998 CAFRI 1 0 1 1 1 1 1 D d d 1 1 1 1 1 1 1 1 CITY OF ROSEMEAD California COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 305 1998 I I 1 I 1 I F k 1 1 1 1 1 I 1 0 a O CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1998 TABLE OF CONTENTS INTRODUCTORY SECTION Paae Letter of Transmittal i - xii List of Principal Officials xiii Organizational Chart xiv 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 6-8 Statement of Revenue, Expenses and Changes in Fund Balance - Pension Trust Fund 9 Statement of Cash Flows - Pension Trust Fund 10 Notes to Financial Statements 11 - 27 Combining and Individual Funds and Account Groups Financial Statements (Supplementary Information): GENERAL FUND: Balance Sheet 31 CITY OF ROSE MEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1998 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) Pape Combining and Individual Funds and Account Groups (Supplementary Information): (cont.) GENERAL FUND: (cont.) Statement of Revenue, Expenditures and Changes in Fund Balance 32 Revenue Detail - Budget and Actual 33 Expenditure Detail - Budget and Actual 34 SPECIAL REVENUE FUNDS: Combining Balance Sheet - All Special Revenue Funds 39 - 42 Combining Statement of Revenue, Expenditures and Changes in Fund Balances - All Special Revenue Funds 43 - 46 Statement of Revenue, Expenditures and Changes in Fund Balance - Traffic Safety Fund 47 Statement of Revenue, Expenditures and Changes in Fund Balance - State Gas Tax Fund 48 Statement of Revenue, Expenditures and Changes in Fund Balance - Air Quality Management District 49 Statement of Revenue, Expenditures and Changes in Fund Balance - Local Transportation Fund 50 Statement of Revenue, Expenditures and Changes in Fund Balance - Public Transportationl Fund 51 a CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL1FINANCIAL REPORT Fiscal Year Ended June 30, 1998 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) Paae . Combining and Individual Funds and Account Groups (Supplementary Information): (cont.) SPECIAL REVENUE FUNDS: (cont.) Statement of Revenue, Expenditures and Changes in Fund Balance - Community Development Block Grant Fund 52 Statement of Revenue, Expenditures and Changes in Fund Balance - 1976 Community Parklands Grant Fund 53 Statement of Revenue, Expenditures and Changes in Fund Balance - Street Lighting Fund 54 Statement of Revenue, Expenditures and Changes. in Fund Balance - Narcotics Seizure Fund 55 Statement of Revenue, Expenditures and Changes in Fund Balance - Low-Moderate Income Housing Fund 56 Statement of Revenue, Expenditures and Changes in Fund Balance - Rosemead Housing Development Corporation 57 Statement of Revenue, Expenditures and Changes in Fund Balance - California Wildlife Fund 58 Statement of Revenue, Expenditures and Changes in Fund Balance - Federal Highwy Grants Fund 59 CAPITAL PROJECTS FUND: Balance Sheet - Capital Projects Fund 61 Statement of Revenue, Expenditures and Changes in Fund Balance 62 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1998 f TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) Combining and Individual Funds and Account Groups (Supplementary Information): (cont.) i CAPITAL PROJECTS FUND (cont.): Statement of Revenue, Expenditures and Changes in Fund.Balance - Budget and Actual 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 ah.d 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 Pape 63 65 66 67 69 70 73 74 0 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1998. TABLE OF CONTENTS (cont.) STATISTICAL SECTION General Governmental Expenditures by Function - All.Govern mental Fund Types 77 - 78 General Revenues by Source - All Governmental Fund Types 79- 80 Other Tax Revenues by Source - All Governmental Fund Types 81 - 82 Assessed Valuations of Taxable Property 83 - 84 Special Assessment Levies and Collections - Lighting and Maintenance District 85 Computation of Legal Debt Margin 86 Ratio of Annual Debt Service Expenditure for Total"Bonded Debt to Total General Expenditures 87- 88 Ratio of Annual Debt Service Expenditure for Total Bonded Debt to Assessed Valuation 89 Ratio of Annual Debt Service Expenditure for Total Bonded : Debt Per Capita 90 Property Tax Rates - All Overlapping Governments 91 Schedule of Direct and Overlapping Bonded Debt 92 Demographic Statistics 93 - 94 Principal Taxpayers 95 Schedule of Insurance in Force 96 Construction Activity . 97 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1998 TABLE OF CONTENTS (cont.) STATISTICAL SECTION (cont.) Miscellaneous Statistics Vicinity Map i I P 98 99 1 a t t N T R 0 D U C T 0 MAYOR: ROBERT W. BRUESCH MAYOR PRO TEM: JOE VASQUEZ COUNCILMEMBERS: MARGARETCLARK JAY T. IMPERIAL GARY A. TAYLOR j u C 1 0 r i December 7, 1998 The Honorable Mayor and Members of the Rosemead City Council Councilmembers;. P,,Wmead 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, 1998. 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 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. i 1 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. The City of Rosemead has a population of 55,760 living in an area encompassing 5.5 square miles. The City is located in the central Northwestern section of Los Angeles County, approximately nine miles'east of downtown Los Angeles. The City shares common boundaries with the municipalities of San Gabriel, Temple City, El Monte, South El Monte, Montebello, and Monterey Park. Two major freeways, the San Bernardino (1-10) and the Pomona (60) intersect the City in an east\west direction providing convenient access to all areas of Southern California. In addition, major rail and public bus lines provide convenient regional transportation options. 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 1997-98 Administration: Over the past two years, the City has negotiated with a formal . bargaining unit comprised of twenty-one (21) full-time employees. Over the time, negotiations reached impasse and the employees voted-to de-certify and have the City Manager represent them in negotiations. Accordingly, the potential negative financial impact, as the result of collective bargaining, has been eliminated. On a less positive note, it appears that the State of California's financial picture is relatively gloomy despite reports of a robust and growing economy statewide. In a report issued by the Legislative Analyst's office in November 1998, the .State anticipates a revenue shortfall of at least $600 million during the current fiscal-year... The State will not revise its revenue forecast until April when income tax receipts can be tallied accurately. That uncertainty, coupled with the election of a new Governor who has stated that public education is his highest priority, does not bode well for local governments. Even during the past fiscal year, which was abundant in revenues when compared to past years, the cities received no restitution of funds taken during the lean times of the early 1990s. In fact, the Legislative action in 1998 to reduce vehicle license fees (VLF) will likely provide the impetus for mope financial turmoil for cities. (The Legislature committed to cities a "backfill" for revenues lost as the result of the VLF reduction.) However, given the scenario that the state may not meet its revenue projections, it is probable that cities may feel some financial impact if the "backfill" revenues are not prioritized during the next budgetI negotiation in Sacramento. In all, it appears that cities will be forced to work very diligently to maintain the status quo. Engineering: The City completed several capital improvement projects during the fiscal year. One street resurfacing project was performed, wherein eleven (11) street a. N, ' segments were resurfaced. In addition, street lighting systems were upgraded where deemed necessary. A traffic signal modification project was completed at Mission Drive and Rosemead Boulevard, which provided additional protected left-turn phasing. To mitigate deficiencies in a segment of the City's sewer system, construction of the Del Mar Sewer Collector, between Garvey Avenue and Hellman Avenue, commenced late in- the past fiscal year. In addition to the projects constructed, several multi-year projects are in various phases of design.. The projects include street improvements on Valley Boulevard, street resurfacing and street lighting projects, Lorica. Street reconstruction and widening, and undergrounding of utilities on Walnut Grove. Avenue, San-Gabriel Boulevard and Del Mar Avenue. The majority of these projects will be under construction in. Fiscal Year 1998-99. Planning: During the past year, majority of the construction projects have been commercial or industrial buildings. The recently. completed commercial center at 8350 Garvey is currently leased to Chief Auto Parts and Domino's Pizza.. The new medical office at 7546 Garvey Avenue is valued at. $250,000. Several industrial warehouses completed are valued each at $300,000 approximately. As for major commercial tenant improverne'nts, Southern California Edison is undergoing a two year, $35-40 million interior renovation of their corporate headquarters. Countrywide Corporation purchased the vacant Cal Fed building and has just completed a $900,000 third floor renovation. Currently; a $1.3 million second floor renovation is in plan check. 1 The first phase of a 31 unit single family development at Del Mar and Graves Avenue was completed in Fiscal Year 1997-98. A second phase is presently. in plan check. Parks and Recreation: The City completed various park and recreation improvements. during the fiscal year. Rosemead Community Recreation Center improvements ' included re-upholstered the lobby furniture, refinishing of cabinets.in the pre-school room, and replacement of a pool table. ' Rosemead Park improvements included pre-fabricated restrooms to replace existing facilities and refinishing of cabinets in the pre-school room. Rosemead Pool projects included purchase of a new electrical panels. ' Garvey Park improvements included a purchase of play equipment and installation of wind screens for five (5) tennis courts. It also included tiling and recaulking of Garvey Pool, installation of sand and depth markers, and tiling the.shower rooms. The Garvey Park Clubhouse is being remodeled using a combination of Proposition A and Redevelopment funds. The project includes interior re-modeling of the existing . ' facility and a 980 square foot addition to be used as a Public Safety Annex. The ' iii addition will be used by the Youth Effectiveness System (YES) program, the. Gang ' Alternative Prevention Program (LAPP) and the Rosemead Sheriff's team. Zapopan Center improvements included purchase of a new refrigerator and a bingo , board, revamped the kitchen cabinets, and improved shelves and cabinets in the pre- ' school room. PROSPECTS FOR THE FUTURE ' During the past fiscal year, the City 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 in June, and, thus far, 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 20,000 square foot a recreation center and an additional 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 countywide recreational facilities bond measure (Proposition A) approved by the D 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. Seventy-two (72) senior housing units will be constructed 0 adjacent to the recreation center over the next two years. The Valley Boulevard and Lorica Street Improvement projects will commence early a 1998-99 Fiscal Year. The improvements on Valley Boulevard will include removing the existing planters between Muscatel and Loma Avenues, reconstruction of the sidewalks, installations of new decorative street lights in the downtown business district, planting of parkway trees, construction of a concrete intersection and street resurfacing. This project will be funded by Intermodal Surface Transportation Efficiency Act (ISTEA), Proposition "C", Gas Tax, Community Development Block Grant (CDBG), State-Local Transportation Partnership (SLTPP), and Street Light District funds. Lorica Street improvements includes dedication as a public street, reconstruction and widening of curbs, gutter and sidewalk, installation of street lights and planting of parkway trees. Construction cost will be funded with CDBG funds, Undergrounding of 'utilities on San Gabriel Boulevard between" Garvey -Avenue and , Hellman Avenue will commence in the Fall of 11998: Undergrounding of utilities on Walnut Grove Avenue will begin, pending resolution of right-a-way issues, late in the Iv , V 1 iI I~ Il 1 1 1 F LJ r fiscal year. a3; To mitigate flooding on Kelburn Avenue, the vicinity of Garvey Park and Delta and Earle Avenues, storm drains will be constructed on these 'streets beginning in Spring of 1999. Majority of the developments in the planning stages are from mini-malls. However, the owners of Rosemead Square are seriously discussing plans to. add floor area and several new tenants. These changes would include revising the traffic circulation to make the center more accessible to customers. California Edison is discussing with the City the potential commercial development of various right-of-way sites which front upon Garvey Avenue and Valley Boulevard. Rosemead Community Recreation Center future improvements includes.purchases of office equipment, commercial grade carpet cleaner, repainting and wallpaper throughout the center, replacing room partitions, and, installation of rubberized surface for the pre-school play area. Rosemead. Park improvements include renovation of restrooms and replacement of picnic shelters throughout the park. Rosemead Pool improvements includes installation of a heat exchanger for the pool boilers and new fence post and chain link fence. Garvey Pool improvements includes replacement deck office doors, exterior painting ofpool building, and replacement diving boards. Zapopan Park Improvements includes wrought iron fence and gate," resurfacing basketball court and replacement swing set. Zapopan Center improvements includes purchases of office equipment and portable sound system. 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. I 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. v , 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 jDistrict, 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 (GASB), applicable pronouncements 'of they 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 . t , 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 a the Auditor's opinion is included in'th'e financlal'section of this report. i i h ty w t In addition, the City is required to undergo an annual single audit in conform . 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. D The Comprehensive Annual Report is divided into the following three sections: 1. Introductory Section - which includes this transmittal letter, the City's O Organization Chart, and a list of the principal officials. l purpose 2. Financial Section - which includes the auditor's opinion, genera 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 , vi ' I 1 I I 1 LII u 1 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 1 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. 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. 1 The 1997-98 Fiscal Year revenues for the Governmental Fund types totaled $18,239,024. 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. I The most notable change in revenues is the decrease shown in Intergovernmental revenues, which is the result of Community Development Block Grant.funds and other State grant funds. The most notable increase in revenues is Other Taxes. The increase in revenues is primarily due to an increase in Sales and Use.Taxes. The 1997-98 Fiscal Year expenditures for the Governmental Fund types totaled $16,090,830. Listed on the adjacent page is a recapitulation of these expenditures vii 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 1997-98 over 1996-97 is reflected in Community Services. Majority of the increase is due to Residential Rehabilitation activities. The most notable expenditure decrease' is the Public Safety function, which .primarily is due to restructuring' Law Enforcement contracts. . GENERAL FUND The City of Rosemead remains in a strong financial position as of June 30, 1998 with a surplus of approximately eleven million seven hundred thousand dollars ($11.7 million). There were no residual equity transfers from any funds during the fiscal year. GENERAL FIXED ASSETS As of June 30, 1998, the general fixed.assets of the City totaled thirteen million five hundred fifty-three thousand seventeen dollars ($13,553,017). This amount represents the original cost of the assets, net of additions and deductions from July 1, 1997 to June..30, .1998, and is considerably less'than their present value. The system of accounting presently recommended 15y the Governmental Accounting Standards Board does not allow for the recording of depreciation of general fixed assets as an expense of governmental funds. ' . viii I 1 1 Il 1 1 0 1 C 0 C~ F 1 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 the City. This system has been designed to provide reasonable, but not absolute assurance that: 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. Ail 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. BUDGETARY CONTROL In addition to internal accounting controls, the City also maintains budgetary controls. The objective of these budgetary controls are to insure compliance with the City's budget policy embodied in the annual appropriated budget approved by the city Council. Activities of the general fund, special revenue funds, debt service fund,; and capital projects fund are included in the annual approved budget. Budgetary control is maintained at a functional level by division within departments ' through use of object level account appropriations. Actual expenditures are compared to these appropriations. ' The City Manager is authorized to transfer budgeted amounts between funds within the same department. Any new appropriations must be authorized by City Council. ' All unexpended budgeted funds lapse at the end of the budget year. The exception is the capital projects fund because the budgeted appropriations relate to all future ' appropriations as well as current year appropriations. 1 ix 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 obligation bonded indebtedness which would ecceod 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 we're 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 5451,187 per year. GANN LIMIT n 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 ,G defined under Article X1116 of the California Constitution. We are pleased to inform you that the City is in the enviable 'position of being "well within 35% of the 'calculated appropriation limit.at June 30, 1998. The 0 X 1.7c 1. OAPi1JUB'E nr+cs ~~wcrovwnmNUUn City's 1998-99 estimated revenues and budgeted expenditures indicate that by June 30, 1999 the City will be approximately 35f 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, 1997. 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 nine (9) 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, 1997. 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 t 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. Ogawa Finance Director xii I ELECTED OFFICIALS: City Council: APPOINTED OFFICIALS: CITY OF ROSEMEAD, CALIFORNIA CITY OFFICIALS June 30, 1998 A Robert W. Bruesch Mayor Joe Vasquez .............................Mayor Pro Tern Margaret F. Clark Councilwoman Jay T. Imperial.... • Councilman Gary A. Taylor Councilman II 11 ay 1 Planning Commissioners: Traffic Commissioners: Rudolfo Ruiz Chairman William Alarcon Vice Chairman Robert Breen Commissioner Duc Loi Commissioner Merced 'Bill' Ortiz Commissioner Vacant Chairman Holly Knapp ..............................Vice Chairwoman Carmine Baffo Commissioner Edward Quintanilla Commissioner Victor Ruiz Commissioner .Frank G.Tripepi City Manager t Hubert E. Foutz City Treasurer Robert L. Kress City Attorney Nancy Valderrama City Clerk xiii C 5 0 Q Q Q W Z ~ U W J (n O Q Z C C O Q } N F Z U Q O C O J xiv I 1 1 1 ~ 1 0, ~ 1 1 ! 1 1 III o 1 1 1 •F, {^r v ( 4 xv 0 l b ~ ~ 2 4 y a C ~ a y e o d o~ o~ U ~ y, N ` y C ~ U ti b `y U ~ b U , 00 N .ti w W 0 L u V A v e v .c w Ci U V U 41 1 U W d C U q 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, 1997 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. ppGE OFFi~ DMIFD SfA16 y w41 D~ ~NH V fA11°d President a~ rARPD0.ltOA S rxrt°co Executive Director xvi 1 1 1 1 t F N A N C A L I ' ING. McGLADREY&PULLENLLP RSM Certified Public Accountants and Consultants international ' INDEPENDENT AUDITOR'S REPORT ' To the Honorable Mayor and ' Members of the City Council City of Rosemead Rosemead, California We have audited the accompanying general purpose financial statements of the City of Rosemead, California, as of and for the year ended June 30, 1998. 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. ;a We conducted our audit in accordance with generally accepted auditing standards and the standards B 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 of Rosemead, California, as of June 30, 1998, 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 September 18, 1998 on our consideration of the City of Rosemead'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 combining and individual fund statements and schedules listed in the table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Rosemead, California. 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. /Z do ' Pasadena, California September 18, 1998 I Suite 300 130 South Lake Avenue Pasadena, California 91101-2651 (626) 795-7950 FAX(626)795-9820 1 Worldwide Services Through RSM International THIS PAGE INTENTIONALLY LEFT BLANK 1 t e A r CITY OF ROSEMEAD, CALIFORNIA GENERAL PURPOSE FINANCIAL STATEMENTS YEAR ENDED JUNE 309 1998 CITY OF ROSEMEAD, CALIFORNIA , COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1998 I I Governmental Fund Types ' Special Debt Capital ' Assets and Other Debits General Revenue Service Projects Assets " Cash and investments S 11,454,939 $ 7,059,810 S 2.322.681 S 18,394,832 Receivables 1,234,137 698,441 30,593 287,784 Due from other funds 205,393 - - - Property and equipment - - - - Prepaid items - - - - Other Debits Amount available in debt service fund - Amount to be provided for retirement of general long-term debt - - Total assets and other debits S 12,894,469 S 7,758.251 S 2,353,274 S 18,682,616 Liabilities, Municipal Equity and Other Credits Liabilities - - - Accounts payable and accrued liabilities S 1,0675246 S 344,841 S - S 309,914 Due to other funds - 198,399 - 6,994 Deferred revenue 126,729 246,682 - - Refundable deposits - - - Deferred compensation - - - - Tax allocation notes and bonds - - - - Accrued vacation pay and compensatory time 6,999 - - - Accrued litigation settlement - - - Q Total liabilities 1,200,974 789,922 316,908 Municipal Equity and Other Credits 8 Investment in general fixed assets - - - - Fund balance: Reserved: Long-term receivable 606,932 - Debt service - - 2,353,274 Low-moderate income housing - 4,565,862 - Employees retirement - - - Unreserved: Designated for: Capital projects - - - 18,365,708 Building and equipment replacement 1,720,000 - - - ' Litigation settlements 1,000,000 - - - Selfinsurance Contingencies 300,000 3,000,000 - - - - - - , Undesignated 5,066,563 2,402,467 - - Total municipal equity and other credits 112693,495 6,968,329 2353,274 18,365,708 , Total liabilities, municipal equity and other credits S 12,894,469 S 7,758,251 S 2,353,274 S 18,682,616 t t N Fi i l S S ' emen s. ee otes to nanc a ta 2 ' h Q I Fiduciary Fund Types Account Groups General Trust and General Long-term Total (Memorandum Only) Agency Fixed Assets Debt 1998 1997 $ 305,449 $ _ $ - $ 39,537,711 $ 38,184,774 2,250,955 2,201,748 - 205,393 31,370 13,553,017 - 13,553,017 13,256,131 920 2,353,274 2,353,274 2,355,613 - - 33,633,441 33,633,441 33,923,171 $ 305,449 $ 13,553,017 $ 35,986,715 $ 91,533,791 $ 89,953,727 $ $ $ $ 1,722,001 $ 2,074,853 205,393 31,370 373,411 246,682 102,008 = 102,008 95,568 517,848 - 35,610,000 35,610,000 35,905,000 - - 339,794 346,793 ;.d • . 304,714 - 36,921 36,921 76,773 102,008 35,986,715 38,396,527 39,252,808 13 553 017 - 13 553 017 13 256 131 , , , , , , - - 606,932 717,796 2,353,274 2,355,613 - - - 4,565,862 4,251,917 203,441 - - 203,441 212,176 _ - - 18,365,708 19,039,364 ' 1,720,000 1,720,000 - - - 1,000,000 1.000,000 ' - - - - - 300,000 3,000,000 300,000 3,000,000 _ 7,469,030 4,847,922 203,441 13,553,017 - 53,137,264 50,700,919 $ 305,449 $ 13,553,017 $ 35,986,715 $ 91,533,791 $ 89,953,727 3 CITY OF ROSEMEAD, CALIFORNIA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year Ended June 30, 1998 General Governmental Fund Types Special Debt Revenue Service Capital Projects Revenue Property taxes and special assessments S - S 418,502 S S 2,770,865 Othertaxes 4,134,533 - - Licenses and permits 739,162 - Intergovernmental 3,479,407 3,278,819 Charges for services 489,792 9,700 Fines, forfeitures and penalties 279,104 70,218 Use of money and property 643,925 498,701 141,574 1,213,094 Other 26,613 160 - 44,855 9,792,536 4,276,100 141,574 4,028,814 Expenditures Current: General government 1,631,462 121,052 47,566 Public safety 4.309,219 346,724 _ Public works 189,453 1,747,433 1,350,424 Public health 45,381 - Public recreation 1,906,179 - Community service 1,011,882 1,048,819 Capital outlay 56,182 _ Debt service: Principal 295,000 Interest 1,984,054 9,149,758 3,264,028 2,279,054 1,397,990 Revenue over(under)expenditures 642,778 1,012,072 (2,137,480) 2,630,824 Other Financing Sources (Uses) Operating transfers: From other funds 1,097,300 564,573 2,135,141 (To) other funds (45,328) (447,206) - (3,304,480) 1.051.972' 117367 2.135.141 (9.104 4RO) Revenue and other financing sources over (under) expenditures and other financing (uses) 1,694,750 1,129,439 (2,339) (673,656) Fund Balance, beginning 9,998,745 5,838.890 2,355,613 19,039,364 Fund Balance, ending S 11,693,495 S 6,968,329 S 2,353,274 S 18,365,708 See Notes to Financial Statements. 4 r. I 1 Total (Memorandum Only) 1998 1997 S 3,189,367 S 3,228,384 4,134,533 3,952,511 739,162 760,037 6,758,226 7,532,960 499,492 584,033 e 349,322 363,938 2,497,294 2,415,335 71,628, 63,262 18,239,024 18,900,460 - 1,800,080 2,053,607 4,655,943 4,922,197 3,287,310 45,381 3,349,572 45,966 1,906,179 2,144,066 2,060,701 1,976,965 56,182 47,683 295,000 280,000 1,984,054 1,991,333 t 16,090,830 16,811,389 - 2,148,194 2,089,071 3,797,014 3,676,741 ' (3,797,014) (3,676,741) 2,148,194 2,089,071 ' 37,232,612 35,143,541 S 39,380,806 S 37,232,612 iv 5 .-r CITY OF ROSEMEAD, CALIFORNIA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE, DEBT SERVICE AND CAPITAL PROJECT FUNDS Year Ended June 30, 1998 General Special Revenue Over (Under) Budget Actual Budget Budget Actual Revenue Property taxes and special assessments $ - $ - S - $ 360,000 $ 418.502 Other taxes 3,854,500 4,134,533 280,033 - - Licenses and permits 743,900 739,162 (4,738) - - Intergovernmental 3,142,870 3,479,407 336,537 6,172,824 3,278,819 Charges for services 526,200 489,792 (36,408) 8,100 9,700 Fines, forfeitures and penalties 281,500 279,104 (2,396) 60,000 70,218 Use of money and property 418,200 643,925 225,725 309,350 498,701 Other 48,600 26.613 (21,987) 5,150 160 9,015,770 9,792,536 776,766 6,915,424 4,276,100 Expenditures - Current: General government 1,788,790 1,631,462 (157,328) 1,238,750 121.052 Public safety 4,524,770 4,309,219, (215,551) 559,350 346.724 Public works 112,640 189,453 76,813 5,206,620 1,747,433 Public health 59,000 45.381 (13,619) - - Public recreation 2,101,650 1,906,179 (195,471) - - 0 Community service 17017,980 1,011,882 (6,098) 1,766,424 1,048,819 Appropriations reserves Capital outlay 100,000 59,550 - 56,182 (100,000) (3,368) - - a Debt service: Principal - - - - - Interest - - - - - .a 9,764,380 9,149,758 (614,622) 8,771,144 3,264,028 Revenue over (under) expenditures (748,610) 642,778 1,391,388 (1,855,720) 1,012,072 a Other Financing Sources (Uses) Operating transfers: From other funds 1,097,300 1,097,300 - 1,492,550 564,573 (To) other funds (242,550) (45,328) 197,222 (1,400,000) (447,206) 854,750 1,051,972 197,222 92,550 117,367 ' Revenue and other financing sources over (under) expendi- tures and other financing (uses) Fund Balance, beginning Fund Balance, ending See Notes to Financial Statements. S 106,140 1,694,750 S 1,588,610 S (1,763,170) 9,998,745 S 11,693,495 6 1,129,439 5,838,890 ' S 6,968,329 , 1 i' Special Revenue Debt Service Capital Projects Over (Under) Over (Under) Over (Under) Budget Budget Actual Budget Budget Actual Budget S 58,502 S S `e S 2,700,000 S 2,770,865 S 70,865 (2,894,005) 1,600 10,218 - - - 189,351 130,000 141,574 11;574 345,000 1,213,094 868,094 (4,990) - - - - 44,855 44,855 O (2,639,324) 130,000 141,574 11,574 3,045,000 4,028,814 983,814 (1,117,698) 44,900 47,566 2,666 (212,626) (3,459,187). 6,682,250 1,350,424 (5,331,826) (717,605) 295,000 295,000 1,984,053 1,984,054 1 - - (5,507,116) 2,279,053 2,279,054 1 6,727,150 1,397,990 (5,329,160) 2,867,792 (2,149,053) (2,137,480) 11,573 (3,682,150) 2,630,824 6,312,974. (927,977) 2,279,050 2,135,141 (143,909) IS 2,892,609. S 129,997 (2,339) S (132,336) S (6,908,500) (673,656) S 6,234,844 ' 2,355,613 19,039,364 S 2,353,274 S 18,365,708 7 CITY OF ROSEMEAD, CALIFORNIA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE, DEBT SERVICE AND CAPITAL , PROJECT FUNDS, CONTINUED June 30, 1998 Total (Memorandum Only) Over (Under) Budget Actual Budget Revenue Property taxes and special assessments S 1060,000 S 3,189,367 S 129,367 Othertaxes 3,854,500 4,134.533 280,033 Licenses and permits 743,900 739,162 (4,738) Intergovernmental 9,315,694 6.758,226 (2,557,468) Charges for services 534.300 499,492 (34,808) Fines, forfeitures and penalties 341,500 349,322 7,822 Use of money and property 1,202,550 2,497,294 1.294,744 Other 53,750 71,628 17,878 19,106,194 18,239,024 (867,170) Expenditures Current: General government 3,072,440 1,800,080 (1,272,360) Public safety 5,084,120 4,655,943 (428,177) Public works 12,001,510 3.287,310 (8,714,200) Public health 59,000 45,381 (13,619) Public recreation 2,101,650 1,906,179 (195,471) Community service 2,784,404 2,060,701 (723,703) Appropriations reserve '100,000 - (100,000) Capital outlay 59,550 56,182 (3,368) Debt service: Principal 295,000 295,000 Interest 1,984,053 1,984,054 1 27,541,727 16,0907830 (11,450,897) Revenue over (under) expenditures (8.435,533) 2,148,194 10,583,727 Other Financing Sources (Uses) Operating transfers: From other funds 4,868,900 3,797,014 (1,071,886) (To) other funds (4,868,900) (3,797,014) 1,071,886 Revenue and other financing sources over (under) expendi- tures and other financing (uses) S (8,435,533) 2,148,194 S 10,583,727 Fund Balance, beginning Residual equity transfer 37,232,612 Fund Balance, ending S 39,380,806 See Notes to Financial Statements. 8 ' CITY OF ROSEMEAD, CALIFORNIA ' STATEMENT OF. REVENUE, EXPENSES AND CHANGES IN PLAN ASSETS - PENSION TRUST FUND Year Ended June 30, 1998' Operating revenue, interest and other investment income $ 15,643 Operating expenses: Administrative fees 3,659 Pension benefits 20,719 24,378 Net (loss) (8,735) Fund balance, beginning 212,176 Fund balance, ending S 203,441 See Notes to Financial Statements. 1 1 9 CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF CASH FLOWS - PENSION TRUST FUND Year Ended June 30, 1998 ash Flows from Operating Activities Net (loss) $ (8,735) Adjustments to reconcile net (loss) to net cash (used in) operating activities: Administrative expenses payable 3,659 Net cash (used in) operating activities (5.076) Cash Flows Provided by Investing Activities Proceeds from the sale and maturity of annuity contracts 20,719 Unrealized interest and investment income (15,643) Net cash provided by investing activities 5,076 Cash, beginning Cash, ending $ See Notes to Financial Statements. 10 1 I I 1 1 1 1 lJ 0 1 1 1 1 I CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, mid. Significant Accounting Policies Reporting Entity As required by generally accepted accounting principles, these financial statements present the 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 tite government's operations and are controlled by common governing boards; therefore, data from these 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 Agency. The component units have the same fiscal year as the City. The component unit financial' statements can be obtained from the City Clerk. Nature of operations City of Rosemead The City-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 Los Angeles County departments under contract. Some of the contracts now in effect are for police, street maintenance and animal control. Rosemead Redevelopment Agency The Agency finances street, park and utility improvements. It also acquires and constructs major capital facilities, all within the Rosemead Project Area No. 1. Rosemead Housing Development Corporation The Corporation accounts for the construction, financing and operations of low and moderate income housing. It is a California nonprofit benefit corporation organized under Section 501(c)(3) of the Internal Revenue Code. 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 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 govemment has the following fund types and account groups: Governmental Funds are used to account for the general ggvcrnment 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 govemment 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 intergovern mental 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. the loss is determinable. Estimated losses on insurance claims are charged to expense in the period 1 1 1 F I I D D U a D I I 1 I 1 12 C I 1 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 Agency funds are custodial in nature and do not present results of operations or have a measurement focus. 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. The- Pension Trust Fund applies applicable FASB ' pronouncements issued prior to November 1989 to its financial accounting and reporting. Governmental Fund Types 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: 1 The Traffic Safety Fund accounts for the receipt of vehicle code' fines which are expended for traffic safety enforcement. ' The State Gas Tax Fund accounts for funds collected froifl 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 use& in improving transportation systems and to reduce reliance on private vehicles. ' The Local Transportation Fund accounts for state grants used to finance the constructiomof 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. ' 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 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 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 lAgency. 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 areas fgllows: 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 Agencv 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. 14 C~ 1 1 I a 1 CITY OF ROSEMEAD, CALIFORNIA 1 1 1 1 1 1 1 1 NOTES TO FINANCIAL STATEMENTS : . , Note 1. Reporting Entity, Nature of Operations, Description, of Funds and Account Groups, and Significant Accounting Policies, Continuer) The following is a summary of significant accounting policies: Changes in Accounting Principle As of July 1, 1997, the City of Rosemead adopted Government Accounting Standards Board (GASB) Statement No. 31, Accounting and Financial Reporting 'for Certain Investments and for External Investment Pools. GASB Statement No. 31 requires that investments be reported at their fair value and that all changes in fair value be reflected in income for the period in which they occur. The adoption of this Statement had no material effect on the financial'statements for fiscal year ended June 30, 19981 As of July 1, 1997, the City of Rosemead adopted GASB Statement 27, Accounting for Pensions by State and Local Governmental Employers. This Statement establishes standards for measurement, recognition and display of pension expense and related liabilities, assets and disclosures in the financial statements of state and local government employers. The adoption of this Statement had no material effect on the financial statements for fiscal year ended June 30, 1998. The City of Rosemead has also adopted GASB No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. This Statement establishes accounting and financial reporting standards for Internal Revenue Code Section-457 deferred competsation plans-of state and local governmental employers. The effect of this Statement was to eliminate the asset and corresponding liability from the City's books for the year ended June 30, 1998. Also, because the Board was unaware of any additional risks to plan sponsors, under'ike' revised Internal Revenue Code provision, - any related financial statement disclosures for the deferred compensation plan have been omitted for the ' fiscal year ended June 30, 1998. Management has the ultimate responsibility for the appropriateness of the accounting policies and procedures used by the City. Cash investments and other investments ' As of July 1, 1997, the City of Rosemead adopted GASB No. 31, Accounting and Financial Reporting: for Certain Investments and for External Investment' Pools. GASB No. 31 requires that investments be reported at their fair value and that all changes in fair value be reflected in income for the'period in " ' which they occur. The City records all investments at fair value, with the exception of Government Investment Contracts and Commercial Paper and Bonds which are carried at cost. The 'City has identified these investments as either being nonnegotiable, having a maturity of one year or less, having a ' redemption value that was fixed and not linked to some sort of index or other market-determined factor, and the investments are. with reputable organizations with good credit standing so'that the value of the investments was not significantly impaired as of year end. ' 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. Investment earnings are allocated based on the source of funds. 15 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 Receivables ' Propem 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. a 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 a 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 govemmental operations are recorded as expenditures in the fund making the. , expenditure and capitalized in the general fixed assets account group.. 11 if t All general fixed assets which were purchased or constructed are stated at cost. Assets acquired by g or bequest are recorded at their fair market value at the date of transfer. No depreciation is recorded on general fixed assets. Fund balances The reserved portion of the fund balances represents'that amount which has been legally identified for O 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. Vacation pay and compensatory time I 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 on a vesting schedule. In addition, considered to be vested and are paid to the employee bas 1 e employees can accrue compensatory time. The vested portion of vacation and sick leave by employees at June 30, 1998 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. 16 E I ' ' 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 "Memorandum Only" total columns Included on the combined financial.statements are total columns captioned "Memorandum Only" to . 1 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 1997 totals presented in the "Memorandum Only" columns are included to provide a ' summarized comparison with comparable 1998 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. Note 1., 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 actualramounts are presented in accordance with generally accepted' accounting principles: Reported budget amounts represent the original adopted budget as amended. ' 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 D budgetary control is the department level. The governing council made several supplemental. budgetary appropriations throughout the year, none considered to be material. B In all funds, unexpended budgeted amounts lapse at the end of the budget year. 1 17 CITY OF ROSEMEAD, CALIFORNIA ' NOTES TO FINANCIAL STATEMENTS , Note 3. Cash and Investments ' The components of cash and investments at June 30, 1998 are as follows: Cash in bank $ 2,782.353 ' Time certificates of deposit 2,987,350 ' Cash total 5,769,703 Other investments 4,768,750 Cash with fiscal agent 2,322,683 Guaranteed investment contracts 61134,383 Investment in State Treasurer's Investment Pool 20,338,751 ' Investment in annuity contracts 203,441 Investments total 33,768,008 Cash and investments total $ 39,537,711 Cash At year end, the carrying amount of the City's and Agency's deposits (i.e., cash in bank and time certificates of deposit) was $5,769,703 and the bank balance was $5,761,994. Of-the $5,761,994 bank " balance; $729,801 'was covered by federal depository insurance and $5,032,193 was collateralized by depository collateral pools as described in the following paragraph. u , 0 In accordance with state statutes, the City and Agency maintains deposits at those depository institutions insured by the Federal Depository . Insurance Corporation. The California Government Code requires California banks and savings and loan associatioits'to collateralize governmental entities' deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of a city's deposits. California law also allows financial institutions to secure City deposits by o pledging first trust deed. mortgage notes having 'a collateral value of 150% of an the entity's total deposits. The City and the Agency maintain cash and investment pools that are available for use by all funds. Each fund's or fund type's share of the pool balance is reported id-the financial statements as cash and cash investments. Earnings from the pooled investments are allocated monthly to each participating fund based on a formula that takes into consideration each fund's average investment in the pool. Investments ' State statutes authorize the City to invest any available funds in securities issued or guaranteed by the United States Treasury or agencies of the 'Le$ed Stat_s,1 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 advistory board has been established to monitor the LAIF's compliance with ' regulations and investment alternatives established by the state. 18 ' ' CITY OF ROSEMEAD, CALIFORNIA ' NOTES TO FINANCIAL STATEMENTS I Note i. Cask and Investments, Continued ' Investments include cash with a fiscal agent for $2,322,683, which is invested in a guaranteed investment contract accruing interest monthly at an interest rate of 5.8%, maturing October I, 2013. ' Investments in annuity contracts included $203,441 invested in the Pension Trust Fund. This investment was carried at market value. Investments also included $6,134,383 of amounts invested in various guaranteed investment contracts which accrue interest quarterly at interest rates ranging from 7.18% to ' 7.41%, maturing through October I, 1999. The management of the state of California Pooled Money Investment Account (referred to as LAIF) has , indicated to the Ciry that as of June 30, 1998 the amortized cost value of the pool was $31,920,000.841 ' and the estimated fair value of the pool was $31,932,227,970. The City's share of the,fair value. is . $20,338,751. Included in the state of California Pool is 95.63% invested in certain derivatives or similar products and 4.37% invested in nonderivative financial products. The City's share of LAIF is not subject to custodial credit risk categorization. Other investments are. categorized in the following schedule to give an indication of the level of risk assumed by the entity at year end. Category Carving Fair Investment Type I 2 3 Amount Value U.S. government and government agency r., B securities' $ $ 1-3;990,498 S 3,940,498 $ 3,940,498 State and municipal bonds 499,595' 499,595 499,595 Commercial paper and bonds 328,657 328,657 328.657 $ $ $ 4,768,7504 4,768,750 4,768,750 a Cash with fiscal agent 2,322.683 2,3225683 Guaranteed investment contracts 6,134,383 6.297,612 ' Investment in State Treasurer's Investment Pool 20,338,751 20,33 8,751 Investment in annuity contracts 203,441. 203,441 ' Total other investments S 33,768,008 $ 33,931,237 ' 19 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STA Note 3.- Cash and Investments, Continued The three preceding risk description categories are defined as follows: Category Description 1' Investments that are insured, registered or for which the securities are held by the City or t its agent in the City's name. 2 Uninsured and unregistered investments for which the securities are held by counter- party's Trust Department (if a bank) br agent in the City's name. 3 Uninsured and unregistered investments for which the securities are held by counter- party's Trust Department (if a bank) or agent, but 'not in the City's name. :4 Note 4. Receivables Receivables as of June 30, 1998 consist of the following 3 , , I Special Capital - , General Revenue Debt Service Projects Total Property tax increment S - S - . $ - S 43,747- $ 43,747 Accrued interest 197,571 71,703 30,593 244,037 483,904 Due from local utility i companies (A) 606,932 - - 606,932 Due from other governmental agencies 224,132 626,738 850,870 Transient occupancy tax 206,595 206,595 Other 58,907 58.907 S 1,234,137 S 698,441 S 30,593 S 287,784 S 2.250,955 IA' During the 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. 1. . During the 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 year ended June 30, 1990 and $29,372 during the year ended June230, 1992. The Agency then contributed the receivables to the City. The City is to cgllect'the receivables from the utility company in 15 noninterest-bearing annual installments of $35,987 and S1,958, with the final installments due June 30, 2005 and September 30, 2006. 20 I CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS I Note 4. Receivables, Continued During the year ended June 30, 1994, the Agency approved an additional reimbursement ' agreement with a local utility company, advancing the utility company funds req uired 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. Note 5. Interfund Receivables and Payables ' Interfund receivables and payables as of June 30, 1998 are as follows: Interfund t Funds Receivables Payables General Fund $ 205,393 $ Special Revenue Funds: Traffic Safety - 8,548 California Wildlife Grant 1,400 Community Development Block Grant 188,451 198,399 Capital Projects Fund 6;994•, $ 205,393 $ 205,393 Note 6. Property and'Equipment Changes in property and equipment during the year ended June 30, 1998 were as follows : Balance, Balance, June 30, 1997 Acquisitions Disposals June 30, 1999 Land $ 4,730,565 $ - $ S 4,730,565 Buildings and, improvements 5,641,692 143,622. 5,785,314 ' Vehicles 252,264 29,026 22,4.17 Furniture and office equipment 1,198,734 115,562 258,873 1,314,296 ; Special equipment and machinery 566,205 29,281 -595,486 Other improvements 866,671 _ 1,812 868,483 ' , . $ 13,256,131 $ 319,303 $ 22,417 S 13,553,017 1 21 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STA Note 7. Employee Pension Plans Defined 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 (CaIPERS). The value of the annuity contract for retired employees was $203,441 as of June 30, 1998. Plan description The Cih%s defined benefit pension plan, PERS, provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The PERS is part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), an agent multiple-employer plan administered by CalPEKS, which acts as a common investment and administrative agent for participating public employers within the state of California. A menu of benefit provisions as well as other requirements are established by state statutes within the Public Empoyees' Retirement Law. The City of Rosemead selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. CalPERS "issues a separate comprehensive annual financial report. Copies of:CalPERS; annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814 Funding policy Active plan members in the PERS are required to contribute 7% of their annual covered salary. The City of Rosemead is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rate for fiscal 1995-1996 was 55o to 6%. The contribution requirements of plan members are established by state statute and the employer contribution rate is established and may be amended by CalPERS. Annual pension cost For fiscal year 1995-1996, the City of Rosemead's annual pension cost was $94,186 and the City of Rosemead actually contributed $94,186. The required contribution for fiscal year 1995-1996 was determined as part of the June 30, 1995 actuarial Valuation 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) 4.5% cost-of-living adjustment. Both (a) and (b) include an inflation component of 4.5%. The actuarial value of PERS 's assets was determined using a technique that smoothes the effect of short-term volatility in the market value of investments over a two- to five-year. period depending on the `size of investment gains andior losses. PERS's unfunded actuarial accrued liability (or excess -assets) is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization 'period at June 30, 1996 was 27 years. 22 I NOTES TO FINANCIAL STA' CITY OF ROSEMEAD, CALIFORNIA y i;yw. I 1 1 1 1 I I I' 1 1 1 I Note 7. Employee Pension Plans, Continued The City had no transition pension liability resulting from the adoption of GASB Opinion No. 27, ,4ccounling for Pension of State and Local Governmental Emplovers, on July 1, 1997. Annual Percentage % Pension Cost of APC Net Pension Fiscal Year Ended June 30, (APC) Contributed Obligation 1994 $ 97,850 100 % $ 1995 106,135 100 1996 94,186 100 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 bate Liability Assets Liability Ratio Payroll Payroll 6/30/94 $ 2,227,244 S 1,580,229 S 647,015 70.9 % $ 1,298,022 49.846 % 6/30/95 2,449,214 1,882,392 566,822 76.9 1,311,860 43.208 6/30/96 2,765,067 2,302,007. , 463,060 , 83.3 1,218,455 38.004 Note 8. Deferred Compensation Plan The City has adopted a deferred compensation plan in accordance with Section 457 of the Internal Revenue Code. Generally, all eligible employees may defer receipt of a portion of their salary until future years. The employees are not liable for income taxes on amounts deferred until the.funds are withdrawn. At June 30, 1998 and 1997, assets of the plan totaled approximately $652,000 and $518,000 respectively. , In prior years, all of the plan assets until paid or made available to the employee on their beneficiary, were the sole property of the Authority, subject to the claims of the Authority's general creditors. - The. plan was amended during the year ended June 30, 1998; in accordance with recent changes in the Internal Revenue Code, so that all assets are now held for exclusive benefit of the participants and their beneficiaries. Therefore, the plan assets and corresponding liability to the participants are no longer recognized in the accompanying financial statements. 23 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STA Note 9. Self-insarance 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 Citvl 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 Southern California Joint Poitiers Insurance Authority (the Authority) It- - 1 11 (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. 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 $2,000 or less, will be shared pm ratably among the pool based upon each member's share of cost under $30,000 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. i Note 10. 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 rede~,elopment area known as Project Area No. 1. 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 1, 2001 and before October 1, 2033, and Series 199313 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 Fund in October 1991. The reallocation had the effect of satisfying the $423,574 borrowed from the ERAF in fiscal year ended June 30, 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 24 w•w~y Vr"i`• mans-6mu..:v:.o. I 1 1 1 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 10. Long-term Debt, Continued Compensated absences That portion of the liability for the vested compensated absences totaling $339,794,which is not expected to be paid from available resources is reported in the General Long-term Debt Account Group. Other long-term debt The City has included amounts in the long-term debt account groups for a litigation settlement. The following is a summary of the general long-term debt transactions for the year ended June 30, 1998: ' Accrued Tax Allocation Tax Allocation Vacation and Bonds Series Bonds. Series Litigation Compensaton, ' 1993A 19936 Settlement Time Total 1997 June 30 Balance S 34,275,000 S 1,630,000 S 76,773 S 297,011 $ 36,278.784 . , , Payments of principal (295,000) (39,852) (334,852) Additions - - - 42,783 42.783 t Balance, June 30, 1998 . S 341275,000 $ 1,335,000 S 36,921 S 339,794 S 35,986,715 The annual requirements, principal and int erest to amortize the outstandi ng debt as of J une 30, 1998 are e as follows: t Accrued Series 1993 Vacation and 8 During the Year A and B Litigation Compensa- Ending June 30, - Bonds Settlement tory Time Interest Total 1999 $ 310,000 S 36,921 $ 339,794 S 1,962,034 S 2,648,749 2000 330,000 - 1,942,258 2,272,258 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 Years thereafter 33,830,000 - - 37,955,315 71,785,315 S 35,610,000 S 36,921 S 339,794 $ 47,576.246 S 83,562,961 ' 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, 1998, $7,732,335 of outstanding bonds are considered defeased. 1 25 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATE Note]]. Budget Overewpenditures rind Deficit Expenditures exceeded appropriations for the year ended June 30, 1998 in the following.departments: General Fund Travel and meetings City administration Animal regulation Parking control Narcotics forfeiture Street and highway construction Traffic signs and striping maintenance Building regulation Community improvements Traffic Safety Fund Public safety Air Quality Management District Fund Public works Note 12. Commitments and Contingent Liabilities Low-Moderate Income Housing Set-Aside Fund -Amount of Over- Appropriations Expenditures expenditures $ 23,000 $ 28,178 $ 5,178 492,100 514,411 22,311 50,000 .57,138 7,138 125,200 146,358 21,158 - 42 42 76,000 146,310. 70,310 - 9,989 9,989 444.800 488,156 43,356 93,120 106,016 12,896 60,000 70.218 10,218 24,500 51,289 26,789 Under state law, the Agency is required to set aside a portion of its property tax increment revenue for low- and moderate-income housing. The Agency has made findings that, for the years ended June 30, 1986 through 1991, it was allowed to defer funding of the set-aside. The set-aside amounts incurred during the fiscal years ended June 30, 1994, 1995, 19,96 and 1997 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, 1998, 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 amount. Litigation The City is a member of the "LA County Liability Trust Fund" which was set up to pay for litigation involving the Los Angeles County Sheriffs' Department within any of the 41 cities that are serviced by the LA County Sheriffs. The Trust Fund was and is being funded by the 41 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 41 cities at the time the Trust Fund originated, the cities will be jointly liable for any and all claims filed against an Los Angeles Sheriffs' Deputy, no matter which of the 41 cities that claim arose from. 26 ' CITY OF ROSEMEAD, CALIFORNIA ' NOTES TO FINANCIAL STATEMENTS ' Nate 11. Commitments and Contingent Liabilities, Continued ' In 1998 the County of Los Angeles lost a litigation matter which resulted in a $25,000,0000 judgment against the Los Angeles County Sheriffs' Department which Los Angeles County has since paid. Now Los Angeles County is looking to collect this money back from the 41 cities which were members of the trust fund. ' At this time it is too early for the City to predict the financial impact of its share of the settlement which . must be paid to the County of Los Angeles, nor do they know what length of time the settlement ' payments, if any, will be spread over. As a result, the City has not recorded any liability relating to this matter in its June 30, 1998 financial statements. ' Advance agreement In February 1995, 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 September 18, 1998, the agreement continues to remain on hold. Note 13. Year 2000 Issue The Year 2000 issue is the result of shortcomings in many electronic data processing systems and other electronic equipment that may adversely affect the govemment's operations as early as fiscal year ending June 30, 1999. The City of Rosemead has completed an inventory of its in-house computer systems and other electronic equipment (i.e., irrigation systems, traffic signals, etc.) within City limits that may be affected by the Year 2000 issue and that are necessary to conducting the City's operations. Currently, the City, is in the remediation stage in that bid specifications have been drawn up to purchase, from outside vendors, hardware and software believed to be Year 2000 compliant for the financial reporting systems. the City has budgeted $50,000 to obtain and implement a complete Year 2000 financial reporting system during the fiscal year ending June 30, 1999. Testing and validation of the systems will need to be completed after the hardware and software are installed. a I 1 27 LJ 1 1 I TIES PAGE INTENTIONALLY LEFT BLANK I 0 Ll F I FiI II I 8 I D 28 1 1 1 1 1 1 1 1 1 CITY OF ROSEMEAD, CALIFORNIA COMBINING AND INDIVIDUAL FUNDS AND ACCOUNT GROUPS FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1998' I 1 1 1 1 1 THIS PAGE INTENTIONALLY LEFT BLANK 1 1 1 1 1 1 1 1 0 1] 1 1 29 1 1 1 i 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. 30 CITY OF ROSEMEAD, CALIFORNIA GENERALFUND BALANCESHEET June 30, 1998 1998 1997 ASSETS Cash and investments $11,454,939 $10,207,644 Receivables 1,234,137 1,220,124 Due from other funds 205,393 29,736 Prepaid expenses 920 Total Assets $12,894,469 $11,458,424 LIABILITIES AND MUNICIPAL EQUITY Liabilities Accounts payable and accrued liabilities $1,067,246 $1,451,976 Due to other governmental agencies Deferred revenue 126,729 Accrued vacation pay and compensatory time 6,999 7,703 Total Liabilities $1,200,974 $1,459,679 Municipal Equity and Other Credits: Fund Balance: Reserved: Long-term receivable $606,932 $717,796 Unreserved: Designated: Building and equipment replacement 1,720,000 1,720,000 Litigation settlements 1,000,000 1,000,000 Self-insurance 300,000 300,000 Contingencies 3,000,000 3,000,000 Undesignated 5,066,563 3,260,949 Total Fund Balance $11,693,495 $9,998,745 Municipal Equity and Other Credits Total Liabilities $12,894,469 $11,458,424 , 31 1 t CITY OF ROSEMEAD, CALIFORNIA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1998 1998 1997 REVENUES: Other Taxes $4,134,533 $3,952,511 Licenses and permits 739,162 760,037 Intergovernmental 3,479,407 3,860,776 Charges for services 489,792 576,033 Fines, forfeitures and penalties 279,104 276,281 Use of money and property 643,925 568,410 Other 26,613 30,921 Total Revenue $9,792,536 $10,024,969 EXPENDITURES: Current: General government $1,631,462 $1,812,609 Public safety 4,309,219 4,561,894 Public works - 189,453. 47,007 Public health 45,381 45,966 Public recreation 1,906,179 2,144,066 Community service 1,011,882 1,014,080 Capital outlay 56,182 47,683. Total Expenditures $9,149,758 $9,673,305 Revenue over(under)expenditures $642,778 $351,664 OTHER FINANCING SOURCES (USES): Operating transfers: From other funds $1,097,300 $1,097,300 (To) other funds (45,328) (53,247) Total Other Financing Sources (Uses) $1,051,972 $1,044,053 Revenues and Other Financing Sources over (under) expenditures $1,694,750 $1,395,717 FUND BALANCE, BEGINNING 9,998,745 8,603,028 FUND BALANCE, ENDING $11,693,495 $9,998,745 32 CITY OF ROSEMEAD, CALIFORNIA GENERALF UND REVENUE DETAIL - BUDGET AND ACTU AL Fiscal Year Ended J une 30, 1998 Over (Under) Budget Actual Budget 1997 TAXES Maintenance district $1,500 $1,366 ($134) $1,575 Real estate transfer tax 40,000 46,600 6,600 47,904 Sales and use tax 2,500,000 2,658,370 158,370 2,550,967 Franchise fees 578,000 605,586 27,586 574,497 Transient occupancy tax 735,000 822,611 87,611 777,568 $3,854,500 $4,134,533 $280,033 $3,952,511 LICENSES AND PERMITS Business license fees $35,000 $39,149 $4,149 $34,578 Building permit fees 525,000 529,417 4,417 511,039 Public work permit 56,000 46,792 (9,208) 76,133 Tentative map fees 7,500 6,940 (560) 5,975 Development review fees 5,500 1,499 (4,001) 17,260 Final map fees 25,000 16,775 (8,225) 25,365 Occupancy permit fees 56,000 58,656 2,656 58,490 Sewer connection 30,000 37,544 7,544 28,624 Strong motion fees 2,300 2,390 90 2,573 Rehabilitation permit fees 1,600 - (1,600) - $743,960 $739,162 ($4,738) $760,037 INTERGOVERNMENTAL Financial aid to local agencies $900,000 $1,054,459 $154,459 $1,017,845 Motor vehicle in lieu tax 2,000,000 2,372,031 372,031 2,192,695 Other vehicle taxes 11,800 857 (10,943) 856 COPS Grant 69,070 52,060 (17,010) 352,029 Other State grants 162,000 (162,000) 297,351 $3,142,870 $3,479,407 $336,537 $3,860,776 CHARGES FOR SERVICES Filing and certification fees $50,000 $50,005 $5 $54,503 Other current charges 224,600 214,363 (10,237) 249,735 Recreation fees 224,506 185,528 (38,972) 226,876 Assessments 3,000 16,784 13,784 25,586 Special community events 24,100 23,112 (988) 19,333 $526,200 $489,792 ($36,408) $576,033 FINES, FORFEITURES AND PENALTIES Court fines and forfeitures $281,500 $279,104 ($2,396) $276,281 USE OF MONEY AND PROPERTY Interest eared on investments $360,000 $582,970 $222,970 $505,143 Rental Income 58,200 60,955 2,755 63,267 $418,200 $643,925 $225,725 $568,410 OTHER SANE program $32,500 $12,500 ($20,000) $12,500 Repairs to and sale of City property 1,100 1,040 (60) 3,552 Miscellaneous 15,000 13,073 (1,927) 14,869 $48,600 $26,613 ($21,987) $30,921 Total Revenues $9,015,770 $9,792,536 $776,766 $10,024,969 33 7 t CI TY OF ROSE MEAD CALIFORNIA , GENERAL FUND EXPENDITURE DETAIL - BUDGET AND ACTUAL Fiscal Year Ended June 30,1998!: Over (Under) Budget Actual Budget 1997 GENERAL GOVERNMENT ' Travel and meeting $23,000 $28,178 $5,178: $27,841 City council 66,300 65,347 (953) 64,767 City administration 492,100 514,411 22,311 554,615 ' City clerk 91,330 81,317 (10,013) 109,869 Finance 246,800 223,128 (23,672) 231,670 City treasurer 12,000 11,757 (243) 12,059 ' City attorney 124,100 98,037 (26,063) 124,482 General government buildings 417,500 323,785 (93,715) 366,414 Community promotion 273,110 250,287 (22,823) 275,837 City garage 42,550 35,215 (7,335) 45,055 $1,788,790 $1,631,462 ($157,328) $1,812,609 ' PUBLIC SAFETY ' Law enforcement Animal regulation $4,227,270 50,000 $4,007,316 57,138 ($219,954) 7,138 $4,276,631 67,934 Parking control 125,200 146,358 21,158 117,359 ' Crossing guard 102,900 91,688 (11,212) 90,867 Emergency services 19,400 6,677 (12,723) 8,993 Narcotics forfeiture 42 42 110 Street lighting - - - - $4,524,770 $4,309,219 ($215,551) $4,561,894 ' PUBLIC WORKS Engineering and administration $36,640 $33,154 ($3,486) $36,452 Street and highway construction 76,000 136,310 70,310 8,939 Traffic signs and striping maintenance 9,989 9,989 1,616 $112,640 $189,453 $76,813 $47,007 a PUBLIC HEALTH Public health services $59,000 $45,381 ($13,619) $45,966 PUBLIC RECREATION Administration $194,900 $192,834 ($2,066) $187,735 Parks 982,650 847,260 (135,390) 1,104,630 Recreation 610,300 592,582 (17,718) 594,279 ' Aquatics 309,800 270,130 (39,670) 253,630 Dinsmoor Heritage House 4,000 3,373 (627) 3,792 $2,101,650 $1,906,179 ($195,471) $2,144,066. COMMUNITY SERVICE Planning $208,460 $195,248 ($13,212) $204,899 Building regulation 444,800 488,156 43,356 458,867 ' Engineering 271,600 222,462 (49,138) 244,505 Community improvements 93,120 106,016 12,896 105,809 $1,017,980 $1,011,882 ($6,098) $1,014,080 ' CAPITAL OUTLAY $59,550 $56,182 ($3,368) $47,683 APPROPRIATION RESERVES $100,000 ($100,000) 758 9 9 ($614 622) 673 305 $9 Total Expenditures $9,764,380 ,14 , $ , , , 1 34 THIS PAGE INTENTIONALLY LEFT BLANK 35 1 1 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. 36 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 TAX 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. 37 ' SPECIAL REVENUE FUNDS (cont'd) 1 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 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. 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. 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. 1 38 CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1998 ASSETS Cash and cash investments Receivables 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 Air Quality Local Public Community Traffic State Management Trans- Trans- Development Safety Gas Tax District portation portation Block Grant Fund Fund Fund Fund Fund Fund $704,996 $95,353 $7 $1,046,078 $128,847 8,548 8,856 15,556 100,354 458,126 $8,548 $713.852 $110909 $7 $1,146,432 $586,973 $70,014 $2,535 $85,096 $151,840 8,548 188,451 246,682 $8,548 $70014 $85,096 $586,973 643,838 108,374 7 1,061,336 $ - $633,838 $108,374 $7 $1,061,336 $8,548 $713,852 $110,909 $7 $1,146,432 $586,973 39 p, I CITY OF ROSEMEAD, CALIFO RNIA SPECIAL REVENUE FUNDS ' COMBINING BALANCE SHEET June 30, 1998 1976 Community Low-Moderate Rosemead Parklands Street Narcotics Income Hous- Housing California Grant Lighting Seizure ing Set-Aside Development Wildlife Fund Fund Fund Fund Corporation Grant ' $45,876 $428,687 $10,025 $4,494,159 $104,346 $1,436 35,298 71,703 - 862 346 $104 436 $1 $45,876 $463,985 $10,025 $4,565, , , ' $ - $9,624 $10,025 $ - $15,707 $ - 1,400 $9,624 $10,025 $15,707 $1,400 1 $ _ $ _ $ - $4,565,862 ' 45,876 454,361 88,639 36 $45,876 $454,361 $4,565,862 $88,639 $36 ' $45,876 $463,985 110.025 $4,565,862 $104 346 $1 436 1 1 ' 40 THIS PAGE INTENTIONALLY LEFT BLANK 41 ALIFORNIA CITY OF ROSEMEAD, C SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1998 1 Federal Highway Totals Grants 1998 1997 ' ASSETS Cash and cash investments $7,059,810 $6,119,855 Receivables 698,441 421,198 1 053 $6 541 Total Assets S. $7,758,25 , , ' LIABILITIES AND MUNICIPAL EQUITY Liabilities: Accounts payable $ - $344,841 $424,111 Due to other funds 198.399 31,370 ' Deferred revenue 246,682 246,682 Total Liabilities 789,922 702,163 Municipal Equity: Reserved for low-moderate income housing $4,565,862 $4,251,917 ' Unreserved, undesignated 2.402,467 1,586,973 Total Equity $6,968,329 $5,838,890 ' Total Liabilities and Municipal Equity $7,758,251 $6,541,053 t ' 42 CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Fiscal Year Ended June'30, 1998 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 Capital outlay Total Expenditure Revenue over (under) expenditures Traffic State Safetv Gas Tax Fund Fund Air Quality Local Management Trans- District portation Fund Fund $ - 991,722 59,719 9,700 70,218 36,167 $70,218 $1,037,589 $59,719 7 Public Trans- portation Fund 1,103,705 55,553 $7 $1,159,258 $ - $ - $ - $ - 70,218 827,444 51,289 2,473 790,356 3,857 $70.218 $827,444 $55,146 $2,473 $790,356 $ - $210,145 $4,573 ($2,466) $368,902 0 OTHER FINANCING SOURCES (USES): Operating transfers: From other funds $ - $ - $ - $2,473 147,206 (To) other funds (147,206) $ _ $2,473 $ - Revenue and other financing sources over (under) expenditures $ - $210,145 $4,573 $7 $368,902 FUND BALANCE, BEGINNING 433,693 103;801 692,434 FUND BALANCE, ENDING $ - $643 838 $108,374 $7 $1,061,336 43 NIA CITY OF ROSE MEAD, CALIFOR SPECIAL R EVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Fiscal Year Ended June 30, 1998 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 $ - $ - $418,502 $ - $ $ 1,120,833 2,840 2,468 241,906 162,600 160 ' $1,120,833 $2,468 $418,502 $2,840 $241,906 $162,760 $ _ $ - $ _ $121,052 - 230,811 45,695 75,871, 1,044,962 - ' 052 $121 $1,120,833 $230,811 $45,695 , ' $ - $2,468 $187,691 ($42,855) $241,906 $41,708 $ - $ 42,855 $222,039 $150,000 (150,000) (150,000) $ _ $ _ $ - $42,855 $72,039 $ - $2,468 $187,691 $ - $313,945 $41,708 ' 917 4 251 46 931 43,408 266,670 , , , ' $ - $45.876 $454,361 $4.565.862 $88,639 ' 44 THIS PAGE INTENTIONALLY LEFT BLANK 45 O CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Fiscal Year Ended June 30, 1998 California Wildlife ' Grant REVENUES: ' Special assessments $ Intergovernmental Charges for services Fines, forfeiture and penalties ' Use of money and property Other EXPENDITURES: Current: General goverrimcm ' Public safety Public works Community services ' Capital outlay _ ' OTHER FINANCING SOURCES (USES): Operating transfers: From other funds ' (To) other funds _ Federal Highway Totals 1998 1997 $418,502 3,278,819 9,700 70,218 498,701 160 $4,276,100 $121,052 346,724 1,747,433 1,048,819 $3,264,028 $1,012,072 $ - $ - $564,573 (447,206) $ - $117,367 ' Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING ' FUND BALANCE, ENDING $ _ $ t ' 46 $1,129,439 5,838,854 $6.968.293 $382,609 3,672,184 8,000 87;657 422,877 3,398 $4,576,725 $190,748 360,303 2,543,754 962,885 $4,057,690 $519,035 $443,439 (300,000) $143,439 $662,474 5.176,416 $5.838,890 CITY OF ROSEMEAD, CALIFORNIA TRAFFIC SAFETY FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1998 Over (Under) Budget Actual Budget 1997 REVENUES: Fines, forfeiture and penalties $60,000 $70,218 310,218 $87,657 Total Revenues $60,000 $70,218 $10,218 $87,657 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 $60,000 $70,218 $10,218 $87,657 $60,000 $70,218 $10,218 $87,657 47 CITY OF ROSEMEAD, CALIFORNIA ' STATE GAS TAX FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1998 REVENUES: Intergovernmental Charges for services Use of money and property Other 1 Total Revenues t EXTENDITURES: 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 1 Over (Under) Budget Actual Budget $907,500 $991,722 $84,222 8,000 9,700 1,700 2,500 36,167 33,667 $918,000 $1,037,589 $119.589 $1,165,120 $827,444 ($337,676) $1,165,120 $827,444 ($337,676) ($247,120) $210,145 $457,265 1997 $975,184 . 8,000 27,160 242 $1,010,586 $940,952 $940,952 $69,634 ($247,120) $210,145 433,692 __$643,837 $457.265 48 $69,634 364,059 $433,693 CITY OF ROSEMEAD, CALIFORNIA AIR QUALITY MANAGEMENT DISTRICT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1998 Over (Under) Budget Actual Budget REVENUES: Intergovernmental $60,000 $59,719 ($281) Use of money and property 4,500 (4,500) . Other 150 (150) Total Revenues $64,650 $59.719 ($4,931) 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 1997 $57,154 $110,157 3,815 49 $24,500 3,900 $28,400 $36,250 ($56,818) $36,250 $4,573 ($31 677) ($56,818) 103,801 $108,374 ($56,818) $51,289 3,857 $4,573 $26,789 (43) $26,746 $31,677 i CITY OF ROSEMEAD, CALIFORNIA i LOCAL TRANSPORTATION FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE i Fiscal Year Ended June 30, 1998 REVENUES: i Intergovernmental Charges for services Use of money and property i Total Revenues i EXPENDITURES: Public works Total Expenditures i Revenues over (under) expenditures i OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds Revenue and other financing sources over (under) expenditures ' FUND BALANCE, BEGINNING i FUND BALANCE, ENDING 1 1 1 Budget Actual Over (Under) Budget 1997 $20,000 ($20,000) $22,262 100 (100) 7 7 $20,100 $7 ($20,093) $22,262 $20,000 $2,473 ($17,527) $29,396 $20,000 $2,473 ($17,527) $29,396 $100 ($2,466) $2,566 ($7,134) $ - $2,473 $2,473 $7,134 $100 $7 ($93) $ $7 $ 50 CITY OF ROSEMEAD, CALIFORNIA PUBLIC TRANSPORTATION FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1998 Over (Under) Budget Actual Budget 1997 REVENUES: Intergovernmental $960,000 $1,103,705 $143,705 $1,038,697 Use of money and property 21,000 55,553 34,553 36,470 Total Revenues $981,000 $1,159,258 $178,258 $1,075,167 EXPENDITURES: Current'. Public works $1,567,550 $790,356 ($777,194) $843,432 Total Expenditures $1,567,550 $790,356. ($777,194) $843,432 Revenues over(under)expenditures ($586,550) $368,902 ($955,452) $231,735 OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds $242,550 $ - ($242,550) $ - Revenue and other financing sources over (under) expenditures ($344,000) $368,902 $712,902 $231,735 FUND BALANCE, BEGINNING 692,434 FUND BALANCE, ENDING $1,061,336 $231,735 51 CITY OF ROSEMEAD, CALIFORNIA ' COMMUNITY DEVELOPMENT BLOCK GRANT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ' Fiscal Year Ended June 30, 1998 ' REVENUES: Intergovernmental Total Revenues ' EXPENDITURES: Current: ' Public works Conununity services Total Expenditures ' Revenues over (under). expenditures ' OTHER FINANCING SOURCES (USES): Operating transfers: From (ro) other funds Revenue and other financing sources over(under)expenditures ' FUND BALANCE, BEGINNING ' FUND BALANCE, ENDING Over (Under) Budget Actual Budget 1997 $3,153,974 $1,120,833 ($2,033,141) $1,578,887. $3,153,974 $1,120,833 ($2,033,141) $1,578,887 $1,391,450 $75,871 1,762,524 1,044,962 $3,153,974 $1.120,833 52 ($1,315,579) $619,817 (717,562) .959,070 ($2,033,141) $1.578,887 CITY OF ROSE117EAD, CALIFORNIA 1976 COMMUNITY PARKLANDS GRANT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1998 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 Over (Under) Budget Actual Budget 1997 $o 2,468 2,468 2,115 $2,468 $2,468 $2,115 $2,468 $2,468 $2,115 $ $ $ - $2,468 $2,468 $2,115 43,408 $45,876 $2,115 53 . e d11 - CALIFORNIA EMEAD , CITY OF ROS STREET LIGHTING FUND ' STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1998 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 ' RESIDUAL EQUITY TRANSFER ' FUND BALANCE, ENDING Over (Under) Budget Actual Budget 1997 $360,000 $418,502 $58,502 $382,609 $360,000 $418,502 $58,502 $382,609 $451,000 $230,811 ($220,189) .$226,287. $451,000 $230,811 ($220,189) $226,287 ($91,000) $187,691 $278,691 $156,322 ($91,000) $187,691 266,670 $454 361 54 $ $ $278.691 $156,322 $156,322 CITY OF ROSEMEAD, CALIFORNIA NARCOTICS SEIZURE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1998 REVENUES: Intergovernmental Use of money and property 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 Over (Under) Budget Actual Budget 1997 $48,350 $2,840 ($45,510) 0 246 $48,350 $2,840 ($45,510) $246 $18,350 $45,695 ($2,655) $46,359 $48,350 $45,695 ($2,655) $46,359 ($42,855) ($42,855) ($46,113) $42,855 $42,855 $46,113 55 ' CITY OF ROSEMEAD, CALIFORNIA LOW-MODERATE INCOME HOUSING FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ' Fiscal Year Ended June 30, 1998 ' REVENUES: Use of money and property Total Revenues ' EXPENDITURES: General government ' 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 1 Over (Under) Budget Actual Budget 1997 $120,000 $241,906 $121,906 $194,553 $120,000 $241,906 $121,906 $194,553 $ $120,000 $241,906 $121,906 $194,553 ($1,250,000) $72,039 $1,322,039 $90,192. ($1.130,000) $313,945 $1,443,945 $284,745 4,251,917 $4,565,862 56 $284,745' u CITY OF ROSEMEAD, CALIFORNIA ROSEMEAD HOUSING DEVELOPMENT CORPORATION STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1998 1 Over (Under) Budget Actual Budget 1997 REVENUES: Use of money and property $161,350 $162,600 $162,333 $162,333 Other 5,000 160 (4,840) 3,156 Total Revenues $166,350 $162,760 $157,493 $165,489 EXPENDITURES: General government $1,238,750 $121,052 - ($1,117,698) $190,748 Public Nvorks 15,000 (15,000) Total Expenditures $1,253,750 $121,052 ($1,132,698) $190,748 Revenues over(under)expenditures ($1,087,400) $41,708 ($1,290,191) ($25,259) OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds $1,100,000 ($1,100,000) Total OtherFiuancingSources (Uses) $1.100,000 ($1,100,000) Revenue and other financing sources over(under)expenditures $12,600 $41,708 $29,108 ($25,259) FUND BALANCE, BEGINNING 46,931 FUND BALANCE, ENDING $88.639 ($25,259) 57 f )r' CALIFORNIA TY.OF ROSEMEAD C , I CALIFORNIA WILDLIFE FUND ' STATEMENT OF REVENUE, EXPENDITURES A ND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1998 ' ' Over (Under) ' Budget Actual Budget 1997 I i REVENUES: Intergovemmental ' $ 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 36 .36 ' FUND BALANCE, ENDING $36 $36 I i ' 58 CITY OF ROSEMEAD, CALIFORNIA FEDERAL HIGHWAY GRANTS FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1998 Over (Under) Budget Actual Budget 1997 REVENUES: Intergovernmental $1,023.000 ($1,023,000) Use of money and property Total Revenues $1,023,000 ($1,023,000) EXPENDITURES: Public works $1,023,000 ($1,023,000) Total Expenditures _$1,023,000 ($1,023,000) 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 59 1 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. 60 CITY OF ROSEMEAD, CALIFORNIA CAPITAL PROJECTS FUND BALANCE SHEET June 30, 1998 1998 1997 ASSETS Cash and investments $18,394,832 $18,687,263 Receivables 287,784 549,233 Due from other funds 1,634 Total Assets $18,682,616 $19,238,130 LIABILITIES AND MUNICIPAL EQUITY Liabilities: Accounts payable and accrued liabilities Arbitrage rebate payable Due to City of Rosemead Due to other funds $309,914 6,994 $316,908 $198,766 Total Liabilities Municipal Equity and Other Credits: Fund Balance: Unreserved: Designated for capital projects Total Fund Balance Total Liabilities, Municipal Equity and Other Credits $198,766 18,3 65,708 19,03 9,364 $18,365,708 $19,039,364 $18,682,616 $19,238,130 61 CITY OF ROSEMEAD, CALIFORNIA CAPITAL PROJECTS FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1998 REVENUES: Property taxes and special assessments Use of money and property Other Total Revenue EXPENDITURES: Current: Improvements to project area Professional fees City administrative services 1 Intergovernmental Arbitrage rebate (credit) Capital outlay ' Total Expenditures ' Revenue over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers: From other funds (To) other funds ' Total Other Financing Sources (Uses) ' Revenues and Other Financing Sources over (under) expenditures FUND BALANCE, BEGINNING PRIOR PERIOD ADJUSTMENT FUND BALANCE, ENDING 62 1997 $2,770,865 1,213,094 44,855 $4,028,814 $1,350,424 40,360 7,206 $1,397,990 $2,630,824 (3,304,480) ($3,304,480) ($673,656) 19,039,364 $18,365,708 1997 $2,845,775 1,288,447 28,943 $4,163,165 $758,811 20,544 29,706 $809,061 $3,354,104 (3,323,494) ($3,323,494) ' $30,610 19,008,754 $19,039,364 CITY OF ROSEMEAD, CALIFORNIA CAPITAL PROJECTS FUND STATEMENT'OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE'- BUDGET AND ACTUAL Fiscal Year Ended June 30, 1998 REVENUE Property taxes and special assessments Use of money and property Other EXPENDITURES Improvements to project area Professional fees City administrative services Intergovernmental Arbitrage rebate expense Capital outlay Investinerit loss Revenue over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers: From other funds (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 1997 $2,700,000 $2,770,865 $70,865 $2,845,775 345,000 1,213,094 868,094 1,288,447 44,855 44,855 28,943 $3,045,000 $4,028,814 $983,814 $4,163,165 $6,682,250 $1,350,424 ($5,331,826) $758,811 35,000 40,360 5,360 20,544 9,900 7,206 29,706 $6.727,150 $1,397,990 ($5,326,466) $809,061 ($3,682,150) $2630,824 $6,310,280 $3,354,104 (3,226,350) __($6.908 50O (3,304,480) (78,130) (3,323,494) ($3,304,480) _($78,130) ($3,323,494) ($673,656) $6,234,844 $30,610 19,039,364 19,008,754 $18.365,708 $19,039,364 63 e s t t 1 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. 64 CITY OF ROSEMEAD, CALIFORNIA DEBT SERVICE FUND BALANCESHEET June 30, 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 65 1998 1997 $2,322,681 $2,344,420 30,593 11,193 $2,353,274 $2,355,613 $2,353,274 $2,355,613 $2,353,274 $2,355,613 $2,353,274 $2,355,613 Y e CITY OF ROSEMEAD, CALIFORNIA DEBT SERVICE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE a Fiscal Year Ended June 30, 1998 a a REVENUES: Interest a Total Revenue EXPENDITURES: a Debt service: Principal Interest a Certificate of refunding Issuance costs a Total Expenditures Revenue over (under) expenditures a OTHER FINANCING SOURCES (USES): a Operating transfers: From other funds (To) other funds a Total Other Financing Sources (Uses) a Revenues and Other Financing Sources over (under) expenditures a FUND BALANCE, BEGINNMG FUND BALANCE, ENDING a a a a a 66 1998 1997 $141,574 $135,601 $141,574 $135,601 $295,000 $280,000 1,984,054 1,991,333 $2,279,054 $2,271,333 ($2,137,480) ($2,135,732) $2,135,141 $2,136,002 $2,135,141 $2,136,002 ($2,339) 2,355,613 $2,353,274 $270 2,355,343 $2,355,613 F CITY OF ROSEMEAD, CALIFORNIA DEBT SERVICE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Fiscal Year Ended June 30, 1998 REVENUE Interest Other EXPENDITURES Debt Service: Principal Interest Certificate refunding Revenue over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers: From other funds (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 1997 $130,000 $141,574 $11,574 $135,601 $130,000 $141,574 $11,574 $135,601 $295,000 $295,000 $280,000 1,984,053 1,984,054 1 1,991,333 $2,279,053 $2,279,054 - $1 $2,271,333 ($2,149,053) ($2,137,480) $11,573 ($2,135,732) $2,279,050 $2,135,141 ($143,909) $2,136,002 $2,279,050 $2,135,141 ($143,909) $2,136,002 $129,997 ($2,339) ($132,336) $270 2,355,613 2,355,343 $2,353,274 $2,355,613 67 Y 1 1 8 O 1 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. 68 CITY OF ROSEMEAD, CALIFORNIA FIDUCIARY FUNDS COMBINING BALANCE SHEET June 30, 1998 ASSETS Pension Trust Fund Refundable Deposits Totals Cash and cash investments Receivables Total Assets 1998 1997 $203,441 $102,008 $305,449 $825,591 $203,441 $102,008 $305,449 $825,591 LIABILITIES AND MUNICIPAL EQUITY Liabilities: Refundable deposits Deferred compensation Total Liabilities $102,008 $102,008 $95,568 517,848 $102,008 $102,008 $613,416 Municipal Equity: Fund balance, reserved for employees' retirement $203,441 $ $203,441 $212,176 Total Liabilities and Municipal Equity $203,441 $102,008 $305 449 $825,592 69 e a Assets Cash and cash investments Receivable Total Assets 1 Liabilities Refundable deposits 1 t CITY OF ROSEMEAD, CALIFORNIA AGENCY FUND COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Fiscal Year Ended June 30, 1998 Balance Balance July 1, 1997 Additions Deductions June 30, 1998 $95,568 $14,058 $7,618 $102,008 $95,568 $14,058 $7,618 $102,008 $95,568 $14,058 $7,618 $102,008 $95,568 $14,058 $7,618 $102,008 70 I 1 1 1 1 THIS PAGE INTENTIONALLY LEFT BLANK 1 1 1 1 1 1 1 1 1 1 1 1 71 1 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. 72 CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF GENERAL FIXED ASSETS June 30, 1998 GENERAL FIXED ASSETS 1998 1997 $4,730,565 5,785,314 258,873 1,314,296 595,486 868,483 $4,730,565 5,641,692 252,264 1,198,734 566,205 866,671 Land Buildings and improvements Vehicles Furniture and office equipment Special equipment and machinery Other improvements Total General Fixed Assets SOURCES OF FUNDS Prior Years Balance General Fund Community Development Block Grant Community Parklands Grant California Wildlife Grant Public Transportation Fund Redevelopment Agency Rosemead Housing Development Corporation Ending Balance $13,553,017 $13,256,131 Balance Balance July 1, 1997 Additions Deletions June 30, 1998 $8,627,668 $8,627,668 210,707 80,718 $22,417 269,008 54,767 - 54,767 1,353 - 1,353 84,010 - 84,010 (2,364) - (2,364) 810,122 238,585 - 1,048,707 3;469,868 - 3,469,868 $13,256,131 $319,303 $22,417 $13,553,017 73 CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF CHANGES OF GENERAL FIXED ASSETS Fiscal Year Ended June 30, 1998 e Balance Balance Function and Activity Jul), 1, 1997 Additions Deletions June 30, 1998 Land Prior year balance $542,926 $542,926 Redevelopment agency Housing development corporation 2,350,308 1,837,331 _ 2,350,308 1,837,331 Total land $4,730,565 $4,730,565 Buildings and improvements Prior year balance $1,987,300 $1,987,300 General government 11,971 11,971 Community services 50,064 50,064 Public recreation 1,991 1,991 Redevelopment agency 1,957,830 143,622 2,101,452 Housing development corporation 1,632,536 1,632,536 Total buildings and improvements $5,641,692 $143,622 $5,785,314 Vehicles t Prior year balance $230,588 $230,588 General government 24,040 29,026 22,417 30,649 Transportation (2,364) (2,364) ' Total vehicles $252,264 $29,026 $22,417 $258,873 Furniture and office equipment ' Prior year balance $427,588 $427,588 Generalgovernmcnt 45,353 11,645 56,998 Public safety 4,008 - - 4,008 Community development 9.626 1,558 - 11,184 ' Cultural & leisure 101165 7,396 17,561 Redevelopment agency 701,994 94,963 - 796,957 Total furniture and office ' equipment $1,198,734 $115,562 $1,314,296 Special equipment and machinery ' Prior year balance $490,765 $490,765 Public safety $37,169 5,974 43,143 Community development $2,054 - 2,054 ' Cultural & leisure 36,217 23,307 59,524 Total special equipment and machinery $566,205 $29,281 $595,486 t Other improvements Prior vear balance $748,492 $748,492 General government $4,927 4,927 ' Public safety 9,464 9,464 Cultural & leisure 103,788 1,812 105,600 Total other improvements $866,671 $1,812 $868,483 t Total general fixed assets $13256,131 $319,303 $22,417 $13,553,017 ' 74 THIS PAGE INTENTIONALLY LEFT BLANK 75 1 s 0 8 1 1 0 e S T A T Notes: The City of Rosemead does not I have revenue bonds; therefore, the Revenue Bond Coverage - Last Ten Fiscal Years schedule is not included. T C A L 1 1 a a t THIS PAGE INTENTIONALLY LEFT BLANK 76 CITY OF ROSEMEAD, CALIFORNIA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) ALL GOVERNMENTAL FUND TYPES Last Ten Fiscal Years Fiscal Public Public General Public Public Year Safety Works Government Health Recreation 1988-89 $3,651,535 $7,624,877 $1,611,328 $605,353 $1,529,628 1989-90 3,809,631 8,536,328 1,712,102 856,298 1,775,194 1990-91 3,994,221 6,374,969 2,215,912 1,014,349 1,838,493 1991-92 4,268,763 8,757,535 2,710,801 95,495 1,959,686 1992-93 4,264,366 3,598,687 2,429,325 1,677 1,858,238 1993-94 4,596,592 4,096,433 2,545,662 17,665 1,719,424 1994-95 4,666,871 4,400,953 1,918,204 39,852 1,901,397 1995-96 4,733,426 3,788,669 1,946,848 44,863 1,869,684 1996-97 4,922,197 3,349,572 2,053,607 45,966 2,144,066 1997-98 4,655,943 3,287,310 1,800,080 45,381 1,906,179 (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. 77 Community Services $1,528,378 1,510,545 348 2 070 , , 8 1,592,156 1,411,467 2,092,838 2,090,216. 1,867, 352 1,976,965 2,060,701 Capital Outlay $840,338 123,443 160,397 144,180 36,384 1,897, 838 1,713,742 119,184 47,683 56.182 Millions ' $25 $20 ' $15 ' $10 $5 $0 1 OPublic Works MPublic Safety ODebt Services ®General Govt. OPublic Recr. OComm. Serv. OMisc. Debt Service $2,640,807 2,618,539 2,602,350 2,588,617 2,569,813 6,026,877 2,279,153 2,271,154 2,271,333 2,279,054 Inter- governmental $7,459 580,791 175,295 175,330 Other Total $20,039,703 - 20,942,080 20,271,039 22,117,233 213,721 16,964,469 (59,745) 23,108,879, 2,210,624 21,396,342 180,000. 16,821,180 16, 811,389 16,090,830 78 1993-94 1994-95 1995-96 1996-97 1997-98 CITY OF ROSEMEAD, CALIFORNIA GENERAL REVENUES BY SOURCE (1) ALL GOVERNMENTAL FUND TYPES Last Ten Fiscal Years Fiscal Property Special Other Licenses Year Tax Assessments Taxes and Permits 1988-89 $3,921,667 $273,777 $3,591,798 $496,966 1989-90 3,204,232 303,374 4,176,257 533,050 1990-91 3,059,892 347,061 4,245,201 479,084 1991-92 3,746,398 384,036 3,787,547 554,935 1992-93 3,379,446 395,646 3,866,690 579,124 1993-94 3,185,746 342,315 4,011,829 812,096 1994-95 3,411,909 386,814 3,907,616 699,234 1995-96 2,671,909 365,184 3,664,031 760,191 1996-97 2,845,775 382,609 3,952,511 760,037 1997-98 770,865 418,502 4,134,533 739,162 (1) Includes General, Speci al Revenues, Capital Projects, and Debt Service Funds. 79 r Inter- oovernmental $4,518,697 3,725,299 4,557,510 4,824,498 5,174,436 5,985,542 6,733,543 6,155,519 7,532,960 6,758,226 1 e. Charges for Services 8 $338,686 284,851 a 228,615 e 366,345 347,262 v 429,932 564,962 539,055 584,033 499,492 $20 a $,s 0 e $5 r $0 Fines, Use of Forfeitures Money and and Penalties Property Other Total - $477,896 $2,788,346 $97,468 $16,505,301 524,001 2,389,057 191,389 15,331,510 355,047 1,844,552 165,237 15,282,199 278,253 1,625,706 391,194 15,958,912. 313,980 1,258,827 318,603 15,634,014, 338,786 1,887,659 307,415 17,301,320 317,969 1,383,762 387,606 17,793,415. 365,400 2,667,346 138,159 17,326,794 363,938 2,415,335 63,262 18;900,460. . 349,322 2,497,294 71,628 16,239,024 Millions 1993.94 1994-96 1895-96 199697 1997-98 1 Dlntergovt. I•Prop. Tax C30ther Taxes ®Use of M & P ®Misc. OLic. & Permits OFines, For. & Pen. 80 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 1988-89 $2,200 $147,115 $2,926 $2,665,676 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 ' r - 2,658,370 s; M. 81 8 1 Franchise Fees Transient Occupancy Tax $461,620 $312,261 494,223 332,140 556;710 551,256 525,327 523,767 547,920 626,743 550,555 719,157 568,020 718,877 577,004 735,574 574,497 777,568 605,586 822,611 Total $3,591,798 4,176, 257 4,245,201 3,787,547 3,866,690 4,011, 829 3,907,616 3,664,031 3,952,511 4,134, 533 82 I CITY OF ROSEMEAD, CALIFORNIA ASSESSED VALUATIONS OF TAXABLE PROPERTY Last Teri Fiscal Years Fiscal Personal Unitary and Operating (1) Year Land Improvements Property Non-unitary Property 1988-89 $443,973,950 $589,616,183 $8,095,040 $159,654,640 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 (1) Effective with fiscal year 1988-89, Unitary and Operating Non-uni tary assessed valuation are listed separately. Source: Los Angeles County Auditor-Controller, Tax Division 83 e Land Locally Assessed Net Personal Property Property Improvements Property Total Exemptions Value - $11,690,310 $42,915,285 $1,255,945,408 $28,171,346 $1,227,774,062 14,019,566 48,546,323 1,415,812,119 26,320,466 1,389,491,653 13,855,289 41,336,467 1,522,017,208 28,314,973 < 1,493,702,235 13,991,213 40,321,969 1,691,720,117 29,940,297 1,661,779,820 13,854,565 34,011,333 1,806,215,025 31,116,915 1,775,098,110 15,022,792 29,128,797 1,851,070,422 '21,456,065 1,829,614,357 13,103,797 26,191,169 1,895,166,324 24,386,741 1,870,779,583 14,186,602 25,615,938 1,886,330,140 28,458,429 1,857,871,711 14,583,278 25,615,938 1,886,096,194 33,592,337 1,852,503,857.. 13,161,523 25,688,653 1,984,952,029 28,607,474 1,956,344,555 84 NET PROPERTY VALUE Millions CITY OF ROSEMEAD, CALIFORNIA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS LIGHTING AND MAINTENANCE DISTRICT Last Ten Fiscal Years Assessment Fiscal Year Levy 1988-89 $285,712 1989-90 315,287 1990-91 314,824 1991-92 350,800 1992-93 388,417 1993-94 347,298 1994-95 339,205 1995-96 350,258 1996-97 373,885 1997-98 377,243 Current Assessment Collected $275,977 304,072 355,366 385,345 398,073 343,507 388,150 366,475 384,184 419,868 85 Percentage Collected Currently 96.59% 96.44 112.88 109.85 102.49 98.91 114.43 104.63 102.75 111.30 CITY OF ROSEMEAD, CALIFORNIA COMPUTATION OF. LEGAL DEBT MARGIN June 30,1998 1 Total assessed valuation Debt limit: 3.75% of total assessed valuation Amount of debt applicable to debt limit: Total bonded debt $35,610,000 Less tax allocation notes exempt by law 35,610,000 Q Total amount of debt application to debt limit Legal debt margin 1 ' 86 $ 1,956,344,555 $ 73,362,921 $ 0 $ 73,362,921 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 e 1988-89 $1,420,000 $1,218,143 $2,638,143 $20,039,703 13.16 % 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 i (1) Includes all Governmental Fund Types. Premium for defeasement of bonds not included. 87 .r 1 e $25 $20 $15 $10 $5 $0 1988-89 $25 $20 $15 $10 $5 $0 1993-94 TOTAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Millions 1989-90 1990-91 1991-92 1992-93 Millions 1994-95 1995-96 1996-97 1997-98 88 CITY OF ROSEMEAD, CALIFORNIA RATIO OF ANNUAL DEBT SERVICE EXPENDITURE FOR TOTAL BONDED DEBT TO"TOTAL ASSESSED VALUATION Last'Ten Fiscal Years • i ' Debt Service Total To Total Fiscal Total Debt Assessed Assessed Year Principal Interest Service Valuation Valuation 1988-89 $1,420,000 $1,218,143 $2,638,143 $1,227,774,062 0.21 % 1989-90 1,515,000 1,101,760 2,616,760 1,389,491,653 0.19 1990-91 1,630,000 972,350 2,602,350 ,1,493,702,235. 0.17 1991-92 1,760,000 828,617 2,588,617 1,661,779,820 0.16 1992-93 1,900,000 669,813 2,569,813 1.,775,098,110 0.15 1993-94 2,055,000 1,137,474 3,192,474 1,829,614,357 0.17 1994-95 260,000 2,019,153 2,279,153 1,870,779,583 0.12 1995-96 265,000 2,006,154 2,271,154 1,857,871,711 0.12 1996-97 280,000 1,991,333 2,271,333 AL. - 1,852,503,857 0.12 1997-98 295,000 1,984,054 2,279,054 1,956,344,555 0.12 F 89 ' 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 0 1988-89 $1,420,000 $1,218,143 $2,638,143 $47,707 $55 1989-90 1,515,000 1,101,760 2,616,760 51,156 51.15 8 47 81 49 1990-91 1,630,000 972,350 2,602,350 52,2 . 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 34 59 1993-94 2,055,000 1,137,474 3,192,474 53,798 . 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 41 20 1996-97 280,000 1,991,333 2,271,333 55,128 . 1997-98 295,000 1,984,054 2,279,054 55,760 40.87 90 CITY OF ROSEMEAD, CALIFORNIA PROPERTY TAX RATES -ALL OVERLAPPING GOVERNMENTS (Per $166 of Assessed Valuation) Last Ten Fiscal Years Fiscal City of Year Rosemead 1988-89 0 1989-90 0 1990-91 .0 1991-92 0 1992-93 0 1993-94 0 1994-95 0 1995-96 0 1996-97 0 1997-98 0 Los Los Angeles County Angeles School Water Flood Sanitation County Districts Districts Control District Total 1.002781 0.115568 0.048900 0.010487 0 1.177736 1.002242 0.109700 0.048900 0.006944 0 1.167786 1.002104 0.072543 0.061533 0.005786 0 1.141966 1.001409 0.078219 0.044300 0.003397 0 1.127325 1.001713 0.144909 0.014100 0.004212 0 1.164934 1.001713 0.073026 0.044100 0.004212 0 1.123051 1.001993 0.080512 0.038900 0.006041 0 1.127446 1.001604 0 0.038900 0.001991 0 1.042495 1.001604 0 0.038900 0.001991 0 1.042495 1.001604 0 0.038900 0.001991 0 1.042495 Source: Tax Rates By Tax Rate Areas Los Angeles County Tax Collector 91 CITY OF ROSEMEAD, CALIFORNIA 1.. ; SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT June 30, 1998 ' 1997-98 Assessed Valuation: $1,480,287,583 (after deducting $235,7 28,957 . redevelopment incremental valuation) Direct and Overlapping Tax and Assessment Debt: % Ap plicable Debt 6130197 Los Angeles County 0.328 % $189,666 Los Angeles County Flood Control District 0.342 158,654 e Metropolitan Water District 0.181 1,004,740 San Gabriel Valley Municipal Water District 0.016 704 Los Angeles County Regional Park and Open Space District 0.328 1,673,407 e City of Rosemead 100.000 Total Direct and Overlapping Tax and Assessment Debt: $3,027,171 Overlapping General Fund Obligation Debt: Los Angeles County General Fund Obligations 0.328 % $5,702,060 Los Angeles County Pension Obligations 0.328 7,792,730 Los Angeles County Superintendent of Schools O Certificates of Participation 0.328 15,892 Los Angeles County Flood Control District ` Certificates of Participation 0.342 674,219 Los Angeles County Sanitation District #2 Authority 0.005. 1,970 Los Angeles County Sanitation District #15 Authority 7.067 2,123,176 Los Angeles Community College District Certificates of Participation 0.287 187,153 Pasadena Area Community College Certificates of Participation 2.993 230,162 _ Montebello Unified School District Certificates of Participation 1.839. 414,051 San Gabriel Unified School District Certificates of Participation 0.908 82,548 ' El Monte Union High School District Certificates of Participation 13.861 1,045,812 El Monte School District and Certificates of Participation 0.004 182 Rosemead School District Certificates of Participation 64.614 2,978,705 San Gabriel Valley Mosquito Abatement District Certificates of Participation 3139 48,968 Total Gross Direct and Overlapping General Fund Debt: $21,297,628 B Less: Los Angeles County Certificates of Participation (100% self-supporting from leasehold revenues on properties in Marina Del Rey) 519,683 Total Net Direct and Overlapping Bonded Debt: $20,777,945 Gross Combined Total Debt $24,324,799 (1) Net Combined Total Debt $23,805,116 ' (1) Excludes tax and revenue anticipation notes, revenue, mortgage r evenue and tax allocation bonds and non-bonded capital lease obligations. Ratios to Assessed Valuations: Direct Debt 0.00 % ' Total Overlapping Tax & Assessment 0.18 % Gross Combined Total Debt 1.64 % Net Combined Total Debt 1.61 % State School Building Aid Repayable as of 6/30/98: $ 0 I Source: California Municipal Statistics, Inc 1 92 CITY OF ROSEMEAD, CALIFORNIA DEMOGRAPHIC STATISTICS Last Ten Fiscal Years Income Unemploy- Fiscal Year Population Households Per Capita ment Rate. (1) (2) ) (3) (3) 1988-89 47,707 13,841 $18,790 4.9 % 1989-90 51,156 13,870 19,906 4.7 1990-91 52,247 14,153 20,786 5.8 1991-92 52,812 14,169 20,967 8.0 1992-93 52,922 14,193 21,434 9.6 1993-94 53,798 14,190 21,661 9.7 1994-95 53,639 14,195 21,562 7.4 1995-96 54,487 14,238 23,501 7.9. 1996-97 55,128 14,254 24,945 6.9 1997-98 55,760 14,278 6.5 Source: (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. 93 0 O 60 50 40 30 20 10 0 60 50 40 30 20 10 0 DEMOGRAPHIC STATISTICS Thousands Thousands 94 1988.89 1989.90 1990.91 1991-92 1992-93 Olncome Per Capita OHouseholds OPopulation 1993-94 1994-95 1995-96 1996-97 El Income Per Capita OHouseholds C:]Populatlon CITY OF ROSEMEAD PRINCIPAL TAXPAYERS June 30, 1998 Southern California Edison Company California Federal Savings Chicago Title Insurance & Trust Diamond Square Vikon Center Quanjude Duck Lucky Plaza ABC Plaza Travelodge - South Travelodge - East Percentage of Total City's Assessed Valuation 10.44 % 1.05 0.54 0.35 0.19 0.13 0.14 0.09 0.17 0.08 13.118% 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. Assessed Valuation .$204 ,319,473. _ 20,6b0,Ob0 10, 500, 000 6, 844, 315 31800,000 2,542,950 2,700,000 1,759, 000 3,277,308 1,632,000 $257975,046 95 .a Pr'1:., P: i f''.. CITY OF ROSEMEAD, CALIFORNIA SCHEDULE OF INSURANCE IN FORCE June 30, 1998 Policy Expiration D Number Date Type of Coverage Southern California Joint Powers Insurance Authority 07/01/99 General Liability State Compensation Insurance Fund 228962-90 12/31/98 Workers Compensation Q Coverage Kelley, Jiggins, Towle & Blue 05743382 07/01/99 Public Employees ' o Blanket Bond o Kelley, Jiggins, Towle & Blue 9922993-03 10/19/99 Boiler and Machinery::. Towle & Blue Jiggins Kelley 2781100 07/01/99 Notary Public Bond: Q , , Error & Ommissioris" Kelley, Jiggins, Towle & Blue CP8119571C 07/01/99 Property Insurance a e Source: City Finance Department ' 96 CITY OF ROSEMEAD, CALIFORNIA CONSTRUCTION ACTIVITY Last Ten Fiscal Years Number of Building Permit Number of Fiscal Residential Valuations'( In Thousands) Building Year Dwelling Units Residential Nonresidential Total Permits Issued 1988-89 154 $14,707,466 $3,997,523 $18,704,989 782 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 1992-93 13 8,012,092 10,499,324 18,511,416 877 1993-94 22 10,047,264 7,651,470 17,698,734 858 1994-95 37 10,880,831 3,552,722 14,433,553 608 1995-96 42 12,267,012 2,094,550 14,361,562 652 1996-97 24 9,787,980 4,325,690 14,113,670 611 1997-98 35 7,270,943 14,133,409 21,404,352 522 97 C I CITY OF ROSEMEAD, CALIF ORNIA MISCELLANEOUS STATIS TICS . June 30, 1998 o The City of Rosemead is located in Los Angeles County, California approximately nine miles east of the City of Los Angeles. Incorporated in 1959, the City of Rosemead now encompasses a total land mass of 5.5 square miles and operates as a general law city under a Council - City Manager form of government. The Rosemead Redevelopment Agency, activated on January 4, 1972, includes 511 acres within he City's 5.5 square miles. Population 55760 Land Area Streets & Alleys 5.5 square miles 74.42 miles Parks 50 acres Percentage of Land Use: Residential 64 % Public Facilities 14 8 Commercial (stores & shops) 9 Mixed Commercial/Residential 7 Office & Light Industrial 6 Public Facilities: 100 % Community Centers 2 Swimming Pools 2 Libraries 2 Gymnasiums 1 Ball Diamonds (lighted) 4 Tennis Courts (lighted) 5 Education Facilities: Elementary Schools 10 ' Secondary Schools 3 High Schools 2 ' Fire Protection: ' Number of firefighters and officers 37 Police Protection: " Parking Control (personnel) 4 Police Protection (sworn personnel) 38 ' Major Employers and Number of Employees: Southern California Edison Company 3,300 ' Ball Corporation Crown City Plating 410 300 . ' The City of Rosemead is part of the Los Angeles County Fire Protection District which provides fire fighting, fire prevention, and plan check services for the City. The City of Rosemead contracts with the Los Angeles County Sheriffs Department for all police services with the exception of parking control which is provided by City personnel. 1 98 i 5 101 Santa Monica 10 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 55,760. , 99 I 1 1 i 1 I 1 1 I I 0 0 U I I I