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1997 CAFRI CITY OF ROSEMEAD i California ~ E M CIVIC PRIDE 1q C~RP~RATED COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 305 1997 I 1 F 1 I 1 I I I I ' CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT ' Fiscal Year Ended June 30, 1997 ' TABLE OF CONTENTS INTRODUCTORY SECTION Ea_u 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 F B l und a ances - Budget and Actual - General, Special Revenue and Debt Service Fund Types 6-8 Statement of Revenue, Expenses and Changes in Fund Balance - Pension Trust Fund 9 S tatement of Cash Flows - Pension Trust Fund 10 Notes to Financial Statements 11 - 28 Combining and Individual Funds and Account Groups Financial Statements (Supplementary Information): GENERAL FUND: Balance Sheet 31 I 1 CITY OF ROSEMEAD, CALIFORNIA , COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1997 , TABLE OF CONTENTS (cont.) ' FINANCIAL SECTION (cont.) Paae 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 S ' PECIAL REVENUE FUNDS: Combining Balance Sheet - All Special Revenue Funds 39 - 40 ' Combining Statement of Revenue, Expenditures and Changes in Fund Balances - All Special Revenue Funds 41 - 43 ' Statement of Revenue, Expenditures and Changes in Fund Balance - Traffic Safety Fund 44 Statement of Revenue, Expenditures and Changes in ' Fund Balance - State Gas Tax Fund 45 Statement of Revenue, Expenditures and Changes in ' Fund Balance - Air Quality Management District 46 Statement of Revenue, Expenditures and Changes in ' Fund Balance - Local Transportation Fund 47 Statement of Revenue, Expenditures and Changes in , Fund Balance - Public Transportation' Fund 48 1 ~ i A. t. CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE'ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1997 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) pag-e 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 49 Statement of Revenue, Expenditures and Changes in Fund Balance - 1976 Community Parklands Grant Fund 50 Statement of Revenue, Expenditures and.,Changes in Fund Balance - Street Lighting Fund 51 Statement of Revenue, Expenditure's°and Changes in Fund Balance - Narcotics Seizure Fund 52 Statement of Revenue, Expenditures and Changes in Fund Balance - Low-Moderate Income Housing Fund 53 Statement of Revenue, Expenditures and Changes in Fund Balance - Rosemead Housing Development Corporation 54 Statement of Revenue, Expenditures and Changes in Fund Balance - California Wildlife Fund 55 Statement of Revenue, Expenditures and Changes in Fund Balance - Federal Highwy Grants Fund 56 CAPITAL PROJECTS FUND: Balance Sheet - Capital Projects Fund 59 Statement of Revenue, Expenditures and Changes in Fund Balance 60 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1997 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) Paae Combining and Individual Funds and Account Groups (Supplementary Information): (cont.) CAPITAL PROJECTS FUND (cont.): Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual 61 DEBT SERVICE FUND: Balance Sheet - Debt Service Fund 63 Statement of Revenue, Expenditures and Changes in Fund Balance 64 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual 65 FIDUCIARY FUND TYPES: Combining Balance Sheet 67 Combining Statement of Changes in Assets and Liabilities - All Agency Funds 68 ACCOUNT GROUPS: Statement of General Fixed Assets 71 Statement of Changes of General'Fixed Assets 72 z L CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1997 TABLE OF CONTENTS (cont.) STATISTICAL SECTION General Governmental Expenditures by Function - All Governmental Fund Types 75- 76 General Revenues by Source - All Governmental Fund Types 77- 78 Other Tax Revenues by Source - All Governmental Fund Types 79 - 80 Assessed Valuations of Taxable Property 81 - 82 Special Assessment Levies and Collections - Lighting and Maintenance District 83 Computation of Legal Debt Margin 84 Ratio of Annual Debt Service Expenditure for Total Bonded Debt to Total General Expenditures 85 - 86 Ratio of Annual Debt Service Expenditure for Total Bonded Debt to Assessed Valuation 87 Ratio of Annual Debt Service Expenditure for Total Bonded Debt Per Capita 88 Property Tax Rates - All Overlapping Governments 89 Schedule of Direct and Overlapping Bonded Debt 90 Demographic Statistics 91 - 92 Principal Taxpayers 93 Schedule of Insurance in Force 94 Construction Activity 95 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1997 TABLE OF CONTENTS (cont.) STATISTICAL SECTION (cont.) Miscellaneous Statistics P 96 Vicinity Map 97 B 0 Q t N T R O D U C T O N MAYOR: JAYT IMPERIAL MAYOR PRO TEM: ROBERT W. BRUESCH COUNCILMEMBERS: U MARGARETCLARN GARY A. TAYLOR JOE VASOUEZ a D December 4, 1997 I Pos,,emcad 8838 E. VALLEY BOULEVARD • P.O. BOX 399 ROSEMEAD, CALIFORNIA 91770 TELEPHONE (818) 288-6671 TELECOPIER 8183079218 The Honorable Mayor and Members of the Rosemead City Council Councilmembers: Submitted for your information and consideration is the Annual Financial Report for the fiscal year ended June 30, 1997. 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. I 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 t Mayor and a Mayor Pro-Tem each year from its membership. The Council is responsible for enacting local legislation, establishing general policy for the City and adopting annual budgets. The Council's duties include the appointments of a City Manager, City Attorney, City Clerk, City Treasurer, and the selection of citizens to serve on the City's Planning Commission and Traffic Commission. The ' City Council also acts as the Redevelopment Agency and Rosemead Housing Development Corporation Board, and oversees the responsibility for the operation and accountability of the Redevelopment Agency, Building Rehabilitation Appeals, and the Rosemead Housing Development Corporation. The City of Rosemead has a population of 55,128 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 1996-97 Administration: As noted last year, twenty-one (21) of the City's full-time employees voted to form a formal collective bargaining unit represented by the Service Employees International Union, Local 347. Since that time, negotiations between the City and the represented employees have occurred regularly. Many significant differences remain before finalization of a Memorandum of Understanding (MOU) between the City and the bargaining unit. The financial impact of the negotiations will not be known until a successful resolution of the differences that now exist. Additionally, the City received some good news during the past fiscal year in that the State Legislature was not forced to look toward local government revenues when balancing the State budget. In fact, the Legislature actually returned to cities a significant portion of fines and forfeitures revenues lost originally in Fiscal Year 1990- 91. Specifically, cities will receive a larger portion of the base fines paid by persons issued moving violations by local law enforcement, as well as 50% of the fees paid by persons choosing to attend traffic school. It is estimated that the City of Rosemead will receive additional General Fund revenues totaling $150,000 annually as a result of the new legislation. The legislation goes into effect July 1, 1998. Engineering: The City completed several capital improvement projects during the fiscal year. The City completed two (2) separate contracts for street resurfacing and street lighting improvements. Combined, a total of twenty-four (24) street segments were resurfaced. In addition, the street lighting systems were upgraded where necessary. The projects were funded through a combination of Gas Tax, Proposition "C", Community Development Block Grant (CDBG), and Redevelopment Agency funds. ii I Eighteen (18) street segments were included in the annual slurry seal project. The slurry seal application is utilized to prolong the useful life of a street by approximately seven years. I I i i 1 i 1 1 1 1 I Two (2) traffic signal modification projects were completed, one at Marshall Street and Rosemead Boulevard, and one at Marshall Street and Walnut Grove Avenue. Both projects will provide additional protected left-turn phasing. Additionally, to improve traffic and pedestrian safety, two (2) new traffic signals were installed, one at Mission Avenue and Encinita Avenue, and one at New Avenue and Newmark Avenue. In addition, several multi-year projects are in various phases of design. The projects include the beautification and undergrounding of the utility services on San Gabriel Boulevard, Walnut Grove, and Del Mar Avenue. The City is also continuing to work on the Valley Boulevard Improvement Project as well as the Highcliff Street and Lorica Street widening projects. These projects will be under construction during the Fiscal Year 1997-98. Planning: During the past year, majority of the construction projects have been residential. However, commercial and industrial activity has been increasing. Several industrial warehouses were completed, each valued at approximately $550,000. A new Burger King Restaurant and a Polio Loco Restaurant were completed on Garvey Avenue, both valued at $250,000 approximately. One office building, approximately $432,000, on Rosemead Boulevard close to completion. The Rosemead-El Monte School District's new Adult School on Rosemead Boulevard is now open and operational. Additionally, the Rosemead Elementary School District is looking at sites in Rosemead to build their new administrative offices. A 31-unit single family development has broken ground at Del Mar and Graves Avenue. A 11-unit residential planned development on Hellman Avenue is completed. Other residential projects were generally two (2) to four (4) lot subdivisions and residential additions. Parks and Recreation: The City completed various park and recreation improvements during the fiscal year. Rosemead Community Recreation Center improvements included termite control and replacement of a floor machine. Rosemead Pool included a purchase of a new surge tank clay valve. Rosemead Park improvements included the completion of the play area and picnic shelters. Garvey Park Improvements included a purchase of a large capacity ride-on mower. Sally Tanner Park Improvements included remodeling the interior restrooms. iii PROSPECTS FOR THE FUTURE While the City is continuing in its successful efforts to reduce reliance on General Fund revenues, it appears that the current economy in the area and the region will result in a flat revenue base over;the long term. Asia result, it will become necessary to examine economic developrtient opportunities when they present themselves. Though the sales tax base is stable and'the City has received some "good" news from Sacramento over the past year with respect to the State's overall economic health, it appears that the sales tax base will become increasingly unreliable during he next decade. Particular areas of concern include bankruptcy proceedings announced recently by Montgomery Wards and the softening retail economy in general. The City is continuing with the development of the 20,000 square foot 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 county wide recreational facilities bond measure (Proposition A) approved by the voters on November 5, 1996. The Rosemead City Council, acting as the Rosemead Housing Development Corporation Board,'has retained an architect for the project, and design of the recreation center is now underway. The senior housing units will be constructed adjacent to the recreation center and will be phased-in over the next three to five years. Specific projects include the use of Air Quality Management District funds to finance installation of left-turn phasing at the intersection of Mission Drive and Rosemead Boulevard. The Highcliff Street and Lorica Street reconstruction projects will commence in Fiscal Year 1997-98. The project includes widening the street to City standards of 36 feet from curb to curb. New sidewalks, street trees and installation of'street lights. The . 11 City will utilize CDBG and Redevelopment funds for these projects. Storm drain improvements in San Gabriel Boulevard are proposed to be completed in Fiscal Year 1997-98. The project will extend the existing storm drain system further south to address a pending problem at the intersections of San Gabriel Boulevard and Fern Avenue and at Garvalia Avenue. Additionally, construction is anticipated to begin in late 1998 on storm drains improvement in Delta and Kelburn Avenues. To mitigate deficiencies in a part of the City's sewer system, design will begin in 1997-98 in preparation for construction of a relief sewer mainline in Del Mar Avenue. In the City's continuing efforts to provide a sufficient street system for the public, additional projects to resurface various streets throughout the City will be completed as identified by the City's Pavement Management System. iv Yt Majority of the developments in.the..planning stages are from mini-malls. However, the owners of Rosemead Square'aIre 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 regarding potential commercial development of various right-of-way sites. Rosemead Community Recreation Center future improvements includes re- upholstering the lobby furniture, improving cabinets in the pre-school room, and replacing seniors pool table. Rosemead Park improvements includes pre-fabricated restrooms to replace existing facilities and improving cabinets in the pre-school room. Rosemead Pool projects includes purchase of a new electrical panels. Garvey Park improvements includes a purchase of play equipments and installation of wind screens for five (5) tennis courts. Garvey Pool improvements includes re- tiling, sand and depth markers, recaulking interior pool, and re-tiling shower rooms. Zapopan Center improvements includes purchase of a new refrigerator and a bingo board, revamping the kitchen cabinets, and improving shelves and cabinets in the pre- school room. r. REPORTING ENTITY AND ITS SERVICES The reporting entity is comprised of all funds a`nd account groups of the City of Rosemead, Rosemead Redevelopment Agency, and Rosemead Housing Development Corporation. ' The Rosemead Redevelopment Agency finances streets, parks, and utility improvements within the Redevelopment project area as well as in some selected, areas outside the project area which benefit the project area. The Rosemead Housing Development Corporation provides for conservation and financing of Low and Moderate Income Housing within the City limits. The City of Rosemead provides a broad range of services to its citizens including general government, public safety, street construction and maintenance, sanitation, building safety, parks and ' recreational facilities, and cultural services. . Some of the functions typically provided by municipal government are, as in the City ' of Rosemead, provided by special districts. These districts, which usually encompass an area larger than the City itself, include the Consolidated Fire Protection District of Los Angeles County, the Los Angeles County Library District, 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. 1 V 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 the American Institute of Certified Public ' Accountants, and the full financial disclosure guidelines of the Governmental Finance Officers Association of the United States and Canada. FINANCIAL STATEMENT The City requires that its financial statements be audited by a Certified Public Accountant selected by the City Council. This requirement has been,satisfied, and ' the Auditor's opinion is included in the financial section of this report. In addition, the City is required to undergo an annual single audit in conformity with ' the provisions of the Single Audit Act and U.S. Office of Management and Budget Circular A-133, "Audits of States, Local Governments and Non-profit organizations." This requirement has also been satisfied and there were no material exceptions noted in the report. The Comprehensive Annual Report is divided into the following three sections: ' 1. Introductory Section - which includes this transmittal letter, the City's Organization Chart, and a list of the principal officials. 2. Financial Section - which includes the auditor's opinion, general purpose financial statements, and the combining and individual fund and account group financial statements. 3. Statistical Section - which includes relevant financial and non-financial data ' .presenting historical trends and other information about the City. NOTES TO THE FINANCIAL STATEMENTS Th e Notes to the Financial Statements, which are part of the General Purpose Financial Statements within the Financial Section, are an integral part of the financial report and are essential to the fair presentation and adequate disclosure of the financial position of the City, Redevelopment Agency, and the Rosemead Housing Development Corporation. The note's 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. ' Vi I 0 I I I 0 I I 1 I The fiscal operations of the City. are primarily accounted for in the Governmental ' Funds which include the General, Special Revenue, Debt Service and Capital Project Funds ' The 1996-97 Fiscal Year revenues for the Governmental Fund types totaled $18,900,460. Presented above are the revenues by major source, which includes the ' percentage each source represents of the total revenues and the increase (decrease) from the prior year. ' The most notable change in revenues is the increase shown in Intergovernmental revenues, which is the result of CDBG funds and Community Oriented Policing Services grant funds. The most notable decrease in revenues is the Use of Money ' and Property. The decrease in revenues is primarily due to less Capital Project Funds available to invest. The 1996-97 Fiscal Year expenditures for the Governmental Fund -types totaled $16,811,389. Listed on the adjacent page is a recapitulation of these expenditures ' by major function. The chart reflects expenditures by function as a percentage to the total expenditures and the incremental change from the prior fiscal year. ' The most significant increase in expenditures for 1996-97 over 1995-96 is reflected in Public Recreation function. Majority of the increase is due to completion of the I vii 1 play area and picnic shelters at Rosemead Park. The most notable expenditure decrease is the Public Works function, which primarily is due to completion of street improvement projects during Fiscal 'Year 1995-96. GENERAL FUND ,f The City of Rosemead remains in a strong financial position as of June 30, 1997 with a surplus of approximately ten million dollars (s 10.'0 million). There were no residual equity transfers from any funds during the fiscal year. However, prior years total residual equity transfers from the Street Lighting Fund were approximately seven hundred seventy-five thousand ($775,000). t GENERAL FIXED ASSETS As of June 30, 1997, the general fixed assets of the City totaled thirteen million two hundred fifty-six thousand one hundred thirty-one dollars ($13,256,131). This amount represents the original cost of the assets, net of additions and deductions from July 1, 1996 to June 30, 1997, and is considerably less than their present value. The system of accounting presently recommended by the Governmental Accounting Standards Board does not allow for the recording of depreciation of general fixed assets as an expense of governmental funds viii O 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: ~I 1. Assets have been protected from losses arising from unauthorized use or disposition. 2. Financial records can be relied upon for preparing adequate financial statements and maintaining accountability for assets. All internal control evaluations occur according to the above criteria. We believe that the City's controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. 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. I The City Manager is authorized to transfer budgeted amounts between funds within ix 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. I 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 exceed 3.75% of the total assessed valuation of all real and personal property within the city. The City of Rosemead presently has no bonded indebtedness. The Rosemead Redevelopment Agency issued $34,275,000 Tax Allocation Bonds (Series A) and $2,435,000 Taxable Tax Allocation Refunding Bonds (Series B) in November 1993 to finance public improvements within the Redevelopment Agency's project area and a portion of the bond proceeds were used to defease the 1991 Tax Allocation Bonds and the 1987 Tax Allocation Notes. The 1993 Bonds (Series A and B) interest payments are due semi-annually on October 1 and April 1, and principal payments due annually on October 1. In October 1991, the Agency funded its Low-Moderate Income Housing Set Aside fund with $6,813,850 from the proceeds of the 1987 Tax Allocation Notes. The Agency prefunded the Low-Moderate Housing Income Set-Aside Fund to satisfy the set-aside requirement for fiscal years 1996-97 through 2021-23, approximately $451,187 per year. GANN LIMIT In 1979, Proposition 4, the "Gann" initiative, was passed. This measure was intended to control government spending by establishing a spending limit which is calculated from the base year 1978-79 and adjusted annually by the Consumer Price Index and population changes. This limitation applies only to appropriations subject to the limitation as defined under Article XIIIB of the California Constitution. We are pleased to inform you that the City is in the enviable position of being well within 35% of the calculated appropriation limit at June 30, 1997. The x I I I I 1 I I I I I I I I I I City's 1997-98 estimated revenues and budgeted expenditures indicate that by June 30, 1998 the City will be approximately 36% of the limit. I 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, 1996. 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 eight (8) 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, 1996. 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 ' 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. I 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 CITY OF ROSEMEAD, CALIFORNIA CITY OFFICIALS June 30, 1997 ELECTED OFFICIALS: City Council: Jay T. Imperial Mayor 1 Robert W. Bruesch Margaret F. Clark Mayor Pro Tern Councilwoman Gary A. Taylor Councilman ' Joe Vasquez ....Councilman ' APPOINTED OFFICIALS: Planning Commissioners: ' Duc Loi Chairman Rudolfo Ruiz Vice Chairman ' William Alarcon Commissioner Robert Breen Commissioner Merced "Bill" Ortiz Commissioner Traffic Commissioners: ' Victor Ruiz Chairman Daniel Time Vice Chairman ' Carmine Baffo ....Commissioner Holly Knapp Commissioner Edward Quintanilla Commissioner ' Frank G.Tdpepi City Manager ' Hubert E. Foutz City Treasurer Robert L. Kress City Attorney ' Nancy Valderrama City Clerk 1 xiii o ~ a a w x ~ U w J N a O Z ¢ O LL O Q } N F- 2 U a C7 O xiv I 1 i I l y~ 1 E ~ I U , --J 9 9 ~ 0 1 _ a y y 9 1 1_ q F I CST` d 3~ w~ 1 v ~ W I .N V c C V cet Q,~ ~ n r CC VU C y ` ~ 1 c; a1 y o ~ 7. - 1 V N e a I • N 1 . ~I ~ 'N d ° ' yam{ I i v` bap • N ~ v w • L" Y a ; v I 1 .5 C I d U 42 R ~ 1 xV i I Certificate of Achievement for Excellence in Financial Reporting Presented to City of Rosemead, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1996 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. \a Ofy~ x ON MATES i rt~o aNO'. . . f GNAOA ~ b OWOUMN s President SEAL ~J Ulf// ~UExecutive Direet'~oAr^•'t'/_Lt 1 1 i i i 1 1 1 i 1 1 1 xvi 1 t t t k=fR~~ 1 F N A N C A McGLADREY&PULLEN,LLP Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT I To the Honorable Mayor and Members of the City Council City of Rosemead Rosemead, California RSM international We have audited the accompanying general purpose financial statements of the City of Rosemead, California, as of and for the year ended June 30, 1997. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. ' We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation:%'We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Rosemead, California, as of June 30, 1997, 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. 1 In accordance with Government Auditing Standards, we have also issued a report dated September 30, 1997 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. 1 1 1 1 1 Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund and account group 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. Pasadena, California September 30, 1997 Suite 300 140 South Lake Avenue Pasadena, California 91101-2651 (626) 795-7950 FAX (626) 795-9820 i ,~k Worldwide Services Through RSM International I 1 1 1 1 i THIS PAGE INTENTIONALLY LEFT BLANK 1 1 i 1 1 1 1 1 i 1` e e 1 CITY OF ROSEMEAD, CALIFORNIA GENERAL. PURPOSE FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1997 CITY OF ROSEMEAD, CALIFORNIA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1997 Governmental Fund Special Debt Capital Assets and Other Debits General Revenue Service Projects Assets Cash and investments $ 10,207,644 $ 6,119,855 S 2,344,420 S 18,687,263 Receivables 1,220,124 421,198 11,193 549,233 Due from other funds 29,736 - - 1,634 Property and equipment _ Prepaid expenses 920 Other Debits Amount available in debt service fund _ Amount to be provided for retirement of general long-term debt - Total assets and other debits $ 11,458,424 $ 6.541,053 $ 2,355,613 $ 19,238,130 Liabilities, Municipal Equity and Other Credits Liabilities Accounts payable and accrued liabilities $ 1,451,976 S 424,111 $ - $ 198,766 Arbitrage rebate payable _ _ _ Due to other funds 31 1,370 Deferred revenue - 246,682 - Refundable deposits _ _ Deferred compensation _ _ _ _ Tax allocation notes and bonds _ Accrued vacation pay and compensatory time 7,703 - - Accrued litigation settlement _ Total liabilities 1,459,679 702,163 - 198,766 Municipal Equity and Other Credits Investment in general fixed assets - - _ _ Fund balance: Reserved: Long-term receivable 717,796 Debt service - - '),355,613 Low-moderate income housing - 4,251,917 Employees retirement _ _ _ _ Unreserved: Designated for: Capital projects - 19,039,364 Building and equipment replacement 1,720,000 _ Litigation settlements 1,000,000 Self-insurance 300,000 Contingencies 3,000,000 Undesignated 3,260,949 1,586,973 Total municipal equity and other credits 9,998,745, 5,838,890 2,355,613 19,039,364 Total liabilities, municipal equity and j other credits S 11,458,424 $ 6,541 053 $ 2,355,613 $ M238,130 See Notes to Financial Statements. 2 Fiduciary Fund Types Account Groups Total (Memorandum Only) ' General Trust and General Long-term Agency Fixed Assets Debt 1997 1996 $ 825,592 $ _ $ _ $ 38,184,774 $ 35,744,155 2,201,748 2,692,497 31,370 769,465 ' 13,256,131 13,256,131 13,074,309 920 ' _ - 2,355,613 2,355,613 2,355,343 33,923,171 33,923,171 34,217,633 $ 825,592 $ 13,256,131 $ 36,278,784 $ 89,953,727 $ 88,853,402 ' $ _ $ _ $ $ 2,074,853 $ 1,928,939 180,000 31,370 769,465 246,682 244,663 95,568 95,568 86,228 517,848 517,848 625,630 - 35,905,000 35,905,000 36,185,000 297,011 304,714 277,195 76,773 76,773 112,347 613,416 36,278,784 39,252,808 40,409,467 - 13,256,131 - 13,256,131 13,074,309 ' e - - - 717,796 687,269 2,355,613 2,355,343 - 4,251,917 3,967,172 212,176 212,176 226,085 - 19,039,364 19,008,754 1,720,000 1,720,000 - 1,000,000 750,000 _ 300,000 280,000 3,000,000 2,680,000 - 4,847,922 3,695,003 212,176 13,256,131 - 50,700,919 48,443.935 i $ 825,592 $ 13,256,131 $ 36,278,784 $ 89,953,727 $ 88,853,402 1 3 CITY OF ROSEMEAD, CALIFORNIA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year Ended June 30, 1997 Governmental Fund Revenue Property taxes and special assessments Other taxes Licenses and permits Intergovernmental Charges for services Fines, forfeitures and penalties Use of money and property Other Expenditures Current: General government Public safety Public works Public health Public recreation Community service Capital outlay Debt service: Principal Interest Arbitrage rebate expenditure Revenue over (under) expenditures Other Financing Sources (Uses) Operating transfers: From other funds (To) other funds Revenue and other financing sources over (under) expenditures and other financing (uses) Fund Balance, beginning Fund Balance, ending See Notes to Financial Statements. Special Debt Capital -General Revenue Service Projects $ $ 382,609 $ $ 2,845,775 3,952,511 - - 760,037 - 3,860,776 3,672,184 576,033 8,000 276,281 87,657 _ 568,410 422,877 135,601 1,288,447 30,921 3,398 - 28,943 10,024,969 4,576,725 135,601 4,163,165 1,812,609 190,748 - 50,250 4,561,894 360,303 - _ 47,007 2,543,754 - 758,811 45,966 - _ - 2,144,066 - _ 1,014,080 962,885 - 47,683 - _ 280,000 1,991,333 ' 9.673,305 4,057,690 2,271,333 809,061 351,664 519,035 (2,135,732) 3,354,104 1,097,300 443,439 2,136,002 , (53,247) (300,000) - (3,323 494) 1,044,053 143,439 2,136,002 (3,323,494) , 1,395,717 662,474 270 30,610 8,603,028 5,176,416 2,355,343 19,008,754 S 9,998,745 S 5,838,890 S 2,355,613 S 19,039,364 4 I , Total (Mem orandum Only) 1 1997 1996 S 3,228,384 S 3,037,093 3,952,511 3,664,031 760,037 760,191 ' 7,532,960 584,033 6,155,519 539,055 363,938 365,400 2,415,335 2,667,346 63,262 138,159 18,900,460 17,326,794 0 2,053,607 1,946,848 4,922,197 4,733,426 Q 3,349,572 3,788,669 45,966 44,863 2,144,066 1,869,684 1,976,965 1,867,352 O 47,683 119,184 280,000 1,991,333 265,000 2,006,154 180,000 16,811,389 16, 821,180 2,089,071 505,614 0 3 ,676,741 3,516,417 (3,676,741) (1516,417) e - - 2,089,071 505,614 0 35,143,541 34,637,927 0 S 37,232,612 S 35,143,541 O e 0 5 ~1 CITY OF ROSEMEAD, CALIFORNIA i 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, 1997 , Revenue Budget General Actual Over (Under) Budget Special Revenue Budget Actual ' Property taxes and special assessments $ - $ - S $ 360,000 $ 382 609 Other taxes 3,884,050 3,952,511 68,461 , ' Licenses and permits 738,100 760,037 21,937 Intergovernmental 3,338,900 3,860,776 521,876 5,554,680 3,672,184 Charges for services 554,035 576,033 21,998 8,000 8000 , Fines, forfeitures and penalties 281,500 276,281 (5,219) 60,000 87, 657 Use of money and property 365,200 568,410 203,210 288 300 , 422 877 Other 71,750 30,921 (40,829) , 5,300 , 3,398 Expenditures 9,233,535 10,024,969 791,434 6,276,280 4,576,725 Current: General government 2 092 700 1 812 60 ' , , , , 9 (280,091) 620,800 190 748 Public safety 4,689,299 4,561,894 (127,405) 359,350 , 360 303 Public works Public health 96,640 47,007 (49,633) 5,155,410 , 2,543,754 48,000 45,966 (2,034) _ , Public recreation 2,181,990 2,144,066 (37,924) Community service 1,072,100 1,014,080 (58,020) 1,138,720 962 885 Appropriations reserves 17,611 - (17,611) , Capital outlay 4,500 47,683 43,183 Debt service: Principal Interest _ ' - 10,202,840 9,673,305 (529,535) 7,274,280 4,057,690 Revenue over (under) expenditures (969305) 351,664 1,320,969 (998,000) 519,035 ' Other Financing Sources (Uses) . Operating transfers: , From other funds 1,097,300 1,097,300 - 701,420 443 439 (To) other funds (91,420) (537247) 38,173 (760,000) , (300,000) 1,005,880 1,044,053 38,173 (58 580) 143,439 , Revenue and other financing sources over (under) expendi- tures and other financing (uses) S 36,575 Fund Balance, beginning Fund Balance, ending See Notes to Financial Statements. 1,395,717 S 1359,142 S (1,056,580) 8,603,028 S 9,998.745 1 6 662,474 , 5,176,416 $ 5,838,890 O Special e Revenue Over (Under) Debt Service Budget Budget Actual $ 22,609 $ $ 1 (1,882,496) 27,657 134,577 130,000 135,601 (1,902) - - (1,699,555) 130,000 135,601 (430,052) - 953 (2,611,656) (175,835) _ 280,000 280,000 1,998,613 1991 1,333 (3,216,590) 2,278,613 2 271 333 aµ. muer) Over (Under) get Budget Actual Budget $ 3,300,000 $ 2,845,775 $ (454,225) 5,601 441,571 1,288,447 846,876 49,900 50,250 350 7,028,200 758,811 (6,269,389) 2,500 (2,500) (7,280) (7 280) 7 080 600 809,061 (6,271,539) 15,517,035 (2,148,613) (2,135,732) 12,881 (3,339,029) 3,354,104 6,693,133 ' (257,981) 2,278,613 2,136,002 (142,611) 460,000 - - (3,225,913) (3,323,494) (97 581) 202,019 2,278,613 2.136-002 na~All o o<nio , 1,719,054 $ 130,000 270 S (129,730) S (6,564,942) 30,610 $ 6,595,552 ' 2,355,343 19,008,754 $ 2,355,613 $ 19,039,364 1 7 CITY OF ROSEMEAD, CALIFORNIA Il COM13INED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- GENERAL, SPECIAL REVENUE, DEBT SERVICE AND CAPITAL PROJECT FUNDS, CONTINUED 1 June 30, 1997 Total (Memorandum Only) Over (Under) ' Revenue Budget Actual Budget Property taxes and special assessments S 3,660,000 $ 3,228,384 $ (431 616) Othertaxes 3,884,050 31952,511 , 68 461 Licenses and permits 738,100 760,037 , 21 937 Intergovernmental 8,893,580 7,532,960 , (1,360,620) Charges for services 562,035 584,033 21 998 Fines, forfeitures and penalties 341,500 363,938 , 22 438 Use of money and property 1,225,071 2,415,33 5 , 1 190 264 Other 77,050 63,262 , , (13,788) Expenditures 19,381,386 18,900,460 (480,926) Current: General government 2,763,400 2,053,607 (709,793) Public safety 5,048,649 4,922,197 (126 452) Public works 12,280,250 3.349,572 , (8,930 678) Public health 48,000 45,966 , (2 034) Public recreation 2,181,990 2,144,066 , (37,924) Community service 2,210,820 1,976,965 (233,855) Appropriations reserves 17,611 - (17 611) Capital outlay 7,000 47,683 , 40 683 Debt service: , Principal 280,000 280,000 - Interest 1,998,613 1,991,333 (7,280) 26,836.333 16,811,389 (10,024,944) Revenue over (under) expenditures (7,454,947) 2,089,071 9,544,018 Other Financing Sources (Uses) Operating transfers: From other funds 4,077333 3,676,741 (400,592) (To) other funds (47077,333) (3,676,741) 400,592 Revenue and other financing sources over (under) expendi- tures and other financing (uses) S (7,454,947) 2,089,071 S 9,544,018 Fund Balance, beginning Residual Equity Transfer 357143,541 Fund Balance, ending S 37 232,612 See Notes to Financial Statements. 1 11 1 8 I 1 ' CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCE - Year Ended June 30, 1997 xt PENSION TRUST FUND Operating revenue, interest and other investment income $ 10,469 Operating expenses: Administrative fees 3,659 Pension benefits 20,719 ' 24,378 Net (loss) (13,909) ' Fund b alance, beginning 226,085 Fund balance, ending $ '212,176- See Notes to Financial Statements. 9 CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF CASH FLOWS - PENSION TRUST FUND Year Ended June 30, 1997 Cash Flows from Operating Activities Net (loss) $ (13,909) Adjustments to reconcile net (loss) to net cash (used in) operating activities: Administrative expenses payable 3,659 Unrealized interest and investment income (10,469) Net cash (used in) operating activities (20,719) Cash Flows Provided by Investing Activities Proceeds from the sale and maturity of annuity contracts Net increase in cash and cash equivalents Cash, beginning Cash, ending See Notes to Financial Statements. 20,719 10 I 1 1 1 1 1 1 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 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 the government's operations and are controlled, by common governing boards; therefore, data from these units are 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. 1 I 11 1 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STA Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Sigrrifcmrt 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 aself-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 consisient 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. . I The government has the following fund types and account groups: Governmental Funds are used to account for the general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenue is recognized when susceptible to accrual (i.e., when they are measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The government considers all revenue available if it is collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest onlgeneral long-term debt, which is recognized when due, and certain compensated absences and claims a d judgments, which are recognized when the obligations are expected to be liquidated with expendable'awailable financial resources. i In determining when to recognize intergovernmental revenue (grants, subsidies and shared revenue), the legal and contractual requirements of the individual programs are used as guidance. There are, however, essentially two bases for this revenue recognition's 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. ,i Expenditures are recorded when the liability is incurred, except for interest on long-term debt and sick pay, which are recorded when paid. Vacation pay is recorded as an expenditure in the year it is earned, to the extent it is paid in that year or within: 90 days after year end; otherwise, it is recorded as an expenditure when it is paid. Estimated losses on'insurance claims are charged to expense in the period the loss is determinable. i I I I 1 12 I 14 e~ CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS ' Note 1. Reporting Entity, Nature of Operations, Description of Funds acrd Account Groups, and Significant Accounting Policies, Continued ' The Agency finds 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 e assessments, expendable trusts and major capital projects) that are legally restricted, to expenditures for specified purposes. The Special Revenue Funds and their, purposes are as follows: The Traffic Safety Fund_ accounts for the receipt of.vehicle code':fines.which are expended for traffic safety enforcement. ' The State Gas Tax Fund accounts for funds, collectedfrom'the State of California which are used-for street construction, street maintenance, engineering and administrative costs. The Air Quality'Management District Fund accounts for the City's share of automobile registration fees collected from the State by the South Coast Air Quality Management District. The funds are used in improving transportation systems and to reduce reliance on private vehicles.. . The Local Transportation' Fund accounts for State grants used to finance the construction' of- ' bikeways and sidewalks. a 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. 1 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.Rosemead Redevelopment Agency. Fiduciary Fund Types ' Fiduciary Funds account for assets held by the government in a trustee capacity or as an agent on behalf of others. Trust funds account for assets held by the government under the terms of a formal trust agreement. The City's Fiduciary Fund Types are as follows: The Pension Trust Fund, a nonexpendable trust fund, accounts for the activity of the retirement plan , for employees of the City using the accrual basis of accounting. The Agency Funds account 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 and deferred compensation plans for qualified employees. The Agency funds are custodial in nature and do not present results of operations or have a measurement focus. Agency funds are refundable , deposits and deferred compensation. Account Groups ' The General Fixed Assets Account Group is used to account for the City's fixed assets. i ' 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. I i 14 ' U 0 0 0 I 0 0 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 following is a summary of significant accounting policies: Cash investments and other investments The City pools cash and investment resources of some of its funds in order to facilitate the management of cash. Cash applicable to a particular fund is readily identifiable. The balance in the pooled cash accounts is available to meet current operating requirements. All investments are stated at cost or amortized cost except those of the Deferred Compensation Plan and Pension Trust Fund, which are stated at market value. Investment earnings are allocated based on the source of funds. Receivables Property taxes attach as an enforceable lien on property as of March 1. Taxes are levied on July I and are payable in two installments on December 10 and April 10. The County of Los Angeles bills and collects the property taxes and remits them to the City in installments during the year. Property taxes a 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 All property and equipment of the City are accounted for in the general fixed assets account group. O Public domain (infrastructure) general fixed assets, consisting of certain improvements other than buildings, such as roads, sidewalks and bridges, are not capitalized. Property and equipment acquired or constructed for general governmental operations are recorded as expenditures in the fund making the O expenditure and capitalized in the general fixed assets account group. All general fixed assets which were purchased or constructed are stated at cost. Assets acquired by gift O or bequest are recorded at their fair market value at the date of transfer. No depreciation is recorded on general fixed assets. O Fund balances The reserved portion of the fund balances represents that amount which has been legally identified for the specific purpose or it represents that amount which is not available to liquidate current liabilities. O The unreserved portion represents the amount available for budgeting future operations. 0 11 01 1 15 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS t Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant Accounting Policies, Continued Vacation pay and compensatory time ' City employees accumulate vacation hours which may be paid upon termination death or retirement , . Employees can accumulate up to three we of'accrued vacation per year depending on the length of t employment. Employees can accumulate up to 1,60 hours of sick leave. Any hours in excess of 160 are considered to be vested and are paid to the employee based on a vesting schedule. In addition , employees can accrue compensatory time. , The vested portion of vacation and sick leave by employees at June 30, 1997 that is expected to be paid within 90 days after year end is included in accrued liabilities in the General Fund. The amount not ' expected to be paid within 90 days is included in the General Long-term Debt Account Group. "Memorandum Only "total columns ' Included on the combined financial statements are total columns captioned "Memorandum Only" to indicate that they are presented only for informational purposes. Adjustments to eliminate interfund , transactions have not been recorded in arriving at such amounts and the memorandum totals are not intended to fairly present the financial position or results of operations of the reporting entity taken as a whole. Additionally, the 1996 totals presented in the "Memorandum Only" columns are included to provide a summarized comparison with comparable 1997 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. Certain revenue for the year ended June 30, 1996 has been reclassified, with no effect on net revenue over expenditures, to be consistent with the classifications adopted for the fiscal year ended June 30, 1997. Note 2. Budget Matters I The annual budget adopted by the City Council provides for the general operation of the City. It includes ' proposed expenditures and estimated revenue for all governmental fund types. Budgets presented in this report for comparison to actual amounts are presented in accordance with ' generally accepted accounting principles. Reported budget amounts represent the original adopted budget as amended. The City Manager is authorized to make transfers of appropriations within a department. Transfers of ' appropriations between departments require the approval of the governing council. The legal level of budgetary control is the department level. The governing council made several supplemental budgetary ' appropriations throughout the year, none considered to be material. In all funds, unexpended budgeted amounts lapse at the end of the budget year. 16 i ' CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS ' Note 3. Cash and Investments The components of cash and investments at June 30, 1997 are as follows: ' Cash in bank $ 2,323,768 Time certificates. of deposit 2,961,784 Cash subtotal 5,285,552 Other investments 4,313,873 Cash with fiscal agent 2,344,420 Guaranteed investment contracts 11,009,930 Investment in State Treasury's Investment Pool 14,500,975 Investment in annuity contracts 730,024 Investments subtotal 32,899,222 Cash and investments total $ 38,184,774 Cash At year end, the ca " crying amount of the City's and Agency's deposits (i.e., cash in bank and time certificates of deposit) was $5,285,552 and the bank balance was $5,393,285. Of the $5,393,285 bank balance, $611,819 was covered by federal depository insurance, and $4,781,466 was uninsured and ' uncollateral ized. In accordance with State statutes, the 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 associations to collateralize governmental entities' deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 1 10% of a t City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a collateral value of 150% of an Agency'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 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. Investments ! State statutes authorize the City to invest any available funds in securities issued or guaranteed by the United States Treasury or agencies of the United States, bank certificates of deposit, bankers ' acceptances, negotiable certificates of deposit, the State Treasurer's Investment Pool, repurchase agreements, commercial paper and bonds, registered warrants or treasury notes of the State of California and its local agencies. ' 17 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 3. Cash and ILtvestments, Continued Investments include cash with fiscal agent for $2,344,420, which is invested in a guaranteed investment contract which accrues interest monthly at an interest rate of 5.8%, maturing October 1, 2013. Investments in annuity contracts included $212,176 and $517,848 invested in the Pension Trust Fund and Deferred Compensation Plan, respectively. These investments were carried at market value. Investments also included $11,009,930 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 1, 1999. 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 Carrying Investment Type 1 2 Market 3 Amount U.S.eovemment and Value government agency securities $ $ S 2,464,268 S 2,464,268 S 2,511 910 State and municipal bonds 657,570 657,570 , 679 691 Commercial paper and , bonds 1,192,035. 1,192,035 1,104,390 ' S $ $ 4,313,873 4,313,873 4,295,991 Cash with fiscal agent 2,344,420 2 344,420 , Guaranteed Investment , Contracts 11,009,930 11 332 740 Investment in State Treasurer's Investment , , Pool 14,500,975 Investment in annuity . 14,500,975 contracts 730,024 730,024 ' Total other investments S 32,899,222 S 33,204,150 The three preceding risk description categories are defined as follows: Category Description i I . Investments that are insured, registered or for which the securities are held by t he City or its agent in the City's name. 2 Uninsured and unregistered investments for which the securities are held by cou nter- party's trust department (if a bank) or agent, in Ifie City's name. ' 3 Uninsured and unregistered investments for which the securities are held by cou nter- party's Trust Department (if a bank) or agent, but not in the City's name. 18 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS I Note 4. Receivables I Receivables as of June 30, 1997 consist of the following: u 1 Property tax increment $ Accrued interest Due from local utility companies (A) Due from other governmental agencies Transient occupancy tax Other Special General Revenue Debt Service 142,734 40,694 11,193 631,399 - _ 171,097 380,504 200,452 - Capital Projects Total 232,540 $ 232,540 316,693 511,314 - 631,399 551,601 200,452 74,442 ' $ 1,220,124 $ 421,198 $ 11,193 $ 549,233 $ 2,20] 748 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 into collect this receivable from the utility company in 40 annual installments of $12,345, with the final installment due June 30, 2027. ' 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 June 30, 1992. The Agency then contributed the receivables to the City. The City is to collect the receivables from the utility company in 15 noninterest-bearing annual installments of $35,987 and $1,958, with the final installments due ' June 30, 2005 and September 30, 2006. During the year ended June 30, 1994, the Agency approved an additional reimbursement ' agreement with a local utility company, advancing the utility company funds required to install a water main and fire service improvements. The total amount advanced was $311,600. The Agency then contributed the receivable to the City at the present valued amount of $212,431. The City is to collect this. receivable from the utility company in 15 annual installments of $20,773, with the final installment due June 30, 2006. I 1 MI 1 19 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 5. Irrterjund Receivables and Payables Interfund receivables and payables as of June 30, 1997 are as follows: Funds General Fund Special Revenue Funds: Traffic safety Local Transportation Fund Public Transportation Funds Community Development Block Grant Capital Projects Fund Note 6. Property and Equipment 2,468 6,529 11,469 10,904 31,370 $ 31,370 $ 31,370 Changes in property and equipment during the year ended June 30, 1997 were as follows: Land Buildings and improvements Vehicles Furniture and office equipment Special equipment and machinery Other improvements Note 7. Employee Pension Plans Interfund Receivables Payables 29,736 Balance, Balance, June 30, 1996 Acquisitions Disposals June 30, 1997 $ 4,730,565 $ - $ S 4,730,565 5,617,201 24,491 5,641,692 252,264 - 252,264 1,126,272 72,462 1,198,734 495,415 70,790 566,205 852,592 14,079 866,671 $ 13,074,309 $ 181,822 $ S 13,256,131 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 (PEAS). The value of the annuity contract for retired employees was $212,176 as of June 30, 1997. I I 20 I 1 1 I I PERS also provides death and disability benefits to participating employees. CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 7. Employee Pension Plans, Continued Effective November 1, 1992, the City became a member of PERS, an agent multiple-employer public employee retirement system that acts as a common investment and administrative agent for cities in the State. The City's payroll for employees covered by PERS for the calendar year ended December 31, 1996 was $1,144,905 and total payroll was $1,736,935. All full-time City employees are eligible to participate in PERS. Benefits vest after five years of service. City employees who retire at or after age 60 with five years of credited service are entitled to an annual retirement benefit, payable monthly for life. Retirement benefits are calculated using a formula which multiplies years of credited service by a sliding scale (based on age) by the employee's highest annual salary during service. ' Benefit provisions and all other requirements are established by State statute and City ordinance. Employees are required to contribute 7% of their salary to the plan. The City contributes the employee's ' portion as well as the remain ing-coritribution requirement required to fund the plan. PERS has in its investments no securities in the form of bonds, notes, leases receivable, loans or any other instrument representing debt of the City or any of the other governments included as part of the City's reporting entity, or any parties related to the City or the other governments included as part of the City's reporting entity. Funding status and progress: The amount shown as the pension benefit obligation is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary ' increases and step-rate benefits; estimated to be payable,in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the system on a going concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make ' comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the system. ' The total PERS pension benefit obligation was computed as of June 30, 1996 as part of an actuarial valuation performed. Significant actuarial assumptions used to determine the pension benefit obligation include: ' A rate of return on the investment of present and future assets of 8.5% per year compounded annually. Projected salary increases of 4.5% per year compounded annually, attributable to inflation. No increases attributable to seniority/merit. No postretirement benefit increases. 1 1 ' 21 1 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS ' Note 7. Employee Pension Plans, Continued A comparison of the pension benefit obligation applicable to the City's employees with the plan assets as ' of June 30, 1996 is as follows: Pension benefit obligation: , Retirees and beneficiaries receiving benefits and terminated employees not yet receiving benefits $ 382,165 Current employees: Accumulated employee contributions including allocated investment earnings $ 326,607 Employer-financed, vested 1,575,896 ' Employer-financed, nonvested 14,408 1,916,911 Total pension benefit obligation 2,299,076 Net assets available for benefits, at cost (market value $2,472,126) 2,302,007 ' Overfunded pension benefit obligation $ (2,931) Actuarially determined contribution requirements and contribution made ' PERS uses the Entry Age Normal Actuarial Cost Method, which is a projected benefit cost method. That is, it takes into account those benefits that are expected to be earned in the future as well as those already accrued. According to this cost method, the normal cost for an employee is the level amount which would fund the projected benefit if it were paid annually from date of employment until retirement. , PERS uses a modification of the Entry Age Cost Method in which the employer's total normal cost is expressed as a level percentage of payroll. PERS also uses the level percentage of payroll method to amortize any unfunded actuarial liabilities. The amortization period of the unfunded actuarial liability is ' not longer than 30 years for contracting public agencies. The significant actuarial assumptions used to compute the actuarially determined contribution ' requirement are the same as those used to compute the pension benefit obligation as described earlier in this Note. 1 I 2 2 ' CITY OF ROSEMEAD, CALIFORNIA ' NOTES TO FINANCIAL STATEMENTS ' Note 7. Employee Pension Plans, Continued ' The contribution to the plan for the fiscal year ended June 30, 1997 totaling $184,622 was made in accordance with actuarially determined requirements computed through an actuarial valuation perforated as of June 30, 1996. The contribution consisted of: ' Normal cost (4.717% of current covered payroll) $ 61,230 Amortization of the unfunded actuarial accrued liability (10.405% of ' current covered payroll) 123,392 $ 184,627 Amounts contributed on behalf of. City (8.122% of current covered payroll) $ 98,574 ' Employees (7% of current covered payroll) 86,048 $ 184,622 ' Trend information ' Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Historical information for the last available three years is as follows: Unfunded (Overfunded) Pension Contribu- Benefit Obli- tion to ' gation as System as Unfunded (Over. Percentage Percentage of Year Net Assets funded) Pension of Covered Covered Ended Available Pension Benefit Percentage Benefit Annual Covered Annual Annual June 30 for Benefits Obligation Refunded Obligation Payroll Payroll Payroll 1994 S 1,580,000 S 1,814,350 87.1 % S 234,340 S 1,301,610 18.0 % 15.491 % 1995 1,882.390 2,021,200 93.1 138,815 1,331,870 10.4 15.491 1996 2,302,000 2,299,070 100.1 2,931 1,330,160 (0.2) 15.491 Showing unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation for analysis purposes. Ten-year historical trend information showing the System's progress in accumulating sufficient assets to ' pay benefits when due is presented in the System's June 30, 1997 comprehensive annual financial report. rl I 23 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 8. Deferred Compensation Agreements The City has a deferred compensation plan which is organized under Internal Revenue Code 457. The plan allows eligible employees to defer a portion of their gross income to future years not to exceed the lesser of $7,500 or 25% of the participant's includible compensation. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. The deferred compensation and accumulated earnings thereon totaled $517,848 at June 30, 1997. The deferred compensation plan is fully funded by the City as the deferred compensation is earned by the employees. Plan assets and the related liability to employees are accounted for in an agency fund at the current market value of the annuity contracts and time certificates of deposit. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are, (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The City has no liability for losses under the plan, but does have the duty of due care that would be required of any ordinary prudent investor. The administrative and reporting functions of the plan are being handled by an insurance company. Note 9. Self-insurance Program The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and injuries to employees. The City carries commercial liability insurance and bonds its employees. The City carries no insurance coverage for natural disasters. Beginning in 1977, the City of Rosemead became a member of the Southern California Joint Powers Insurance Authority (the Authority) (a joint powers authority of 77 California cities) for the purpose of pooling their losses and claims of workers' compensation and general liability with those of other member cities. The Authority is governed by a Board of Directors which is composed of one representative and an alternate selected by the City Council of each city. Each board member has one vote regarding control of all budgeting, financial and management issues coming before the Board of Directors. The City of Rosemead, 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 pro 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 24 I 1 CITY OF ROSEMEAD, CALIFORNIA ri,, k.. NOTES TO FINANCIAL STATEMENTS - 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 199313) to finance a portion of the cost of the redevelopment area known as Project Area No. 1. The bonds bear interest ranging from 4.6% to 5.6% 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 proceeds, 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 on or after October 1, 2033, and Series 1993B bonds mature on or after 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. Compensated absences That portion of the liability for the vested compensated 'absences~totaling $297,011 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, 1997: ' Accrued Tax Allocation Tax Allocation Vacation and Bonds Series Bonds Series Litigation Compensatory 1993A 19938 Settlement Time Total Balance, June 30, 1996 $ 34,275,000 $ 1,910,000 $ 112,347 $ 275,629 $ 36,572,976 Payments of principal - (280,000) - - (280,000) Additions 21,382 21,382 Reductions in settlement (35,574) (35,574) ' Balance, June 30, 1997 $ 34,275,000 $ 1,630,000 $ 76,773 $ 297,011 $ 36,278,784 I ' 25 CITY OF ROSEMEAD, CALIFORNIA ' NOTES TO FINANCIAL STATEMENTS , Note 10. Long-term Debt, Continued ' The annual requirements, principal and interest to amortize the outstanding debt as of June 30 1997 are , as follows: , Accrued Series 1993 Vacation and ' During the Year A and B Litigation Compensa- Ending June 30, Bonds Settlement tory Time Interest Total 1998 $ 295,000 $ 37,666 S 297,011 S 1,989,427 S 2,619,104 , 1999 310,000 39,107 - 1,971,450 2,320,557 2000 330,000 - - 1,951,663 2 281 663 , , 2001 345,000 - - 1,932,853 2,277,853 ' 2002 370,000 - - 1,912,843 2,282,843 Years thereafter 34,255,000 - - 39.846,587 74,101,587 ' S 35,905,000 S 76,773 S 297,011 $ 49,604,823 $ 85,883,607 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, 1997, $16,470,000 is considered defeased, consisting of $9,660 149 of , bonds outstanding and $6,809,851 of interest. ' I 1 26 , CITY OF ROSEMEAD, CALIFORNIA ' NOTES TO FINANCIAL STATEMENTS Note 11. Budget Overevpenditures and Deficit i ' Expenditures exceeded Appropriations for the year ended June 30, 1997 in the following departments: Amount ' of Over- General Fund Appropriations Expenditures expenditures • ' Travel and meetings $ 26,000 $ 27,841 $ 1,841 City council 64,380 64,767 387 City treasurer 12,000 12,059 59 ' City garage 36,200 45,055 8,855 Animal regulation 50,000 67,934 17,934 Parking control 114,400 117,35.9 2,959 Crossing guard 86,070 90,867 4,797 Narcotics forfeiture 110 110 Street and highway construction - 8,939 8,939 Recreation 577,270 594,279 17,009 ' Building regulation 449,300 458,867 9,567 Community improvements 93,940 105,809 11,869 Capital outlay 4,500 47,683 43,183 ' Traffic Safety Fund Public safety 60,000 87,657 27,657 Air Quality Management District Fund ' Community Service 3,800 3,815 15 ' Note 12. Commitments and Contingent Liabilities Low-Moderate Income Housing Set-Aside Fund 1 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 the set-aside requirement amounts incurred June 30, 1986 through June 30, 1991 and during the fiscal years ended June 30, 1994, 1995 and 1996 are allowed to be deferred until the fiscal year ended June 30, 2023 as a result of a housing deficit repayment plan devised by the Agency as required by law. As of June 30, 1997, the accumulated set-aside amount not yet funded was approximately $4,947,000. Litigation ' The City was a defendant in a lawsuit along with 13 other cities, the County of Los Angeles, five county garbage collection districts and the State of California for reimbursement of landfill cleanup costs of hazardous waste dumped between 1948 and 1984. The plaintiffs claimed that the cities either accepted for transport or arranged for disposal or treatment of municipal waste which contained hazardous materials. The plaintiffs also claimed that these materials have been released from the landfill into the ' environment. ' 27 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 12. Commitments and Contingent Liabilities, Continuer! The City and the plaintiffs reached a settlement of the above referenced matter for $946,726. The City's insurers have agreed to pay $447,467, with the City paying the balance of $499,259. Of this amount, $300,000 was deposited in an escrow account in January 1994. The remaining amount of $199,259 will be paid over the next five years with interest at various rates not to exceed 5%. The present value of the remaining payments as of June A 1997~~vas$76073. This amount is included in the City's long-term debt account group as of June 30, 1997. In addition, the City enacted a user fee, imposed on residential and commercial refuse bills, to help offset the settlement. In late July 1995, the 13 cities involved in the above litigation received a claim for indemnity. The Fortune 500 companies who utilized the landfill are now being sued for traditional tort damages to their persons and property. The Fortune 500 companies have in turn filed claims with the 13 cities asserting that, if they are liable, then the cities are proportionately liable up to an aggregate total of $3,000,000 for claims in excess of $40,000,000. The cities r egotiated a settlement agreement with the homeowners plaintiffs which requires the cities, including the City of Rosemead, to pay an aggregate total of $300,000, approximately $11,500 per city. The settlement calls for the homeowners to indemnify the cities against any liability to the industrial defendants and/or to dismiss these defendants. The settlement has been approved by the court and signed by all counsel and all but one homeowner family. The City expects the remaining family will sign very soon. ' 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 30, 1997, the agreement continues to remain on hold. A'ote 13. Pronouncement Issued but A'ot Yet Adopted In November 1994, the Governmental Accounting Standards Board (GASB) issued Statement of Governmental Accounting Standards No. 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. Statement No. 27 is required to be adopted for years beginning after June 15, 1997. The City has not completed its assessment of the effect that the adoption of Statement No. 27 will have on its financial statements. In January 1997, the GASB issued Statement of Governmental Accounting Standards No. 31, Accounting and Financial Reporting for Certain Invesnneats and for External brnestmeat Pools. This Statement establishes new financial reporting standards for investments held by government external investment pools, interest-earning investment contracts, open-end mutual funds and debt and equity securities. Statement No. 31 is required to be adopted for years beginning after June 15, 1997. The effect of adopting this Statement would have been to increase investments and fund balance by approximately $305,000 at June 30, 1997. 1 I 28 1 CITY OF ROSEMEAD, CALIFORNIA COMBINING AND INDIVIDUAL FUNDS AND ACCOUNT GROUPS FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1997 I THIS PAGE INTENTIONALLY LEFT BLANK 29 I I I 1 I 1 i 1 1 I 1 1 1 1 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, 1997 1997 1996 ASSETS Cash and investments $10,207,644 $7,975,718 Receivables 1,220,124 1,174,257 Due from other funds 29,736 769,465 Prepaid expenses 920 Total Assets $11,458,424 $9,919,440 LIABILITIES AND MUNICIPAL EQUITY Liabilities Accounts payable and accrued liabilities $1,451,976 $1,124,846 Due to other governmental agencies Deferred compensation 190,000 Accrued vacation pay and compensatory time 7,703 1,566 Total Liabilities $1,459,679 $1,316,412 Municipal Equity and Other Credits: Fund Balance: Reserved: Long-term receivable $717,796 $687,269 Unreserved: Designated: Building and equipment replacement 1,720,000 1,720,000 Litigation settlements 1,000,000 750,000 Self-insurance 300,000 280,000 Contingencies 3,000,000 2,680,000 Undesignated 3,260,949 2,485,759 Total Fund Balance $9,998,745 $8,603,028 Total Liabilities, Municipal Equity and Other Credits $11,458,424 $9,919,440 31 1 CITY OF ROSEMEAD, CALIFORNIA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 1997 1996 REVENUES: Other Taxes $3,952,511 $3,664,031 Licenses and permits 760,037 760,191 Intergovernmental 3,860,776 3,177,566 Charges for services 576,033 531,055 Fines, forfeitures and penalties 276,281 303,930 Use of money and property 568,410 460,479 Other 30,921 102,536 Total Revenue $10,024,969 $8,999,788 EXPENDITURES: Current: General government $1,812,609 $1,808,268 Public safety 4,561,894 4,419,427 Public works 47,007 63,806 Public health 45,966 44,863 Public recreation 2,144,066 1,868,823 Community service 1,014,080 955,219 Capital outlay 47,683 55,206 Total Expenditures $9,673,305 $9,215,612 Revenue over (under) expenditures $351,664 ($215,824) OTHER FINANCING SOURCES (USES): Operating transfers: From other funds $1,097,300 $1,157,737 (To) other funds (53,247) Total Other Financing Sources (Uses) $1,044,053 $1,157,737 Revenues and Other Financing Sources over (under) expenditures $1,395,717 $941,913 HIND BALANCE, BEGINNING 8,603,028 7,387,388 Residual equity transfer 273,727 FUND BALANCE, ENDING $9 998 745 $8,603,028 32 CITY OF ROSEMEAD, CALIFORNIA GENERAL FUND REVENUE DETAIL - BUDGET AND ACTUAL Fiscal Year Ended June 30, 1997 Over (Under) Budget Actual Budget 1996 TAXES Maintenance district $1,500 $1,575 $75 $1,291 Real estate transfer tax 35,000 47,904 12,904 40,404 Sales and use tax 2,550,000 2,550,967 967 2,309,758 Franchise fees 577,550 574,497 (3,053) 577,004 Transient occupancy tax 720,000 777,568 57,568 735,574 $3,884,050 $3,952,511 $68,461 $3,664,031 LICENSES AND PERMITS Business license fees $35,000 $34,578 ($422) $36,547 Building permit fees 525,000 511,039 (13,961) 525,405 Public work permit 63,000 76,133 13,133 62,941 Tentative map fees ' 2,500 5,975 3,475 8,610 Development review fees 3,000 17,260 14,260 5,767 Final map fees 25,000 25,365 365 33,229 Occupancy permit fees 56,000 58,490 2,490 55,987 Sewer connection 25,000 28,624 3,624 29,513 Strong motion fees 2,000 2,573 573 2,192 Rehabilitation permit fees 1,600 - (1,600) - $738,100 $760,037 $21,937 $760,191 INTERGOVERNMENTAL Financial aid to local agencies $900,000 $1,017,845 $117,845 $1,037,006 Motor vehicle in lieu tax 2,000,000 ' 2,192,695 192,695 2,071,934 Other vehicle taxes 12,900 856 (12,044) 852 COPS Grant 76,000 352,029 276,029 56,774 Other State grants 350,000 297,351 (52,649) 11,000 $3,338,900 $3,860,776 $521,876 $3,177,566 CHARGES FOR SERVICES Filing and certification fees $40,000 $54,503 $14,503 $59,410 Other current charges 240 625 249,735 9,110 224,124 Recreation fees 246,210 226,876 (19,334) 235,175 Assessments 4,000 25,586 21,586 6,510 Special community events 23,200 19,333 (3,867) 5,836 $554,035 $576,033 $21,998 $531,055 FINES, FORFEITURES AND PENALTIES Court fines and forfeitures $281,500 $276,281 ($5,219) $303,930 USE OF MONEY AND PROPERTY Interest earned on investments $310,000 $505,143 $195,143 $403,084 Rental Income 55,200 63,267 8,067 57,395 $365,200 $568,410 $203,210 $460,479 OTHER SANE program $32,500 $12,500 ($20,000) $32,077 Repairs to and sale of City property 1,100 3,552 2,452 6,274 Miscellaneous 38,150 14,869 (23,281) 64,185 $71,750 $30,921 ($40,829) $102,536 Total Revenues $9,233,535 $10,024,969 $791,434 $8.999.788 33 ~ q LJ 1 I CITY OF ROSEMEAD, CALIFORNIA GENERALFUND. EXPENDITURE DETAIL - BUDGET AND ACTUAL Fiscal Yiar Ended June 30, 1997 Over (Under) Budget Actual Budget 1996 GENERAL GOVERNNE,NT Travel and meeting $26,000 $27,841 $1,841 $27,753 City council 64,380 64,767 387 64,427 City administration 764,930 554,615 (210,315) 671,716 City clerk 136,280 109,869 (26,411) 71,833 Finance 241,330 231,670 (9,660) 204,522 City treasurer 12,000 12,059 59 12,875 City attorney 132,960 124,482 (8,478) 95,584 General government buildings 387,200 366,414 (20,786) 361,008 Community promotion 291,420 275,837 (15,583) 266,396 City garage 36,200 45,055 8,855 32,154 $2,092,700 $1,812,609 ($280,091) $1,808,268 PUBLIC SAFETY Law enforcement $4,419,929 $4,276,631 ($143,298) $4,173,429 Animal regulation 50,000 67,934 17,934 51,443 Parking control 114,400 117,359 2,959 115,200 Crossing guard 86,070 90,867 4,797 76,862 Emergency services 18,900 8,993 (9,907) 2,211 Narcotics forfeiture - 110 110 90 Street lighting 192 $4,689,299 $4,561,894,M.. ($127,405) $4,419,427 PUBLIC WORKS Engineering and administration $36,640 $36,452 ($188) $35,875 Street and highway construction e 8;939 8,939 27,041 Traffic signs and striping maintenance 60,000 1,616 (58,384) 890 $96,640 $47,007 ($49,633) $63,806 PUBLIC HEALTH Public health services $48,000 $45,966 ($2,034) $44,863 PUBLIC RECREATION Administration $191,400 $187,735 ($3,665) $176,641 Parks 1,109,090 1,104,630 (4,460) 824,550 Recreation 577,270 594,279 17,009 566,891 Aquatics 300,230 253,630 (46,600) 297,355 Dinsmoor Heritage House 4,000 3,792 (208) 3,386 $2,181,990 $2,144,066 ($37,924) $1,868,823 COMMUNITY SERVICE Planning $207,760 $204,899 ($2,861) $172,956 Building regulation 449,300 458,867 9,567 448,651 Engineering 321,100 244,505 (76,595) 250,551 Community improvements 93,940 105,809 11,869 83,061 $1,072,100 $1,014,080 ($58,020) $955,219 CAPITAL OUTLAY $4,500 $47,683 $43,183 $55,206 APPROPRIATION RESERVES $17,611 ($17,611) Total Expenditures $10,202,840 $9,673,305 ($529,535) $9,215,612 1 34 TIES 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 Established to account for Community I United States Department of Housing and 1976 COMMUNITY PARKLANDS GRANT Established to account for funds to be used for STREET LIGHTING FUND i FUND ment Block Grants received from the Development. projects. Established to account for the operation of street lights within the City. I 37 I SPECIAL REVENUE FUNDS (cont'd) I i I I 1 I I 1 1 1 1 I I 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. 38 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 CITY OF ROSEMEAD, CALIFOR NIA SPECIAL REVENUE FUNDS ! COMBINING BALANCE SliEE T June 30, 1997 ! Air Quality Local Public Community ! Traffic State Management Trans- Trans- Development Safety Gas Tax District portation portation Block Grant Fund Vind: Fund Fund Fund Fund $ - $551,266 $92,651 $4,674 $684,630 $155,000 2,468 8,000 13,850 1,855 92,033 240,601 $2,468 $559,266 $106,501 $6,529 $776,663 $395.601 ! 2,468 $125,573 $2,700 6,529 $72,760 11,469 $138,015 10,904 ! 246,682 $2,468 $125,573 $2,700 $6,529 $84,229 $395,601 ! 433,693 103,801 692,434 $ - $433,693 $103,801 $692,434 $ - ! $2.468 $559.266 $106,501 $6,529 $776,663 $395 601 . ! 39 -rdcs~z~'4a., .c .s+erlt"v'wt 1976 Community Low-Moderate Rosemead ' Parklands Street Narcotics Income Hous- Housing California Grant Lighting Seizure ing Set-Aside Development Wildlife Totals Fund Fund Fund Fund Corporation Grant 1997 1996 $43,408 $286,991 $10,150 $4,211,223 $79,826 $36 $6,119,855 $5,378,192 1 21,697 40,694 421,198 1,138,113 $43,408 $308,688 $10,150 $4,251,917 $79,826 $36 $6,541,053 $6,516,305 $ - $42,018 $10,150 $ - $32,895 $ - $424,111 $326,286 31,370 768,940 246,682 244,663. $42,018 $10,150 $ - $32,895 $ - 702,163 1,339;889 ' 1 $ - $ - $ - $4,251,917 $4,251,917 $3,967,172 43,408 266,670 46,931 36 1,586,973 1,209,244 $43,408 $266,670 $ - $4,251,917 $46,931 $36 $5,838,890 $5,176 416 ' , $43,408 $308.688 $10,150 $4,251,917 $79,826 $36 $6,541,053 $6.516.305 40 CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Fiscal Year Ended June 30, 1997 Air Quality Local Public Traffic State Management Trans- Trans- Safety Gas Tax District portation portation Fund Fund Fund Fund Fund REVENUES: Special assessments $ _ $ _ $ _ $ Intergovernmental 975,184 57,154 22,262 1,038,697 Charges for services 8,000 Fines, forfeiture and penalties 87,657 Use of money and property 27,160 36,470 Other 242 Total Revenues $87,657 $1,010.586 $57,154 $22.262 $1,075,167 EXPENDITURES: Current: General government $ _ $ Public safety 87,657 Public works - 940,952 1107157 29,396 843,432 Public Recreation Community services - 3,815 Capital outlay _ Total Expenditure $87,657 $940,952 $113,972 $29,396 $843,432 Revenue over (under) expenditures $ - $69,634 ($56,818) ($7,134) $231,735 OTHER FINANCING SOURCES (USES): Operating transfers: From other funds $ - $ - $ - $7,134 $ - (To) other funds $ $7,134 Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING RESIDUAL EQUITY TRANSFER FUND BALANCE, ENDING $ - $69,634 ($56,818) $ - $231,735 364,059 160,619 460,699 $433,693 $103.801 $ - $692.434 41 T1 1 X11 , 1976 ' Community Community Low-Moderate Rosemead Development Parklands Street Narcotics Income Housing Housing Block Grant Fund Grant Fund Lighting Fund Seizure Fund Set-Aside Fund Development Corporation ' $ - $ - $382,609 $ - $ _ $ _ 1,578,887 ' 2,115 246 194,553 162,333 3 156 , ' $1,578,887 $2,115 $382,609 $246 $194 553 $165 489 , , $ _ $ - $ - 226,287 46,359 $190,748 619,817 ' 959,070 $1,578,887 $226,287 $46,359 $190 748 , ' $2,115 $156,322 ($46;113) $194,553 ($25,259) $ $ - $ - 46,113 $240,192 $150,000 (150,000) (150 000) , $ - $ - $ - $46.113 $90,192 $ - $2,115 $156,322 $ - $284,745 ($25,259) ' - 41,293 110,348 3,967,172 72,190 ' $ - $43.408 $266,670 $4,251,917 $46 931 , ' 42 CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Fiscal Year Ended June 30, 1997 REVENUES: Special assessments Intergovernmental Charges for services Fines, forfeiture and penalties Use of money and property Other EXPENDITURES: Current: General government Public safety Public works Public Recreation Community services Capital outlay California Wildlife OTHER FINANCING SOURCES (USES): Operating transfers: From other funds (To) other funds Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING RESIDUAL EQUITY TRANSFER FUND BALANCE, ENDING 1997 $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 1 $443,439 (300,000) $143,439 $662,474 36 5,176,416 r $36 43 $5,838,890 1996 $365,184 2,977,953 8,000 61,470 294,473 165,314 $3,872,394 $94,723 313,999 1,863,689 861 912,133 $3,185,405 $686,989 $224,782 (435,219) ($210,437) $476,552 4,973,591 (273,727) $5,176,416 s p,9 t,re:.6 i'rvtti, . CITY OF ROSEMEAD, CALIFORNIA 11r , ' TRAFFIC SAFETY FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 REVENUES: ' Fines, forfeiture and penalties 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 1 Over (Under) Budget Actual Budget 1996 $60,000 $87,657 $27,657 $61,470 $60,000 $87,657 $27,657 $61,470 $60,000 $87,657 $27,657 $61,470 $60,000 $87,657 $27,657 $61470 $ $ $ $ $ $ $ - 44 CITY OF ROSEMEAD, CALIFORNIA STATE GAS TAX FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 REVENUES: Intergovernmental Charges for services Use of money and property Other Total Revenues EXPENDITURES: Public Works Community Services Total Expenditures Revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Budget $907,500 8,000 _ 0 $915,500 $1,177,300 ($261,800) $43,070 ($218.730) Over (Under) Actual Budget $975,184 $67,684 8,000 27,160 27,160 242 242 $1,010,586 $95,086 $940,952 ($236,348) $940,952 ($236,348) $69,634 $331,434 $ - ($43,070) $69,634 364,059 $433,693 $288,364 45 1996 ' $951,914 8,000 21,937 $981,851 $960,289 , 7,503 $967,792 ' $14,059 ' $14,059 ' 350,000 $364,059 , 1 1 1 CITY OF ROSEMEAD, CALIFORNIA ' AIR QUALITY MANAGEMENT DISTRICT FUND STATEMENT OF REVENUE, EXP ENDITURES AND CHANGES IN FUND BA LANCE Fiscal Year Ended June 30, 1997 Over (Under) Budget Actual Budget 1996 REVENUES: ' Intergovernmental $60,000 $57,154 ($2,846) $58,175 Use of money and property 0 Other 150 (150) 166 ' Total Revenues $60,150 $57,154 ($2,996) $58,341 ' EXPENDITURES: Public works $201,000 $110,157 ($908 ) $4 Community Services 3,800 3,815 15 3,762 Total Expenditures $204,800 $113,972 ($90,828) $44,922 ' Revenues over (under) expenditures ($144,650) ($56,818) ($87,832) $13,419 OTHER FINANCING SOURCES (USES): Operating transfers: ' From (To) other funds Revenue and other financing sources over(under)expenditures ($144 650) ($56 818) $87 832 $13 4 , , , , 19 FUND BALANCE, BEGINNING 160,619 147,200 ' FUND BALANCE ENDING , $103,801 $160,619 46 ' C ITY OF ROSEMEAD, CALIFORNIA LOCAL TRANSPORTATION FUND ' STAT EMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 ' , Over (Under) Budget Actual Budget 1996 ' REVENUES: ' Intergovernmental $22,260 $22,262 $2 $41,264 Other 150 (150) ' Total Revenues $22,410 $22,262 ($148) $41,264 , EXPENDITURES: Public works $37,000 $29,396 , Total Expenditures 7,000 $29,396 =3 Revenues over (under) expenditures ($14,590) ($7,134) $148 $41,264 ' OTHER FINANCING SOURCES (USES): Operating transfers: ' From (To) other funds $ - $7,134 $7,134 ($85,219) Revenue and other financing sources , over (under) expenditures ($14,590) $6,986 ($43,955) FUND BALANCE, BEGINNING 43,955 ' I FUND BALANCE, ENDING i r 47 f 1 CITY OF ROSEMEAD, CALIFORNIA ' PUBLIC TRANSPORTATION FUND STA TEMENT OF,REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 Over Budget Actual (Under) Budget 1996 REVENUES: Intergovernmental $1,000,000 $1,038,697 $38,697 $970,492 Use of money and property 36,470 36,470 16,890 Total Revenues $1,000,000 $1,075,167 $75,167 $987,382 EXPENDITURES: Current: Public works $1,310,110 $843,432 ($466,678) $806;663 ' Total Expenditures $1,310,110 $843,432 ($466,678) _ $806,663 Revenues over (under) expenditures ($310,110) $231,735 ($541,845) $180,719 ' OT HER FINANCING SOURCES (USES): Operating transfers: S From (To) other funds $ _ $ _ $ Revenue and other financing sources ' over(under)expenditures B ($310,110) $231,735 $541,845 $180,719 FUND ALANCE, BEGINNING 460,699 279,980. - ' FUND BALANCE, ENDING $692,434 $4W699 ' 48 CITY OF ROSEMEAD, CALIFORNIA COMMUNITY DEVELOPMENT BLOCK GRANT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 REVENUES: Intergovernmental Total Revenues EXPENDITURES: Current: Public works Community services Total Expenditures Revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Over (Under) Budget Actual Budget $2,541,920 $1,578,887 ($963,033) $2,541,920 $1,578,887 ($963,033) $1,407,000 $619,817 ($787,183) 1,134,920 959,070 (175,850) $2,541,920 $1,578,887 ($963,033) 1996 ' $956,072 ' $956,072 $55,577 , 900,868 $956,445 ' ($373) $373 ' 1 49 . ,r' ua F r 41 CITY OF ROSEMEAD, CALIFORNIA 1976 COMMUNITY PARKLANDS GRANT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ' Fiscal Year Ended June 30, 1997 ' Over (Under) Budget Actual Budget 1996 REVENUES: Intergovernmental $0 Use of money and property 100 2,115 2,015 2,130 Total Revenues $100 $2,115 $2,015 $2,130 EXPENDITURES: ' Public Recreation ' $861 Total Expenditures $ $ $861 ' Revenues over(under)expenditures $100 $2,115 $2,015 $1,269 OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds ' Revenue and other financing sources over(under)expenditures $100 $2,115 $2,015 $1,269 ' FUND BALANCE, BEGINNING 41,293 40,024 FUND BALANCE, ENDING $43,408 $41,293 ' 50 CITY OF ROSEMEAD, CALIFORNIA STREET LIGHTING FUND STATEMENT OF'REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 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 -Budget $360,000 $360,000 $251,000 $109,000 $109,000 53. Over (Under) Actual Budget $382,609 $22,609 $226,287 $156,322 $156,322 110,348 $266,670 i ($24,713) $47,322 $47,322 1996 ' $365,184 ' $365,184 $206,155 $206,155 $159,029 , $159,029 ' 225,046 (273,727) $110,348 , CITY OF ROSEMEAD; CALIFORNIA IZURE FUND NARCOTICS SEIi STATEMENT,OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 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 Budget Actual 246 $246 $48,350 $46,359 $48,350 $46,359 ($48,350) ($46,113) 48,350 $46,113 52 Over (Under) Budget 1996 $0 246 302 $246 $302 ($1,991) $46,374 ($1,991) $46,374 $2,237 ($46,072) s.. . ($2,237) $24,409 ($21,663) 21,663 CITY OF ROSEMEAD, CALIFORNIA LOW-MODERATE INCOME HOUSING FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 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 Over (Under) Budget Actual Budget 1996 $132,200. $194,553 $62,353 $253,214 $132,200 $194,553 $62,353 $253,214 $132,200 $194,553 $62,353 $253,214 ($610,000) $90.192 $700,192 ($200,000) _ $47( 7,800) $284,745 $762545 $53,214 3,967,172 3,913,958 $4.251.917 $3.967,172 53 C ITY. OF ROSEMEAD, CALIFORNIA ' ROSEMEAD HOUSING DEVELOPMENT CORPORATION STATEMENT OF REVENUE, EXPENDITURES A ND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 Over ' Budget Actual (Under) Budget 1996 REVENUES: Use of money and property $156,000 $162,333 $162,333 Other 5,000 3,156 (1,844) 165,148 Total Revenues $161,000 $165,489 $160,489 $165,148 EXPENDITURES: General government $620,800 $190,748 ($430,052) $94,723' Capital Outlay Total Expenditures $620,800 $190,748 ($430,052). $94,723 ' Revenues over(under)expenditures ($459,800) ($25,259) ($590,541) $70,425 OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds $460,000 ($460,000)_ $50,000 ' Total Other Financing Sources (Uses) $460,000 ($460,000) $50,000 Revenue and other financing sources over(under)expenditures $200 ($25 259) ($25 459) $120 425 , , , FUND BALANCE, BEGINNING 72,190 (48,235) ! FUND BALANCE ENDING , $46,931 $72,190 54 CITY OF ROSEMEAD, CALIFORNIA CALIFORNIA WILDLIFE FUND STATEMENT OF REVENUE, EXTENDITURES AND CHANGES W FUND BALANCE Fiscal Year Ended June 30, 1997 Budget Actual REVENUES: Intergoverruuental 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 FUND BALANCE, ENDING $36 55 Over (Under) Budget 1 1 1 1996 1 $36 ' $36 i $36 1 $ i $36 1 $36 1 i 1 1 1 1 1 1 CITY OF ROSEMEAD, CALIFORNIA ' FEDERAL HIGHWAY GRANTS FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 REVENUES: ' Intergovernmental Use of money and property Total Revenues EXPENDITURES: ' Public works Total Expenditures Revenues over (under) expenditures ' OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds Revenue and other financing sources over (under) exTenditures ' FUND BALANCE, BEGINNING FUND BALANCE, ENDING Budget $1,023,000 $1,023,000 $1,023,000 $1,023,000 Over (Under) Actual Budget ($1,023,000) ($1,023,000) 56 ($1,023,000) ($1,023,000) 1996 THIS PAGE INTENTIONALLY LEFT BLANK s 1 I 1 I i 57 I 1 1 [1 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. I 1 1 1 II 1 58 CITY OF ROSEMEAD, CALIFORNIA CAPITAL PROJECTS FUND BALANCESHEET June 30, 1997 ASSETS 1997 1996 Cash and investments Receivables Due from other funds Total Assets $18,687,263 549,233 1,634 $19,238,130 $19,298,152 368,934 $19,667,086 LIABILITIES AND MUNICIPAL EQUITY Liabilities: Accounts payable and accrued liabilities Arbitrage rebate payable Due to City of Rosemead Due to other funds Total Liabilities $198,766 $477,807 180,000 525 Municipal Equity and Other Credits: Fund Balance: Unreserved: Designated for capital projects Total Fund Balance Total Liabilities, Municipal Equity and Other Credits $198,766 $658,332 19,039,364 $19,039,364 19,008,754 $19,008,754 $19,238,130 $19,667,086 59 1 CITY OF ROSEMEAD, CALIFORNIA ' CAPITAL PROJECTS FUND STATEMENT OF REVENUE, EXPENDITURES ' AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 ' 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 ' 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 1 60 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 1996 $2,671,909 1,749,265 31,659 $4,452,833 $1,861,174 37,891 5,966 180,000 63,978 $2,149,009 $2,303,824 (3,081,198) ($3,081,198) ($777,374) 19, 786,128 $19,008,754 CITY OF ROSEMEAD, CALIFORNIA CAPITAL PROJECTS FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Fiscal Year Ended June 30, 1997 REVENUE Property taxes and special assessments Use of money and property Other EXPENDFIURES Improvements to project area Professional fees City administrative services Intergovernmental Arbitrage rebate expense Capital outlay Investment loss Revenue over (under) expenditures Budget $3,300,000 441,571 $3,741,571 $7,028,200 38,000 11,900 2,500 $7,080,600 ($3,339,029) Over (Under) Actual Budget 1996 $2,845,775 ($454,225) $2,671,909 1,288,447 846,876 1,749,265 28,943 28,943 31,659 $4,163,165 $421,594 $4,452,833 $758,811 ($6,269,389) $1,861,174 20,544 (17,456) 43,857 29,706 180,000 (2,500) 63,978 $809,061 ($6,289,345) $2,149,009 $3,354,104 $6,710,939 $2,303,824 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 (3,225,913) ($3,225,913) ($6,564,942) 61 (3,323,494) (97,581) (3,081,198) ($3,323,494) ($97,581) ($3,081,198) $30,610 $6,595,552 ($777,374) 19,008,754 19,786,128 $19,039,364 $19,008,754 1 i 1 1 1 1 i i 1 1 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. 62 CITY OF ROSEMEAD, CALIFORNIA DEBT SERVICE FUND BALANCESHEET June 30, 1997 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 1997 1996 $2,344,420 $2,344,150 11,193 11,193 $2,355,613 $2,355,343 Total Liabilities, Municipal Equity and Other Credits $2,355,613 $2,355,343 $2,355,613 $2,355,343 $2,355,613 $2,355,343 63 CITY OF ROSEMEAD, CALIFORNIA ' DEBT SERVICE FUND STATEMENT OF REVENUE, EXPENDITURES ' AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1997 ' REVENUES: Interest Total Revenue EXPENDITURES: ' Debt service: Principal Interest Certificate of refunding Issuance costs ' 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 FUND BALANCE, ENDING 1 64 1997 1996 $135,601 $1,779 $135,601 $1,779 $280,000 $265,000 1,991,333 2,006,154 $2,271,333 $2,271,154 ($2,135,732) ($2,269,375) $2,136,002 $2,133,898 $2,136,002 $2,133,898 $270 ($135,477) 2,355,343 2,490,820 $2,355,613 $2,355,343 CITY OF ROSEMEAD, CALIFORNIA DEBT SERVICE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Fiscal Year Ended June 30, 1997 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) Bud et Actual Budget 1996 $130,000 $135,601 $5,601 $1,779 $130,000 $135,601 $5,601 $1,779 $280,000 1 $280,000 $265,000 1,998,6 3 1,991,333 (7,280) 2,006,154 $2,278,613 $2,271,333 ($7,280) $2,271,154 ($2,148,613) ($2,135,732) $12,881 ($2,269,375) $2,278,613 $2,136,002 ($142,611) $2,133,898 $2,278,613 $2,136,002 ($142,611) $2,133,898 $130,000 $270 ($129,730) ($135,477) 2,355,343 2,490,820 $2,355,613 $2,355,343 65 1 1 1 1 1 1 11 >j; 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 and deferred compensation plans for qualified employees. 66 ' CITY OF ROSEMEAD, CALIFORNIA FIDUCIARY FUNDS , COMBINING BALANCE SHEET June 30,1997 Pension Agenc y Funds ' Trust Refundable Deferred Totals Fund Deposits Compensation 1997 1996 ASSETS , Cash and cash investments $212,175 $95,568 $517,848 $825,591 $747 943 Receivables , ' Total Assets $212,175 $95,568 $517.848 $825.591 $747,943 LIABILITIES AND MUNICIPAL EQU ITY Liabilities: ' Due to other funds $ _ $ Refundable deposits 95,568 95,568 86 228 Deferred compensation 517,848 517,848 , 435,630 , Total Liabilities $ - $95,568 $517,848 $613,416 $521,858 Municipal Equity: ' Fund balance, reserved for employees' retirement $212,176 $ - $ - $212,176 $226,085 t Total Liabilities and Municipal Equity $212.176 $95,568 $517.848 $825,592 $747,943 67 1 1 I 1 I CITY OF ROSEMEAD, CALIFORNIA ALL AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Fiscal Year Ended June 30, 1997 REFUNDABLE DEPOSIT FUND: ' Assets Cash and cash investments Receivable ' Total Assets Liabilities Refundable deposits I EMPLOYEES DEFERRED ' COMPENSATION FUND: Assets Cash and cash investments ' Investments in deferred compensation plan ' Total Assets Liabilities ' Deferred compensation ALL AGENCY FUNDS: ' Assets Cash and cash investments Investments in deferred compensation I Total Assets ' Liabilities Refundable deposits Deferred compensation I Balance July 1, 1996 Additions Balance Deductions June 30, 1997 $86,228 $34,851 $25,511 $95,568 $86,228 $34,851 $25,511 $95,568 $86,228 $34,851 $25,511 $95,568 $86,228 $34,851 $25,511 $95,568 $8,704 $377 $3,641 $5,440 426,926 85,482 512,408 $435,630 $85,859 $3,641 $517,848 $435,630 $85,859 $3,641 $517,848 $94,932 $35,228 $29,152 $101,008 426,926 85,482 512,408 $521,858 $120,710 $29,152 $613,416 $86,228 $34,851 $25,511 $95,568 435,630 85,859 3,641 517,848 $521,858 $120,710 $29,152 $613,416 68 THIS PAGE INTENTIONALLY LEFT BLANK i 69 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. 70 CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF GENERAL FIXED ASSETS June 30, 1997 I I GENERAL FIXED ASSETS 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 Balance July 1, 1996 Additions $8,627,668 102,612 108,095 54,767 - 1,353 - 84,010 - (2,364) - 736,395 73,727 3,469,868 - 1997 1996 $4,730,565 5,641,692 252,264 1,198,734 566,205 866,671 $4,730,565 5,617,201 252,264 1,126,272 495,415 852,592 $13,256,131 $13,074,309 Balance Deletions June 30, 1997 $8,627,668 - 210,707 - 54,767 - 1,353 - 84,010 - (2,364) - 810,122 - 3,469,868 Ending Balance $13,074,309 $181,822 $13,256,131 71 ' CITY OF ROSEMEAD, CALIFORNIA ' STATEMENT OF CHANGES OF GENERAL FIXED ASSETS Fiscal Year Ended June 30 1997 , ' Balance Balance Function and Activity July 1, 1996 Additions Deletions June 30, 1997 ' Land Prior year balance $542,926 $542,926 Redevelopment agency 2,350,308 2,350,308 ' Housing development corporation 1,837,331 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 1,933,339 24,491 - 1,957,830 Housing development corporation 1,632,536 - - 1,632,536 Total buildings and improvements $5,617,201 $24,491 $5 641 692 , , Vehicles Prior year balance $230,588 $230,588 General government 24,040 24,040 Transportation (2,364) (2,364 ' Total vehicles $252,264 $252 264 , Furniture and office equipment ' Prior year balance $427,588 $427,588 General government 33,834 11,519 - 45,353 Public safety - 4,008 - 4 008 ' Community development 9,626 - , 9,626 Cultural & leisure 2,466 7,699 - 10,165 Redevelopment agency 652,758 49,236 - 701,994 Total furniture and office ' equipment $1,126,272 $72,462 $1,198,734 Special equipment and machinery ' Prior year balance $490,765 $490,765 Public safety 37,169 37,169 ' Community development Cultural & leisure 4 650 2,054 31 567 2,054 36 , , ,217 Total special equipment and machinery $495,415 $70,790 $566205 Other improvements Prior year balance $748,492 $748,492 ' General government - 4,927 4,927 Public safety 9,464 9,464 Cultural & leisure 94,636 9,152 103,788 Total other improvements $852,592 $14,079 $866 671 , Total general fixed assets $13,074,309 $181,822 $13,256,131 72 THIS PAGE INTENTIONALLY LEFT BLANK 73 0 1 1 1 1 1 1 i 1 i 1 i 1 1 1 1 1 i i Notes: The City of Rosemead does not have revenue bonds; therefore, the Revenue Bond Coverage - Last Ten Fiscal Years schedule is not included. S T A T S C A L I 1 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 THIS PAGE INTENTIONALLY LEFT BLANK 1 74 CITY OF ROSEMEAD, CALIFORNIA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) ALL GOVERNMENTAL FUND TYPES Last Ten Fiscal Years Fiscal Public Public General Public Year Safety Works Government Health 1987-88 $3,397,611 $5,360,172 $1,354,625 $525,187 1988-89 3,651,535 7,624,877 1,611,328 605,353 1989-90 3,809,631 8,536,328 1,712,102 856,298 1990-91 3,994,221 6,374,969 2,215,912 1,014,349 1991-92 4,268,763 8,757,535 2,710,801 95,495 1992-93 4,264,366 3,598,687 2,429,325 1,677 1993-94 4,596,592 4,096,433 2,545,662 17,665 1994-95 4,666,871 4,400,953 1,918,204 39,852 1995-96 4,733,426 3,788,669 1,946,848 44,863 1996-97 4,922,197 3,349,572 i . 2,053,607 45,966 Public Recreation $1,409,388 1,529,628 1,775,194 1,838,493 1,959,686 1,858,238 1,719,424 1,901,397 1,869,684 2,144,066 (1) 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. fI I i 75 1 ' Community Services ' $906,17E ' 1,528,37E 1,510,545 2,070,346 ' 1,592,156 1,411,467 ' 2,092,836 2,090,216 ' 1,867,352 ' 1,976,965 $25 $20 $15 ' $10 ' $5 $0 Capital Debt Inter- Outlay Service governmental Other Total $36,184 $1,912,681 $339,240 $15,241,264 840,338 2,640,807 7,459 - 20,039,703 123,443 2,618,539 - - 20,942,080 160,397 2,602,350 - - 20,271,039 144,180 2,588,617 - - 22,117,233 36,384 2,569,813 580,791 213,721 16,964,469 1,897,838 6,026,877 175,295 (59,745) 23,108,879 1,713,742 2,279,153 175,330 2,210,624 21,396,342 119,184 2,271,154 - 180,000 16,821,180 47,683 2,271,333 - - 16,811,389 Millions 76 1992-93 1993-94 1994-95 1995-96 1996-97 ®Public Works WPublic Safety ®Debt Services ®General Govt. OPublic Recr. OComm. Serv. ®Misc. CITY OF ROSEMEAD, CALIFORNIA GENERAL REVENUES BY SOURCE (1) ALL GOVERNMENTAL FUND TYPES Last Ten Fiscal Years Fiscal Property Special Other Licenses Inter- Year Tax Assessments Taxes and Permits governmental 1987-88 $2,905,521 $241,257 $3,351,856 $512,699 $3,464,227 1988-89 3,921,667 273,777 3,591,798 496,966 4,518,697 1989-90 3,204,232 303,374 4,176,257 533,050 3,725,299 1990-91 3,059,892 347,061 4,245,201 479,084 4,557,510 1991-92 3,746,398 384,036 3,787,547 554,935 4,824,498 1992-93 3,379,446 395,646 3,866,690 579,124 5,174,436 1993-94 3,185,746 342,315 4,011,829 812,096 5,985,542 1994-95 3,411,909 386,814 3,907,616 699,234 6,733,543 1995-96 2,671,909 365,184 3,664,031 760,191 6,155,519 1996-97 2,845,775 382,609 3,952,511 760,037 7,532,960 (1) Includes General, Special Revenues, Capital Projects, and Debt Service Funds. 77 1 1 1 1 Fines, Use of Charges for Forfeitures Money and Services and Penalties Property Other Total $293,903 $449,495 $2,621,930 $212,503 $14,053,391 338,686 477,896 2,788,346 97,468 16,505,301 284,851 524,001 2,389,057 191,389 15, 331, 510 228,615 355,047 1,844,552 165,237 15,282,199 366,345 278,253 1,625,706 391,194 15,958,912 347,262 313,980 1,258,827 318,603 15,634,014 429,932 338,786 1,887,659 307,415 17,301,320 564,962 317,969 1,383,762 387,606 17,793,415 539,055 365,400 2,667,346 138,159 17,326,794 584,033 363,938 2,415,335 63,262 18,900,460 Millions $20 $15 $10 $5 $0 78 1992-93 1993-94 1994-95 1995-96 1996-97 ®Intergovt. Prop. Tax ®0ther Taxes =Use of M & P MMisc. OUc. & Permits ®Fnes, For. & Pen. CITY OF ROSEMEAD, CALIFORNIA OTHER TAX REVENUES BY SOURCE ALL GOVERNMENTAL FUND TYPES Last Ten Fiscal Years Fiscal Maintenance Real Estate Year District Taxes 1987-88 $2,155 $105,223 1988-89 2,200 147,115 1989-90 698 142,520 1990-91 1,157 62,734 1991-92 1,309 55,567 1992-93 2,427 38,974 1993-94 1,192 36,696 1994-95 1,336 36,739 1995-96 1,291 40,404 1996-97 1,575 47,904 ~ e Trailer Coach Tax 2,926 1,334 4,206 2,474 2,810 Sales and Use Tax $2,656,680 2,665,676 3,205,342 3,069,138 2,679,103 2,647,816 2,704,229 2,582,644 2,309,758 2,550,967 79 1 1 1 Transient Franchise Occupancy Fees Tax Total $336,628 $251,170 $3,351,856 461,620 312,261 3,591,798 494,223 332,140 4,176,257 556,710 551,256 4,245,201 525,327 523,767 3,787,547 547,920 626,743 3,866,690 550,555 719,157 4,011,829 568,020 718,877 3,907,616 577,004 735,574 3,664,031 574,497 777,568 3,952,511 80 CITY OF ROSEMEAD, CALIFORNIA ASSESSED VALUATIONS OF TAXABLE PROPERTY Last Ten Fiscal Years State Assessed Fiscal Personal Unitary and Operating (1) Year Land Improvements Property Non-unitary Property 1987-88 $423,556,926 $667,096,486 $60,746,385 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 I 160,638,918 1993-94 789,170,566 869,204,989 16,509,734 138,033,544 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 (1) Effective with fiscal year 1988-89, Unitary and Operating Non-unitary assessed valuation are listed separately. i Source: Los Angeles County Auditor-Controller, Tax Division 81 1 1 1 WY, Land Locally Assessed Improvements Personal Property Total Property Exemptions Net Property Value $11,518,291 $44,963,801 $1,207,881,889. $26,639,873' $1,181,242,016 - 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 NET PROPERTY VALUE Millions $2000 $1500 $1000 $500 $0 IW768 82 1a ,eaeea ,see, iwl- 1W2 1x-95 19 1% 7 CITY OF ROSEMEAD, CALIFORNIA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS LIGHTING AND MAINTENANCE DISTRICT Last Ten Fiscal Years Assessment Fiscal Year Levy 1987-88 $250,406 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 Current Assessment Collected $241,257 275,977 304,072 355,366 385,345 398,073 343,507 388,150 366,475 384,184 Percentage Collected Currently 96.35% 96.59 96.44 112.88 109.85 102.49 98.91 114.43 104.63 102.75 r 83 1 CITY OF ROSEMEAD, CALIFORNIA 1 COMPUTATION OF LEGAL DEBT MARGIN June 30, 1997 1 1 1 Total assessed valuation 1 Debt limit: 3.75% of total assessed valuation ' Amount of debt applicable to debt limit: Total bonded debt $35,905,000 Less tax allocation notes exempt by law 35,905,000 ' Total amount of debt application to debt limit 1 Legal debt margin I 1 1 1 1 1 1 1 1 1 84 $ 1,852,503,857 $ 69,468,895 $ 0 $ 69,468,895 CITY OF ROSEMEAD, CALIFORNIA RATIO OF ANNUAL DEBT SERVICE EXPENDITURE FOR TOTAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES i t I-f Last Ten Fiscal Years Debt Service Total (1) To Total Fiscal Total Debt General General Year Principal Interest Service' Expenditures Ex enditures p 1987-88 $1,000,000 $902,173 $1,902,173 $15,241,264 12.48 % 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 2,279153 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 (1) Includes all Governmental Fund Types. Premium for defeasement of bonds not included 85 0 0 0 D 0 a a 0 0 0 0 0 0 0 0 0 0 0 0 $25 $20 $15 $10 $5 $0 1987-88 $25. $20 $15 $10 $5 $0 1992-93 TOTAL B.ONDED-DEBT.TO TOTAL GENERAL EXPENDITURES . Millions . 86 1988-89 1989-90 1990-91 1991-92 Millions 1993-94 1994-95 1995-96 1996-97 CITY OF ROSEMEAD, CALIFORNIA RATIO OF ANNUAL DEBT SERVICE EXPENDITURE FOR TOTAL BONDED DEBT TO TOTAL ASSESSED VALUATION Last Ten Fiscal Years Debt Service Total To Total j Fiscal Total Debt Assessed Assessed Year Principal' .Interest Service - Valuation Valuation 1987-88 $1,000,000 $902,173 $1,902,173 $1,181,242,016 0.16 % 1988-89 1,420,000 1,218,143 2,638,143 1,227,774,062 0.21 1989-90 1,515,000 •11101,760 2,616,760 1,389,491,653 ' 0.19 1990-91 1,630,000 972,350 2,6021350 1,493,702;235 0.17 Y . 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 1,852,503,857 0.12 Z f 87 CITY OF ROSEMEAD, CALIFORNIA RATIO OF ANNUAL DEBT SERVICE EXPENDITURE FOR TOTAL BONDED DEBT PER CAPITA Last Ten Fiscal Years ' Fiscal Year Principal Interest 1987-88 $1,000,000 $902,173 1988-89 1,420,000 1,218,143 1989-90 1,515,000 1,101,760 ' 1990-91 1,630,000 972,350 ' 1991-92 1,760,000 828,617 1992-93 1,900,000 669,813 ' 1993-94 2,055,000 1,137,474 ' 1994-95 260,000 2,019,153 1995-96 265,000 2,006,154 ' 1996-97 280,000 1,991,333 1 88 Debt Service Total Debt Service Population To Total Population $1,902,173 47,425 $40.11 2,638,143 47,707 55.30 2,616,760 51,156 51.15 .2,602,350 52,247 49.81 2,588,617 52,812 49.02 2,569,813 52,922 48.56 3,192,474 53,798 59.34 2,279,153 53,639 42.49 2,271,154 54,487 41.68 2,271,333 55,128 41.20 CITY OF ROSEMEAD, CALIFORNIA PROPERTY TA X RATES - ALL OVERLAPPING GOVERNM ENTS , (Per $100 of Assessed Valuati . on) !V ( , Last Ten Fiscal Years , Los Los Angel es County , Fiscal City of Angeles School Water Flood Sanitation Year Rosemead County Districts Districts Control District Total 1987-88 0 1.005051 0.129215 0.064613 0.012257 0 1.211136 1988-89 0 1.002781 0.115568 0.048900 0.010487 0 1 177736 . , 1989-90 0 1.002242 0.109700 0.048900 0.006944 0 1.167786 1990-91 0 1.002104 0.072543 0.061533 0.005786 0 1.141966 ' 1991-92 0 1.001409 0.078219 0.044300 0.003397 0 1.127325 1992-93 0 1.001713 0.144909 0.014100 0.004212 0 1.164934 1993-94 0 1.001713 0.073026 0.044100 0.004212 0 1.123051 , 1994-95 0 1.001993 0.080512 0.038900 0.006041 0 1.127446 1995-96 0 1.001604 0 0.038900 0.001991 0 1.042495 ' 1996-97 0 1.001604 0 0.038900 0.001991 0 1.042495 Source: Tax Rates By Tax Rate Areas Los Angeles County Tax Collector 89 t . T'11MfN A:FY" .`VY[ti: }a'Y . CITY OF ROSEMEAD; CALIFORNIA ' SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT 1 1996-97 Assessed Valuation: 1 1 1 1 !J June 30, 1997 $1,473,253,335 (after deducting $241,004,234 redevelopment incremental valuation) Direct and Overlapping Tax and Assessment Debt: Ap plicable Debt 6/30197 Los An County 0.329 % $205,115 Los Angeles County Flood Control District 0.341 184,600 Metropolitan Water District 0.183 1,063,569 San Gabriel Valley Municipal Water District 0.005 270 Los Angeles County Regional Park and Open Space District 0.329 559,629 City of Rosemead 100.000 Total Direct and Overlapping Tax and Assessment Debt: $2,013,183 Overlapping General Fund Obligation Debt: Los Angeles County General Fund Obligations 0.329 % $6,079 873 Los Angeles County Pension Obligations 0.329 , 8,067,269 Los Angeles County Superintendent of Schools Certificates of Participation 0.329 26 023 Los Angeles County Flood Control District , Certificates of Participation 0.341 705 069 Los Angeles County Sanitation District #2 Authority 0.002 , 803 Los Angeles County Sanitation District #15 Authority 7.087 2,168,867 Los Angeles Community College District Certificates of Participation 0.285 188,656 Pasadena Area Community College Certificates of Participation 3.075 247,076 Montebello Unified School District Certificates of Participation 1.778 355,975 San Gabriel Unified School District Certificates of Participation 0.867 80,035 El Monte Union High School District Certificates of Participation 14.045 1,169,949 El Monte School District and Certificates of Participation 0.004 199 Rosemead School District Certificates of Participation 66.018 1716468 San Gabriel Valley Mosquito Abatement District Certificates of Participation 3.197 51,951 Total Gross Direct and Overlapping General Fund Debt: $20,858,213 Less: Los Angeles County Certificates of Participation (100% self-supporting from leasehold revenues on properties in Marina Del Rey) 399,719 Total Net Direct and Overlapping Bonded Debt: $20 458 494 Gross Combined Total Debt . $22,871,396 (1) Net Combined Total Debt $22,471,677 (1) Excludes tax and revenue anticipation notes, revenue, mortgage re venue and tax allocation bonds and non-bonded capital lease obligations. Ratios to Assessed Valuations: Direct Debt 0.00 % Total Overlapping Tax & Assessment 0.12 % Gross Combined Total Debt 1.55 % Net Combined Total Debt 1.53 % State School Building Aid Repayable as of 6/30/97: $ 71 Source: California Municipal Statistics, Inc. 1 90 CITY OF ROSEMEAD, CALIFORNIA DEMOGRAPHIC STATISTICS Last Ten Fiscal Years Fiscal Year Population Income Households Per Capita Unemploy- ment Rate - (1)_ (2) (3) (3) 1987-88 47,425 13,687 $17,863 5.4 % 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 6.9 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. 91 0 0 D a v 0 Iu' i 60 50 40 30 20 10 0 60 50 40 30 20 10 0 - I.. DEMOGRAPHIC STATISTICS Thousands Thousands 92 1987-88 1988-89 1989-90 199091 1991-92 Olncome Per Capita 0Households 0 Population 1992-93 1993-94 1994-95 1995-96 EDIncome PerCapita 13 Households OPopulation ?e` °.iQ. .il.?'.yC.'-4:ss'iaS~L.Y'9,s?'` rvGY`'•a'~°.~~;~.i_"'S d kz'-+=d 3"` MA_? CITY OF ROSEMEADI PRINCIPAL TAXPAYERS June 30, 1997 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 Assessed Valuation : Valuation $204;3191473 11.03 % 20,600,000 1.11 13,030,000 0.70 6,710,113 0.36 3,800,000 0.21 3,115,124 0.17 2,700,000 0.15 2,544,738 0.14 2,150,131 0.12 1,937,104 0.11 $260,906,683 114.10% 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-properly tax city. . 93 CITY OF ROSEMEAD, CALIFORNIA SCHEDULE OF INSURANCE IN FORCE ' June 30, 1997 ' Policy Expiration Number Date Type of Coverage ' Southern California Joint Powers Insurance Authority 07/01/97 General Liability State Compensation Insurance Fund 228962-90 12/31/97 Workers Compensation Coverage ' Kelley, Jiggins, Towle & Blue 05743382 10/10/98 Public Employees Blanket Bond Kelley, Jiggins, Towle & Blue 9922993-03 10/19/98 Boiler and Machinery ' Kelley, Jiggins, Towle & Blue 2781100 10/10/98 Notary Public Bond Error & Ommissions ' Kelley, Jiggins, Towle & Blue CP8119571C 07/01198 Property Insurance ' Source: City Finance Department 94 i CITY OF ROSEMEAD, CALIFORNIA CONSTRUCTION ACTIVITY ' Last Ten Fiscal Years i 1 Number of Building Permit Number of Fiscal Residential _ _Valuations (In Thousands) Building Year Dwelling Units Residential Nonresidential Total Permits Issued ! 1987-88 143 $15,384,272 $19,972,636 $35,356,908 737 1988-89 154 1 14,707,466 3,997,523 18,704,989 782 1989-90 76 14,571,516 15,132,741 29,704,257 794 i 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 i 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 i 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 1 i 1. i 1 1 9 i 5 I 1 CITY OF ROSEMEAD, CALIFORNIA ' MISCELLANEOUS STATISTICS ' June 30, 1997 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 55,128 ' Land Area 5.5 square miles Streets & Alleys 74.42 miles Parks 50 acres Percentage of Land Use: Residential 64 % ' Public Facilities 14 Commercial (stores & shops) 9 Mixed Commercial/Residential 7 ' Office & Light Industrial 6 100 % Public Facilities: ' Community Centers Swimming Pools 2 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 (swom personnel) 35 Major Employers and Number of Employees: Southern California Edison Company 3,500 ' California Federal Bank 450 Ball Corporation 400 Crown City Plating 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. I 96 i F51 o i 1 City of ROSEMAD 101 Pasad n 210 3 San Bernardino Los Angeles 05 1 0 1 '.,Riverside IS Anaheim S 1 L g Bea 05 1 o i . 1 1 F i San Di go ® 1 The CITY OF ROSEMEAD is located in LoslAngeles County, approximately nine 1 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 1 approximate population of 55,128, i 97 I G i 1 1 1 i 1 i 1 1 1 i 1 i 1 i i 1