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1996 CAFRI 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 CITY OF ROSEMEAD California COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 1996 I 1 I I 0 1 1 1 1 1 1 1 1 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1996 TABLE OF CONTENTS INTRODUCTORY SECTION page Letter of Transmittal 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 3 Combined Statement of Revenue, Expenditures and Changes in Fund Balances - All Governmental Fund Types 5 Combined Statement of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual - General, Special Revenue and Debt Service Fund Types 7 Statement of Revenue, Expenses and Changes in Fund Balance - Pension Trust Fund 10 Statement of Cash Flows - Pension Trust Fund 1 1 Notes to Financial Statements 12 Combining and Individual Funds and Account Groups Financial Statements (Supplementary Information): GENERAL FUND: Balance Sheet 32 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1996 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) Eagia Combining and Individual Funds and Account Groups (Supplementary Information): (cont.) GENERAL FUND: (cont.) Statement of Revenue, Expenditures and Changes in Fund Balance 33 Revenue Detail - Budget and Actual 34 Expenditure Detail - Budget and Actual 35 SPECIAL REVENUE FUNDS: Combining Balance Sheet - All Special Revenue Funds 40 Combining Statement of Revenue, Expenditures and Changes in Fund Balances - All Special Revenue Funds 42 Statement of Revenue, Expenditures and Changes in Fund Balance - Traffic Safety Fund 45 Statement of Revenue, Expenditures and Changes in Fund Balance - State Gas Tax Fund 46 Statement of Revenue, Expenditures and Changes in Fund Balance - Air Quality Management District 47 Statement of Revenue, Expenditures and Changes in Fund Balance - Local Transportation Fund 48 Statement of Revenue, Expenditures and Changes in Fund Balance - Public Transportation Fund 49 1 1 1 1 i 1 1 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1996 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) Eaga 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 50 Statement of Revenue, Expenditures and Changes in Fund Balance - 1976 Community Parklands Grant Fund 51 Statement of Revenue, Expenditures and Changes in Fund Balance - Street Lighting Fund 52 Statement of Revenue, Expenditures and Changes in Fund Balance - Narcotics Seizure Fund 53 Statement of Revenue, Expenditures and Changes in Fund Balance - Low-Moderate Income Housing Fund 54 Statement of Revenue, Expenditures and Changes in Fund Balance - Rosemead Housing Development Corporation 55 Statement of Revenue, Expenditures and Changes in Fund Balance - California Wildlife Fund 56 CAPITAL PROJECTS FUND: Balance Sheet - Capital Projects Fund 58 Statement of Revenue, Expenditures and Changes in Fund Balance 59 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1996 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) Raga 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 60 DEBT SERVICE FUND: Balance Sheet - Debt Service Fund 62 Statement of Revenue, Expenditures and Changes in Fund Balance 63 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual 64 FIDUCIARY FUND TYPES: Combining Balance Sheet 66 Combining Statement of Changes in Assets and Liabilities - All Agency Funds 67 ACCOUNT GROUPS: Statement of General Fixed Assets 70 Statement of Changes of General Fixed Assets 71 1 1 e CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1996 TABLE OF CONTENTS (cont.) STATISTICAL SECTION General Governmental Expenditures by Function - All Governmental Fund Types 74 General Revenues by Source - All Governmental Fund Types 76 Other Tax Revenues by Source - All Governmental Fund Types 78 Assessed Valuations of Taxable Property 80 Special Assessment Levies and Collections - Lighting and Maintenance District 82 Computation of Legal Debt Margin 83 Ratio of Annual Debt Service Expenditure for Total Bonded Debt to Total General Expenditures 84 Ratio of Annual Debt Service Expenditure for Total Bonded Debt to Assessed Valuation 86 Ratio of Annual Debt Service Expenditure for Total Bonded Debt Per Capita 87 Property Tax Rates - All Overlapping Governments 88 Schedule of Direct and Overlapping Bonded Debt 89 Demographic Statistics 90 Principal Taxpayers 92 Schedule of Insurance in Force 93 Construction Activity 94 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1996 TABLE OF CONTENTS (cont.) STATISTICAL SECTION (cont.) Miscellaneous Statistics Page. 95 Vicinity Map 96 0 a a 0 0 a e 0 a 0 t t N T R O D U C T I O N MAYOR: MARGARET CLARK ' MAYOR PRO TEM: JAY T. IMPERIAL COUNCILMEMBERS: JOE VASQUEZ ROBERT W. BRUESCH GARY A. TAYLOR I 0 U I I I December 1, 1996 The Honorable Mayor and Members of the Rosemead City Council Councilmembers: Ppsemcad 8838 E. VALLEY BOULEVARD • P.O. BOX 399 ROSEMEAD, CALIFORNIA 91770 TELEPHONE (818) 288-6671 TELECOPIER 8183079218 Submitted for your information and consideration is the Annual Financial Report for the fiscal year ended June 30, 1996. 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 I 1 11 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 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 54,487 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 1995-96 Administration: One of the priorities for the coming fiscal year will be an examination of the cumulative impact of "Proposition 218" (approved by the voters on November 5, 1996). Current General Fund revenue sources that may require voter approval include a 2% increase in the City's Transient Occupancy Tax (TOT), approved by the City Council in 1993, and a Street Lighting assessment paid by property owners in the north half of the City. The revenues from both total nearly $400,000 annually. However, the City staff is researching whether or not the latter will require voter ratification, thus limiting the potential revenue shortfall resulting from "Proposition 218" to less than $150,000 annually. During the past year, twenty-one (21) of the City's full-time employees voted to form a collective bargaining unit to be represented by the Service Employees International Union, Local 347. This is a new bargaining unit and the first in the City's history. The financial impact of this action will not be determined until meet and confer negotiations commence in early 1997. Additionally, the City during the past year resolved its outstanding issues with the Los Angeles County Community Development Commission with a one-time General Fund reimbursement of Community Development Block Grant (CDBG) expenditures made in Fiscal Year 1991-92 and Fiscal Year 1992-93. That settlement has eliminated an unfunded liability totalling $316,400. 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 forty-four (44) 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 ii 1 I 1 1 1 "C", and Redevelopment Agency monies. Ten (10) 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. Two (2) traffic signal modification projects were designed and awarded, 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. In order to avoid possible conflicts with the school operations, the projects will be constructed during the summer of 1996 after school is out for the season. In addition, several multi-year projects are in various phases of design. The projects 8 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. These projects will be under construction during the next couple years. Planning: During the past year, majority of the construction projects have been a residential. A 31-unit single family development is currently prepared to break ground at Del Mar Avenue and Graves Avenue. Other residential projects were generally two (2) to four (4) lot subdivisions and residential additions. Two (2) new institutional facilities opened in Rosemead over the past year. Alhambra School District's Adult School moved into anew office building on Garvey Avenue. The Hsi Lai University replaced the Narramore Christian College. Three (3) commercial projects were completed during Fiscal Year 1995-96. A Mobil gas station was demolished and replaced with a new MobilMart gas station. Rosemead Square, the City's largest retail center, undergone a facade remodeling and Garvey Wholesale Beverages relocated and cleaned up an old industrial site. Parks and Recreation: The City completed various park and recreation improvements 8 during the fiscal year. Rosemead Community Recreation Center improvements included replacement of an existing air conditioning and heating units and replacement carpet in the office. Rosemead Pool improvements included replastering and repainting the pool. Klingerman Park improvements included acquisition and installation of new play equipment. Garvey Park Improvements included rebuilding the play areas, replacing existing air conditioning and heating units, and regrading two (2) ball diamonds. ' Zapopan Park improvements included resurfacing existing basketball court and addition of a new court. I I iii. PROSPECTS FOR THE FUTURE The City continues in its ongoing efforts to reduce costs and its dependence on General Fund revenues for many services. While those efforts have been largely successful to date, some troubling trends remain as issues to be addressed in the coming fiscal year. Large sales tax producers, such as Toys R Us and Montgomery Ward have experienced "down" years, and the regional economic outlook, while improving, remains mixed. Future projects include the development of a 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 countywide 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 two (2) traffic signals at the intersection of Mission Drive and Incognita Avenue and New Avenue and Newmark Avenue. The Abilene Street reconstruction project will commence in Fiscal Year 1996-97. 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 City will utilize CDBG funds for the project. Storm drain improvements in San Gabriel Boulevard are proposed to be completed in Fiscal Year 1996-97. The project will.extend the existing storm drain system further south to address a poinding problem at the intersections of San Gabriel Boulevard and Fern Avenue and at Garvalia 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. Majority of the developments in the planning stages are from mini-malls and an expansion of existing retail center. Rosemead Community Recreation Center future improvements includes termite control and replacement floor machine. Rosemead Park improvements includes pre-fabricated iv t I i I LJ i i restrooms to replace existing facilities'. Rosemead Pool projects includes purchase of a new surge tank clay valve. i Garvey Park Improvements includes a purchase of a large capacity ride-on mover, i play equipments, and remodeling of the Clubhouse kitchen cabinets. Garvey Pool improvements includes re-tiling, sand and depth markers, recaulking interior pool, and re-tiling shower rooms. n I REPORTING ENTITY AND ITS SERVICES i The reporting entity is comprised of all funds and account groups of the City of Rosemead, Rosemead Redevelopment Agency, and Rosemead Housing Development i Corporation. i The Rosemead Redevelopment Agency finances streets, parks, and utility improvements within the Redevelopment project area as well as in some selected areas outside the project area which benefit the project area. The Rosemead Housing i 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, i street construction and maintenance, sanitation, building safety, parks and recreational facilities, and cultural services. i 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 i 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 i by County departments under contract with the City are police protection, street maintenance, and animal control. i REPORTING STANDARDS i 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. i FINANCIAL STATEMENT i The City requires that its financial statements be audited by a Certified Public i v i Accountant selected by the City Council. This requirement has been satisfied, and i the Auditor's opinion is included in the financial section of this report. i In addition, the City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management 'and Budget Circular A-128, "Audits of State and Local Governments." This requirement has also been satisfied and there were no material exceptions noted in the report. The Comprehensive Annual Report is divided into the following three sections: i 1. Introductory Section - which includes this transmittal letter, the City's i Organization Chart, and a list of the principal officials. 2. Financial Section - which includes the auditor's opinion, general purpose i financial statements, and the combining and individual fund and account group financial statements. i 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 i The Notes to the Financial Statements, which are part of the General Purpose i 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 i Development Corporation. The notes should be read along with the financial statements to gain a more thoroughly understanding of the information contained within this report. Your attention is specifically directed to the presentation of the City's significant accounting policies. The fiscal operations of the City are primarily accounted for in the Governmental i Funds which include the General, Special Revenue, Debt Service and Capital Project Funds The 1995-96 Fiscal Year revenues for the Governmental Fund types totaled i $17,326,794. Presented on the adjacent page are the revenues by major source, which includes the percentage each source represents of the total revenues and the i increase (decrease) from the prior year. i i i Vi I I I 0 I I d ' The most notable change in revenues is the increase shown in Use of Money and Property revenues, which is the result of 1994-95 investments in Guaranteed Investment Contracts. The most notable decrease in revenues is the Property Tax Increment and Special Assessments. The decrease in revenues is primarily due to taxpayer's refunds coupled with lower assessed valuations. The 1995-96 fiscal year expenditures for the Governmental Fund types totaled $16,821,180. Listed on the following page is a recapitulation of these expenditures by major function. The chart reflects expenditures by function as a percentage to the 8 in Public Safety function. Majority of the increase is due to additional traffic law enforcement deputies. The most notable expenditure decrease is the Other function, which primarily is due to prior year's investment losses. 1 1 total The most expenditures significant i and the increase in incremental expenditures change for 1995-96 from the prior over 1994-95 fiscal yearis reflected ' vii I GENERAL FUND 1 1 1 1 1 1 The City of Rosemead remains in a strong financial position as of June 30, 1996 with , a surplus of approximately eight million six hundred thousand dollars ($8.6 million). There was a residual equity transfer from the Street Lighting Fund of approximately ' two hundred seventy-four thousand dollars ($274,000). In fiscal year 1993-94 a similar residual equity transfer from the Street Lighting Fund amounted to five hundred thousand dollars ($500,000). GENERAL FIXED ASSETS I As of June 30, 1996, the general fixed assets of the City totaled thirteen million , seventy-four thousand three hundred nine dollars ($13,074,309). This amount represents the original cost of the assets, net of additions and deductions from July 1, 1995 to June 30, 1996, 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 1 ' ,r~~;s J7f;~'I4; .AU(+J~M'F~HC*Ai 1 ACCOUNTING SYSTEM 1 The City's accounting records are maintained on the modified accrual basis of accounting for the governmental fund types and agency funds. Revenue is recognized in the accounting period in which it becomes both available and measurable. Available means collectible within the current period or soon enough thereafter to pay current liabilities. The accrual basis of accounting is used for Pension Trust Fund, which recognizes revenues when earned and expenses when incurred. A system of internal accounting controls have been developed and regularly reviewed by the independent certified public accountant who audits the accounting records of the City. This system has been designed to provide reasonable, but not absolute assurance that: 1. Assets have been protected from losses arising from unauthorized use or disposition. 2. Financial records can be relied upon for preparing adequate financial statements and maintaining accountability for assets. 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. y. 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 a 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 e capital projects fund are included in the annual approved budget. Budgetary control is maintained at a functional level by division within departments O through use of object level account appropriations. Actual expenditures are compared to these appropriations. The City Manager is authorized to transfer budgeted amounts between funds within the same department. Any new appropriations must be authorized by City Council. All unexpended budgeted funds unexpended lapse at the end of the budget year. The exception is the capital projects fund because the budgeted appropriations relate to all future appropriations as well as current year appropriations. 1 I ix CASH MANAGEMENT The City and the Agency maintain separate cash and investment pools. Each fund's or fund's type's share of the pool balance is reported in the financial statements as "cash and cash investments." Earnings from the pooled investments are allocated monthly to each participating fund based on a formula that takes into consideration each fund's average investment in the pool. DEBT ADMINISTRATION The City of Rosemead, as a general law city, is restricted from incurring general obligation bonded indebtedness which would 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 refunded 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, 1996. The 1 1 1 I I J I -1 Il 1 X 1 B a City's 1996-97 estimated revenues and budgeted expenditures indicate that by June 30, 1997 the City will be approximately 38% of *the limit. OTHER INFORMATION The City of Rosemead was pleased to receive a Certificate of Award for Outstanding Financial Reporting from the California Society of Municipal Finance Offices (CSMFO) for the City's Comprehensive Annual Financial Report, Fiscal Year Ended June 30, 1995. 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 has been awarded this Certificate for the last seven (7) 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, 1995. 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. Xi 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. 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 1 1 1 I xii 1 1 ELECTED OFFICIALS: City Council: 8 APPOINTED OFFICIALS: CITY OF ROSEMEAD, CALIFORNIA CITY OFFICIALS June 30, 1996 Margaret F. Clark Mayor Jay T. Imperial Mayor Pro Tern Robert W.Bruesch ........................Councilman Gary A. Taylor Councilman Joe Vasquez .............................Councilman A Planning Commissioners: Merced 'Bill' Ortiz Chairman Duc Loi Vice Chairman William Alarcon Commissioner 1 Robert Breen Commissioner Rudolfo Ruiz Commissioner Traffic Commissioners: Holly Knapp Vice Chairman Frank E. Larson Commissioner Daniel Tirre Commissioner Victor Ruiz Commissioner Frank G.Tripepi City Manager Hubert E. Foutz City Treasurer Robert L. Kress ..............................................City Attorney Nancy Valderrama City Clerk I aiii 0 Q w w N O x LL O F U F- CC a x U J Q z O F Q N 2 Q U 2 O xiv 1 r r r r 8 8 r a r r r r a 0 r r r r v 'N o 'N 3 0 .'r U v \ CIN V y 'N U 'N ~V xv C c~ 0 G 4 ~ C G t `0 C ~ U ~ o ~ o C h l tdop L O ~ y 1 C a ® G r~ o $ 1~ e V ° y o O • - U L ~ C C d { U e v° 0 U 9 ti C C U Q 1 U U ti ti C C1 Ob 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, 1995 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. Ci~1N Preside t v Executive Director Yvi 1 1 J 1 1 1 1 1 1 i 1 1 i 1 C 1 1 1 1 1 1 8 a s v v a a F N A N C I A L I I ® McGLADREY&PULLEN, LLP . Certified Public Accountants and Consultants RSM 1 i 1 1 I I 8 INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Rosemead Rosemead, California 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, 1996. 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 "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, 1996, and the results of its operations and the cash flows of its pension trust fund for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated October 21, 1996 on our consideration of the City of Rosemead's internal control structure and a report dated October 21, 1996 on its compliance with laws and regulations. Our audit was made for the purpose of forming an opinion on the general purpose financial statements e taken as a whole. The combining, individual find 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. I ' San Bernardino, California October 21, 1996 ' Suite 300 140 South Lake Avenue Pasadena, California 91101-2651 ' (818) 795-7950 FAX(818)793-9820 Worldwide Services Through RSM International I 1 I THIS PAGE INTENTIONALLY LEFT BLANK I n 1 CITY OF ROSEMEAD, CALIFORNIA GENERAL PURPOSE FINANCIAL STATEMENTS YEAR ENDED JUNE 309 1996 1 I 1 1 I I O 0 I I 1 1 1 2 CITY OF ROSEMEAD, CALIFORNIA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1996 Assets and Other Debits Assets Cash and investments Receivables Due from other funds Property and equipment Other Debits Amount available in debt service fund Amount to be provided for retirement of general long-term debt Total assets and other debits 7 Governmental Fund Types ' Special Debt Capital General Revenue Service Projects S 7,975,718 S 5,378,192 S 2,344,150 S 19,298,152 ' 1,174.257 1,138,113 11,193 368,934 769 465 - - - , S 9.919.440 S 6,516305 S 2.355.343 S 19,667,086 Liabilities, Municipal Equity and Other Credits ' I IICU&h IJSUCU 111 CXCCJh UI UAl1A Udidl= Accounts payable and accrued liabilities Arbitrage rebate payable Due to other funds Due to other governmental agencies Deferred revenue Refundable deposits Deferred compensation Tax allocation notes and bonds Accrued vacation pay and compensatory time Accrued litigation settlement Total liabilities Municipal Equity and Other Credits Investment in general fixed assets Fund balance: Reserved: Lon. term receivable Debt service Low-moderate income housing Employees retirement Unreserved: Designated for: Capital projects Building and equipment replacement Litigation settlements Self-insurance Contingencies Undesignated Total municipal equity and other credits Total liabilities, municipal equity and other credits See Notes to Financial Statements. D - D - D - D - 1,124,846 326,286 477,807 - - 180,000 768,940 525 244,663 190,000 1,566 1,316,412 1,339,889 658,332 687,269 - - 2,355,343 3,967,172 - - - 19,008,754 1,720,000 - - - 750,000 - - - 280.000 - - - 2,680,000 - - - 2,485,759 1,209,244 - - 8.603,028 5,176,416 2,355,343 19,008,754 S 9,919,440 S 6,516,305 S 2,355,343 S 19,667,086 3 1 1 ' Fiduciary Fund Types Account Groups Total (Memor andum Only) ' Trust and General General Long-term Agency Fixed Assets Debt 1996 1995 ' $ 747,943 $ $ $ 35,744,155 $ 34,592,282 2,692,497 3,724,491 769,465 1,816,654 13,074,309 - 13,074,309 12,831,946 - 2,355,343 2,355,343 2,490,820 ' - - 34,217,633 34,217,633 34,334,786 $ 747,943 $ 13,074309 $ 36,572,976 $ 88,853,402 $ 89,790,979 $ $ $ $ - $ 894,599 1,928,939 1,515,319 ' 180,000 769,465 1,816,654 - 320,000 ' 244,663 242,938 86.228 - 86,228 104,592 435,630 - - 625,630 357,828 - 36,185,000 36,185,000 36,450,000 275,629 277,195 239,146 - 112,347 112,347 142,242 521,858 - 36,572,976 40,409,467 42,083,318 - 13,074,309 - 13,074,309 12,831,946 O _ - - 687,269 717,796 2,355,343 2,490,820 3,967,172 3,913,958 226,085 - 226,085 237,788 - - - 19,008,754 19,786,128 1,720,000 969,000 - 750,000 500,000 _ 280,000 280,000 - - 2,680,000 2,680,000 - - 3,695,003 3,300.225 226,085 13,074,309 48,443,935 47,707,661 $ 747,943 $ 13,074,309 $ 36,572,976 $ 88,853,402 $ 89,790,979 1 1 4 CITY OF ROSEMEAD, CALIFORNIA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES Year Ended June 30, 1996 Governmental Fund Types Revenue Property taxes and special assessments Other taxes Licenses and permits Intergovernmental Charges for services Fines, forfeitures and penalties Use of money and property Arbitrage rebate Other Expenditures Current: General government Public safety Public works Public health Public recreation Community service intergovernmental Capital outlay Debt service: Principal Interest Arbitrage rebate expenditure Investment loss Revenue over (under) expenditures Other Financing Sources (Uses) Operating transfers: From other funds (To) other funds Special Debt Capital General Revenue Service Projects S - S 365,184 S S 2,671,909 3,664,031 - - 760,191 - - - 3,177,566 2,977,953 - - 531,055 8,000 - - 303,930 61,470 - - 460,479 294,473 1,779 1,749,265 102536 165,314 - 31,659 8.999,788 3,872,394 1,779 4,452,833 1,808,268 94,723 - 43,857 4,419,427 313,999 - 63,806 1,863,689 1,861,174 44,863 - 1.868,823 861 955,219 912,133 55,206 63,978 265,000 2,006,154 - 180,000 9,215,612, 3,185,405 2,271,154 2,149,009 (215,824) 686,989 (2,269,375) 2303,824 1,157,737 224,782 2,133,898 j. (435,219) - (3,081,198) 1,157,737 (210,437) 2,133,898 (3,081,198) Revenue and other financing sources over (under) expenditures and other financing (uses) Fund Balance, beginning Residual Equity Transfer Fund Balance, ending See Notes to Financial Statements. 941,913 476,552 (135,477) (777,374) 7.387,388 ! 4,973,591 2,490,820 19,786,128 273,7271 (273,727) - - S 8,603,028 S 5,176,416 S 2,355,343 S 19,008,754 5 i , "f,' L . 1 Total (Memorandum Only) ' 1996 1995 ' S 3,037,093 S 3,798,723 3,664,031 3,907,616 760,191 699,234 6,155,519 6,733,543 ' 539,055 564,962 365,400 317,969 2,505,996 1,383,762 ' - 153,976 299,509 233,630 17,326, 794 17,793,415 1 ' 1,946,848 4,733,426 1,918,204 4,666,871 3,788,669 4,400,953 44,863 39,852 ' 1,869,684 1,901,397 1,867,352 2,090,216 - 175,330 119,184 1,713,742 265,000 260,000 2,006,154 2,019,153 180,000 2,364,600 16,821,180 21,550,318 o 505,614 (3,756,903) O 3,516,417 5,829,861 (3,516,417) (5,829,861) 505,614 (3,756,903) 927 34 637 94 38 830 , , , 3 S 35,143,541 S 34,637,927 ' 6 I CITY OF ROSEMEAD, CALIFORNIA COMI3INED 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, 1996 General Special Revenue ' Over (Under) Revenue Budget Actual Budget Budget Actual Property taxes and special assessments Othertaxes 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 Appropriations reserves Capital outlay Debt service: Principal Interest Arbitrage rebate expense Revenue over (under) expenditures Other Financing Sources (Uses) Operating transfers: From other funds (To) other funds Revenue and other financing sources over (under) expendi- tures and other financing (uses) Fund Balance, beginning Residual Equity Transfer Fund Balance, ending See Notes to Financial Statements. $ - $ - $ - $ 360,000 $ 365,184 ' 3,883,000 3,664,031 (218,969) - - 817,100 760,191 (56,909) - - 3AU70 3,177566 176,696 4,099,555 2,977,953 472,290 531,055 58,765 8,000 5,000 , 229,500 303,930 74,430 60,000 61,470 330,200 460,479 130,279 162,050 294,473 89,650 102,536 12,886 150,150 165.314 ' 8,822,610 8,999,788 177,178 4,839,755 3,872,394 1,706,589 1,808,268 101,679 17,600 94,723 4,566,570 4,419,427 (147,143) 346,860 313,999 85,120 63,806 (21,314) 3,322,962 1,863.689 ' 40,000 44,863 4,863 - - 2,198,729 1,868,823 (329,906) - 861 1,378,403 955,219 (423,184) 1,246,430 912,133 73,352 - (73,352) - ' 39,254 55,206 15,952 10,088,017 9,215,612 (872,405) 4,933,852 3,185,405 (1,265,407) (215,824) 1,049,583 (94,097) 686,989 , 1,097,300 1,157,737 60,437 224,782 ' - - - (435219) 1,097,300 1,157,737 60,437 (210,437) 1 S (168,107) 941,913 $ 1,110,020 $ (94,097) 7,387,388 273,727 S 8,603,028 476,552 ' 4,973,591 (273,727) 1 $ 5,176,416 . 1, 7 1 1 t, I Special Revenue Debt Service Capital Projects Over (Under) Over (Under) Over (Under) Budget Budget Actual Budget Budget Actual Budget ' S 5.184 S = S = S S 3,303,540 S 2,671,909 S (631.631) (1,121,602) - - - - - - 1.470 _ 131423 130,000 1,779 (128221) 685,080 1,749,265 1.064.185 15,164 31,659 3E659 (967,361) 130,000 1,779 (128,221) 3,988,620 4,452,833 464,213 ' 77,123 52,400 43,857 (8,543) (32,861) - - (1,459,273) 3,995,400 1,861,174 (2,134.226) 861 ' (334,297) 64,200 63,978 (222) = 265,000 265,000 _ _ 2,005,503 2,006,154 651 - - - - 180,000 180.000 (1,748,447) 2270,503 2,271,154 651 4,112,000 2,149,009 (1,961991) 781,086 (2,140,503) (2,269,375) (128,872) (123,380) 2,303,824 2,427,204 224,782 2,270,503 2,133,898 (136,605) (435,219) - - (3367,803) (3,081,198) 286.605 (210,437) 2270,503 2,133,898 (136,605) (3,367,803) (3,081,198) 286,605 fAtr, S $ 570.649 S 130,000 (135,477) S (265,477) S (3,491,183) 2,490,820 (777,374) $ 1713,809 19,786,128 1 I S 2,355.343 S 19,008,754 1 8 CITY OF ROSEMEAD, CALIFORNIA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE, DE13T SERVICE AND CAPITAL PROJECT FUNDS, CONTINUED June 30, 1996 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 Appropriations reserves Capital outlay Debt service: Principal Interest Arbitrage rebate expense J I Total (Memorandum Only) Over (Under) ' Actual Budge[ $ 3,663,540 S 3,037,093 S (626,447) 3,883,000 3,664,031 (218,969) 817,100 760,191 (56,909) 7,100,425 6,155,519 (944,906) 480290 539,055 58,765 289,500 365,400 75,900 1,307,330 2,505,996 1,198,666 239,800 299,509 59,709 17,780,985 17,326,794 (454,191) 1,776,589 1,946,848 170,259 4,913,430 4,733,426 (180,004) 7,403,482 3,788,669 (3,614,813) 40,000 44,863 4,863 2,198,729 1,869,684 (329,045) 2,624,833 1,867,352 (757,481) 73,352 - (73,352) 103,454 119,184 15,730 1 1 i I 265,000 265,000 - 22005,503 2,006,154 651 t - 180,000 180,000 21,404,372 16,821,180 (4,583,192) Revenue over (under) expenditures Other Financing Sources (Uses) Operating transfers: From other funds (To) other funds Revenue and other financing sources over (under) expendi- tures and other financing (uses) Fund Balance, beginning Residual Equity Transfer Fund Balance, ending See Notes to Financial Statements. (3,623387) 505,614 4,129,001 3,367,803 3,516,417 148,614 (3,367,803) (3,516,417) (148,614) S (31623,387) 505,614 S 4,129,001 34,637,927 $ 35,143,541 1 I 9 1 CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF REVENUE, EXPENSES AND CFIANGES IN FUND BALANCE - PENSION TRUST FUND Year Ended June 30, 1996 Operating revenue, interest and other investment income $ 12,645 Operating expenses: ' Administrative fees 3,629 Pension benefits 20,719 . 24,348 Net (loss) (11,703) ' Fund balance, beginning 237,788 ' Fund balance, ending $ 226,085 See Notes to Financial Statements. o 0 e ' 10 CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF CASH FLOWS - PENSION TRUST FUND Year Ended June 30, 1996 ish Flows from Operating Activities Net (loss) Adjustments to reconcile net (loss) to net cash (used in) operating activities: Administrative expenses payable Unrealized interest and investment income Net cash (used in) operating activities 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. 11 1 $ (11,703) 3,629 ' (12,645) (20,719) ' 20,719 t e t t CITY OF ROSEMEAD, CALIFORNIA ' NOTES TO FINANCIAL STATEMENTS Note 1. Reporting Entity, A'ature 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 Agency has 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 1 12 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 1. Reporting Entity, Nature of Operations, Dese-iption of Funds and Account Groups, and Significant Accounting Policies, Continued Measurement Focus, Basis of Accounting and Basis of Presentation The accounts of the City and its component units are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The 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 on general long-tern debt, which is recognized when due, and certain compensated absences and claims and judgments, whict are recognized when the obligations are expected to be liquidated with expendable available financial resources. In determining when to recognize intergovernmental revenue (grants, subsidies and shared revenue), the legal and contractual requirements of the individual programs are used as guidance. There are, however, essentially two bases for this revenue recognition. In one, moneys must be expended on the specific purpose or project before any amounts will be paid to the City; therefore, revenue is recognized based upon the expenditures recorded. In the other, moneys are virtually unrestricted as to purpose of expenditure and nearly irrevocable, i.e., revocable only for failure to comply with prescribed compliance requirements, e.g., equal employment opportunity. These resources are reflected as revenue at the time of receipt, or. earlier if they meet the criterion of availability. Other major revenue that is determined to be susceptible to accrual includes taxes and interest. Major revenue that is determined not to be susceptible to accrual because it is either not available soon enough to pay liabilities of the current period or not objectively measurable include licenses, permits, fines and forfeitures. Expenditures are recorded when the liability is incurred, except for interest on long-term debt and sick pay, which are recorded when paid. Vacation pay is recorded as an expenditure in the year it is earned, to the extent it is paid in that year or within 90 days after year end; otherwise, it is recorded as an expenditure when it is paid. Estimated losses on insurance claims are charged to expense in the period the loss is determinable. 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. 13 CITY OF ROSEMEAD, CALIFORNIA ' NOTES TO FINANCIAL STATEMENTS Note 1. Reporting Entity, Nature of Operations, Description of Funds amt Account Groups, and Significant Accounting Policies, Continued ' The General Fund accounts for all financial resources except those required to be accounted for in another fund. These resources are devoted to financing the general services that the City performs for its ' citizens. Special Revenue Funds account for the proceeds of specific revenue sources (other than special ' assessments, expendable trusts and major capital projects) that are legally restricted to expenditures for specified purposes. The Special Revenue Funds and their purposes are as follows: ' The Traffic Safety Fund accounts for the receipt of vehicle code fines which are expended for traffic safety enforcement. The State Gas Tax Fund accounts for funds collected from the State of California which are used for street construction, street maintenance, engineering and administrative costs. ' The Air Quality Management District Fund accounts for the City's share of automobile registration fees collected from the State by the South Coast Air Quality Management District. The funds are used in improving transportation systems and to reduce reliance on private vehicles. 1 The Local Transportation Fund accounts for State grants used to finance the construction of bikeways and sidewalks. The Public Transportation Funds account for the Citys'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. B The 1976 Community Parklands Grant Fund accounts for funds to be used for park projects. The Street. Lighting Fund accounts for the operation of street lights within the City. The Narcotics Seizure Fund accounts for the funds. received from the County of Los Angeles from the confiscation of cash and other valuables seized during drug related police raids. The funds are used to. further enhance the City's drug related crime prevention and detection programs. e 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.. 1 1 14 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS A'ote 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant Accounting Policies, Continued 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 Fi_ved Assets Account Group is used to account for the City's fixed assets. The General Long-term Debt Account Group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary or trust funds. 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 eamings are allocated based on the source of funds. 15 V U I I t1 1 I I 0 U U 0 I 1 C 1 1 1 1 t CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant Accounting Policies, Continued Receivables Property taxes attach as an enforceable lien on property as of March I. Taxes are levied on July I and are payable in two installments on December 10 and April 10. The County of Los Angeles bills and collects the property taxes and remits them to the City in installments during the year. Property taxes received within 60 days after the City's fiscal year end are considered "measurable" and "available" and are accrued in the City's financial statements. All other receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible. Property and equipment All property and equipment of the City are accounted for in the general fixed assets account group. Public domain (infrastructure) general fixed assets, consisting of certain improvements other than buildings, such as roads, sidewalks and bridges, are not capitalized. Property and equipment acquired or constructed for general governmental operations are recorded as expenditures in the fund making the expenditure and capitalized in the general fixed assets account group. All general fixed assets which were purchased or constructed are stated at cost. Assets acquired by gift or bequest are recorded at their fair market value at the date of transfer. No depreciation is recorded on general fixed assets. Fund balances The reserved portion of the fund balances represents that amount which has been legally identified for the specific purpose or it represents that amount which is not available to liquidate current liabilities. The unreserved portion represents the amount available for budgeting future operations. Vacation pay and compensatory time City employees accumulate vacation hours which may be paid upon termination, death or retirement. Employees can accumulate up to three weeks of accrued vacation per year depending on the length of employment. Employees can accumulate up to 160 hours of sick leave. Any hours in excess of 160 are considered to be vested and are paid to the employee based on a vesting schedule. In addition, employees can accrue compensatory time. The vested portion of vacation and sick leave by employees at June 30, 1996 that is expected to be paid within 90 days after year end is included in accrued liabilities in the General Fund. The-amount not expected to be paid within 90 days is included in the General Long-term Debt Account Group. 16 I CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note]. Reporting Entity, Nature of Operations, Description of Funds mtd Account Groups, and Significant Accounting Policies, Continued "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 1995 totals presented in the "Memorandum Only" columns are included to provide a summarized comparison with comparable 1996 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 expenditures for the year ended June 30, 1995 have been reclassified, with no effect on net revenue over expenditures, to be consistent with the classifications adopted for the fiscal year ended June 30. 1996. Note Z Budget Matters The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and estimated revenue for all governmental fund types. Budgets presented in this report for comparison to actual amounts are presented in accordance with generally accepted accounting principles. Reported budget amounts represent the original adopted budget as amended. 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. I I I I I I 0 I D Q I I 1 I I I I 17 1 b'TL 1 e 0 8 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 3. Carh and Investments The components of cash and investments at June 30, 1996 are as follows: Cash in bank $ 2376,633 Time certificates of deposit 2,457,771 Cash subtotal 4,834,404 Other investments 4,146,825 Cash with fiscal agent 2,344,152 Guaranteed issuance contracts 14,583,729 Investment in State Treasury's Investment Pool 9,173,331 Investment in annuity contracts 661,714 Cash and investments total $ 35,744;155 Cash At year end, the carrying amount of the City's and Agency's deposits (i.e., cash in bank and time certificates of deposit) was $4,834,404 and'[he bank balance was $4,916,112. Of the $4,916,112 bank balance, $480,935 was covered by federal depository insurance, and $4,435,177 was uninsured and uncollateralized. 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 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a collateral value of'] 50% 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 find'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. Investments include cash with fiscal agent for $2,344,152, which is invested in a guaranteed insurance contract which accrues interest monthly at an interest rate of 5.8%, maturing October 1, 2013. 18 I CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 4. Cash and Investments, Continued Investments in annuity contracts included $226,085 and $435,629 invested in the Pension Trust Fund and Deferred Compensation Plan, respectively. These investments were carried at market value. Investments also included $14,583,729 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. Investment Type U.S. govern ment and government agency securities State and municipal bonds Corporate bonds Cash with fiscal agent Guaranteed Investment Contracts Investment in State Treasurer's Invest- ment Pool Total other investments Category Carrying Market 2 3 Amount Value 5 S - S 2,067,732 S 2,067,732 S 2,107,430 D D 0 I I I I 890,520 890,520 892,000 1,188.573 1,188,573 1,077,956 S S S 4.146,825 4,146,825 4,077,386 2,344,152 2,344,152 14,583,729 14,583,729 9,173,331 9,173,331 $ 30,248,037 $ 30,178,598 The three preceding risk description categories are defined as follows: Category Investments that are insured, registered or for which the securities are held by the City or its agent in the City's name. 2 Uninsured and unregistered investments for which the securities are held by counter- party's trust department (if a bank) or agent, in the City's name. d 3 Uninsured and unregistered investments for which the securities are held by counter- party's Trust Department (if a bank) or agent, but not in the City's name. I I I I 1 1 I 19 I 1 [1 I I I CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 4. Receivables Receivables as of June 30, 1996 consist of the following: Special General Revenue 1; Capital Debt Service Projects Total Property tax increment S - S - Accrued interest 117.080 46.663 Due from local utility companies'"' 687,269 - Due from other governmental agencies 133,197 1,091,450 Transient occupancy tax 193,267 - Other 43,444 - S - S 25,252 S 25,252 11,193 343,682 518,618 687,269 1,224,647 193,267 43,444 S 1,174,257 $ 1,138,113 S 11,193 S 368,934 S 2,692,497 During the year ended June 30, 1987, the Agency approved a reimbursement agreement with a local utility company, advancing the utility company funds required to install a water line and a water main extension. The total amount advanced was $493,807. The Agency then contributed the receivable to the City at the present valued amount. The City is to collect this receivable from the utility company in 40 annual installments of $12,345, with the final installment due June 30, 2027. 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 $212,43 L' The 0 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. 1 1 1 20 CITY OF ROSEMEAD, CALIFORNIA 0 NOTES TO FINANCIAL STATEMENTS Note 5. Interftind Receivables and Pgvables lnterfund receivables and payables as of June 30, 1996 are as follows: m lnterfund Funds Receivables Pavables General Fund $ 769,465 $ Special Revenue Funds: Traffic Safety 8,158 v Local Transportation Fund - Community Development Block Grant 759,382 Narcotics - California Wildlife Grant 1,400 768,940 Capital Projects Fund - 525 $ 769,465 $ 769,465 m Note 6. Property and Equipment Changes in property and equipment during the year ended June 30, 1996 were as follows Balance. Balance, June 30, 1995 Acquisitions Disposals June 30, 1996 Land $ 2,893,234 $ $ S 2,893,234 Buildings and improvements 7,384,369 70,163 - 7,454,532 Vehicles 240,940 36,972 25,648 252,264 Furniture and office equipment 981,840 144,432 - 1,126,272 Special equipment and machinery 494,247 1,168 495,415. Other improvements 837,316 15,276 852,592 $ 12,831,946 $ 268,011 $ 25,648 S 13,074,309 Note 7. Employee Pension Plans 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 contributions to this plan for the fiscal year ended June 30, 1996. 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 $226,085 as of June 30, 1996. I 21 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS I Note 7. Employee Pension Plats, Continuer! ' 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. 1995 was $1,175,661 and total payroll was $1,757,783. 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. PERS also provides death and disability benefits to participating employees. ' 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 remaining contribution 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 meluded 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, 1995 as part of an actuarial,-. valuation performed. Significant actuarial assumptions used to determine the pension benefit obligation include: S 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 22 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, 1995 is as follows: Pension benefit obligation: Retirees and beneficiaries receiving benefits and terminated employees not yet receiving benefits $ 319,611 Current employees: Accumulated employee contributions including allocated investment eamings $ 224,349 Employer-financed, vested 1,447,675 Employer-financed, nonvested 29,574 1,701,598 Total pension benefit obligation 2,021,209 Net assets available for benefits, at cost (market value $2,000,984) 1,882,394 Unfunded pension benefit obligation $ 138,815 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. i' 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. 23 0 0 I I 0 I I I I I O I 1 0 1 1 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS 1 !Vote 7. Employee Pension Plans, Continued The contribution to the plan for the fiscal year ended June 30, 1996 totaling $183,055 was made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1995. The contribution consisted of: Normal cost (6.761% of current covered payroll) $ 79,894 Amortization of the unfunded actuarial accrued liability (8.73% of current covered payroll) 103,161 ' $ 183,055 ' Amounts contributed on behalf of: City (8.491% of current covered payroll) 100,337 Employees (7% of current covered payroll) 82,718 ' $ 183,055 T d i ti ren nforma on 1 Trend information Gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Historical information for the years available 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 June30 for Benefits Obligation Refunded Obligation Payroll Payroll Pa roll a y 1993 $ 1,148,500 $ 288,240 398.3 % $ (860260) S 1,318,110 (65.3) % 15.491 % 1994 1.580,000 1,814,350 87.1 234,340 1,301,610 18.0 15.491. 1995 1,882,390 2,021,200 93.1 138,810 1,331,870 10.4 15.491 Showing unfunded pension benefit obligation as a percentage of annual covered payroll a pproximately Q adjusts for the effects of inflation for analysis purposes. I 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 $435,630 at June 30, 1996. 1 24 I CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 8. Deferred Compensation Agreements, Continued 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. 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. U A H 0 0 0 D 0 0 I 1 1 i 1 1 I 25 1 I 0 I I I O 1 1 0 1 1 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 10. Long-term Debt Ta-v allocation bonds, Series 1993 A and B In November 1993, the Rosemead Redevelopment Agency issued tax allocation bonds in the amount of $34,275,000 (Series 1993A) and taxable tax allocation refunding bonds in the amount of $2,435,000 (Series 1993B) to finance a portion of the cost of the redevelopment area known as Project Area No. 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: $812342 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 aliseitces totaling $275,629 which is. not expecte& to be paid from available resources is reported in the General Long-term Debt Account Group. Other long-tern[ debt The City has included amounts in the long-term debt group of accounts for the litigation settlement. The following is a summary of the general long-term debt transactions for the year ended June 30, 1996:. Accrued Tax Allocation. Tax Allocation Vacation and - Bonds Series Bonds Series Litigation Compensaton 1993A 19938 Settlement Time Total Balance, June 30, 1995 $ 34,275,000 S 2,175,000 S 142,242 S 233,364 $ 36,825,606 Payments of principal - (265,000) - - (265,000) Additions 42,265 42,265 Reductions in settlement (29,895) - (29,895) Balance, June 30, 1996 $ 34,2751000 S 1,910,000 S 112,347 S 275,629 S 36,572,976 26 CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 10. Long-terse Debt, Continued ■I The annual requirements, principal and interest to amortize the outstanding debt as of June 30, 1996 are as follows: i During the Year Ending June 30, 1997 1998 1999 2000 2001 Years thereafter Accrued Series 1993 Vacation and A and B Litigation Compensa- Bonds Settlement tory Time Interest Total Q 0 i • $ 280,000 $ 35,574 S 275,629 S 2,006,477 $ 2,597,680 295,000 37,666 - 1,989,427 2,322,093 310,000 39,107 - 1,971,450 2,320,557 a 330,000 - - 1,951,663 2.281,663 345,000 - 1,932,853 2,277,853 34,625,000 - - 41,759,430 76,384,430 S 36,185,000 $ 112,347 S 275,629 S 51.611,300 S 88,184.276 Defeasance ojprior debt The Agency has advance refunded prior bond issues, which are considered defeased and, accordingly, D the long-term debt liability has been removed from the general Iona 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, 1996, $19,215.000 of bonds outstanding are considered defeased. 27 1 e ya r CITY OF ROSEMEAD, CALIFORNIA I NOTES TO FINANCIAL STA Note 11. Budget Overexpenditures and Deficit ' Expenditures exceeded Appropriations for the year ended June 30, 1996 in the following departments: Amount ' of Over- Appropriations Expenditures expenditures General Fund ' Travel and meetings $ 18,000 $ 27,753 $ 9,753 City administration 451,480 671,716 220,236 City clerk 71,150 71,833 683 ' City treasurer 12,000 12,875 875 City garage 30,540 32,154 1,614 Animal regulation 50,000 51,443 1,443 Narcotics forfeiture 90 90 Street lighting 192 192 Traffic signs and striping maintenance - 890 890 ' Aquatics 292,000 297.355 5,355 Capital outlay 39,254 55,206 15,952 Traffic Safety Fund Public safety 60,000 61,470 1,470 Community Parklands Grant Fund Public recreation - 861 861 Note 12. Commitments and Contingent Liabilities O Low-moderate Income Housing Set-aside Fund O 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 through June 30, 1991 and during the fiscal years ended June 30, 1994, 1995 and 1996 e 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 laws. As of June 30, 1996, 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. 1 28 I CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Nate 12. Conunihments and Contingent Liabilities, Continued 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 [he 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 30, 1996 was $112,347. This amount is included in the City's long-term debt account group as of June 30, 1996. 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 City 6f Rosemead has denied the claim. An application for leave to file a late claim was also denied. At the present, there is not enough information to assess the ultimate outcome. Advance agreement In February 1996, the Agency approved an agreement with a local utility company to advance the utility company $117,600 required to install water'distribution mains within the Agency redevelopment area. The agreement was put on hold by the Agency and, as of October 21, 1996, the agreement continues to remain on hold. Note 13. Pronouncement Issued But Not Yet Adopted In November 1994, the Governmental Accounting Standards Board 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, with early implementation encouraged. The City has not completed its assessment of the effect that the adoption of Statement No. 27 will have on its financial statements. 1 29 1 CITY OF ROSEMEAD, CALIFORNIA COMBINING AND INDIVIDUAL FUNDS AND ACCOUNT GROUPS FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1996 I THIS PAGE INTENTIONALLY LEFT BLANK 30 0 I I 0 D 0 0 0 I I 1 i 1 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 D 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. 31 1 CITY OF ROSEMEAD, CALIFORNIA GENERAL FUND 1 BALANCESHEET June 30, 1996 1 1 1996 1995 ASSETS C h d i 1 as an nvestments $7,975,718 $5,460,274 Receivables 1,174,257 1,807,728 Due from other funds 769,465 1,126,693 1 Total Assets $9,919,440 $8,394,695 1 LIABILITIES AND MUNICIPAL EQUITY Liabilities: 1 Accounts payable and accrued liabilities $1,124,846 $681,525 Due to other governmental agencies - 320,000 Deferred compensation 190,000 - Accrued vacation pay and compensatory time 1,566 5,782 Total Liabilities $1,316,412 $1,007,307 1 Municipal Equity and Other Credits: Fund Balance: 1 Reserved: Long-term receivable $687,269 $717,796 1 Unreserved: Designated: Building and equipment replacement 1,720,000 969,000 1 Litigation settlements 750,000 500 000 , Self-insurance Contingencies Undesignated Total Fund Balance Total Liabilities, Municipal Equity and Other Credits 32 I 280,000 280,000 2,680,000 2,680,000 2,485,759 2,240,592 $8,603,028 $7,387,388 $9,919,440 $8,394,695 i 1 ' CITY OF ROSEMEAD, CALIFORNIA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30 1996 , 1996 1995 REVENUES: Other Taxes $3,664,031 53,907,616 Licenses and permits 760,191 699,234 ' Intergovernmental 3,177,566 2,928,590 Charges for services 531,055 548,962 Fines, forfeitures and penalties 303,930 280,636 Use of money and property 460,479 289,451 Other 102,536 146,262 Total Revenue $8,999,788 $8,800,751 EXPENDITURES: Current: General government $1,808,268 $1,725,808 Public safety 4,419,427 4,335,271 t Public works 63,806 87,381 Public health 44,863 39,852 Public recreation 1,868,823 1,767,173 Community service 955,219 1,204,558 Capital outlay 55,206 53,433 Total Expenditures $9,215,612 $9,213,476 Revenue over (under) expenditures ($215,824) ($412,725) OTHER FINANCING SOURCES (USES): Operating transfers: From other funds $1,157,737 $1,371,557 (To) other funds (252,106) t l Oth T Fi i S U $1 157 737 $1 119 45 o a er nanc ng ources ( ses) , , , , 1 ' Revenues and Other Financing Sources over (under) expenditures $941,913 $706,726 ' FUND BALANCE, BEGINNING 7,387,388 6,680,662 Residual equity transfer 273,727 FUND BALANCE, ENDING $8,603,028 $7,387,388 ' 33 CITY OF ROSEMEAD, CALIFORNIA GENEBALFUND REVENUE DETAIL - BUDGET AND ACTUAL Fiscal Year Ended June 30, 1996 Over (Under) Budget Actual Budget 1994 TAXES Maintenance district $1,500 $1,291 ($209) $1,336 Real estate transfer tax 35,000 40,404 5,404 36,739 Trailer coach fees 500 - (500) - Sales and use tax 2,550,000 2,309,758 (240,242) 2,582,644 Franchise fees 576,000 577,004 1,004 568,020 Transient occupancy tax 720,000 735,574 15,574 718,877 $3,883,000 $3,664,031 ($218,969) $3,907,616 LICENSES AND PERMITS Business license fees $40,000 536,547 ($3,453) $39,676 Building permit fees 630,000 525,405 (104,595) 470,999 Public work permit 37,000 62,941 25,941 67,206 Tentative map fees 12,500 8,610 (3,890) 2,186 Development review fees 1,000 5,767 4,767 3,116 Final map fees 16,000 33,229 17,229 23,485 Occupancy permit fees 55,000 55,987 987 56,370 Sewer connection 22,000 29,513 7,513 34,095 Strong motion fees 2,000 2,192 192 2,101 Rehabilitation permit fees 1,600 - (1,600) $817,100 $760,191 ($56,909) $699,234 INTERGOVERNMENTAL Financial aid to local agencies $850,000 $1,037,006 $187,006 $807,644 Motor vehicle in lieu tax 2,150,000 2,071,934 (78,066) 1,959,222 Other vehicle taxes 870 852 (18) 869 COPS Grant - 56,774 56,774 _ Other State grants - 11,000 11,000 160,855 53,000,870 $3,177,566 $176,696 $2,928,590 CHARGES FOR SERVICES Filing and certification fees $35,000 $59,410 $24,410 $47,858 Other current charges 179,180 224,124 44,944 225,940 Environmental impact reports 100 - (100) 400 Recreation fees 231,060 235,175 4,115 224,286 Assessments 4,100 6,510 2,410 25,363 Special community events 22,850 5,836 (17,014) 25,115 $472,290 5531,055 $58,765 $548,962 FINES, FORFEITURES AND PENALTIES Court Imes and forfeitures 5229,500 5303,930 $74,430 $280,636 USE OF MONEY AND PROPERTY Interest earned on investments $275,000 $403,084 $128,084 $227,893 Rental Income 55,200 57,395 2,195 61,558 $330,200 $460,479 $130,279 $289,451 OTHER SANE program $45,000 $32,077 ($12,923) $42,124 Repairs to and sale of City property 1,100 6,274 5,174 1,107 Miscellaneous 43,550 64,185 20,635 103,031 $89,650 $102,536 $12,886 $146,262 Total Revenues $8,822,610 _58,999,788 $177,178 $8.800.751 I 34 I 1 11 I 1 I 1 I I B I I I CITY OF ROSEMEAD, CALIFORNIA GENERALFUND EXPENDITURE DETAIL - BUDGET AND ACTUAL Fiscal Year Ended June 30, 1996 Over (Under) Budget Actual Budget 1995 GENERAL GOVERNMENT Travel and meeting $18,000 $27,753 $9,753 $24,392 City council 68,540 64,427 (4,113) 59,961 City administration 451,480 671,716 220,236 456,339 City clerk 71,150 71,833 683 83,456 Finance 223,857 204,522 (19,335) 205,309 City treasurer 12,000 12,875 875 13,022 City attorney 146,000 95,584 (50,416) 163,829 General government buildings 404,200 361,008 (43,192) 390,979 Community promotion 280,822 266,396 (14,426) 299,868 City garage 30,540 32,154 1,614 28,653 $1,706,589 $1,808,268 $101,679 $1,725,808 PUBLIC SAFETY Law enforcement $4,281,960 $4,173,429 ($108,531) $4,083,079 Animal regulation 50,000 51,443 1,443 47,553 Parking control 121,400 115,200 (6,200) 118,484 Crossing guard 89,210 76,862 (12,348) 75,743 Emergency services 24,000 2,211 (21,789) 10,412 Narcotics forfeiture - 90 90 - Street lighting - 192 192 - $4,566,570 $4,419,427 ($147,143) $4,335,271 PUBLIC WORKS Engineering mid administration $36,620 535,875 ($745) $48,992 Street and highway construction 48,500 27,041 (21,459) 3,219 Traffic signs and striping maintenance - 890 890 35,170 $85,120 $63,806 ($21,314) $87,381 PUBLIC HEALTH Public health services $40,000 $44,863 $4,863 $39,852 PUBLIC RECREATION Administration $181,359 $176,641 (54,718) $168,235 Parks 1,150,480 824,550 (325,930) .740,400 Recreation 570,990 566,891 (4,099) 549,923 Aquatics 292,000 297,355 5,355 305,294 Dinsmoor Heritage House 3,900 3,386 (514) 3,321 $2,198,729 $1,868,823 ($329,906) $1,767,173 COMMUNITY SERVICE Planning $204,395 $172,956 ($31,439) $218,723 Building regulation 525,700 448,651 (77,049) 378,261 Engineering 304,600 250,551 (54,049) 227,979 Community improvements 343,708 83,061 (260,647) 379,595 $1,378,403 $955,219 ($423,184) $1,204,558 CAPITAL OUTLAY $39,254 $55,206 $15,952 $53,433 APPROPRIATION RESERVES $73,352 ($73,352) Total Expenditures $10,088,017 $9,215,612 (5872,405) $9,213,476 35 THIS PAGE INTENTIONALLY LEFT BLANK 3F 1 1 1 1 1 D a 0 D 1 1 1 1 1 1 1 1 1 i i 1 1 SPECIAL REVENUE FUNDS Special Revenue Funds account for the proceeds of specific revenue sources (other than 1 special assessments, expendable trusts and major capital projects) that are legally restricted to expenditures for specified purposes. 1 1 1 I e 1 1 i 1 i 37 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 FUND Established to account for the City's share of additional sales tax collected in the County of Los Angeles as a result of Proposition A and C. The funds are used to finance public transportation projects. COMMUNITY DEVELOPMENT BLOCK GRANT FUND Established to account for Community Development Block Grants received from the United States Department of Housing and Urban Development. 1976 COMMUNITY PARKLANDS GRANT FUND Established to account for funds to be used for park projects. STREET LIGHTING FUND Established to account for the operation of street lights within the City. 38 i I I 0 I 0 Q I 1 1 I I I 1 SPECIAL REVENUE FUNDS (cont'd) 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 1 1 I 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. 1 39 CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30,1996 Air Quality Local Public Community Traffic State Management Trans- Trans- Development Safety Gas Tax District portation portation Block Grant Fund Fund Fund Fund Fund Fund ASSETS Cash and cash investments $ - $440,906 $165,974 $ - $442,979 $155,000 Receivables 8,158 8,000 15,100 94,044 966,148 Due from other funds Total Assets $8,158 $448,906 $181,074 $537,023 $1,121,148 LIABILITIES AND MUNICIPAL EQUITY Liabilities: Accounts payable $ - $84,847 $20,455 S_ $76,324 $117,103 Due to other funds 8,158 759,382 Deferred revenue - - - - - 244,663 Total Liabilities 58,158 $84,847 $20,455 $76,324 $1,121,148 Municipal Equity: Reserved for low-moderate income housing $ - $ _ S_ $ _ $ _ $ _ Unreserved, undesignated 364,059 160,619 460,699 Total Equity $ - $364,059 $160,619 $460,699 $ - Total Liabilities and Municipal Equity $8,158 $448 906 $181,074 $537,023 $1,121,148 40 1976 Community Low-Moderate Rosemead ' Parklands Grant Street Lighting Narcotics Seizure Income Ifous- ing Set-Aside Housing Development California Wildlife Fund Fund Fund Fund Corporation Grant ' $41,293 $110,348 $10,287 $3,920,509 $89,460 $1,436 46,663 ' $41 293 $110 348 $10 287 $3 172 967 $89 460 $1 436 , , , , , , , $10,287 $17,270 1,400 $10,287 $ - $17,270 $1,400 ' $ - S_ S_ $3,967,172 S- 41,293 110,348 72,190 36 ' $41 293 $110 348 $ 967 172 $3 $72 190 $36 , , - , , , $41,293 $110 348 $10,287 $3,967,172 $89,460 $1,436 1 ' 41 Totals 1996 1995 $5,378,192 $4,826,440 1,138,113 1,514,753 0 689,961 $6 516 305 $7 031 154 $326,286 $647,898 768,940 1,166,727 244,663 242,938 $3,967,172 $3,913,958 1,209,244 1,059,633 $5,176,416 $4,973,591 $6,516,305 $7,031,154 CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Fiscal Year Ended June 30, 1996 Air Quality Local Public Traffic State Management Trans- Trans- Safety Gas Tax District portation portation Fund Fund Fund Fund Fund REVENUES: Special assessments $ - Intergovernmental - 951,914 58,175 41,264 970,492 Charges for services - 8,000 Fines, forfeiture and penalties 61,470 Use of money and property - 21,937 16,890 Other - 166 Total Revenues $61,470 $981,851 $58,341 $41,264 $987,382 EXPENDITURES: Current: General government $ - $ - $ _ $ _ $ _ Public safety 61,470 Public works - 960,289 41,160 806,663 Public Recreation Community services 7,503 3,762 Capital outlay _ Investment loss - Total Expenditure $61,470 $967.792 $44,922 $806,663 Revenue over (under) expenditures $ - $14,059 $13,419 $41,264 $180,719 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 (85,219) $ - $ - $ - ($85,219) $ - $14,059 $13,419 ($43,955) $180,719 350,000 147,200 43,955 279,980 $364,059 $160,619 $460,699 42 1 11% ' 1 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 ' $365,184 956,072 ' 2,130 302 253,214 165,148 ' $956,072 $2,130 $365,184 $302 $253,214 $165,148 $ - $ - $ $ $94,723 ' 206,155 46,374 55,577 - ' 900,868 861 - ' $956 445 $861 $206 155 , , $46,374 $94,723 ' ($373) $1,269 $159,029 ($46,072) $253,214 $70,425 $373 $ - $ - 24,409 $ - $200,000 ' (200,000) (150,000) $373 $ - $ - $24,409 ($200,000) $50,000 ' $1,269 $159,029 ($21,663) $53,214 $120,425 40,024 225,046 21,663 3,913,958 (48,235) ' 273,72 $41,293 $110 348 $3,967,172 $72,190 ' 43 CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Fiscal Year Ended June 30, 1996 California Wildlife Grant REVENUES: Special assessments $ - Intergovernmental 36 Charges for services - Fines, forfeiture and penalties - Use of money and property - Other - $36 EXPENDITURES: Current: Capital outlay Investment loss - $36 Totals 1996 1995 $365,184 2,977,953 8,000 61,470 294,473 165,314 $3,872,394 $386,814 3,804,953 16,000 37,333 266,945 41,671 $4,553,716 $94,723 313,999 1,863,689 861 912,133 $3,185,405 $686,989 $119,497 331,600 2,960,435 134,224 885,658 461,876 1,637,238 $6,530,528 ($1,976,812) OTHER FINANCING SOURCES (USES): $224,782 (435,219) ($210,437) $2,314,443 (2,486,594) ($172,151) $36 FUND BALANCE, BEGINNING RESIDUAL EQUITY TRANSFER - FUND BALANCE, ENDING $36 $476,552 4,973,591 (273,727) $5.176.416 44 ($2,148,963) 7,122,554 $4,973,591 D a a O a 1 CITY OF ROSEMEAD, CALIFORNIA TRAFFIC SAFETY FUND STATEMENT,OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ' Fiscal Year Ended June 30, 1996 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 1995 $60,000 $61,470 $1,470 $37,333 $60,000 S61,470 $1,470 $37,333 $60,000 $61,470 $1,470 $37,333 560,000 S61,470 51,470 $37,333 S- S - $ $ $ S- S- S- a5 CITY OF ROSEMEAD, CALIFORNIA STATE GAS TAX FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1996 REVENUES: Intergovernmental Charges for services . Use of money and property Total Revenues EXPENDITURES: Public Works Community Services Total Expenditures Revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds Revenue and other financing sources over(under)expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Over (Under) Budget Actual Budget 1995 $842,500 $951,914 $109,414 5940,006 8,000 8,000 16,000 1,200 21,937 20,737 18,515 5851,700 $981,851 $130,151 $974,521 $1,090,300 5960,289 ($130,011) $988,799 7,500 7,503 3 8,561 $1,097,800" $967,792 (5130,008) $997,360 (5246,100) 514,059 $260,159 ($22,839) S- (5246,100) $14,059 5260,159 (522,839) 43,188 350,000 306,812 372,839 6202,9121 $364.059 S566,971 5350.000 46 b.r:r lu ~'4'1.i ' CITY OF ROSEMEAD, CALIFORNIA AIR QUALITY MANAGEMENT DISTRICT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ' Fiscal Year Ended June 30, 1996 ' Over (Under) Budget Actual Budget 1995 REVENUES: ' Intergovernmental Use of money and property $60,000 $58,175 3,600 ($1,825) (3,600) $60,026 Other 150 166 16 ' Total Revenues $63,750 S58,341 ($5,409) $60,026 EXPENDITURES: ' Public works $160,000 S41,160 ($118,840) $14,513 Community Services 3,762 3,762 1,261 ' Total Expenditures $160,000 $44,922 ($115,078). $15,774 Revenues over(under)expenditures (596,250) 513,419 ($109,669) $44,252 OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds S. $ - $ - $ - Revenue and other financing s ources ' over(under)expenditures (596,250) $13,419 $109,669 $44,252 FUND BALANCE, BEGINNING 125,350 147,200 21,850 102,948 FUND BALANCE, ENDING 529,100 5160,619 5131,519 $147,200 47 CITY OF ROSEMEAD, CALIFORNIA LOCAL TRANSPORTATION FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1996 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) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Over (Under) Budget Actual Budget 540,113 541,264 $1,151 850 (850) 540,963 S41,264 5301 S- S- S- S- S- 541,264 (5301) S- (585,219) (585,219) S- (543,955) ($84,918) 43,955 43,955 S- S- S- 48 1 1 1 1 1995 1 0 $0 $113,218 1 $113,218 ($113,218) 1 1 5113,218 S- 1 43,955 $43.955 1 1 1 1 1 i 1 1 CITY OF ROSEMEAD, CALIFORNIA ' PUBLIC TRANSPORTATION FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1996 REVENUES: ' Intergovernmental Use of money and property ' Total Revenues EXPENDITURES: ' Current: Public works Community services Capital Outlay 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 5950,000 5970,492 $20,492 4,700 16,890 12,190 5954,700 5987,382 $32,682 51,104,650 (S149,950) $806,663 $180,719 $1,009,481 18,442 $1,027,923 (5297,987) $1,197,781 (5330,669) ($149,950) $180,719 5330,669 176,343 279,980 103,637 526 393 $460,699 5434,306 49 (S169,858) 5- (5169,858) 449,838 $279,980 CITY OF ROSEMEAD, CALIFORNIA COMMUNITY DEVELOPMENT BLOCK GRANT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1996 REVENUES: Intergovernmental Total Revenues EXPENDITURES: Current Public works Community services Capital Outlay 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 52,206,942 S956,072 ($1,250,870) 82,206,942 5956,072 (51,250,870) 5968,012 555,577 ($912,435) 1,238,930 900,868 (338,062) $2,206,942 5956,445 ($1,250,497) S- (!3373)(S373) 5373 5373 S- S- S- S- S- 50 a 1995 D $1,329,695 a $1,329,695 a 5449,280 O 875,836 4,702 $1,329,818 ($123) $123 S ' 1 CITY OF ROSEMEAD, CALIFORNIA ' 1976 COMMUNITY PARKLANDS GRANT FUND STATEMENT-OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ' Fiscal Year Ended June 30, 1996 REVENUES: Intergovernmental Use of money and property Total Revenues EXPENDITURES: ' Public Recreation Total Expenditures ' Revenues over (under) expenditures ' OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds ' Revenue and other financing sources over (under) expenditures ' FUND BALANCE, BEGINNING FUND BALANCE, ENDING Over (Under) Budget Actual Budget 1995 $o $12,400 2,130 2,130 4,225 $2,130 $2,130 $16,625 $861 5861 $23,215 $861 $861 $23,215 $1,269 $1,269 ($6,590) S- S- $1,269 $1,269 ($6,590) 25,064 40,024 14,960 46,614 $25,064 $41293 $16,229 $40,024 51 CITY OF ROSEMEAD, CALIFORNIA STREET LIGHTING FUND , STATEMENT OF REVENUE, EXPENDITURES A ND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1996 ' , Over (Under) Budget Actual Budget 1995 , REVENUES: Special Assessment 5360,000 5365,184 $5,184 $386,814 Total Revenues 5360,000 5365,184 $5,184 5386,814 ' EXPENDITURES: Public safety 5236,000 5206,155 (S29,845) $245,446 Total Expenditures 5236,000 $206,155 ($29,845) $245,446 Revenues over (under) expenditures $124,000 5159,029 535,029 5141,368 OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds _ S- $ _ $ _ $ _ Revenue and other financing sources over (under) expenditures 5124,000 5159,029 535,029 5141,368 FUND BALANCE, BEGINNING 208,378 225,046 16,668 83,678 ' RESIDUAL EQUITY TRANSFER - (273,727) FUND BALANCE, ENDING 5332,378 5110,348 $51,697 $225,046 ' S S 2 5 CITY OF ROSEME.AD, CALIFORNIA ' NARCOTICS SEIZURE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1996 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 Over (Under) Budget 1995 S- $o S- 302 302 3,655 S- 5302 $302 $3,655 $50,860 $46,374 ($4,486) 548,821 550,860 $46,374 (54,486) 548,821 (550,860) ($46,072) S4,788 (S45,166) S - 524,409 S- ($50,860) ($21,663) 54,788 (545,166) 14,429 21,663 7,234 66,829 ($36,431) S- 512,022 521,663 53 CITY OF ROSEMEAD, CALIFORNIA LOW-MODERATE INCOME HOUSING FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1996 REVENUES: Use of money and property Total Revenues Budget $151,700 Over (Under) Actual Budget 1995 $253,214 $101,514 $222,108 $253,214 $101,514 $222,108 EXPENDITURES: General government Investment loss 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 S- $150 461,876 S- $462,026 $151,700 $253,214 $101,514 ($239,918) ($200,000) ($200,000) ($2,200,000) $151,700 4,267,903 $4,419,603 $53,214 3,913,958 53,967,172 ($98,486) (353,945) (S452,431) ($2,439,918) . 6,353,876 $3,913,958 ' CITY OF ROSEMEAD, CALIFORNIA ' ROSEMEAD HOUSING DEVELOPMENT CORPORATION STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ' Fiscal Year Ended June 30, 1996 ' REVENUES: ' Other Total Revenues EXPENDITURES: General government ' Capital Outlay Total Expenditures ' Revenues over (under) expenditures ' OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds ' Total Other Financing Sources (Uses) Revenue and other financing sources over(under)expenditures FUND BALANCE, BEGINNING ' FUND BALANCE, ENDING Over (Under) Budget Actual Budget 1995 5150,000 $165,148 $15,148 $41,671 5150,000 5165,148 515,148 $41,671 $17,600 594,723 $77,123 $119,347 - 1,632,536 $17,600 $94,723 $77,123 $1,751,883 $132,400 570,425 561,975 ($1,710,212) S- S50,000 $50,000 S2,060,000 S- 550,000 $50,000. $2,060,000 $120,425 S 120,425 $349,788 (48,235) (48,235) (398,023) S- _ S72-,190 $72,190 (548,235) 55 ' CITY OF ROSEMEAD, CALIFORNIA CALIFORNIA WILDLIFE FUND ' STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1996 ' ' Over (Under) Budget Actual Budget 1995 REVENUES: Intergovernmental S- S36 S36 $92,654 Total Revenues S- S36 S36 $92,654 EXPENDITURES: Public Recreation S- S- S- $93,217 Total Expenditures S- S- $93,217 S Revenues over (under) expenditures S- S36 $36 (5563) , OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds S- S- S. 5563 Revenue and other financing sources over (under) expenditures S36 S36 S- FUND BALANCE, BEGINNING FUND B ALANCE, ENDING S36 S36 S- t I 56 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. 57 CITY OF ROSEMEAD, CALIFORNIA CAPITAL PROJECTS FUND BALANCESHEET June 30, 1996 ASSETS 1996 1995 Cash and investments Receivables Due from other funds Total Assets LIABILITIES AND MUNICIPAL EQUITY $19,298,152 368,934 $21,217,659 298,016 $19,667,086 $21,515,675 Liabilities: Checks in excess of bank balance $ $894,599 Accounts payable and accrued liabilities 477,807 185,896 Arbitrage rebate payable 180,000 Due to City of Rosemead 525 225,478 Due to other funds 423,574 Total Liabilities Municipal Equity and Other Credits: Fund Balance: Unreserved: Designated for capital projects Total Fund Balance Total Liabilities, Municipal Equity and Other Credits $658,332 $1,729,547 19,008,754 $19,008,754 $19,667,086 i 19,786,128 $19,786,128 $21,515,675 58 CITY OF ROSEMEAD, CALIFORNIA ' CAPITAL PROJECTS FUND STATEMENT OF REVENUE, EXPENDITURES ' AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1996 REVENUES: Property tax increment Interest ' Other Total Revenue ' EXPENDITURES: Current: 1 Improvements to project area Professional fees City administrative services Intergovernmental Arbitrage rebate (credit) Capital outlay Investment loss Total Expenditures Revenue over (under) expenditures ' OTHER FINANCING SOURCES (USES): Proceeds from sale of bonds, net of discounts of $701,815 1 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 59 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 S- (3,081,198) ($3,081,198) ($777,374) 19,786,128 $19,008,754 $3,411,909 624,549 45,697 $4,082,155 $1,353,137 66,462 6,437 175,330 (153,976) 23,071 1,902,724 $3,373,185 $708,970 (3,091,161) ($3,091,161) ($2,382,191) 21,948,754 219,565 $19,786,128 CITY OF ROSEMEAD, CALIFORNIA CAPITAL PROJECTS FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE -'BUDGET AND ACTUAL Fiscal Year Ended June 30, 1996 Over (Under) Budget Actual Budget 1995 REVENUE Property taxes and special assessments $3,303,540 $2,671,909 ($631,631) $3,411,909 Use of money and property 685,080 1,749,265 1,064,185 624,549 Other 31,659 31,659 45,697 $3,988,620 $4,452,833 $464,213 $4,082,155 EXPENDITURES Improvements to project area $3,595,400 $1,861,174 ($2,134,226) $1,353,137 Professional fees 52,400 43,857 (8,543) 66,462 City administrative services 734,172 Intergovernmental - 175,330 Arbitrage rebate expense 180,000 180,000 (153,976) Capital outlay 64,200 63,978 (222) 23,071 Investment loss _ - 1,902,724 $4,112,000 $2,149,009 ($1,962,991) $4,100,920 Revenue over(under)expenditures ($123,380) $2,303,824 $2,427,204 ($18,765) OTHER FINANCING SOURCES (USES): Proceeds from sale of bonds, net of discounts of $701,815 Operating transfers: From other funds (To) other funds (3,367,803) (3,081,198) 286,605 (2,143,861) Total Other Financing Sources (Uses) ($3,367,803) ($3,081,198) $286,605 ($2,]43,861) Revenue and other financing sources over(under)expenditures ($3,491,183) ($777,374) $2,713,809 ($2,162,626) FUND BALANCE, BEGINNING 17,963,253 19,786,128 1,822,875 21,948,754 FUND BALANCE, ENDING $14,472 070 $19,008,754 $4,536,684 $19,786,128 60 1 i i i i i 1 i 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. 61 CITY OF ROSEMEAD, CALIFORNIA DEBT SERVICE FUND BALANCESHEET June 30, 1996 1996 1995 ASSETS Cash and investments with fiscal agent $2,344,150 $2,390,426 Receivables 11,193 100,394 Total Assets $2,355,343 $2,490,820 LIABILITIES AND MUNICIPAL EQUITY Liabilities: Accounts payable and accrued liabilities Total Liabilities Municipal Equity and Other Credits: Fund Balance: Reserved: Debt service $2,355,343 $2,490,820 Total Fund Balance $2,355,343 $2,490,820 Total Liabilities, Municipal Equity and Other Credits $2,355,343 $2,490,820 62 1 CITY OF ROSEMEAD, CALIFORNIA ' DEBT SERVICE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1996 ' REVENUES: Interest Total Revenue EXPENDITURES: Debt service: Principal Interest Certificate of refunding Issuance costs Total Expenditures ' Revenue over (under) expenditures OTHER FINANCING SOURCES (USES): ' Proceeds from sale of bonds, net of discounts of $701,815 Payments to refunding escrow agent ' 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 63 1996 1995 $1,779 $202,817 $1,779 $202,817 $265,000 $260,000 2,006,154 2,019,153 $2,271,154 $2,279,153 ($2,269,375) ($2,076,336) 2,133,898 2,143,861 $2,133,898 ($135,477) 2,490, 820 $2,355,343 S2,143,861 $67,525 2,423,295 $2,490,820 CITY OF ROSEMEAD, CALIFORNIA DEBT SERVICE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Fiscal Year Ended June 30, 1996 REVENUE Interest Other EXPENDITURES Issuance Costs Debt Service: Principal Interest Certificate refunding Revenue over (under) expenditures OTHER FINANCING SOURCES (USES): Proceeds from sale of bonds, net of discounts of $701,815 Advance refunding Operating transfers: From other funds (To) other funds Total Other Financing Sources (Uses) Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Over (Under) Budget Actual Budget 1995 $130,000 $1,779 ($128,221) $202,817 $130,000 $1,779 ($128,221) $202 817 , 2,005,503 2,006,154 651 2,019,153 265,000 265,000. 260,000 $2,270,503 $2,271,154 $651 $2,279,153 ($2,140,503) ($2,269,375) ($128,872) ($2,076,336) 2,270,503 2,133,898 (136,605) 2,143,860 $2,270,503 $2,133,898 ($136,605) $2,143,860 $130,000 ($135,477) ($265,477) $67,524 5,335,805 2,490,820 (2,844,985) 2,423,296 $5,465,805 $2,355,343 ($3,110,462) $2,490.820 64 i. 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. C-5 CITY OF ROSEMEAD, CALIFORNIA FIDUCIARY FUNDS COMBINING BALANCE SHEET June 30,1996 ASSETS Cash and cash investments Receivables Total Assets LIABILITIES AND MUNICIPAL EQUITY Liabilities: Due to other funds Refundable deposits Deferred compensation Total Liabilities Municipal Equity: Fund balance, reserved for employees' retirement Total Liabilities and Municipal Equity Pension Agency Funds Trust Refundable Deferred Fund Deposits Compensation Totals 1996 1995 $226,085 586,228 $435,630 5747,943 $697,483 3,600 $226,085 $86.228 $435,630 $747.943 $701.083 86,228 435,630 $ - $86,228 $435,630 $226,085 5 - $ - $226,085 $86.228 5435,630 $875 86,228 104,592 435,630 357,828 $521,858 $463,295 5226,085 $237,788 $747,943 $701 083 66 ' CITY OF ROSEMEAD, CALIFORNIA ' ALL AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ' ASSETS AND LIABILITIES Fiscal Year Ended June 30 1996 , 1 Balance Balance July 1, 1995 Additions Deductions June 30, 1996 ' REFUNDABLE DEPOSIT FUND: Assets Cash and cash investments $101,867 $27,230 $42,869 $86,228 Receivable 3,600 3,600 ' Total Assets $105,467 $27 230 $46,469 $86,228 Liabilities ' Refundable deposits $104,592 $27,230 $45,594 $86,228 875 875 ' $105,467 $27,230 $46,469 $86,228 EMPLOYEES DEFERRED COMPENSATION FUND: Assets Cash and cash investments $11,777 $8,327 $11,400 $8,704 ' Investments in deferred compensation plan 346,051 80,875 426,926 ' Total Assets $357,828 $89,202 $11,400 $435,630 Liabilities Deferred compensation $357,828 $89,202 $11,400 $435,630 ' E7 THIS PAGE INTENTIONALLY LEFT BLANK 68 1 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. 69 CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF GENERAL FIXED ASSETS June 30, 1996 1996 1995 General Fixed Assets Land $2,893,234 $2,893,234 Buildings and improvements 7,454,532 7,384,369 Vehicles 252,264 240,940 Furniture and office equipment 1,126,272 981,840 Special equipment and machinery 495,415 494,247 Other improvements 852,592 837,316 Total General Fixed Assets $13,074,309 $12,831,946 SOURCES OF FUNDS Beginning Balance $12,831,946 $10,840,705 General Fund 29,851 37,830 Community Development Block Grant 0 54,767 Community Parklands Grant 0 1,353 California Wildlife Grant 0 84,010 Redevelopment Agency 212,512 180,664 Rosemead Housing Development Corporation 1,632,617 Ending Balance $13,074,309 $12,831,946 70 ' CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF CHANGES OF G ENERAL FIXED ASSETS ' Fiscal Year Ended Ju ne 30, 1996 Balance Balance Function and Activity July 1, 1995 Additions Deletions June 30, 1996 Land Prior year balance $2,893,234 $2,893,234 Housing Development Corporation ' Total land $2 893 234 $2 893 234 , , , , Buildings and improvements Prior year balance $3,470,907 $3,470,907 General government 11,971 - - 11,971 Community Services 50,064 - - 50,064 ' Public Recreation 1,991 - - 1,991 Redevelopment Agency 379,568 70,163 449,731 Housing Development Corporation 3,469,868 - - 3,469,868 Total buildings and improvements $7,384,369 $70,163 $7,454,532 Vehicles Prior year balance $230,588 $230,588 General government 12,716 36,972 25,648 24,040 Transportation (2,364) (2,364) ' T t l hi l $240 940 $36 972 $25 648 $252 264 a ve c es o , , , , Furniture and office equipment ' Prior year balance $793,682 $793,682 General government 32,092 1,742 33,834 Community Development 9,496 130 9,626 Cultural & leisure 2,255 211 2,466 Redevelopment Agency 144,315 142,349 286,664 Total furniture and office equipment $981,840 $144,432 $1,126,272 Special equipment and machinery ' Prior year balance $490,765 $490,765 Cultural & leisure 3,482 1,168 4,650 Total special equipment and machinery $494,247 $1,168 $495,415 Other improvements Prior year balance $748,492 $748,492 Public Safety 9,464 9,464 ' Cultural & leisure 88,824 5,812 94,636 Total other improvements $837,316 $15,276 $852,592 1 T l l f d 3 9 genera ixe ota assets $12,8 1, 46 $268,011 $25,648 $13,074,309 71 THIS PAGE INTENTIONALLY LEFT BLANK 72 t t t t t t t t t t t t t t t t t Notes: The City of Rosemead does not have revenue bonds; therefore, the Revenue Bond Coverage - Last Ten Fiscal Years schedule is not included. S T A T S T C A L 11 1 1 1 THIS PAGE INTENTIONALLY LEFT BLANK 73 CITY OF ROSEMEAD, CALIFORNIA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) ALL GOVERNMENTAL FUND TYPES Last Ten Fiscal Years Fiscal Public Public General Public Public Year Safety Works Government Health Recreation 1986-87 $3,311,878 $7,576,458 $1,228,759 $375,345 $1,483,732 1987-88 3,397,611 5,360,172 1,354,625 525,187 1,409,388 1988-89 3,651,535 7,624,877 1,611,328 605,353 1,529,628 1989-90 3,809,631 8,536,328 1,712,102 856,298 1,775,194 1990-91 3,994,221 6,374,969 2,215,912 1,014,349 1,838,493 1991-92 4,268,763 8,757,535 2,710,801 95,495 1,959,686 1992-93 4,264,366 3,598,687 2,429,325 1,677 1,858,238 1993-94 4,596,592 4,096,433 2,545,662 17,665 1,719,424 1994-95 4,666,871 4,400,953 1,918,204 39,852 1,901,397 1995-96 4,733,426 3,788,669 1,946,848 44,863 1,869,684 (1) General Governmental expenditures includes expenditures of the General, Special Revenue Capital Projects, and Debt Service Funds only. Operating Transfers Out have been exclude from all years. 74 1 ' Community Services $1,239,472 ' 906,176 1,528,378 1,510,545 2,070,348 1,592,156 ' 1,411,467 2,092,838 ' 2,090,216 ' 1,867,352 ' $25 $20 ' $15 $10 $5 $0 Capital Debt Inter- Outlay Service govemmental Other Total $1,319,863 $16,535,507 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 Millions 75 1991-92 1992-93 1993-94 199495 1995-96 MPublic Works NPublic Safety ®DebtServices ®General Govt. MPublic Recr. Comm. Serv. ®Misc. CITY OF ROSEMEAD, CALIFORNIA GENERAL REVENUES BY SOURCE (1) ALL GOVERNMENTAL FUND TYPES Last Ten Fiscal Years Fiscal Property Special Other Licenses Year Tax Assessments Taxes and Permits 1986-87 $4,235,972 $215,186 $3,048,707 $480,52 1987-88 2,905,521 241,257 3,351,856 512,69 1988-89 3,921,667 273,777 3,591,798 496,96 1989-90 3,204,232 303,374 4,176,257 533,05 1990-91 3,059,892 347,061 4,245,201 479,08 1991-92 3,746,398 384,036, 3,787,547 554,93 1992-93 3,379,446 395,646 3,866,690 579,12 1993-94 3,185,746 342,315 4,011,829 812,09 1994-95 3,411,909 386,814 3,907,616 699,23 1995-96 2,671,909 365,184 3,664,031 760,19 (1) Includes General, Speci al Revenues, and Capital Projects Funds. 76 1 ' Inter- governmental , 9 $5,309,161 9 3,464,227 , 6 4,518,697 0 3,725,299 ' 4 4,557,510 ' 5 4,824,498 4 5,174,436 ' 6 5,985,542 ' 4 6,733,543 1 6,155,519 s 1 ' Charges for Services ' $268,037 ' 293,903 338,686 ' 284,851 228,615 ' 366,345 ' 347,262 429,932 t 564,962 ' 539,055 $20 $15 ' $10 $5 Fines, Use of Forfeitures Money and and Penalties Property Other Total $444,131 $1,900,145 $38,420 $15,940,288 449,495 2,621,930 212,503 14,053,391 477,896 2,788,346 97,468 16,505,301 524,001 2,389,057 191,389 15, 331, 510 355,047 1,844,552 165,237 15,282,199 278,253 1,625,706 391,194 15,958,912 313,980 1,258,827 318,603 15,634,014 338,786 1,887,659 307,415 17,301,320 317,969 1,383,762 387,606 17,793,415 365,400 2,505,996 299,509 17,326,794 Millions 77 CITY OF ROSEMEAD, CALIFORNIA OTHER TAX REVENUES BY SOURCE ALL GOVERNMENTAL FUND TYPES Last Ten Fiscal Years Fiscal Maintenance Real Estate Trailer Coach Sales and Year District Taxes Tax Use Tax 1986-87 $7,300 $83,170 $3,618 $2,452,123 1987-88 2,155 105,223 - 2,656,680 1988-89 2,200 147,115 2,926 2,665,676 1989-90 698 142,520 1,334 3,205,342 1990-91 1,157 62,734 4,206 3,069,138 1991-92 1,309 55,567 2,474 2,679,103 1992-93 2,427 38,974 2,810 2,647,816 1993-94 1,192 36,696 - 2,704,229 199495 1,336 36,739 - 2,582,644 1995-96 1,291 49,404 - 2,309,758 78 1 ' Transient Franchise Occupancy ' Fees Tax Total $269,760 $232,736 $3,048,707 ' 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 ' 79 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 1986-87 $372,828,816 $600,750,171 $57,430,515 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 11,587,587 160,638,918 1993-94 789,170,566 869,204,989 10,509,734 138,033,544 1994-95 820,044,812 884,095,866 11,198,234 140,532,446 1995-96 837,930,509 857,272,720 11,534,790 139,789,581 (1) Effective with fiscal year 1988-89, Unitary and Operating Non-unitary assessed valuation are listed separately. i I i Source: Los Angeles County Auditor-Controller, Tax Division i 80 1 1 t Locally Assessed Net Personal Property Property Land Improvements Property Total Exemptions Value ' $ - $11,393,530 $38,789,686 $1,081,192,718 $26,507,377 $1,054,685,341 ' - 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 NET PROPERTY VALUE Millions ' $2000 ' $1500 ' $1000 $500 $0 sl CITY OF ROSEMEAD, CALIFORNIA ' SPECIAL ASSESSMENT LEVIES AND COLLECTIONS . LIGHTING AND MAINTENANCE DISTRICT , Last Ten Fiscal Years Current Percentage , Assessment Assessment Collected Fiscal Year Levy Collected Currently , 1986-87 $223,795 $215,186 96.15% 1987-88 250,406 241,257 96.35 , 1988-89 285,712 275,977 96.59 1989-90 315,287 304,072 96.44 1990-91 314,824 355,366 112.88 ' 1991-92 350,800 385,345 109.85 1992-93 388,417 398,073 102.49 1993-94 347 298 , , 343,507 98.91 . 1994-95 339,205 388,150 114.43 ' 1995-96 350,258 366,475 104.63 3 t 1 82 I CITY OF ROSEMEAD, CALIFORNIA ' COMPUTATION OF LEGAL DEBT MARGIN June 30, 1996 1 ' Total assessed valuation Debt limit: 3.75% of total assessed valuation Amount of debt applicable to debt limit: Total bonded debt $36,185,000 Less tax allocation notes exempt by law 36,185,000 t Total amount of debt application 1 to debt limit ' Legal debt margin 83 $ 1,857,871,711 $ 69,670,189 $ 0 $ 69,670,189 CITY OF ROSEMEAD, CALIFORNIA RATIO OF ANNUAL DEBT SERVICE EXPENDITURE' FOR TOTAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscal Years Debt Service Total (1) To Total Fiscal Total Debt General General Year Principal Interest Service Expenditures Expenditures _ 1986-87 $950,000 $346,875 $1,296,875 $16,535,507 7.84 % 1987-88 1,000,000 902,1173 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 2,279,153 21,550,318 10.58 1995-96 265,000 2,006,154 2,271,154 16,821,180 13.50 (1) Includes all Governmental Fund Types. Premium for defeasement of bonds not included. 84 1 1 1 $25 $20 $15 $10 $5 $0 1986-87 $25 $20 $15 $10 $5 $0 1991-92 TOTAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Millions 1987-88 1988-89 1989-90 1990-91 Millions 1992-93 1993-94 1994-95 1995-96 85 CITY OF ROSEMEAD, CALIFORNIA RATIO OF ANNUAL DEBT SERVICE EXPENDITURE .FOR TOTAL BONDED DEBT TO TOTAL ASSESSED VALUATION Last Ten Fiscal Years . , , , Fiscal 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 Principal $950,000 1,000,000 1,420,000 1,515,000 1,630,000 1,760,000 1,900,000 2,055,000 260,000 265,000 $346,875 902,173 1,218,143 1,101,760 972,350 828,617 669,813 1,137,474 2,019,153 2,006,154 Total Debt Service $1,296,875 1,902,173 2,638,143 2,616,760 2,602,350 2,588,617 2,569,813 3,192,474 2,279,153 2,271,154 ,1 t Total Assessed Valuation $1,054,685,341 1,181,242,016 1,227,774,062 1,389,491,653 1,493,702,235 1,661,779,820 1,775,098,110 1,829,614,357 1,870,779,583 1,857,871,711 Debt Service To Total Assessed Valuation 0.12 % 0.16 0.21 0.19 0.17 0.16 0.15 0.17 0.12 0.12 86 1 1 CITY OF ROSEMEAD, CALIFORNIA RATIO OF ANNUAL DEBT SERVICE EXPENDITURE FOR TOTAL BONDED DEBT PER CAPITA Last Ten Fiscal Years Debt Service Fiscal Total Debt To Total Year Principal Interest Service Population Population 1986-87 $950,000 $346,875 $1,296,875 46,893 $28 1987-88 1,000,000 902,173 1,902,173 47,425 40.11 1988-89 1,420,000 1,218,143 2,638,143 47,707 55.30 1989-90 1,515,000 1,101,760 2,616,760 51,156 51.15 1990-91 1,630,000 972,350 2,602,350 52,247 49.81 1991-92 1,760,000 828,617 2,588,617 52,812 49.02 1992-93 1,900,000 669,813 2,569,813 52,922 48.56 1993-94 2,055,000 1,137,474 3,192,474 53,798 59.34 1994-95 260,000 2,019,153 2,279,153 53,639 42.49 1995-96 265,000 2,006,154 2,271,154 54,487 41.68 87 CITY OF ROSEMEAD, CALIFORNIA PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS (Per $100 of Assessed Valuation) Last Ten Fiscal Years Los Los Angeles County Fiscal City of Angeles School Water Flood Sanitation Year Rosemead County Districts Districts Control District Total 1986-87 0 1.000000 0.142800 0.078762 0.013598 0 1.235160 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 0.0,61533 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 Source: Tax Rates By Tax Rate Areas Los Angeles County Tax Collector 88 I CITY OF ROSEMEAD, CALIFORNIA SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT June 30, 1996 1995-96 Assessed Valuation: $1,467,118,075 (after deducting $250,964,055 redevelopment incremental valuation) 1 1 1 1 Direct and Overlapping Tax and Assessment Debt: % Applicable Debt 6/30/96 Los Angeles County 0.326 % $217,100 Los Angeles County Flood Control District 0.377 233,646 Metropolitan Water District 0.183 1,106,958 City of Rosemead 100.000 Total Direct and Overlapping Tax and Assessment Debt: $1,557,704 Overlapping General Fund Obligation Debt Los Angeles County General Fund Obligations 0.326 % $6,419,540 Los Angeles County Pension Obligations 0.326 8,189,617 Los Angeles County Superintendent of Schools Certificates of Participation 0.326 33,175 Los Angeles County Flood Control District Certificates of Participation 0.377 814,716 Los Angeles County Sanitation District #2 Authority 0.002 817 Los Angeles County Sanitation District #15 Authority 7.964 2,480,196 Los Angeles Community College District Certificates of Participation 0.288 193,349 Pasadena Area Community College Certificates of Participation 3.038 254,129 Montebello Unified School District Certificates of Participation 1.886 402,969 San Gabriel Unified School District Certificates of Participation 0.915 85,380 El Monte Union High School District Certificates of Participation 13.908 560,492 El Monte School District and Certificates of Participation 0.005 67 San Gabriel Valley Municipal Water District and Mosquito Abatement District Certificates of Participation .005 & 3.189 54,050 Total Gross Direct and Overlapping General Fund Debt: $19,488,497 Less: Los Angeles County Certificates of Participation (100% self-supporting from leasehold revenues on properties in Marina Del Rey) 418,242 Total Net Direct and Overlapping Bonded Debt: $19,070,255 Gross Combined Total Debt $21,046,201 (1) Net Combined Total Debt $20,627,959 (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax ' allocation bonds and non-bonded capital lease obligations. Ratios to Assessed Valuations: Direct Debt 0.00 % ' Total Overlapping Tax & Assessment 0.11 % Gross Combined Total Debt 1.43 % Net Combined Total Debt 1.41 % ' State School Building Aid Repayable as of 6/30/96: $ 665 Source: California Municipal Statistics, Inc. 89 CITY OF ROSEMEAD, CALIFORNIA DEMOGRAPHIC STATISTICS Last Ten Fiscal Years Income Unemploy- Fiscal Year Population Households Per Capita ment Rate (1) (2) (3) (3) 1986-87 46,893 13,529 $16,988 5.9 % 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 7.9 i 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. 90 DEMOGRAPHIC STATISTICS Thousands 60 50 40 30 20 10 0 Thousands 60 50 40 30 20 10 0 91 1986-87 1967-86 1988-89 1989-90 1990-91 OlncomePerCapita OHouseholds OPopulation r`V^^f Y,V.V YS 'S1::Y3i~ Ml.u He+'.s Y1. .'fi}F wY1:t.4W vi4^i :=:T?U"f :''MS~. 1991-92 1992-93 1993-94 1994-95 OIncome PerCapita 131-louseholds OPopulation CITY OF ROSEMEAD PRINCIPAL TAXPAYERS June 30, 1996 Assessed Valuation Southern California Edison Company $204,319,473 California Federal Savings 29,400,000 Chicago Title Insurance & Trust 13,030,000 Diamond Square 6,636,449 Rosemead Sheraton Hotel 4,5151-000 Vikon Center 4,200,000 Lucky Plaza 3,383,564, ABC Plaza 2,516,802 Travelodge - South 2,126,527 Travelodge - East 1,915,840 $272,043,652 Percentage of Total City's Assessed Valuation 11.00 % 1.58 0.70 0.36 0.24 0.23 0.18 0.14 0.11 0.11 14.65 % Note: Principal property taxpayers and assessed valuations presented here reflect the Rosemead Redevelopment Agency Project Area only as the City of Rosemead is a non-property tax city. 92 ' CITY OF ROSEMEAD, CALIFORNIA SCHEDULE OF INSURANCE IN FORCE ' June 30, 1996 ' Southern California Joint Powers Insurance Authority ' State Compensation Insurance Fund Kelley, Jiggins, Towle & Blue ' Kelley, Jiggins, Towle & Blue Kelley, Jiggins, Towle & Blue Kelley, Jiggins, Towle & Blue 1 ' Source: City Finance Department Policy Number 228962-90 05743382 9922993-03 2781100 Expiration Date Type of Coverage 07/01/96 General Liability 12/31/96 10/10/97 10/19/97 10/10/97 CP8119571C 07/01/97 93 Workers Compensation Coverage Public Employees Blanket Bond ' Boiler and Machinery Notary Public Bond Error & Ommissions Property Insurance ' CITY OF ROSEMEAD, CALIFORNIA CONSTRUCTION ACTIVITY Last Ten Fiscal Years Number of Building Permit Number of Fiscal Residential Valuations (In Thousands) Building Year Dwelling Units Residential Nonresidential Total Permits Issued 1986-87 114 $18,613,860 $11,244,838 $29,858,698 541 1987-88 143 15,384,272 19,972,636 35,356,908 737 1988-89 154 14,707,466 3,997,523 18,704,989 782 1989-90 76 14,571,516 15,132,741 29,704,257 794 1990-91 52 13,764,492 9,308,610 23,073,102 726 1991-92 62 16,145,335 15,522,368 31,667,703 827 1992-93 13 8,012,092 10,499,324 18,511,416 877 1993-94 22 10,047,264 7,651,470 17,698,734 858 1994-95 37 10,880,831 3,552,722 14,433,553 608 1995-96 42 12,267,012 2,094,550 14,361,562 652 94 I CITY OF ROSEMEAD, CALIFORNIA MISCELLANEOUS STATISTICS June 30, 1996 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 Land Area Streets & Alleys Parks Percentage of Land Use: Residential Public Facilities Commercial (stores & shops) Mixed Commercial/Residential Office & Light Industrial Public Facilities: Community Centers Swimming Pools ' Libraries Gymnasiums Ball Diamonds (lighted) ' Tennis Courts (lighted) Education Facilities: Elementary Schools Secondary Schools High Schools 1 I Fire Protection: ' Number of firefighters and officers Police Protection: " Parking Control (personnel) Police Protection (sworn personnel) Major Employers and Number of Employees: Southern California Edison Company California Federal Bank Ball Corporation Crown City Plating 54,487 5.5 square miles 74.42 miles 50 acres 64 % 14 9 7 6 100 % 2 2 2 1 4 5 10 3 2 37 4 35 3,500 450 400 300 The City of Rosemead is part of the Los Angeles County Fire Protection District which provides fire fighting, fire prevention, and plan check services for the City. " The City of Rosemead contracts with the Los Angeles County Sheriffs Department for all police services with the exception of parking control which is provided by City personnel. 1 95 Q i City of R®SEMEA 01 Pasad n Los Angeles 1 1 1 1 210 M San Bernardin) ® 0 1 Riverside 1 IN Anaheim 91 L g Bea ® 05 1 1 i 1 5 1 San Di go 11 1 The CITY OF ROSEMEAD is located in Los Angeles County, approximately nine miles east of downtown Los Angeles. Incorporated in 1959, the CITY OF ROSEMEAD now encompasses a total land mass of 5.5 square miles 1 with an approximate population of 54,487 96 I