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1995 CAFRI 1 1 CITY OF ROSEMEAD 1 1 1 1 1 1 1 1 1 1 1 1 California COMPREHENSIVE ANNUAL FINANCIAL REPORT 1 FISCAL YEAR ENDED JUNE 305 1995 ~F1~1Pn1C~~ V( -erwy I 1 1 1 1 1 1 1 1 i 1 1 I 1 1 1 C k i CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT ' Fiscal Year Ended June 30, 1995 i I TABLE OF CONTENTS I INTRODUCTORY SECTION Letter of Transmittal List of Principal Officials Organizational Chart Certificate of Award for Outstanding Financial Reporting Certificate of Achievement for Excellence in Financial Reporting FINANCIAL SECTION Independent Auditors' Report General Purpose Financial Statements: 1 Combined Balance Sheet - All Fund Typed and Account Groups Combined Statement of Revenue, Expenditures and Changes in Fund Balances - All Governmental Fund Types Combined Statement of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual - General, Special Revenue and Debt Service Fund Types 1 0 ; e Statement of Revenue, Expenses and Changes in Fund Balance - Pension Trust Fund Statement of Cash Flows - Pension Trust Fund Notes to Financial Statements Combining and Individual Funds and Account Groups Financial Statements (Supplementary Information): GENERAL FUND: Balance Sheet Page i xiii xiv xv xvi 1 3 5 7 10 11 12 28 b 3 CITY OF ROSEMEAD, CALIFORNIA 1[ t i COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1995 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) Saga Combining and Individual Funds and Account Groups (Supplementary Information): (cont.) GENERAL FUND: (cont.) Statement of Revenue, Expenditures and Changes in Fund Balance 29 Revenue Detail - Budget and Actual 30 Expenditure Detail - Budget and Actual 31 SPECIAL REVENUE FUNDS: Combining Balance Sheet - All Special Revenue Funds 36 Combining Statement of Revenue, Expenditures and Changes in Fund Balances - All Special Revenue Funds 40 Statement of Revenue, Expenditures and Changes in Fund Balance - Traffic Safety Fund 43 Statement of Revenue, Expenditures and Changes in Fund Balance - State Gas Tax Fund 44 Statement of Revenue, Expenditures and Changes in Fund Balance - Air Quality Management District 45 Statement of Revenue, Expenditures and Changes in Fund Balance - Local Transportation Fund 46 Statement of Revenue, Expenditures and Changes in . Fund Balance - Public Transportation Fund 47 l i' d~ I t I 0 A D 0 U I 0 0 I I i~ 4 i~ i i' CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1995 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) Page 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 48 Statement of Revenue, Expenditures and Changes in Fund Balance - 1976 Community Parklands Grant Fund 49 Statement of Revenue, Expenditures and Changes in Fund Balance - Street Lighting Fund 50 Statement of Revenue, Expenditures and Changes in Fund Balance - Narcotics Seizure Fund 51 Statement of Revenue, Expenditures and Changes in Fund Balance - Low-Moderate Income Housing Fund 52 Statement of Revenue, Expenditures and Changes in Fund Balance - Rosemead Housing Development Corporation 53 Statement of Revenue, Expenditures and Changes in Fund Balance - Federal Highways Grants 54 Statement of Revenue, Expenditures and Changes in Fund Balance - R. Z'Berg/Harris Grant Fund 55 Statement of Revenue, Expenditures and Changes in Fund Balance - California Wildlife Fund 56 CITY OF ROSEMEAD, CALIFORNIA ti i I i COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1995 TABLE OF CONTENTS (cont.) FINANCIAL SECTION (cont.) EagH Combining and Individual Funds and Account Groups (Supplementary Information): (cont.) CAPITAL PROJECTS FUND: Balance Sheet - Capital Projects Fund 58 Statement of Revenue, Expenditures and Changes in Fund Balance 59 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 4 a 0 D D D D 0 CITY OF ROSENIEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1995 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 e P 1 CITY OF ROSEMEAD, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1995 TABLE OF CONTENTS (cont.) STATISTICAL SECTION (cont.) Miscellaneous Statistics Vicinity Map Paga 95 96 1 1 1 e N T R 0 D U C T 0 N MAYOR: JOE VASQUEZ ' MAYOR PRO TEM: MARGARETCLARK COUNCILMEMSERS: ROBERT W. BRUESCH JAY T. IMPERIAL GARY A. TAYLOR I December 1, 1995 ' The Honorable Mayor and Members of the ' Rosemead City Council Posemead 8838 E. VALLEY BOULEVARD • P.O. BOX 399 ROSEMEAD, CALIFORNIA 91770 TELEPHONE (818) 288-6671 TELECOPIER 8183079218 Councilmembers: Submitted for your information and consideration is the Annual Financial Report for ' the fiscal year ended June 30, 1995. This is a combined report of the City of Rosemead, Rosemead Redevelopment Agency and the Rosemead Housing Development Corporation. The report is prepared by the City's Finance Department ' and made available to residents, the City Council, and the investment community. The responsibility for both the accuracy and completeness of the financial report rests ' with the City. To the best of our knowledge the information presented is accurate in all material aspects and includes all disclosures necessary to enable the reader to gain an understanding of the City's financial activities. ' GENERAL INFORMATION The City of Rosemead was incorporated on August 4, 1959, and operates as a ' general law city. It has a. Council-Manager form of government, with five council. members elected at large for four-year overlapping terms. The Council selects a Mayor and a Mayor Pro-Tem each year from its membership. ' 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 53,639 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 1994-95 Administration: The City has continued to consolidate costs and reconsider the structure various programs in an effort to reduce expenditures without a reduction in the quantity and types of services provided. During the past year, for example, was the City's first year participating in the federal CDBG program as an entitlement City administered by the Department of Housing and Urban Development (HUD) rather than under the County. The City's action resulted in an increase of more than thirty percent (30%) in revenues and expand local control over the program. The change also increased the administrative allocation and expand eligible activities related to Planning and Housing reporting requirements. The effect was a higher level of services to the community with little or no impact on the General Fund. Engineering: The City completed several capital improvement projects during the fiscal year. The Grand Avenue Bridge, which sustained major structural damages from a fire in 1991, was reconstructed in Fiscal Year 1994-95. The majority of the funds were from the Federal Highways Repair and Rehabilitation Grant and the remainder costs funded by the State Gas Tax revenues. Completion of the storm drain mainlines on Bartlett, Burton and Muscatel Avenue extended the existing storm drain at Garvey Avenue to approximately 1,400 feet north along each street. Sidewalk improvements were completed on the west side of Delta Avenue between Garvey and Fern Avenue. The conceptual studies for the Del Mar Avenue, San Gabriel Boulevard and Walnut Grove Avenue Beautification projects were approved in Fiscal Year 1994-95. The proposed projects will include undergrounding of overhead utilities, streetscape/landscape improvements to the parkway and new raised medians, and resurfacing of the streets where needed. The projects will be completed over the ii d ' next few years. Planning: Consistent with the prior year, majority of the developments were 4, Residential. There were several two (2) and three (3) lot subdivisions and an eleven (11) unit development on Hellman Avenue is currently in the plan check phase. ' Several commercial developments are currently under construction, which includes new office buildings and warehouse structures. A majority of the commercial developments have been limited to interior improvements to existing structures. Parks and Recreation: The City completed various park and recreation improvements ' during the fiscal year. The Zapopan Center improvements included new tables and chairs, cabinets, wallpaper, additional lobby seating, and replacing carpet in the office. ' The Zapopan Park improvements included regrading, a new irrigation system, new play equipment, and replacement of fencing around various structures. The improvements at Rosemead Community Center improvements included replacement of an existing roof, acquisition of wall mirrors, and tables and chairs. The Rosemead Park improvements included revamping of play areas and resurfaced ' existing basketball courts. Rosemead Pool boilers were replaced. ' 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. In addition, the California Supreme Court, in an apparent ' reversal of a 1991 decision, ruled in Santa Clara County Local Transportation Authority v. Guardino, that voter approval is required for any general or special tax enacted by local governments. The impact of the ruling on the City of Rosemead is ' minor. However, it may affect the City's imposition of a 2% increase of the Transient Occupancy Tax (TOT) enacted in 1992. The Court will revisit the decision and issue further clarification of the ruling on December 28, 1995. ' Another situation that could impact the City's fiscal condition during Fiscal Year 1995-96 is the resolution of an ongoing dispute with the Los Angeles County Community Development Commission (CDC) regarding the use of Community Development Block Grant (CDBG) funds in Fiscal Years 1992-93 and 1993-94. The -iii- ; CDC contends that the City did not utilize proper procurement procedures for the funding of certain programs during that period of time. As a result, in excess of $320,000 in allowable costs under the CDBG program have been disallowed and may E require General Fund reimbursement. Those figures are still being negotiated. If the costs are ultimately found to be ineligible, the General Fund reimbursement would be ' placed in the City's CDBG reserve account for future use on eligible projects. Despite those trends, the City continues to be optimistic about the State of California's economic condition. Last week, the State Treasurer announced that California would realize a surplus of $686 million this fiscal year. It is good news for several reasons. First, it indicates that the State's draconian budget reductions over the past five years have finally resulted in a balanced budget. Second, it means (hopefully) that the State will not be raiding local government revenue sources again this Summer when the Legislature considers next year's budget. And, last, the Treasurer's announcement seems to indicate that California's economy is recovering after a long period of downturn. Specific projects include the use of Air Quality Management District funds to finance the traffic signals at the intersection of Rosemead Boulevard and Marshall Street and at Marshall Street and Walnut Grove Avenue for modifications to include a protected left turn phasing for all directions. The Abilene Street project will commence in Fiscal Year 1995-96. The project entails widening the street, new sidewalks, street trees and installation of street lights. CDBG funds will be used to fund the Abilene Street project. Various streets throughout the City will be repaired and resurfaced as identified by the City's Pavement Management System, which reflects the City's continuing efforts to maintain the City's streets. Several residential developments which were placed on hold a few years ago are now in the planning stages and will be reviewed in the near future. Those developments range from small mini-malls to Southern California Edison rights-of-way. Rosemead Community Recreation Center improvements include replacement of existing air conditioning and heating units and replacement carpet in the office. Rosemead Pool improvements includes replastering and repainting the pool. Klingerman Park improvements includes acquisition and installation of new play equipment. Garvey Park Improvements includes rebuilding the play areas, replacing existing air conditioning and heating units, and regrading two (2) ball diamonds. Resurfacing existing basketball court and addition of a new court is scheduled at Zapopan Park. -iv- i i' REPORTING ENTITY AND ITS SERVICES f E The reporting entity is comprised of all funds and account groups of the City of ' Rosemead, Rosemead Redevelopment Agency, and Rosemead Housing Development ` Corporation. The Rosemead Redevelopment Agency finances streets, parks, and utility improvements within the Redevelopment project area as well as in some selected ' areas outside the project area which benefit the project area. The Rosemead Housing Development Corporation provides for conservation and financing of Low and Moderate Income Housing within the City limits. The City of Rosemead provides a ' broad range of services to its citizens including general government, public safety, street construction and maintenance, sanitation, building safety, parks and ' recreational facilities, and cultural services. Some of the functions typically provided by municipal government are, in the City of Rosemead, provided by special districts. These districts, which usually encompass an area larger than the City itself, include the Consolidated Fire Protection District of Los Angeles County, the Los Angeles County Library District, the Los Angeles County ' Sanitation District. Other Governmental functions paid for by the City but performed by County departments under contract with the City are police protection, street maintenance, and animal control. REPORTING STANDARDS ' The financial reports have been prepared in conformance with the generally accepted accounting principles as set forth by the Governmental Accounting Standards Board (GASB), applicable pronouncements of the American Institute of Certified Public Accountants, and the full financial disclosure guidelines of the Governmental Finance ' Officers Association of the United States and Canada. The implementation of Governmental Accounting Standards Board Statement No. 14 of the National Council on Governmental Accounting defining the governmental reporting entity as including the City and its related entities over which the City Council has continuing oversight responsibility, has resulted in the preparation of this financial report's format of consolidating the financial data of the City, Redevelopment Agency, and the ' Rosemead Housing Development Corporation. ' FINANCIAL STATEMENT ' The City requires that its financial statements be audited by a Certified Public Accountant selected by the City Council. This requirement has been satisfied, and the Auditor's opinion is included in the financial section of this report. -v- 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 t has also been satisfied and there were no material exceptions noted in the report. The Comprehensive Annual Report is divided into the following three sections: 1. Introductory Section - which includes this transmittal letter, the City's Organization Chart, and a list of the principal officials. 2. Financial Section - which includes the auditor's opinion, general purpose financial statements, and the combining and individual fund and account group financial statements. 3. Statistical Section - which includes relevant financial and non-financial data presenting historical trends and other information about the City. NOTES TO THE FINANCIAL STATEMENTS I i The Notes to the Financial Statements, which are part of the General Purpose Financial Statements within the Financial Section, are an integral part of the financial report and are essential to the fair presentation and adequate disclosure of the financial position of the City, Redevelopment Agency, and the Rosemead Housing Development Corporation. The notes should be read along with the financial statements to gain a more thoroughly understanding of the information contained within this report. Your attention is specifically directed to the presentation of the City's significant accounting policies. The fiscal operations of the City are primarily accounted for in the Governmental Funds which include the General, Special Revenue, Debt Service and Capital Project Funds The 1994-95 Fiscal Year revenues for the Governmental Fund types totaled $17,639,439. Presented on the adjacent page are the revenues by major source, which includes the percentage each source represents of the total revenues and the increase (decrease) from the prior year. The most notable change in revenues is the increase shown in Intergovernmental revenues, which is the result of an increase of CDBG funds. The most notable decrease in revenues is the Use of Money and Property. The decrease in revenues is primarily due to investments in Guaranteed Investment Contracts, whereby annuity payments commence in January 1996. -vi- i 1 I 7 1 , II 1 C 1 1 ' The Redevelopment Agency transferred approximately one hundred seventy-five thousand three hundred thirty dollars ($175,330) in Property Tax Increment revenues in Fiscal Year 1994-95 to the Educational Revenue Augmentation Fund (ERAF). Fiscal ' Year 1994-95 represents the last fiscal year the Redevelopment Agency had to shift tax increment revenues to the ERAF fund. I ll i' i E' i' 1. I' The 1994-95 fiscal year expenditures for the Governmental Fund types totaled $21,396,342. Listed on the adjacent page is a recapitulation of these expenditures by major function. The chart reflects expenditures by function as a percentage to the total expenditures and the incremental change from the prior fiscal year. The most significant increase in expenditures for 1994-95 over 1993-94 is due to investment losses incurred. The most notable expenditure decrease is Debt Service, which primarily is due to the Redevelopment Agency's action last year to defease the 1987 and 1991 Tax Allocation Bonds. `-vii- i F i I The City of Rosemead remains in a strong financial position as of June 30, 1995 with a surplus of approximately seven million four hundred thousand dollars ($7.4 million). There was a prior period adjustment of approximately four hundred thousand, which was due to the adoption of the Governmental Accounting Standards Board Statement No. 22, "Accounting for Taxpayer-Assessed Tax Revenues in Governmental Funds". Statement No. 22 requires the City to recognize taxpayer-assessed taxes when it is both measurable and available. GENERAL FIXED ASSETS i-: I' As of June 30, 1995, the general fixed assets of the City totaled twelve million eight hundred thirty-one thousand and nine hundred forty-six dollars ($12,831,946). This amount represents the original cost of the assets, net of additions and deductions from July 1, 1994 to June 30, 1995, and is considerably less than their present value. The system of accounting presently recommended by the Governmental Accounting Standards Board does not allow for the recording of depreciation of general fixed assets as an expense of governmental funds. ACCOUNTING SYSTEM The City's accounting records are maintained on the modified accrual basis of accounting for the governmental fund types, the Pension Trust Fund, and agency -viii- GENERAL FUND funds. Revenue is recognized in that accounting period in which it becomes both available and measurable. Available means collectible within the current period or a~ soon enough thereafter to pay current liabilities. i 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. ' BUDGETARY CONTROL ' In addition to internal accounting controls, the City also maintains budgetary controls. The objective of these budgetary controls are to insure compliance with the City's budget policy embodied in the annual appropriated budget approved by .the city ' Council. Activities of the general fund, special revenue funds, debt service fund, and capital projects fund are included in the annual approved budget. Budgetary control is maintained at a functional level by division within departments through use of object level account appropriations. Actual expenditures are compared to these appropriations. The City Manager is authorized to transfer budgeted amounts between funds within 1 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. 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 ' -ix- 1 ti t "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 36% of the calculated appropriation limit at June 30, 1995. The City's 1995-96 estimated revenues and budgeted expenditures indicate that by June _x_ i t, 30, 1996 the City will be approximately 41 % of the limit. t r~ 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, 1994. 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 six 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, 1994. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reporting. ' In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such CAFR must satisfy both ' generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Rosemead has received a Certificate of Achievement last year. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA. ACKNOWLEDGMENTS The preparation of this report could not have been accomplished without the efficient and dedicated efforts of the entire Rosemead. Finance Department. The department's effort to upgrade the quality of financial reporting for the City of Rosemead has led to improved quality of financial information available to the City Council and citizens. r it I -xi- We would like to thank the members of the City Council for their continued support, i leadership and concern for the financial stability of the community. i R Respectfully submitted, Frank G. ripepi City Manager Karen L. Ogawa Finance Director k -X11- I APPOINTED OFFICIALS: CITY OF ROSEMEAD, CALIFORNIA CITY OFFICIALS June 30, 1995 Joe Vasquez .............................Mayor Margaret F. Clark Mayor Pro Tern Robert W. Bruesch Councilman Jay T. Imperial Councilman Gary A. Taylor Councilman I Planning Commissioners: Rudolfo Ruiz Chairman Merced 'Bill' Ortiz Vice Chairman Robert Breen Commissioner ' Duc Loi Commissioner Marvin H. Lowrey Commissioner I Traffic Commissioners: ' Daniel Tirre Chairman William Alarcon Vice Chairman Holly Knapp Commissioner ' Frank E. Larson Commissioner Victor Ruiz Commissioner I I i ELECTED OFFICIALS: City Council: Frank G..Tripepi City Manager Hubert E. Foutz City Treasurer Robert L. Kress ..............................................City Attorney Nancy Valderrama City Clerk -xiii- t P i i o ~ a a w x ~ U w N a O Z O LL O a N ' F Z U a O O -xiv- .1 1 0 o~ M ~ }.1 0 v ~ ~ ~ ~ c al o p - s N O ~'Ta y Y 1 ~C C ~ c4 C ~ U cC 1 C ci C O ~ C C 1 C u 1 ~ I v -x - A F Ua Y LO C W U C h U V C cu U E 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 IJune 30, 1994 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. President v F~ ecutive Director -xvi- 1 t t F N A N C A L McGLADREY&PULLEN, LLP ' Certified Public Accountants and Consultants I To the Honorable Mayor ' and Members of the City Council City of Rosemead Rosemead, California INDEPENDENT AUDITOR'S REPORT ' We have audited the accompanying general purpose financial statements of the City of Rosemead, California, as of and for the year ended June 30, 1995, as listed in the table of contents. 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. 1 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, 1995, 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 13, 1995 on our consideration of the City of Rosemead's internal control structure and a report dated October 13, 1995 on its ' compliance with laws and regulations. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a ' whole. The combining, individual fund and individual 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. San Bernardino, California October 13, 1995 i i i THIS PAGE IS INTENTIONALLY LEFT BLANK 'i E 1 1 i CITY OF ROSEAIEEAD, CALIFORNIA GENERAL PURPOSE FINANCIAL STATEMENTS 1 YEAR ENDED JUNE 30, 1995 i 1 1 1 1 1 C rn _2_ CITY OF ROSEMEAD, CALIFORNIA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1995 Governmental Fund Special Debt Capital Assets General Revenue Service Proiects Cash and investments $ 5,460,274 $ 4,826,440 $ 2,390,426 $ 21,217,659 Receivables 1,807,728 1,514,753 100,394 298,016 Due from other funds 1,126,693 689,961 - - Propem and equipment _ _ Amount available in debt service fund _ Amount to be provided for retirement of general long-term debt - - - Total assets $ 8394,695 $ 7,031,154 $ 2,490,820 $ 21,515,675 Liabilities, Municipal Equirv and Other Credits Liabilities Checks issued in excess of bank balance $ - $ - S - $ 894,599 Accounts payable and accrued liabilities 681,525 647,898 - 185,896 Arbitrage rebate payable _ Due to other funds - 1,166,727 - 649,052 Due to other governmental agencies 320,000 242,938 - - Refundable deposits _ _ Deferred compensation Tax allocation notes - - Accrued vacation pay and compensatory tune 5,782 - - - Accrued litigation settlement _ Due to other governments _ Total liabilities 1,007,307 2,057,563 1,729,547 Municipal Equity and Other Credits Investment in general fixed assets Fund balance: Reserved: Lone-term receivable Debt service Low-moderate mcome 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. 717,796 - - - - - 2,490,820 - 3,913,958 - - - - 19,786,128 969,000 - - - 500,000 - - - 280,000 - - - 2,680,000 - - - 2,240,592 1,059,633 - - 7,387,388 4,973,591 2,490,820 19,786,128 $ 8394.695 $ 7,031.154 $ 2,490.820 $ 21,515,675 -3- I Fiduciary Fund Types Account Groups Total (Memoran dum Only) Trust General General and Fixed Long-Tear Agency Assets Debt 1995 1994 $ 697,483 $ $ $ 34,592,282 S 37,419 202 ' 3,600 - 3,724,491 , 3,005,043 1,816,654 1,284,558 - 12,831,946 - 12,831,946 10,840,705 _ 2,490,820 2,490,820 2,423,295 34,334,786 34,334,786 34,774,850 S 701.083 S 12.831.946 S 36.825 606 S 89 790 979 S 89.747.653 $ - S - $ - $ 894,599 S - 1,515,319 1,645,632 153,976 875 - - 1,816,654 1,284,558 - - - 562,938 239,992 104,592 104,592 83,518 357,828 357,828 291,670 - - 36,450,000 36,450,000 36,710,000 - 233,364 239,146 144,561 ' 142,242 142,242 170,181 175,330 461295 36,825,606 42,083,318 4U99,418 - 12,831,946 ' 237,788 12,831,946 10,840,705 717,796 2,490,820 3,913,958 237,788 730,141 2,423,295 6,353,876 247,513 - - - 19,786,128 21,948,754 ' - - 969,000 969,000 ' - - 500,000 500,000 ' _ - - 280,000 280,000 2,680,000 2,680,000 3 100,225 1,874,951 237,788 12,831,946 - 47 707,661 48,848,235 S 701.083 $ 12,931,946 $ 36.825.606 S 89 790.979 S 89.747.653 CITY OF ROSEMEAD, CALIFORNIA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year ended June 30, 1995 Governmental Fund Special Debt Capital Revenues General Revenue Service Projects Propem, taxes and special assessments $ - $ 386,814 $ - 5 3,411,909 Other taxes 3,907,616 - - - Licenses and permits 699,234 - - - Intergovernmental 2,928,590 3,804,953 - - Charges for services 548,962 16,000 - - Fines, forfeitures and penalties 280,636 37,333 - - Use of money and properr 289,451 266,945 202,817 624,549 Other 146,262 41,671 45,697 8,800,751 4,553,716 202,817 4,082,155 Expenditures Current: General government Public safety Public works Public health Public recreation Community service Intergovernmental Capital outlay Debt service: Principal Interest Certificate refunding Issuance costs Arbitrage rebate expense ('credits) Investment loss 1,725,808 119,497 - 72.899 4,335,271 331,600 - - 87,381 2,960,435 - 1,353,137 39,852 - - - 1,767,173 134,224 - - 1,204,558 885,658 - - - - - 175,330 53,433 1,637,238 - 23,071 260,000 2,019,153 - - (153,976) - 461,876 1,902,724 9,213,476 6.530,528 2,279,153 3,373-185 Revenue over (under) expenditures Other Fmanejng Sources (Uses) Proceeds from sale of bonds, net of discounts of 5701.815 Payments to refunding escrow agent Operating transfers: From othei funds (To) other funds Revenue and other financing sources over (under) expenditures and other financing (uses) Fund Balance, beginning Restatement of beginning fund balance (Note 2) Fund Balance, ending See Notes to Financial Statements. (412,725) (1,976,812) (2,076,336) 708,970 1,371,557 2,314,443 2,143,861 - (252,106) (2,486,594) - (3,091,161) 1,119,451 (172,151) 2,143,861 (3,091,161) 1 11 I I I 706,726 (2,148,963) 67,525 (2,382,191) 6,265,414 7,122,554 2,423,295 21,948,754 415,248 - - 219,565 $ 7,387,388 3 4,973,591 $ 2,490,820 $ 19,786,128 I I -5- fSS d' It5k' 7 _ Total (Memorandum Only) 7777x' j 1995 1994 S 3,798,723 S 3,528,061 3,907,616 4,011,829 699,234 812,096 6,733,543 5,985,542 ' 564,962 429,932 317,969 338,786 1,383,762 1,887,659 233,630 307,415 ' 17,639,439 17,301,320 ' 1,918,204 2,545,662 4,666,871 4,596,592 4,400,953 4,096,433 39,852 17,665 1,901,397 1,719,424 2,090,216 2,092,838 ' 175,330 175,295 1,713,742 1,897,838 260,000 2,055,000 2,019,153 1,137,474 2,651,000 183,403 ' (153,976) (59,745) 2,364,600 21,396,342 23,108,879 ' (3,756,903) (5,807,559) ' - 36,008,184 (17,034,949) 5,829,861 6,032,610 ' (5,829,861) (6,032,610) 18,973,235 (3,756,903) 13,165,676 37,760,017 24,594,341 634,813 S 34,637,927 S 37,760,017 f' 'r -6- CITY OF ROSEMEAD, CALIFORNIA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE, DEBT SERVICE AND CAPITAL PROJECTS FUNDS Year ended June 30, 1995 General Special Revenue Over Over (Under) (Under) Revenues Budget Actual Budget Budget Actual Budget Property taxes and special assessments S - S - s - S 380,000 S 386,814 S 6,814 Other taxes 3 907 800 3 907 616 184 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 smice Intergovernmental Capital outlay Appropriations reserves Debt service: Principal Interest Arbitrage rebate expense (credits) Investment loss Revenue over (under) expenditures Other Financing Sources (Uses) Operating transfers: From other funds (To) other funds Revenue and other fumncing sources over (under) expenditures end other financing (uses) Fund Balance, beginning Restatement of beginning fund balance (Nom 2) Fund Balance, ending See Notes to Financial Statements. ( ) - - - 934,600 699,234 (235,366) - - - 2,302,110 2,928,590 626,480 4,053,270 3,804,953 (248,317) 439,750 548,962 109,212 8,300 16,000 7,700 233,000 280,636 47,636 90,000 37,333 (52,667) 255,540 289,451 33,911 126,014 266,945 140,931 184,700 146.262 (38,438) 10,650 41,671 31,021 8,257,500 8,800.751 543,251 4,668,234 4 553 716 (114 518) 1,694,875 1,725,808 30,933 18,600 119,497 100,897 4,405.090 4,335.271 (69,819) 408,750 331,600 (77,150) 66,620 87,381 20,761 3,419,400 2,960,435 (458,965) 45,400 39.852 (5,548) - - - 1,848,940 1,767.173 (81,767) 128,630 134.224 5,594 1,111,956 1,204,558 92,602 1,062,770 885,658 (177,112) 60.140 53,433 (6,707) 2,668,500 1,637,238 (1,031,262) 100,000 - (100,000) - - - 461,876 461,876 9,333.021 9,213,476 (119,545) 7,706.650 6,530.528 (1,176,122) (1,075,521) (412.725) 662,796 (3038416) (1976812) 1,061,604 1,097,300 1,371.557 274,257 2,833,100 2,314,443 (518,657) (252.106) (252.106) (2,983,100) (2,496,594) 496.506 1,097,300 1,119.451 22,151 (150000) (172151) (22151) S 21,779 706.726 S 684.947 S (3,188,416) (2,148,963)5 1.039.453 6,265,414 415.248 S 7,387,388 7,122,554 a 4.913,391 -7- 6 i i r f t i F (i f Debt Smite Capital Proiem Over Over (Under) (Under) Budges A=al Budget Budget Amal Budget s a s s 3,170,000 S 3,411,909 S 241,909 35,000 202,817 167,817 602,500 624,549 22,049 - 136,000 45,697 (90303) 35,000 202,817 167,817 3 908 500 4 082 155 173,655 55,400 72,899 17,499 ' - - 4,002,350 1,353,137 (2,649,213) ' - - 175,300 175,330 30 - - - 27,750 23,071 (4,679) 260,000 260,000 2,019,153 2,019,153 - - (153,976) (153,976) 1,902,724 1,902,724 2.279,153 2,279,153 - 4,260800 3,373,185 (887615) (2,244.153) (2,076,336) 167.817 (352 300) 708,970 1,061.270 2,279,153 2,143,861 (135,292) - - - - - (3,226,453) (3,091,161) 135.292 2.279.153 2,143,861 (135292) (3226453) (309! 161) 135,292 S 35,000 67,525 S 32.525 S (3,578,753) (2,392,191) S 1.196,562 2,423,295 21,948,754 219,565 S 2,490,820 S 19,786,128 (continued) .8. CITY OF ROSEMEAD, CALIFORNIA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE, DEBT SERVICE AND CAPITAL PROJECTS FUNDS (CONTINUED) Year ended June 30, 1995 Total Over (Under) Revenues Budget Actual Budget Property taxes and special assessments S 3,550,000 S 3,798,723 S 248,723 Other taxes 3,907,800 3,907,616 (184) Licenses and pemuts 934,600 699,234 (235,366) Intergovernmental 6,355,380 6,733,543 378,163 Charges for services 448,050 564,962 116,912 Fines, forfeitures and penalties 323,000 317,969 (5,031) Use of money and property 1,019,054 1,383,762 364,708 Other 331.350 233,630 (97,720) 16.869.234 17,639,439 770.205 Expenditures Current: General government Public safety Public works Public health Public recreation Community service Intergovernmental Capital outlay Appropriations reserves Debt service: Principal Interest Arbitrage rebate expense (credits) Investment loss Revenue over (under) expenditures Other Financing Sources (Uses) Operating transfers: From other funds (To) other funds Revenue and other financing sources over (under) expenditures and other financing (uses) Fund Balance, beginning Restatement of beginning fund balance (Note 2) Fund Balance, ending 1,768,875 1,918,204 149,329 4,813,840 4,666,871 (146,969) 7,488,370 4,400,953 (3,087,417) 45,400 39,852 (5,548) 1,977,570 1,901,397 (76,173) 2,174,726 2,090,216 (84,510) 175,300 175,330 30 2,756,390 1,713,742 (1,042,648) 100,000 - (100,000) 260,000 260,000 - 2,019,153 2,019,153 - - (153,976) (153,976) - 2,364,600 2,364,600 23,579,624 21.396.342 (2,183,282) (6.710,390) (3.756.903) 2.953,487 6,209,553 5,829,861 (379,692) (6,209,553) (5,829,861) 379,692 C 1 1 i I S (6,710.390) (3,756,903)$ 2,953,487 1 37,760,017 634,813 t $ 34,637,927 _g ' I kl z Ur xvJEMEAD, CALIFORNIA STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCE PENSION TRUST FUND Year Ended June 30, 1995 i Operating revenue, interest and other investment income $ 14 671 i t , Operating expenses: Administrative fees 3 674 Pension benefits , 20,722 24,396 1 Net (loss) (9,725) Fund Balance, beginning Fund Balance, ending 247,513 1 $ 237,788 See Notes to Financial Statements. i 1 i 1 1 1 1 1 i fl i i `I I it 3 i ;1 -10- f-11 V Ur' RUSEMEAD, CALIFORNIA STATEMENT OF CASH FLOWS PENSION TRUST FUND Year Ended June 30, 1995 Cash 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 mantity of annuity contracts Net increase in cash and cash equivalents Cash, beginning Cash, ending See Notes to Financial Statements. $ (9,725) 3,674 (14,671) (20,722) 20,722 -11- U11 Y OF ROSEMEAD, CALIFORNIA 1 NOTES TO FINANCIAL STATEMENTS ' Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant Accounting Policies Reporting Entitv: 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. Rosemead Redevelopment Agency: The Agency finances street, park and utility improvements. It also acquires and constmcts major capital facilities, all within the Rosemead Project Area No. 1. Rosemead Housing Development Corporation: The Corporation accounts 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. After due consideration of each criteria, especially the substance of the City's relationship with these organizationsfentities and using professional judgment, management has decided to exclude certain organizations and activities from the City's combined financial statements because significant oversight responsibility does not exist. The Fire Protection District, the Library District and the County Flood Control District are not considered component units of the City because the City's governing body is not financially accountable for these legally separate organizations. Nature of operations: I City of Rosemead: The City is a no property tax City which 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. 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, revenues are 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 revenues available if they are collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred, ' except for unmatured interest on general long-term debt, which is recognized when due, and certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. -12- 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) In determining when to recognize intergovernmental revenues (grants, subsidies and shared revenues), 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, monies must be expended on the specific purpose or project before any amounts will be paid to the City; therefore, revenues are recognized based upon the expenditures recorded. In the other, monies 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 revenues at the time of receipt, or earlier if they meet the criterion of availability. Other major revenues that are determined to be susceptible to accrual include taxes and interest. Major revenues that are determined to not be susceptible to accrual because they are either not available soon enough to pay liabilities of the current period or are 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. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when incurred. Governmental Fund Types: The General Fund accounts for all financial resources except those required to be accounted for in another fund. These resources are devoted to financing the general services that the City performs for its citizens. Special Revenue Funds account for the proceeds of specific revenue sources (other than special assessments, expendable trusts and major capital projects) that are legally restricted to expenditures for specified purposes. The Special Revenue Funds and their purposes are as follows: 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 Fund accounts for the City's share of automobile registration fees collected from the State by the South Coast Air Quality Management District. The funds are used in improving transportation systems and to reduce reliance on private vehicles. The Local Transportation Fund accounts for State grants used to finance the construction of bikeways and sidewalks. -13- .A I I I 1 I I i 1 v u r Ur XONEMEAD, CALIFORNIA ' NOTES TO FINANCIAL STATEMENTS ' Note 1. Repotting Entity, Nature of Operations, Description of Fonds and Account Groups, and Significant Accounting Policies (Continued) The Public Transportation Funds account for the City's share of additional sales tar collected in the County of Los Angeles as a result of Propositions A and C. The funds are used to finance public transportation projects. c The Community Development Block Grant Fund accounts for Community Development Block Grants received ' from the United States Department of Housing and Urban Development. The 1976 Community Parklands Grant Fund accounts for funds to be used for park projects. i 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. ' The Lorv-Moderate Income Housing Set-Aside Fund accounts for the 20% of gross property tax increment revenue received by the Agency to fund future projects invoking the replacing or rehabilitation of low and moderate income housing within City limits. The Rosemead Housing Development Corporation accounts for the construction and financing of low and moderate income housing. It is a California nonprofit public benefit corporation organized under Section 501(c)(3) of the ' Internal Revenue Code. The Federal Hightvav Grants Fund accounts for funds received pursuant to the Federal Highway/Transportation Acts, which are used for pre-approved highway projects. Application and funding processes are administered by ' Caltrans. The R. Z'Berg/Harris Grant Fund accounts for a State grant for preapproved park projects. The California If tldliife 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 I rehabilitation of the community redevelopment project areas and acquisition or construction of major capital facilities within the Rosemead Redevelopment Agency. ' 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. The Agency Fund accounts for the assets held in a trustee capacity or as an agent. The cash being held primarily represents amounts placed on deposit for refundable permits and performance bonds and deferred compensation plans for qualified employees. ~i -14- a vA " OG vrLALJ, UAL1r VKNIA NOTES TO FINANCIAL STATEMENTS ' Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant ' Accounting Policies (Continued) Account Groups: , The General Fixed Assets Account Group is used to account for fixed assets not accounted for in proprietary or trust funds. 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: j Cash investments and other investments: The City pools cash and investment resources of some of its funds in order to ' facilitate the management of cash. Cash applicable to a particular fund is readily identifiable. The balance in the pooled cash accounts is available to meet current operating requirements. All investments are stated at cost or amortized cost except those of the Deferred Compensation Plan and Pension Trust Fund, which are stated at market value. Investment earnings are allocated based on the source of funds. , Receivables: Property taxes attach as an enforceable lien on property as of March 1. Taxes are levied on July 1 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 oav 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 emplovIllent. 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, 1995 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. ' I 1] -15- U I Y OF ROSEMEAD, CALIFORNIA ' NOTES TO FINANCIAL STATEMENTS ' Note 1. Reporting Entity, Nature of Operations, Description of Funds and Account Groups, and Significant Accounting Policies (Continued) ' "Memorandum Only" total columns: Included on the combined financial statements are total columns captioned "Memorandum Only" to 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 1994 totals presented in the "Memorandum Only" columns are included to provide a summarized comparison with comparable 1995 amounts and are not intended to present all information necessarv for a fair presentation ' of financial position and results of operations in accordance with generally accepted accounting principles. ' Note 2. Current Accounting Development and Retroactive Restatement Disclosure About Tax-paver-Assessed Tax Revenues: Effective July 1, 1994, the City adopted Governmental Accounting ' Standards Board Statement No. 22, "Accounting for Taxpayer-Assessed Tax Revenues in Governmental Funds." which requires the City to recognize revenues from taxpayer-assessed taxes, such as sales, when they become both measurable and available. I be material. As a result of the adoption of Statement No. 22, the find balance of the General Fund has been retroactively restated to recognize the accrual of tax revenues. The effect of this restatement was to increase the fund balance by $415,248 from the amounts previously reported. Restatement. The beginning balance in the Capital Projects Fund has been retroactively restated to correct for prior year property tax revenues. The effect of this restatement was to increase fund balance by $219,565 from the amounts previously reported. Note 3. Budget Matters The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and estimated revenues for all governmental fund types. Actual expenditures may not exceed appropriations at the department level. 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. Budget amendments were nominal for the year. 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 In all funds, unexpended budgeted amounts lapse at the end of the budget year. -16- CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 4. Cash and Investments The components of cash and investments at June 30, 1995 are as follows: Cash in bank $ 1,390,629 Time certificates of deposit 2,094,941 Investments 2,929,083 Cash with fiscal agent 2,389,776 Guaranteed issuance contracts 17,785,850 Investment in State Treasury's Investment Pool 7,418,164 Investment in annuity contracts 583,839 $ 34,592.282 Cash: At year end, the carrying amount of the City's and Agency's deposits was $3,485,570 and the bank balance was $3,679,953. Of the bank balance, $252,815 was covered by federal depository insurance, and $3,427,138 was uninsured and uncollateralized. The balance consisted of the following: Cash in bank $ 1,390,629 Time certificates of deposit 2,094,941 $ 3.485.570 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 a City's and Agency's 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 value of 150% of an Agency's total deposits. The City and the Agency maintain cash and investment pools that are available for use by all funds. Each fund's or fund type's share of the pool balance is reported in the financial statements as "cash and cash investments." Earnings from the pooled investments are allocated monthly to each participating fund based on a formula that takes into consideration each fund's average investment in the pool. Investments: State statutes authorize the City to invest any available funds in securities issued or guaranteed by the United States Treasury or agencies of the United States, bank certificates of deposit, bankers acceptances, negotiable certificates of deposit. the State Treasurer's Investment Pool, repurchase agreements, commercial paper and bonds, registered warrants or treasure notes of the State of California and its local agencies. Investments included $237,788 which is invested in an annuity contract by the Trust and Agency Funds. Investments also included $17,785,850 of amounts invested in various Guaranteed Insurance Contracts which accrue interest quarterly at interest rates ranging from 7.18% to 7.41%, maturing through October 1, 1999. -17- H I 0 0 0 0 I 0 I D I I I lid t-i t Y Ur KU,,EMEAD, CALIFORNIA t~ NOTES TO FINANCIAL STATEMENTS Note 4. Cash and Investments (Continued) t Other investments are categorized in the following schedule to give an indication of the level of risk assumed by the entity i' at year end. x Category Carrying Market ' Investment Type 1 2 3 Amount Value U.S. government and government agency securities $ $ $ 872,179 $ 872,179 $ 873,668 State and municipal bonds 871,794 871,794 862,727 Corporate bonds 1,185,110 1,185,110 1,099,381 $ $ $ 2,929,083 2,929,083 2,835,776 ' Cash with fiscal agent 2,389,776 2,389,776 Guaranteed Insurance Contracts 17,785,850 17,785,850 ' Investment in State Treasurer's Investment Pool 7,418,164 7,418,164 Total other investments $ 30,522,873 $ 30,429,566 The three preceding risk description categories are defined as follows: ' Category Description 1 Investments that are insured, registered or for which the securities are held by the City or its agent in the ' City's name 2 Uninsured and unregistered investments for which the securities are held by counterparty's trust department (if a bank) or agent in the City's name 3 Uninsured and unregistered investments for which the securities are held by counterparty's trust department (if a bank) or agent, but not in the City's name Annuity contracts and cash in bank include $346,051 and $11,777, respectively, in the City's deferred compensation plan as of June 30, 1995. The annuity contracts are recorded at market value. ' Investment Loss: Prior to February 1995, the Agency's investments included corporate and government bonds with maturities extending through December 2043. At this time, the carrying value of these investments approximated $18,496,000 with a market value of approximately $16,131,400. In December 1994, the City and Agency affected a change ' in investment policy in order to conform to maturity limitations in the government code and to improve liquidity and reduce market value risk associated with longer term investments. As a result of this change, the Agency sold this portfolio, resulting in a loss due to a market value decline of $ 2,364,600. The proceeds from the sale were reinvested in the ' Guaranteed Investment Contracts referred to above. a i -18- 1 CITY OF ROSEMEAD, CALIFORNIA r 3 i NOTES TO FINANCIAL STATEMENTS Note S. Receivables Receivables as of June 30, 1995 consist of the following: Special Debt Capital Trust and Geneml Revenue Service projects tocv Total Property tax increment s - s - s - s 237,683 S - S 237,683 Accrued intenst 84,976 - 100,394 60,333 - 245,703 Due from local utility companies t't 717,796 - - - - 717,796 Due from other governmental agencies 728,909 1,514,753 - - 2,243,662 Transient occupancy taz 214,694 - - - - 214,694 Other 61.353 - - - r Ann AA osz 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 $493,801. 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 $212,431. The City is to collect this receivable from the utility company in 15 annual installments of $20,773, with the final installment due Jane 30, 2006. Note 6. Interfund Receivables and Payables Interfund receivables and payables as of June 30, 1995 are as follows General Special Revenue Funds: Traffic Safety State Gas Tax Local Transportation Fund Community Development Block Grant Low-Moderate Income Housing Set-Aside Fund Public Transportation Fund RZ' Berg/Harris Grant California Wildlife Grant Capital Projects Fund Trust and Agency Fund Types -19- Interfund Receivables Payables $ 1,126,693 $ - 4,681 20,875 43,955 1 - 834,362 423,574 - 201,557 238,370 , - 17,253 - 72,061 689,961 1,166,727 ' - 649,052 , 875 S 1,816,654 S 1,816,654 kA u Y UP' KUSEMEAD, CALIFORNIA I NOTES TO FINANCIAL STATEMENTS I Note 7. Property and Equipment Changes in property and equipment during the year ended June 30, 1995 were as follows: Land Buildings and improvements Vehicles Furniture and office equipment Special equipment and machinery Other improvements Balance Balance June 30, 1994 Ac quisitions Disp osals June 30, 1995 $ 2,893,234 $ - $ - $ 2,893,234 5,626,998 1,757,371 - 7,384,369 241,891 6,630 7,581 240,940 832,382 149,458 - 981,840 494,247 - 494,247 751,953 85,363 - 837,316 $ 10,840,705 $ 1,998,822 $ 7,581 $ 12,831,946 Note S. 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, 1995. 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 ("PERS"). The value of the annuity contract for retired employees was $346,051 as of June 30, 1995. 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, 1994 was $1,152,395 and total payroll was $1,710,384. 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 50 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 included as part of the City's reporting entity. ' Funding status and progress: The amount shown as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to ' be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the system on a going concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the system. -20- CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 8. Employee Pension Plans (Continued) The total PERS pension benefit obligation was computed as of June 30, 1994 as part of an actuarial valuation performed. Significant actuarial assumptions that will be used to determine the pension benefit obligation include: A rate of return on the investment of present and future assets of 8.5% per year compounded annually. Projected salary increases of 4.5% per year compounded annually, attributable to inflation. No increases attributable to seniority/merit. No postredrement benefit increases. The effect on the pension benefit obligation caused by changes in benefit provisions and actuarial assumptions reflected in the June 30, 1994 pension benefit obligation is a decrease of $219,996. A comparison of the pension benefit obligation applicable to the City's employees with the plan assets as of June 30, 1994 is as follows: Pension benefit obligation: Retirees and beneficiaries receiving benefits and terminated employees not yet receiving benefits $ 333,630 Current employees: Accumulated employee contributions including allocated investment earnings $ 137,640 Employer-financed, vested 1,302,500 Employer-financed, non-vested 40,581 1,480,721 Total pension benefit obligation $ 1,814,351 Net assets available for benefits, at cost (market value $1,575,262) 1.580,002 Unfunded pension benefit obligation $ 234,349 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 ends on June 30, 2000. 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. -21- CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 8. Employee Pension Plans (Continued) The contribution to the plan for the fiscal year ended June 30, 1995 totaling $178,518 was made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1994. The contribution consisted of Normal cost (6.761% of current covered payroll) Amortization of the unfunded actuarial accrued liability (8.73% of current covered payroll) $ 77,913 100,605 $ 178,518 ' Amounts contributed on behalf of City (8.491% of current covered payroll) Employees (7% and 9% of current covered payroll) $ 97,850 80,668 $ 178.518 Trend information: 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: Year Ended 1993 1994 Net Assets Available for Benefits 1,148,500 1,580,000 Unfunded (Overfunded) Pension Benefit Percentage Pension Benefit Obligation Funded Obligation Unfunded (Overfunded) Pension Benefit Contribution to Obligation System as Percentage of as Percentage of Annual Covered Covered Annual Covered Annual Pavroll Paymll Pavrnll 288,240 398.3 % $ (860,260)$ 1,318,110 (65.3)% 1.4 % 1,814,350 87.1 234,340 1,301,610 18.0 1.4 Showing unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation for analysis purposes. Note 9. 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 includable compensation. The deferred compensation is not available to employees until termination, retirement. death or unforeseeable emergency. The deferred compensation and accumulated earnings thereon totaled $357,828 at June 30, 1995. 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 benefitr 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. i a vi a~v,~r.irar,nu~ I. LLrUruvrA NOTES TO FINANCIAL STATEMENTS Note 10. 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 Cin of Rosemead, through the Authority, has a self-insured retention of $20,000. The amount exceeding the self-insured retention level will be shared pro-ratably among the pool up to a maximum of $500,000. Any losses above $500,000 are covered by excess insurance. 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. Note 11. Long-Term Debt Tax allocation bonds. Series 1993 A and B: In November 1993, the Rosemead Redevelopment Agency issued tax allocation bonds in the amount of $34,275,000 (Series 1993A) and taxable tax allocation refunding bonds in the amount of $2,435,000 (Series 1993B) to finance a portion of the cost of the redevelopment area known as Project Area No. 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 futttre debt service payments on the 1987 and 1991 tax allocation bonds. Series 1993A bonds mature on or after October 1, 2001, and Series 1993B bonds mature on or after October 1, 1995. Defeasance of Prior Debt: The Agency has advance refunded two bond issues, which are considered defLsed and, accordingly, the long-term debt liability, has been removed from the general long-term debt account group. The Agency is, however, contingently liable if, for any, reason, the funds on deposit are not sufficient to retire the defeased debt. On June 30. 1995, $21.635.000 of bonds outstanding are considered defeased. Compensated absences: That portion of the liability for the vested compensated absences totaling $233,364 which is not expected to be paid from available resources is reponed in the General Long-term Debt Account Group. Other lone-term debt: The City has included amounts in the long-term debt group of accounts for the litigation settlement and amounts owed the State of California, which were a result of the State budget (see Note 12). _23- C 1 [1 i i t X trr ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 11. Long-Term Debt (Continued) . The following is a summary of the general long-term'debt transactions for the year ended June 30, 1995: California Tax Allocation Tax Allocation Accrued Vacation and Budget Trailer Bonds Series Bonds Series Litigation Bill SB1135 1993A 1993B Settlement Compensatory Time T t l Balance, June 30, 1994 $ 175,330 $ 34,275,000 $ 2,435,000 $ 170,181 $ 142,634 S o a - 37 198 145 Payments of principal (175,330) - (260,000) , , (435 330) Increase _ _ _ Additions - , - Reductions in settlement 90,730 90,730 - - (27 939) Balance, June 30, 1995 $ - $ 34,275,000 $ 2,175,000 $ 142242 $ 233,364 $ (27,9 39) 36,825,606 The annual requirements, principal and interest to amortize the outstanding debt as of June 30 , 1995 are as fol lows: ' Accrued Series 1993 Vacation and A and B Litigation Compensatory ' During the Year Ending June 30, Bonds Settlement Time Interest Totals 1996 $ 265,000 $ 29,895 $ 233,634 $ 2,022,350 $ 2 550 879 1997 280,000 35,574 - 2,006,477 , , 2 322 051 1 1998 295,000 37,666 - 1999 310 1,989,427 , , 2,322,093 ,000 39,107 1,971,450 2,320 557 2000 330,000 - - 1,951,663 , 2 281 663 ' Years thereafter 34,970,000 - - $ 36 450 000 $ 41,800,090 , , 76,770,090 , , 142,242 $ 233,634 $ 51,741,457 $ 88,567,333 ' Note 12. Budget Overeapenditures and Deficit ' Expenditures exceeded appropriations for the year ended June 30, 1995 in the following special revenue funds: Amount ' A i of Over- ppropr ations Expenditures e Local Transportation Fund xpenditures $ 19,000 $ 113,218 $ Community Parklands Grant Fund 94,218 ' 22,550 23,215 Low-Moderate Income Housing Fund 150 665 150 Federal Highway Grant 100,000 196,844 California Wildlife Grant 96,844 88,830 93,217 4,387 The Rosemead Housing Development Corporation has a deficit fund balance of $48,235. The deficit balance originated at the time of major construction activities. Construction is now complete. It is anticipated that revenues will exceed expenditures in future years. t F' f f -24- CITY OF ROSEMEAD, CALIFORNIA NOTES TO FINANCIAL STATEMENTS Note 13. Commitments and Contingent Liabilities Low-Moderate Income Housine Set-Aside Fund: Under State law, the Agency is required to set aside a portion of its property tax increment revenues for low and moderate income housing. The Agency has made findings that, for the year ended June 30, 1991, it was allowed to defer funding of the set-aside. As of June 30, 1995, the accumulated set-aside amount not yet funded was $5,504,525. As required by law, the Agency devised a plan to fund the accumulating amount. The fiscal year ended June 30, 1994, 1995 and 1996 obligations are deferred until the fiscal year ending June 30, 2023, as provided by the Agency's adoption of the housing deficit repayment plan. 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. The City and the plaintiffs reached a settlement of the above referenced matter for $946,726. The City's insurers have agreed to pay $447,467, with the City paying the balance of $499,259. Of this amount, $300,000 was deposited in an escrow account in January 1994. The remaining amount of $199,259 will be paid over the neat five years at various interest rates not to exceed 5%. The present value of the remaining payments as of June 30, 1995 was $142,242. This amount is included in the City's long-term debt group of accounts as of June 30. 1995. ' 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 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 ton damages to their persons and property. The Fortune 500 companies have in turn filed claims with the cities asserting that, if they are liable, then the cities are proportionately liable. The City of 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 1995, the Agency approved an agreement with a local utility company to advance the utility company $117,600 required to install water distribution mains within the Agency redevelopment area The agreement was put on hold by the Agency and, as of October 13, 1995, the agreement continues to remain on hold. Note 14. 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. I -25- I { 1 1 5 1 1 1 i e 1 i 1 1 1 t s 1 i CITY OF ROSEMEAD, CALIFORNIA COMBINING AND INDIVIDUAL FUNDS AND ACCOUNT GROUPS FINANCIAL STATENIENTS YEAR ENDED JUNE 30, 1995 THIS PAGE INTENTIONALLY LEFT BLANK -26- i 1 1 t I GENERAL FUND The General Fund accounts for all financial resources except those required to be accounted for in another fund. These resources are devoted to financing the general ' services that the City performs for its citizens. i I I -27- CITY OF ROSEMEAD, CALIFORNIA ' GENERAL FUND BALANCESHEET ' f June 30, 1995 r 1 1995 1994 ' ASSETS Cash and investments $5,460,274 $5,079,143 ' Receivables 1,807,728 1,171,796 Due from other funds 1,126,693 718,608 ' Total Assets $8,394,695 $6,969,547 LIABILITIES AND MUNICIPAL EQUITY Liabilities: Accounts payable and accrued liabilities $681,525 $702,206 Due to other funds Due to other governmental agencies 320,000 ' Accrued vacation pay and compensatory time 5,782 1,927 Total Liabilities $1,007,307 $704,133 , Municipal Equity and Other Credits: Fund Balance: Reserved: , Long-term receivable $717,796 $730,141 , Unreserved: Undesignated 2,240,592 1,106,273 Designated 4,429,000 4,429,000 , Total Fund Balance $7,387,386 $6,265,414 Total Liabilities, Municipal Equity and Other Credits $8,394,695 $6,969,547 r F s u -28- CITY OF ROSEMEAD, CALIFORNIA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 REVENUES: ' Other Taxes Licenses and permits Intergovernmental Charges for services Fines, forfeitures and penalties Use of money and property Other Total Revenue EXPENDITURES: Current: General government Public safety Public works ' Public health Public recreation Community service Capital outlay Total Expenditures ' Revenue over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers: From other funds ' (To) other funds Total Other Financing Sources (Uses) Revenues and Other Financing Sources over (under) expenditures FUND BALANCE, BEGINNING Restatement of beginning fund balance Residual equity transfer ' FUND BALANCE, ENDING a S3,907,616 $4,011,829 699,234 812,096 2,928,590 2,643,582 548,962 428,883 280,636 231,551 289,451 428,049 146,262 168,533 $1,725,808 4,335,271 87,381 39,852 1,767,173 1,204,558 53,433 $2,023,405 4,187,980 371,754 17,665 1,711,251 1,011,108 39,541 59,213,476 $9,362,704 ($412,725) ($638,181) $1,371,557 $1,097,300 (252,106) (397,561) $706,726 $61,558 6,265,414 5,703,856 415,248 500,000 $7,387,388 $6,265,414 -29- CITY OF ROSEMEAD, CALIFORNIA GENERALFUND REVENUE DETAIL - BUDGET AND ACTUAL Fiscal Year Ended June 30, 1995 t f Over (Under) Budget Actual Budget 1994 TAXES Maintenance district $1,300 $1,336 $36 $1,192 Real estate transfer tax 35,000 36,739 1,739 36,696 Trailer coach fees 1,500 - (1,500) - Sales and use tax 2,550,000 2,552,644 32,644 2,704,229 Franchise fees 570,000 568,020 (1,980) 550,555 Transient occupancy tax 750,000 718,977 (31,123) 719,157 S3,907,800 53,907,616 ($184) $4,011,829 LICENSES AND PERMITS Business license fees 540,000 $39,676 ($324) $38,745 Building permit fees 750,000 470,999 (279,001) 669,676 Public work permit 36,000 67,206 31,206 36,967 Tentative map fees 16,000 2,IS6 (13,814) 15,405 Development review fees 1,000 3,116 2,116 - Final map fees 15,000 23,455 8,455 16,582 Occupancy permit fees 51,000 56,370 5,370 14,639 Sewer connection 22,000 34,095 12,095 20,082 Strong motion fees 2,000 2,101 101 - Rehabilitation permit fees 1,600 (1,600) 5934,600 S699,234 ($235,366) $512,096 INTERGOVERNMENTAL Financial aid to local agencies $450,000 5807,644 5357,644 $774,534 Motor vehicle in lieu tax 1,750,000 1,959,222 179,222 1,840 261 Other vehicle truces 850 869 19 556 State Highway Grant 71,260 160,855 59,595 - F.A.U. Grant 28,231 $2,302,110 52,928,590 $626,480 52,643,582 CHARGES FOR SERVICES Filing and cerdficm;on fees $20,000 547,858 527,858 $34,137 Other current charges 189,000 225,940 36,940 148,996 Environmental impact reports 100 400 300 - Recreation fees 202,000 224,286 22,286 247,640 Assessments 6,100 25,363 19,263 (1,890) Special community events 22,550 25,115 2,565 - S439,750 S54S,962 $109,212 5428,853 FINES, FORFEITURES AND PENALTIES Court tines and forfeitures 5233,000 $280,636 547,636 $231,551 USE OF MONEY AND PROPERTY Interest earned on investments 5210,190 $227,593 $17,703 $373,997 Rental Income 45,350 61,558 16,208 54,052 $255,540 $289,451 $33,911 $428,049 OTHER SANE program $45,000 $42,124 (52,876) $45,813 Repairs to and sale of City property 100 1,107 1,007 (1,456) Miscellaneous 139,600 103,031 (36,569) 124,176 $184,700 5146,262 ($38,438) $168,533 Total Revenues $8,257,500 58,800,751 $543,251 $8 724 523 -30- S CITY OF ROSEMEAD, CALIFORNIA GENERAL FUND EXPENDITURE DETAIL - BUDGET AND ACT UAL f f Fiscal Year Ended Jun e 30, 1995 i Over ' (Under) Budget Actual Budget 1994 ' GENERAL GOVERNMENT Travel and meeting 510,000 524,392 $14,392 $12,336 City council 66,000 59,961 (6,039) 59,905 City administration 479,225 456,339 (22,886) 491,990 ' City clerk 67,880 83,456 15,576 89,427 Finance 211,730 205,309 (6,421) 182,053 City treasurer 11,600 13,022 1,422 11,245 City attorney 145,000 163,829 18,829 500,502 ' General government buildings 402,700 390,979 (11,721) 408,239 Community promotion 273,730 299,868 26,138 233,860 City garage 27,010 28,653 1,643 33,848 ' 51,694,875 51,725,808 $30,933 $2,023,405 PUBLIC SAFETY Law enforcement 54,150,860 54,083,079 ($67,781) $3,959,800 Animal regulation 40,000 47,553 7,553 42,296 Parking control 121,080 118,484 (2,596) 130,179 ' Crossing guard Emergency services 81,650 11,500 75,743 10,412 (5,907) (1,088) 43,492 12,213 $4,405,090 54,335,271 ($69,819) $4,187,980 PUBLIC WORKS ' Engineering and administration 536,620 548,992 $12,372 $60,868 Street and highway construction 3,219 3,219 310,869 Traffic signs and striping maintenance 30,000 35,170 5,170 17 ' 566,620 587,381 520,761 $371,754 PUBLIC HEALTH Public health services $45,400 539,852 ($5,548) $17,665 PUBLIC RECREATION Administration 5177,070 5168,235 ($8,835) $175,622 ' Parks 832,470 740,400 (92,070) 719,406 Recreation 547,000 549,923 2,923 550,537 Aquatics 288,300 305,294 16,994 262,039 Dinsmoor Heritage House 4,100 3,321 (779) 3,647 $1,848,940 $1,767,173 (581,767) $1,711,251 COMMUNITY SERVICE Planning $219,486 5218,723 ($763) $156,211 Building regulation 560,000 378,261 (181,739) 532,732 Engineering 266,100 227,979 (38,121) 242,139 Community improvements 66,370 379,595 313,225 80,026 $1,111,956 $1,204,558 592,602 $1,011,108 CAPITAL OUTLAY 560,140 $53,433 ($6,707) $39,541 APPROPRIATION RESERVES $100,000 ($100,000) Total Expenditures $9,333,021 $9,213,476 ($119,545) $9,362,704 ' -31- f f f~ t 4 t t THIS PAGE INTENTIONALLY LEFT BLANK -32- 1 1 1 1 II }I i I 1 1 1 1 1 .1 1 1 1 i 1 s. i i 1 SPECIAL REVENUE FUNDS Special Revenue Funds account for the proceeds of specific revenue sources (other than special assessments, expendable trusts and major capital projects) that are legally restricted to expenditures for specified purposes. -33- 4 F F TRAFFIC SAFETY FUND SPECIAL REVENUE FUNDS 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 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. -34- i ' SPECIAL REVENUE FUNDS (cont'd) I t i~ i NARCOTICS SEIZURE FUND E i Established to account for the funds received from the County of Los Angeles from the confiscation of cash and other valuables seized during drug related police raids. The funds are used to further enhance the City's drug related crime prevention and detection programs. LOW-MODERATE INCOME HOUSING SET-ASIDE FUND Established to account for the 20% of gross property tax increment revenue received by the Agency to fund future projects involving the replacing or rehabilitation of low and moderate income housing within City limits. ' ROSEMEAD HOUSING DEVELOPMENT CORPORATION Established to account for the construction and financing of low and moderate income housing. It is a California nonprofit benefit corporation organized under Section 501(c)(3) of the Internal Revenue Code of 1986. ' FEDERAL HIGHWAY GRANTS FUND Established to account for the Federal Highway/Transportation Acts which are used for pre-approved highway projects. Application and funding processes are administered by Caltrans. R. Z'BERG/HARRIS GRANT FUND I E I i LI Established to account for a state grant for pre-approved specified park projects. CALIFORNIA WILDLIFE GRANT FUND Established to account for a state grant for pre-approved specified park projects. -35- CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1995 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 $ - $376,756 $131,769 $ - $275,902 $155,123 Receivables 4,681 24,045 15,923 - 116,315 1,194,977 Due from other funds 20,875 43,955 201,557 Total Assets $4,681 $421,676 $147,692 $43,955 $593,774 $1,350,100 LIABILITIES AND MUNICIPAL EQUITY Liabilities: Accounts payable $71,676 $492 $ - $75,424 $272,800 Due to other funds 4,681 - 238,370 834,362 Due to other governmental agencies 242,938 Total Liabilities $4,681 $71,676 $492 $313,794 $1,350,100 Municipal Equity: Reserved for low-moderate income housing $ - $ - $ - $ - $ - $ - Unreserved, undesignated - 350,000 147,200 43,955 279,980 Total Equity $ - 350,000 147.200 43,955 279,980 $ - Total Liabilities and Municipal Equity $4.681 $421,676 $147 692 $43,955 $593,774 $1,350100 -36- ' 1976 Community Low-Moderate Rosemead Parklands Street Narcotics Income Hous- Housing Federal R. Z'Berg/ Grant Lighting Seizure ing Set-Aside Development Highway Harris Fund Fund Fund Fund Corporation Grants Grant $28,948 $209,784 $32,174 $3,490,384 $125,600 12,400 34,291 2,214 17,253 ' 423,574 $41,348 $244,075 $32,174 $3,913,958 $127,814 $17,253 $1,324 $19,029 $10,511 $ - $176,049 $ - $ - ' 17,253 ' $1,324 919,029 $10 511 $ - $176,049 $ - $17,253 ' $ - $ - $ - $3,913,958 40,024 225,046 21,663 (48,235) ' $40,024 $225,046. $21,663 $3,913,958 ($48,235) $41348 $244,075 $32,174 $3,913,958 $127,814 $17253 I -37- THIS PAGE INTENTIONALLY LEFT BLANK -38- 1 r r r ASSETS r Cash and cash investments Receivables r Due from other funds Total Assets r LIABILITIES AND MUNICIPAL EQUITY r Liabilities: Accounts payable r Due to other funds Due to other governmental agencies r Total Liabilities Municipal Equity: ' Reserved for low-moderate income housing Unreserved, undesignated ' Total Equity Total Liabilities and r Municipal Equity 1 r r 1 1 r CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS (continued) COMBINING BALANCE SHEET June 30, 1995 California Wildlife Totals Grant 1995 1994 $4,826,440 $7,463,777 92,654 1,514,753 961,769 689,961 565,950 92,654 $7,031,154 $8,991,496 $20,591 $647,896 72,063 1,166,729 242,938, $92,654 2,057,563 $3,913,958 1,059,633 $4,973,591 $916,746 712,204 239,992 $6,353,876 768,678 $92,654 $7,031,154 $8.991,496 -39- CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Fiscal Year Ended June 30, 1995 REVENUES Special assessments Intergovernmental Charges for services Fines, forfeiture and penalties Use of money and property Other Total Revenues EXPENDITURES: Current: General government Public safety Public works Public Recreation Community services Investment loss Capital outlay Total Expenditure Revenue over (Linder) expenditures 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 S- S- S- 940,006 60,026 1,009,481 1,329,695 16,000 37,333 - 18,515 - - 18,442 _ $37,333 5974,521 560,026 S- $1,027,923 $1,329,695 S- S- S- S- 37,333 988,799 14,513 113,218 1,197,781 449,280 8,561 1,261 875,836 4,702 537,333 5997,360 $15,774 5113,218 $1,197,781 51,329,818 S- (522,839) 544,252 (5113,218) (5169,858) ($123) OTHER FINANCING SOURCES (USES): Operating transfers: From other funds $ - S - S- $113,218 (To) other funds - - - - S- S- 5113,218 Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING RESIDUAL EQUITY TRANSFER FUND BALANCE, ENDING $ - ($22,839) $44,252 $ - 372,839 102,948 43,955 S- 5123 S- $123 ($169,858) 449,838 S- $350,000 $147.200 $43,955 5279 980 S_ 1 -40- 0 1 s , 1976 t Community Low-Modcrate Rosemead Parklands Street Narcotics Income Housing Housing Federal R. Z'Rerg/ Grant Lighting Seizure Set-Aside Development Highway Harris Fund Fund Fund Fund Corporation Grants Grant S- $386,814 S- S- S- 12,400 343,438 17,253 ' 4,225 3,655 222,108 41,671 ' $16,625 $386,814 $3,655 $222,108 $41,671 $343,438 $17,253 ' S_ $ - 245,446 48,821 S150 $119,347 S_ $ - 196,844 23,215 17,792 ' 461,876 1,632,536 ' S23,215 $245,446 S48,821 S462,026 $1,751,883 S196,844 $17,792 (S6,590) $141,368 (S45,166) ($239,918) (S1,710,212) $146,594 ($539) ' $ - $ - $ - $ - $2,200,000 S- $539 (2,200,000) (140,000 146,594 (S2,200,000) $2,060,000 $146,594 $539 ' (S6,590) S141,368 ($45,166) ($2,439,918) $349,788 S- 46,614 83,678 66,829 6,353,876 (398,023) ' S40,024 5225.046 $21,663 S3,913,958 ($48,235) S- s t _41- CITY OF ROSEMEAD, CALIFORNIA SPECIAL REVENUE FUNDS (continued) COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Fiscal Year Ended June 30, 1995 REVENUES Special assessments Intergovernmental Charges for services Fines, forfeiture and penalties Use of money and property Other Total Revenues EXPENDITURES: Current: General government Public safety Public works Public Recreation Community services Investment loss Capital outlay Total Expenditure Revenue over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers: From other funds (To) other funds Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING RESIDUAL EQUITY TRANSFER FUND BALANCE, ENDING California Wildlife Totals Grant 1995 1994 5 - 5386,814 $342,315 92,654 31804,953 3,341,960 - 16,000 1,049 - 37,333 107,235 - 266,945 324,596 - 41,671 73,006 592,654 $4,553,716 54,190,161 - 5119,497 5431,117 331,600 408,612 2,960,435 2,903,248 93,217 134,224 8,173 885,658 1,081,730 461,876 1,637,238 1,837,331 593,217 86,530,528 $6,670,211 (5563) (51,976,812) (52,480,050) $563 $2,314,443 $1,916,187 (2,486,594) (1,668,626) $563 ($172,151) S247,561 ($2,148,963) (52,232,489) 7,122,554 9,855,043 (500,000) S- 54,973,591 S7,122,554 -42- ' CITY OF ROSEMEAD, CALIFORNIA TRAFFIC SAFETY FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 REVENUES: Fines, forfeiture and penalties ' Total Revenues ' EXPENDITURES: Public safety ' Total Expenditures Revenues over (under) expenditures ' FUND BALANCE, BEGINNING FUND BALANCE, ENDING Budget Actual 590.000 537.333 Over (Under) Budget 1994 ($52.667) $107.235 590,000 537,333 (552,667) $107,235 590.000 $37.333 ($52.667) 5107235 S- S- S- S- S- S- S- S- -43- i t CITY OF ROSEMEAD, CALIFORNIA STATE GAS TAX FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANCES IN FUND BALANCE Fiscal Year Ended Jura 30, 1995 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 5342,500 5940,006 $97,506 8,150 16,000 7,850 640 18,515 17,875 5851,290 5974,521 S123,231 S1,044,200 S988,799 (555,401) 7,500 8,561 1,061 51,051,700 5997,360 ($54,340) (5200,410) (522,839) S177,571 (5200,410) (S22,839) $177,571 216,078 372,839 156,761 515,663 S350,000 S334,332 -44- 1 1 1994 S936,417 568 , 18,704, 5955,689 5983,692 , $983,692 (528,003) (S18,626) (546,629) 419,468 S372,839 CITY OF ROSEMEAD CALIFORNIA , AIR QUALITY MANAGEMENT DISTRICT FUND STATEMENT OF REVENUE, EXP ENDITURES AND CHANGES IN FUND BA LANCE Fiscal Year Ended June 30, 1995 Over (Under) Budget Actual Budget 1994 ' REVENUES: Intergovernmental $55,000 $60,026 55,026 $72,465 Charges for services 150 - (150) 152 Use of money and property 914 (914) Total Revenues 556,064 $60,026 $3,962 $72,617 EXPENDITURES: Public works 5118,000 $14,513 ($103,487) S55,011 Community Services 1,261 1,261 Total Expenditures 5118,000 $15,774 ($102,226) $55,011 Revenues over (under) expenditures (561,936) 544,252 ($106,188) $17,606 OTHER FINANCING SOURCES (USES): Operating transfers: (To) other funds $ - S- $ - - $ - Revenue and other financing s ources 1 over(under)expenditures (561,936) 544,252 5106,188 $17,606 FUND BALANCE, BEGINNING 84,346 102,948 18,602 85,342 FUND BALANCE; ENDING 522,410 $147,200 5124,790 5102948 -45- CITY OF ROSEMEAD, CALIFORNIA a STA LOCAL TRANSPORTATION FUND TEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 Over (Under) Budget Actual Budget 1994 ' REVENUES: Intergovernmental 519,000 ($19,000) $37,233 Charges for services 304 , Total Revenues $19,000 S- ($19,000) $37,537 , EXPENDITURES: Public works $19,000 $113,218 $94,218 $22,026 Tot dit l E $19 000 $113 218 $94 218 $22 026 ' a xpen ures , , , , Revenues over (under) expenditures S - ($113,218) $113,218 $15,511 ' OTHER FINANCING SOURCES (USES): Operating transfers: ' Frotn/(To) other funds S - 5113,218 5113,218 $ - Revenue and other financing sources over (under) expenditures S- S- So $15,511 , FUND BALANCE, BEGINNING - 43,955 43,955 28,444 , FUND BALANCE, ENDING S- 543,955 543,955 $43,955 I I _46- ' ' CITY OF ROSEMEAD, CALIFORNIA PUBLIC TRANSPORTATION FUND ' STATEMENT OF REVENUE, EXPENDITURES AND CHANCES IN FUND BALANCE Fiscal Year Ended June 30, 1995 w REVENUES: Intergovernmental Charges for services Use of money and property Other Total Revenues ' EXPENDITURES: Current: Public works ' Community services Capital Outlay Total Expenditures Revenues over (under) expenditures ' OTHER FINANCING SOURCES (USES): Operating transfers: (To) other funds Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING 0 Over (Under) Budget Actual Budget 1994 $925,000 $1,009,481 $84,481 $906,039 - 205 8,130 18,442 10,312 31,928 150 (150) 1,900 $933,280 $1,027,923 394,643 $940,072 $1,203,200 $1,197,781 ($5,419) $965,317 655,255 $1,203,200 $1,197,781 ($5,419) $1,620,572 ($269,920) ($169,858) ($100,062) ($680,500) $ - $ - $ - $27,528 (5269,920) ($169,858) $100,062 ($652,972) 462,705 449,838 (12,867) 1,102,810 $192,785 $279980 $87,195 $449,838 -47- CITY OF ROSEMEAD, CALIFORNIA COMMUNITY DEVELOPMENT BLOCK GRANT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 REVENUES: Intergovernmental Charges for services Total Revenues EXPENDITURES: Current: General government 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 51,993,770 $1,329,695 ($664,075) $],993,770 51,329,695 ($664,075) S- S- 5- 935,000 449,280 (485,720) 1,055,270 875,836 (179,434) 3,500 4,702 1,202 51,993,770 51,329,818 (5663,952) S- (5123) (5123) S - S123 S123 S- S- S- S- S- S- -48- a 1994 $818,523 124 , 5818,647 S411,728 , 86,246 426,475 5924,449 ($105,802) 5105,802 ' S- , , S- CITY OF ROSEMEAD, CALIFORNIA ' 1976 COMMUNITY PARKLANDS GRANT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 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 1994 $470 512,400 $11,930 4,225 4,225 12,671 $22,550 523,215 $665 $22,550 523,215 $665 5- ($22,080) ($6,590) $15,490 $12,671 (522,080) 33,943 $11,863 ($6,590) 46,614 540,024 $15,490 12,671 $28,161 $12,671 33,943 $46,614 -49- CITY OF ROSEMEAD, CALIFORNIA , STREET LIGHTING FUND STATE MENT OF REVENUE, EXPENDITURES ' AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 Over (Under) Budget Actual Budget 1994 REVENUES: Special Assessment 5380,000 5386,814 56,814 5342,315 Total Revenues S380,000 5386,814 56,814 5342,315 ' EXPENDITURES: Public safety 5266,000 5245,446 ($20,554) $229,387 Total Expenditures $266,000 $245,446 (520,554) $229,387 Revenues over (under) expenditures $114,000 $141,368 527,368 $112,928 ' OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds S- S- S- S - Revenue and other financing sources over (under) expenditures 5114,000 5141,368 527,368 $112,928 , FUND BALANCE, BEGINNING 603,750 83,678 (520,072) 470,750 RESIDUAL EQUITY TRANSFER (500,000) , FUND BALANCE, ENDING 5717,750 5225,046 (5492,704) 583,678 -50- ' 1 CITY OF ROSEMEAD, CALIFORNIA NARCOTICS SEIZURE FUND 1 STATE MENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 1 1 Over (Under) Budget Actual Budget 1994 i REVENUES: Intergovernmental 51,000 S- (51,000) S- 1 Use of money and property 2,830 3,655 825 3,000 Total Revenues $3,830 53,655 (5175) $3,000 1 EXPENDITURES: Public Safety 552,750 548,821 ($3,929) 516,979 1 Total Expenditures 552,750 548,821 ($3,929) 516,979 1 Revenues over (under) expenditures (548,920) (545,166) 53,754 ($13,979) OTHER FINANCING SOURCES (USES): 1 Operating transfers: - - From (To) other funds S- s_ s- S - Revenue and other financing sources 1 over(under)expenditures (548,920) ($45,166) 53,754 ($13,979) FUND BALANCE, BEGINNING 61,378 66,829 5,451 80,808 1 5 566 829 FUND BALANCE, ENDING 512.458 521,663 59,20 , i 1 i i i 1 1 _51_ CITY OF ROSEMEAD, CALIFORNIA LOW-MODERATE INCOME HOUSING FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 REVENUES: Use of money and property Other Total Revenues 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 Over (Under) Budget Actual Budget 5113,500 5222,108 5108,608 10,000 (10,000) $123,500 5222,108 $98,608 S- 5150 461,876 $150 461,876 S123,5 00 ($239,918) ($363,418) (52,833.100) (52,200,000) 5633,100 (S2,709,600) (52,439,918) 5269,682 6,095,178 6,353,876 258,698 S3.3 55,578 53,913,958 5528,380 -52- 1994 5257,989 65,561 ' 5323,550 S281 5281 i 5323,269 (51,500,000) (51,176,731) 7,530,607 ' 56,353,876 i ' CITY OF ROSEMEAD, CALIFORNIA ROSEMEAD HOUSING DEVELOPMENT CORPORATION ' STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 REVENUES: Other ' Total Revenues ' EXPENDITURES: General government Capital Outlay ' Total Expenditures ' Revenues over (under) expenditures OTHER FINANCING SOURCES (USES): ' Operating transfers: From other funds (To) other funds ' Total Other Financing Sources (Uses) ' Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING ' FUND BALANCE, ENDING Over (Under) Budget Actual Budget 1994 5500 541,671 541,171 $5,545 5500 541,671 541,171 55,545 $18,600 S119,347 S100,747 S19,108 2,665,000 1,632,536 (1,032,464) 1,837,331 52,683,600 S1,751,883 (5931,717) 51,856,439 ($2,683,100) (S 1,710,212) (5972,888) ($1,850,894) 52,833,100 52,200,000 ($633,100) $1,200,000 (150,000) (140,000) 10,000 150,000 52,683,100 52,060,000 (5623,100) 51,350,000 S- 5349,788 5349,788 (S500,894) (398,023) (398,023) 102 871 S- (848 235) (548,235) (S398,023) -53- CITY OF ROSEMEAD CALIFORNIA ' , FEDERAL HIGHWAY GRANTS FUND STATEMENT OF REVENUE, EXPENDITURES , AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 REVENUES: Intergovernmental 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 1994 ' $108,600 $343,438 5234,838 5571,283 600 5108 5343 438 5234 838 5571 283 , , , , , , 5100,000 5196,844 596,844 5854,140 5100,000 5196,844 596,844 5854,140 ' S8,600 S146,594 5137,994 (5282,857) S- (146,594) (146,594) 282,857 t 58,600 S- (58,600) ' 58,600 S- (S8,600) S- , t -54- ' ' CITY OF ROSEMEAD, CALIFORNIA R. Z'BERG/HARRIS GRANT FUND ' STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 ' REVENUES: Intergovernmental 1 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 FUN BALANCE, BEGINNING ' FUND BALANCE, ENDING i' Over (Under) Budget Actual Budget 1994 $17,250 $17,253 $3 $17,250 $17,253 $3 $17,250 $17,792 $542 $17,250 $17,792 $542 S- S- ($539) ($539) S- $539 $539 $ - S- $ $ -55- ' CITY OF ROSEMEAD, CALIFORNIA CALIFORNIA WILDLIFE FUND STATEMENT OF REVENUE, EXPENDITURES ' AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 Over ' (Under) Budget Actual Budget 1994 REVENUES: ' Intergovernmental $90,680 $92,654 $1,974 S- Total Revenues $90,680 $92,654 $1,974 ' EXPENDITURES: Public Recreation $88,830 593,217 $4,387 S. Total Expenditures $88,830 $93,217 $4,387 t Revenues over(under)expenditures $1,850 ($563) ($2,413) B- OTHER FINANCING SOURCES (USES): Operating transfers: From (To) other funds S- $563 S563 S - , Revenue and other financing sources over(under)expenditures 51,850 S- (51,850) S- ' FUND BALANCE, BEGINNING S- 0 S- FUND BALANCE, ENDING $1,850 (51,850) S- -56- ' it ►1 I 1 1 1 .1 1 1 0 i 0 D 1 1 1 CAPITAL PROJECTS FUND (Redevelopment Fund) The Capital Projects Fund accounts for financial resources to be used for the acquisition or construction of major capital facilities within the Redevelopment Agency. -57- 1 CITY OF ROSEMEAD, CALIFORNIA CAPITAL PROJECTS FUND BALANCESHEET June 30, 1995 1995 1994 ASSETS Cash and investments Receivables Due from other funds $21,217,659 298,016 $21,930,680 771,084 Total Assets $21 515,675 $22,701,764 LIABILITIES AND MUNICIPAL EQUITY Liabilities: Checks in excess of bank balance Accounts payable and accrued liabilities Arbitrage rebate payable Due to City of Rosemead Due to other funds Total Liabilities Municipal Equity and Other Credits: Fund Balance: Unreserved: Designated for capital projects Total Fund Balance $894,599 185,896 225,478 423,574 $1,729,547 5- 26,680 153,976 572,354 $753,010 " Total Liabilities, Municipal Equity and Other Credits -58- 19,786,128 21,948,754 519,786,128 $21,948,754 $21515,675 $22,701,764 ' CITY OF ROSEMEAD, CALIFORNIA ' CAPITAL PROJECTS FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Fiscal Year Ended June 30, 1995 REVENUES: ' Property tax increment Interest Other ' Total Revenue EXPENDITURES: Current: ' 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 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 1995 53,411,909 624,549 45,697 1994 53,185,746 966,619 65,876 $1,353,137 5821,431 66,462 57,123 953,737 981,317 175,330 175,295 (153,976) (59,745) 23,071 20,966 1,902,724 S4,320,485 51,996,387 (5238,330) $2,221,854 $17,633,419 (2,143,861) (3,019,123) ($2,143,861) $14,614,296 ($2,382,191) $16,836,150 21,948,754 5,112,604 219,565 $19,786,128 S21,948,754 -59- CITY OF ROSEMEAD, CALIFORNIA CAPITAL PROJECTS FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Fiscal Year Ended June 30, 1995 Over (Under) Budget Actual Budget 1994 ' REVENUE Property tax increment S3, 170,000 S3,411,909 S241,909 $3,185,746 Interest 602,500 624,549 22,049 966,619 ' Other 136,000 45,697 (90,303) 65,876 53,908,500 $4,082,155 $173,655 $4,218,241 ' EXPENDITURES Improvements to project area S4,002,350 51,353,137 (S2,649,213) $821,431 ' Professional fees 43,500 66,462 22,962 57,123 City administrative services 959,200 953,737 (5,463) 981,317 Intergovernmental 175,300 175,330 30 175,295 Arbitrage rebate expense (153,976) (153,976) (59,745) t Capital outlay 27,750 23,071 (4,679) 20,966 Investment loss 1,902,724 1,902,724 208 100 S5 $4 320 485 (5887 615) $1 996 387 ' . , , , , , , Revenue over(under)expenditures (S1,299,600) (5238,330) S1,061,270 52,221,854 OTHER FINANCING SOURCES (USES): Proceeds from sale of bonds, net of discounts of 5701,815 S- $17,633,419 ' Operating transfers: From other funds (To) other funds (2 279 153) (2 143 861) 135 292 (3 019 123) ' , , , , , , , Total Other Financing Sources (Uses) (52,279,153) ($2,143,861) 5135,292 $14,614,296 t Revenue and other financing sources over (under) expenditures ($3,578,753) (52,382,191) $1,196,562 $16,836,150 FUND BALANCE BEGINNING 21 542 006 21 948 754 406 48 , , , , , ,7 5,112,604 PRIOR PERIOD ADJUSTMENT 219,565 219,565 ' FUND BALANCE, ENDING 517,963,253 519,786,128 51,822,875 $21,948,754 1 t -60- ' r 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, 1995 ASSETS Cash and investments with fiscal agent Receivables Total Assets LIABILITIES AND MUNICH'AL EQUITY Liabilities: Accounts payable and accrued liabilities Total Liabilities Municipal Equity and Other Credits: Fund Balance: Reserved: Debt service Total Fund Balance Total Liabilities, Municipal Equity and Other Credits 1995 1994 $2,390,426 100,394 $2,490,820 $2,490,820 $2,490,820 $2,490,820 $2,322,901 100,394 $2,423,295 $2,423,295 $2,423,295 $2,423,295 -62- ' CITY OF ROSEMEAD, CALIFORNIA DEBT SERVICE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ' Fiscal Year Ended Tune 30, 1995 t 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- 1995 5202,817 5202,817 S260,000 2,019,153 $2,279,153 ($2,076,336) 5- 2,143,861 1994 5168,395 $168,395 $2,055,000 1,137,474 2,651,000 183,403 $6,026,877 (55,858,482) S18,374,766 (17,034,949) 3,019,123 $2,143,861 54,358,940 567,525 (51,499,542) 2,423,296 3,922,838 52,490,821 $2,423,296 CITY OF ROSEMEAD, CALIFORNIA DEBT SERVICE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Fiscal Year Ended June 30, 1995 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 535,000 5202,817 $167,817 535,000 S202,817 5167,817 2,019,153 2,019,153 260,000 260,000 52,279,153 $2,279,153 SO ($2,244,153) ($2,076,336) $167,817 S- S- 2,279,153 2,143,861 $2,279,153 52,143,861 $35,000 5,300,805 55,335,805 S67,525 2,423,296 52,490,821 -64- (135,292) ($135,292) $32,525 (2,877,509) (52,844,984) 1994 $168,395 $183,403 2,055,000 1,137,474 2,651,000 $6,026,877 ($5,858,482) $18,374,766 (17,034,949) 3,019,123 $4,358,940 ($1,499,542) 3,922,838 $2,423,296 4 is k~ 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. -65- CITY OF ROSEMEAD, CALIFORNIA FIDUCIARY FUNDS COMBINING BALANCE SHEET June 30, 1995 ASSETS Cash and cash investments Investments in deferred compensation plan Investments in annuity contracts Total Assets LIABILITIES AND MUNICIPAL EQUITY Liabilities: Refundable deposits 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 Totals Fund Deposits Compensation 1995 1994 $237,788 5101,867 $11,777 $351,432 $98,335 346,051 346,051 276,853 3,600 3,600 247,513 $237,788 5105,467 $357,828 $701,083 5622,701 S- $875 S- 104,592 357,828 S- 5105,467 $357,828 $237,788 S- S $875 104,592 83,518 357,828 291,670 $463,295 S375,188 5237,788 5247,513 5701,083 $622,701 -66- ' CITY OF ROSENIEAD, CALIFORNIA ALL AGENCY FUNDS ' COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES i ' Fiscal Year Ended June 30, 1995 ' REFUNDABLE DEPOSIT FUND: ' Assets Cash and cash investments Receivable Total Assets Liabilities Refundable deposits ' EMPLOYEES DEFERRED COMPENSATION FUND: ' Assets Cash and cash investments Investments in deferred ' compensation plan Total Assets ' Liabilities Deferred compensation Balance Balance July 1, 1994 Additions Deductions June 30, 1995 $83,518 $18,349 $101,867 3,600 3,600 $83,518 $21,949 $105,467 $83,518 $21,074 $ $104,592 875 875 $83,518 $21,949 $105,467 $14,817 $3,040 $11,777 276,853 69,198 346,051 $291,670 $69,198 $3,040 $357,828 $291,670 $69,198 $3,040 $357,828 -67- r t i T THIS PAGE INTENTIONALLY LEFT BLANK -68- t t~ r i t~ l ACCOUNT GROUPS t 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). i 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. I -69 CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF GENERAL FINED ASSETS June 30, 1995 General Fixed Assets Land $2,893,234 Buildings and improvements 7,384,369 Vehicles 240,940 Furniture and office equipment 981,840 Special equipment and machinery 494,247 Other improvements 837,316 Total General Fixed Assets S12,831,946 SOURCES OF FUNDS Beginning Balance S10,840,705 General Fund 37,830 Community Development Block Grant 54,767 Community Parklands Grant 1,353 California Wildlife Grant 84,010 Redevelopment Agency 180,664 Rosemead Housing Development Corporation 1,632,617 Ending Balance S12,831,946 -70- S2,893,234 5,626,999 241,891 832,382 494,247 751,952 $10,840,705 i i i i CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF CHANGES OF GENERAL FIXED ASSETS Fiscal Year Ended June 30, 1995 Balance Balance Function and Activity July 1, 1994 Additions Deletions June 30, 1995 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 306,869 72,699 - 379,568 Housing Development Corporation 1,837,252 1,632,616 - 3,469,868 Total buildings and improvements $5,626,999 $1,757,370 $7,384,369 Vehicles Prior year balance $230,588 $230,588 General government 13,667 6,630 7,581 12,716 Transportation (2,364) (2,364) Total vehicles $241.891 $6,630 $7,581 $240,940 Furniture and office equipment Prior year balance $793,682 $793,682 General government 95 31,997 32,092 Community Development 9,496 9,496 Public Recreation 2,255 2,255 Redevelopment Agency 36,350 107,965 144,315 Total furniture and once equipment $832.382 $149,458 $981,840 Special equipment and machinery Prior year balance $490,765 $490,765 Cultural & leisure 3,482 31482 Total special equipment and machinery $494,247 $0 $494,247 Other improvements Prior year balance $748,492 $748,492 Cultural & leisure 3,460 85,364 88,824 Total other improvements $751,952 $85,364 $837,316 Total general fixed assets $10,840,705 $1.998,822 $7,581 $12,831,946 -71- THIS PAGE INTENTIONALLY LEFT BLANK -72- ~t 1 F 1 t~ i 1 i 1 1 1 i 1 ~I Notes: The City of Rosemead does not iava,ravenue bonds, therefore, the Revenue Bond Coverage - Last Ten Fiscal Years schedule is not included- S T A T S C A L S tti' t. 3 I In u 1 I I 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 1985-86 $3,044,452 $3,282,592 $1,161,133 $240,599 $1,411,281 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 (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- Community Capital Debt Inter- Services Outlay Service governmental Other Total $604,797 $1,297,837 $11,042,691 1,239,472 - 1,319,863 - - 16,535,507 ' 906,176 36,184 1,912,681 - 339,240 15,241,264 1,528,378 840,338 2,640,807 7,459 - 20,039,703 ' 1,510,545 123,443 2,618,539 - - 20,942,080 ' 2,070,348 160,397 2,602,350 - - 20,271,039 1,592,156 144,180 2,588,617 - - 22,117,233 1,411,467 36,384 2,569,813 580,791 213,721 16,964,469 2,092,838 1,897,838 6,026,877 175,295 (59,745) 23,108,879 2,090,216 1,713,742 2,279,153 175,330 2,210,624 21,396,342 Millions $10 $8 ' $6 $4 ' $2 ' $0 CITY OF ROSEMEAD, CALIFORNIA GENERAL REVENUES BY SOURCE (1) ALL GOVERNMENTAL FUND TYPES Last Ten Fiscal Years Fiscal Property Special Other Licenses Inter- Year Tax Assessments Taxes and Permits governmental 1985-86 $1,655,865 $193,097 $2,903,490 $429,481 $3,925,603 1986-87 4,235,972 215,186 3,048,707 480,529 5,309,161 1987-88 2,905,521 241,257 3,351,856 512,699 3,464,227 1988-89 3,921,667 273,777 3,591,798 496,966 4,518,697 1989-90 3,204,232 303,374 4,176,257 533,050 3,725,299 1990-91 3,059,892 347,061 4,245,201 479,084 4,557,510 1991-92 3,746,398 384,036 3,787,547 554,935 4,824,498 1992-93 3,379,446 395,646 3,866,690 579,124 5,174,436 1993-94 3,185,746 342,315 4,011,829 812,096 5,985,542 1994-95 3,411,909 386,814 3,907,616 699,234 6,733,543 (1) . Includes General, Speci al Revenues, and Capital Projects Funds. -76- r °r Charges for Services $263,558 r 268,037 r 293,903 338,686 r 284 851 , r 228,615 366,345 r 347,262 r 429,932 564,962 1 Fines, Forfeitures and Penalties $313,147 444,131 449,495 477,896 524,001 355,047 278,253 313,980 338,786 317,969 Millions r $7 $6 Use of Money and Property $2,311,866 1,900,145 2,621,930 2,788,346 2,389,057 1,844,552 1,625,706 1,258, 827 1,887,659 1.383.762 -7-7- Other $89,719 38,420 212,503 97,468 191,389 165,237 391,194 318,603 307,415 233,630 Total $12,085,826 15,940,288 14,053,391 16,505,301 15,331,510 15,282,199 15,958,912 15,634,014 17, 301, 320 17,639,439 1991-92 1992-93 1993-94 1994-95 ®Intergovt. OProp. Tax ElOtherTaxes ®Use of M & P Omisc. ®Lic. & Permits I■Fines, For. & Pen. 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 1985-86 $4,061 $49,308 $1,351 $2,339,127 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 1994-95 1,336 36,739 - 2,582,644 -78- L i' I ' Transient Franchise Occupancy Fees Tax Total $293,302 $216,341 $2,903,490 269,760 232,736 3,048,707 336,628 251,170 3,351,856 461,620 312,261 3,591,798 494,223 332,140 4,176,257 a 556,710 551,256 4,245,201 525,327 523,767 3,787,547 Q 547,920 626,743 3,866,690 Q 550,555 719,157 4,011,829 568,020 718,877 3,907,616 O a -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 1985-86 $337,467,010 $554,010,610 $30,623,894 $ 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 (1) Effective with fiscal year 1988-89, Unitary and Operating Non-unitary assessed valuation are listed separately. Source: Los Angeles County Auditor-Controller, Tax Division -so- S 0 0 0 0 0 Locally Assessed Personal Land Improvements Property Total Property Exemptions Net Property Value - $10,441,676 $44,234,638 $976,777,828 $18,142,141 $958,635,687 - 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 -81- NET PROPERTY VALUE Millions CITY OF ROSEMEAD, CALIFORNIA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS LIGHTING AND MAINTENANCE DISTRICT Last Ten Fiscal Years Assessment Fiscal Year Levy 1985-86 206,704 1986-87 223,795 1987-88 250,406 1988-89 285,712 1989-90 315,287 1990-91 314,824 1991-92 350,800 1992-93 388,417 1993-94 347,298 1994-95 339,205 _82_ Current Assessment Collected 193,097 215,186 241,257 275,977 304,072 355,366 385,345 398,073 343,507 388,150 Percentage Collected , Currently 93.42 % , 95.15 ' 96.35 96.59 ' 96.44 112.88 109 85 ' . 102.49 ' 98.91 ' 114.43 ' CITY OF ROSEMEAD, CALIFORNIA COMPUTATION OF LEGAL DEBT MARGIN June 30, 1995 Total assessed valuation Debt limit: 3.75% of total assessed valuation Amount of debt applicable to debt limit: a Total bonded debt $36,450,000 Less tax allocation notes exempt by law 36,450,000 0 Total amount of debt application to debt limit 0 Legal debt margin a ' -83- $ 1,870,779,583 $ 70,154,234 0 $ 70,154,234 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 1985-86 $875,000 $404,000 $1,279,000 $11,042,691 11.58 % 1986-87 950,000 346,875 1,296,875 16,535,507 7.84 1987-88 1,000,000 902,173 1,902,173 15,241,264 12.48 1988-89 1,420,000 1,218,143 2,638,143 20,039,703 13.16 1989-90 1,515,000 1,101,760 2,616,760 20,942,080 12.50 1990-91 1,630,000 972,350 2,602,350 20,271,039 12.84 1991-92 1,760,000 828,617 2,588,617 22,117,233 11.70 1992-93 1,900,000 669,813 2,569,813 16,964,469 15.15 1993-94 2,055,000 1,137,474 3,192,474 23,108,879 13.81 1994-95 260,000 2,019,153 2,279,153 21,396,342 10.65 (1) Includes all Governmental Fund Types. Premium for defeasement of bonds not included -84- r i E G $25 O $20 O $15 $10 D $5 a $0 1985-86 $25 ' $20 $15 ' $10 t' { $5 k' i ' $0 i 1990-91 i1 TOTAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Millions Millions 1986-87 1987-88 1988-89 1989-90 1991-92 1992-93 1993-94 1994-95 -85- CITY OF ROSEMEAD, CALIFORNIA RATIO OF ANNUAL DEBT SERVICE EXPENDITURE FOR TOTAL BONDED DEBT TO TOTAL ASSESSED VALUATION Last Ten Fiscal Years Debt Service Total To Total Fiscal Total Debt Assessed Assessed Year Principal Interest Service Valuation Valuation 1985-86 $875,000 $404,000 $1,279,000 $958,635,687 0.13 % 1986-87 950,000 346,875 1,296,875 1,054,685,341 0.12 1987-88 1,000,000 902,173 1,902,173 1,181,242,016 0.16 1988-89 1,420,000 1,218,143 2,638,143 1,227,774,062 0.21 1989-90 1,515,000 1,101,760 2,616,760 1,389,491,653 0.19 1990-91 1,630,000 972,350 2,602,350 1,493,702,235 0.17 1991-92 1,760,000 828,617 2,588,617 1,661,779,820 0.16 1992-93 1,900,000 669,813 2,569,813 1,775,098,110 0.15 1993-94 2,055,000 1,137,474 3,192,474 1,829,614,357 0.17 1994-95 260,000 2,019,153 2,279,153 1,870,779,583 0.12 -86- CITY OF ROSEMEAD, CALIFORNIA RATI O OF ANNUAL DEBT SERVICE EXPENDITURE FOR TOTAL BONDED DEBT PER CAPITA Last Ten Fiscal Years a Debt Service Fiscal Total Debt To Total a Year Principal Interest Service Population Population 1985-86 $875,000 $404,000 $1,279,000 46,627 $27.43 1986-87 950,000 346,875 1,296,875 46,893 27.66 D 1987 88 1 000 000 902 173 902 173 1 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 1 9 1 1 630 000 602 972 350 2 350 52 247 49 81 9 0-9 , , , , , , . a 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 1 93 94 2 055 000 474 3 192 474 1 137 798 53 59 34 - 9 , , , , , , , . 1994-95 260,000 2,019,153 2,279,153 53,639 42.49 ' -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 (1) Angeles School Water Flood Sanitation Year Rosemead County Districts Districts Control District Total 1985-86 0 1.000442 0.166341 0.102660 0.016081 0.000875 1.286399 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 0.061533 0.005786 0 1.141966 1991-92 0 1.001409 0.078219 0.044300 0.003397 0 1.127325 1992-93 0 1.001713 0.144909 0.014100 0.004212 0 1.164934 1993-94 0 1.001713 0.073026 0.044100 0.004212 0 1.123051 1994-95 0 1.001993 0.080512 0.038900 0.006041 0 1.127446 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, 1995 1994-95 Assessed Valuation I D 0 I 0 0 0 I I $1,458,834,906 (after deducting $271,412,231 redevelopment incremental valuation) Direct and Overlapping Bond Debt: % Applicable Los Angeles County 0.319 % Los Angeles County Building Authorities 0.319 Los Angeles County Pension Obligations 0.319 Los Angeles County Superintendent of Schools Certificates of Participation Los Angeles County Flood Control District Los Angeles County Flood Control District Certificates of Participation Los Angeles County Sanitation District #2 Authority Los Angeles County Sanitation District #15 Authority Metropolitan Water District Los Angeles Community College District Certificates of Participation Pasadena Area Community College Certificates of Participation Montebello Unified School District Certificates of Participation El Monte Union High School District Certificates of Participation El Monte School District and Certificates of Participation San Gabriel Valley Municipal Water District and Mosquito Abatement District Certificates of Debt 6/30/94 $225,198 6,646,694 8,124,532 42,521 230,736 743,144 415 2,278,243 1,134,698 189,790 268,019 434,465 747,609 95 56,925 $21,123,084 (1) 429,964 $20,693 120 0.319 0.330 0.330 0.001 7.195 0.181 0.279 3.086 1.919 13.909 0.005 Participation .004 & 3.255 City of Rosemead 100.000 Total Gross Direct and Overlapping Bonded Debt: Less: Los Angeles County Certificates of Participation (100% ' self-supporting from leasehold revenues on properties in Marina Del Rey) Total Net Direct and Overlapping Bonded Debt: (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 Total Gross Debt 1 Total Net Debt State School Building Aid Repayable as of 6/30/95: Source: California Municipal Statistics, Inc. 0.00 % 1.45 % 1.42 % $ 285,641 1 -89- CITY OF ROSEMEAD, CALIFORNIA DEMOGRAPHIC STATISTICS Last Ten Fiscal Years Fiscal Year 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 Source: Income Unemploy- Population Households Per Capita ment Rate (1) (2) (3) (3) 46,627 13,510 16,058 6.7 % 46,893 13,529 16,988 5.9 47,425 13,687 17,863 5.4 47,707 13,841 18,790 4.9 51,156 13,870 19,906 4.7 52,247 14,153 20,786 5.8 52,812 14,169 20,967 8.0 52,922 14,193 21,434 9.6 53,798 14,190 21661 9.7 53,639 14,195 7.4 (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 U * Information presented is for the County of Los Angeles, which includes the City of Roseme Income Per Capita and Unemployment Rate specifically for the City of Rosemead is not av -90- E s, t 0 0 a 0 a r i, 60 50 40 30 20 10 0 60 s0 40 30 20 10 0 DEMOGRAPHIC STATISTICS Thousands Thousands -91- 1985-86 1986-87 1987-88 1988-89 1989-90 =IncomePerCapita OHouseholds ®Population; 1990-91 1991-92 1992-93 1993-94 slncome Per Capita E~Households Population ! CITY OF ROSEMEAD PRINCIPAL TAXPAYERS June 30, 1995 s Southern California Edison Company California Federal Savings Chicago Title Insurance & Trust Diamond Square Vikon Center Rosemead Sheraton Hotel Lucky Plaza ABC Plaza Friendly Inn San Gabriel Center Assessed Valuation $204,319,473 47,992,375 14,800,000 6,558,405 5,396,412 4,515,000 3,343,771 2,487,205 2,396,200 1,600,000 $293,408,841 Percentage of Total City's , Assessed Valuation ' 10.92 % 2.57 0.79 , 0.35 0.29 0.24 , 0.18 0.13 0.13 ' 0.09 15.69% ' 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, 1995 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 ' Source: City Finance Department t Policy Expiration Number Date Type of Coverage 07/01/96 General Liability 228962-90 12/31/95 Workers Compensation Coverage 05743382 10/10/96 Public Employees Blanket Bond 9922993-03 10/19/96 Boiler and Machinery 2781100 10/10/96 Notary Public Bond Error & Ommissions CP8119571C 07/01/96 Property Insurance -93- 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 1985 86 ' - 92 $10,697,897 $20,577,307 $31,275,204 568 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 1 993-94 22 10,047,264 7,651,470 17,698,734 858 1994-95 37 10,880,831 3,552,722 14,433,553 608 ' -94- ' :1 t i~ I I CITY OF ROSEMEAD, CALIFORNIA MISCELLANEOUS STATISTICS June 30, 1995 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 I I 0 0 0 I U 0 ,O to k t I 0 Public Facilities Community Centers Swimming Pools Libraries Gymnasiums Ball Diamonds (lighted) Tennis Courts (lighted) Education Facilities: Elementary Schools Secondary Schools High Schools 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 Chicago Title 53,639 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 33 3,500 500 400 300 198 ` The City of Rosemead is part of the Los Angeles County Fire Protection District which provides fire fighting, fire prevention, and plan check services forthe 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. -95- F i 1 F5-1 d 1 1 City.. of 1 ROSEMEAD 101 Pasa® n 1 210 ® San Bernardino Los Angeles p 1 ® 0 Riverside 1 L g Beams OS 1 0 5 San Diego\® F a The CITY OF ROSEMEAD is located in Los Angeles County, approximately nine miles east of downtown Los Angeles. Incorporated in 1959, the CITY OF ROSEMEAD now encompasses a total land mass of 5.5 square miles with an approximate population of 53,639 )3 Anaheim -96- Y F 1 F 1 1 1 1 1 1 1 1 1 0