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1990 City Financial ReportI 1 i 1 1 1 1 1 1 1 1 1 L 1 1 1 1 i CITY OF ROSEMEAD, CALIFORNIA FINANCIAL REPORT JUNE 30, 1990 1 I 1 L 1 r C O N T E N T S Page 1 n LJ 1 1 INDEPENDENT AUDITORS' REPORT 1 GENERAL PURPOSE FINANCIAL STATEMENTS Combined balance sheet, all fund types and account groups 2 Combined statement of revenue, expenditures and changes in fund balances, all governmental fund types 3 Combined statement of revenue, expenditures and changes in fund balances - budget and actual - general, special revenue and debt service fund types 4 Statement of revenue, expenses and changes in fund balance, pension trust fund 5 Statement of changes in financial position, pension trust fund 6 Notes to financial statements 7 - 16 SUPPLEMENTARY INFORMATION General Fund Revenue detail - budget and actual 17 Expenditure detail - budget and actual 18 Special Revenue Funds: Combining balance sheet 19 Combining statement of revenue, expenditures and changes in fund balances 20 Graphs: Composition of general fund revenue 21 General fund revenue - budget and actual 22 Governmental funds expenditures 23 General fund revenue 24 McGLADREY & PULLEN Certified Public Accountants and Consultants ' INDEPENDENT AUDITORS' REPORT ' To the Honorable Mayor and Members of the City Council City of Rosemead Rosemead, California We have audited the accompanying general purpose financial statements of the City of Rosemead, California, as of and for the year ended June 30, 1990, 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. Those standards require that we plan and perform the audit to obtain reasonable ' . assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. ' In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Rosemead, California, as of June 30, 1990, and the results of its operations and ' the changes in financial position of its pension trust fund for the year then ended in conformity with generally accepted accounting principles. ' Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund financial statements, 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. JI ' Pasadena, California October 10, 1990 - 1 - LJ 1 1 GENERAL PURPOSE FINANCIAL STATEMENTS 1 CITY OF ROSEMEAD, CALIFORNIA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1990 ASSETS Cash and cash investments Cash and investments with fiscal agent Other investments Annuity contracts Receivables Due from other funds Property and equipment Amount available in debt service fund Amount to be provided for retirement of general long -term debt Total assets LIABILITIES AND MUNICIPAL EQUITY Governmental Fund Types Special Capital General Revenue Projects $ 3,492,546 $ 1,287,220 $ 3,803,232 4,898,178 8,366,402 976,397 302,206 1,072,143 355,868 - - $ 9.722.989 S 1.589.426 513.241.777 LIABILITIES - Accounts payable and accrued liabilities $ 980,489 $ 230,178 $ 448,958 Due to other funds - 186,972 168,896 Deferred revenue 150,000 174,867 - Refundable deposits - - Deferred compensation - _ _ Equipment purchase contracts - - - Tax allocation notes - - - Accrued vacation pay and compensatory time 10.158 - - S 1.140.647 $ 592.017 $ 617.854 MUNICIPAL EQUITY Investment in general fixed assets $ $ - $ - Fund balance: Reserved: Long -term receivable 626,486 Debt service - Unreserved: D i t d f bl' ti es gna a or pension o iga ons - Designated for capital projects - - 12,623,923 Undesignated 7,955.856 997.409 Total municipal equity $ 8.582.342 $ 997.409 $12.623.923 Total liabilities and municipal equity $ 9.722.989 S 1.589.426 $13.241.777 See Notes to Financial Statements. - 2 - 11 Governmental Fiduciary Total Fund Types Fund Twes Account Groups (Memorandum Only) Trust General General Debt and Fixed Long -Term Service Aeencv Assets Debt 1990 1989 $ - $ 68,660 $ $ - $ 8,651,658 $12,320,139 2,973,099 - - 2,973,099 2,842,587 - - - 13,264,580 15,707,537 - 620,335 - 620,335 520,244 106,027 39,095 - 2,495,868 2,620,454 - - - 355,868 498,081 7,588,261 - 7,588,261 5,828,735 - 3,079,126 3,079,126 2,948,614 8.983.303 8.983.303 10.616.084 S 3.079.126 728.090 S 7.588.261 $12.062.429 $48.012.098 $53.902.475 $ $ 4,970 $ $ $ 1,664,595 $ 2,004,827 - 355,868 498,081 - 324,867 194,001 78,209 78,209 315,752 24,576 24,576 74,527 - - 1,732 11,995,000 11,995,000 13,510,000 67,429 77,587 61,206 $ $ 107,755 $ $12,062.429 $14.520.702 $16,660,126 $ $ - $ 7,588,261 $ - $ 7,588,261 $ 5,828,735 - - 626,486 469,111 3,079,126 - - - 3,079,126 2,948,614 - 620,335 - - 620,335 520,244 - - - 12,623,923 17,623,433 - - 8.953.265 9.852.212 $ 3.079.126 $ 620.335 $ 7.588.261 $ $33.491.396 $37.242.349 S 3.079.126 S 728.090 S 7.588.261 .12.062.429 548.012.098 $53.902.475 CITY OF ROSEMEAD, CALIFORNIA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES Year Ended June 30, 1990 REVENUE Property tax increment and special assessments Other taxes Licenses and permits Intergovernmental Charges for services Fines, forfeitures and penalties Use of money and property Loan repayments Other EXPENDITURES Current: General government Public safety Public works Public health Public recreation Community service Intergovernmental Capital outlay Debt service: Principal Interest Governmental Fund TvDes $ 1,398,452 Special Capital General Revenue Projects $ - $ 303,374 $ 3,204,232 4,176,257 - - 533,050 15,638 1,728 2,108,603 1,603,100 $12.623.923 284,851 - 319,756 204,245 - 813,647 83,050 1,223,582 82.085 95.842 $ 8.318.249 $ 2.193.769 $ 4.523.656 $ 1,398,452 $ 11,512 $ 302,138 3,417,893 391,738 - 420,856 1,359,476 6,755,996 856,298 - - 1,762,254 12,940 1,226,626 270,323 107,805 15,638 1,728 - 51 $12.623.923 S 9.191.963 $ 2.061.627 $ 7.058.134 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 IQM01F7\ /\1Is) � Zia lNe See Notes to Financial Statements. S (873.714 $ 132.142 $(2.534.478 $ - $ 75,307 $ (75.307 _(2.465.032 $ (75.307 S 75.307 $(2.465.032 $ (949,021) $ 207,449 $(4,999,510) 9.531.363 789.960 17.623.433 S 8.582.342 S 997.409 $12.623.923 -3�- al 1 1 1 Governmental Fiduciary Totals Fund Types Fund Tye (Memorandum Only) Debt Expendable Service Trust 1990 1989 $ $ $ 3,507,606 $ 4,195,444 4,176,257 3,591,798 533,050 496,966 13,596 3,725,299 4,518,697 - 284,851 338,686 524,001 477,896 268,778 2,389,057 2,788,346 - - 7,459 13.462 191.389 90.009 $ 282.240 $ 13.596 $15.331.510 $16.505.301 $ - $ - $ 1,712,102 $ 1,611,328 - - 3,809,631 3,651,535 - - 8,536,328 7,624,877 - - 856,298 605,353 - - 1,775,194 1,529,628 - 13,596 1,510,545 1,528,378 - - 7,459 - 123,443 840,338 1,515,000 1,516,728 1,422,423 1.101.760 1.101.811 1.218.384 $ 2.616.760 $ 13.596 $20.942.080 $20.039.703 $(2.334.520 $ $(5.610.570 $(3.534.402 $ 2,465,032 $ $ 2,540,339 $ 2,503,899 - (2,540,339 (2,503,899 $ 2,465,032 $ $ $ $ 130,512 $ $(5,610,570) $(3,534,402) 2.948.614 30.893.370 34.427.772 S 3.079.126 S $25,282.800 530.893.370 S CITY OF ROSEMEAD. CALIFORNIA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES Year Ended June 30, 1990 REVENUE Property taxes and special assessments Other taxes Licenses and permits Intergovernmental Charges for services Fines, forfeitures and penalties Use of money and property Other EXPENDITURES Current: General government Public safety Public works Public health Public recreation Community service Capital outlay Debt service: Principal Interest Revenue over (under) expenditures OTHER FINANCING SOURCES (USES) Operating transfers from (to) other funds Revenues and other financing sources over (under) expenditures E xiPJ�i:T:l in�Ltl �)1 i.liii� (el FUND BALANCE, ENDING See Notes to Financial Statements. General Fund Over (Under) Bud eg t Actual Budget $ 1,452,159 $ 1,398,452 $ (53,707) 3,773,000 4,176,257 403,257 587,500 533,050 (54,450) 2,808,770 2,108,603 (700,167) 360,800 284,851 (75,949) 260,000 319,756 59,756 761,600 813,647 52,047 32.860 82.085 49.225 $ 8.584.530 $ 8.318.249 $ (266.281 $ 1,452,159 $ 1,398,452 $ (53,707) 3,455,460 3,417,893 (37,567) 1,613,940 420,856 (1,193,084) 819,880 856,298 36,418 1,718,450 1,762,254 43,804 977,070 1,226,626 249,556 131,700 107,805 (23,895) 1,800 1,728 (72) 51 51 $10.170.459 $ 9.191.963 $ (978.496 S(1.585.929 S (873.714 $ 712.215 S $ (75.307 $ (75.307 $(1.585.929 $ (949,021) S 636.908 9.531.363 LL. i 1 1 1 1 1 1 1 1 1 Special Revenue $ (2,488) Debt Service $ $ 465,000 391,738 Over Over 1,354,270 1,359,476 (Under) (Under) Bud et Actual Budget Budget Actual Bud et 556,790 270,323 (286,467) $ 295,000 $ 303,374 $ 8,374 $ $ $ 1,938,053 1,603,100 (334,953) - 170,000 204,245 34,245 55,600 83,050 27,450 210,000 268,778 58,778 $ 2.616.760 $ 2.616.760 $ - 13.462 13.462 S 2.458.653 S 2.193.769 $ (264.884 $ 210.000 $ 282.240 $ 72.240 $ 14,000 $ 11,512 $ (2,488) $ $ $ 465,000 391,738 (73,262) 1,354,270 1,359,476 5,206 21,990 12,940 (9,050) 556,790 270,323 (286,467) 187,273 15,638 (171,635) - - 1,515,000 1,515,000 1.101.760 1.101.760 $ 2.599.323 $ 2,061.627 $ (537.696 $ 2.616.760 $ 2.616.760 $ - $ (140.670 S 132.142 $ 272.812 $(2.406.760 $(2.334.520 $ 72.240 S S 75.307 $ 75.307 $ 2.616.760 $ 2.465.032 $ (151.728 $ (140.670 $ 207,449 S 348,119 S 210.000 $ 130,512 S (79.488 789.960 2.948.614 $ 997.409 $ 3.079.126 7 1 1 1 1 CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCE PENSION TRUST FUND Year Ended June 30. 1990 Operating revenue: Contributions $ 84,505 Interest and other investment income 49.544 S 134.049 Operating expenses Administrative fees $ 3,720 Pension benefits 30.238 S 33.958 Net income $ 100,091 FUND BALANCE, BEGINNING 520.244 FUND BALANCE, ENDING $ 620.335 See Notes to Financial Statements. 1 t CITY OF ROSEMEAD, CALIFORNIA STATEMENT OF CHANGES IN FINANCIAL POSITION PENSION TRUST FUND Year Ended June 30, 1990 FINANCIAL RESOURCES PROVIDED BY OPERATIONS, net income SUMMARY OF NET CHANGES IN CASH AND INVESTMENTS, increase in annuity contracts See Notes to Financial Statements. S 100.091 6 K m ' CITY OF ROSEMEAD. CALIFORNIA ' NOTES TO FINANCIAL STATEMENTS ' Rosemead Redevelopment Agency The Rosemead Redevelopment Agency (the Agency) finances street, park and utility improvements within the Rosemead Project Area No. 1. Description of Funds and Account Groups ' The accounts of the reporting entity are organized on the basis of funds or groups of accounts, each of which is considered to be a separate accounting entity. The operations of each fund are accounted ' for by providing a separate set of self- balancing accounts which comprise its assets, liabilities, equity, revenue and expenditures. The various funds and account groups are presented as follows: - / tO Note 1. Reporting Entity, Nature of Operations, Description of Funds and City of Rosemead Accounts Groups and Significant Accounting Policies The City of Rosemead (the City) provides a broad range of services to its citizens, including general government, public safety, streets, Reporting Entity services. The criteria of oversight responsibility, special financing relationships and scope of public service was used in determining the ' agencies or entities which comprise the City for financial reporting of these special districts, which usually encompass areas larger than the City itself, are the Fire Protection District, the Library District purposes. Oversight responsibility is determined by the extent of financial interdependency, control over the selection of the authority and management, ability to significantly governing influence departments under contract. Some of the contracts now in effect are operations, and accountability for fiscal matters. Based on these criteria, the Rosemead Redevelopment Agency (the Agency) is included ' in the combined financial statements of the City. ' Rosemead Redevelopment Agency The Rosemead Redevelopment Agency (the Agency) finances street, park and utility improvements within the Rosemead Project Area No. 1. Description of Funds and Account Groups ' The accounts of the reporting entity are organized on the basis of funds or groups of accounts, each of which is considered to be a separate accounting entity. The operations of each fund are accounted ' for by providing a separate set of self- balancing accounts which comprise its assets, liabilities, equity, revenue and expenditures. The various funds and account groups are presented as follows: - / tO Nature of Operations City of Rosemead ' The City of Rosemead (the City) provides a broad range of services to its citizens, including general government, public safety, streets, sanitation and health, cultural and park facilities and social services. ' Many of the functions often provided by municipal government are, in the City of Rosemead, provided by special districts. Examples of some of these special districts, which usually encompass areas larger than the City itself, are the Fire Protection District, the Library District and the County Flood Control District. Certain other governmental functions are paid for by the City but performed by Los Angeles County ' departments under contract. Some of the contracts now in effect are for police, street maintenance and animal control. ' Rosemead Redevelopment Agency The Rosemead Redevelopment Agency (the Agency) finances street, park and utility improvements within the Rosemead Project Area No. 1. Description of Funds and Account Groups ' The accounts of the reporting entity are organized on the basis of funds or groups of accounts, each of which is considered to be a separate accounting entity. The operations of each fund are accounted ' for by providing a separate set of self- balancing accounts which comprise its assets, liabilities, equity, revenue and expenditures. The various funds and account groups are presented as follows: - / tO ' NOTES TO FINANCIAL STATEMENTS Note 1. Reporting Entity, Nature of Operations, Description of Funds and t Accounts Groups and Significant Accounting Policies, Continued Governmental Fund Tyves ' 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 Aid to Cities Fund accounts for funds received from the County of Los Angeles for street construction and maintenance projects. The Local Transportation Fund accounts for state grants used to finance the construction of bikeways and sidewalks. ' The Public Transportation Fund accounts for the City's share of additional sales tax collected in the County of Los Angeles as a result of Proposition A. The funds are used to finance public transportation projects. The Community Development Block Grant Fund accounts for Community ' Development Block Grants received from the United States Department of Housing and Urban Development. The 1976 Community Parklands Grant Fund accounts for funds to be used for park projects. The Street Lighting Fund accounts for the operation of street lights ' within the City. The Narcotic 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 crimes prevention ' and detection programs. The R. Z'Berg /Harris Grant Fund accounts for a state grant for preapproved park projects. Note 1 NOTES TO FINANCIAL STATEMENTS Reporting Entity, Nature of Operations, Description of Funds and Account Groups and Significant Accounting Policies, Continued Capital Projects Fund (Redevelopment Fund) account for financial resources to be used for the acquisition or construction of major capital facilities within the Agency. The Debt Service Fund accounts for the accumulation of resources for the payment of general long -term debt principal, interest and related costs. Fiduciary Fund Types The Pension Trust Fund accounts for the activity of the retirement plan for employees of the City. The Emendable Trust Fund accounts for the repair, replacement or restoration of disaster damaged publicly owned and certain nonpublicly owned facilities. 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. Account Groups The General Fixed Assets Account Group accounts for all property and equipment except for public domain fixed assets (e.g., streets, bridges, sidewalks, curbs, gutters and storm drainage systems). The General Long -Term Debt Account Group accounts for the outstanding principal balances of all long -term debt expected to be financed from governmental fund types. Significant Accountine Policies Basis of Accountine Governmental fund types are accounted for using the modified accrual basis of accounting. Revenue is recognized when it becomes both measurable and available. Taxes are considered to be measurable when collected by an intermediary and are recognized as revenue at that time. Expenditures are generally recognized when the related liability is incurred. An exception to this general rule exists for unmatured principal and interest on general long -term debt which is recognized as an expenditure when due. The pension trust fund is accounted for using the accrual basis of accounting. Revenue is recognized when it becomes measurable and expenses are recognized when the liability is incurred. �� 12 1 Note 1 NOTES TO FINANCIAL STATEMENTS Reporting Entity, Nature of Operations, Description of Funds and Account Groups and Significant Accounting Policies, Continued Cash and investments The City pools cash and investment resources of its various 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. No loss is recognized when market values decline below costs since it is generally the policy of the City to hold such investments until they mature. Investment earnings are allocated based on the source of funds. Receivables All receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible. Property and ecuipment 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 nay and compensatory time City employees accumulate vacation hours which may be paid upon termination, death or retirement. Employees can accumulate up to three weeks of accrued vacation per year depending on the length of employment. Employees can accumulate up to 160 hours of sick leave. Any hours in excess of 160 are considered to be vested and are paid to the employee based on a vesting schedule. In addition, employees can accrue up to 240 hours of compensatory time. Any hours in excess of 240 are paid to the employee. - P Z_ 13 NOTES TO FINANCIAL STATEMENTS Note 1. Reporting Entity, Nature of Operations, Description of Funds and ' Account Groups and Significant Accounting Policies, Continued Memorandum totals Total columns on the combined financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present ' financial position or results of operations in conformity with generally accepted accounting principles. Interfund transactions have not been eliminated in arriving at these amounts. Note 2. Budget Matters 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. In all budgeted funds, unexpended budgeted amounts lapse at the end of the budget year. Spending control for most funds is established by the amount of expenditures budgeted for the fund, but management control is exercised at budgetary line item levels. ' Note 3. Cash and Investments ' The components of cash and cash investments at June 30, 1990 are as follows: Cash in bank $ 678,403 ' Time certificates of deposit 7.973.255 S 8.651.658 ' 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. ' At year -end, the carrying amount of the City and the Agency's deposits was $8,651,658 and the bank balance was $8,653,417. ' All deposits at year -end were entirely covered by federal depository insurance or by collateral held by the City's agent in the City's name. State statutes authorize the City and the Agency to invest any available funds in securities issued or guaranteed by the United States Treasury or agencies of the United States, bank certificates of deposit, bankers acceptances, negotiable certificates of deposit, the State Treasurer's Investment Pool, repurchase agreements, commercial paper and bonds, registered warrants or treasury notes of the State of California and its local agencies. Note 3. Cash and Investments, Continued u I 1 1 Other investments are categorized in the following schedule to give an indication of the level of risk assumed by the entity at year -end. Investment Tyne U.S. govern- ment and government agency securities State and municipal bonds Corporate bonds NOTES TO FINANCIAL STATEMENTS Category Carrying Market 1 2 3 Amount Value $1,402,514 $ $ $ 1,402,514 $ 1,386,026 243,284 243,284 245,600 6.528.777 6.528.777 6.389.389 $1.645.798 $6.528.777 $ 8,174,575 $ 8,021,015 450,005 411,392 4.640.000 4.640.000 investments $13.264.580 513.072.407 The three preceding risk description categories are defined as follows: Cateeory 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 the broker's or dealer's trust department or agent in the City's name. 3 Uninsured and unregistered investments for which the securities are held by the broker or dealer, or by its trust department or agent but not in the City's name. Investment ' in mutual fund ' Investment in State Treasurer's Investment ' Pool Total other $1.645.798 $6.528.777 $ 8,174,575 $ 8,021,015 450,005 411,392 4.640.000 4.640.000 investments $13.264.580 513.072.407 The three preceding risk description categories are defined as follows: Cateeory 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 the broker's or dealer's trust department or agent in the City's name. 3 Uninsured and unregistered investments for which the securities are held by the broker or dealer, or by its trust department or agent but not in the City's name. n 1 I i n I u) F z w H .a 6 H Z U Z W O F y w F O Z 1 C-o M M r-1 N �O o w m n It w w ro G u G w w ao E M w • E ro u ,� E w P. DD E W w (0 ro o M o w m m w 6 o w O 00 N O 07 0. W W P w W ca U cc 0 rn J M •� d W p ro E O 0 ,C W F G u} W w ro M B w O > 3 G ro F vl b 7 w^ W M O a0 O u U N H M H -D . 'a y w M M N u} u1 w O ; bi ro 44 ro l� S W P M U M o W T T u v O ca w 3 y w, v W N •Ma e V V m E y ro ca L M w N O • N O w o 6 0 w u h G • P N M E U CD O ro W A w> .0 O V O G ro u ca . 0 T U N q •� .-� y T E ..a m m > w G G M W v1 w P. M .,.� G ro ro O O CL > O o t? C !�-� T •� U 0. O rl y W M ro 11 U N > w cu ro 41 l-1 e0 w w U O TG E •.I m 00 �7 aI " G w u M :O ""� 3 �• u N ao M a pp 7 A ro r-I G E ca .--1 iJ w O rl N b 'o F aD cc m P. rn o .. co u u C C 0 W o ca W . E N G >' '+ x o U M .� Y >> w w O m ,� CO O w U J-+ .L O .G a + u F ro 1� a ro to A w n DO G G G 44 a y L w T ca rn M O . • i n N O O G 7 +' w H •-I U 4 � � N 7 M O N M a E y 0 y N U M M G O N N '� o ro 4J M G w> u .--i •� w ro w u vain o ..0i 00 . a o> G o 4 T G u G w O N w 4J M O r m O� 0 4) z U w U w N M �O o0 n P S O 'O G O CC o O .•+ rn oo o, .O W M w G> G CD co -.1 4 M y ro m w W T •ro •.+ M M w G o N .L G d E v o C (D N �i rn w '-� 4 a� •a ti „ T •-+ W Y4 G n O W ro Ca w u u y co E T w ,� w o N >'M 3 u W O w A P. 3 u M E u Wr G V ro N M ,� w Cd o L u 3 U U N >+ .d y ++ m m co u O v G W m 0 T. w b � M T G w w u G u ,� w E m o0 E 7 u u .� ca G 7 ,-+ w m T T w G w o M ro u p, A A T E w E" G E G M ++ w M G .a u O .G w ro 0 iJ 0 10 W O M ro O W U W W W w M m M Gy 0 0 w > > W W w w W .a P. W w G 7 cO ro A +� G Ci 3 . 4 u u 'd M w M w w U y ow G W W G W M E W O O w W eD w ro > U 7 M M M 7 0 00 ro � N N U 7 7 a a W 6 A q O v a w p 0 z 1 C-o M M Note 5 1 ' Note 6 Note 7 NOTES TO FINANCIAL_ STATEMENTS Interfund Receivable and Payables The June 30, 1990 interfund receivable and payables are as follows: Funds General Fund Special Revenue Funds: Traffic Safety Community Development Block Grant R. Z'Berg /Harris Grant Capital Projects Fund Property and Equipment Interfund Receivable Payables $ 355.868 S $ - $ 11,882 - 162,150 - 12,940 $ 355,868 $ 186,972 168.896 S 355,868 S 355.868 Changes in the property and equipment during the year ended June 30, 1990 were as follows: Balance Balance June 30, June 30, 1989 Acquisitions 1990 Land Buildings and improvements Vehicles Furniture and office equipment Special equipment and machinery Other improvements $ 1,060,734 $ 1,655,000 $ 2,715,734 2,955,316 - 2,955,316 252,149 1,723 253,872 402,155 70,978 473,133 436,238 10,869 447,107 722.143 20.956 743.099 S 5.828,735 S 1.759.526 S 7.588.261 Pension Plan and Deferred Compensation Agreements The City has a defined contribution pension plan. The plan covers substantially all employees and is funded by a group annuity insurance contract. Employees eligible for the plan are vested 1008 upon completion of five years of full -time employment. Employees are not vested before five years. The contributions to the plan are at the discretion of the City Council. This plan does not allow for employee contributions. The total payroll for employees covered by this plan for the calendar year ended December 31, 1989 was $882,278. The total payroll for all employees for the calendar year ended December 31, 1989 was $1,507,396. The total pension contribution for the fiscal year ended June 30, 1990 was $84,505. �' 17 ' NOTES TO FINANCIAL STATEMENTS Note 7. Pension Plan and Deferred Compensation Agreements, Continued ' The City has a deferred compensation plan which is organized under Internal Revenue Code 457. The Plan allows eligible employees to tax defer a portion of their gross income not to exceed the lesser of $7,500 or 25% of the participant's includible compensation. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. ' All amounts of compensation deferred under the Plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the Plan), subject only to the claims of the City's general ' creditors. Participants' rights under the Plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. ' Note 8. Long -Term Debt ' The following is a summary of the general long -term debt transactions for the year ended June 30, 1990. Tax Accrued Equipment Allocation Vacation Purchase Notes, and Sick Contracts Series 1987 Leave Total ' Balance, June 30, 1989 $ 1,732 $13,510,000 $ 52,966 $13,564,698 Additions, net - 14,463 14,463 Retirements (1.732 (1.515.000 (1.516.732 Balance, June 30, 1990 S $11.995.000 $ 67.429 $12.062.429 Prior -Year Defeasance of Debt ' In prior years, Rosemead Redevelopment Agency defeased its tax allocation bonds Series 1983 by placing the proceeds of new tax allocation notes Series 1987 in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for these defeased bonds are not included in. these financial statements. At June 30, 1990, $1,275,000 of these defeased bonds remain outstanding. ' Compensated Absences ' That portion of the liability for the vested compensated absences totalling $67,429 which is not expected to be paid from available resources is reported in the general long -term debt account group. ' The annual requirements, principal and interest, to amortize the outstanding debt as of June 30, 1990 are as follows: 15/ g ' Under state law, Rosemead Redevelopment Agency is required to set aside a portion of its property tax increment revenue for low and NOTES TO FINANCIAL STATEMENTS year ended June 30, 1990, it was exempt from funding any of the set aside. As of June 30, 1990, the accumulated set aside amount not yet ' funded was approximately $2,974,000. The law requires the Agency to Note 8. Long -Term Debt, Continued devise a plan to fund the accumulating amount and to begin funding it by 1996. ' Tax several local governments, including the City, asking for monetary ' Years Allocation landfill now contaminated by hazardous waste. Management and legal counsel for the City are unable to reasonably estimate the amount of Ending Notes, liability which may be incurred if an adverse decision is rendered. June 30. Series 1987 Interest Total 1991 $ 1,630,000 $ 972,350 $ 2,602,350 1992 1,760,000 828,617 2,588,617 1993 1,900,000 669,813 2,569,813 ' 1994 2,055,000 496,781 2,551,781 1995 2,230,000 309,312 2,539,312 ' Thereafter 2.420.000 105.875 2.525.875 $11.995.000 S 3.382.748 $15.377.748 1 Note 9. Budget Overexpenditures Expenditures exceeded appropriations for the year ended June 30, 1990 in the following special revenue funds: Amount of Overexpendi- ' Appropriation Expenditures tunes Local Transportation Fund $ 36,280 $ 50,400 $ 14,120 ' State Gas Tax Fund $ 713,590 $ 721,376 $ 7,786 The budget overexpenditures were due to the margin of error in estimating appropriations based on the best known facts at the time ' the budgets were adopted. The effect on the financial statements caused by these overexpenditures was not considered material as the actual revenue of these funds was also more than the estimated revenue ' used in preparing the budgets. ' Note 10. Commitments and Contingent Liabilities ' However, the City intends to vigorously defend itself in regard to this lawsuit. - 1� L Under state law, Rosemead Redevelopment Agency is required to set aside a portion of its property tax increment revenue for low and moderate income housing. The Agency has made findings that, for the year ended June 30, 1990, it was exempt from funding any of the set aside. As of June 30, 1990, the accumulated set aside amount not yet ' funded was approximately $2,974,000. The law requires the Agency to devise a plan to fund the accumulating amount and to begin funding it by 1996. ' During the year ended June 30, 1990, a lawsuit was filed against several local governments, including the City, asking for monetary damages in order to assist the plaintiffs in cleanup of a former ' landfill now contaminated by hazardous waste. Management and legal counsel for the City are unable to reasonably estimate the amount of liability which may be incurred if an adverse decision is rendered. ' However, the City intends to vigorously defend itself in regard to this lawsuit. - 1� L I 1 1 I I I I r SUPPLEMENTARY INFORMATION 1 ' CITY OF ROSEMEAD, CALIFORNIA REVENUE DETAIL - BUDGET AND ACTUAL GENERAL FUND Year Ended June 30, 1990 1 1990 1989 Over (Under) TAXES Budget Actual Bud eg t Actual Maintenance district $ 3,000 $ 698 $ (2,302) $ 2,200 Real estate transfer tax 100,000 142,520 42,520 147,115 Trailer coach fees - 1,334 1,334 2,926 ' Sales and use tax 2,840,000 3,205,342 365,342 2,665,676 Franchise fees 470,000 494,223 24,223 461,620 ' Transient occupancy tax 360.000 332.140 (27.860 312.261 $ 3.773.000 $ 4.176.257 $ 3.591.798 $ 403.257 LICENSES AND PERMITS Business license fees $ 31,000 $ 33,073 $ 2,073 $ 33,849 Building permit fees 538,000 488,290 (49,710) 444,960 Occupancy permit fees 14,000 9,138 (4,862) 13,851 Sewer connection 4.500 2.549 (1.951 4.306 $ 587.500 $ 533.050 $ (54.450 $ 496.966 INTERGOVERNMENTAL Transfer of Agency receivable $ - $ 169,720 $ 169,720 $ - Supplemental subvention 750 - (750) 1,186 Financial aid to local agencies 200,000 150,139 (49,861) 179,386 Motor vehicle in lieu tax 1,668,000 1,689,632 21,632 1,641,702 Other vehicle taxes 960 773 (187) 758 ' Cigarette tax 99,000 82,839 (16,161) 93,388 F.A.U. Grant 830,760 - (830,760) - ' FETSIM Grant 9.300 15.500 6.200 - $ 2.808.770 $ 2.108.603 $ (700.167 $ 1.916.420 CHARGES FOR SERVICES Filing and certification fees $ 10,000 $ 6,472 $ (3,528) $ 12,525 Other current charges 104,600 89,885 (14,715) 128,148 Environmental impact reports 1,000 300 (700) 600 Recreation fees 245,200 170,061 (75,139) 190,256 Assessments - 18.133 18,133 7.157 ' $ 360.800 $ 284.851 $ (75.949 S 338.686 FINES, FORFEITURES AND ' PENALTIES, Court fines and forfeitures $ 260.000 $ 319.756 $ 59.756 $ 295.209 USE OF MONEY AND PROPERTY Interest earned on investments $ 760,000 $ 808,445 $ 48,445 $ 784,058 Rental income 1.600 5.202 3.602 4.523 $ 761.600 S 813.647 S 52.047 $ 788.581 ' OTHER Repairs to and sale of City property $ 1,000 $ 28,035 $ 27,035 $ 70 ' Miscellaneous 31.860 54.050 22.190 18.098 $ 32.860 $ 82.085 $ 49.225 $ 18.168 ' Total revenue $ 8.584.530 S 8.318.249 $ (266.281 S 7.445.828 - 17 I CITY OF ROSEMEAD, CALIFORNIA ' EXPENDITURE DETAIL - BUDGET AND ACTUAL GENERAL FUND Year Ended June 30, 1990 ' 1990 1989 Over (Under) ' GENERAL GOVERNMENT Budget Actual Budget Actual Travel and meeting $ 13,000 $ 26,011 $ 13,011 $ 13,706 City council 31,180 31,743 563 29,249 City administration 553,250 372,930 (180,320) 508,747 ' City clerk 84,480 80,624 (3,856) 52,334 Finance 192,680 160,744 (31,936) 150,904 City treasurer 5,630 7,537 1,907 5,262 ' City attorney 64,000 101,000 37,000 62,659 General government buildings 174,900 290,282 115,382 345,786 ' Community promotion 311,579 297,130 (14,449) 314,938 City garage 21.460 30.451 8.991 29.813 $ 1.452.159 $ 1.398.452 $ (53.707 $ 1.513.398 PUBLIC SAFETY ' Law enforcement $ 3,245,840 $ 3,263,996 $ 18,156 $ 3,027,797 Animal regulation 40,000 25,266 (14,734) 44,752 Parking control 93,000 90,843 (2,157) 97,632 ' Crossing guard 42,620 37,788 (4,832) 35,178 Street lighting 34.000 - (34.000 $ 3.455.460 $ 3.417.893 $ (37.567 $ 3.205.359 PUBLIC WORKS Engineering and administration $ 51,680 $ 38,039 $ (13,641) $ 116,214 Street construction Traffic signs and 1,295,760 93,992 (1,201,768) 127,686 striping maintenance 266.500 288.825 22.325 72.758 $ 1.613.940 $ 420.856 S(1.193.084 $ 316.658 PUBLIC HEALTH, services $ 819.880 $ 856.298 $ 36.418 $ 605.353 PUBLIC RECREATION Administration $ 163,120 $ 188,127 $ 25,007 $ 141,178 Parks 774,870 834,026 59,156 657,353 ' Recreation Aquatics 548,420 232.040 493,425 246.676 (54,995) 14.636 491,620 192.457 S 1.718.450 $ 1.762.254 $ 43.804 $ 1.482.608 COMMUNITY SERVICE ' Planning $ 285,100 $ 232,076 $ (53,024) $ 230,043 Building regulation 405,000 626,562 221,562 458,170 Engineering 225,100 317,012 91,912 296,778 Redevelopment 15,870 9,039 (6,831) 14,154 ' Community improvements 46,000 41,937 (4,063) 18,293 Street projects - 24 $ 977.070 $ 1.226.626 S 249.556 S 1.017..462 ' CAPITAL OUTLAY $ 131.700 $ 107.805 $ (23.895 $ 133.366 DEBT SERVICE $ 1.800 $ 1.779 $ (21 $ 2.664 ' Total expenditures $10.170.459 S 9.191.963 S (978.496 S 8.276.868 - 18 - CITY OF ROSEMEAD, CALIFORNIA COMBINING BALANCE SHEET SPECIAL REVENUE FUNDS June 30, 1990 Local Public Traffic State Aid to Trans- Trans - Safety Gas Cities portation portation ASSETS Fund Tax Fund Fund Fund Fund CASH AND CASH INVESTMENTS $ - $ 123,746 $ 81,133 $ 12,768 $ 711,037 RECEIVABLES 11.882 2.029 _ 13,440 _ 45.076 Total assets $ 11.882 S 125.775 $ 81.133 S 26.208 S 756.113 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ - $ 125,775 $ $ $ 34,077 Due to other funds 11,882 - - Deferred revenue Total liabilities $ 11,882 $ 125,775 $ $ $ 34,077 FUND BALANCES 81.133 26.208 722.036 Total liabilities and fund balances S 11.882 S 125.775 $ 81.133 S 26.208 S 756.113 - 19 - 1 1 1 $ 49,697 $ $ 20,629 $ $ - $ 230,178 $ 300,984 162,150 12,940 186,972 353,602 174.867 - 174.867 194.001 $ 386,714 $ - $ 20,629 $ $ 12,940 $ 592,017 $ 848,587 9.373 44.532 58.896 54.995 236 997.409 789.960 S 396.087 S 44.532 S 79.525 $ 54.995 $ 13.176 S1.589.426 $1.638.547 1976 Community Community Development Parklands Street Narcotics R. Z'Berg Block Grant Grant Lighting Seizure Harris Totals Fund Fund Fund Fund Fund 1990 1989 $ 179,484 $ 44,532 $ 79,525 $ 54,995 $ - $1,287,220 $1,133,401 216,603 13.176 302.206 505.146 S 396.087 $ 44.532 $ 79.525 S 54.995 $ 13.176 S1.589.426 $1.638.547 $ 49,697 $ $ 20,629 $ $ - $ 230,178 $ 300,984 162,150 12,940 186,972 353,602 174.867 - 174.867 194.001 $ 386,714 $ - $ 20,629 $ $ 12,940 $ 592,017 $ 848,587 9.373 44.532 58.896 54.995 236 997.409 789.960 S 396.087 S 44.532 S 79.525 $ 54.995 $ 13.176 S1.589.426 $1.638.547 CITY OF ROSEMEAD, CALIFORNIA COMBINING STATEMENT OF REVENUE, EXPENDITURES ' AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUNDS Year Ended June 30, 1990 ' 1 REVENUE 'Special assessments Intergovernmental Fines, forfeitures and penalties Use of money and property EXPENDITURES Current: General government Public safety Public works Public recreation Community services Capital outlay Revenue over (under) expenditures Other financing sources, operating transfer from other funds Revenue and other financing sources over (under) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Local Public Traffic State Aid to Trans- Trans - Safety Gas Cities portation portation Fund Tax Fund Fund Fund Fund ' - 641,601 13,440 542,286 136,972 - - - - 4.468 6.864 3.497 61.093 $ 136.972 S 646.069 $ 6.864 $ 16.937 S 603.379 1 136,972 - - - - 721,376 50,400 476,938 $ 136.972 $ 721.376 S $ 50.400 $ 476.938 $ - $ (75,307) $ 6,864 $ (33,463) $ 126,441 75.307 ' $ $ - $ 6,864 $ (33,463) $ 126,441 ' 74.269 59.671 595.595 S S S 81.133 $ 26.208 S 722.036 ' 20 ' 1 1 1 ' 1976 Community Community Development Parklands Street Narcotics R. Z'Berg Block Grant Lighting Seizure Harris Total Grant Fund Fund Fund Fund Fund 1990 1989 ' $ - $ $ 303,374 $ $ - $ 303,374 $ 273,777 392,597 13,176 1,603,100 2,504,279 - 67,273 - 204,245 182,687 3.768 3.360 83.050 76.581 S 392.597 $ 3.768 $ 303.374 S 70.633 $ 13.176 $2.193.769 $3.037.324 1 ' $ 11,512 $ $ - $ _ $ $ 11,512 $ 13,068 254,766 391,738 446,176 110,762 1,359,476 2,190,830 - 12,940 12,940 47,020 ' 270,323 = - 270,323 412,918 15.638 15.638 21.579 $ 392.597 $ $ 254.766 $ 15.638 $ 12.940 S2.061.627 $3.131.591 $ - $ 3,768 $ 48,608 $ 54,995 $ 236 $ 132,142 $ (94,267) ' 75.307 128.790 ' $ $ 3,768 $ 48,608 $ 54,995 $ 236 $ 207,449 $ 34,523 9.373 40.764 10.288 789.960 755.437 ' S 9.373 S 44.532 S 58.896 $ 54.995 S 236 S 997.409 S 789.960 1 1 1 1 t Intergovernm 25% CITY OF ROSEMEAD, CALIFORNIA COMPOSITION OF GENERAL FUND REVENUE Year Ended June 30, 1990 Other Taxes 51% - 21 - Other 1% Charges for Services 3% of Money/ 'roperty 10% Fines/ and 7 arm 1!ta Forfeit/ 6% Penalties 4% 1 1 1 1 1 1 1 CITY OF ROSEMEAD, CALIFORNIA GENERAL FUND REVENUE - BUDGET AND ACTUAL Year Ended June 30. 1990 1= Actual ® Budget - 22 - 1 1 1 1 1 1 1 1 1 $4000 $3500 $3000 $2500 $2000 $1500 $1000 $500 $0 CITY OF ROSEMEAD, CALIFORNIA GOVERNMENTAL FUNDS EXPENDITURE Years Ended June 30, 1990, 1989 and 1988 Thousands F= 1990 ® 1989 ® 1988 - 23 - General Public Public Public Public Community Capital Debt Government Safety Works Health Recreation Service Outlay Service 1 1 1 CITY OF ROSEMEAD, CALIFORNIA GENERAL FUND REVENUE Years Ended June 30. 1990. 1989 and 1988 0 "1 I ffff.r- --] - 24 -