Loading...
2010 CAFRCITY OF ROSEMEAD Rosemead, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2010 Prepared by the Finance Department Steve Brisco Director of Finance (This page intentionally left blank) is CITY OF ROSEMEAD Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2010 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal i Directory of Officials vi Certificate of Achievement for Excellence in Financial Reporting (GFOA) vii Organizational Chart viii FINANCIAL SECTION Independent Auditors' Report 1 Management's Discussion and Analysis (Required Supplementary Information) 3 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets 14 Statement of Activities 15 Fund Financial Statements: Governmental Funds: Balance Sheet 16 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 19 Statement of Revenues, Expenditures and Changes in Fund Balances 20 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 22 Proprietary Funds: Statement of Net Assets 23 Statement of Revenues, Expenses, and Changes in Fund Net Assets 24 Statement of Cash Flows 25 Statement of Fiduciary Assets and Liabilities - Agency Fund 26 Notes to the Basic Financial Statements 27 REQUIRED SUPPLEMENTARY INFORMATION: Notes to Required Supplementary Information 58 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund 59 CITY OF ROSEMEAD Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2010 TABLE OF CONTENTS Continued FINANCIAL SECTION, (Continued) REQUIRED SUPPLEMENTARY INFORMATION, (Continued) Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Low- Moderate Income Housing Set -Aside OTHER SUPPLEMENTARY INFORMATION Combining Balance Sheet — Non -Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Non -Major Governmental Funds Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Traffic Safety Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — Community Development Block Grant Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — HOME Program Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Proposition A Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — Proposition C Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Federal Highway Grant Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - State Gas Tax Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Air Quality Management District Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Local Transportation Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Street Lighting Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Narcotics Forfeiture and Seizure Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — _Measure R Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Rosemead Housing Development Corporation Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -- City Capital Projects Page 60 64 66 68 69 70 71 72 73 74 75 76 77 78 79 80 81 CITY OF ROSEMEAD Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2010 TABLE OF CONTENTS, (Continued) FINANCIAL SECTION, (Continued) Page OTHER SUPPLEMENTARY INFORMATION, (Continued) Major Fund Budget and Actual Schedules: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Redevelopment Agency Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual -- Redevelopment Agency Capital Projects Fund Internal Service Funds: Combining Statement of Net Assets Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Combining Statement of Cash Flows Statement of Changes in Assets and Liabilities - Agency Fund STATISTICAL SECTION Net Assets by Component Changes in Net Assets Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Assessed Value and Estimated Actual Value of Taxable Property Direct and Overlapping Property Tax Rates Principal Property Tax Payers Property Tax Levies and Collections Ratios of Outstanding Debt by Type Ratio of General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Pledged Revenue Coverage Demographic and Economic Statistics Principal Employers Full -time and Part -time City Employees Operating Indicators by Function Capital Asset Statistics by Function :' 83 86 87 88 89 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 (This page intentionally left blank) MAYOR: GARY TAYLOR MAYOR PRO TEW STEVEN LY i COUNCIL MEMBERS: SANORAARMENTA '. MARGARETC6ARK POLLY LOW .. December 20, 2010 8888 E. VALLEY BOULEVARD o P.O. BOX 999 ROSEMEAD, CALIFORNIA 91770 TELEPHONE (628) 569 -2100 FAX (626) 307 -9218 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Rosemead: Sound financial practice dictates that all general- purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of Rosemead for the fiscal year ended June 30, 2010. This report consists of management's representations concerning the finances of the City of Rosemead. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Rosemead has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Rosemead's financial statements in conformity with GAAR Because the cost of internal controls should not outweigh their benefits, the City of Rosemead's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Rosemead's financial statements have been audited by Mayer Hoffman McCann P -C., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Rosemead for the fiscal year ended June 30, 2010, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent 0 �i auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Rosemead's financial statements for the fiscal year ended June 30, 2010, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City of Rosemead was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of Rosemead's separately issued Single Audit Report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis .(MD &A). This letter of transmittal is designed to complement MD&.A and should be read in conjunction with it. The City of Rosemead's MD &A can be found immediately following the report of the independent auditors. Profile of the Government The City of Rosemead, incorporated in 1959, is located in the southwestern part of the state, which is considered to be the top growth area in the state, and one of the top growth areas in the country. The City of Rosemead currently occupies a land area of 5.5 square miles and serves a population of more than 57,000. Property tax is levied and collected by the County of Los Angeles. The City and Community Development Commission's portion is remitted to the City by the County. The City of Rosemead has operated under the council- manager form of government since 1959. Policy - making and legislative authority are vested in a governing council consisting of the mayor and four other members. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the government's manager, attorney and clerk. The government's manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day -to -day operations of the government, and for appointing the heads of the various departments. The council is elected on a non - partisan basis. Council members serve four-year staggered terms, with three council members elected every two years and two elected the opposite two years. The mayor is selected from among the five council members, by the council members, and serves for a one year term. Many of the functions often provided by municipal government are provided by special districts. Examples of some of Rosemead's 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 a variety of other public and private agencies under contract. Some of the contracts in effect ' during the fiscal year were for police and street maintenance. The City also has three blended component units; 1) the Rosemead Financing Authority (the Authority), 2} the Rosemead Community Development Commission the RCDC) and 3) the Rosemead Housing Development services, ides a full range of s , e City of Rosemead also provides „ Corporation (RHDC). Th y p g recreational activities and cultural events. Additional information on all three of these legally separate entities can be found in Note 1(a) in the notes to the financial statements. The annual budget serves as the foundation for the City of Rosemead and its component unit's financial planning and control. All business units and component units of the City of Rosemead are required to submit requests for appropriation to the City Manager in mid March of each year. The City Manager uses these requests as the starting point for developing a proposed budget, The City Manager then presents this proposed budget to the City Council for review prior to June 30. The City Council is required to hold public hearings on the proposed budget and to adopt a final budget no Iater than June 30, the close of the City of Rosemead's fiscal year. The appropriated budget is prepared by fund and department (e.g., public safety). Department heads, with City Manager approval, may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the approval of the City Council. Budget - to- actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on page - as part of the basic financial statements for the governmental fixnds. For governmental funds, other than the general fund, with appropriated annual budgets, this comparison is presented in the governmental fund subsection of this report, which starts on page Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Rosemead operates. Local economy, Considering the current recessionary economy, the City of Rosemead currently enjoys a reasonably favorable economic environment and local indicators point to moderate declines due to the current economy. The region has a varied retail and industrial base including r..: 4 two national general merchandise stores that historically perform well in a recessionary economy. They have continued to perform fairly well and helped the City's sales tax decline only 1.3% _ compared with the same period a year earlier. Modest sales tax losses have helped keep Rosemead's unemployment rate down to 11.0% whereas the larger Los Angeles, Long Beach, Glendale area rate is 12.5 %. Major employers are listed in the statistical section of the accompanying financial report. A new grocery store and major gym opened during FY 2009- 10 and should help relieve some of the City's unemployment. Long -term Financial Planning. On December 8, 2009 the City Council approved a strategic long -term plan that identifies three Key Organizational Goals: 1) Beautify Community Infrastructure and finprove Public Facilities. 2) Enhance Public Safety and Quality of Life. 3) Ensure the City's Financial Viability with Balanced Budgets and Prudent Reserves. To meet these goals the City Council has approved capital improvement projects for street resurfacing and slurry sealing, curb and ramp improvements, tree planting as well as other park and facility renovations and improvements Additionally revenue from the 2009 American Recovery and Reinvestment Act (ARRA) grant has been received by the City. The grant awards were used to provide funding for infrastructure improvements during FY 2009 -10. Cash management policies and Practices. Cash, temporarily idle during the year, was invested in a money market account and the State Treasurer's Local Agency Investment Fund (LAIF). Due to the unsettled state of California finances, $2.25 million remained invested in a money market account which has a lower yield than LAIF, but will avoid some potential LAIF liquidity risk in the event that the State should withdraw significant amounts of cash from LAIF. The State also invests in LAIF and although they are legally prohibited from borrowing local agency cash, a large run on the State's LAIF cash could potentially limit the amount of liquid cash available for local withdrawals. With LAIF yields remaining low and other investments increasing in yield without unnecessary safety risks, City staff is began to cautiously diversify investments. In accordance with State law, all City investments strictly adhere to the priorities, in order of importance, of: 1) safety, 2) liquidity and 3) yield. Risk Management. The City is a member of the California Joint Powers Insurance Authority (the Authority). The Authority is composed of 107 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self- insured losses, to purchase excess insurance and reinsurance, and to arrange for group - purchased insurance for property and other coverage. Additional information can be found in Note 9 in the notes to the Basic Financial Statements. Pension and other postemployment benefits, The City of Rosemead is contracted with the iv i California Public Employees Retirement System (CalPERS) for retirement benefits for full time employees. Supplemental retirement benefits are offered to qualified full -time employees, retirees and part -time employees through Public Agency Retirement Services (PARS). The City also provides health insurance benefits for certain qualified retirees. In accordance with GASB i 45, additional information on the City of Rosemead's pension arrangements and postemployment benefits can be found in Note 10 in the notes to the Basic financial Statements. Awards and Acknowledgements 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 (CAFR) for the fiscal year ended June 30, 2009. In order to be awarded a Certificate of Achievement, the government had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the entire team of the finance and administration departments. We would like to express our appreciation to all members of the departments who assisted and contributed to the preparation of this report. Credit also must be given to the mayor and the governing council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of Rosemead's finances. Respectfully submitted, Steven IJ_ Brisco Director of Finance V City of Rosemead Directory of Officials June 30, 2010 CITY COUNCIL Gary A. Taylor, Mayor Steven Ly, Mayor Pro Tern Margaret F. Clark, Council Member Sandra Armenta, Council Member Polly Low, Council Member CITY MANAGEMENT Jeff Allred, City Manager Matthew E. Hawkesworth, Assistant City Manager Stan Wong, Community Development Director Steve Brisco, Director of Finance David Montgomery - Scott, Director of Parks and Recreation Chris Marcarello, Public Works Director Tim Murakami, Lieutenant (Contracted) Gloria Molleda, City Clerk Joseph M. Montes, City Attorney (Contracted) WI Certificate of A chievement for Excellence in financial Reporting Presented to City of Rosemead Cali fornia For its Comprehensive Annual Financial Report for the Fiscal Year Ended 31me 30, 2009 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 (CAFks) achieve the highest standards in government accounting and financial reporting. �,a+a Rfrye� ti�o�srnis� a �, rnaeananae � .a President Executive Director Vii viii FINANCIAL SECTION (This page intentionally left blank) MHM Mayer Hoffma.g McCann �C. An Independent CPA Firm ` 2301 Dupont Drive, Suite 200 Irvine, California 92612 f 949- 474 -2020 ph 949 -263 -5520 fx www.mhm-pe.com The Honorable Mayor and City Council City of Rosemead Rosemead, California INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Rosemead, California, as of and for the year ended ,tune 30, 2010, which collectively comprise the City's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the management of the City of Rosemead. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Rosemead, California, as of ,tune 30, 2010, and the respective changes in financial position of the City of Rosemead, California for the year then ended in conformity with accounting principles generally accepted in the United States of America. The information identified in the accompanying table of contents as management's discussion and analysis and required supplementary information are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the. information and express no opinion on it. The Honorable Mayor and City Council City of Rosemead Rosemead, California Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Rosemead's basic financial statements. The introductory section, combining and individual fund financial statements and schedules and statistical tables listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. In accordance with Government Auditing Standards, we have also issued a report dated December 20, 2010 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. A 20*4 *k im Api xc ean4 p e. Irvine, California December 20, 2010 KA { Management's Discussion and Analysis As management of the City of Rosemead, we offer readers of the City of Rosemead's financial statements this narrative overview and analysis of the financial activities of the City of Rosemead for the fiscal year ended June 30, 2010. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i - v of this report. All amounts, unless otherwise indicated, are in thousands of dollars. Financial Highlights • The assets of the City of Rosemead exceed its liabilities at the close of the most recent fiscal year by $46,401 (net assets). Of this amount, $20,490 (unrestricted) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets decreased by $3,672 primarily due to a State take -away of $1,438 and a return to routine revenues after several one -time revenues received in FY 2008 -09. • As of the of the current fiscal year, the City of Rosemead's governmental funds reported combined ending fund balances of $36,060, a decrease of $3,956 in comparison with the prior year. Approximately 66 percent of this total amount, $23,788, is available for spending at the government's discretion (unreserved, undesignated fund balance). • At the end of the current fiscal year, unreserved, undesignated fund balance for the General Fund was $13,627 or 75 percent of total General Fund expenditures. • The City of Rosemead's total long -term debt decreased by $571 or 1.6 percent during the current fiscal year, primarily due to principal payments of $945. Additions to debt include a new capital lease for a lift truck, a retrospective insurance payment of $512 and a $65 net increase in the compensated absences balance. For more detailed information please refer to Note No. 7, Changes in Long -Term Liabilities found on page No. 45 of the Basic Financial Report. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Rosemead's basic financial statements. The City of Rosemead's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. Government -wide Financial Statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Rosemead's finances, in a manner similar to private - sector business. The statement of net assets presents information on all of the City of Rosemead's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net 3 assets may serve as a useful indicator of whether the financial position of the City of Rosemead is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City of Rosemead that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The City of Rosemead does not have any business -type activities. The governmental activities of the City of Rosemead include general government, public safety, public works, community services, community development, and parks and recreation. The government -wide financial statements include not only the City of Rosemead itself (known as the primary government), but also a legally separate redevelopment agency and a legally separate low income housing corporation, for which the City of Rosemead is financially accountable. Financial information for the component units is reported separately from the financial information presented for the primary government itself. The government -wide financial statements can be found on pages 14-15 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Rosemead, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the funds of the City of Rosemead can be divided into three categories: governmental funds, internal service funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 4 I The City of Rosemead and its component units maintain 18 active governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Low - Moderate Income Housing Set -Aside Fund, Debt Service Funds and Capital Projects Funds, all four of which are considered to be major funds. Data from the other 14 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report, i The City of Rosemead adopts an annual appropriated budget for all its funds. A budgetary comparison statement has been provided for the General Fund, Low- Moderate Income Housing Set -Aside Fund, Traffic Safety Fund, Community Development Block Grant Fund, HOME Program Fund, Proposition A Fund, Proposition C Fund, Measure R, Federal Highway Grant Fund, State Gas Tax Fund, Air Quality Management District Fund, Street Lighting Fund, Narcotic Forfeiture and Seizure Fund, Rosemead Housing Development Corporation Fund, City Capital Projects Fund, Redevelopment Agency debt Service Fund and the Redevelopment Agency Capital Projects Fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 16 - 22 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City of Rosemead's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on page 26 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the Basic Financial Statements can be found on pages 27 — 55 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Rosemead's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information and notes can be found beginning on page 57 of this report. The combining statements referred to earlier in connection with non -major governmental funds and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 59 -89 of this report. Government -wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Rosemead, assets exceeded liabilities by $46,401 at the close of the most recent fiscal year. 5 The largest portion of the City of Rosemead's net assets (19 percent) reflects its investment in capital assets (e.g, land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. The City of Rosemead uses these capital assets to provide services to the citizens; consequently, these assets are not available for future spending. Although the City of Rosemead's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Rosemead's Net Assets As of June 30, 2010 and 2009 (thousands) An additional portion of the City of Rosemead's net assets (28 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($20,490) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Rosemead is able to report positive net asset balances. The situation also held true for the prior fiscal year, The government's net assets decreased by $3,672 during the current fiscal year. The two main contributors to the decrease in net assets are: 1) A return to normal revenue levels, after several on- time events in FY 2008 -09 and 2) the continuation of very low interest earnings reflecting yields in the one half percent range. Most of the City's surplus cash was invested in the State's Local Agency 6 ♦ e; 1 : . "k � 2010 =n '3ti20 Current and other assets 42,101 44,504 Capital assets 44,861 46,369 Total assets 86,962 90,873 Long-term liabilities outstanding 36,005 36,476 Other liabilities 4,556 4,324 Total liabilities 40,561 40,800 Net assets: Invested in capital assets, net of related debt 12,712 11,829 Restricted 13,199 13,361 Unrestricted 20,490 24,883 Total net assets $ 46,401 $ 50,073 An additional portion of the City of Rosemead's net assets (28 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($20,490) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Rosemead is able to report positive net asset balances. The situation also held true for the prior fiscal year, The government's net assets decreased by $3,672 during the current fiscal year. The two main contributors to the decrease in net assets are: 1) A return to normal revenue levels, after several on- time events in FY 2008 -09 and 2) the continuation of very low interest earnings reflecting yields in the one half percent range. Most of the City's surplus cash was invested in the State's Local Agency 6 Investment Fund (LAIF) investment pool. However, as yields start creeping up cash is being invested in more productive investments, mostly certificates of deposit and federal agencies. Governmental activities. Governmental activities decreased the City of Rosemead's net assets by $3,672. Contributing to the change in net assets are several single occurrence events described below. Total revenues increased by $575, and are offset by noteworthy expenditures that include: • A State mandated contribution to the Supplemental Education Rehabilitation Augmentation Fund (SERAF) of $1,438, a State budget balancing amendment. • Revenues that are measurable but not available of $1,078. • An installment to fund Other Post Employment Benefits (OPEB) liabilities of $645. • Deferred Transient Occupancy Tax (TOT) of $41. 7 8 Go�errlr�ienal`, 1 Program revenues: Charges for services $ 2,830 $ 3,006 Operating grants and contributions 8,214 6,403 Capital grants and contributions 680 1,748 General revenues: Property taxes 12,329 12,288 Othertaxes 6,100 6,624 Investment income 389 885 Intergovernmental, unrestricted 169 195 Other 337 134 Total revenues 31,048 31,283 Expenses: General government 5,992 12,177 Publicsafety 8,880 9,082 Public works 12,891 6,465 Community services 590 773 Community development 2,141 1,290 Parks and recreation 2,734 2,031 Interest on long -term debt 1,492 1,523 Total expenses 34,720 33,341 Increase in net assets before transfers (3,672) (2,058) Transfers Increase in net assets (3,672) (2,058) Net assets -June 30, 2009 50,073 52,131 Net assets - June 30, 2010 $ 46,401 $ 50,073 8 Expenses and Program Revenues Governmental Activities 9 1 i - -3 Financial Analysis of the Government's Funds The focus of the City of Rosemead's governmental funds is to provide information on the near -term inflows, and balances of spendable resources. Such information is useful in assessing the City of Rosemead's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of Rosemead's governmental funds reported combined fund balances of $36,060 a decrease of $3,956 in comparison with the prior year. Approximately 66% of this total amount $23,788 constitutes unreserved, undesignated fund balance, which is available for spending at the government's discretion. The remainder of the fund balance is reserved or designated to indicate that it is not available for new spending because it has already been committed for: 1) notes receivable of $886, 2) advances to other funds of $6,976, 3) land held for resale of $4,408 and 4) prepaid expenses of $2. General Fund. The general fund is the chief operating fund of the City of Rosemead. At the end of the current fiscal year, unreserved, undesignated fund balance of the general fund was $13,627, while total fund balance reached $16,954. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved, undesignated fund balance represents 75 percent of total general fund expenditures, while total fund balance represents 94 percent of that same amount. The fund balance of the City of Rosemead's general fund decreased by $2,288 during the current year. Key factors in this decline are as follows: • General Fund revenue decreased $1,730 over last year. Several revenue sources received in FY 2008 -09 will not be repeated in subsequent years, such as: mis- allocated sales tax revenue that was reimbursed to the City in FY 2008 -09, payment of a Los Angeles County Parks and Recreation building beautification grant of approximately $236 and payment of auto auction franchise fees of $112. The auto auction has ceased operations in the City. Further reductions to revenue were the result of a mandated loan of property tax (withheld by the County and remitted to the State) of $616 and building permit revenue declined by about $123, as a reflection of the recessionary economy. s To compensate for the expected decline in revenues, expenditures were cut by almost 10 %, primarily in salaries and benefits as well as legal fees. In FY 2008 -09 a sizeable miss - allocation of sales tax was identified and paid, by the State, to the City. The payment was a one -time event and was not repeated in FY 2009 -10. Because of work by the City's safes tax consultant to recover the mis - allocated sales tax they were paid $187. Payments to the consultant were less than $5 in FY 2009 -10, Proposition C Fund. Proposition C expenditures have dropped from $1,404 in FY 2008 -09 to $687 in FY 2009 -10. In FY 2008 -09 expenditures included outlays of reserves for the re- construction of the Garvey I 10 Avenue Bridge. By FY 2009 -10 the bridge project was complete and expenditures returned to transportation operating costs only. L ow -Moderate_ Income Housrn�_Fund._ The Lnw- Moderate Income Housing Fund (Low -Mod Fund), including transfers, finished the year with a $496 increase in fund balance. The Low -Mod Fund receives its funding primarily from transfers of property tax increment from the Community Development Commission and then transfers $250 to the Rosemead Housing Development Corporation to subsidize operations of the Corporations' senior low income housing apartments. Additionally, $189, a decrease of $67, compared with FY 2008-09, was spent on planning and administrative costs related to low income housing planning and fund administration. Vehicle Replacement and Technology Replacement Funds. As a budget balancing measure no charges to other departments were made for vehicle maintenance or technology replacement. Using departments are assessed charges for equipment used by the departments. The charges are accumulated in the internal service funds for future replacement of vehicles and equipment. However, there were expenditures of $48 in the Vehicle Replacement Fund and $24 in the Technology Replacement Fund. All expenditures came from fund balance. Community Development Commission Funds. The combined Community Development Commission (CDC) funds, debt service and capital projects, decreased fund balance by $1,466. Contributing to the decrease in fund balance was a mandated payment to the State of $1,438 for the Supplemental Education Rehabilitation Augmentation Fund (SERAF), a budget balancing measure forced on all local governments. Another $1,688 was spent on capital projects, consisting primarily of street overlay and community beautification projects. Debt service for the year was $1,502. Capital Asset and Debt Administration Capital assets. The City of Rosemead's investment in capital assets for its governmental activities as of June 30, 2010, amounts to $44,862 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, machinery and equipment, park facilities, roads, highways, bridges and construction in progress. Major capital asset events during the current fiscal year included the following: • Garvey Avenue resurfacing • The addition of ADA compliant curb ramps throughout the City • Del Mar Avenue beautification project City of Rosemead's Capital Assets (net of depreciation) (thousands) Land $ 2,969 $ 2 Buildings 16,612 17,365 Improvements other than Buildings 81 120 Machinery and equipment 215 205 Autos and trucks 349 204 Furniture and office equipment 108 157 Infrastructure 24,144 25,349 Construction in progress 384 - Total $ 44,862 $ 46,369 Additional information on the City of Rosemead's capital assets can be found in note fro. 6, found on pages 44-45 of the Basic Financial Report. Long-term debt. At the end of the current fiscal year, the Rosemead Community Development Commission had total bonded debt outstanding of $34,490. Of this amount, all of it is backed by future property tax increment revenues. City of Rosemead's Outstanding Debt Revenue Bonds (thousands) Tax Allocation Bonds $ 34,490 1 $ 36,476 The Rosemead Community Development Commission's total bonded debt decreased by $945 during the current fiscal year due to debt service payments leaving bonded indebtedness at $34,490. 12 L_J i' Economic Factors and Next Year's Budgets and Rates • As discussed throughout this management's Discussion and Analysis report, there were significant revenue reductions in the FY 2010 -11 budget. Accordingly, the Salary and benefit and operating and maintenance expenditures cut by 10 percent. Sales tax in the City has remained remarkably stable with only a small decline projected for budget purposes. • At the time the FY 2010 -11 budget was being prepared the recessionary economy was showing few signs of letting up. Therefore staff took a conservative approach in projecting discretionary revenues such as building permits and parks and recreation activities. All of these factors were considered in preparing the City of Rosemead's budget for the 2011 fiscal year. The operating budget was balanced without the use of reserves. Requests for Information This financial report is designed to provide a general overview of the City of Rosemead's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Director of Finance, 8838 East Valley Boulevard, Rosemead, CA 91770. 13 CITY OF ROSEMEAD Statement of Net Assets June 30, 2010 See accompanying notes to the basic financial statements. 14 Governmental Activities Assets: Cash and investments (note 2) $ 32,854,626 Receivables: Accounts 3,151, 742 Accrued interest 53,526 Notes 885,779 Prepaid expenses 326,872 Deferred charges 420,835 Land held for resale 4,407,616 Capital assets (note 6): Land 2,968,824 Construction in progress 383,536 Other capital assets, net 41,508,836 Total assets 86,962,192 Liabilities: Accounts payable and accrued liabilities 3,338,364 Accrued salaries and benefits 375,081 Retentions payable 98,911 Accrued interest payable 595,826 Unearned revenue 147,528 Noncurrent liabilities (note 7 to 9): Due within one year 1,307,823 Due in more than one year 34,697,258 Total liabilities 40,560,791 Net assets: Invested in capital assets, net of related debt 12,712,242 Restricted for: Public works 4,218,751 Public safety 2,518,253 Low - moderate income housing 6,462,434 Unrestricted 20,489,721 Total net assets $ 46,401,401 See accompanying notes to the basic financial statements. 14 CITY OF ROSEMEAD Statement of Activities Fiscal Year ended ,tune 30, 2010 Expenses Governmental activities: General government Public safety Public works Community services Community development Parks and recreation Interest expense Total governmental activities $ 5,991,796 8,879,854 12, 890, 803 589,650 2,141,218 2,733,885 1,491,717 Program Revenues Net (Expense) Operating Capital Revenue and Charges for Contributions Contributions Changes in Services and Grants and Grants Net Assets 507,547 1,066,148 - 491,484 122,078 680,115 1,065,482 6,986,529 - 186,283 - - 558,404 38,998 20,800 - - $ 34,718,923 2,830,000 8,213,753 680,115 General revenues: Taxes: Property taxes Sales and use taxes Transient occupancy taxes Franchise taxes Investment income Motor vehicle in lieu, unrestricted Other general revenues Total general revenues Change in net assets Net assets at beginning of year Net assets at end of year See accompanying notes to the basic financial statements. 15 (4,418,101) (7,586,177) (4,838,792) (403, 367) (1,543,816) (2,713,085) (1,491,717) (22,995,055} 12, 328, 634 4,408,367 1,129,146 562,317 389,310 169,042 336,668 19,323,484 (3,671,571) 50,072,972 $ 46,401,401 CITY OF ROSEMEAD Balance Sheet - Governmental Funds June 30, 2010 Assets: Cash and investments Receivables: Accounts Accrued interest Notes Prepaid items Due from other funds (note 4) Land held for resale Advances to other funds (note 4) Total assets Liabilities and Fund Balance Liabilities: Accounts payable and accrued liabilities Accrued salaries and benefits Retentions payable Due to other funds (note 4) Deferred revenue Advances from other funds (note 4) Total liabilities Fund balance: Reserved for: Notes receivable Prepaid items Land held for Resale Advances to other funds Unreserved, reported in: General fund Special revenue funds Debt service funds Capital projects funds Total fund balance Total liabilities and fund balance General S pecial Revenu Low- Moderate Income Housing $ 14,211,365 1,289,449 1,288,261 - 25,396 2,474 827,228 - 2,034 - 764,607 718,929 2,497,920 4,477,945 $ 19,616,811 6,488,797 $ 1,615,016 298,734 1,245 249 747,611 2,662,855 2,303 393 23,667 26,363 Debt Service Redevelopment Agency 7,187, 527 468,654 16,626 7,672,807 390,937 15 4,477,945 4,868,897 827,228 - - 2,034 - - 2,497,920 4,477,945 - 13,626,774 - - - 1,984,489 - - - 2,803,910 16,953,956 6,462,434 2,803,910 $ 19,616,811 6,488,797 7,672,807 See accompanying notes to the basic financial statements. 16 ! Capital Projects i Redevelopment j Agency r f k , 2,408,466 i 56,862 8,640 9,799 4,407,616 6,891,383 52,576 k 110 1,285,616 53,315 2,497,920 3,889,537 Non -Major Governmental Total 7,687,584 32,7$.4,391 1,337,965 3,151,742 390 53,526 58,551 885,779 - 2,034 395,229 1,888,564 - 4,407,616 6,975,865 9,479,719 50,149,517 1,275,233 3,336,065 75,829 375,081 97,666 98,911 579,032 1,888,564 614,538 1,415,464 - 6,975,865 2,642,298 14,089,950 58,551 885,779 - 2,034 - 4,407,616 - 6,975,865 - 13,626,774 6,778,870 8,763,359 - 2,803,910 (1,405,770) 6,837,421 36,059,567 9,479,719 50,149,517 17 (This page intentionally left blank) 18 CITY OF ROSEMEAD Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2010 Fund balances of governmental funds Amounts reported for governmental activities in the statement of net assets are different because: Capital assets, net of depreciation, have not been included as financial resources in governmental fund activity. Capital assets Accumulated depreciation Long -term debt and compensated absences that have not been included in the governmental fund activity: Compensated absences Retrospective deposits payable Unamortized bond premiums Capital lease payable Tax allocation bonds Debt issuance costs are not current financial resources and, therefore, are not reported in the governmental funds. Accrued interest payable for the current portion of interest due on bonds payable has not been reported in the governmental funds. Long -term assets that are not available for current use. Amounts are not reported in the governmental funds. Revenues that are measurable but not available. Amounts are recorded as deferred revenue under the modified accrual basis of accounting. Internal service funds are used by management to charge the costs of certain activates, such as equipment management, to individual funds. The assets of the internal service funds must be added to the statement of net assets. Net assets of governmental activities See accompanying notes to the basic financial statements. 19 $ 36,059,567 80,083,054 (35,221,858) (487,764) (719,551) (237,622) (70,144) (34,490,000) 420,835 (595,826) 324,838 1,267, 936 67,936 $ 46,401,401 CITY OF ROSEMEAD Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Fiscal Year ended June 30, 2010 See accompanying notes to the basic financial statements. 20 Special Revenu Debt Service Low-Moderate Income Housing Redevelopment General Set -Aside Agency Revenues: Taxes $ 12,264,948 - 6,243,948 Intergovernmental 894,325 - - Licenses and permits 1,079,429 - - Charges for services 708,434 - - Fines, forfeitures and penalties 491,574 - - Special assessments - - - Investment income 177,794 10,308 67,878 Other 235,864 - - Total revenues 15,852,368 10,308 6,311,826 Expenditures: Current: General government 3,612,875 - 106,884 Public safety 7,318,037 - 975,509 Public works 2,951,999 - - Community services 218,138 - - Community development 966,631 189,359 - Parks and recreation 2,733,885 - - Capital outlay 290,885 - - Debt service: Principal - - 945,000 Interest and fiscal charges - - 1,501,667 Total expenditures 18,092,450 189,359 3,529,060 Excess (deficiency) of revenues over (under) expenditures (2,240,082) (179,051} 2,782,766 Other financing sources (uses): Transfers in (note 5) 70,996 925,481 - Transfers out (note 5) (221,478) (250,000) (2,782,766) Proceeds of capital lease 102,501 - - Total other financing sources (uses) (47,981} 675,481 (2,782,766) Change in fund balances (2,288,063) 496,430 - Fund balances at beginning of year 19,242,019 5,966,004 2,803,910 Fund balances at end of year $ 16,953,956 6,462,434 2,803,910 See accompanying notes to the basic financial statements. 20 Capital Projects Redevelopment Non -Major 5,903,926 Agency Governmenta Total 1,687,774 - 18,508,896 j 6,962,467 7,856,792 - 1 784,651 1,079,429 - - 708,434 - - 491,574 - 680,288 680,288 42,884 90,446 389,310 18,746 - 254,610 61,630 7,733,201 29,969,333 1,452,328 731,839 5,903,926 - 569,688 8,863,234 1,687,774 6,624,447 11,264,220 :. - 366,325 584,463 - 784,651 1,940,641 - - 2,733,885 - - 290,885 i - - 945,000 - i - 1,501,667 3,140,102 9,076,950 34,027,921 (3,078,472) (1,343,749} (4,058,588) 1,916,090 1,220,987 4,133,554 (304,065) (575,245) (4,133,554) - - 102,501 1,612,025 645,742 102,501 (1,466,447) (698,007) (3,956,087) 4 7,535,428 40,015,654 3,001,846 6,837,421 36,059,567 21 CITY OF ROSEMEAD Governmental f=unds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Fiscal Year ended June 30, 2010 Net changes in fund balances of governmental funds $ (3,956,087) Amounts reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlay 807,636 Depreciation expense (2,282,670) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long -term liabilities in the statement of net assets. 945,000 To record as an expense the net change in the other post employment benefit obligation in the statement of activities. 478,129 To record as an expense the net change in retrospective deposit payable in the statement of activities. (512,075) Bond issuance costs, premiums, discounts, and similar items are recorded as expenditures in governmental funds when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net offset of the differences. (12,570) To record as an expense the net change in capital leases payable in the statement of activities. (102,501) The statement of net assets includes accrued interest on long term debt. 22,520 To record as an expense the net change in compensated absences in the statement of activities. (64,914) Revenues that are measurable but not available. Amounts are not recorded as revenue under the modified accrual basis of accounting. 1,078,019 Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities. (72,058) Change in net assets of governmental activities $ (3,671,571) See accompanying notes to the basic financial statements. 22 CITY OF ROSEMEAD Statement of Net Assets Proprietary Funds June 30, 2010 Current assets: Cash and investments Total assets Current liabilities: Accounts payable Total liabilities Unrestricted Total net assets Assets Liabilities Net assets Internal $ 70,235 70,235 2,299 2,299 67,936 $ 67,936 See accompanying notes to the basic financial statements. 23 CITY OF ROSEMEAD Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Funds Year ended June 30, 2010 Internal Operating expenses: Contractual services $ 72,058 Total operating expenses 72,058 Changes in net assets (72,058) Net assets at beginning of year 139,994 Net assets at end of year $ 67,936 See accompanying notes to the basic financial statements. 24 i i i r: I E Internal Cash flows from operating activities: Cash received from user departments $ 72,534 Cash payments to suppliers for goods and services (2,299) Net cash provided by (used for) operating activities 70,235 Net cash proved by (used for) capital and related financing activities - Net cash provided by (used for) investing activities - Net increase (decrease) in cash and cash equivalents 70,235 Cash and cash equivalents at beginning of year - Cash and cash equivalents at end of year $ 70,235 Reconciliation of operating income to net cash provided by (used for) operating activities: Operating income (loss) $ (72,058) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Increase (decrease) in accounts payable 2,299 (Increase) decrease in due from other funds 139,994 Total adjustments 142,293 Net cash provided by operating activities $ 70,235 See accompanying notes to the basic financial statements, 25 CITY OF ROSEMEAD Statement of Fiduciary Assets and Liabilities Agency Fund June 30, 2010 Assets Cash and investments (note 2) $ 479,080 Total assets $ 479,080 Liabilities Deposits payable $ 479,080 Total liabilities $ 479,080 See accompanying notes to the basic financial statements. 26 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements Fiscal Year Ended June 30, 2010 Summary of Significant Accounting Policies (a) Reporting I The City of Rosemead, California, ( "the City ") was incorporated in August 1959 under the general laws of the State of California. The City operates under an elected Council /City Manager form of government. It 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 a variety of other public and private agencies under contract. Some of the contracts now in effect are for police, street maintenance and animal control. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by generally accepted accounting principles, these financial statements present the government and its component units, which are entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. Based upon the above criteria, the blended component units of the City are the Rosemead Financing Authority (the Authority), the Rosemead Community Development Commission (the Commission) and the Rosemead Housing Development Corporation (the Corporation). 27 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (a) Reporting_ Entity, (Continued) Rosemead Financing Authority The Authority provides for the financing or refinancing of public capital improvements and working capital requirements of local agencies that enter into contractual arrangements with the Authority. Rosemead Community Development Commission The Commission's purpose is to prepare and carry out plans for the improvement, rehabilitation and redevelopment of blighted areas within the City. The Commission finances street, park and utility improvements, and also acquires and constructs major capital facilities, all within the Rosemead Project Area No. 1. Although the Agency is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Agency. Separate financial statements of the Agency can be obtained from the Finance Department. Rosemead Housing Development Corporation The Corporation accounts for the construction, financing and operations of low and moderate- income housing. It is a California nonprofit benefit corporation organized under Section 501(c)(3) of the Internal Revenue Code. Since the City Council and/or other City officials serve as the Governing Board for these component units, all of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the City's operations. Therefore, data from these units are reported with the funds of the primary government, the City. The Commission and the Corporation issue separate component unit financial statements. The financial statements of these component units can be obtained from the Finance Department. 28 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus The basic financial statements of the City are composed of the following O Government -wide financial statements 0 Fund financial statements Notes to the basic financial statements Financial reporting is based upon all GASB pronouncements, as well as the FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins that were issued on or before November 30, 1989 that do not conflict with or contradict GASB pronouncements. Government -wide Financial Statements Government -wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business -type activities of the primary government (including its blended component units), as well as its presented component units. The City of Rosemead has no discretely presented component units. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by function to which they were allocated). However, general governmental expenses have not been allocated as indirect expenses to the various functions of the City. Government -wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long -term) economic resources and obligations of the reporting government are reported in the government -wide financial statements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33. 29 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus Continued Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial statements, rather than reported as expenditure. Proceeds of long -term debt are recorded as a liability in the government -wide financial statements, rather than as other financing source. Amounts paid to reduce long -term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as expenditure. Fund Financial Statements The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds are presented after the government -wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for fiduciary funds and similar component units. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations. Governmental Funds In the fund financial statements, governmental funds are presented using the modified - accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a sixty day availability period. 30 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 1 Summary of Significant Accounting Policies Continued (b) Basis of Accounting and Measurement Focus Continued Revenue recognition is subject to the measurable and available criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). focally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction on which they are based takes place. Imposed non - exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government - mandated and voluntary non - exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Non - current portions of long -term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long -term receivables are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long -term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long -term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long -term indebtedness are reported as fund expenditures. 31 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies. (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. Fiduciary Funds The City's 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. (c) Maior and Fiduciary Fund Types The City's major governmental funds are as follows: 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. Low - Moderate income Housing Set -Aside Special Revenue, Fund — Accounts for 20% of gross property tax increment revenue received by the Commission to fund future projects involving the replacement or rehabilitation of low and moderate - income housing within City limits. Redevelopment Agengy Agency Debt Service Fund — Accounts for the accumulation of resources for the payment of general long -term debt principal, interest and related costs. Redevelopment Agency Capital Projects Fund — Accounts for financial resources to be used for the improvement and rehabilitation of the community redevelopment project areas and acquisition or construction of major capital facilities within the City. Internal Service Funds — These funds are used to account for vehicle and technology replacement. Departments of the City are charged for the services provided or benefits received from these funds. 32 CITY OF ROSEMEAD, CALIFORNIA ` Notes to the Basic Financial Statements (Continued) 1 Summary of Significant Accounting Policies Continued (c) Maior and Fiduciary Fund Types, (Continued) The City's Fiduciary Fund is as follows: 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. The Agency Fund is custodial in nature and does not present results of operations or have a measurement focus. (d) Investments For financial reporting purposes, investments are adjusted to their fair value whenever the difference between fair value and the carrying amount is material. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and Investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance. (e) Cash Equivalents For purposes of the statement of cash flows, cash equivalents are defined as short -term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City of Rosemead. Cash equivalents have an original maturity date of three months or less from the date of purchase. For purposes of the statement of cash flows, the entire balance of cash and investments on the combined balance sheet for the internal service fund is considered cash and cash equivalents. 33 - i (Continued) (1) Summary of Significant Accounting Policies, (Continued) (f} Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their estimated fair market value at the date of the contribution. Generally, capital asset purchases in excess of $10,000 are capitalized if they have an expected useful life of one year or more. Capital assets include public domain (Infrastructure) general capital assets consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains. Capital assets used in operations are depreciated over their estimated useful lives using the straight -line method in the government --wide financial statements and in the fund financial statements of the internal service funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The following schedule summarizes capital asset useful lives: Buildings 50 years Improvements other than buildings 15 years Machinery and equipment 7 years Autos and trucks 5 years Furniture and office equipment 7 years Infrastructure: Bridges 50 years Sewer system and storm drain system 50 -100 years Medians and sidewalks 40 years Traffic signals 30 years Streets 20 years (g) Compensated Absences Vacation and sick leave pay are payable to employees at the time used or upon termination of employment. All vacation is accrued when incurred in the government -wide level financial statements. Sick pay is accrued to the extent it is probable that the benefits will result in termination payments (i.e., rather than be taken as absences due to illness or other contingencies, such as medical appointments and funerals). 34 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 1 Summa of Significant Accounting Policies Continued (g) Compensated Absences Continued The sick leave liability is estimated based on the City's past experience of making termination payments from sick leave, adjusted for the effect of changes in its termination payment policy and other current factors. A liability for these amounts is reported in governmental funds only if it has matured or will be paid from available resources of the current period. City employees accumulate vacation hours that may be paid upon termination, death or retirement. Employees can accumulate up to three weeks of accrued vacation per year depending on the length of employment. Employees can accumulate up to 160 hours of sick leave. Any hours in excess of 160 are considered to be vested and are paid to the employee based on a vesting schedule. In addition, employees can accrue compensatory time. The City allows employees who have earned vacation time an opportunity to have the City buy back up to two weeks of vacation time per year. In order to participate in the Vacation Buy -Back Program, an employee must take at least 40 consecutive hours of vacation at one time. (h) Prepaid Items Prepaid items are reported in the governmental funds under the consumption method and are offset by a reservation in fund balance to indicate that they are not available for appropriation and are not expendable financial resources. (i) Fund Eguitk In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. (j) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 35 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 1 Summary of Significant Accounting Policies Continued (k) Low - Moderate Income Housing Set -Aside On October 9, 1991 the Commission prepaid its housing obligation in the amount of $6,813,850 from proceeds from its 1987 tax allocation notes. This pre- payment was restructured in 1993 along with the 1993 series tax allocation bonds. As a result, the Commission's housing obligation has been reduced by $469,142 per year until the 2021 -22 fiscal year. (2) Cash and Investments Cash and investments as of June 30, 2010 are classified in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments $32,854,626 Statement of Fiduciary Assets and Liabilities: Cash and investments 479,080 Total cash and investments $33,333,706 Cash and investments as of June 30, 2010 consist of the following: Deposits with financial institutions $ 3,179,348 Investments 30,154,358 Total cash and investments $33 } 333,706 36 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (2) _ . Cash and _Investments, (Continued) Investments Authorized by the California Government Code and the City's Investment Polite The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy, The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are overned b the provisions of debt agreements eements of g Y p the City, than the general g Y� g provisions of the California Government Code or the City's investment policy. Authorized *Maximum *Maximum Investment Types By Investment *Maximum Percentage Investment Authorized by State Law Policy Ma -- turity Of Portfolio In One Issuer U.S. Treasury Obligations Yes 5 years None None U.S. Agency Securities Yes 5 years None None Banker's Acceptances Yes 270 days 40% 10% Commercial Paper Yes 270 days 25% 10% Negotiable Certificates of Deposit Yes 3 years 30% None Repurchase Agreements No NIA NIA NIA Reverse Repurchase Agreements No NIA NIA NIA Medium -Term Notes Yes 3 years .15% 10% Money Market Mutual Funds Yes NIA None None Local Agency Investment Fund Yes NIA None None (LAIF) * Based on state law requirements or investment policy requirements, whichever is more restrictive. 37 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 2 Cash and Investments Continued Investments Authorized by Debt Agreements Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by investing in pooled investments, such as LAIF. 38 Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity Allowed in One Issuer U.S. Treasury Obligations 5 years None None U.S. Agency Securities 5 years None None Banker's Acceptances 270 days 40% 10% Commercial Paper 180 days 10% 10% Money Market Portfolio 1 year None None Investment Agreements None None None Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by investing in pooled investments, such as LAIF. 38 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (2) _ Cash and Investments, (Continued) Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Remaining Maturity (in Months) 12 Months 13 to 24 25 Months Investment Type Total Or Less Months or Greater State investment pool $ 25,031,304 28,031,304 - - Certificates of deposit 980,000 - 490,000 490,000 Held by bond trustee: Investment agreement 1,143,054 - - 1,143,054 Total L330,154,358 28.031,304 49U00 1,633,054 Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year end for each investment type. 39 Minimum Legal Not Investment Type Total Rating AAA Rated State investment pool $ 28,031,304 NIA - 28,031,304 Certificates of deposit 980,000 NIA 980,000 Held by bond trustee: Investment agreement 1,143 054 NIA - 1,143,054 Total $ 30,154,358 - 30.154.358 39 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside parlay. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker- dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2010 the City had no deposits with financial institutions in excess of federal depository insurance limits held in uncollateralized accounts. Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro -rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. 40 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (3) Property Taxes Under California law, property taxes are assessed and collected by the counties up to 11% of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of Rosemead accrues only those taxes that are received from the County within sixty days after year -end. Lien date January 1 Levy date July 1 Due dates November 1 and February 1 Collection dates December 10 and April 10 The Community Development Commission of the City of Rosemead's primary source of revenue comes from property taxes. Property taxes allocated to the Commission are computed in the following manner: (a) The assessed valuation of all property within the project area is determined on the date of adoption of the Redevelopment Plan. (b) Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the Commission; all taxes on the "frozen" assessed valuation of the property are allocated to the City and other districts. The Commission has no power to levy and collect taxes and any legislative property tax shift might reduce the amount of tax revenues that would otherwise be available to pay the principal of, and interest on, debt. Broadened property tax exemptions could have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would increase the amount of tax revenues that would be available to pay principal and interest on debt. 41 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (4) Interfund Receivables and Payables Current interfund receivables and payables balances at June 30, 2010 are as follows: Due from other funds Due to other funds Amount General Fund Low - Moderate Income $ 23,667 Redevelopment Agency Capital Projects Fund 171,458 Non -Major Governmental Fund 569,482 Total General Fund 764,607 Non -Major Redevelopment Agency Governmental Fund Capital Projects Fund 395 Redevelopment Agency Capital Projects Fund General Fund 249 Non -Major Governmental Fund 9,550 Total RDA Capital Projects Fund 9,799 Redevelopment Agency Low - Moderate Income Capital Projects Fund 718,929 Total 1,888,564 (A) Short -term borrowing to cover temporary cash deficits. Noncurrent interfund receivable and payable balances at June 30, 2010 are as follows: Advances to other funds Advances from other funds Amount Low - Moderate Income Redevelopment Agency Housing Set -Aside Debt Service Fund $ 4,477,945 (B) General Fund Redevelopment Agency Capital Projects Fund Total 2,497,920 (C) $ 6.975,865 42 CITY OF ROSEMEAD, CALIFORNIA i j Notes to the Basic Financial Statements (Continued) (4) InterFund_ Receivables and Payables, (Continued) (B) Under State law, the Commission is required to set aside a portion of its property tax increment revenue for low- and moderate - income housing. The Commission has made findings that, for the years ended June 30, 1986 through 1991, it was allowed to defer funding of the set - aside. The set -aside amounts incurred during the fiscal years ended June 30, 1994, 1995 and 1996 were also deferred until the fiscal year ending June 30, 2023, as provided by the Commission's adoption of the housing deficit repayment plan. As of June 30, 2010, the accumulated set - aside amount not yet funded was $4,477,945. As required by law, the Commission devised a plan to fund the accumulating amount. (C) In September 2007 the General Fund advanced the Redevelopment Agency Capital Projects Fund $2,497,920 at an interest rate of 5.25% per annum. Accrued interest is payable in annual installments of $131,141 beginning on September 28, 2008, and continuing until September 28, 2027, at which time the remaining principal and interest shall be due in full. (5) Interlund Transfers Interfund transfers were as follows for the year ended June 30, 2010: Transfer In Transfer Out Amount General Fund Non -Major Governmental $ 70,996 Redevelopment Agency Debt Service Fund Funds Total Non -Major Governmental Funds Low - Moderate Income Redevelopment Agency 4.133.554 Housing Set -Aside Debt Service Fund 925,481 (A) Redevelopment Agency Redevelopment Agency Capital Projects Fund Debt Service Fund 1,190,363 (B) General Fund 221,478 Non -Major Governmental Funds 504,249 Total Redevelopment Agency Capital Projects Fund 1,916 Non -Major Governmental Low- Moderate Income Housing Set -Aside 250,000 Redevelopment Agency Capital Projects Fund 304,065 Redevelopment Agency Debt Service Fund 666,922 Total Non -Major Governmental Funds 1,220,987 Total 4.133.554 The following describes the significant transfers in and transfers out included in the financial statements: (A) To record the low and moderate income housing set -aside for the year ended June 30, 2010. (B) To transfer remaining tax increment, net of pass - through payments, 20% set aside and debt service payments to the Capital Projects Fund. 43 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (6) Capital Assets Capital asset activity was as follows for the year ended June 30, 2010: Balance at Balance at June 30, 2009 Increases Decreases June 30, 2010 Governmental activities: Capital assets not depreciated: Land $ 2,968,824 - - 2,968,824 Construction in progress - 383,536 - 383,536 Total capital assets not being depreciated 2,968,824 383,536 - 3,352,360 Capital assets being depreciated: Buildings 23,994,956 - - 23,994,956 Improvements other than buildings 1,027,097 - - 1,027,097 Machinery and equipment 977,031 36,904 - 1,013,935 Autos and trucks 637,129 229,169 - 866,298 Furniture and office equipment 2,501,386 - - 2,501,386 Infrastructure 47 2001 3_52 _125,670 - 47,327,022 Total capital assets being depreciated 76,338,951 391,743 - 76,730,694 Less accumulated depreciation for: Buildings (6,630,318) (752,881) - (7,383,199) Improvements other than buildings (907,476) (38,997) - (946,473) Machinery and equipment (772,319) (26,340) - (798,659) Autos and trucks (432,500) (85,039) - (517,539) Furniture and office equipment (2,344,395) (48,807) - (2,393,202) Infrastructure (_2.1,852,180 (1,330,606 - (23,182,786 Total accumulated depreciation (32,939,188 (2,282,670 - (35,221,858 Total capital assets being depreciated, net 43,399,763 (1,890,927) - 41,508,836 Governmental activities capital assets, net $46.368,587 (1,507,391) - 44,861_,196 2M CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (6) Capital Assets, (Continued) Depreciation expense was charged to functions /programs of the primary government as follows: Governmental activities: Public works $2,082,093 Community development 200,577 Total depreciation expense 12282,670 (7) Changes in Long -Term Liabilities Long -term debt consists of the following at June 30, 2010: Balance at Balance at Due within Due Beyond June 30, 2009 Additions Reductions June _30, 201.0 One Year One Year Governmental activities: Tax allocation bonds, Series 2006A $11,570,000 - 870,000 10,700,000 900,000 9,800,000 Tax allocation bonds, Series 20066 23,865,000 - 75,000 23,790,000 75,000 23,715,000 Unamortized bond premiums 257,424 - 19,802 237,622 19,802 217,820 Capital lease - 102,501 32,357 70,144 34,137 36,007 Retrospective deposit 207,476 512,075 - 719,551 69,159 650,392 Compensated absences 422,850 348,936 284,022 487,764 209,725 278,039 $36,322,750 963,512 281,181 36,005,081 1.307,823 34,697258 The City records expenditures related to compensated absences through the City's General Fund. 45 Notes to the Basic Financial Statements (Continued) Changes in Long -Terra Liabilities, (Continued) Capital Lease In 2010, the City entered into a lease agreement for the acquisition of an aerial lift truck. The lease agreement qualifies as a capital lease for accounting purposes (title transfer at end of lease) and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception. The equipment acquired during the fiscal year under this lease agreement is recorded at its acquisition cost of $102,501. The outstanding balance at June 30, 2010 was $70,144. The calculation of the present value of the future lease payments is as follows: Amount of future lease payments for the year ending June 30, 2011 2012 Subtotal Less amount representing interest Present value of future lease payments Tax Allocation Bonds, Series 2006A Governmental Activities $ 37,995 37,995 75,982 ( 5 , 838) 70 144 On March 9, 2006, the Commission issued tax allocation bonds in the amount of $14,005,000 (Series 2006A) to: (1) refund a portion of the Commission's outstanding Series 1993A bonds and (2) to finance redevelopment activity in Redevelopment Project Area No.1. The bonds bear interest ranging from 3.25% to 5.00% and mature in annual installments of $780,000 to $1,250,000 on various dates through October 1, 2022. The Commission purchased a surety bond in lieu of cash reserve in the amount of $1,323,238. Portions of the bonds are subject to early redemption, at the option of the Commission, beginning October 1, 2017. A surety bond has been acquired to satisfy the reserve requirements. As of June 30, 2010 the outstanding balance was $10,700,000. E ; 1 I (Continued) (7) Changes in_Long -Term Liabilities, (Continued) Tax Allocation Bonds, Series 20068 In December 2006, the Commission issued $24,230,000 in Project Area No. 1 Tax Allocation Bonds. The bonds mature in amounts ranging from $70,000 to $1,430,000 with interest rates ranging from 3.25% to 4.25% through October 1, 2025. The net proceeds were used to refund the remaining $23,095,000 amount outstanding on the 1993 Tax Allocation Bonds. The securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1993 Bonds. As a result, the entire 1993 Bonds are considered to be defeased and the liability for those bonds has been removed from the government -wide financial statements. A surety bond has been acquired to satisfy the reserve requirements. As of June 30, 2010, $23,790,000 of the bonds are outstanding. At June 30, 2010, debt service requirements to maturity for governmental activities long- term debt are as follows: 47 2006A Tax Allocation Bonds 20068 Tax Allocation Bonds Year Endinq June 30 Prin cipal Interest Principal Interest 2011 $ 900,000 449,856 75,000 1,035,049 2012 930,000 419,481 80,000 1,032,336 2013 965,000 386,931 80,000 1,029,536 2014 1,000,000 353,156 85,000 1,026,649 2015 1,035,000 313,156 85,000 1,023,674 2016 -2020 4,965,000 768,155 1,500,000 5,046,903 2021 -2023 905,000 75,694 6,360,000 4,181,211 2025.2029 - - 7,850,000 2,646,266 2030 -2034 - - 7,675,000 701,955 $10,700,000 2.766,429 23,790 000 17 723 579 47 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (8) Post Employment Benefit Plan Plan Description: The City administers a single employer defined benefit plan which provides medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements. The City has not established a trust that is administered by the City for the purpose of holding assets accumulated for plan benefits. After age 65, Medicare automatically becomes the primary provider of health coverage. The City's defined benefit plan becomes the secondary provider. Eligible retirees will have no noticeable change in health benefits or plan administration; however, there is a reduction in the City's cost of health coverage as the secondary provider. The City's defined benefit plan administrator establishes the cost of secondary provider rates annually. The City will pay 100 % for eligible retirees' health coverage. Eligibility. Employees are eligible for retiree health benefits if they retire from the City on or after age 50 with at least 5 years of service, and are eligible for a PERS pension. Membership of the plan consisted of the following at January 1, 2008, the date of the latest actuarial valuation: Retirees and beneficiaries receiving benefits 14 Active plan members 30 Total 44 City's Funding Policy: The contribution requirements of plan members and the City are established and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on a pay -as- you -go basis (i.e., as medical insurance premiums become due). For fiscal year 2009 -10, the City contributed $131,487 to the plan for current premiums. Annual OPEB Cost and Net OPEB Obligation, The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation for these benefits: 48 I CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (8] Post Employment Benefit Plan, (Continued) Annual required contribution Interest on net OPEB obligation Adjustments to annual required contributions Annual OPEB cost (expense) Contributions made (including premiums paid) Decrease in net OPEB obligation Net OPEB obligation- beginning of year Net OPEB asset -end of year $284,778 5,917 ( 5,917 ) 284,778 L762 (478,129) 153,291 $( 324.838 ) The net OPEB asset is reported in the government -wide statements as part of prepaid expenses. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2010 and the two preceding years were as follows: Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for the benefits. V P11 Percentage of Net Annual OPEB Fiscal Annual OPEB Cost Obligation Year OPEB Cost Contributed Asset 6130108 NIA NIA NIA 6130109 $284,778 46% $153,291 6130110 284,778 268% (324,838) Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for the benefits. V P11 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (8) Post Employment Benefit Plan, (Continued) Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial assets, consistent with the long -term perspective of the calculations. The actuarial cost method used for determining the benefit obligations is the Frozen Entry Age Actuarial Cost Method. The actuarial assumptions included a 4.5 percent investment rate of return, which is the assumed rate of the expected long -term investment returns on plan assets calculated based on the funded level of the plan at the valuation date, and an annual healthcare cost trend rate of 10 percent initially, reduced by decrements of 0.5 per year to an ultimate rate of 5 percent after the tenth year. The UAAL is being amortized as a level percentage of projected payroll over 30 years. It is assumed the City's payroll will increase 3.25% per year. SCHEDULE OF FUNDING PROGRESS (9) Risk Management Self-insurance pool pursuant to joint powers agreement The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 122 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self- insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other coverages. The Authority's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a 9- member Executive Committee. 50 Actuarial Accrued UAAL as a Actuarial Liability Unfunded Percentage of Actuarial Value of (AAL)- AAL Funded _ Covered Covered Valuation Assets Ent Age UAAL Ratio Payroll Payroll Date LL- a alb (c) ba /c 1/01106 NIA NIA NIA NIA NIA NIA 1/01107 NIA NIA NIA NIA N/A NIA 1/01108 $0 $3,548,605 $3,548,605 0% $1,682,985 211% (9) Risk Management Self-insurance pool pursuant to joint powers agreement The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 122 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self- insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other coverages. The Authority's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a 9- member Executive Committee. 50 (Continued) (9) Risk Management, (Continued) Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Claims are pooled separately between police and non - police. Costs are allocated to members by the following methods within each of the four layers of coverage: (1) the first $30,000 of each occurrence is charged directly to the member's primary deposit; (2) costs from $30,000 to $750,000 and the loss development reserves associated with losses up to $750,000 are pooled based on the member's share of losses under $30,000; (3) losses from $750,000 to $2,000,000 and the associated loss development reserves are pooled based on payroll; (4a) costs of covered claims from $2,000,000 to $50,000,000 are paid under reinsurance and excess insurance policies (4b) subject to a $3,000,000 annual aggregate deductible (4c) and a quota- sharing agreement whereby the Authority is financially responsible for 40% of losses occurring within the $2,000,000 to $10,000,000 layer. The costs associated with 4a -c are estimated using actuarial models and pre - funded as part of the primary and retrospective deposits. The overall policy limit for each member including all layers of coverage is $50,000,000 per occurrence. Costs of covered claims for subsidence losses are paid by excess insurance with the following sub - limits per member: $25,000,000 per occurrence with a $15,000,000 annual aggregate. The City also participates in the workers' compensation pool administered by the Authority. Each member pays a primary deposit to cover estimated losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Claims are pooled separately between public safety and non - public safety. Costs are allocated to members by the following methods within each of the four layers of coverage: (1) the first $50,000 of each loss is charged directly to the member's primary deposit; (2) losses from $50,000 to $100,000 and the loss development reserve associated with losses up to $100,000 are pooled based on the member's share of losses under $50,000; (3) losses from $100,000 to $2,000,000 and the loss development reserves associated with those losses are pooled based on payroll; (4) losses from $2,000,000 up to statutory limits are paid under an excess insurance policy. Protection is provided per statutory liability under California Workers' Compensation law. Employer's Liability losses are pooled among members to $2,000,000, coverage from $2,000,000 to $4,000,000 is purchased as part of an excess insurance policy, and losses from $4,000,000 to $10,000,000 are pooled among members. 51 (Continued) {9} Risk Management, (Continued) The City participates in the pollution legal liability and remediation legal liability insurance which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by City of Rosemead. Coverage is on a claims -made basis. There is a $50,000 deductible. The Authority has a limit of $50,000,000 for the 3 -year period from July 1, 2008 through July 1, 2011. Each.member of the Authority has a $10,000,000 sub -limit during the 3 -year terra of the policy. During the past three fiscal years, none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. As of June 30, 2010 the City had retrospective deposits payable to the Authority in the amount of $719,551. The deposit will be repaid through adjustments to premiums over the next three years. The retrospective deposit payable has been included in noncurrent liabilities on the Statement of Net Assets. (10) Retirement Plans Defined Benefit Pension Plan The City of Rosemead contributes to the California Public Employees Retirement System (PERS), a cost - sharing multiple- employer public employee defined benefit pension plan. PERS provides retirement, disability benefits, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. PERS issues a publicly available financial report that includes financial statements and required supplementary information for the cost sharing plans that are administered by PERS. Copies of PERS' annual financial report may be obtained by writing to 400 "P" Street, Sacramento, California 95814. Contributions and Funding Policy Miscellaneous participants are required to contribute 7% of their annual covered salary. The City is required to contribute at an actuarially determined rate. The rate for the year ended June 30, 2010 is 26.454% percent of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by City Council in conjunction with applicable labor contracts. The City's contributions to the miscellaneous plan for the years ending dune 30, 2008, 2009, and 2010 were $828,584, $1,428,348, and $1,361,873, respectively, and were equal to the required contributions for each year. 52 Notes to the Basic Financial Statements (10) Retirement Plan, (Continued) (Continued) Supplemental Defined Benefit Pension Plan Effective July 1, 2000, the City entered into an agreement with Public Agency Retirement Services (PARS) whereby the City contributes to a supplemental employee pension plan (the plan II), a single - employer defined benefit pension plan administered by Phase 11 Systems. The plan 11 provides a supplemental retirement benefit of 1% for each year of service to plan members and beneficiaries. Employees with at least 10 years of service and City Council members with at least 10 years of service are eligible to participate at age 60 and receive an annual benefit equal to 3% of the highest annual gross pay for each year of service. Benefits are determined using the same method as CaIPERS benefits. PARS issues a publicly available financial report that includes financial statements and required supplementary information for the plan 11. That report may be obtained by writing to PARS, 3961 MacArthur Boulevard, Suite 200, Newport Beach, California, 92660. An actuarial valuation of the City of Rosemead Supplemental Defined Benefit Pension Plan was performed as of July 1, 2008 to determine the funding level requirement of the plan for the current fiscal period. Actuarial valuations are performed once every two years. The employer contribution rate for the plan years 2009 and 2010 was 5.83 %. A summary of principle assumptions and methods used to determine the ARC is shown below. Valuation Date Actuarial Cost Method Amortization Method Asset Valuation Method Actuarial Assumptions: Investment Rate of Return Inflation Rate Retirement Cost of Living Adjustment July 1, 2008 Entry Age Normal Level Dollar Market Value 7.50% for funding purposes 3% For miscellaneous employees and the contract City Attorney: Retirement rate of 20% at ages 60 and older with between 10 and 20 years of service, and retirement rate of 30% at ages 55 and older with more than 20 years of service. For City Council members. Retirement rates of 30% per year. 2% compounded annually Initial unfunded liabilities are amortized over a closed 20 year period from July 1, 2002 with amortization payments increasing 3.25% annually. Payments are assumed to be made throughout the year. 53 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) ( 1 0) Retirement Plan Continued Supplemental Defined Benefit Pension Plan, (Continued) The Schedule of Funding Progress below shows the recent history of the actuarial value of assets, actuarial accrued liability, their relationship, and the relationship of the unfunded actuarial accrued liability to payroll Required Supplementary Information Entry Age Valuation Normal Date Accrued July 1 Liability Actuarial Unfunded Value of Liability (UAL)/ Assets Excess Assets UAL As a Funded Valuation % of Status Payroll Payroll 2004 $2,582,633 828,182 1,754,451 2006 2,973,299 1,438,282 1,535,017 2008 2,242,154 1,910,854 331,300 Three -year trend information: 32.07% 2,037,432 86,11% 48.37% 2,367,310 64.84% 85.22% 3,747,667 8.84% Annual Pension Cost (Employer Contribution) Net Fiscal Years Employer Percentage Pension Ended June 30 Contribution Contributed Obli ac t� ion 2008 $246,265 100% - 2009 74,317 100% - 2010 70,019 100% - 1] _ _ _ Commitments and Contingencies The City is a member of the Los Angeles County Liability Trust Fund (the Trust Fund), which was set up to pay for litigation involving the Los Angeles County Sheriffs' Department within any of the 40 cities that are served by the Los Angeles County Sheriffs' Department. The Trust Fund was and is being funded by the 40 cities based upon each city's allocated surcharge, calculated as a percentage of each city's contribution to the total contracted amount with the County paid to Los Angeles County for the use of its deputies. Based upon the agreement signed by all of the 40 cities at the time the Trust Fund originated, the cities will be jointly liable for any and all claims filed against the Los Angeles County Sheriffs' Department, regardless of the location within the 40 cities. 54 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (11) Commitments and Contingencies, (Continued) In 1998 the County of Los Angeles lost a litigation mailer that resulted in a $25,000,000 judgment against the Los Angeles County Sheriffs' Department, which Los Angeles County has since paid. The City believes its share of this liability is approximately 3 %, or $600,000, which will accrue interest at 4% and be paid by the Trust Fund to Los Angeles County (from amounts on deposit with the Trust Fund) over the next 10 years. No additional liability will be incurred by the City. However, if the City decided to terminate its association with the Trust Fund, it would become immediately liable for its share of the remaining liability. (12) Fund Deficits The following funds had deficit balances as of June 30, 2010: Deficit Fund Fund Name Balance HOME $ 464,042 Federal Highway Grant 72,093 City Capital Projects 343,484 The fund deficits noted above primarily relate to expenditures charged to projects during the fiscal year ended June 30, 2010, which were submitted for reimbursement. (13) Expenditures_ in Excess of Appropriations Expenditures exceeded appropriations in the following funds: Fund Budget Actual Variance General fund $18,058,846 18,092,450 (33,604) RDA Capital Projects 1,558,336 3,140,102 (1,581,766) CDBG 1,557,794 1,570,655 (12,861) State Gas Tax 1,798,665 1,960,655 (161,990) AQMD - 31,129 (31,129) Narcotics Forfeiture - 3,088 (3,088) Measure R - 514 (514) (14) Subsequent Event In July 2010 the Commission issued tax allocation bonds in the amount of $11,230,000. The bonds were issued to provide funds to finance the costs of certain redevelopment projects within the Merged Project Area including infrastructure improvements, and the acquisition of land. Principal and interest payments are due on ,tune 1 and December 1 each year until the bonds mature in 2023. 55 (This page intentionally left blank) 56 i f i Required Supplementary Information 57 CITY OF ROSEMEAD, CALIFORNIA Note to the Required Supplementary Information Fiscal Year Ended June 30, 2010 1 Bud eta Information Annual budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds. All annual appropriations lapse at fiscal year end. On or before the last day in March of each year, all business units and component units of the government submit requests for appropriations to the City Manager so that a budget may be prepared. Before the first Thursday of June, the proposed budget is presented to the City Council for review. The Council holds public hearings and a final budget must be prepared and adopted no later than June 30. The appropriated budget is prepared by fund, and department. The City's Department Heads, with approval of the Finance Director and City Manager, may make transfers of appropriations within a department and between departments within a fund. Transfers of appropriations between funds must be approved by the City Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. The council made several supplemental budgetary appropriations throughout the year. The supplemental budgetary appropriations made in the various governmental funds are detailed in the required supplementary information. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year. 58 Total revenues Expenditures: Current: General government Public safety Public works Community services Community development j Parks and recreation Capital outlay Total expenditures 17,138,973 16,687,873 15,852,368 (835,5Q5} 3,634,583 CITY OF ROSEMEAD 3,612,875 21,708 7,057,772 7,057,772 General Fund (260,265) 2,911,861 2,911,861 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 173,600 Fiscal Year ended June 30, 2010 1 ,090,715 1 ,090,715 966,631 124,084 2,973,104 2,973,104 Variance- 239,219 Budgeted Amounts 217,211 Positive (73,67 Original Final Actual (Negative) Revenues: Taxes: Property taxes $ 7,679,000 7,679,000 7,401,447 (277,553) Business license tax 50,000 50,000 51,768 1,768 Sales and use tax 2,695,000 2,695,000 3,011,781 316,781 Transient occupancy tax 1,490,000 1,490,000 1,129,146 (360,854) Franchise tax 640,000 640,000 562,317 (77,683) ! Real estate transfer tax 106,000 106,000 108,489 2,489 Total taxes 12,660,000 12,660,000 12,264,948 (395,052) Intergovernmental 860,763 860,763 894,325 33,562 Licenses and permits 1,241,000 1,306,000 1,079,429 (226,571) Charges for services 856,900 765,700 708,434 (57,266) Fines and penalties 566,000 546,000 491,574 (54,426) Investment income 388,000 388,000 177,794 (210,206) Other 566,310 161,410 235,864 74,454 Total revenues Expenditures: Current: General government Public safety Public works Community services Community development j Parks and recreation Capital outlay Total expenditures 17,138,973 16,687,873 15,852,368 (835,5Q5} 3,634,583 3,634,583 3,612,875 21,708 7,057,772 7,057,772 7,318,037 (260,265) 2,911,861 2,911,861 2,951,999 (40,138) 173,600 173,600 218,138 (44,538) 1 ,090,715 1 ,090,715 966,631 124,084 2,973,104 2,973,104 2,733,885 239,219 21 7,211 217,211 290,885 (73,67 18,058,846 18,058,846 18,092,450 (33,604) Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Proceeds of capital lease Total other financing sources (uses) Change in fund balances Fund balances at beginning of year Fund balances at end of year (919,873) (1,370,973 ) (2,240,082) (869,109 - 351,600 70,996 (280,604) - - (221,478) (221,478) - - 102,501 102,501 351,600 (47,981 } (399,581) (919,873) (1,019,373) (2,288,063) (1,268,690) 19,242,019 19,242,019 19,242,019 - $ 18,322,146 18,222,646 16,953,956 (1,268,690} M CITY OF ROSEMEAD Low - Moderate Income Housing Set -Aside Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Investment income Total revenues Expenditures: Current: Community development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Change in fund balances Fund balance at beginning of year Fund balance at end of year Variance - Final Positive Budget Actual (Negative) $ - 10,308 10,308 10,308 10,308 354,339 189,359 164,980 354,339 189,359 164,980 354,339 (179,051) 175,288 - 925,481 925,481 (250,000 (250,000) - (250,000) 675,481 925,481 (604,339) 496,430 1,100,769 5,966,004 5,966,004 - $ 5,361,665 6,462,434 1,100,769 W Other Supplementary Information 61 (This page intentionally left blank) 62 NONMAJOR GOVERNMENTAL FUNDS i Traffic Safety Fund — This fund is used to account for the receipt of vehicle code fines which are expended for construction, maintenance of traffic control devices, streets, crossing guard salaries, and equipment and supplies for traffic enforcement and accident prevention. Community Development Block Grant Fund — Accounts for Community Development Block Grants received from the U.S. Department of Housing and urban Development. HOME Program Fund — This fund is used to account for HOME Investment Partnerships Program monies received to create and retain affordable housing. Proposition A Fund — This fund is used to finance public transportation projects. Effective July 1, 1982, this fund accounts for the City's share of additional sales tax collected in the County of Los Angeles as a result of Proposition A. Proposition C — This fund is to be used by the cities for public transit to increase safety and improve road conditions by repairing and maintaining streets heavily used by public transit. Federal Highway Grant Accounts for Federal Highway Grants received from the California Department of Transportation. State Gas Tax Fund — This fund is used to account for monies that are collected by the State under the title of Motor Vehicle Fuel License Tax and represent an additional + or - $A 0 per gallon of gas sold. Air Quality Management District Fund — This fund accounts for the receipt of monies from the Air Quality Maintenance District. These funds shall be used to implement programs to reduce air pollution from mobile sources pursuant to the California Clean Air Act. Local_ Transportation Fund — This fund is used to account for monies made available by the State for mass transit, bike paths, and pedestrian walkways. City policy has been to use this money for construction of sidewalks, pedestrian access to schools, parks or commercial areas. Street Lighting Fund — This fund is used to account for monies collected by ad valorem property tax based on $.2495 per $1000 of assessed property value to provide for energy cost and maintenance of the Rosemead Lighting District, whose boundaries, with the exception of the Southern California Edison company property, coincide with the city's boundaries. Proposition 13 has limited the ad valorem tax that can be collected. Narcotics Seizure Fund — This fund is used to account for funds received from the County of Los Angeles for monies forfeited, and the proceeds from the sale of assets seized from illegal narcotic activities within the City of Rosemead. The forfeited funds must be used by the law enforcement and prosecutorial agencies exclusively to support law enforcement and prosecutorial efforts. Measure R - A county -wide one half percent sales tax to fund transportation projects. Receipts can be used to synchronize traffic signals, repair potholes, keep senior, student and disabled bus fares low and provide community traffic relief. The tax receipts will be used primarily to improve public transit and street maintenance projects. Rosemead Housing Development Corporation — This fund is used to account for the construction, financing and operations of low and moderate income housing. The Corporation is a blended component until of the City of Rosemead. City Capital Projects Fund - To account for the acquisition and construction of major capital facilities 63 CITY OF ROSEMEAD Non -Major Governmental Funds Combining Balance Sheet June 30, 2010 Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities $ - Accrued salaries and benefits - Retentions payable - Due to other funds - Deferred revenue - Total liabilities - Fund balances: Unreserved, reported in: Special revenue funds - Total fund balances (deficit) Total liabilities and 233,887 55,125 26,658 63,725 - 31,182 Special Revenue Funds 25,469 459,708 - - 72,093 - 64 - - - 290,538 516,806 37,503 67,612 72,093 Federal Traffic CDBG HOME Proposition Proposition Highway Safety Grant Grant A C Grant Assets Cash and investments $ - - - 1,169,094 1,858,574 - Receivables: Accounts - 463,881 52,764 - - - Accrued interest - - - - - - Notes - - - - - - Due from other funds - - - - - - Total assets $ - 463,881 52,764 1,169,094 1,858,574 - Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities $ - Accrued salaries and benefits - Retentions payable - Due to other funds - Deferred revenue - Total liabilities - Fund balances: Unreserved, reported in: Special revenue funds - Total fund balances (deficit) Total liabilities and 233,887 55,125 26,658 63,725 - 31,182 1,909 10,845 3,887 - 25,469 459,708 - - 72,093 - 64 - - - 290,538 516,806 37,503 67,612 72,093 173,343 464,042 1,131,591 1,790,962 7( 2,093) 173,343 464,042 1,131,591 1,790,962 7( 2,093) fund balances $ - 463,881 52,764 1,169,094 1,858,574 - 64 152,571 17,513 1,745,129 89,189 47,546 390 58,551 2,634,480 13,777 589,913 1,337,965 - - 390 - - - 58,551 - - - 395,229 395,229 294 365,999 115,173 985,142 9,479,719 - 57,580 - - 36,757 Capital Projects 1,275,233 Special Revenue Funds - 514 Fund 22,092 75,829 Rosemead - - Air Quality 96,421 Housing City State Gas Management Local Street Narcotics Measure Development Capital j Tax District Transportation Lighting Seizure R Corporation Projects Total 1,592,558 71,676 - 2,527,993 294 365,999 101,395 - 7,687,584 152,571 17,513 1,745,129 89,189 47,546 390 58,551 2,634,480 13,777 589,913 1,337,965 - - 390 - - - 58,551 - - - 395,229 395,229 294 365,999 115,173 985,142 9,479,719 - 57,580 - - 36,757 632,818 1,275,233 - - - 514 - 22,092 75,829 - - - - - 96,421 97,666 - - - - - 21,762 579,032 - 58,941 - - - 555,533 614,538 - 115,521 - 514 36,757 1,328,626 2,642,298 - 2,517,959 294 365,485 78,416 (343,484) 6,837,421 - 2,517,959 294 365,485 78,416 (343,484) 6,837,421 - 2,634,480 294 365,999 115,173 985,142 9,479,719 65 CITY OF ROSEMEAD Non -Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Year ended June 30, 2010 Revenues: Intergovernmental Special assessments Investment income Total revenues Expenditures: Current: General government Public safety Public works Community services Community development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Change in fund balances Fund balance (deficit) at beginning of year Fund balance (deficit) at end of year Special Revenue Funds Federal Traffic CDBG HOME Proposition Proposition Highway Safe Grant Grant A C Grant $ - 1,744,197 650,653 740,797 668,931 - 163 748 - 13,599 27,440 - 163 1,744,945 650,653 754,396 696,371 - 1,204,330 - 590,184 686,804 - 366,325 - - - - - 775,652 - - - - 1,570,655 775,652 590,184 686,804 - 163 174,290 124,999 164,212 9,567 - (13,090) - - - (328,722) - 13,090 - - (328,722) - (12,927) 174,290 (124,999) 164,212 (319,155) - 12,927 (947) 339,043 967,379 2,110,117 (72,093) $ - 173,343 464,042 1,131,591 1,790,962 72,093 .. Capital Projects Special Revenue Funds Fund Rosemead Air Quality Housing City State Gas Management Local Street Narcotics Measure Development Capital Tax District Transportation Lighting Seizure R Corporation Projects Total 1,454,190 65,212 16,164 593 1,470,354 65,805 1,960,655 22,130 - 8,999 1,960,655 31,129 263 365,485 (61,767) (343,484) 490,301 34,676 49,621 (252) 2,373,970 - 4,892 233,433 - - - 3,342 364,636 420,006 850,503 6,962,467 - 680,288 - - - - 680,288 30,301 9 1,363 66 - 90,446 - 710,589 3,351 365,999 420,072 850,503 7,733,201 - - - 731,839 - 731,839 566,600 3,088 - - - 569,688 - - 514 - 2,159,830 6,624,447 - - - - - 366,325 - - - - 784,651 252 566,600 3,088 514 731,839 2,159,830 9,076,950 263 365,485 (61,767) (343,484) (698,007) 2,293,535 49,621 (252) 2,373,970 31 - 140,183 - 143,989 263 365,485 (311,767) (1,309,327) (1,343,749) - - 250,000 965,843 1,220,987 - (575,245) (233,433 ) 4,892 252 - - - 250,000 965,843 645,742 (723,734) 39,568 252 143,989 263 365,485 (61,767) (343,484) (698,007) 2,293,535 49,621 (252) 2,373,970 31 - 140,183 - 7,535,428 1,569,801 89,189 - 2,517,959 294 365,485 78,416 (343,484) 6,837,421 67 CITY OF ROSEMEAD Traffic Safety Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Investment income Total revenues Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Change in fund balances Fund balance at beginning of year Fund balance at end of year Variance - Final Positive Budget Actual (Negative) $ - 163 163 163 163 163 (13,090) (13,090) (13,090) (13,090) - (12,927) (12,927) 12,927 12,927 - $ 12,927 - (12,927) .: CITY OF ROSEMEAD Community Development Block Grant Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Public works Community services Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance (deficit) at beginning of year Fund balance at end of year Variance - Final Positive Budget Actual (Ne ative $ 1,942,757 1,744,197 (198,560) 748 748 1,942,757 1,744,945 (197,812) 1,527,109 1,204,330 322,779 30,685 366,325 (335,640) 1,557,794 1,570,655 (12,861) 384,963 174,290 (210,673) (947) {947) - $ 384,016 173,343 {210,673) :• CITY OF ROSEMEAD HOME Program Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Intergovernmental Total revenues Expenditures: Current: Community development Total expenditures Net change in fund balance Fund balance (deficit) at beginning of year Fund balance (deficit) at end of year Variance - Final Positive Bud et Actual (Negative) $ 1,780,921 650,653 (1,130,2 1,780,921 650,653 (1,130,268) 3,071,784 775,652 2,296,132 3,071,784 775,652 2,296,132 (1,290,863) (124,999) 1,165,864 (339,043) (339,043 - $ (1,629,906) 464,042 1,165,864 70 CITY OF ROSEMEAD i Proposition A Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Public works Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Change in fund balances Fund balance at beginning of year Fund balance at end of year Variance - Final Positive Budget_ Actual (Negative) $ 934,121 740,797 (193,324) 10,000 13,599 3,599 944,121 754,396 (189,725) 821,200 590,184 231,016 821,200 590,184 231,016 (821,200) 164,212 41,291 (50,000) - 50,000 (50,000) - 50,000 122,921 164,212 41,291 967,379 967,379 - $ 1,090,300 1,131,591 41,291 71 CITY OF ROSEMEAD Proposition C Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Public works Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balance Fund balance at beginning of year Fund balance at end of year 72 Variance - Final Positive Budget Actual (Negative) $ 762,326 668,931 (93,395) 50,000 27,440 (22,560) 812,326 696,371 (115,955) 983,770 _ 686,804 296,966 983,770 686,804 296,966 (171,444) 9,567 181,011 - 328,722 328,722 (328,72 (328,722) (171,444) (319,155) (147,711) 2,110,117 2,110,117 - $ 1,938,673 1,790,962 (147,711) I' E �, CITY OF ROSEMEAD Federal Highway Grant Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Intergovernmental Total revenues Net change in fund balance Fund balance (deficit) at beginning of year Fund balance (deficit) at end of year Variance - Final Positive Budget Actual (Negative) (72,09 (72,093) - $ 72,093 (72,093) - 73 CITY OF ROSEMEAD State Gas Tax Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Public works Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Change in fund balance Fund balance at beginning of year Fund balance at end of year Variance - Final Positive Budget Actual (Negative) $ 951,500 1,454,190 502,690 - 16,164 16,164 951,500 1,470,354 518,854 1,802,017 1,960,655 (158,638) 1,802,017 1,960,655 158, 638 (850,517) 490,301 360,216 (233,433) (233,433) (233,433) (233,433) (850,517) (723,734) 126,783 2,293,535 2,293,535 - $ 1,443,018 1,569,801 126,783 74 CITY OF ROSEMEAD Air Quality Management District Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Public works Community development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Total Other financing sources (uses) Change in fund balances Fund balance at beginning of year Fund balance at end of year Variance - Final Positive Budget Actual (Negative $ 68,500 65,212 (3,288) 1,000 593 (407) 69,500 65,805 (3,695) - 22,130 (22,130) 8,999 (8,999 31,129 (31,129) 69,500 34,676 (34,824) 4,892 4,892 - 4,892 4,892 69,500 39,568 (29,932) 49,621 49,621 - $ 119,121 89,189 (29, 932) 75 CITY OF ROSEMEAD Local Transportation Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2090 I Variance - Final Positive Budget Actual (Negative) Revenues: Intergovernmental Total revenues - - - Excess (deficiency) of revenues over (under) expenditures - - - Other financing sources (uses): Transfers in - 252 252 Total other financing l sources (uses) - 252 252 Change in fund balances - 252 252 Fund balance (deficit) at beginning of year (252) (252) - Fund balance (deficit) at end of year $ (252) - 252 k.l i F= { I' i I 76 i CITY OF ROSEMEAD Street Lighting Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Special assessments Investment income Total revenues Expenditures: Current: Public safety Total expenditures Change in fund balances Fund balance at beginning of year Fund balance at end of year Variance - Final Positive Budget Actual (Negative $ 687,500 680,288 (7,212) - 30,301 30,301 687,500 710,589 23,089 750,984 566,600 184,384 750,984 566,600 184,384 (63,484) 143,989 207,473 2,373,970 2,373,970 - $ 2,310,486 2,517,959 207,473 77 CITY OF ROSEMEA© Narcotics Forfeiture and Seizure Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Public safety Total expenditures Change in fund balances Fund balance at beginning of year Fund balance at end of year Variance - Final Positive Budget_ Actual (Negative) $ - 3,342 (3,342) 50 9 41 50 3,351 (3,3� - 3,088 (3,088} 3,088 (3,088 50 263 (6,471) 31 31 - $ 81 294 (6,471 78 CITY OF ROSEMEAD Measure R Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 i Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Public works Total expenditures I I Change in fund balance -1 Fund balance at beginning of year Fund balance at end of year Variance- Final Positive Budget Actual (Negative) $ 295,727 364,636 68,909 - 1,363 1,363 295,727 365,999 70,272 514 (514) - 514 (514) 295,727 365,485 69,758 $ 295,727 365,485 69,758 79 CITY OF ROSEMEAD Rosemead Housing Development Corporation Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Intergovernmental investment income Total revenues Expenditures: Current: General government Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Total other financing sources (uses) Change in fund balances Fund balance at beginning of year Fund balance (deficit) at end of year Variance - Final Positive Budget Actual SNegative) $ 422,300 420,006 (2,294) - 66 66 422,300 420,072 (2,228} 761,200 731,839 29,361 761,200 731,839 29,361 (338,900) (311,767) 27,133 - 250,000 250,000 250,000 250,000 (338,900) (61,767) 250,000 140,183 140,183 - $ (198,717) 78,416 250,000 :C CITY OF ROSEMEAD City Capital Projects Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Intergovernmental Total revenues Expenditures: Current: Public Works Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Total other financing sources (uses) Change in fund balances Fund balance at beginning of year Fund balance (deficit) at end of year Variance - Final Positive Budget Actual (Negative) $ - 850,503 - - 850,503 - 6,977,805 2,159,830 4,817,975 6,977,805 2,159,830 4,817,975 (6,977,805) (1,309,327) 5,668,478 965,843 965,843 - 965,843 965,843 (6,977,805) (343,484) 6,634,321 $ (6,977,805) (343,484) 6,634,321 81 CITY OF ROSEMEAD Redevelopment Agency Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Variance - Final Positive Budget Actual (Negative) Revenues: Taxes $ 7,103,000 6,243,948 (859,052) Investment income 37,000 67,878 30,878 Total revenues 7,140,000 6,311, 826 (828,174) Expenditures: Current: General government 498,000 106,884 391,116 Public safety 1,021,000 975,509 45,491 Debt service: Principal 945,000 945,000 - Interest and fiscal charges 1,501,667 1,501,667 - Total expenditures 3,965,667 3,529,060 436,607 Excess (deficiency) of revenues over (under) expenditures 3,174,333 2,782,766 (391,567) Other financing sources (uses); Transfers out - (2,782,766) (2,782,766) Total other financing sources (uses) - (2,782,766) 2,782,766 Net change in fund balance 3,174,333 - (3,174,333) Fund balance at beginning of year 2,803,910 2,803,910 - Fund balance at end of year $ 5,978,243 2,803,910 (3,174,333) 82 CITY OF ROSEMEAD Redevelopment Agency Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2010 Revenues: Investment income Other Total revenues Expenditures: Current: General government Public works Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance at beginning of year Fund balance at end of year Variance - Final Positive Budget Actual Ne ative $ - 42,884 42,884 - 18,746 18,746 - 61,630 61,630 1,361,576 1,452,328 (90,752) 196,760 1,687,774 (1,491,014 1,558,336 3,140,102 (1,581,7 (1,558,336} 3,078,472 (1,520,13 - 1,916,090 1,916,090 (304,065 _ (304,065) 1,612,025 1,612,025 (1,558,336) (1,466,447) 91,889 4,468,293 4,468,293 - $ 2,909,957 3,001,846 91,889 83 (This page intentionally left blank) 84 INTERNAL. SERVICE FUNDS The internal service funds are used to account for goods and services provided by one City department to other City departments on a cost reimbursements basis. The City of Rosemead has the following Internal Service Funds: Vehicle Replacement — To account for the accumulation and allocation of costs associated with the repair and maintenance of City owned vehicles. Technology Replacement — To account for the accumulation and allocation of costs associated with the repair and maintenance of the City's technological equipment. 85 CITY OF ROSEMEAD Combining Statement of Net Assets Internal Service Funds . June 30, 2010 -" Vehicle Technology Assets Replacement Replacement Current assets: Cash and investments $ 43,766 26,469 Total assets 43,766 26,469 Liabilities Current liabilities: Accounts payable - 2,299 Total liabilities - 2,299 Net assets Unrestricted 43,766 24,170 Total net assets $ 43,766 24,170 -" CITY OF ROSEMEAD Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Internal Service Funds Year ended June 30, 2010 87 Vehicle Technology Replacement Replacement Total Operating expenses: Contract services $ 48,038 24,020 72,058 Total operating expenses 48,038 24,020 72,058 Changes in net assets (48,038) (24,020) (72,058) Net assets at beginning of year 91,804 48,190 139,994 Net assets at end of year $ 43,766 24,170 67,936 87 CITY OF ROSEMEAD Combining Statement of Cash Flows - Internal Service Funds Year ended June 30, 2010 Net cash provided by (used for) Vehicle Technology investing activities Replacement Replacement Total Cash flows from operating activities: Cash received from user departments $ 43,766 28,768 72,534 Cash payments to suppliers for goods and services - (2,29 (2,299) Net cash provided by (used for) $ 43,766 26,469 70,235 operating activities $ 43,766 26,469 70,235 Net cash provided by (used for) noncapital financing activities - - - Net cash proved by (used for) capital $ (48,038 (24,020) (72,058) and related financing activities - - - Net cash provided by (used for) investing activities - - - Net increase (decrease) in cash and cash equivalents 43,766 26,469 70,235 Cash and cash equivalents at beginning of year - - - Cash and cash equivalents at end of year $ 43,766 26,469 70,235 Reconciliation of operating income to net cash provided by (used for) operating activities: Operating income (loss) $ (48,038 (24,020) (72,058) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Increase (decrease) in accounts payable - 2,299 2,299 (Increase) decrease in due from other funds 91,804 48,190 139,994 Total adjustments 91,804 50,489 142,293 Net cash provided by operating activities $ 43,766 26,469 70,235 :: CITY OF ROSEMEAD Agency Fund Statement of Changes in Assets and Liabilities Fiscal Year ended June 30, 2010 Balance at Balance at June 30, 2009 Additions Deletions June 30, 2010 Total assets Liabilities Deposits payable Total liabilities $ 360,557 448,920 330,397 479,080 $ 360,557 448,920 (330,397) 479,080 $ 360,557 448,920 (330,397) 479,080 $ 360,557 448,920 (330,397) 479,080 ; This part of the City of Rosemead's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial heath. Contents Page Financial Trends 92 These schedules contain trend information to help the reader understand how the government's financial performance and well -being have changed over time. Revenue Capacity 96 These schedules contain trend information to help the reader asses the government's most significant local revenue source, the property tax. Debt Capacity 100 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 105 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 107 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. M (This page intentionally left blank) CITY OF ROSEMEAD Net Assets by Component Last Seven Fiscal Years (accrual basis of accounting) The City of Rosemead implemented GASB 34 for the fiscal year ended June 30. 2004. Information prior to the implementation of GASB 34 is not available. 92 Fiscal Year 2004 W 2005 2006 2007 2008 2009 2010 Governmental activities; Invested in capital assets, net of related debt $ €0,439,445 12,130,249 13,345,433 10,541,606 12,981,537 11,828,993 12,712,242 Restricted 6,526,788 6,035,250 6,90 €,454 8,181,231 11,443,583 13,361,249 13,199,438 Unrestricted 26,498,620 31,114,414 30,299,115 35,293,732 27,705,715 24,882,730 21,910,910 Total governmental activities net assets $ 43,464,853 49,279,9€3 50,546,002 54,016,569 52,130,835 50,072,972 47,822,590 The City of Rosemead implemented GASB 34 for the fiscal year ended June 30. 2004. Information prior to the implementation of GASB 34 is not available. 92 CITY OF ROSEMEAD Changes in Net Assets Last Seven Fiscal Years (accrual basis of accounting) Fiscal Year 2004 2005 2006 2007 2008 2009 2010 Expenses: Governmental activities: General government $ 4,803,476 3 4,800,168 5,629,316 4,980,519 7,259,587 12,176,877 5,991,796 Public safety 5,797,080 6,058,824 6,065,066 6,618,779 8,043,771 9,081,719 8,879,854 Public works 2,058,252 3,252,252 3,403,699 6,120,563 13,550,042 6,465,355 11,469,614 Public health 65,583 60,828 51,286 - - - - Community services 3,121,996 2,862,328 3,223,843 602,114 669,827 773,374 589,650 Community development - - _ 2,467,842 3,645,207 1,290,108 2,141,218 Parks and recreation 3,201,236 3,456,308 3,959,590 4,178,000 4,078,631 2,030,696 2,733,885 Interest expense 1,854,185 1,830,836 1,832,219 2,698,372 1,790,348 1,523,391 1,491,717 Total governmental activities expanses 20,901,808 22 321,544 24,165,019 27,666,189 39,037,413 33,341,522 33,297,734 Program revenues: Governmental activities: Charges for services: General government 7,026282 6,299,415 3,288,225 316,849 642,716 547,577 5,573,695 Public safety 726,345 984,965 900,359 1,598,159 1,547,182 1,512,475 1,293,677 Public works 3,091,146 3,760,495 4,144,733 7,600,778 11,729,725 7,581,801 8,052,011 Public health - - - - - " Community services 1,691,586 1,211,615 814,754 1,403,059 166,118 858,809 386,283 Community development - - - 3,206,303 1,484,065 621,375 597,402 Parks and recreation 287,137 266,398 337,815 - 36,800 36,000 20,800 Total governmental activities program revenues 12,822,496 12,522,888 9,485,886 14,125,148 15,606,606 11,158,037 11,723,868 Net revenues (expenses): Governmental activities Total net revenues (expenses) (8,079,312) (9,798,656 (14,679,133 (13,541,041 (23,430,8 (22,183,485) (21,573,866) General revenues and other changes in net assets: Governmental activities: Taxes: Property taxes 3,941,383 4,077,332 3,915,980 9,121,682 13,181,837 12288,177 12,328,634 Sales and use taxes 2,865,887 3,548,657 3,525,557 2,501,106 3,747,416 4,589,998 4,408,367 Transient occupancy taxes 1,081,174 1,102,756 1,207,298 1,311,697 1,411,421 1,272,092 1,129,146 Othertaxes 149,737 765,215 1,076,806 713,821 949,007 761,410 562,317 Intergovernmental / in -lieu VLF - 3,165,148 2,966,002 - - - Investmentincome 187,278 1,260,095 1,930,059 2,028,128 1,678,791 884,847 389,310 Motor vehicle in -lieu, unrestricted - 1,716,656 1,290,667 856,701 254,527 195,273 169,042 Other general revenues 7,857 32,853 478,473 143,748 133,825 336,668 Total governmental activities _ 8, 225,459 15,613,716 15,945,222 17,011,608 2€,366,747 20, €25,622 19,323,484 Changes in net assets Governmental activities Total primary government $ 146,147 $ 5,815,060 $ 1,266,089 $ 3,470,567 $ (2,064,060) $ (2,057,863} $ (2,250,382) The City of Rosemead implemented GASB 34 for the fiscal year ended June 30, 2004. Information prior to the implementation ofGASB 34 is not available. 93 CITY OF ROSEMEAD Fund Balances of Governmental Funds Last Seven Fiscal Years (modified accrual basis of accounting) The City of Rosemead has elected to show onty six years of data for this schedule. 94 2004 2005 2006 2007 2008 2009 2010 General fund: Reserved $ 353,616 1,719,044 256,765 150,000 3,074,496 3,106,917 3,327,182 Unreserved 20,053,506 19,896,581 22,228,341 22,460,545 18,633,154 16,135,102 13,626,774 Total general fund $20,407,122 21,615,625 22,485,106 22,610,545 21,707,650 !9,242,019 16,953,956 All other governmental funds: Reserved $ 3,195,415 - 7,693,216 4,947,087 9,000,561 9,000,561 8,944,112 Unreserved, reported in: Special revenue funds 5,653,208 7,336,247 6,821,660 6,142,833 6,140,289 9,023,487 8,763,359 Debt service funds 32,835 - 2,354,835 - 552 692 475 2,803,910 2,803,910 Capital projects funds 6,264,457 8,433, 6,435,798 7,397,454 2,490,553 (54,323) (1,405,770) Total all other governmental funds $ 15,145,915 18,124,924 20,950,674 18,487,926 18,323,878 20,773,635 19,105,611 The City of Rosemead has elected to show onty six years of data for this schedule. 94 CITY OF ROSEMEAD Changes in Fund Balances of Governmental Funds Last Seven Fiscal Years (modified accrual basis of accounting) 3 Fiscal Year 2004 2005 2006 2007 2008 2009 2010 Revenues: Taxes $ 9,041,026 $ 9,189,326 $ 9,527,384 $13,648,306 $17,841,792 $17,153,625 $18,508,896 Intergovernmental 8,826,909 14,379,314 10,785,591 9,419,698 15,716,610 10,992,235 7,856,792 Licenses and permits 1,508,009 1,595,115 1,528,864 1,683,204 1,503,659 1,178,362 1,079,429 Charges for services 581,848 550,478 660,890 414,375 537,430 638,244 708,434 -; Fines, forfeitures and penalties 589,890 857,135 753,224 437,117 641,566 565,643 491,574 ` Special assessments - - - 789,089 687,568 736,213 680,288 Investment income 1,372,591 1,260,286 1,947,566 2,028,128 1,678,791 884,847 389,310 Other 37 _ 30,316 29,332 478,473 141,930 381,429 254,610 3 Total revenues 21,920,310 27,861,970 25,232,851 28,898,390 38,749,346 32,530,598 29,969,333 Expenditures Current: General government 2,965,572 3,023,192 3,790,631 4,780,837 7,356,665 11,956,179 5,903,926 Public safety 5,797,080 6,087,918 6,536,043 6,737,912 8,043,771 9,114,009 8,863,234 Public works 3,144,358 5,208,142 6,064,980 8,898,768 12,116,508 4,964,867 11,264,220 Community services 65,583 60,828 51,286 1,419,424 669,827 783,452 584,463 Community development 3,259,505 3,424,954 3,216,935 2,690,420 3,408,691 1,047,529 1,940,641 Parks and recreation 3,201,236 3,383,358 3,881,469 4,249,462 4,078,631 2,030,698 2,733,885 Capital outlay 26,639 184,301 149,64E - 1,647,673 202,752 290,885 Debt service: - Principal 445,000 465,000 490,000 780,000 1,105,000 915,000 945,000 Interest and fiscal charges 1,859,747 1,836,765 1,559,114 2,512,725 1,567,849 1,531,986 1,501,667 Payment to bond escrow agent - - 550,323 1,323,238 - - - Total expenditures 20,764,720 23,674,458 26,290,422 33,392,786 39,994,615 32,546,472 34,027,921 -.... Excess (deficiency) of revenues over (under) expenditures 1,155,590 4 187 512 1 057 571 4 494 396 1 245 269 15 874 ( 4,058,588 Other financing sources (uses): Transfers in 3,905,993 4,941,103 13,300,319 26,183,078 2,962,087 4,078,483 4,133,554 Transfers out (3,905,993) (4,941,103) (13,300,319) (26,183,078) (2,962,087) (4,078,483) (4,133,554) Proceeds of bonds 14,005,000 24,230,000 - Premium on debt issued 316,830 - - Payment to bond escrow agent (9,569,028) (22,075,305) - Proceeds of capital lease 102,501 Total other financing sources (uses) - 4,752,802 2,154,695 102,501 Net change in fund balances S 1,155,590 4,187,512 3,695,231 (2,339,701 1,245,269 {15,874 (3,956,087 Debt service as a percentage of noncapital expenditures 11,1% 9.8% 9.9% 16.6% 7.0% 7.6% 7.7% The City of Rosemead has elected to show only six years of dala for this schedule. 95 CITY OF ROSEMEAD Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (in thousands of dollars) Beginning with the fiscal year ended June 30, 2002, exemptions are netted directly against the individual property categories. NOTE: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2 %). With few exceptions, property is only re- assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Source: HDL Coren & Cone and Los Angeles County Assessor's Office 96 ci Fiscal Year Taxable Ended SBE Assessed Total Direct June 30 Secured Unsecured Non-Unita Value Tax Rate 2001 1,801,399,282 48,058,831 664,802 1,850,122,915 20.30% 2002 1,894,448,049 49,217,140 1,632,754 1,945,297,943 21.07% 2003 2,017,936,508 50,453,472 2,601,128 2,070,991,108 20.82% 2004 2,168,666,818 52,904,496 19,367,174 2,240,938,488 21.36% 2005 2,345,083,686 57,368,008 20,426,612 2,422,878,306 22.57% 2006 2,561,631,859 64,776,971 18,555,208 2,644,964,038 21.89% 2007 2,826,876,615 55,851,646 19,173,832 2,901,902,093 23.35% 2008 3,085,354,513 61,564,235 18,883,761 3,165,802,509 24.57% 2009 3,277,256,282 66,506,103 18,883,761 3,362,646,146 25.29% 2010 3,333,876,047 62,148,114 3,307,527 3,399,331,688 22.27% Beginning with the fiscal year ended June 30, 2002, exemptions are netted directly against the individual property categories. NOTE: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2 %). With few exceptions, property is only re- assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Source: HDL Coren & Cone and Los Angeles County Assessor's Office 96 CITY OF ROSEMEAD Direct and Overlapping Property Tax Rates (Rate per $100 of Taxable Value) Last Ten Fiscal Years u 2000101 2001/02 2002103 2003104 2004105 2005106 2006107 2007108 2006109 2009110 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00001) 1.00000 1,00000 0 1.00000 0.00131 0,00113 0.00103 0.00099 0.00092 0.00080 0.00066 0.00000 0.00000 # 0.00000 0,04196 0.05196 0.06592 0.05072 0.07246 0.08056 0.06402 0.08067 0.09044 ff 0.11907 0.00000 0.00000 0.00000 0.03573 0.03928 0.05425 0.05846 0.02820 0.05159 # 0.09654 0.00000 0.03118 0.05286 0,02471 0.02319 0.05221 0,05075 0.05061 0.06835 # 0.07836 0.00000 0.01600 0.01460 0.01986 0.01810 0.01430 0.02146 0.00878 0.02212 9 0.02311 0.00155 0,00107 0.00088 0.00047 0.00024 0.00005 0.00005 0 -00000 0.00000 9 0,00000 0.00880 0.00770 0.00670 0.00610 0.00580 0.00520 0.00470 000450 0.00430 ff 000430 0.03423 0.04369 0.03983 0.04076 0.04172 0.07053 0.06731 0.06681 0.08065 d 009671 0.00000 0.00000 0.00000 0,00681 0.00879 0.00410 0.02080 0.01972 0 -01741 9 0.02300 0.00000 0.00000 0.00000 0.00000 0.02170 0.01802 0.01469 0.01370 0 -02320 9 0.02714 0.00000 0.08858 0,00540 0.04517 0.07095 0,07515 0.05420 0,08282 0.06875 9 0.11358 0.00000 0,0000D 0.05803 0.05224 0.05729 0.05284 0.04930 0.05742 0.09294 9 0.10071 0.00225 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 8 0.00000 0.02176 0.02400 0.02400 0,02200 0.02000 0.02000 0.02000 0.02000 0.01800 0.01800 1.11186 1.26531 1.26925 1.30556 1.38044 1,44801 1.42640 1.43323 1.53775 0 1,70054 Agency Basic Levy County Detention Facilities 1987 Debts El Monte School Districts El Monte Union High School Garvey School Districts Los Angeles Community College L.A. Co. Flood Control Bonds Metropolitan Water District Montebello Unified School District Pasadena Area Community College Rio Honda Community College Rosemead School Districts San Gabriel Unified School District San Gabriel Valley Mwd Bonds San Gabriel Vly Mwd State Water Bond Total Direct & Overlappirtg Tax Rates City's Share of 1% Levy Per Prop 13 3 0.09276 0.09388 0.09388 0.09388 0.09388 0,09388 0.09388 0.09388 0.09388 9 0.09368 General Obligation Debt Rate Redevelo pment Rate 1.01167 1.00990 1.00861 1.00755 1.00697 1,00604 1 -00541 1.00450 100430 9 100430 Total Direct Rate 5 0.17509 0.17800 0.18152 0.18513 019461 0.20733 0.20556 0.21850 022614 4 0.22270 Notes: 'In 1978, California voters passed Proposition 13 which set the property tax rate at a 1,00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within, In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 1 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. 3 City's share of 1 % Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures. ° RDA rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. s Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information. We arrive at this percentage by dividing the City's revenue by total net taxable assessed value. Source: L.A. County Assessor 2000101 - 2009110 Tax Rate Table and FIDL Coren & Cone 97 CITY OF ROSEMEAD Principal Property Tax Payers Current Year and Nine Years Ago 2009110 2000101 Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Rosemead Place, LLC $ 45,110,229 1 1.33% Walmart Real Estate Business Trust 36,002,085 2 1.06% Rosemead Hwang, LLC 32,202,355 3 095% AFG Investment Fund 5 LLC 23,929,197 4 0.70% Metodo Investments, LLC 19,438,568 5 0.57% 420 Boyd Street LLC 18,461,000 6 0.54% Macy's California Inc. 16,374,428 7 0.48% Potters Avenue 13,417,592 8 0.39% Panda Restaurant Group, Inc. 12,874,832 9 0.38% Sunshine Inn 10,469,716 10 0.31% 6,919,448 7 0.37% Aespace America, Inc. 32,089,836 1 1.73% General Electric Credit Auto Auctions 14,964,078 2 0.81% May Department Stores Company 14,856,152 3 0.80% California Federal Savings and Loan Assoc 9,299,434 4 0.50% Chicago Title Insurance Company 8,330,000 5 0.45% Builder Square LLC 7,252,770 6 0.39% Tony & Helen Hua Trust 6,719,000 8 0.36% Procolor, Inc. 6,632,685 9 0.36% BHC Alhambra Hospital, Inc. 5,457,185 10 0.29% Source: Hdl Coren & Cone, Los Angeles County Assessor 2009110 Combined Tax Rolls. 98 CITY OF ROSEMEAD Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date E� Year Ended for the Percent Subsequent Percent June 30 Fiscal Year Amount of Levy Years Amount of Levy 2001 1,059,067 1,059,033 100.00% - 1,059,033 100.00% ** 2002 1,111,483 1,111,453 100.00% - 1,111,453 100.00% ** 2003 1,181,683 1,161,629 98.30% - 1,161,629 98.30% 2004 1,262,684 1,262,622 100.00% - 1,262,622 100.00% ** 2005 1,364,266 1,203,406 88.21% - 1,203,406 88.21% 2006 2,054,921 2,054,859 100.00% - 2,054,859 100.00% 2007 2,269,752 2,147,626 94.62% - 2,147,626 94.62% - 2008 2,442,009 2,406,199 98.53% - 2,406,199 98.53% 2009 2,569,429 2,435,807 94.80% - 2,435,807 94.80% 2010 2,609,456 1,898,973 72.77% - 1,898,973 72.77% * Information not available. * * Note: For these years the information was not available so an estimate was made to reduce the total collections to date to 100 %. Source: HDL Coren & Cone and Los Angeles County Auditor Controller's Office .. CITY OF ROSEMEAD Ratios of Outstanding Debt by Type Last Ten Fiscal Years Fiscal Year 1999100 2000/01 2001/02 2002/03 2003104 2004105 2005/06 2006/07 2007108 2008109 2009110 Tax Allocation Bonds $ 34,970,000 34,625,000 34,255,000 33,830,000 33,385,000 32,920,000 37,100,000 37,455,000 36,350,000 35,435,000 34,490,000 Percentage of Personal Income 2.31% 2,14% 2.10% 2.00% 1.93% 1,65% 7.70% 7.30% 6.74% 6.41% 6.26% Debt Per Capita 617 604 619 612 595 580 649 655 633 617 599 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. These ratios are calculated using personal income and population for the prior calendar yeas 100 CITY OF ROSEMEAD Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands, except Per Capita) Tax Allocation Fiscal Year Bonds 2000101 2001102 2002103 2003104 2004105 2005106 2006107 2007108 2008109 2009110 Percent of Assessed -- - 1 1.87% 1.76% 1,63% 1.49% 1.36% 1.40% 1.29% 1.15% 1.05% 1.01% Per Capita 604 619 612 595 580 649 655 633 617 599 34,625 34,255 33,830 33,385 32,920 37,100 37,455 36,350 35,435 34,490 General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). Assessed value has been used because the actual value of taxable property is not readily available in the State of California. IQ CITY OF ROSEMEAD Direct and Overlapping Governmental Activities Debt June 30, 2010 Percentage Gross Bonded Applicable Net Bonded Debt Balance To City Debt Overlapping Debt 'Metropolitan Water District $ 121,475,156 0.326% 396,521 Garvey School District DS 2000 Series A 6,504,903 51.649% 3,359,677 Garvey School District DS 2000 Series B 6,294,519 51.648% 3,251,017 Garvey School District 2004 Series 2005 8,653,736 51.648% 4,469,514 Garvey Sch DS 2004 Set 2006 10,795,178 51.648% 5,575,534 Garvey Sch DS 2004 Ser C 8,997,964 51.648% 4,647,302 Rosemead Sch Dist DS 2000 Ser A 6,595,000 68.637% 4,526,586 Rosemead Sch Dist DS 2000 Ser B 9,150,000 68.637% 6,280,252 Rosemead Sch DS 2000 Ser C 6,775,000 68.637% 4,650,132 Rosemead SD DS 2007 Ref. Bonds 5,000,000 68.637% 3,431,832 Rosemead School DS 2008 Series A 9,000,000 68.637% 6,177,297 El Monte Union HS Dist 2002 Series A 3,670,000 14.150% 519,289 El Monte Union HS Dist Series B 5,585,000 14.150% 790,252 El Monte Un HSD DS 2006 Ref Bds 37,343,698 14.150% 5,283,966 El Monte Un I-Ii DS 2002 Ser C 29,490,000 14.150% 4,172,703 El Monte Union High DS 2008 Ser A 54,001,305 14.150% 7,640,943 L.A. CCD DS 2001 Ser A 19,835,000 0.315% 62,564 L.A. CCD DS 2003 Ser B 74,435,000 0.315% 234,783 L.A. CCD DS 2003 Taxable Ser 2004B 20,705,000 0.315% 65,308 L.A. CCD DS 2001 Taxable Ser 2004A 74,940,000 0.315% 236,376 LACC DS Ref 2001 Series 2005 A 431,720,000 0.315% 1,361,734 LA CCD DS 2001 2006 Series B 382,990,000 0315% 1,208,030 LA CCD DS 2003, 2006 Series C 300,625,000 0.315% 948,233 LACC DS 2001, 2008 Ser F, -1 276,500,000 0.315% 872,138 LACC DS 2001, 2008 Taxable Ser E -2 5,250,000 0.315% 16,560 LACC DS 2003, 2008 Ser F -1 344,915,000 0.315% 1,087,933 LACC DS 2003, 2008 Taxable Ser F -2 8,600,000 0.315% 27,126 LACC DS 2008, 2009 Taxable Ser A 350,000,000 0.315% 1,103,972 LACC DS 2008, 2009 Taxable Ser B 75,000,000 0.315% 236,566 Pasadena Area CCD DS 2002 Series A 2,835,000 2.642% 74,914 Pasadena CCD DS 2006 Series S 50,590,000 2.642% 1,336,833 Pasadena CCD DS 2006 Ref BD Series C 16,337,379 2.642% 431,713 Pasadena CCD DS 2002, 2006 Ser D 52,000,000 2.642% 1,374,092 Montebello Unif DS 1998 Series 98 12,439,696 1387°/9 172,515 Montebello Unif SD DS 98 Series 99 11,872,854 1,387% 164,654 Montebello USD DS 1998 Series 2001 12,847,827 1,387% 178,175 Montebello Unified DS 1998 Series 2002 12,659,966 1.387% 175,570 Montebello Unif DS 2004 Ser 2005 26,810,000 1.387% 371,805 Montebello Unified DS 2004 Ser 2009 33,000,000 1,387% 457,648 San Gabriel USD DS 2002 Series A 10,667,600 1.434% 152,931 San Gabriel USD DS 2002 Series B 6,683,892 1.434% 95,821 -- San Gabriel USD DS 2005 Ref Bonds 17,205,000 1.434% 246,652 San Gabriel USD DS 2002 Series 2007 C 10,807,878 1.434% 154,942 San Gabriel USD DS 2008 Ser A 19 1.434% 296 sotal'Q�erlapp>ngDeb; 2009110 Assessed Valuation: $2,815,313,666 After Deducting $584,018,022 Redevelopment Increment Debt to Assessed Valutation Ratios: Direct Debt 0.00°/9 Overlapping Debt 2.78% `. Total Debt 2,78 ° /9 ` * This fund is a portion of a larger agency, and is repsonsible for debt in areas outside the city. This report reflects debt which is being repaid through voter- approved property tax indebtedness. It excludes mortgage revenue, tax allocation bonds, interim financing obligations, non - bonded capital lease obligations, and ;.:.. certificates of participation, unless provided by the city. Source: Hdl Caren & Cone, L.A. County Assessor and Auditor Combined 2009110 Lien Date Tax Rolls. i 102 l d f o _ O I 0 O 0 O 0 0 0 0 0 O 0 O 0 a ILI 0 0 0 0 � o vii ry vi! M O 1 � O r bJ1 ° w � v 43 ' — B a ,n ° d o � a ? p O m o N a 2 m to � 4 V n d Vt M Vt r�1 M Ol D — O+ v V O b D O O_ U O m N 103 M rn o n o V V1 N �O — Vi ol V1 0o rl O i� n O n D oo � d r r Cl N r m o M a fN 00 rn of O h N N vt �1 ! N m N M O N O rn N n O p N w a b o M O n Ni O V —i V v o d n i P NI h "i rn n" 0 0o r m d ri ci o o o ry � o m rn C� N N 00 o N o M M O M M M M m cl� N P O O V �D oo W N 00 o n o� r r o ^ N N rn r m �n O Q r S� M1 o N n O V1 n n N o �_ O V N N C') N d � oo d n n vl N I C�`E n v1 O O o N" 1=5 a rn" o _ O I 0 O 0 O 0 0 0 0 0 O 0 O 0 a ILI 0 0 u U � N O O 1 � O r bJ1 ° w � v 43 ' — B a ,n ° d o � a ? p O .o P o N a 2 m to � 4 V n a e o C a m 103 u U � N O 1 � O r bJ1 ° w � v m a O o � a O u G 4 V CITY OF ROSEMEAD Pledged - Revenue Coverage Last Ten Fiscal Years (In Thousands) Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30 Increment Principal Interest Coverage 2001 2,945,877 345,000 1,932,853 1.29 2002 3,197,754 370,000 1,912,843 1.40 2003 3,105,416 425,000 1,891,273 1.34 2004 3,376,579 445,000 1,870,873 1.46 2005 3,494,330 465,000 1,836,765 1.52 2006 3,310,295 490,000 1,559,114 1.62 2007 4,029,714 780,000 1,505,781 1.76 2008 6,219,884 1,105,000 1,567,849 2.33 2009 5,649,896 915,000 1,531,987 2.31 2010 6,243,948 945,000 1,501,667 2.55 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses. UUM CITY OF ROSEMEAD Demographic and Economic Statistics Last Ten Calendar Years Per Personal Capita Unemployment Fiscal Population Income Personal Rate Year (1) (in thousands) (2 Income (2) (3) 2000101 55,351 1,634,072 29,522 5.90% 2001102 55,289 1,692,452 30,611 6.10% 2002103 56,065 1,727,026 30,804 6.80% 2003104 56,710 1,991,372 35,115 6.00% 2004105 57,189 482,011 36,746 4.50% 2005106 57,144 513,123 39,011 4.60% 2006107 57,427 539,163 41,875 4.90% 2007108 57,422 552,450 42,916 4.47% 2008109 57,594 551,271 42,818 11.10% 2009110 57,756 NIA NIA 11.00% Sources: (1) California State Department of Finance (2) U.S. Department of Commerce - Bureau of Economic Analysis (3) State of California Employment Development Department (data shown is for the County) 105 CITY OF ROSEMEAD Principal Employers Current Year and Nine Years Ago I Based upon Employment Development Department's estimate of 22,200 residents employed in 2009 -10 * Information for 2001 is not available, Source: City of Rosemead and Rosemead Chamber of Commerce M 2010 2001 * Percent of Percent of Number of Total Number of Total Employer Employees Employment' Employees Employment Southern California Edison 1 4,000 18.02% - 0.00% Garvey School District 2 953 4.29% - 0.00% Wal -Mart 3 420 1.89% - 0.00% Panda Restaurant Group, Inc. 4 400 1.80% - 0.00% Rosemead School District 5 337 1.52% - 0.00% Target 6 200 0.90% - 0.00% Hemetic Seal Corporation 7 130 0.59% - 0.00% Don Bosco Tech 8 90 0.41% - 0.00% Double Tree 9 90 0.41% - 0.00% Marge Carson, Inc. 10 80 0.36% - 0.00% I Based upon Employment Development Department's estimate of 22,200 residents employed in 2009 -10 * Information for 2001 is not available, Source: City of Rosemead and Rosemead Chamber of Commerce M CITY OF ROSEMEAD Full -time and Part -time City Employees by Function Last Ten Fiscal Years Parks and recreation 101 107 Full -Time and Part -time Employees as of June 30 97 94 Function 200 2002 2003 2004 2005 2006 2007 2008 2009 2010 150 151 General government 16 19 16 14 15 18 17 19 16 22 Public safety 19 16 23 22 17 23 22 34 39 42 Community development 12 6 5 6 6 6 11 23 18 23 Parks and recreation 101 107 117 97 94 103 101 10-3 1.) 5 112 Total 148 148 161 139 132 150 151 179 208 199 The City of Rosemead contracts with the Los Angeles County Sheriffs Department for all police services with the exception of parking control and crossing guards which are provided by City personnel. The City of Rosemead is part of the Los Angeles County Fire Protection District which provides fire fighting, fire prevention, and plan check services for the City. Source: City Finance Department 107 CITY OF ROSEMCEAD Operating Indicators by Function Last Ten Fiscal Years Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Police: Arrests 1,310 1,299 1,102 1,081 1,230 1,315 1,786 1,506 1,478 1,733 Parking citations issued n/a n/a n/a 14,676 18,357 15,176 13,210 11,766 10,517 8,450 Fire: Number of emergency calls 2,634 2,809 2,728 2,733 2,800 2,868 2,994 3,094 1,834 2,574 Inspections 117 117 117 117 117 117 117 2,518 2,093 3,137 Public works: Street resurfacing (miles) - 1.7 - 13 - 1.3 2.5 1.1 2.8 3.5 i Parks and recreation: Number of recreation classes 400 400 420 450 530 720 775 484 397 727 Number of facility rentals n/a n/a n/a n/a n/a n/a n/a 540 453 236 z ' I Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Public Safety: Sheriff stations 1 1 1 1 1 1 1 1 1 1 Fire: Fire stations 2 2 2 2 2 2 2 2 2 2 f - i Public works: 4 Streets (miles) 76.80 76.80 76.80 76,80 76.80 76.80 76.80 77.55 77.55 77.55 Streetlights 2,571 2,506 2.700 2,700 2,702 2,705 2,706 2,712 2,712 2,712 "Traffic signals 39 39 39 39 39 39 41 42 42 42 Parks and recreation: Parks 10 10 10 10 10 10 10 10 10 10 Community centers 2 2 2 2 2 2 2 2 2 2 Source: City of Rosemead 109 (This page intentionally left blank) 110