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2009 CAFRCITY OF ROSEMEAD Rosemead, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2009 Prepared by the Finance Department Steve Brisco Director of Finance (This page intentionally left blank) CITY OF ROSEMEAD Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2009 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 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, 2009 TABLE OF CONTENTS, (Continued) FINANCIAL SECTION, (Continued) REQUIRED SUPPLEMENTARY INFORMATION, (Continued) Paqe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Low - Moderate Income Housing Set -Aside 60 OTHER SUPPLEMENTARY INFORMATION Combining Balance Sheet — Non -Major Governmental Funds 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Non -Major Governmental Funds 66 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Traffic Safety 68 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -- Community Development Block Grant 69 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — HOME Program 70 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Proposition A 71 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — Proposition C 72 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Federal Highway Grant 73 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - State Gas Tax 74 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Air Quality Management District 75 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Local Transportation 76 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Street Lighting 77 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Narcotics Forfeiture and Seizure 78 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Rosemead Housing Development Corporation 79 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — City Capital Projects 80 Major Fund Budget and Actual Schedules: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Redevelopment Agency Debt Service Fund 81 CITY OF ROSEMEAD Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2009 TABLE OF CONTENTS,(Contin_u_ed) FINANCIAL SECTION, (Continued) OTHER SUPPLEMENTARY INFORMATION, (Continued) Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual -- Redevelopment Agency Capital Projects Fund Internal Service Funds Page M Combining Statement of Net Assets 84 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 85 Combining Statement of Cash Flows 86 Statement of Changes in Assets and viabilities - Agency Fund 87 STATISTICAL SECTION Net Assets by Component 90 Changes in Net Assets 91 Fund Balances of Governmental Funds 92 Changes in Fund Balances of Governmental Funds 93 Assessed Value and Estimated Actual Value of Taxable Property 94 Direct and Overlapping Property Tax Rates 95 Principal Property Tax Payers 96 Property Tax Levies and Collections 97 Ratios of Outstanding Debt by Type 98 Ratio of General Bonded Debt Outstanding 99 Direct and Overlapping Governmental Activities Debt 100 Legal Debt Margin 101 Pledged Revenue Coverage 102 Demographic and Economic Statistics 103 Principal Employers 104 Full -time and Part -time City Employees 105 Operating Indicators by Function 106 Capital Asset Statistics by Function 107 (This page intentionally left blank) MAYOR: MARGARET CLARK MAYOR PRO TECJl: GARY TAYLOR COUNCIL MEMBERS; SANDRAARMENTA POLLY LOW STEVEN LY December 18, 2009 i 6 F r - Au iG 8838 E. VALLEY BOULEVARD - P.O. BOX 399 ROSEMEAD, CALIFORNIA 91770 TELEPHONE (626) 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, 2009. 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 GAAP. 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, 2009, 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 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, 2009, 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, street maintenance and animal control. Animal. Control will fall under the direct control of the City in FY 2009 -10. 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 Corporation (RIIDC). The City of Rosemead also provides a full range of services, including 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 by no later 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 59 as part of the basic financial statements for the governmental funds. 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 60. 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 two national general merchandise stores that historically perform well in a recessionary economy. They have continued to perform relatively well and helped the City's sales tax decline only 10.3% compared to a 16.4% decline County average. Lower than County average sales tax losses have helped keep Rosemead's unemployment rates down to 11.1 % whereas the larger Los Angeles, Long Beach, Glendale area is at 1.2.6% . Major employers are listed in the statistical section of the accompanying financial report. A new grocery store and major gym have been approved to open during FY 2009 -10 and should help relieve some of the City's unemployment. Long -term Financial Planning. On December 9, 2009 the City Council approved a strategic long-term plan that identifies three Key Organizational Goals: 1) Beautify Community Infrastructure and improve 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 new revenue sources such as the 2009 American Recovery and Reinvestment Act (ARRA) grants have been applied for and awarded to the City. The new grant awards will provide funding for infrastructure improvements during FY 2009 -10. Also, a new ten -year comprehensive capital improvement program (CIP) is scheduled for development during FY 2009.10 and a facilities master plan is nearing completion. 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 declining and other investments inereasing in yield without unnecessary safety risks, City staff is preparing to diversify investments. In accordance with State law, all City investment 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 iv insurance for property and other coverage. Additional information can be found in Note 9 in the notes to the financial statements. Pension and other postemployment benefits. The City of Rosemead is contracted with the 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 45, additional information on the City of Rosemead's pension arrangements and postemployment benefits can be found in Note 8 in. the notes to the 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, 2008. 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 department 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 L. Brisco Finance Director V t Directory of Officials June 30, 2009 CITY COUNCIL Margaret Clark, Mayor Gary Taylor, Mayor Pro Tern Polly Low, Council Member Sandra Armenta, Council Member Steven Ly, Council Member Jeff Allred, City Manager Matthew E. Hawkesworkh, Assistant City Manager Brian Saeki, Community Development Director Steve Brisco, Director of Finance Lt. Tim Murakami, Chief of Police (Contracted) David Montgomery - Scott, Director of Parks and Recreation Chris Marcarello, Deputy Public Works Director Gloria Molleda, City Clerk Joseph M. Montes, City Attorney (Contracted) VI s Presented to For its Comprehensive Annual Financial Report for the Fiscal Year Ended ,Tune 30, 2408 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers .Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual. financial reports (CAFRs) achieve the highest standards itz government accounting and financial reporting. k9FTIE 1N117E�0 � Cdt3dAA i t c x,�,eaaea�snex � �h �n President * w , f e:- P O, Executive Director Vii City of Rosemead Function Based Organizational Chart viii FINANCIAL. SECTION (This page intentionally left blank) Mayer Hmffrnan McCann PC, An Independent CPA Firm 2301 Dupont Drive, Suite.200 Irvine, California 92612 949- 474 -2020 ph 949 - 263 -5520 fx www.mhm-pc.com The Honorable Mayor and City Council City of Rosemead Rosemead, California 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 June 30, 2009, 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 June 30, 2009, 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. As described further in note 8 to the financial statements, the City changed its method of accounting for postemployement benefits for the years ending on and after June 30, 2009. 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 18, 2009 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 ,0 0 4A A40004 A0,44a 1 41 , o Irvine, California December 18, 2009 P) 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, 2009. 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 $50,073 (net assets). Of this amount, $24,883 (unrestricted) may be used to meet the government's ongoing obligations to citizens and creditors. 0 The government's total net assets increased by $473 primarily due to the addition of the Rosemead Park walking /jogging trail. W As of the of the current fiscal year, the City of Rosemead's governmental funds reported combined ending fund balances of $40,032, a decrease of $16 in comparison with the prior year. Approximately 70 percent of this total amount, $27,908, is available for spending at the governments discretion (unreserved, undesignated fund balance). ® At the end of the current fiscal year, unreserved, undesignated fund balance for the General Fund was $16,135 or 81 percent of total General Fund expenditures. • The City of Rosemead's total long -term debt decreased by $673 ( -1.8 percent) during the current fiscal year. The decrease was less than the prior year due to the recognition of Other Post Employment Benefits (OPEB) as required by Governmental Accounting Standards Board (GASB) Statement No, 45, recognition of a retrospective insurance deposit and an increase in the compensated absences balance. 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 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 -terra 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 The City of Rosemead and its component units maintain 17 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 10 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. 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, 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 -21 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 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 can be found 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 57 -87 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 $5 0,073 at the close of the most recent fiscal year. The largest portion of the City of Rosemead's net assets (24 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, 2009 and 2008 (thousands) An additional portion of the City of Rosemead's net assets (27 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($24,883) 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 $2,058 during the current fiscal year. The two main contributors to the decrease in net assets are: 1) Payment of AB 1290 tax increment pass - through payments of $1,336 which consisted of FY 2008 -09 obligations of $771 and FY 2005 -06 through 6 Governmental Activities 2009 200 Current and other assets $ 44,504 $ 46,278 Capital assets 46,369 47,965 Total assets 90,873 _ 94,243 Long-term liabilities outstanding 36,476 f 37,149 Other liabilities 4,324 4,963 Total liabilities 40,800 42,112 Net assets: f Invested in capital assets, net of related debt 11,829 12,982 Restricted 13,361 11,443 Unrestricted 24,883 27,706 Total net assets $ 50,073 $ 52,131 An additional portion of the City of Rosemead's net assets (27 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($24,883) 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 $2,058 during the current fiscal year. The two main contributors to the decrease in net assets are: 1) Payment of AB 1290 tax increment pass - through payments of $1,336 which consisted of FY 2008 -09 obligations of $771 and FY 2005 -06 through 6 FY 2007 -08 one -time reconciling obligations of $565. 2) Rapidly failing interest rates resulted in a $794 decline in interest earned over the previous year, in spite of the ending balance of cash and investments increasing by $2,227. Most of the City's surplus cash was invested in the State's Local Agency Investment Fund (LAIF) investment pool which suffered a 48.6 percent decline in average annual yields for the year. Governmental activities. Governmental activities decreased the City of Rosemead's net assets by $2,058, thereby accounting for all of the reduction in the net assets of the City of Rosemead. Key elements of this decrease are as follows: Total revenues declined by $5,508. The loss of revenue is attributable to a $2,392 loss in charges for services. As expected, with the current recessionary economy, building permit revenue declined by $331 because construction projects started in the previous year were in FY 2008 -09. final inspections were completed in the current year and contracted inspections were charged to the City in FY 2008 -09. 7 City of Rosemead's Changes in Net Assets Years Ended June 30, 2009 and 2008 (thousands) Governmental Activities 2{09 2008 Program revenues: Charges for services $ 3,006 $ 5,398 Operating grants and contributions 6,403 3,490 Capital grants and contributions 1,748 6,718 General revenues: Property taxes 12,288 13,182 Othertaxes 6,624 6,108 Investment income 885 1,679 Intergovernmental, unrestricted 195 255 Other 134 143 Total revenues 31,283 36,973 Expenses: General government 12,177 7,259 Public safety 9,082 8,044 Public works 6,465 13,550 Community services 773 670 Community development 1,290 3,645 Parks and recreation 2,031 4,079 j Interest on long -term debt 1,523 1,790 Total expenses 33,341 39,037 Increase in net assets b e f ore transfers (2,058) (2,064) Net assets - June 30, 2008 52,131 54,195 Net assets - June 30, 2009 $50,073 $52,131 Ex pe ns es Pro " 14,000,000 12,000,000 8,000,000 , ;.... 6,000,00 4,000000 �''_._ `'�._... __ .............. ....... __. ._..............._......_...... 2 >000,000 i 1 4 .. ..... .... . ............. . ........................ Revenues b y Act iviti e s otCr vehic`(p ]] in Sf5 eu, � investmen f �Cc3t1C`�i` taxes ' 4 ' occupanc Scales and use taxes, 2P prgw - "rty axes, 61% ..... ... .. . 0 Other 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 $40,016 a decrease of $16 in comparison with the prior year. Approximately 70% of this total amount ($27,908) 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 1) to liquidate contracts and purchase orders of the prior period ($115) 2) for advances to other funds ($6,976) 3) for land held for resale ($4,408) 4) for prepaid expenses ($310) or 5) for a variety of purposes ($299). 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 $16,135, while total fund balance reached $19,242. 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 81 percent of total general fund expenditures, while total fund balance represents 96 percent of that saute amount. The fund balance of the City of Rosemead's general fund decreased by $2,466 during the current year. Key factors in this decline are as follows: • General Fund revenue increased $896 over last year primarily due to the recovery of miss - allocated sales tax revenue, an increase in property tax revenue and cleanup payments of property tax in- lieu payments from the State. However, the State is projecting a decline in future year property tax in -lieu payments as their allocation formulas "catch up" with current years. At the same time, building permit revenues were $331 below last year's building permit revenues due to current economic conditions. • Salaries and benefits that were charged to the Community Development Commission in prior years were shifted to the General Fund to more accurately reflect payment for services provided Also, about $425 was expended for severance pay and leave payouts and buy - back.. • Extraordinary special legal matters costing $321 were paid during the year. • The cost of contracted building inspections increased $396 over the prior year due to timing differences between when building permit revenue was collected (FY 2007 -08) and when the projects were completed and final inspections were made (FY 2008 -09). Consequently revenue was received in the prior year with costs for inspections being paid by the City in the subsequent year. 10 ® The City contracts with a sales tax consultant to find and collect mis- allocated (by the State) sales tax. During the year a sizeable mis - allocation was identified and paid to the City. For their work in recovering the mis - allocated sales tax, the consultant was paid $187. ® Engineering costs were $171 more than the previous year. During the year the City transitioned from contract engineering services to in -house engineering services. Included in the increased costs were computers, office furniture and equipment and costs related to an increased level of construction activity by the City. There were also costs related to planning and engineering for Federal government stimulus related projects. Beginning in FY 2009 -10 a significant portion of engineering costs will be allocated to specific projects funded by sources other than the General Fund. Proposition C Fund. Proposition C expenditures have dropped from $2,317 in FY 2007 -08 to $1,403 in FY 2008 -09. The reconstruction of the Garvey Avenue Bridge was completed in FY 2007 -08 thus eliminating further expenditures for bridge construction in FY 2008 -09. However, almost $300 was spent for resurfacing of Del Mar Avenue. The balance of the fund's expenditures was for transportation related costs. Low - Moderate Income Housing Fund. The Low- Moderate Income Housing Fund (Low -Mode Fund), including transfers, finished the year with a $444 increase in fund balance. The Low -Mod Fund receives its funding primarily from transfers of property tax increment from the Community Development Commision and then transfers $250 to the Rosemead Housing Development Corporation to subsidize operations of the Corporations' senior low income housing apartments. Additionally, $256 was spent on planning and administrative costs related to low income housing planning and fund administration. Federal Highway Grant Fund. As described in the discussion of Proposition C fund balance, the only activity in this fund is a final receipt for retention totaling $1,012. This fund will not be used in the foreseeable future. Vehicle Replacement and Technology Replacement Funds. For the first time in Rosemead's history internal service funds have been used. The Vehicle Replacement Fund received $92 for the year and the Technology Replacement Fund received $48 from other City funds. 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. Community Development Commission Funds. The combined Community Development Commission (CDC) funds, debt service and capital projects, decreased fund balance by $433. The CDC Capital Projects Fund paid for salaries and benefits for general government and public safety as well as contributing $388 for the Rosemead park walking /jogging trail. Debt service of $2, 447 and $1,034 pass - through obligations was paid from the debt service funds. Included in the $1,034 of pass - through payments was $543 of additional pass - through payments required by AB 1389, legislation that mandated a recalculation of pass - through agreements back to FY 2003 -04. A6 1389 was a one -time adjustment that will not impact the City in future years. Capital Asset and Debt Administration Capital assets. The City of Rosemead's investment in capital assets for its governmental activities as of June 30, 2009, amounts to $46,369 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the City of Rosemead's investment in capital assets for the current fiscal year was 0.6 percent. Major capital asset events during the current fiscal year included the following: • Construction of Rosemead Park walking /jogging trail • City web site development City of Rosemead's Capital Assets (net of depreciation) (thousands) Additional information on the City of Rosemead's capital assets can be found in note 6 on pages 44 -45 of this report. Long - terms debt. At the end of the current fiscal year, the Rosemead Community Development Commission had total bonded debt outstanding of $35,435. Of this amount, all of it is backed by future property tax increment revenues. 12 Governmental Activities 2009 2008 Land $ 2,969 $ 2,969 Buildings 17,365 17,930 Improvements other than Buildings 120 68 Machinery and equipment 205 151 Autos and trucks 204 283 Furniture and office equipment 157 223 Infrastructure 25,349 25,953 Construction in progress 0 388 Total $ 469,369 $ 47,965 Additional information on the City of Rosemead's capital assets can be found in note 6 on pages 44 -45 of this report. Long - terms debt. At the end of the current fiscal year, the Rosemead Community Development Commission had total bonded debt outstanding of $35,435. Of this amount, all of it is backed by future property tax increment revenues. 12 City of Rosemead's Outstanding Debt Tax Allocation Bonds Governmental Activities 2009 2 ©08 Tax Allocation Bonds 1 $ 35,435 1 $ 35,350 The Rosemead Community Development Commission's total debt decreased by $915 during the current fiscal year due to debt service payments on bonded indebtedness of $35,350. Economic Factors and Next dear's Budgets and Rates • The unemployment rate for the City of Rosemead is currently 11.1 percent. Rosemead is included in the Bureau of labor Statistics (BLS) Los Angeles , Long Beach, Glendale unemployment data set which has unemployment of 12.6 percent compared to 4.1 percent a year ago. The City's unemployment rate compares favorably to the state's average unemployment rate of 12.3 percent and the national average rate of 9.8 percent. • Sales tax in the City has remained remarkably stable. Even in the current troubled economy sales tax for the 2 " quarter 2009 declined 10.3 percent year over year but compares favorably to other cities in the County. The City has a diverse sales tax base including a three year old Super Wal -Mart store. Nationally, Wal -Mart stores have shown continued solid sales during the current down economy and the City's Wal -Mart is no exception. The sales tax projection for FY 2009 -10 is expected to be relatively flat for the year, however, this may need to be adjusted downward somewhat in the raid -year analysis. • Recent inflation was slightly negative and news sources project only moderate increases for the year. All of these factors were considered in preparing the City of Rosemead's budget for the 2010 fiscal year. During the current fiscal year, unreserved, undesignated fund balance in the general fund decreased to $16,135. The City of Rosemead did not appropriate any General Fund unreserved, undesignated fund balance for spending in the 2010 fiscal year budget. 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 Finance Director, 8838 East Valley Boulevard, Rosemead, CA 91770. 13 CITY OF ROSEMEAD Statement of Net Assets June 30, 2009 Assets: Cash and investments (note 2) Receivables: Accounts Accrued interest Notes Prepaid expenses Deposits Deferred charges Land held for resale Capital assets (note 6): Land Other capital assets, net Total assets Liabilities: Accounts payable and accrued liabilities Accrued salaries and benefits Deposits payable Retentions payable Accrued interest payable Unearned revenue Noncurrent liabilities (note 7 to 9): Due within one year Due in more than one year Total liabilities Net assets: Invested in capital assets, net of related debt Restricted for: Public works Public safety Low - moderate income housing Unrestricted Total net assets Governmental Activities $ 36,830,249 2,071,746 131,867 219,730 310,106 79,161 453,207 4,407,616 2,968,824 43, 399, 763 90.872.269 2,441,418 365,351 34,527 48,141 618,346 815,473 1,207,964 35,268,077 40,799,297 11, 828, 993 5,008,317 2,386,928 5,966,004 24,882,730 $ 50,072,972 See accompanying notes to the basic financial statements. 14 CITY OF ROSEMEA© Statement of Activities Fiscal Year ended ,tune 30, 2009 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. 12,288,177 4,589,998 1,272,092 761,410 884,847 195,273 133,825 20,125,622 (2,057,863) 52,130,835 $ 50,072,972 15 Program Revenues Net (Expense) Operating Capital Revenue and Charges for Contributions Contributions Changes in Expenses Services and Grants and Grants Net Assets Governmental activities: General government $ 12,176,877 547,327 250 - (11,629,300) Public safety 9,081,719 549,979 226,262 736,234 (7,569,244) Public works 6,465,355 1,064,394 5,505,147 1,012,260 1,116,446 Community services 773,374 187,315 671,494 - 85,435 Community development 1,290,108 621,375 - - (668,733) Parks and recreation 2,030,698 36,000 - - (1,994,698) Interest expense 1,523,391 - - - (1,523,39 Total governmental activities $ 33,341,522 3,006,390 6,403,153 1,748,494 (22,183,485 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. 12,288,177 4,589,998 1,272,092 761,410 884,847 195,273 133,825 20,125,622 (2,057,863) 52,130,835 $ 50,072,972 15 CITY OF ROSEMEAD Balance Sheet - Governmental Funds June 30, 2009 See accompanying notes to the basic financial statements. 16 S pecial Revenu Debt Service Low- Moderate Income Housing Redevelopment General Set -Aside Agency Assets: Cash and investments $ 15,885,533 1,499,153 7,551,374 Receivables: Accounts 989,992 - 104,557 Accrued interest 79,842 1,773 26,951 Dotes 219,730 - - Prepaid items 310,106 - - Due from other funds (note 4) 1,218,036 - - Deposits 79,161 - - Land held for resale - - - Advances to other funds (note 4) 2,497,920 4,477,945 - Total assets $ 21,280,320 5,978,871 7,682,882 Liabilities and Fund Balance Liabilities: Accounts payable and accrued liabilities $ 1,584,972 2,615 401,011 Accrued salaries and benefits 298,865 - 16 Deposits payable - - - Retentions payable 6,085 - - Due to other funds (note 4) 140,243 10,252 - Deferred revenue 8,136 - - Advances from other funds (note 4) - - 4,477,945 Total liabilities 2,038,301 12,867 4,878,972 Fund balance: Reserved for: Encumbrances - - - Notes receivable 219,730 - - Prepaid items 310,106 - - Deposits 79,161 - - Land held for Resale - - - Advances to other funds 2,497,920 4,477,945 - Unreserved, reported in: General fund 16,135,102 - - Special revenue funds - 1,488,059 - Debt service funds - - 2,803,910 Capital projects funds - - - Total fund balance 19,242,019 5,966,004 2,803,910 Total liabilities and fund balance $ 21,280,320 5,978,871 7,682,882 See accompanying notes to the basic financial statements. 16 Capita[ Projects Redevelopment Nan -Major Agency Governmental Total 2,714,105 23,301 351 4,407,616 9,180,084 36,830,249 977,197 50,974 2,071,746 131,867 219,7'30 310,106 1,269, 361 79,161 4,407,616 6,975,865 52,295,701 7,145,373 10,208,255 55,820 397,000 2,441,418 110 66,360 365,351 - 34,527 34,527 - 42,056 48,141 123,230 1,135,630 1,409, 355 - 997,254 1,005,390 2,497,920 - 6,975,865 2,677,080 2,672,827 12,280,047 115,000 - 115,000 - - 219,730 - 310,106 - - 79,161 4,407,616 - 4,407,616 - - 6,975,865 - - 16,135,102 - 7,535,428 9,023,487 - - 2,803,910 (54,323) - (54,323) 4,468,293 7,535,428 40,015,654 7,145,373 10,208,255 52,295,701 17 (This page intentionally left blank) IR CITY OF ROSEMEAD Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2009 Fund balances of governmental funds $ 40,015,654 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 79,307,775 Accumulated depreciation (32,939,188) Long -term debt and compensated absences that have not been included in the governmental fund activity: Compensated absences (422,850) Other post employment benefits (153,291) Retrospective deposits payable (207,476) Unamortized bond premiums (257,424) Tax allocation bonds (35,435,000) Debt issuance costs are not current financial resources and, therefore, are not reported in the governmental funds. 453,207 Accrued interest payable for the current portion of interest due on bonds payable has not been reported in the governmental funds. (618,346) Revenues that are measurable but not available. Amounts are recorded as deferred revenue under the modified accrual basis of accounting. 189,917 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. 139,994 Net assets of governmental activities $ 50,072,972 See accompanying notes to the basic financial statements. Wel CITY OF ROSEMEA© Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Fiscal Year ended June 30, 2009 UN Special Revenu Debt Service Low- Moderate Income Housing Redevelopment General Set -Aside Agency Revenues: Taxes $ 11,485,062 - 5,649,896 Intergovernmental 3,107,790 - - Licenses and permits 1,178,362 - - Charges for services 638,244 - - Fines, forfeitures and penalties 394,117 - - Special assessments - - - Investment income 397,881 22,643 261,591 Other 380,823 - 606 Total revenues 17,582,279 22,643 5,912,093 Expenditures: Current: ,General government 9,947,996 - 103,885 Public safety 7,071,584 - 1,016,479 Public works 417,174 - - Community services 363,531 - - Community development - 256,220 - Parks and recreation 2,030,698 - - Capital outlay 202,752 - - Debt service: Principal - - 915,000 Interest and fiscal charges - - 1,531,986 Total expenditures 20,033,735 256,220 3,567,350 Excess (deficiency) of revenues over (under) expenditures (2,451,456) X233,577) 2,344,743 Other financing sources (uses): Transfers in (note 5) - 928,000 - Trans €ers out (note 5) (14,175 (250,000) (3,258,531 Total other financing sources (uses) (14,175) 678,000 (3,258,531 Change in fund balances (2,465,631) 444,423 (913,788) Fund balances at beginning of year 21,707,650 5 3,717,698 Fund balances at end of year $ 19,242,019 5,966,004 2,803,910 See accompanying notes to the basic financial statements. UN Capital Projects Redevelopment Non -Major Agency Governmenta Total 18,667 - 17,153,625 - 7,884,445 10,992,235 - - 1,178,362 - - 638,244 - 171,526 565,643 - 736,213 736,213 6,818 195,914 884,847 - - 381,429 25,485 8,988,098 32,530,598 1,184,280 720,018 11,956,179 - 1,025,946 9,114,009 303,371 4,244,322 4,964,867 - 419,921 783,452 - 791,309 1,047,529 - - 2,030,698 - - 202,752 - 915,000 - - 1,531,986 1,487,651 7,201,516 32,546,472 (1,462,166 1,786,582 (15,874 2,330,533 819,950 4,078,483 (388,020 (167,757) (4,078,483 1,942,513 652,193 - 480,347 2,438,775 (15,874) 3,987,946 5,096,653 40,031,528 4,468,293 7,535,428 40,015,654 21 CITY OF ROSEMEAD Governmental Funds 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, 2009 Net changes in fund balances of governmental funds $ (15,874) 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 522,753 Depreciation expense (2,119,183) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long -term liabilities in the statement of net assets. 915,000 To record as an expense the net change in the other post employment benefit obligation in the statement of activities. (153,291) To record as an expense the net change in retrospective deposit payable in the statement of activities. (207,476) 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) The statement of net assets includes accrued interest on long term debt. 21,165 To record as an expense the net change in compensated absences in the statement of activities. 98,558 Revenues that are measurable but not available. Amounts are not recorded as revenue under the modified accrual basis of accounting. (1,246,939) 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. 139,994 Change in net assets of governmental activities $ (2,057,863) See accompanying notes to the basic financial statements. 22 CITY OF ROSEMEAD Statement of Net Assets Proprietary Funds June 30, 2009 Internal Assets Service Current assets: Due from other funds (note 4) $ 139,994 Total assets 139,994 Net assets Unrestricted 139,994 Total net assets $ 139,994 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, 2009 Internal Service Operating revenues: Charges for services $ 139,994 Total operating revenues 139,994 Changes in net assets 139,994 Net assets at beginning of year - Net assets at end of year $ 139,994 See accompanying notes to the basic financial statements. 24 CITY OF ROSEMEAD Statement of Cash Flows Proprietary Funds Year ended June 30, 2099 Net cash provided by (used for) operating activities 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 Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Reconciliation of operating income to net cash provided by (used for) operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Increase (decrease) in due to other funds Total adjustments Net cash provided by operating activities Internal Service $ 139,994 (139,994} (139,994) See accompanying notes to the basic financial statements. 25 CITY OF ROSEMEAD Statement of Fiduciary Assets and Liabilities Agency Fund June 30, 2009 Assets Cash and investments (note 2) Total assets Liabilities Deposits payable Total liabilities $ 360,557 $ 360,557 360J57 $ 360,557 See accompanying notes to the basic financial statements. 26 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements Fiscal Year Ended June 30, 2009 1 Summa of Significant Accounting Policies (a) Reporting Entity 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 Entily, (,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. ►: CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) Accounting Policies, (Continued) 1 Summary of Significant A n , , , , (b) Basis of Accounting and Measurement Focus The basic financial statements of the City are composed of the following: 0 Government -wide financial statements 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 SummaU of Significant Accounting Policies Continued ; € s , „ Continued) b) Basis of Accounting and Measuremen t F oc 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) 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). Locally 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) t 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 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 technology replacement. Departments of the provided or benefits received from these funds used to account for vehicle and City are charged for the services 32 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 1 Summary of Significant Accounting Policies Continued c Major 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 market 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 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 1 Summa 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 Improvements other than buildings Machinery and equipment Autos and trucks Furniture and office equipment Infrastructure: Bridges Sewer system and storm drain system Medians and sidewalks Traffic signals Streets (g) Compensated Absences 50 years 15 years 7 years 5 years 7 years 50 years 50 -100 years 40 years 30 years 20 years 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). M , 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 -Sack Program, an employee must take at least 40 consecutive hours of vacation at one time. (h) Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. (i) Fund Equity 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 dune 30, 2009 are classified in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments $36,830,249 Statement of Fiduciary Assets and Liabilities: Cash and investments 360,557 Total cash and investments X3.7190,806 Cash and investments as of June 30, 2009 consist of the following: Deposits with financial institutions $ 4,042,796 1 nvestments 33,148,010 Total cash and investments $37.190,806 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 Poll 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 governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. Investment Types Authorized by State Law U.S. Treasury Obligations U.S. Agency Securities Banker's Acceptances Commercial Paper Negotiable Certificates of Deposit Repurchase Agreements Reverse Repurchase Agreements Medium -Term Notes Money Market Mutual Funds Local Agency Investment Fund (LAIF) Authorized *Maximum *Maximum By Investment *Maximum Percentage Investment Po__- __lice Maturity Of Portfolio In One Issuer Yes 5 years None None Yes 5 years None None Yes 270 days 40% 10% Yes 270 days 25% 10% Yes 3 years 30% None No NIA N/A N/A No N/A N/A N/A Yes 3 years 15% 10% Yes N/A None None Yes N/A None None * Based on state law requirements or investment policy requirements, whichever is more restrictive. 37 CITY OF ROSEMEAD, CALIFORNIA Notes to the Bbsic 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. 0 . 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. 0 . 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 $ 31,995,180 31,995,180 - Held by bond trustee: Money market funds 4 4 - - Investment agreement. 1,152,826 - - 1,152,826 _ Total $33.148.010 31995184 - 1, 152,826 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 $ 31,995,180 NIA - 31,995,180 Held by bond trustee: Money market funds 4 A 4 - Investment agreement 1,152, 826 NIA _ 1,152,826 Total 33,148,010 4 33,148 006 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 party. 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, 2009, $2,844,316 of the City's deposits with financial institutions in excess of federal depository insurance limits were 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. .1 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) Q) Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1 % 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) lnterfund Receivables and Pavables Current interfund receivables and payables balances at June 30, 2099 are as follows: Due from other funds Due to other funds Amount General Fund Low- Moderate Income $ 10,252 Redevelopment Agency Capital Projects Fund 72,256 Non -Major Governmental Fund 1,135,528 (A) Total General Fund 1,218 Non -Major Redevelopment Agency Governmental Fund Capital Projects Fund 50,97 Redevelopment Agency Capital Projects Fund General Fund 249 Non -Major Governmental Fund 192 Total RDA Capital Projects Fund 351 Internal Service Funds General Fund 139,994(A) . Total 1 409.355 (A) Short -term borrowing to cover temporary cash deficits. Noncurrent interfund receivable Advances to other funds Low - Moderate Income Housing Set -Aside General Fund and payable balances at June 30, 2009 are as follows: Advances from other funds Amount Redevelopment Agency Debt Service Fund $ 4,477,945 (B) Redevelopment A ency Capital Projects fund 2,497,920 (C) Total $ 6,975.805 42 CITY OF ROSEMEAD, CALIFORNIA 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, 2009, 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) Interfund Transfers Interfund transfers were as follows for the year ended June 30, 2009: Transfer In Low- Moderate Income Housing Set -Aside Redevelopment Agency Capital Projects Fund Non -Major Governmental Transfer Out Amount Redevelopment Agency Debt Service Fund 928,000 (A) Redevelopment Agency Debt Service Fund 2,148,421 (B) General Fund 14,175 Non -Major Governmental Funds 167,937 Total Redevelopment Agency Capital Projects Fund 2,330,533 Low - Moderate Income Housing Set -Aside 250,000 Redevelopment Agency Capital Projects Fund 388,020 Redevelopment Agency Debt Service Fund 181,930 Total Non -Major Governmental Funds 819,950 Total $ 4,Q78.483 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, 2009. (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 dune 30, 2009: Balance at June 30, 2008 Governmental activities: Capital assets not depreciated: Land $ 2,968,824 Construction in progress 388,448 Total capital assets not being depreciated Capital assets being depreciated: Buildings Improvements other than buildings Machinery and equipment Autos and trucks Furniture and office equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation for: Buildings Improvements other than buildings Machinery and equipment Autos and trucks Furniture and office equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net Governmental activities capital assets, net Balance at Increases Decreases June 30, 2009 - - 2,968,824 ( 388,448 ) - 3,357,272 - ( 388,448) 2,968,824 (742,030) (30,289) 23,994,956 - - 23,994,956 936,931 90,166 - 1,027,097 892,864 84,167 - 977,031 686,296 - (49,167) 637,129 2,469,526 31,860 - 2,501,386 46,496,344 705.008 - 47,201.352 75,476,917 911,201 49167) 76,338,951 (6,064,583) (565,735) - (6,630,318) (868,483) (38,993) - (907,476) (742,030) (30,289) - (772,319) (403,066) (78,601) 49,167 (432,500) (2,247,228) (97,167) - (2,344,395) (20,543,782 (1,308,398) - (21_,852,1.80 (30,869,172 (2,119,183 49,167 (32, 939,188 44,607,745 (1 } 207,982} - 43,399,763 $_47,965.017 (1,207,982) 388 448) 46-368-587 .. 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 $ 1,870,842 Community development 248,341 Total depreciation expense $2,119,183 7 Changes in Long-Term Liabilities Long -term debt consists of the following at June 30, 2009: Balance at Balance at Due within Due Beyond June 30, 2008 Additions Reductions June 30, 2009 One Year One Year Governmental activities: Tax allocation bonds, Series 2006A $12,415,000 - 845,000 11,570,000 870,000 10,700,000 Tax allocation bonds, Series 2006E 23,935,000 - 70,000 23,865,000 75,000 23,790,000 Unamortized bond premiums 277,226 19,802 257,424 .19,802 237,622 Other post employment benefits - 284,778 131,487 153,291 - 153,291 Retrospective deposit - 207,476 - 207,476 69,159 138,317 Compensated absences 521,408 116,002 214.560 422,850. 174,003 248,847 37 148 634 60$ 256 1 2x0.849 36.476,041 1 207,964 35,268,077 The City records expenditures related to compensated absences through the City's General Fund. 45 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (7) Changes in Long -Term Liabilities, (Continued) Tax Allocation Bonds. Series 2006A 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, 2009 the outstanding balance was $11,570,000. 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, 2009, $23,565,000 of the bonds are outstanding. M. CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 7 Changes in Long-Term Liabilities Continued At June 30, 2009, debt service requirements to maturity for governmental activities long- term debt are as follows: 8 Post Employment Benefit Plan Plan Description: The City administers a multi- 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 cast 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 PIERS 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 47 2006A Tax Allocation Bonds 20068 Tax Allocation Bonds Year Ending June 30 Principal Interest Principal Interest 2010 $ 870,000 478,131 75,000 1,037,674 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 -2019 5,720,000 1,032,780 460,000 5,088,680 2020 -2024 1,185, 000 124,223 6,110,000 4,437, 556 2025 -2029 - - 7,510,000 2,992,678 2030 -2034 - - 9,390,000 1,084064 S1.1.5.70,000 3.244.558 3 82_ ,_6j0L0 18, 764,222 8 Post Employment Benefit Plan Plan Description: The City administers a multi- 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 cast 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 PIERS 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 47 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 8 Post Employment Benefit Plan Continued 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 2008 -09, 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: Annual required contribution $284,778 Interest on net OPEB obligation - Adjustments to annual required contributions - Annual OPEB cost (expense) 284,778 Contributions made (including premiums paid) 13( 1,487 Increase in net OPEB obligation 153,291 Net OPEB obligation - beginning of year - Net OPEB obligation -end of year 1 3 291 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2009 and the two preceding years were as follows: Percentage of Annual Net Fiscal Annual OPEB Cost OPEB Year OPEB Cost Contributed Obligation 6130107 NIA NIA NIA 6130108 NIA NIA NIA 6130109 $284,778 54% $153,291 W . CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (8) Post Employment Benefit Plan, (Continued) 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. 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 -terra 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 W" Actuarial Accrued UAAL as a Actuarial Liability Unfunded Percentage of Actuarial Value of (AAL)- AAL Funded Covered Covered Valuation Assets Entry A e UAAL Ratio Payroll Payroll Date (a) Lb� (b -a) a/b ha )/c 1101106 N/A NIA N/A N/A NIA NIA 1101107 NIA NIA NIA N/A NIA N/A 1101108 $0 $3,548,605 $3,548,605 0% $1,682,985 211% W" CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 9 Risk Management Self- insurance pool pursuant to 'oint 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. 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. 50 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) ( 9)_ Risk Management, (Continued) 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. 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 term 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 .tune 30, 2009 the City had retrospective deposits payable to the Authority in the amount of $207,476. The deposit will be repaid through adjustments to premiums over the next three years. (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 51 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (10) Retirement Plans, (Continued) Defined Benefit Pension Plan, (Continued) 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. All permanent City employees are eligible to participate in the System. Employees attaining the age of 55 with five years of credited California service (service) are eligible for normal retirement and are entitled to a monthly benefit of 2.7% of their final compensation for each year of service. Final compensation is defined as the highest annual salary earned. Retirement may begin at age 50 with a reduced benefit rate. The plan also credits employees for unused sick leave. Upon separation from the plan prior to retirement, members' accumulated contributions are refundable with interest credited through the date of separation. For each of the fiscal years shown below, the City has contributed at the actuarially determined rate provided by PERS' actuaries. Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual required contribution (ARC) plus an adjustment for the cumulative difference between the APC and the employer's actual plan contributions for the year. The cumulative difference is called the net pension obligation (NPO). The ARC for the period July 1, 2008 to June 30, 2009 has been determined by an actuarial valuation of the plan as of June 30, 2006. The City's covered payroll for PERS was $4,160,179 for the year ended June 30, 2009, while the City's total payroll for all employees was $6,946,135 during the same period. In order to calculate the dollar value of the ARC for inclusion in financial statements prepared as of June 30, 2009, the contribution rate is multiplied by the payroll of covered employees that were paid during the period from July 1, 2008 to June 30, 2009. Three -year trend information: Annual Pension Cost (Miscellaneous) 52 Employer Net Fiscal Years Contribution Employer Percentage Pension Ended June 30 Rate Contribution Contributed Obligation 2007 20.889% $ 471,068 100% - 2008 19.802% 828,584 100% - 2009 26.100% 1,428,348 100% - 52 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 10 Retirement Plan 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 11), 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 CalPERS 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) (10) Retirement Plan,lContinued) 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 Actuarial Unfunded Date Accrued Value of Liability (UAL)/ July Liability Assets (Excess Assets) 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: UAL As a Funded Valuation % of Status Payroll Pam 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 Obligation 2007 $ 298,238 100% 2008 246,265 100% 2009 74,317 100% (11) 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. X12)_ Fund Deficits The following funds had deficit balances as of June .30, 2009: CDBG The fund deficit primarily relates to expenditures that were charged to the grant during the fiscal year ended June 30, 2009, which were submitted for reimbursement. However, the reimbursement was not received within the availability period and therefore has been deferred. (l3)_ Expenditures in Excess of A„p2ropriations Expenditures exceeded appropriations in the following funds: Fund Deficit Fund Fund Name Balance CDBG $ 947 HOME 339,043 Federal Highway Grant 72,093 Local Transportation 252 CDBG The fund deficit primarily relates to expenditures that were charged to the grant during the fiscal year ended June 30, 2009, which were submitted for reimbursement. However, the reimbursement was not received within the availability period and therefore has been deferred. (l3)_ Expenditures in Excess of A„p2ropriations Expenditures exceeded appropriations in the following funds: Fund Budget Actual Variance Proposition A $ 469,910 625,435 (155,525) Street Lighting 365,000 425,946 (60,946) AQMD 9,000 13,970 (4,970) 55 (This page intentionally left blank) 56 Required Supplementary Information 57 CITY OF ROSEMEAD, CALIFORNIA Note to the Required Supplementary Information Fiscal Year Ended June 30, 2009 (t) Budgetary 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 agencies 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, function and department. The City's Department Heads, with approval of the Finance Director and City Manager, may male 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. :, CITY OF ROSEMEAD General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2009 Revenues: Taxes: Property taxes Business license tax Sales and use tax Transient occupancy tax Franchise tax Real estate transfer tax Total taxes Intergovernmental Licenses and permits Charges for services Fines and penalties Investment income Other Total revenues Expenditures: Current: General government Public safety Public Works Community services Parks and recreation Capital outlay 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 balances at beginning of year Fund balances at end of year 18,131,000 18,131,000 17,582,279 (548,721) 9,970,001 9,970,001 9,947,996 Variance - Budgeted Amounts 7,071,584 Positive O riginal Final Actual (Negative) 404,200 404,200 363,531 40,669 $ 5,596,600 5,596,600 5,713,769 117,169 40,700 40,700 48,257 7,557 3,853,000 3,853,000 3,589,817 (263,183) 1,386,400 1,386,400 1,272,092 (114,308) 781,020 781,020 761,410 (19,610) 130,000 130,000 99,717 (30,283 1 1,787,720 11 ,787,720 11,485,062 (302,658) 2,764,600 2,764,600 3,107,790 343,190 1,71 8,700 1,718,700 1 ,178,362 (540,338) 643,200 643,200 638,244 (4,956) 454,500 454,500 394,117 (60,383) 536,000 536,000 397,881 (138,119) 226,280 226,280 380,823 154,543 18,131,000 18,131,000 17,582,279 (548,721) 9,970,001 9,970,001 9,947,996 22,005 6,884,150 6,884,150 7,071,584 (187,434) 358,900 358,900 417,174 (58,274) 404,200 404,200 363,531 40,669 1,627,474 1,627,474 2,030,698 (403,224) 251,137 251,137 202,752 48,385 19,495,862 19,495,862 20,033,735 (537,873 (1,364,862) (1,364,862 (2,451,456 (1,086,594 - - (14,175} 141 (14,175) (14,175 (1 ,364,862) (1 ,364,862) (2,465,631.) (1,100,769) 21,707,650 21,707,650 21,707,650 - $20,342,788 20,342,788 19,242,019 (1,100,769) 59 CITY OF ROSEMEA© Low - Moderate Income Housing Set -Aside Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2009 W Variance- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Investment income $ - - 22,643 22,643 Total revenues - - 22,643 22,643 Expenditures: Current: Community development 336,520 336,520 256,220 80,300 Total expenditures 336,520 336,520 256,220 80,300 Excess (deficiency) of revenues over (under) expenditures (336,520) (336,520 ) (233,577) 102,943 Other financing sources (uses): Transfers in 1,299,000 1,299,000 928,000 (371,000) Transfers out (17,800) (17,800) (250,000 (232 ,200) Total other financing sources (uses) 1,281,200 1,281,200 678,000 (603,200) Change in fund balances 944,680 944,680 444,423 (500,257) Fund balance at beginning of year 5,521,581 5,521,581 5,521,581 - Fund balance at end of year $ 6,466,261 6,466,261 5,966,004 (500,257 W Other Supplementary Information 61 (This page intentionally left blank) 62 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. Prop osition this fund u Fund — This fund is used to finance public transportation projects. Effective July 1, nd 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 - $.10 per gallon of gas sold. Gas Tax money is distributed to the City based upon population and vehicle registration. Funds may be used for: Select Streets: Right -of -way acquisition, construction or maintenance. Minor Streets: Right -of -way acquisition or construction is allowed as the City Council has determined that 90% or more of the City's street system has already been constructed. 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. Rosemead Housing Development Cor oration — 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. Cit y 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, 2009 Revenue Funds 64 Federal Traffic CDBG HOME Proposition Proposition Highway Sam Grant Grant A C Grant Assets Cash and investments $ - - - 921,912 2,234,678 - Receivables: Accounts 15,270 333,789 316,848 64,228 52,299 - Due from other funds - - - - - - Total assets $ 15,270 333,789 316,848 986,140 2,286,977 - Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities $ - 26,849 26,916 4,317 140,793 - Accrued salaries and benefits - 30,657 2,025 14,444 9,930 - Deposits payable - - - - - - Retentions payable - 15,919 - - 26,137 - Due to other funds 2,343 79,530 626,950 - - 72,093 Deferred revenue - 181,781 - - - - Totalliabilities 2,343 334,736 655,891 18,761 176,860 72,093 Fund balances: Unreserved, reported in: Special revenue funds 12,927 (947 33( 9,043} 967,379 2,110,117 72,093 Total fund balances (deficit) 12,927 (947 339,043 967,379 2,110,117 7( 2,093) Total liabilities and fund balances $ 15,270 333,789 316,848 986,140 2,286,977 - 64 Capital Projects Special Revenue Funds Fund Rosemead Air Quality Housing City State Gas Management Local Street Narcotics Development Capital Tax District Transportation Lighting Seizure Corporation Projects Total 2,298,834 32,834 - 2,374,342 31 512,628 804,825 9,180,084 123,368 16,787 2,760 38,166 - 13,682 - 977,197 - - - - - - 50,974 50,974 2,422,202 49,621 2,760 2,412 31 526,310 855,799 10,208,255 120,026 - - 38,538 - - 39,561 397,000 8,641 - - - - - 663 66,360 - - - - - 34,527 - 34,527 - - - - - 42,056 3,012 - - 351,600 102 1,135,630 - - - - - 815,473 997,254 128,667 - 3,012 38,538 - 386,127 855,799 2,672,827 2,293,535 49,621 2,293,535 49,621 (252) 2,373,970 (252} 2,373,970 31 140,183 - 7,535,428 31 140,183 - 7,535,428 2,422,202 49,621 2,760 2,412,508 31 526,310 855,799 10,208,255 LO CITY OF ROSEMEAD Non -Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Year ended June 30, 2009 Special Revenue Funds Revenues: Intergovernmental Fines, forfeitures and penalties 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 Federal Traffic CL BG HOME Proposition Proposition Highway Safety Grant Grant A C Grant $ - 1,332,765 801,901 828,340 689,330 1,012,260 171,526 - - - - - 8,390 2,160 - 14,706 70,735 - 179,916 1,334,925 801.901 843,046 760,065 1,012,260 600,000 - - - - - - 982,946 - 459,892 1,403,744 419,921 - - - - - - 782,231 - - - 600,000 1,402,867 782,231 459,892 1,403,744 - (420,084 (67,942) 19 383,154 (643,679) 1,012,260 (457) - - (12,198) - - 457 - - (12,1 „98) - (420,084) (68,399) 19,670 383,154 (655,877) 1,012,260 433,011 67,452 35( 8,713} 584,225 2,765,994 (1,084,353) $ 12,927 (947 ) J339,043) 967,379 2,110,117 (72,Q .. 67 Capital Projects Special Revenue Funds Fund Rosemead Air Quality Housing City State Gas Management Local Street Narcotics Development Capital Tax district Transportation Lighting Seizure Corporation Projects Total 2,584,854 64,743 155,102 - - 415,150 - 7,884,445 - - - - - - - 171,526 - - - 736,213 - - - 736,213 46,077 - - 53,705 1 140 - 195,914 2,630,931 64,743 155,102 789,918 1 415,290 - 8,988,098 - - - - - 720,018 - 720,018 - - - 425,946 - - - 1 822,898 4,892 - - - - 569,950 4,244,322 - - - - - - - 419,921 - 9,078 - - - - - 791,309 822,898 13,970 - 425,946 - 720,018 569,950 7,201,516 1,808,033 50,773 155,102 363,972 1 (304,728) (569,950) 1,786,582 - - - - - 250,000 569,950 819,950 - - (155,102) - - - - (167,757 } - - (155,102) - - 250,000 569,950 652,193 1,808,033 50,773 - 363,972 1 (54,728) - 2,438,775 485,502 (1,152) (252) 2,009,998 30 194,911 - 5,096,653 2,293,535 49,621 1252 ) 2,373,970 31 140,183 - 7,535,428 67 CITY OF ROSEMEAD Traffic Safety Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2009 Revenues: Fines, forfeitures and penalties 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 - Budgeted Amounts Positive Original Final Actual (Negative) $ 200,000 200,000 171,526 (28,474) - - 8,390 8,390 200,000 200,000 179,916 (20,084 600,000 600,000 600,000 - 600,000 600,000 600,000 - (400,000) (400,000) (420,084) (20,084) 433,011 433,011 433,011 - $ 33,011 33,011 12,927 (20 084) W . CITY OF ROSEMEAD Community Development Block Grant Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2009 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Public works Community services 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 (deficit) at end of year Variance - Budgeted Amounts Positive Original Final Actual (Negative) $ 1,953,481 1,953,481 1,332,765 (620,716) - - 2,160 2,160 1,953,481 1,953,481 1,334,925 (618,556) 1,530,480 1,530,480 982,946 547,534 566,970 566,970 419,921 147,049 2,097,450 2,097,450 1,402,867 694,583 (143,969) (143,969) (67,942 76,027 (457) (457) - 457) 457 (143,969) (143,969) (68,399) 75,570 67,452 67,452 67,452 - $ (76,517) (76,517) (947 75,570 .• CITY OF ROSEMEAD HOME Program Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2009 70 Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental $ 2,208,805 2,208,805 801,901 (1,406,904) Total revenues 2,208,805 2,208,805 801,901 (9,406,904) Expenditures: Current: Community development 2,207,770 2,207,770 782,231 1,425,539 Total expenditures 2,207,770 2,207,770 782,231 1,425,539 Net change in fund balance 1,035 1,035 19,670 18,635 Fund balance (deficit) at beginning of year (358,713) (358,713) (358,713 _ Fund balance (deficit) at end of year $$ 3357,678 (357,678 (339,043) 18,635 70 CITY OF ROSEMEAD Proposition A Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2009 Revenues: Intergovernmental Investment Income Total revenues Expenditures: Current: Public works Total expenditures Change in fund balances Fund balance at beginning of year Fund balance at end of year 469,910 469,910 459,892 Variance - Budgeted Amounts 469,910 Positive Original Final Actual (Negative) (79,536) 584,225 584,225 $ 916,000 916,000 828,340 (87,660) 16,600 16,600 14,706 (1,894) 932,600 932,600 843,046 (89,554 469,910 469,910 459,892 10,018 469,910 469,910 459,892 10,018 462,690 462,690 383,154 (79,536) 584,225 584,225 584,225 - $ 1,046,915 1,046,915 967,379 (79,536 71 CITY OF ROSEMEAD Proposition C Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2009 72 Variance - Budgeted Amounts Positive Ordinal Final Actual (Negative) Revenues: Intergovernmental $ 760,000 760,000 689,330 (70,670) Investment income 48 48,000 70,735 22,735 Total revenues 808,000 808,000 760,065 (47,935 Expenditures: Current: Public works 1,471,960 1,471,960 1,403,744 68,216 Total expenditures 1,471,960 1,471,960 1,403,744 68,216 Excess (deficiency) of revenues over (under) expenditures (663,960) (663,960 (643,679) 20,281 Other financing sources (uses): Transfers out 166,000 166,000 (12,198 178,198 Total other financing sources (uses) 166,000 166,000 (12,198) (178,198 Net change in fund balance (497,960) (497,960) (655,877) (157,917) Fund balance at beginning of year 2,765,994 2,765,994 2,765,994 - Fund balance at end of year $ 2,268,034 2,268,034 2,110,117 (157,917 72 CITY OF ROSEMEAD Federal Highway Grant Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2009 73 Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental $ ro - 1,012,260 1,012,260 Total revenues - - 1,012,260 1,012,260 Net change in fund balance - - 1,012,260 1,012,260 Fund balance (deficit) at beginning of year (1,084,353 (1,084,363 (1,084,353) - Fund balance (deficit) at end of year $ (1,084,353} (1,084,353 (72,093 1,012,260 73 CITY OF ROSEMEAD State Gas Tax Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2009 74 Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues; Intergovernmental $ 1,964,174 1,964,174 2,584,854 620,680 Investment income 28,000 28,000 46,077 18,077 Total revenues 1,992,174 1,992,174 2,630,931 638,757 Expenditures: Current: Public works 3,495,934 3,495,934 822,898 2 Total expenditures 3,495,934 3,495,934 822,898 2,673,036 Change in fund balance (1,503,760) (1,503,760) 1,808,033 3,311,793 Fund balance at beginning of year 485,502 485,502 485,502 - Fund balance at end of year $ (1,018,258 (1,018,258) 2,293,535 3,311,793 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, 2009 Revenues: Intergovernmental Total revenues Expenditures: Current: Public works Community development Total expenditures Change in fund balances Variance - Budgeted Amounts Positive Original - Final Actual (Negative) $ 70,000 70,000 64,743 (5,257 70,000 70,000 64,743 (5,257) - - 4,892 (4,892) 9,000 9,000 9,078 (78 9,000 9,000 13,970 (4,970 61 ,000 61,000 50,773 (10,227) Fund balance deficit at be gi n ning of (deficit g y ear 1,152 ��) {1152 , (1..x.,.52 - 1 Fund balance (deficit) at end of year $ 59,848 59,848 49,621 (10,227) 75 CITY OF ROSEMEAD Local Transportation Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Fiscal Year ended June 30, 2009 Revenues: Intergovernmental 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 (deficit) at beginning of year Fund balance (deficit) at end of year Budgeted Amounts Original Final Variance - Positive Actual (Negative) $ 225,000 225,000 155,102 (69,898 225,000 225,000 155,102 (69,898 225,000 225,000 155,102 (69,898) 155,000 155,000 (155,102) (310,102) 155,000 155,000 {155,102 (310,102) 380,000 380,000 - (380, 000) ( 252) (252) (252 $ 379,748 379,748 {252) (380,000 76 CITY OF ROSEMEAD Street Lighting Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2009 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 - Budgeted Amounts Positive Original Finai Actual (Negative) $ 737,000 737.000 736,213 (787) - - 53,705 53,706 737,000 737,000 789,918 52,918 365,000 365,000 425,946 (60,946 365,000 365,000 425,946 (60,946 372,000 372,000 363,972 (8,028) 2,009,998 2,009,998 2,009,998 - $ 2,381,998 2,381,998 2,373,970 (8,028 77 CITY OF ROSEMEAD Narcotics Forfeiture and Seizure Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2009 Revenues: Investment income Total revenues Change in fund balances Fund balance at beginning of year Fund balance at end of year Budgeted Amounts Original Final Variance - Positive Actual (Negative) $ 600 600 1 (599) 600 600 1 (5 99 600 600 1 (599) 30 30 30 - $ 630 630 31 (599 CITY OF ROSEMEAD Rosemead Housing Development Corporation Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended ,tune 30, 2009 79 Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental $ 421,700 421,700 415,150 (6,550) Investment income - - 140 140 Total revenues 421,700 421,700 415,290 (6,410) Expenditures: Current: General government 694,400 694,400 720,018 (25,618) Total expenditures 694,400 694,400 720,018 (25.618) Excess (deficiency) of revenues over (under) expenditures (272,700 (272,700} (304,728) (32,028) Other financing sources (uses): Transfers in 250 00 20,00 Q 250.000 - Total other financing sources (uses) 250 250,000 250,000 - Change in fund balances (22,700) (22,700) (54,728) (32,028) Fund balance at beginning of year 194,911 194,911 194,911 - Fund balance at end of year $ 172 172,211 140,183 32,028 79 CITY OF ROSEMEAD City Capital Projects Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2009 :t Variance - Budgeted Amounts Positive Original Final Actual (Negative) Expenditures: Current: Public Works $ 1,647,000 1,647,000 569,950 1,077,050 Total expenditures 1,647,000 1,647,000 569,950 1,077,050 Excess (deficiency) of revenues over (under) expenditures (1,647,000) (1,647,000 (569,950) 1,077,050 Other financing sources (uses): Transfers in 1,177,000 1,177,000 569,950 (607,050) Total other financing sources (uses) 1,177,000 1,177,000 569,950 (607,050} Change in fund balances (470,000) (470,000) - 470,000 Fund balance at beginning of year - - - - Fund balance at end of year $ (470,000} (470,000 - 470,000 :t 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, 2009 Revenues Taxes investment income Other Total revenues Expenditures: Current: General government Public safety Budgeted Amounts Original Final Variance - Positive Actual (Negative) $ 6,496,000 6,496,000 5,649,896 (846,104) - - 261,591 261,591 - - 606 606 Debt service: Principal Interest and fiscal charges 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 6,496,000 6,496,000 5,912,093 (583,907 593,000 593,000 103,885 489,115 962,900 962,900 1,016,479 (53,579) 915,000 915,000 915,000 - 1,531,990 1,531,990 1,531,986 4 4,002,890 4,002,890 3,567,350 435,540 2,493,110 2,493,110 2,344,743 (148,367 - (3,258,531 (3,258,531) - (3,258,531 (3,258,531) 2,493,110 2,493,110 (91 3,788) (3,406,898) 3,717,698 3,717,698 3,717,698 $6,210,808 6,210,808 2,803,910 (3,406,898 81 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, 2009 Revenues: Taxes Investment income 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 - Budgeted Amounts Positive Original Final Actual (Negative) $ - - 18,667 18,667 465,600 465,600 6,818 (458,782 465,600 465,600 25,485 (4 40,115 1,625,040 1,625, 040 1,184, 280 440,760 4,955,240 4,955,240 303,371 4,651,869 6,580,280 6,580,280 1,487,651 5,092,629 E6,114,680} (6,114,6180) (1,462,166) 4,652,514 2,330,533 2,330,533 (388,020) (388,020 - - 1,942,513 1,942,513 (6,114,680) (6,114,680) 480,347 6,595,027 3,987,946 3,987,946 3,987,946 - $ (2,126,734) (2,126,734) 4,468,293 6,595,027 :. 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. M . CITY OF ROSEMEAD Combining Statement of Net Assets Internal Service Funds June 30, 2009 84 Vehicle Technology Assets Replacement Replacement Total Current assets: Due from other funds $ 91,804 48,190 139,994 Total assets 91,804 48,190 139,994 Net assets Unrestricted 91,804 48,190 139,994 Total net assets $ 91,804 48,190 139,994 84 CITY OF ROSEMEAD Combining Statement of Revenues Expenses and Changes in Fund Net Assets Internal Service Funds Year ended June 30, 2009 Vehicle Technology Replacement Replacement Total Operating revenues: Charges for services $ 91,804 Total operating revenues 91,804 Changes in net assets 91,804 Net assets at beginning of year W Net assets at end of year $ 91,804 48,190 139,994 48,190 139,994 48,190 139,994 48,190 139,994 85 CITY OF ROS MEAD Combining Statement of Cash Flows - Internal Service Funds Year ended June 30, 2009 i• Vehicle Technology Replacement Replacement Total Net cash provided by (used for) operating activities Net cash provided by (used for) noncapital financing activities - - - 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 - - - Cash and cash equivalents at beginning of year - - - Cash and cash equivalents at end of year Reconciliation of operating income to net cash provided by (used for) operating activities: Operating income (loss) $ 91,804 48,190 139,994 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: (Increase) decrease in due from other funds (91,804) (48,190 (139,994) Total adjustments 91,804) (48,190 (139,994 Net cash provided by operating activities $ - - - i• CITY OF ROSEMEAD Agency Fund Statement of Changes in Assets and Liabilities Fiscal Year ended June 30, 2009 Balance at Balance at June 30, 2008 Additions Deletions June 30, 2009 Assets Cash and investments $ 469,691 121,409 (230,543} 360,557 Total assets $ 469,691 121,409 (230,543 360,557 Liabilities Deposits payable $ 469,691 121,409 (230,543) 360,557 Total liabilities $ 469,691 121,409 (230,543} 360,557 Cpl STATISTICAL SECTION 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 90 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 94 These schedules contain trend information to help the reader asses the government's most significant local revenue source, the property tax. Debt Capacity 98 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 103 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 105 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. .., (This page intentionally left blank) .• CITY OF ROSEMEAD Net Assets by Component Last Six Fiscal Years (accrual basis of accounting) Fiscal Year 2004 2005 2006 2007 2008 2009 Governmental activities! Invested in capital assets, net of related debt $ 10,439,445 12,130,249 13,345,433 10,541 12,981,537 11,828,993 Restricted 6,526,788 6 6,901,454 8. 181,231 11,443,583 13,361,249 Unrestricted 26,498,620 31,114,414 30,299,115 35,293,732 27,705,715 24,882 Total governmental activities net assets $ 43,464,853 49,279,913 50,546,002 54,01.6,569 52,130,835 50 The 013 of Rosemead implemented GASB 34 far the fiscal year ended Jame 39, 2004. Information prior to the implementation of'GASB 34 is not available. 90 CITY OF ROSEMEAD Changes in Net Assets Last Six Fiscal Years (accrual basis of accounting) Fiscal Year 2004 2005 2006 2007 Expenses: 12,289,177 3,747,416 4,589,998 1-411,421 Governmental activities: 949,007 761,410 1,678,791 884,847 General government 4,803,476 $ 4,800,168 5,629,316 4,980,519 Public safety 5,797,080 6 6,065,066 6,618 Public works 2,058,252 3,252,252 3,403,699 6,120,563 Public health 65583 60,828 51,286 Community services 3,121,996 2,862,328 3,223,843 602,114 Community development - - 2,467,842 Parks and recreation 3,201,236 3,456,308 3,959,590 4,178,000 Interest expense 1,854,185 1,830,836 1,832,219 2,698,372 Total governmental activities expenses 20,901,808 22,321,544 24,165,01.9 27,6 66,189 Program revenues: Governmental activities: Charges for services: General government 7,026,282 6,299,415 3,288125 316,849 Public safety 726,345 984,965 900,359 1,598,159 Public works 3,091,146 3,760,495 4,144 7,600,778 Public health - - - - Community services 1,691,586 1,211.615 814,754 1,403,059 Community development - - - 3,206,303 Parks and recreation 287,137 266,398 337,815 - Total governmental activities program revenues 12,822,496 12,52 2,888 9,485,886 14,1 25,148 Net revenues (expenses), Governmental activities Total net revenues (expenses) (8,079 ) _ 9 798,656 (14,67 9 ,133) (13,54 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 Sales and use taxes 2,865,887 3,518,657 3,525,557 2,501,106 Transient occupancy taxes 1,081,174 1,102,756 1,207,298 1,311,697 Other taxes 149,737 765,215 1,076,806 713,821 Intergovernmental / in -lieu VLF 3,165,148 2,966,002 Investment income 187,278 1,260,095 1,930,059 2,028,128 Motor vehicle in -lieu, unrestricted - 1,71606 1,290,667 856,701 Other general revenues - 7,857 32,853 478,473 Total governmental activities 8,225,459 15,613,716 15,94 5,222 17,011,608 2008 7,259,587 8,043,771 13,550,042 12,176, 877 9,081,719 6,465,355 669,827 3,645,207 4,078,631 1,790,348 39 ,037,413 642,716 1,547,182 11,729,725 166,118 1,484.065 36,800 15,606,606 773,374 1,290,108 2,030,698 1,523,391 33,341,522 547,577 1,512,475 7,581,801 858,809 621,375 36,000 11,158,037 (23,430,807 _g2 13,181 ,837 12,289,177 3,747,416 4,589,998 1-411,421 1,272, 092 949,007 761,410 1,678,791 884,847 254,527 195,273 143,748 133,825 21,366,747 20,1 25,622 Changes in net assets Governmental activities Total primary government $ 146,147 $ 5,815,060 $ 1,266,089 S 1470,567 (2,064,060 $ (2,057 863 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. 91 CITY OF ROSEM[EA,.D Fund Balances of Governmental Funds Last Six Fiscal Years (modified accrual basis of accounting) 92 Fiscal Year 2004 2005 2006 2007 2008 2009 General fund: Reserved 353,616 1,719,044 256,765 150,000 3,074,496 3,106 Unreserved 2053,506 19,896,581 22,228.341 22,4 18.633,154 16,13 Total general fund $20,4 07,122 21,615,625 22,485,106 22,610,545 21 19,242,019 All other governmental funds: Reserved S 3,195,415 7,693,216 4,947,087 %000,561 9,000,561 Unreserved, reported in: Special revenue fiends 5,653 208 7,336,247 6,821,660 6,142,833 6,140,289 9,023,487 Debt service funds 32,835 2,354,835 - 552 692,475 2,803,910 Capital projects funds 6,264,457 8,433,842 6,435,798 7,397,454 2,490,553 (54,3 Total all other governmental funds $15,145,915 18,124,924 20,950,674 18,487,926 18,323,878 20,773,635 The City of Rosemead has elected to show only six years of data for this schedule. 92 CITY OF ROSEMEAD Changes in Fund Balances of Governmental funds Last Six Fiscal Years (modified accrual basis of accounting) Fiscal Year Revenues: Taxes Intergovernmental Licenses and permits Charges for services Fines, forfeitures and penalties Special assessments Investment income Other Total revenues Expenditures Current: General government Public safety Public works Community services Community development Parks and recreation Capital outlay Debt service: Principal interest and fiscal charges Payment to bond escrow agent Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): "transfers in Transfers out Proceedsoi'bonds Premium on debt issued Payment to bond escrow agent Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures 2004 2005 2006 2007 2008 2009 $ 9,041,026 $ 9,189,326 $ 9,527,384 $13,648,306 $17,841,792 $17,153 625 &,826,909 14,379,314 10,785,591 9 15,716,610 10,992,235 1,508,009 1,595,115 1,528,864 1,683,204 1,503,659 1 581 550,478 660 414,375 537,430 638,244 589,890 857,135 753,224 437,117 641,566 565,643 - - - 789,089 687,568 736,213 1,372,591 1,260,286 1,947,566 2,028,128 1,678,791 884,847 37 30,316 29,332 478,473 1.41,930 381,429 21, 27,861,970 25,232,851 28,89 38,749,346 32,530 2,965,572 3,023,192 5,797080 6,087,918 3,144,358 5,208,142 65,583 60,828 3,259,505 3,424,954 3,201,236 3,383,358 26,639 184,301 445 465,000 1,859,747 1 20,764,720 23,6 3,790,631 6,536,043 6,064,980 51,286 3,216,935 3,881,469 149,641 490,000 1,559,114 550.323 26 4,780,837 6,737,912 8,898,768 1,419,424 2,690,420 4,249,462 780,000 2,512,725 1,323,238 33,392,786 7,3 56, 665 11,956,179 8,043,771 9,114,009 12,116,508 4,964,867 669,827 783,452 3,408,691 1,047,529 4,078,631 2,030,698 1,647,673 202,752 1,105,000 915,000 1,567,849 1,5 31,986 3 9,994,615 32,546,472 1, 155,590 4,187,512 {1,057,571 (4,494,396 (1,245,269} (15,874) 3,905,993 4,941,103 13,300,319 26,183,078 (3,905.993) (4,941,103) (13,300,319) (26,183,078) - 14,005,000 24,230,000 - 316,830 - - (9,569,028 (22,075,305 2,962,087 4,078,483 (2,962,087) (4,078,483) - - 4,752,802 2,154,695 - - $ 1,155,590 4,187,512 3,695,231 (2,339,701 (1 (15 11.1% 9.8% 99% 16.6% 7,0% 7.6% The City of.Rosernead has elected to show only six years of data for this schedule. 93 CITY OF ROSEMEAD Assessed Value and Estimated Actual Value of Taxable Property Last Tea fiscal Years (in thousands of dollars) Ci Fiscal Year Ended June 30 Secured 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $ 1,733,311,605 1,801,399,282 1,894,448,049 2,017,936,508 2,168,666,818 2,345,083,686 2,561,631,859 2,826,876,615 3,085,354,513 3,277,256,282 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 94 Unsecured $ 44,424,487 48,058,831 49,217,140 50,453,472 52,904,496 57,368,008 64,776,971 55,851,646 61,564,235 66,506,103 Non - Unitary $ 1,415,275 664,802 1,632,754 2,601,128 19,367,174 20,426,612 18,555,208 19,173,832 18,883,761 1.8,883,761 Taxable Assessed Total Direct Value Tax Rate $1,779,151,367 1,850,122,915 1,945,297,943 2,070,991,108 2,240,938,488 2,422,878,306 2,644,964,038 2,901,902,093 3,165,802,509 3,3 62,646,146 20.62% 20.30% 21.07% 20.82% 21.36% 22.57% 21 M% 23.35% 24.57% 25.29% CITY OF ROSEMEAD Direct and Overlapping Property Tax Rates (Rate per $100 of Taxable Value) Last Ten Fiscal Years Notes: t 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, 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. ' 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 Eased on the largest RDA tax rate area (TRA) and includes only rates) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. 'Total Direct hate is the weighted average of all individual direct rates applied by the government preparing the statistical section information, Source: 1 ,A. County Assessor 1999100 - 200 8109 Tax Rate Table and H.DI. Coren & Cone 95 �Last years Agency 1999/00 2000/01 2001/02 2002103 2003/04 2004/05 2005106 2006/07 2007/08 2008/09 Basic Levy 1.00000 1,40400 1,04000 1.00000 1.00000 1.00000 1.40000 1.00000 1.00000 1.00000 Detention Facilities 1987 Debts 0.00142 O.00131 0.00113 0.40103 0.00099 0.00092 4,00080 0.00066 0.00000 0.00000 L.A. Co. blood Control Bonds 0.00176 0.00156 0.00106 0.00088 0.00047 0.00424 0,00005 0.00005 0.00000 000000 San Gabriel Valley Mwd Bonds 0.02540 0,0240D 0,02400 0.02400 0.02200 0.02000 0,02000 0.02000 0.02000 0.01800 El Monte School Districts 0.00000 0.04196 005196 0.46592 0. 05072 0.07246 0.08056 0.06402 0,08067 0.09044 Garvey School Districts 0.00006 0.00000 0.03118 0,05286 0.02471 0.02319 0.05221 0.45075 0,05061 0,06835 Rosemead School Districts 0.06000 0.00000 0.08858 0.40540 0.04517 0.07095 0,07515 0.05420 0.08282 0,06875 El Monte Union H igh School 0.00400 4.00400 4.00000 0.40000 0.03573 0.03928 0.05425 0.45846 0.02820 0,05159 Los Angeles Community College 0.00000 0.00000 0.01600 0.01460 0,01986 0.01810 0.01430 0,02146 0.00878 0.02212 Pasadena Area Community College 0.00000 0.00000 0.00000 0,00000 0.04681 0.04879 0.00410 0.02080 0.01972 0.01741 Rio Hondo Community College 0.04440 0.00000 0.00000 0,00000 0.00000 0.02170 0.01802 0.01469 0,01370 0.02320 Montebello Unified School District 0,03049 0.03423 0.04370 0.03983 0.04077 0.04172 0.07053 0,06731 0.06681 0.08065 San Gabriel Unified School District 0,00000 0.00000 0.00000 0.05803 0.05224 0,05729 0.05284 6,04930 0.05742 0.09293 ]Metropolitan Water District 0.00890 0.00880 0.00770 0.00670 000610 0.00580 0.00520 0.00470 0,00450 0,00430 Total Direct & Overlappitlg Tax Rates 1,06758 1.11186 1.26531 1.26925 1.30556 1.38044 1.44841 1.42640 1.43323 1.53775 City's Share Of I% Levy Per Prop 13 3 0.06682 0.06682 0.06682 0.06682 006682 0.06682 0.06682 0,06682 0,06682 0,06682 General Obligation Debt Rate Redevelopment Rate a 1.01209 1,01167 1,04990 1.00861 1,00755 1.00697 1.00604 1.00541 1.00450 1.00430 Total Direct Rate g G 20615 0.20298 0.21070 0.20818 0,21361 0,22574 0.21893 0,23351 0.24.566 025288 Notes: t 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, 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. ' 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 Eased on the largest RDA tax rate area (TRA) and includes only rates) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. 'Total Direct hate is the weighted average of all individual direct rates applied by the government preparing the statistical section information, Source: 1 ,A. County Assessor 1999100 - 200 8109 Tax Rate Table and H.DI. Coren & Cone 95 CITY OF ROSEMEAD Principal Property Tax Payers Current Year and Nine Years Ago 2008109 Taxpayer Rosemead Place, LLC Walmart Real Estate Business Trust Rosemead Hwang, LLC AFG Investment fund 5 LLC General Electric Credit Auto Auctions, Inc. 420 Boyd Street LLC Macy's California Inc. Southern California Edison Co. California Federal Savings & Loan. Sunshine Inn Aespace America, Inc. May Company Department Stores Hsi Lai University Chicago Title Insurance Company Builder Square LLC H C C Industries, Inc. Tony & Helen Hua Trust, Et. Al. 1999/00 Taxable Assessed Value Rank Percent of Total City Taxable Assessed Value Taxable Assessed Value Rank Percent of Total City Taxable Assessed Value 44,225,721 I 1.32% 39,169,235 2 1.16% 31,570,937 3 0.94% 23,460,000 4 0.70% 20,654,488 5 0.61% 14,863,882 2 0.84% 18,000,000 6 0.54% 16,053,368 7 0.48% 0.00% 15,628,091. 8 0.46% 13,154,503 9 0.39% 9,221,467 5 0.52% 10,086,980 1.0 0.30% 7,469,309 7 0.42% 31,629,317 1 1.78% 1.4,564,858 3 0.82% 11,194,858 4 0.63% 8,330,000 6 0,47% 7,11.0,560 8 0.40% 6,813,151 9 0.38% 6,250,000 10 0.35% Source: Hdl Coren c& Cone, Los An. ;eles County Assessor 2008/09 Combined Tax Rolls. 96 CITE' OF ROSEMEA.D Property Tax levies and Collections Last Ten Fiscal Years * 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 97 Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Percent Subsequent Percent June 30 Fiscal Year Amount of Levy Years Amount of Levy 2000 $ 1,013,510 $1,013,495 100.00% - $1,013,495 100.00% ** 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% * 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 97 CITE' OF ROSEMEAD Ratios of Outstanding Debt by Type Last Ten Fiscal Years Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 These ratios are calculated using personal income and population for the prior calendar yeaj 98 Tax Percentage Debt Allocation of Personal. Per Fiscal Year Bonds Inc o►ne Capita' 1999/00 $ 34,970,000 2.31% 617 2000/01 34,625,000 2.14% 604 2001/02 34,255,000 2.10% 619 2002/03 33,830,000 2.00% 612 2003/04 33,385,000 1.93% 595 2004105 32,920,000 1.65% 580 2005106 37,1.00,000 7.70% 649 2006107 37,455,000 7.30% 655 2007/08 36,350,000 6.74% 633 2008/09 35,435,000 6.41% 617 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 These ratios are calculated using personal income and population for the prior calendar yeaj 98 CITY OF ROSEN EAD Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands, except Per Capita) 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. 99 Tax. Percent of Allocation Assessed Per Fiscal Year Bonds Value Capita _ _ 1999100 34,970 1.97% 617 2000101 34,625 1.87% 604 2001102 34,255 1.76% 619 2002103 33,830 1.63% 61.2 2003104 33,385 1,49% 595 2004105 32,920 1.36% 580 2005106 37,100 1,40% 649 2006107 37,455 1.29% 655 2007108 36,350 1.15% 633 2008109 35,435 1.05% 61.7 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. 99 CITY OF ROSEMEAD Direct and Overlapping Governmental Activities Debt June 30, 2009 * 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: Hdt Coren & Cone, I-A. County Assessor and Auditor Combined 2008 /09 Lien Date Tax Rolls. 100 Percentage Gross Bonded Applicable Net Bonded Debt Balance To City Debt Overlapping Debt Metropolitan Water District S 137 0.322% 441,450 Garvey School District DS 2000 Series A 6,789,903 51.516% 3 Garvey School District DS 2000 Series B 6,344,519 51.516% 3,268,442 Garvey School District 2004 Series 2005 8,913,736 51.516% 4,592,000 Garvey Sch DS 2004 Ser 2006 10,999,898 51.516% 5,666,707 Garvey Sch DS 2004 Ser C 8,997,964 51.516% 4,635 Rosemead Sch Dist DS 2000 Ser A 6,775 69.191% 4,687,690 Rosemead Sch Dist DS 2000 Ser B 9,350,000 69.191% 6,469,359 Rosemead Sch DS 2000 Ser C 6,890,000 69.191% 4,767 El Monte UN H:SD DS 2002 Ser A 4.475,000 14.010% 626.948 El Monte Union III DS 2002 Series B 6.580,000 14.010% 921.858 El Monte Un HSD DS 2006 .Ref Bds 38,005,173 14.010% 5,324,525 El Monte Un Hi DS 2002 Ser C 83,746,269 14.010% 11,732,852 L.A. CCD DS 2001 Ser A 27,815,000 0.316% 87,895 L.A. CCD DS 2003 Ser B 77,040,000 0.316% 243,446 L.A. CCD DS 2003 "Taxable Ser 2004B 23,385 0.316% 73,897 L.A. CCD DS 2001 Taxable Ser 2004A 75,105,000 0.316% 237,332 LACC DS Ref 2001 Series 2005 A 432,345,000 0.316% 1,366,210 LA CCD DS 2001 2006 Series B 383,000,000 0.316% 1,210,280 LA CCD DS 2003, 2006 Series C 308,500 0.316% 974,860 LACC DS 2001, 2008 Ser E -1 276,500,000 0.316% 873,740 LACC DS 2001, 2008'raxable Ser E-2 15,000,000 0.316% 47,400 LACC DS 2003, 2008 Ser F -1 364,915,000 0.316% 1,153,131 LACC DS 2003, 2008 Taxable Ser F -2 425,000,000 0.316% 1,343,000 Pasadena Area CCD DS 2002 Series A 3,715.000 2.616% 97,184 Pasadena CCD DS 2006 Series B 581 2.616% 15,224,597 Pasadena CCD DS 2006 Ref BD Series C 20,763,399 2.616% 543,171 Montebello Unif DS 1998 Series 98 14,079,698 1.429% 201,199 Montebello Unif SD DS 98 Series 99 13,072,854 1.429% 186,811 Montebello USD DS 1998 Series 2001 13,397,827 1.429% 191,455 Montebello USD DS 1998 Series 2004 14,540,273 1.429% 207,781 Montebello Unified DS 1998 Series 2002 13,618,989 1.429% 194,615 Montebello Unif DS 2004 Ser 2005 27,640,000 1,429% 394,976 Montebello Unified DS 2004 Ser 2008 35,000,000 1.429% 500,150 San Gabriel USD DS 2002 Series A 11,087,600 1.339% 148,463 San Gabriel USI3 DS 2002 Series B 6,708 1.339% 89,832 San Gabriel USD I9S 2005 Ref Bonds 17,285,000 1.339/0 231.446 San Gabriel USD DS 2002 Series 2007 C 10,832,878 1.339% 145,052 San Gabriel USD DS 2008 Ser A 20,548,245 1.339% 275,141 Total Overlapping Debt 82,87 2008/09 Assessed Valuation: 52,774,190,090 After Deducting $588,456,056 Redevelopment Increment Debt to Assessed Valutation Ratios: Direct Debt 0.00% Overlapping Debt 2.99% Total Debt 2.99% * 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: Hdt Coren & Cone, I-A. County Assessor and Auditor Combined 2008 /09 Lien Date Tax Rolls. 100 U W i--i fKi ® N � Q � U U W I `D n o h o a Q Q' o 01. N� U1 N N O a, G G � '- � -b v e� C , ' . ^4 C N N u o U \Z'D N � N oc y M � y � 101 v1 oc N O v cC v r n M O M o O C v1l N ^I N rq N I ° h O N u'z M M w q N O O o n N I U 0 U p O� N S G r 4) b(1 C � O U Q G � � •�, bA �i L a p �D o o C� c tin ' i tiC e o I rn c oo w v n n oc :n C7 nl kn C N N ° O C N e n O n O o N G". l O c0 �Y vj v� © cq Ic oo f N oo n r r In ni N c� N © n cr r-I cC It co N M 0T n v ' N N c: �r \ C, \ C, \ O N C> CT S ° �p f� rq N D < o U n o0 oc b0 r" I 00 u a, G G � '- � -b v e� , ' . ^4 i-- C U y � y � 101 00 u a, G G � '- � -b , u i-- C U y � y � w r U U S G r 4) b(1 C � O U Q G � � •�, bA L a p Id w ti ct 3 0 :n CITY OF ROSEMEAD Pledged - Revenue Coverage Last Ten. Fiscal Years (In Thousands) Tax Allocation Bonds Fiscal Year Ended Tax Debt Service lune 30 Increment Principal Interest Coverage 2000 2,990,564 330,000 1,951,663 1.31 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 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. 102 CITE' 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) 1999100 57,328 1,621,007 28,276 5.40% 2000/01 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% 2003/04 56,710 1,991,372 35,115 6.00% 2004/05 57,189 482,011 36,746 4.50% 2005/06 57,144 513,123 39,011 4.60% 2006/07 57,427 539,163 41,875 4.90% 2007108 57,422 552,450 42,916 4.47% 2008109 57,594 N/A NIA 11.10% 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) 103 CITY OF ROSEMEAD Principal Employers Current Year and Nine Years Ago 2009 2000* ' Based upon Employment Development Department's estimate of 24,900 residents employed in 2008 -09. * Information for 2000 is not available. Source: City of Rosemead and Rosemead Chamber of Commerce 104 Percent of Percent of Number of Total Number of Total Employer Employees Employment i Employees Employment Southern California Edison 1 4,000 16.26% - 0.00% Garvey School District 2 953 3.87% - 0.00% Panda Restaurant Group, Inc. 3 400 1.63% - 0.00% Wal -Mart 4 420 1.71% - 0.00% Rosemead School District 5 337 1.37% - 0.00% Hernetic Seal Corporation 6 130 0.53% - 0.00% Irish Construction 7 75 0.30% - 0.00% Target 8 200 0.81% - 0.00% Marge Carson, Inc. 9 80 0.33% - 0.00% Don Bosco Tech 10 90 0.37% - 0.00% Double Tree 11 90 0.37% - 0.00% ' Based upon Employment Development Department's estimate of 24,900 residents employed in 2008 -09. * Information for 2000 is not available. Source: City of Rosemead and Rosemead Chamber of Commerce 104 CITY OF ROSEMEA.D Full -time and Part - titre City Employees by Function Last Ten Fiscal Years 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. 105 Pull -Tune and Part -time Employees as of June 30 Function 2000 2001 2 2003 2004 2005 2006 2007 2048 2009 General government 16 16 19 16 14 15 18 17 19 16 Public safety 1 25 19 16 23 22 17 23 22 34 39 Community development 8 12 6 5 6 6 6 11 23 18 Parks and. recreation 100 101 107 117 97 94 103 101 103 135 Total 149 148 148 161 139 132 150 151 179 208 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. 105 CITY OF ROSEMEAD Operating Indicators by Function Last Ten Fiscal. Years Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Police: Arrests 1,292 1,310 1,299 1,102 1,081 1,230 1,315 1,786 1,506 1,478 Parking citations issued n/a n/a n/a n/a 14,676 18,357 15,176 13,210 1.1,766 1.0,517 Fire: Number of emergency calls n/a 2,634 2,809 2,728 2,733 2,800 2,868 2,994 3,094 1,834 Inspections 117 117 117 117 117 117 117 117 2,518 2,093 Public works: Street resurfacing (miles) 4.9 - 1.7 - 1.3 - 1.3 2.5 1.1 1.1 Parks and recreation: Number of recreation classes 400 400 400 420 450 530 720 775 484 397 Number of facility rentals n/a n/a n/a n/a n/a n/a n/a n/a 540 453 Source: City of Rosemead 106 CITY OF ROSEMEA D Capital Asset Statistics by Function Last "fen fiscal Years Fisca Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Public Safety: Sheriff stations 1 1 1 1 1 l 1 1 1 1 Fire: Fire stations 2 2 2 2 2 2 2 2 2 2 Public works: Streets (miles) 76.80 76.80 76.80 76.80 76.80 76.80 76.$0 76.80 77.55 77.55 Streetlights 2,483 2,571 2,506 2,700 2,700 2,702 2,705 2,706 2,712 2,712 Traffic signals 39 39 39 39 39 39 39 41 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 107 (This page intentionally left blank) m