2011 CAFR@00V oQ
mD 0 D
IYYYlIa AV 1 II V
s sluantaaY
c
Itos
o 0
CITY OF ROSEMEAD
Rosemead California
Comprehensive Annual Financial Report
Fiscal Year Ended June 30 2011
Prepared by the Finance Department
Steve Brisco
Director of Finance
CITY OF ROSEMEAD
Comprehensive Annual Financial Report
Fiscal Year Ended June 30 2011
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal i
Directory of Officials v
Certificate of Achievement for Excellence in Financial Reporting GFOA vi
Organizational Chart vii
FINANCIAL SECTION
Independent Auditors Report 1
Managements Discussion and Analysis Required Supplementary Information 3
Basic Financial Statements
Governmentwide 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 18
Statement of Revenues Expenditures and Changes in Fund Balances 19
Reconciliation of the Statement of Revenues Expenditures and
and Changes in Fund Balances of Governmental Funds 21
Proprietary Funds
Statement of Net Assets 22
Statement of Revenues Expenses and Changes in Fund Net Assets 23
Statement of Cash Flows 24
Statement of Fiduciary Assets and Liabilities Agency Fund 25
Notes to the Basic Financial Statements 26
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information 59
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual General Fund 60
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Low Moderate Income Housing SetAside 61
Schedule of Funding Progress PARS Retirement Enhancement Plan 62
Schedule of Funding Progress Other Post Employment Benefits Plan 62
CITY OF ROSEMEAD
Comprehensive Annual Financial Report
Fiscal Year Ended June 30 2011
TABLE OF CONTENTS continued
Page
FINANCIAL SECTION continued
OTHER SUPPLEMENTARY INFORMATION
Combining Balance Sheet NonMajor Governmental Funds 65
Combining Statement of Revenues Expenditures and Changes in Fund
Balances NonMajor Governmental Funds 68
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Community Development Block Grant 71
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual HOME Program 72
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Proposition A 73
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Proposition C 74
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Federal Highway Grant 75
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual State Gas Tax 76
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Air Quality Management District 77
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Local Transportation 78
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Street Lighting 79
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Narcotics Forfeiture and Seizure 80
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Measure R 81
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Rosemead Housing Development Corporation 82
Major Fund Budget and Actual Schedules
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Redevelopment Agency Debt Service Fund 83
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual Redevelopment Agency Capital Projects Fund 84
Schedule of Revenues Expenditures and Changes in Fund Balances
Budget and Actual City Capital Projects 85
CITY OF ROSEMEAD
Comprehensive Annual Financial Report
Fiscal Year Ended June 30 2011
TABLE OF CONTENTS continued
Page
FINANCIAL SECTION continued
Internal Service Funds
Combining Statement of Net Assets 87
Combining Statement of Revenues Expenses and Changes in Fund
Net Assets 88
Combining Statement of Cash Flows 89
Statement of Changes in Fiduciary Assets and Liabilities Agency Fund 90
STATISTICAL SECTION
Net Assets by Component 92
Changes in Net Assets 94
Fund Balances of Governmental Funds 96
Changes in Fund Balances of Governmental Funds 98
Assessed Value and Estimated Actual Value of Taxable Property 100
Direct and Overlapping Property Tax Rates 101
Principal Property Taxpayers 102
Property Tax Levies and Collections 103
Ratios of Outstanding Debt by Type 104
Ratio of General Bonded Debt Outstanding 105
Direct and Overlapping Governmental Activities Debt 106
Legal Debt Margin 107
PledgedRevenue Coverage 109
Demographic and Economic Statistics 110
Principal Employers 111
Fulltime and Parttime City Employees by Function 112
Operating Indicators by Function 113
Capital Assets Statistics by Function 114
MAYOR
STEVEN LY
MAYOR PRO TEM
SANDRA ARNEENTA
COUNCIL MEMBERS
BILL ALARCON
MARGARET CLARK
POLLY LOW
January 18 2012
C itch Rosemead
8838 E VALLEY BOULEVARD PO BOX 399
ROSEMEAD CALIFORNIA 91770
TELEPHONE 626 5692100
FAX 626 3079218
To the Honorable Mayor Members of the City Council and Citizens of the City of Rosemead
Sound financial practice dictates that all generalpurpose 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 2011
This report consists of managements 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 governments
assets from loss theft or misuse and to compile sufficient reliable information for the
preparation of the City of Rosemeads financial statements in conformity with GAAP Because
the cost of internal controls should not outweigh their benefits the City of Rosemeads
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 Rosemeads financial statements have been audited by Rogers Anderson Malody
Scott LLP 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 2011 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 Rosemeads basic financial statements for the fiscal year
ended June 30 2011 were fairly presented in conformity with GAAP The independent auditors
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 governments 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 Rosemeads separately issued Single Audit
Report GAAP requires that management provide a narrative introduction overview and
analysis to accompany the basic financial statements in the form of Managements Discussion
and Analysis MDA This letter of transmittal is designed to complement the MDA and
should be read in conjunction with it The City of Rosemeads MDA 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 of
Califomia 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 55 square miles
and serves a population of more than 57000 Property tax is levied and collected by the County
of Los Angeles The City and Community Development Commissions portion is remitted to the
City by the County
The City of Rosemead has operated under the councilmanager form of government since
1959 Policymaking 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 commissioners and hiring
the governments manager attorney and clerk The governments manager is responsible for
carrying out the policies and ordinances of the goveming council for overseeing the daytoday
operations of the government and for appointing the heads of the various departments The
council is elected on a nonpartisan basis Council members serve fouryear 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 Rosemeads 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 enforcement and street maintenance The City also has
three blended component units 1 the Rosemead Financing Authority the Authority 2 the
Rosemead Community Development Commission the Commission and 3 the Rosemead
Housing Development Corporation the Corporation 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 1a of the Basic Financial
Statements
The annual budget serves as the foundation for the City of Rosemead and its component unit
financial planning and control All business units and component units of the City of Rosemead
are required to submit requests for appropriation to the City Manager in mid March of each year
The City Manager uses these requests as the starting point for developing a proposed budget
The City Manager then presents this proposed budget to the City Council for review prior to
June 30 The City Council is required to hold public hearings on the proposed budget and to
adopt a final budget no later than June 30 the close of the City of Rosemeads fiscal year The
appropriated budget is prepared by fund and department eg 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 Budgettoactual comparisons are provided in this report for each individual
governmental fund for which an appropriated annual budget has been adopted For the General
Fund and the LowModerate Income Housing SetAside Fund this comparison is presented on
pages 60 61 as part of the basic financial statements for the governmental funds For
governmental funds other than the General Fund and the LowModerate Income Housing Set
Aside Fund with appropriated annual budgets this comparison is presented in the
governmental fund subsection of this report which starts on page 71
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 although 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 fairly well and helped the Citys sales
tax to decline only 97 compared with the same period a year earlier Modest sales tax losses
have helped keep Rosemeads unemployment rate down to 107 whereas the larger Los
Angeles Long Beach and Glendale areas the rate is 123 Major employers are listed in the
statistical section of the accompanying financial report No new major retail establishments
opened during the year but a number of major establishments have signed agreements to
locate in Rosemead or have shown serious interest in doing so in the near future
Longterm Financial Planning On December 8 2009 the City Council approved a strategic
longterm 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 Citys Financial Viability with Balanced Budgets and Prudent Reserves Many of
these goals have been met including capital improvement projects for street resurfacing slurry
sealing curb and ramp improvements and tree planting as well as other park and facility
renovations and improvements On January 10 2012 the City Council approved a new long
term financial plan for the coming two years One of the new strategies that were added is to
complete a formal longterm financial plan for the City The goal of the longterm financial plan
is to identify capital and operating needs over the next ten years and create a plan on how to
fund them and continue to improve the City
Cash Management Policies and Practices Cash temporarily idle during the year was
invested in Federally insured certificates of deposit Federal agency debt issuances and the
State Treasurers Local Agency Investment Fund LAIF In accordance with State law and the
Citys more conservative investment policy all City investments strictly adhere to the following
priorities in order of importance 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 selfinsured
losses to purchase excess insurance and reinsurance and to arrange for grouppurchased
insurance for property and other coverage Additional information can be found in Note 9 found
on pages 50 51 of the Basic Financial Statements
Pension and Other Postemployment Benefits The City of Rosemead is contracted with the
California Public Employees Retirement System CaIPERS for retirement benefits for fulltime
employees Supplemental retirement benefits are offered to qualified fulltime employees
retirees and parttime employees through Public Agency Retirement Services PARS The City
also provides health insurance benefits for certain qualified retirees In accordance with GASB
Statement No 45 additional information on the City of Rosemeads pension arrangements and
postemployment benefits can be found in Note 10 found on pages 52 54 of the Basic
Financial Statements
Dissolution of the Redevelopment Agency On December 29 2011 the California State
Supreme court upheld the ruling that allows the legislature to dissolve redevelopment agencies
The dissolution becomes effective on February 1 2012 thus eliminating nearly 7 million of tax
increment revenue to the City in FY 201112 The State will provide money to the City to pay
existing debt service but the remainder will be redirected to the State The consequence will
be a significantly smaller City budget in FY 201213 with accompanying reductions in programs
service levels and service quality
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 2010 In order to be awarded a Certificate of Achievement the government had to publish
an easily readable and efficiently organized CAM 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 Programs requirements and we are
submitting it to the GFOA to determine its eligibility for another certificate
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire team of the finance and administration departments We would like to
express our appreciation to all members of the departments who assisted and contributed to the
preparation of this report Credit also must be given to the mayor and the governing council for
their unfailing support for maintaining the highest standards of professionalism in the
management of the City of Rosemeads finances
Respectfully submitted
Steven L Brisco
Director of Finance
iv
City of Rosemead
Directory of Officials
June 30 2011
CITY COUNCIL
Steven Ly Mayor
Sandra Armenta Mayor Pro Tern
Margaret Clark Council Member
Polly Low Council Member
William Alarcon Council Member
CITY MANAGEMENT
Jeff Allred City Manager
Matthew E Hawkesworth Assistant City Manager
Stan Wong Community Development Director
Steve Brisco Director of Finance
David MontgomeryScott Director of Parks and Recreation
Chris Marcarello Public Works Director
Lt Tim Murakami Chief of Police
Gloria Molleda City Clerk
Rachel Richman City Attorney
v
Certificate of
Achievement
for Excellence
in Financial
Presented to
City of Rosemead
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30 2010
A Certificate ofAchievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports CAFRs achieve the highest
standards in government accounting
and financial reporting
e jwg
President
0
Executive Director
vi
CITY OF ROSEMEAD
Function Based Organizational Chart
Planning
Commission
City Clerk
i
i
i
i
i
L Assistant
City Manageri
i
i
Technology
Business Support
i
i
i
i
Human
r Resources
i
i
i
i
L Finance
i
i
i
i
i Risk
L Management
City Manager
Traffic
Commission
City Attorney
i
i
i
Public Safety
Community
Development
Public Works
Parks
Recreation
vii
This page intentionally left blank
FINANCIAL SECTION
This page intentionally left blank
73S E Carnegie Dr Suite 100
i San Bernardino CA 92408
909 889 0871 T
909 889 S361 F
amscpa net
PARTNERS
enda L Odle CPA MST
l 11ry P Shea CPA
V k A Franks CPA
tatthew B Wilson CPA MSA
ott W Manno CPA
ena Shanbhag CPA MST
I 7ercher CPA Reared
MANAGERS STAFF
Nancy ORafferty CPA MBA
Bradferd A Welebir CPA MBA
fenny Liu CPA MST
Katie L Mdlsom CPA
Papa Matar Thraw CPA MBA
Maya S Ivanova CPA MBA
Danielle E Odgers CPA
William C Clayton CPA
Peter E Murray CPA
Genivive Schwarzkopf CPA
Megan Hackney CPA
SeongHyea Lee CPA MBA
Charles De Sirnoni CPA
0 iMBERS
I necan Institute of
r tfied Public Accountants
PCPS The AICPA Alliance
for CPA Firms
Governrnentaf Audit
Quality Center
Ifornia Society of
rtihed Public Accountants
ROGERS ANDERSON MALODY SCOTT LLP
CERTIFIED PUBLIC ACCOUNTANTS SINCE 1948
The Honorable Mayor and City Council
City of Rosemead
Rosemead California
INDEPENDENT AUDITORS REPORT
We have audited the accompanying financial statements of the governmental
activities each major fund and the aggregate remaining fund information of
the City of Rosemead California City as of and for the year ended June 30
2011 which collectively comprise the Citys 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 as of June 30 2011 and the respective changes in
financial position and cash flows where applicable thereof for the year then
ended in conformity with accounting principles generally accepted in the
United States of America
As explained in note 14 to the basic financial statements it is uncertain as to
the future continuation of redevelopment agencies a significant component
unit of the City of Rosemead in the State of California as a result of certain
legislative actions enacted by the California State Legislature
During the year under audit the City adopted Governmental Accounting
Standards Board Statement No 54 Fund Balance Reporting and
Governmental Fund Type Definitions
STABILITY ACCURACY TRUST
In accordance with Government Auditing Standards we have also issued a report dated
January 18 2012 on our consideration of the Citys 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
Accounting principles generally accepted in the United States of America require that the
managements discussion and analysis budgetary comparison information and the schedule of
funding progress as listed on the table of contents be presented to supplement the basic
financial statements Such information although not a part of the basic financial statements is
required by the Governmental Accounting Standards Board who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate
operational economic or historical context We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in
the United States of America which consisted of inquiries of the management about the
methods of preparing the information and comparing the information for consistency with
managements responses to our inquiries the basic financial statements and other knowledge
we obtained during our audit of the basic financial statements We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Citys financial statements as a whole The introductory section the
combining and individual nonmajor fund financial statements and the 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 financial statements The combining and individual nonmajor fund
financial statements are the responsibility of management and were derived from and relate
directly to the underlying accounting and other records used to prepare the financial statements
The information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the
financial statements or to the financial statements themselves and other additional procedures
in accordance with auditing standards generally accepted in the United States of America In
our opinion the information is fairly stated in all material respects in relation to the financial
statements 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 do not express an opinion or provide any assurance on them
January 18 2012
Managements Discussion and Analysis
As management of the City of Rosemead we offer readers of the City of Rosemeads financial
statements this narrative overview and analysis of the financial activities of the City of
Rosemead for the fiscal year ended June 30 2011 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 iv of this report All amounts unless
otherwise indicated are in thousands of dollars
Financial Highlights
Beginning in FY 201011 the City implemented the Governmental Accounting
Standards Board GASB Statement No 54 designation Frequent references are
made to GASB Statement No 54 unassigned fund balance which is the rough
equivalent of unreserved undesignated fund balance from prior years There is an
expanded explanation presented later in this report
The assets of the City of Rosemead exceeded its liabilities at the close of the most
recent fiscal year by 50316 net assets Of this amount 10748 unrestricted
may be used to meet the governments ongoing obligations to citizens and creditors
The governments total net assets increased by 3914 84 percent mostly due to
grants for capital projects these will be discussed in greater detail later in this report
As of the current fiscal year the City of Rosemeads governmental funds reported
combined ending fund balances of 38392 an increase of 2333 in comparison
with the prior year Approximately 15 percent of the ending fund balance or 5806
unassigned fund balance is available for spending at the governments discretion
At the end of the current fiscal year unassigned fund balance for the General Fund
was 10209 or 576 percent of total General Fund expenditures
The City of Rosemeads total longterm debt increased by 10203 or 283 percent
during the current fiscal year Major changes in total debt were 1 the issuance of
11230 of tax allocation bonds 2 bond principal payments of 975 and 3 a new
capital lease of 275 to pay for financial software For more detailed information
about the Citys longterm debt please refer to Note 7 Changes in LongTerm
Liabilities found on page 44 of the Basic Financial Report
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Rosemeads
basic financial statements The City of Rosemeads basic financial statements comprise three
components 1 governmentwide 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
Governmentwide Financial Statements The governmentwide financial statements are
designed to provide readers with a broad overview of the City of Rosemeads finances in a
manner similar to privatesector business
The statement of net assets presents information on all of the City of Rosemeads 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
16
The statement of activities presents information showing how the governments 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 eg uncollected taxes and earned but unused
vacation leave
Both of the governmentwide 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 businesstype activities The City of Rosemead does not
have any businesstype 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 governmentwide 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 these component units is reported separately from the
financial information presented for the primary government itself
The governmentwide financial statements can be found on pages 1415 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 financerelated 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 governmentwide financial statements
However unlike the governmentwide financial statements governmental fund financial
statements focus on nearterm 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 governments nearterm financing requirements
Because the focus of governmental funds is narrower than that of the governmentwide financial
statements it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the governmentwide financial statements
By doing so readers may better understand the longterm impact of the governments nearterm
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
The City of Rosemead and its component units maintain 17 active governmental funds
Information is presented separately in the governmental funds balance sheet and in the
governmental funds statement of revenues expenditures and changes in fund balances for the
General Fund LowModerate Income Housing SetAside Fund Debt Service Fund
Redevelopment Agency Capital Projects Fund and City Capital Projects Fund all five of which
are considered to be major funds Data from the other 12 governmental funds are combined
4
into a single aggregated presentation Individual fund data for each of these nonmajor
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 governmental funds A
budgetary comparison statement has been provided for the General Fund LowModerate
Income Housing SetAside 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 Local Transportation Fund Street Lighting Fund
Narcotic Forfeiture and Seizure Fund Measure R Fund Rosemead Housing Development
Corporation Fund Redevelopment Agency Debt Service Fund Redevelopment Agency Capital
Projects Fund and the City 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
Proprietary funds The City uses internal service funds to account for its Equipment
Replacement and Information Technology Replacement Because these services predominantly
benefits governmental rather than businesstype functions they have been included with
governmental activities in the governmentwide financial statements The basic proprietary fund
financial statements can be found on page 22 24 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 governmentwide
financial statements because the resources of those funds are not available to support the City
of Rosemeads 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 25 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 governmentwide and fund financial statements
The notes to the Basic Financial Statements can be found on pages 26 57 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
Rosemeads progress in funding its obligation to provide pension benefits to its employees
Required supplementary information can be found on page 62 of this report
The combining statements referred to earlier in connection with nonmajor 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 beginning on page 65 of this report
In February 2009 GASB released Statement No 54 which substantially altered the focus and
terminology used in fund balance reporting The City was required to implement GASB
Statement No 54 no later than June 30 2011 Therefore the components of fund balance as
directed by Statement No 54 which are used throughout the financial reports are
1 Nonspendable fund balance
2 Restricted fund balance
3 Committed fund balance
4 Assigned fund balance
5 Unassigned fund balance
Governmentwide Financial Analysis
As noted earlier net assets may serve over time as a useful indicator of a governments
financial position In the case of the City of Rosemead assets exceeded liabilities net assets
by 50316 at the close of the most recent fiscal year
A significant portion of the City of Rosemeads net assets 293 percent reflects its investment
in capital assets eg land buildings machinery and equipment less any related outstanding
debt used to acquire those assets The City of Rosemead uses these capital assets to provide
services to its citizens consequently these assets are not available for future spending
Although the City of Rosemeads 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 Rosemeads Net Assets
As of June 30 2011 and 2010
thousands
Current and other assets 49410 42101
Capital assets 52137 44861
Total assets 101547 86962
Longterm liabilities outstanding 46208 36005
Other liabilities 5023 4556
Total liabilities 51231 40561
Net assets
Invested in capital assets net of related debt 14761 12712
Restricted 24807 13199
Unrestricted 10748 20490
Total net assets 50316 46401
An additional portion of the City of Rosemeads net assets 493 percent represents resources
that are subject to external restrictions on how they may be used The remaining balance of
unrestricted net assets 10748 may be used to meet the governments 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 governments net assets increased by 3915 during the current fiscal year The increase
can be credited to the construction of the Splash Zone aquatic facility which will be paid for with
park grant funds from the State
6
Governmental activities Governmental activities increased the City of Rosemeads net
assets by 3915 Contributing to this change in net assets are the following singleoccurrence
events
As mentioned above the construction a new aquatic facility that was paid for entirely
with park grant funds
Less An installment to fund Other Post Employment Benefits OPEB liabilities of
645
City of Rosemeads Changes in Net Assets
Years Ended June 30 2011 and 2010
thousands
Governmental
Activities
2011 2010
Program revenues
Charges for services 3108 2830
Operating grants and contributions 9039 8214
Capital grants and contributions 4252 680
General revenues
Property taxes 13656 12329
Other taxes 5534 6100
Investment income 368 389
Intergovernmental unrestricted 264 169
Other 253 337
Total revenues 36474 31048
Expenses
General government 3160 5992
Public safety 8882 8880
Public works 11907 12891
Community services 596 590
Community development 3969 2141
Parks and recreation 2363 2734
Interest on longterm debt 1682 1492
Total expenses 32559 34720
Increase in net assets before transfers 3915 3672
Tra nsfers
Increase in net assets 3915 3672
Net assets June 30 2010 46401 50073
Net assets June 30 2011 50316 46401
7
Revenues by Source Governmental Activities
Motor vehicle in
Investment income 1 Other revenue 1
F
Transient
taxe
Sales and
19
Expenses and Program Revenues
Governmental Activities
14000000
12000000
10000000
8000000
6000000
4000000
2000000
S S C
ec yaA
aoec Q QJ 5e
a
eo e
sec
J
c ya
Ve L
eCoJJc
Property taxes 68
expenses
revenues
8
Financial Analysis of the Governments Funds
The focus of the City of Rosemeads 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 Rosemeads financing requirements In particular unassigned fund balance may serve
as a useful measure of a governments net resources available for spending at the end of the
fiscal year
At the end of the current fiscal year the City of Rosemeads governmental funds reported
combined fund balances of 38392 an increase of 2333 in comparison with the prior year
Approximately 15 percent of this total amount 5806 constitutes unassigned fund balance
which is available for spending at the governments discretion The remainder of the fund
balance is segregated into nonspendable fund balance restricted fund balance committed fund
balance or assigned fund balance to indicate that it is not available for new spending because it
has already been designated for other purposes
General Fund The General Fund is the chief operating fund of the City of Rosemead At the
end of the current fiscal year the unassigned fund balance of the General Fund was 10209
while total fund balance reached 15319 As a measure of the General Funds liquidity it may
be useful to compare both unassigned fund balance and total fund balance to total fund
expenditures Unassigned fund balance represents 57 percent of total general fund
expenditures while total fund balance represents 86 percent of that same amount
The fund balance of the City of Rosemeads General Fund decreased by 1635 during the
current year Highlights of the change in fund balance are presented below
General Fund revenue increased 625 over last year The main driver relating to
revenue increases came from building permits Southern California Edison
underwent a major facility expansion to their corporate headquarters the expansion
helped increase building permit revenue by 668 or 87 percent over FY 200910
The expansion is now complete and revenues are expected to return to previous
levels
An updated business license fee resolution was approved by City Council which
more than doubled business fee revenue from 51 in FY 200910 to 118 in FY
201011
A comprehensive fee resolution was also adopted by City Council which resulted in a
48 increase over the prior year for planning animal control recreation and aquatic
activities While the revenue increase of 48 may seem small it must be pointed out
that during the year the Citys two public pools were demolished to make way for two
new pools The loss of aquaticbased revenue prevented the 48 increase from
being greater this year The pools will be open FY 201112 and a return of aquatic
based revenue is projected for the coming year
Planned capital expenditures were partially funded with 381 of General Fund
reserves The expenditures included 1 new generator 2 impact fee planning
work 3 playground equipment at various parks 4 planning work for Hellman Park
and 5 a central irrigation control system
Operating cost overruns in the General Services Division were caused by the initial
costs of a new phone system the Finance Department cost overages were caused
by unexpected expenses for data conversion associated with the implementation of
new financial software excess bank charges which were resolved with adjustments
to service levels excess audit costs associated with changing audit firms and
excess printing charges There were additional costs for engineering and building
regulation services that were related to the Edison Company expansion and public
safety costs exceeded budgeted amounts due to labor and benefit costs
General Fund Budget Analysis Overall adjustments to the General Fund revenue budget were
modest just a 18 percent increase The majority of the adjustments were reevaluations of
revenue projections for the full year once six months of actual revenue history was factored into
the estimates The actual revenue variance was 292 or 18 percent more than the adjusted
budget Major contributors to the variance in Tax revenues included a shortfall of 130 in
Transient Occupancy Tax caused by nonpayment of tax by one of the large hotels and a
sluggish travel economy as well as a decline in cable TV franchise fees A positive variance of
178 in Intergovernmental revenues was due to 54 more than what was projected in Vehicle
License Fees and 99 more in Sales Tax Inlieu fees The variances were the outcome of
many variations of projected fees by the State to be passed through to local governments Due
to a large building expansion by Southern California Edison Company an additional 604 than
the original budget was received by the City Charges for Services primarily in the Parks and
Recreation Division were underestimated by approximately 143 Interest earnings were
underestimated by almost 50 percent due to extremely low interest rates and a stagnant
economic recovery The remainder Other revenues was 185 lower than estimated revenue
because of lower than expected collections of law enforcement cost reimbursements crossing
guard reimbursements from the school district and Federal grants for public safety
The General Fund original budget was increased by 1155 The primary contributors to the
increase were 645 appropriation for the Citys unfunded retirement liability an additional 218
for building inspections needed for the Southern California Edison building expansion 172 for
additional building and grounds maintenance 19 for department supplies and 28 for the
purchase of a new service truck Net actual expenditures were 391 more than the amended
budget because the Finance Department overspent 37 for unexpected costs for hiring
replacement City auditors and additional costs for converting existing data for use in the new
finance software system as well as 58 for a new telephone system and department supplies
Public Works was over budget by net 203 due to Park Maintenance overspending Park
Maintenance salaries and benefits had a 114 deficit tree maintenance was 30 over budget
and the water utilities line item was overspent by 52 The Community Development
Department overspent their budget by 224 for plan check fees netted with other line item
savings for a total deficit of 182 The extra plan check services were needed for the Southern
California Edison building expansion Parks and Recreation had aggregate savings of 147
largely because of construction of two new aquatics centers one at Rosemead Park and one at
Garvey Park The pool construction was paid for with redevelopment and grant money but pool
operations were General Fund expenditure There was 190 in savings in the Aquatics Division
because during construction of the pools there were no salary and benefit charges however
Aquatics savings were offset by minor operating cost overruns in other Parks Recreation
divisions
10
Proposition A C and Measure R Funds These three funds are for transportation purposes and
they are all funded with voter approved additions to sales tax Proposition A Fund is used
mainly for public transportation services fixed route bus service and DialARide services
Proposition C has some transportation elements to it but it is focused more on transportation
infrastructure maintenance purposes Measure R mainly focuses on new transportation
infrastructure development Combined revenues in these three funds have increased 205 or
113 percent over FY 200910 Since the transportation taxes are an enhancement to sales tax
we can see that consumer sales are beginning to increase an early sign of economic recovery
Expenditures for the Proposition A Fund are increasing as greater efforts are being made to
increase fixed route ridership as are the operating expenditures for DialARide in the
Proposition C Fund The Proposition C Fund had capital expenditures of 329 in FY 200910
that were not repeated in FY 201011 as the focus is back to operations Measure R the
newest of the funds is beginning to spend its revenue for future project planning
LowModerate Income Housinq Fund The LowModerate Income Housing Fund LowMod
Fund including transfers finished the year with a 333 increase in fund balance The Low
Mod Fund received its funding primarily from transfers of property tax increment from the
Community Development Commission and then transferred 355 to the Rosemead Housing
Development Corporation a low income senior housing corporation to subsidize operations of
the Corporations senior low income housing apartments As a FY 201112 budget balancing
measure the California legislature and the Governor voted to eliminate redevelopment
agencies By doing so the LowModerate Income Housing Fund will be eliminated Without
funding from the LowModerate Income Housing Fund the future of the Housing Corporation is
uncertain
Equipment Replacement and Technology Replacement Funds As a City budget balancing
measure departments were not charged an internal service fund allocation in FY 200910 In
FY 201011 the internal service fund allocations resumed There were charges to using
departments during the year of 120 and operating expenses of 86 Using departments are
assessed charges for equipment they use 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 increased fund balance by 6488
from prior year The major elements in the change of fund balance were the construction of a
new aquatics facility at Rosemead Park for 2713 miscellaneous capital projects totaling
1601 for various capital projects and other operating charges as well as the issuance of tax
allocation bonds totaling 11230
As discussed in the LowModerate Income Housing Fund section the California State
legislature and the Governor have passed legislation dissolving all redevelopment agencies as
a means of reducing the State budget deficit The consequence will be the confiscation of most
redevelopment assets during the 201112 fiscal year by the State and dissolution of the Agency
Capital Assets and Debt Administration
Capital assets The City of Rosemeads investment in capital assets for its governmental
activities as of June 30 2011 amounts to 52137 net of accumulated depreciation This
investment in capital assets includes land buildings and improvements machinery and
equipment park facilities roads highways bridges and construction in progress
11
Major capital asset events during the current fiscal year included the following
Construction of the Rosemead Park Aquatic Facility
Construction of the Splash Zone Aquatic Facility
Freeway overpass beautification project
City of Rosemeads Capital Assets
net of depreciation
thousands
Governmental Activities
2011 2010
Land 2969 2969
Buildings 16054 16612
Improvements other than
Buildings 567 81
Machinery and equipment 170 215
Autos and trucks 375 349
Furniture and office equipment 67 108
Infrastructure 24503 24144
Construction in progress 7432 384
Total 52137 44862
Additional information on the City of Rosemeads capital assets can be found in Note 6 found
on pages 43 44 of the Basic Financial Report
Longterm debt At the end of the current fiscal year the Rosemead Community Development
Commission had total bonded debt outstanding of 44745 Of this amount all of it is backed by
future property tax increment revenues
City of Rosemeads Outstanding Debt
Revenue Bonds
thousands
Tax
ernmental Activities
1 2010
745
The Rosemead Community Development Commissions total bonded debt increased by10255
during the current fiscal year due to debt service payments of 975 and the issuance of tax
allocation bonds of 11230 leaving bonded indebtedness at 44745 For more detailed
information about the Citys longterm debt please refer to Note 7 Changes in LongTerm
Liabilities beginning on page 44 of the Basic Financial Report
12
Economic Factors and Next Years Budgets and Rates
As discussed throughout this Managements Discussion and Analysis report there were
modest revenue increases in the FY 201112 budget Accordingly the budget was
balanced using such items as the sale of Proposition A surplus funds and careful
reductions to service delivery Sales tax in the City has remained remarkably stable with
only a small decline projected for budget purposes
At the time the FY 201112 budget was being prepared State legislators and the
Governor had not revealed their budget balancing scheme of dissolving redevelopment
agencies and confiscating the Agency assets Therefore the balance is adjusted
charging some staffing to redevelopment and funding projects and programs with
redevelopment money Prior to the dissolution of redevelopment agencies all of these
factors were considered in preparing the City of Rosemeads budget for the 2011 fiscal
year The operating budget was balanced without the use of reserves
Requests for Information
This financial report is designed to provide a general overview of the City of Rosemeads
finances for all those with an interest in the governments finances Questions concerning any
of the information provided in this report or requests for additional financial information should
be addressed to the Office of the Director of Finance 8838 East Valley Boulevard Rosemead
CA 91770
13
CITY OF ROSEMEAD
Statement of Net Assets
June 30 2011
Governmental
Activities
Assets
Cash and investments note 2 35788364
Receivables
Accounts 6320301
Interest 38549
Notes 1364142
Prepaid expenses 863171
Deferred charges 628120
Land held for resale 4407616
Capital assets note 6
Land 2968824
Construction in progress 7431882
Other capital assets net 41735938
Total assets 101546907
Liabilities
Accounts payable and accrued liabilities 3785704
Accrued salaries and benefits 298165
Retentions payable 395603
Accrued interest payable 402454
Unearned revenue 141108
Noncurrent liabilities note 7 to 9
Due within one year 1581546
Due in more than one year 44626736
Total liabilities 51231316
Net assets
Invested in capital assets net of related debt 14760940
Restricted for
Public safety 2655692
Public works 9672504
Community service 94416
Low and moderate housing 6841367
Debt service 5542423
Unrestricted 10748249
Total net assets 50315591
The accompanying notes are an integral part of these financial statements
14
CITY OF ROSEMEAD
Statement of Activities
Fiscal Year Ended June 30 2011
Net expense
revenue and
changes in
Program Revenues net assets
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Governmental activities
General government 3160306 362029 686698 2111579
Public safety 8881926 303102 249040 741382 7588402
Public works 11907245 154506 5478481 3510324 2763934
Community services 595904 34053 415951 145900
Community development 3969502 1558531 2195081 215890
Parks and recreation 2362860 634070 20367 1708423
Interest and other charges 1681875 1681875
Total governmental activities 32559618 3046291 9045618 4251706 16216003
General revenues
Taxes
Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Motor vehicle in lieu unrestricted
Investment income
Other
Total general revenues
Change in net assets
Net assets beginning of year
Net assets end of year
13656347
3737363
1219977
576904
263983
367961
307658
20130193
3914190
46401401
50315591
The accompanying notes are an integral part of these financial statements
15
CITY OF ROSEMEAD
Governmental Funds
Balance Sheet
June 30 2011
Assets
Cash and investments note 2
Receivables
Accounts
Interest
Notes
Prepaid items
Due from other funds note 4
Land held for resale
Advances to other funds
Total assets
Liabilities and Fund Balances
Liabilities
Accounts payable and accrued liabilities
Accrued salaries and benefits
Retentions payable
Due to other funds note 4
Deferred revenue
Advances from other funds note 4
Total liabilities
Fund balances
Nonspendable
Restricted for
Public safety
Public works
Community services
Low and moderate income housing
Debt service
Committed
Unassigned
Total fund balances deficit
Total liabilities and fund balances
General
Special Revenue Debt Service
LowModerate
Income Housing Redevelopment
SetAside Agency
11177197
1279879
28775
1079277
2034
4494551
2342659
2157
4477945
10 044 954
376350
1533
18061713 6822761 10422837
1573825 1814 15
158842
25153
1009974
4477945
2742641 26967 4477960
2034
5107 963
10209 075
6795794
5944877
15319072 6795794 5944877
18061713 6822761 10422837
The accompanying notes are an integral part of these financial statements
16
Capital Projects
Redevelopment NonMajor
Agency City Governmental
3365822
56862 3919755
4523
226314
647283
4407616
Totals
8587798 35518430
687455 6320301
1561 38549
58551 1364142
2034
5141834
4407616
4477945
8061137 4567038 9335365 57270851
856740 789701 408440 3630535
100000 11299 28024 298165
372535 23068 395603
702325 3467733 961835 5157046
53315 3793895 62184 4919368
4477945
1712380 8435163 1483551 18878662
2034
2655692
6348757 51590972
94416
45573
3868125 534839
6348757 3868125 7851814
8061137 4567038 9335365
2655692
11939729
94416
6841367
5944877
5107963
5806111
38392189
57270851
17
This page intentionally left blank
CITY OF ROSEMEAD
Governmental Funds
Reconciliation of the Balance Sheet of
Governmental Funds to the Statement of Net Assets
June 30 2011
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net assets
are different because
Capital assets net of depreciation have not been included as financial
resources in the governmental fund activity
Capital assets
Accumulated depreciation
Long term debt and compensated absences that have not been included
in the governmental fund activity
Compensated absences
Retrospective deposits payable
Unamortized bond premiums
Capital leases payable
Tax allocation bonds
Costs associated with the issuance of debt are capitalized and amortized
in the statement of net assets and expensed in the governmental funds
Deferred charges
Discount on bonds
Accrued interest payable for the current portion of interest due on bonds
payable has not been reported in the governmental funds
Longterm assets that are not available for current use Amounts are not
reported in the governmental funds
Revenues that are measurable but not available Amounts are recorded as
deferred revenue under the modified accrual basis of accounting
89264479
37359371
505394
623456
217820
36007
44745000
628120
181054
402454
861137
4778260
Internal service funds are used by management to charge the costs of
certain activities such as equipment management to individual funds
The assets of the internal service funds must be added to the statement
of net assets 99854
Net assets of governmental activities
38392189
50315591
The accompanying notes are an integral part of these financial statements
18
CITY OF ROSEMEAD
Governmental Funds
Statement of Revenues Expenditures and Changes in Fund Balances
Fiscal Year Ended June 30 2011
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
Bond issuance costs
Total expenditures
Excess deficiency of revenues
over under expenditures
Other financing sources uses
Transfers in note 4
Transfers out note 4
Discount on bonds
Issuance of longterm debt
Total other financing
sources and uses
Net change in fund balances
General
12419519
751955
1764162
677861
462389
156032
245382
Special Revenue
LowModerate
Income Housing
SetAside
S
6268
Debt Service
Redevelopment
Agency
6893575
56578
16477300 6268 6950153
3684113
7253698
2762543
163742
1410 866
2362860
93121
292372
115623
995468
975000
1882092
17730943 292372 3968183
1253643 286104 2981970
974464 1133461
381241 355000 974464
381241 619464 158997
1634884 333360 3140967
Fund balances defecit beginning of year 16953956 6462434 2803910
Fund balances deficit end of year 15319072 6795794 5944877
The accompanying notes are an integral part of these financial statements
19
Capital Projects
Redevelopment NonMajor
Agency City Governmental Totals
19313094
1715181 6916120 9383256
1764162
677861
462389
741382 741382
59176 89902 367956
7997 253379
67173 1715181 7747404 32963479
1750 3801486
633749 8882915
5803685 7601816 3234880 19402924
432162 595904
1693834 3397072
2362860
93121
975000
1882092
275344 275344
6080779 7601816 5994625 41668718
6013606 5886635 1752779 8705239
2361994 355000 4824919
1677344 1436870 4824919
192139 192139
11230000 11230000
9360517 2361994 1081870 11037861
3346911 3524641 670909 2332622
3001846 343484 7180905 36059567
6348757 3868125 7851814 38392189
20
CITY OF ROSEMEAD
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 2011
Net change in fund balances total governmental funds 2332622
Amounts reported for governmental activities in the statement of activities
differs from the amounts reported in the statement of activities because
Governmental funds report capital outlays as expenditures However in
the statement of activities the costs of those assets is allocated over
their estimated useful lives as depreciation expense This is the amount
by which depreciation exceeded capital outlays in the current period
Capital outlays 9215562
Depreciation 2137513
The issuance of longterm debt provides current financial resources to
governmental funds while the repayment of the principal of longterm
debt consumes the current financial resources of governmental funds
Neither transaction however has an effect on net assets
Principal payments on debt 975000
Proceeds from longterm debt 11230000
Discount on issuance 192139
Cost of issuance 275344
Some expenses reported in the statement of activities do not require the
use of current financial resources and therefore are not reported as
expenditures in governmental funds
Increase in OPEB asset 536299
Decrease in accrued interest payable 193372
Amortization of bond issuance costs 68059
Amortization of issuance discounts 11085
Amortization of bond premiums 19802
Compensated absences and retrospective deposits payable expenses
reported in the statement of activities do not require the use of current
financial resources and therefore are not reported as expenditures in
governmental funds
Decrease in retrospective deposits payable 96095
Increase in compensated absences payable 17630
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds 3510324
Internal service funds 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 are reported with
governmental activities 31918
Change in net assets of governmental activities 3914190
The accompanying notes are an integral part of these financial statements
21
CITY OF ROSEMEAD
Statement of Net Assets
Internal Service Funds
June 30 2011
Current assets
Cash and investments 269934
Due from other funds 15212
Total current assets 285146
Noncurrent assets
Capital assets
Other capital assets net note 6 231536
Total noncurrent assets 231536
516682
Current liabilities
Accounts payable
Lease payable current
Total current liabilities 206017
Noncurrent liabilities
Lease payable 210811
Total noncurrent liabilities 210811
Total liabilities 416828
Net assets
Invested in capital assets
net of related debt 30123
Unrestricted 129977
Total net assets 99854
The accompanying notes are an integral part of these financial statements
22
CITY OF ROSEMEAD
Statement of Revenues Expenses and Changes in Fund Net Assets
Internal Service Funds
Fiscal Year Ended June 30 2011
Operating revenues
Charges for services 119576
Total operating revenues 119576
Operating expenses
Contractual services 47202
Depreciation 38589
Total operating expenses 85791
Operating income 33785
Nonoperating revenues expenses
Investment income 5
Interest expense 1872
Total nonoperating revenues expenses 1867
Changes in net assets 31918
Net assets beginning of year 67936
Net assets end of year 99854
The accompanying notes are an integral part of these financial statements
23
CITY OF ROSEMEAD
Statement of Cash Flows
Internal Service Funds
Fiscal Year Ended June 30 2011
Cash flows from operating activities
Cash received from users departments 104364
Cash payments to suppliers for goods and services 49216
Net cash provided by operating activities 55148
Cash flows from capital and related financing activities
Proceeds from capital lease 275603
Principal paid on capital lease 13944
Interest paid on capital lease 1872
Cash paid to purchase capital asset 115241
Net cash provided by capital and related financing activities 144546
Cash flows from investing activities
Interest on investment 5
Net cash provided by investing activities
Net increase in cash and investments 199699
Cash and investments beginning of year 70235
Cash and investments end of year 269934
Reconciliation of operating income to net cash
provided by operating activities
Operating income 33785
Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation 38589
Increase decrease in due from other funds 15212
Increase decrease in accounts payable 2014
Total adjustments 21363
Net cash provided by operating activities 55148
Noncash capital financing and investing activities
Capital asset acquired through accounts payable 154884
The accompanying notes are an integral part of these financial statements
24
CITY OF ROSEMEAD
Statement of Fiduciary Assets and Liabilities
June 30 2011
Assets
Cash and investments
Accounts receivable
Total assets
Liabilities
Deposits payable
Total liabilities
591716
5758
597474
597474
597474
The accompanying notes are an integral part of these financial statements
25
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
1 Summary 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 CouncilCity 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 organizations 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 ie 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 Citys 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
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
26
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
1 Summary of Significant Accounting Policies continued
a Reporting Entity continued
Rosemead Community Development Commission
The Commissions 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
moderateincome housing It is a California nonprofit benefit corporation organized
under Section 501c3 of the Internal Revenue Code
Since the City Council andor other City officials serve as the Governing Board for
these component units all of the Citys component units are considered to be
blended component units Blended component units although legally separate
entities are in substance part of the Citys 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
b Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following
Governmentwide 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
27
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
1 Summary of Significant Accounting Policies continued
b Basis of Accounting and Measurement Focus continued
Governmentwide Financial Statements
Governmentwide 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 businesstype activities of the primary
government including its blended component units as well as its discretely
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
Governmentwide 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 longterm
economic resources and obligations of the reporting government are reported in
the governmentwide 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 exchangelike
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
Program revenues include charges for services special assessments and
payments made by parties outside of the reporting governments 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
governmentwide financial statements rather than reported as an expenditure
Proceeds of longterm debt are recorded as a liability in the governmentwide
financial statements rather than as other financing source Amounts paid to reduce
longterm indebtedness of the reporting government are reported as a reduction of
the related liability rather than as an expenditure
28
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
1 Summary of Significant Accounting Policies continued
b Basis of Accountinq and Measurement Focus continued
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 governments governmental proprietary
and fiduciary funds are presented after the governmentwide financial statements
These statements display information about major funds individually and non major
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
custodial capacity for other individuals or organizations
Governmental Funds
In the fund financial statements governmental funds are presented using the
modifiedaccrual 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
Revenue recognition is subject to the measurable and available criteria for the
government funds in the fund financial statements Exchange transactions are
recognized as revenues in the period in which they are earned ie 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 nonexchange 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
Governmentmandated and voluntary nonexchange transactions are recognized
as revenues when all applicable eligibility requirements have been met
29
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
1 Summary of Significant Accounting Policies continued
b Basis of Accounting and Measurement Focus continued
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
Noncurrent portions of longterm 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
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 longterm 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
longterm debt are recorded as other financing sources rather than as a fund
liability Amounts paid to reduce longterm indebtedness are reported as fund
expenditures
When both restricted and unrestricted resources are combined in a fund
expenditures are considered to be paid first from restricted resources and then
from unrestricted resources
Fiduciary Funds
The Citys 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
30
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 302011
1 Summary of Significant Accounting Policies continued
c Major and Fiduciary Fund Types
The Citys 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
LowModerate Income Housing SetAside 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 longterm 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
City Capital Projects Fund Accounts for financial resources to be used for the
acquisition and construction of major capital facilities within the City
Internal Service Funds These funds are used to account for vehicle and
technology replacement Departments of the City are charged for the services
provided or benefits received from these funds
The Citys Fiduciary Fund is as follows
Agency Fund Accounts for the assets held in a trustee capacity or as an agent
The cash being held primarily represents amounts placed on deposit for refundable
permits and performance bonds The Agency Fund is custodial in nature and does
not present results of operations or have a measurement focus
d Investments
For financial reporting purposes investments are adjusted to their fair value
whenever the difference between fair value and the carrying amount is material
31
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
1 Summary of Significant Accounting Policies continued
d Investments continued
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 funds 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 funds average cash
and investment balance
e Cash Equivalents
For purposes of the statement of cash flows cash equivalents are defined as
shortterm 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
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 10000 are capitalized if they have an expected useful life of one year or more
years
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 straightline method in the governmentwide 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
32
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
1 Summary of Significant Accounting Policies continued
f Capital Assets continued
The following schedule summarizes capital asset useful lives
Buildings 50 years
Improvements other than buildings 15 years
Machinery and equipment 7 years
Autos and trucks 5 years
Furniture and office equipment 7 years
Infrastructure
Bridges 50 years
Sewer system and storm drain system 50100 years
Medians and sidewalks 40 years
Traffic signals 30 years
Streets 20 years
g Compensated Absences
Vacation and sick leave pay are payable to employees at the time used or upon
termination of employment All vacation is accrued when incurred in the
governmentwide level financial statements Sick pay is accrued to the extent it is
probable that the benefits will result in termination payments ie rather than be
taken as absences due to illness or other contingencies such as medical
appointments and funerals
The sick leave liability is estimated based on the Citys 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 BuyBack Program an employee must take at least 40 consecutive
hours of vacation at one time
33
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
1 Summary of Significant Accounting Policies continued
h Prepaid Items
Prepaid items are reported
method and are offset by a
that they are not available
resources
i Fund Equity
in the governmental fun
nonspendable designation
for appropriation and ar
is under the consumption
in fund balance to indicate
not expendable financial
The City implemented GASB Statement No 54 Fund Balance Reporting ano
Governmental Fund Type Definitions during the year ended June 30 2011 This
statement provides more clearly defined fund balance categories to make the
nature and extent of the constraints placed on a governments fund balance more
transparent The following classifications describe the relative strength of the
spending constraints placed on the purposes for which resources can be used
Nonspendable amounts that are not in a spendable form such as inventory
or are required to be maintained intact
Restricted amounts constrained to specific purposes by their providers such
as grantors bondholders and higher levels of government through
constitutional provisions or by enabling legislation
Committed amounts constrained to specific purposes by a government itself
using the highest level of decisionmaking authority to be reported as
committed amounts cannot be used for any other purpose unless the
government takes the same highest level action to remove or change the
constraint
Assigned amounts a government intends to use for a specific purpose intent
can be expressed by the governing body or by an official or body to which the
governing body delegates the authority
Unassigned amounts that are for any purpose positive amounts are reported
only in a general fund
The City Council establishes and modifies or rescinds fund balance commitments
by passage of an ordinance or resolution The City Council has designated the
Finance Committee and City Manager as the City officials to determine define and
make the necessary account or fund transfers for the amounts to those
components of fund balance that are classified as Assigned Fund Balance
When both restricted and unrestricted resources are available for use when an
expenditure is incurred it is the Citys policy to use restricted resources first then
unrestricted resources as they are needed It is the Citys policy to consider
committed amounts as being reduced first followed by assigned amounts and
then unassigned amounts when expenditures are incurred for purposes for which
amounts in any of those unrestricted fund balance classifications could be used
34
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
1 Summary of Significant Accounting Policies continued
0 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
k LowModerate Income Housing SetAside
On October 9 1991 the Commission prepaid its housing obligation in the amount
of 6813850 from proceeds from its 1987 tax allocation notes This prepayment
was restructured in 1993 along with the 1993 series tax allocation bonds As a
result the Commissions housing obligation has been reduced by 469142 per
year until the 202122 fiscal year
2 Cash and Investments
Cash and investments as of June 30 2011 are classified in the accompanying financial
statements as follows
Statement of Net Assets
Cash and investments 35788364
Statement of Fiduciary Assets and Liabilities
Cash and investments 591716
Total cash and investments 36380080
Cash and investments as of June 30 2011 consist of the following
Deposits with financial institutions 10042476
Investments 26 337604
Total cash and investments 36380080
35
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
2 Cash and Investments continued
Investments Authorized by the California Government Code and the Citys Investment
Policy
The table below identifies the investment types that are authorized for the City by the
California Government Code and the Citys investment policy The table also identifies
certain provisions of the California Government Code or the Citys 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 Citys investment policy
Authorized
by Maximum Maximum
Investment Types Investment Maximum Percentage Investment in
Authorized by State Law Policy Maturity of Portfolio One Issuer
US Treasury Obligations Yes 5 years None None
US Agency Securities Yes 5 years None None
Bankers Acceptances Yes 270 days 40 10
Commercial Paper Yes 270 days 25 10
Negotiable Certificate of Deposit Yes 3 year 30 None
Repurchase Agreements No NIA NIA NA
Reverse Repurchase Agreements No NA NA NA
MediumTerm Notes Yes 3 years 15 10
Money Market Mutual Funds Yes NA None None
Local Agency Investment Funds LAIF Yes NA None None
Based on state law requirements or investment policy requirements whichever is more
restrictive
36
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
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 Citys 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
Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer
US Treasury Obligations 5 years None None
US Agency Securities 5 years None None
Bankers 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 purchasing a
combination of shorter term and longer term investments and by timing cash flows from
maturities so that a portion of the portfolio is maturing or coming close to maturity evenly
over time as necessary to provide the cash flow and liquidity needed for operations
Information about the sensitivity of the fair values of the Citys investments including
investments held by bond trustee to market interest rate fluctuations is provided by the
following table that shows the distribution of the Citys investments by maturity
37
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
2 Cash and Investments continued
Investment Type
State investment pool
Certificates of deposits
US agency securities
Held by bond trustee
Money market mutual funds
Certificates of deposit
Total
Total
Remaining Maturity in months
12 months 13 to 24 25 to 60
or less months months
21 089 353 21 089 353
1483 526 490000 490000 503526
1497500 1497500
1144 225 1144 225
1123000 1123000
26337604 22723578 490000 3124026
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 Citys
investment policy or debt agreements and the actual rating as of year end for each
investment type
Rating as of Year End
Minimum
Legal
Investment Type Total Rating AAA Not Rated
State investment pool 21089353 NA 21089353
Certificates of deposits 1483526 NA 1483526
US agency securities 1497500 AAA 1497500
Held by bond trustee
Money market mutual funds 1144225 NA 1144225
Certificates of deposit 1123 000 1123 000
Total 26337604 2641725 23695879
38
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
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 eg brokerdealer 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 Citys 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 2011 the City had
no deposits with financial institutions in excess of federal depository insurance limits held
in uncollateralized accounts
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund LAIF that is
regulated by the California Government Code under the oversight of the Treasurer of the
State of California The fair value of the Citys investment in this pool is reported in the
accompanying financial statements at amounts based upon the Citys prorata 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
39
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
3 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 yearend
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 Rosemeads 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
40
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
4 Interfund Receivables and Payables
Current interfund receivables and payables balances at June 30 2011 are as follows
Due from other funds Due to other funds Amount
General Fund LowModerate Income
Redevelopment Agency
Capital Projects Fund
City Capital Projects Fund
NonMajor Governmental Funds
City Capital Projects Fund Redevelopment Agency
Capital Projects Fund
NonMajor Governmental Funds
Proprietary Funds NonMajor Governmental Funds
Redevelopment Agency
Capital Projects Fund
Total
A Shortterm borrowing to cover temporary cash deficits
25153
98563
3467733 A
903102 A
4494 551
599351
47932
647283
10801
4411
15212
5157046
Noncurrent interfund receivable and payable balances at June 30 2011 are as follows
Advances from other funds Advances to other funds
Redevelopment Agency LowModerate Income
Debt Service Fund Housing SetAside
Total
Amount
4477945 A
4477945
41
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
4
5
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 moderateincome housing The Commission
has made findings that for the years ended June 30 1986 through 1991 it was
allowed to defer funding of the setaside The setaside 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 Commissions adoption of the
housing deficit repayment plan As of June 30 2011 the accumulated set aside
amount not yet funded was 4477945 As required by law the Commission
devised a plan to fund the accumulating amount
Interfund Transfers
Interfund transfers were as follows for the year ended June 30 2011
Transfers In Transfers Out
City Capital Projects Fund General Fund
Redevelopment Agency
Capital Projects Fund
NonMajor Governmental Funds
LowModerate Income
Housing SetAside
Redevelopment Agency
Debt Service Fund
Redevelopment Agency
Debt Service Funds
Redevelopment Agency
Capital Projects Fund
LowModerate Income
NonMajor Governmental Funds Housing SetAside
Total
Am ount
381241
543883
1436870
2361994 A
974464 B
1133461 P
355000
4824919
The following describes the significant transfers in and transfers out included in the
financial statements
A To subsidize various programs and capital projects
B To record the low and moderate income housing setaside for the year ended
June 30 2011
C To record the Series 2010A Tax Allocation Bond proceeds deposited into the
2010 Debt Service Reserve Fund
42
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
6 Capital Assets
Capital asset activity was as follows for the year ended June 30 2011
Beginning Ending
Governmental activities balance Additions Deletions balance
Capital assets not being depreciated
Land 2968824 2968824
Construction in progress 383536 7431882 383536 7431882
Total capital assets not being 3352360 7431882 383536 10400706
Capital assets being depreciated
Buildings 23 994 956 23 994 956
Improvements other than buildings 1027097 612606 1639703
Machinery and equipment 1013935 1013935
Autos and trucks 866298 61128 927426
Furniture and office equipment 2501386 2501386
Infrastructure 47327022 1729470 49056492
Total capital assets being depreciated 76730694 2403204 79133898
Less accumulated depreciation for
Buildings 7383199 557378 7940577
Improvements other than buildings 946473 126509 1072982
Machinery and equipment 798659 45510 844169
Autos and trucks 517539 35361 552900
Furniture and office equipment 2393202 41108 2434310
Infrastructure 23182786 1370236 24553022
Total accumulated depreciation 35221858 2176102 37397960
Total capital assets being depreciated net 41508836 227102 41735938
Governmental activities capital assets net
of accumulated depreciation 44861196 7658984 383536 52136644
43
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
6
7
Capital Assets continued
Depreciation expense was charged to functionsprograms of the primary government as
follows
Governmental activities
Public works
Community development
Total depreciation expense
Changes in LongTerm Liabilities
1670990
505112
2176102
Longterm debt consists of the following at June 30 2011
Governmental activities
Bonds
Tax Allocation Bonds
Series 2006A
Tax Allocation Bonds
Series 2006B
Tax Allocation Bonds
Series 2010A
Beginning
Balance Additions
10700000
23 790 000
Ending Due in
Deletions Balance One Year
Subtotal bonds
Deferred amounts
Unamortized bond
premiums
Discount on issuance
Total bonds
900000 9800000 930000
75000 23 715 000 80000
11230000 11230000 200000
34 490 000 11 230000 975000 44 745 000 1210000
237622 19802 217820 19802
192139 11085 181054 14780
34727622 11037861 983717 44781766 1215022
Capital lease 70144 34137 36007 36007
Computer lease 275000 13341 261659 50848
Retrospective deposit 719551 96095 623456 62350
Compensated absences 487764 265661 248031 505394 217319
Total longterm debt 36005081 11578522 1375321 46208282 1581546
The City records expenditures related to compensated absences through the Citys
General Fund
44
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
7 Changes in LongTerm Liabilities continued
Capital Lease
In 2010 the City entered into a lease agreement for the acquisition of an aerial lift truck
The lease agreement qualifies as a capital lease for accounting purposes title transfer
at end of lease and therefore has been recorded at the present value of the future
minimum lease payments as of the date of inception The equipment acquired during the
fiscal year under this lease agreement is recorded at its acquisition cost of 102851
The outstanding balance at June 30 2011was 36007
In 2011 the City entered into a lease agreement for the acquisition of finance computer
software The lease agreement qualifies as a capital lease for accounting purposes and
therefore has been recorded at the present value of the future minimum lease payments
as of the date of inception The equipment acquired during the fiscal year under this
lease agreement is recorded at its acquisition cost of 270125 The outstanding balance
at June 30 2011was 261659
The calculation of the present value of the future lease payments is as follows
Amount of future lease payments
for the year ending June 30
Governmental
Activities
2012
2013
2014
2015
2016
Subtotal
Less amount representing interest
Present value of future lease payments
98836
60849
60849
60849
45637
327020
29354
297666
Accumulated depreciation on assets purchased through lease agreements are as
follows
Assets
Autos and trucks
Improvements other than buildings
Less accumulated depreciation
Governmental
Activities
102851
270125
59159
Total 313817
45
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
7 Changes in LongTerm Liabilities continued
Tax Allocation Bonds Series 2006A
On March 9 2006 the Commission issued tax allocation bonds in the amount of
14005000 Series 2006A to 1 refund a portion of the Commissions outstanding
Series 1993A bonds and 2 to finance redevelopment activity in Redevelopment Project
Area No1 The bonds bear interest ranging from 325 to 500 and mature in annual
installments of 780000 to 1250000 on various dates through October 1 2022 The
Commission purchased a surety bond in lieu of cash reserve in the amount of
1323238 Portions of the bonds are subject to early redemption at the option of the
Commission beginning October 1 2017 Bond premiums are amortized over the life of
the bonds The unamortized balance as of June 30 2011 was 217820 As of June 30
2011 the outstanding balance was 9800000
Tax Allocation Bonds Series 2006B
In December 2006 the Commission issued 24230000 in Project Area No1 Tax
Allocation Bonds The bonds mature in amounts ranging from 70000 to 1430000
with interest rates ranging from 325 to 425 through October 1 2025 The net
proceeds were used to refund the remaining 23095000 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 governmentwide financial statements A surety bond
has been acquired to satisfy the reserve requirements As of June 30 2011 the
outstanding balance was 23715000
Tax Allocation Bonds Series 2010A
In July 2010 the Commission issued 11230000 in Merged Project Area Tax Allocation
Bonds The bonds mature in amounts ranging from 200000 to 1135000 with interest
rates ranging from 300 to 500 through December 1 2023 The bonds were issued
to provide funds to finance the costs of certain redevelopment projects within the Merged
Project Area including infrastructure improvements and the acquisition of land Principal
is payable annually on December 1 beginning on December 1 2011 Interest is payable
semiannually on June 1 and December 1 Per the bond indenture a reserve is required
to be maintained At June 30 2011 the balance held in the reserve account was
1143054 As of June 30 2011 the outstanding balance was 11230000
46
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
7
8
Changes in LongTerm Liabilities continued
At June 30 2011 debt service requirements to maturity for governmental activities long
term debt are as follows
Fiscal years ending
June 30 Principal
2012
2013
2014
2015
2016
20172021
20222026
20272031
20322034
Totals
1210000
1795000
1855000
1920000
1995000
11 360 000
10 515 000
8215000
5880000
44745000
Post Employment Benefit Plan
Interest
1902336
1852124
1790511
1718574
1635579
6777216
4188559
2279891
399406
22544196
Plan Description The City administers a single employer defined benefit plan which
provides medical insurance benefits to eligible retirees and their spouses in accordance
with various labor agreements The City has not established a trust that is administered
by the City for the purpose of holding assets accumulated for plan benefits After age 65
Medicare automatically becomes the primary provider of health coverage The Citys
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 Citys cost of health coverage as the secondary provider The Citys defined
benefit plan administrator establishes the cost of secondary provider rates annually The
City will pay 100 for eligible retirees health coverage
Eligibility Employees are eligible for retiree health benefits if they retire from the City on
or after age 50 with at least 5 years of service and are eligible for a PERS pension
Membership of the plan consisted of the following at January 1 2008 the date of the
latest actuarial valuation
Retirees and beneficiaries receiving benefits 14
Active plan members 30
Total 44
47
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
8 Post Employment Benefit Plan continued
Citys 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 payasyougo
basis ie as medical insurance premiums become due For fiscal year 201011 the
City contributed 127584 to the plan for current premiums
Annual OPEB Cost and Net OPEB Obligation The Citys 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 Citys annual OPEB cost for the year
the amount actually contributed to the plan and changes in the Citys net OPEB
obligation for these benefits
Annual required contribution 273591
Interest on net OPEB obligation 14618
Adjustment to annual required contribution 11430
Annual OPEB cost expense 270403
Contributions made 806702
Increase in net OPEB obligation 536299
Net OPEB obligation beginning of year 324838
Net OPEB obligation end of year 861137
The net OPEB asset is reported in the governmentwide statements as part of prepaid
expenses
The Citys annual OPEB cost the percentage of annual OPEB cost contributed to the
plan and the net OPEB obligation for 2011 and the two preceding years were as follows
Percentage Net
of Annual OPEB
Fiscal Annual OPEB OPEB Cost Obligation
Year Cost Contributed Asset
6302009 284778 46 153291
6302010 284778 268 324838
6302011 270403 298 861137
48
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
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 multiyear 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 shortterm volatility in actuarial
accrued liabilities and the actuarial assets consistent with the longterm 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 45 percent
investment rate of return which is the assumed rate of the expected longterm
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 05 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 on a
closed basis It is assumed the Citys payroll will increase 325 per year
Required Supplementary Information Schedule of Funding Progress
Entry Age Actuarial Unfunded UAAL as a
Actuarial Actuarial Accrued Value of AAL Funded Covered of Covered
Valuation Liability AAL Assets UAAL Ratio Payroll Payroll
Date a b a b b a c abc
112008 3548605 3548605 0 1682985 211
NA NA NA NA NA NA NA
NA NA NA NA NA NA NA
49
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
9 Risk Management
Selfinsurance pool pursuant to joint powers agreement
The City is a member of the California Joint Powers Insurance Authority Authority The
Authority is composed of 122 California public entities and is organized under a joint
powers agreement pursuant to California Government Code 6500 et seq The purpose
of the Authority is to arrange and administer programs for the pooling of selfinsured
losses to purchase excess insurance or reinsurance and to arrange for group
purchased insurance for property and other coverages The Authoritys 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 nonpolice Costs are allocated to members by
the following methods within each of the four layers of coverage 1 the first 30000 of
each occurrence is charged directly to the members primary deposit 2 costs from
30000 to 750000 and the loss development reserves associated with losses up to
750000 are pooled based on the members share of losses under 30000 3 losses
from 750000 to 2000000 and the associated loss development reserves are pooled
based on payroll 4a costs of covered claims from 2000000 to 50000000 are paid
under reinsurance and excess insurance policies 4b subject to a 3000000 annual
aggregate deductible 4c and a quotasharing agreement whereby the Authority is
financially responsible for 40 of losses occurring within the 2000000 to 10000000
layer The costs associated with 4ac are estimated using actuarial models and
prefunded as part of the primary and retrospective deposits
The overall policy limit for each member including all layers of coverage is 50000000
per occurrence Costs of covered claims for subsidence losses are paid by excess
insurance with the following sublimits per member 35000000 per occurrence with a
20000000 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 nonpublic safety
50
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
g Risk Management continued
Costs are allocated to members by the follo
of coverage 1 the first 50000 of each
primary deposit 2 losses from 50000 to 9
associated with losses up to 100000 are
losses under 50000 3 losses from 100C
reserves associated with those losses are
2000000 up to statutory limits are paid and
provided per statutory liability under Californi
ng methods within each of the four layers
ss is charged directly to the members
00000 and the loss development reserve
ooled based on the members share of
0 to 2000000 and the loss development
ooled based on payroll 4 losses from
r an excess insurance policy Protection is
Norkers Compensation law
Employers Liability losses are pooled among members to 2000000 coverage from
2000000 to 5000000 is purchased as part of an excess insurance policy and
losses from 5000000 to 10000000 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 claimsmade basis There is a 50000 deductible The Authority has a limit of
50000000 for the 3year period from July 1 2008 through July 1 2011 Each member
of the Authority has a 10000000 sublimit during the 3year 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 June 30 2011 the City had retrospective deposits payable to the Authority in the
amount of 623456 The deposit will be repaid through adjustments to premiums over
the next three years The retrospective deposit payable has been included in noncurrent
liabilities on the Statement of Net Assets
51
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
10 Retirement Plan
Defined Benefit Pension Plan
The City of Rosemead contributes to the California Public Employees Retirement
System PERS a costsharing multipleemployer public employee defined benefit
pension plan PERS provides retirement disability benefits and death benefits to plan
members and beneficiaries PERS acts as a common investment and administrative
agent for participating public entities within the State of California PERS issues a
publicly available financial report that includes financial statements and required
supplementary information for the cost sharing plans that are administered by PERS
Copies of PERS annual financial report may be obtained by writing to 400 P Street
Sacramento California 95814
Contributions and Funding Policy
Miscellaneous participants are required to contribute 7 of their annual covered salary
The City is required to contribute at an actuarially determined rate The rate for the year
ended June 30 2011 is 22476 percent of annual covered payroll The contribution
requirements of plan members and the City are established and may be amended by
City Council in conjunction with applicable labor contracts The Citys contributions to the
miscellaneous plan for the years ending June 30 2009 2010 and 2011 were
1428348 1361873 and 1191665 respectively and were equal to the required
contributions for each year
Supplemental Defined Benefit Pension Plan
Effective July 1 2000 the City entered into an agreement with Public Agency Retirement
Services PARS whereby the City contributes to a supplemental employee pension plan
the plan II a singleemployer defined benefit pension plan administered by Phase II
Systems The plan II 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
52
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
10 Retirement Plan continued
An actuarial valuation of the City of Rosemead Supplemental Defined Benefit Pension
Plan was performed as of July 1 2011 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 2010 and 2011 was 1463
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 2011
Entry Age Normal
Level Dollar
Market Value
650 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 325 annually Payments are assumed to be
made throughout the year
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 Schedule of Funding Progress
Entry Age Actuarial Unfunded UAAL as a
Actuarial Actuarial Accrued Value of AAL Funded Coered of Coered
Valuation Liability AAL Assets UAAL Ratio Payroll Payroll
Date a b a b b a c abc
712006 2973299 1438282 1535017 48 37 2367310 6484
712008 2242154 1910854 331300 8522 3747667 884
712010 2778943 1833895 945048 65 99 3678700 2569
53
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
10 Retirement Plan continued
Supplemental Defined Benefit Pension Plan continued
Threeyear trend information
Annual Pension Cost Employer Contribution
Fiscal Employer Percentage Net Pension
Year Contribution Contributed Obligation
6302009 74317 100
6302010 70019 100
6302011 69010 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 citys allocated surcharge calculated as a percentage of each citys
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
In 1998 the County of Los Angeles lost a litigation mailer that resulted in a 25000000
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
600000 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
54
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
12 Fund Deficits
The following funds had deficit balances as of June 30 2011
Major Governmental Fund
Capital Project
City Capital Projects 3868125
NonMajor Funds
Special Revenue
HOME Program 462746
Federal Highway Grant 72093
The fund deficits noted above primarily relate to expenditures charged to projects during
the fiscal year ended June 30 2011 which were submitted for reimbursement
13 Expenditures in Excess of Appropriations
Expenditures exceeded appropriations in the following funds
Fund Budget Actual Variance
General 17339924 17730943 391019
LowMederate Income
Housing SetAside 261200 292372 31172
RDA Debt Service 3529700 3968183 438483
Proposition C 732695 745020 12325
State Gas Tax 984634 1075439 90805
AQMD 20757 20757
RHDC 797500 803834 6334
55
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
14 Recent Changes in Legislation Affecting California Redevelopment Agencies
On June 29 2011 the Governor of the State of California signed Assembly Bills X1 26
and 27 as part of the States budget package Assembly Bill X1 26 requires each
California redevelopment agency to suspend effective July 1 2011 nearly all activities
except to implement existing contracts meet alreadyincurred obligations preserve its
assets and prepare for the impending dissolution of the agency Assembly Bill X1 27
provides a means for redevelopment agencies to continue to exist and operate by
means of a Voluntary Alternative Redevelopment Program Under this program each
agency would adopt an ordinance agreeing to make certain payments to the County
Auditor Controller in fiscal year 201112 and annual payments each fiscal year
thereafter Assembly Bill X1 26 indicates that the agency may use any available funds
not otherwise obligated for other uses to make this payment The Agency intends to use
available monies of its redevelopment agency for this purpose The amounts to be paid
after fiscal year 201213 have yet to be determined by the state legislature
Assembly Bill X1 26 directs the State Controller of the State of California to review the
propriety of any transfers of assets between redevelopment agencies and other public
bodies that occurred after January 1 2011 If the public body that received such
transfers is not contractually committed to a third party for the expenditure or
encumbrance of those assets the State Controller is required to order the available
assets to be transferred to the public body designated as the successor agency by
Assembly Bill X1 26
The League of California Cities and the California Redevelopment Association CRA
filed a lawsuit on July 18 2011 on behalf of cities counties and redevelopment agencies
petitioning the California Supreme Court to overturn Assembly Bills X1 26 and 27 on the
grounds that they violate the California Constitution On August 11 2011 the California
Supreme Court issued a stay of all of Assembly Bill X1 27 and most of Assembly Bill X1
26 The California Supreme Court stated in its order that the briefing schedule is
designed to facilitate oral argument as early as possible in 2011 and a decision before
January 15 2012 A second order issued by the California Supreme Court on August
17 2011 indicated that certain provisions of Assembly Bills X1 26 and 27 were still in
effect and not affected by its previous stay including requirements to file an appeal of
the determination of the community remittance payment by August 15 the requirement
to adopt an Enforceable Obligations Payment Schedule EOPS by August 29 2011
and the requirement to prepare a preliminary draft of the initial Recognized Obligation
Payment Schedule ROPS by September 30 2011
56
Ile
CITY OF ROSEMEAD
Notes to the Basic Financial Statements
Fiscal Year Ended June 30 2011
14 Recent Changes in Legislation Affecting California Redevelopment Agencies
continued
Because the stay provided by Assembly Bill X1 26 only affects enforcement each
agency must adopt an Enforceable Obligation Payment Schedule and draft Recognized
Obligation Payment Schedule prior to September 30 as required by the statute
Enforceable obligations include bonds loans and payments required by the federal or
state government legally enforceable payments required in connection with agency
employees such as pension payments and unemployment payments judgments or
settlements legally binding and enforceable agreements or contracts and contracts or
agreements necessary for the continued administration or operation of the agency that
are permitted for purposes set forth in ABX1 26
On August 9 2011 the Commission adopted Ordinance No 917 indicating it will comply
with the Voluntary Alternative Redevelopment Program in order to permit the continued
existence and operation of the agency in the event Assembly Bills X1 26 andor 27 are
upheld as constitutional The initial payment by the agency is estimated to be
2112991 with one half due on January 15 2012 and the other half due May 15 2012
Thereafter an estimated 500000 will be due annually The semiannual payments will
be due on January 15 and May 15 of each year and would increase or decrease with
changes in tax increment Additionally an increased amount would be due to schools if
any new debt is incurred Assembly Bill X1 27 allows a oneyear reprieve on the
agencys obligation to contribute 20 of tax increment to the low and moderate income
housing fund so as to permit the Agency to assemble sufficient funds to make its initial
payments
On December 29 2011 the California Supreme Court upheld the constitutionality of
Assembly Bill X1 26 and declared Assembly Bill X1 27 to be unconstitutional This
decision which will abolish all redevelopment agencies unless further action is taken by
the California Legislature will have various implications on the City the extent of which
is unknown as of the date of this report
57
Required Supplementary Information
58
CITY OF ROSEMEAD
Note to the Required Supplementary Information
Fiscal Year Ended June 30 2011
1 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 business units and component units
of the government submit requests for appropriations to the City Manager so that a
budget may be prepared Before the first Thursday of June the proposed budget is
presented to the City Council for review The Council holds public hearings and a final
budget must be prepared and adopted no later than June 30
The appropriated budget is prepared by fund and department The Citys Department
Heads with approval of the Finance Director and City Manager may make transfers of
appropriations within a department and between departments within a fund Transfers of
appropriations between funds must be approved by the City Council The legal level of
budgetary control Le 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 eg
purchase orders and contracts outstanding at year end do not constitute expenditures
or liabilities because the commitments will be reappropriated and honored during the
subsequent year
59
CITY OF ROSEMEAD
General Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Taxes
Intergovernmental
Licenses and permits
Charges for services
Fines forfeitures and penalties
Investment income
Other
Total revenues
Expenditures
Current
General government
Public safety
Public works
Community services
Community development
Park and recreation
Capital outlay
Orginal Final
Budget Budget
12608323 12608323 12419519 188804
574000 574000 751955 177955
1217500 1217500 1764162 546662
535000 535000 677861 142861
520000 520000 462389 57611
300000 300000 156032 143968
430000 430000 245382 184618
Variance
Positive
Actual Negative
16184823 16184823 16477300
2932500
7196500
2365000
1001000
2689800
3579600
7203700
2560010
160000
1229025
2509800
97789
3684113
7253698
2762543
163742
1410866
2362860
93121
292477
104513
49998
202533
3742
181841
146940
4668
Total expenditures 16184800 17339924 17730943 391019
Excess deficiency of revenues
over under expenditures 23 1155101 1253643 98542
Other financing sources uses
Transfers out 381241 381241
Total other financing sources uses 381241 381241
Net change in fund balance 23 1155101 1634884 479783
Fund balance beginning of year
Fund balance end of year
16953956 16953956 16953956
16953979 15798855 15319072 479783
60
CITY OF ROSEMEAD
LowModerate Income Housing SetAside
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Investment Income
Total revenues
Expenditures
Current
Community development
Total expenditures
Excess deficiency of revenues
over under expenditures
Other financing sources uses
Transfers in
Transfers out
Total other financing sources uses
Variance
Orginal Final Positive
Budget Budget Actual Negative
6268 6268
6268 6268
511200 261200
511200 261200
292372 31172
292372 31172
511200 261200 286104 24904
903500 974464 974464
250000 250000 355000 105000
653500 250000 619464 869464
Net change in fund balance 142300 511200 333360 844560
Fund balance beginning of year 6462434 6462434 6462434
Fund balance end of year 6604734 5951234 6795794 844560
61
CITY OF ROSEMEAD
Required Supplementary Information
Fiscal Year Ended June 30 2011
2 Public Agency Retirement Services PARS Retirement Enhancement Plan
Schedule of Funding Progress
Entry Age Actuarial Unfunded UAAL as a
Actuarial Actuarial Accrued Value of AAL Funded Covered of Covered
Valuation Liability AAL Assets UAAL Ratio Payroll Payroll
Date a b a b b a c abc
712006 2973299 1438282 1535017 4837 2367310 6484
712008 2242154 1910854 331300 8522 3747667 884
712010 2778943 1833895 945048 6599 3678700 2569
3 Other Post Employment Benefits Plan
Schedule of Funding Progress
Entry Age Actuarial Unfunded UAAL as a
Actuarial Actuarial Accrued Value of AAL Funded Covered of Covered
Valuation Liability AAL Assets UAAL Ratio Payroll Payroll
Date a b a b b a c abc
112008 3548605 3548605 0 1682985 211
NA NA NA NA NA NA NA
NA NA NA NA NA NA NA
62
This page intentionally left blank
Other Supplementary Information
63
NONMAJOR GOVERNMENTAL FUNDS
Community Development Block Grant Fund Accounts for Community Development Block
Grants received from the US Department of Housing and Urban Development
HOME Program Fund This fund is used to account for HOME Investment Partnerships
Program monies received to create and retain affordable housing
Proposition A Fund This fund is used to finance public transportation projects Effective July 1
1982 this fund accounts for the Citys share of additional sales tax collected in the County of
Los Angeles as a result of Proposition A
Proposition C Fund 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
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 Citys boundaries Proposition
13 has limited the ad valorem tax that can be collected
Narcotics Seizure Fund This fund is used to account for funds received from the County of Los
Angeles for monies forfeited and the proceeds from the sale of assets seized from illegal
narcotic activities within the City of Rosemead The forfeited funds must be used by the law
enforcement and prosecutorial agencies exclusively to support law enforcement and
prosecutorial efforts
Measure R Fund A countywide one half percent sales tax to fund transportation projects
Receipts can be used to synchronize traffic signals repair potholes keep senior student and
disabled bus fares low and provide community traffic relief The tax receipts will be used
primarily to improve public transit and street maintenance projects
Rosemead Housing Development Corporation This fund is used to account for the
construction financing and operations of low and moderate income housing The Corporation is
a blended component until of the City of Rosemead
64
This page intentionally left blank
CITY OF ROSEMEAD
NonMajor Governmental Funds
Combining Balance Sheet
June 30 2011
Special Revenue Funds
CDBG HOME Proposition
Grant Program A
Assets
Cash and investments
Receivables
Accounts
Interest
Notes
Liabilities and Fund Balances
Liabilities
Accounts payable and accrued liabilities
Accrued salaries and benefits
Retentions payable
Due to other funds
Deferred revenue
Total liabilities
Fund balances
Restricted for
Public safety
Public works
Community services
Low and moderate income housing
Unassigned
1334907
356188 204413
356188 204413 1334907
47223 17786
12609 909
15953
199868 632511
2072
27277
5764
261772 667159 33041
94416
462746
Total fund balances deficit
Total liabilities and fund balances
1301866
94416 462746 1301866
356188 204413 1334907
65
Special Revenue Funds
Federal Air Quality
Proposition Highway State Gas Management Local Street
C Grant Tax District Transportation Lighting
1708201 1913937 118874 2670293
7305 16500 47932 40675
1561
58551
1708201 1921242 135374 47932 2771080
59067 158556 55413
2561 3391 1546
7115
72093 4411 47932 5020
60112
61628 72093 173473 47932 122091
2648989
1646573 1747769 135374
72093
1646573 72093 1747769 135374 2648989
1708201 1921242 135374 47932 2771080
66
This page intentionally left blank
CITY OF ROSEMEAD
NonMajor Governmental Funds
Combining Balance Sheet
June 30 2011
Special Revenue Funds
Rosemead
Housing
Narcotics Measure Development
Seizure R Corporation Totals
Assets
Cash and investments 6703 761286 73597 8587798
Receivables
Accounts 14442 687455
Interest 1561
Notes 58551
6703 761286 88039 9335365
Liabilities and Fund Balances
Liabilities
Accounts payable and accrued liabilities 652 42466 408440
Accrued salaries and benefits 1244 28024
Retentions payable 23068
Due to other funds 961835
Deferred revenue 62184
Total liabilities 1896 42466 1483551
Fund balances
Restricted for
Public safety 6703 2655692
Public works 759390 5590972
Community services 94416
Low and moderate income housing 45573 45573
Unassigned 534839
Total fund balances deficit 6703 759390 45573 7851814
Total liabilities and fLnd balances S 6703 761286 88039 9335365
67
CITY OF ROSEMEAD
NonMajor Governmental Funds
Combining Statement of Revenues Expenditures and Changes in Fund Balances
Fiscal Year Ended June 30 2011
Special Revenue Funds
CDBG HOME Proposition
Grant Program A
Revenues
Intergovernmental
Special assessments
Investment income
Total revenues
Expenditures
Current
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
Net change in fund balances
Fund balances deficit beginning of year
Fund balances deficit end of year
1303721 891296 790507
13601
1303721 891296 804108
664713 633833
432162
890000
1096875 890000 633833
206846 1296 170275
285773
285773
78927 1296 170275
173343 464042 1131591
94416 462746 1301866
68
Special Revenue Funds
Federal Air Quality
Proposition Highway State Gas Management Local Street
C Grant Tax District Transportation Lighting
708431 2202877 66059 47932
741382
20018 21242 883 27897
728449 2224119 66942 47932 769279
i 633749
745020 1075439 20757
745020 1075439 20757 633749
16571 1148680 46185 47932 135530
127818 970712 47932 4500
127818 970712 47932 4500
144389 177968 46185 131030
1790962 72093 1569801 89189 2517959
1646573 72093 1747769 135374 2648989
69
CITY OF ROSEMEAD
NonMajor Governmental Funds
Combining Statement of Revenues Expenditures and Changes in Fund Balances
Fiscal Year Ended June 30 2011
Revenues
Intergovernmental
Special assessments
Investment income
Total revenues
Expenditures
Current
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
Net change in fund balances
Fund balances deficit beginning of year
Fund balances deficit end of year
Special Revenue Funds
Rosemead
Housing
Narcotics Measure Development
Seizure R Corporation Totals
6394 482952 415951 6916120
741382
15 6206 40 89902
6409 489158 415991 7747404
633749
95118 3234880
432162
803834 1693834
95118 803834 5994625
6409 394040 387843 1752779
355000 355000
135 1436870
135 355000 1081870
6409 393905 32843 670909
294 365485 78416 7180905
6703 759390 45573 7851814
70
CITY OF ROSEMEAD
Community Development Block Grant
NonMajor Special Revenue Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Intergovernmental
Total revenues 1801930 1303721 498209
Expenditures
Current
Public works 985217
Community services 403500
Total expenditures 1388717
Excess deficiency of revenues
over under expenditures 413213
Other financing sources uses
Transfers out
Total other financing sources uses
Net change in fund balance 413213
Fund balance beginning of year 173343
664713 320504
432162 28662
1096 875 291842
206846 206367
285773 285773
285773 285773
78927 492140
173343
Fund balance end of year 586556 94416 492140
Variance
Final Positive
Budget Actual Negative
1801930 1303721 498209
71
CITY OF ROSEMEAD
HOME Program
NonMajor Special Revenue Funds
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Intergovernmental
Final
Budget
1415560
1415560
891296 524264
Total revenues
Expenditures
Current
Community development
Total expenditures
Net change in fund balance
Fund balance beginning of year
Fund balance end of year
Variance
Positive
Actual Negative
891296 524264
1182200 890000 292200
1182200 890000 292200
233360 1296 232064
464042 464042
230682 462746 232064
72
CITY OF ROSEMEAD
Proposition A
NonMajor Special Revenue Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Variance
Final Positive
Budget Actual Negative
Revenues
Intergovernmental 811800 790507 21293
Investment Income 10000 13601 3601
Total revenues 821800 804108 17692
Expenditures
Current
Public works
Total expenditures
Net change in fund balance
Fund balance beginning of year
787400 633833 153567
787400 633833 153567
34400 170275 135875
1131591 1131591
Fund balance end of year 1165991 1301866 135875
73
CITY OF ROSEMEAD
Proposition C
NonMajor Special Revenue Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Intergovernmental
Investment income
Total revenues
Expenditures
Current
Public works
Total expenditures
Excess deficiency of revenues
over under expenditures
Other financing sources uses
Transfers out
Total other financing sources uses
Net change in fund balance
Fund balance beginning of year
Fund balance end of year
Variance
Final Positive
Budget Actual Negative
721500 708431 13069
23000 20018 2982
744500 728449 16051
732695 745020 12325
732695 745020 12325
11805 16571 28376
127818 127818
127818 127818
11805 144389 156194
1790962 1790962
1802767 1646573 156194
74
CITY OF ROSEMEAD
Federal Highway Grant
NonMajor Special Revenue Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Intergovernmental
Total revenues
Net change in fund balance
Fund balance deficit beginning of year
Variance
Final Positive
Budget Actual Negative
72093 72093
Fund balance deficit end of year 72093 72093
75
CITY OF ROSEMEAD
State Gas Tax
NonMajor Special Revenue Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Intergovernmental
Investment income
Total revenues
Expenditures
Current
Public works
Total expenditures
Excess deficiency of revenues
over under expenditures
Other financing sources uses
Transfers out
Total other financing sources uses
Net change in fund balance
Fund balance beginning of year
Variance
Final Positive
Budget Actual Negative
1472600 2202877
17250 21242
1489850 2224119
984634 1075439 90805
984634 1075439 90805
505216 1148680 643464
730277
3992
734269
970712 970712
970712 970712
505216 177968 327248
1569801 1569801
Fund balance end of year 2075017 1747769 327248
76
CITY OF ROSEMEAD
Air Quality Management District
NonMajor Special Revenue Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Intergovernmental
Investment income
Total revenues
Expenditures
Current
Public works
Total expenditures
Final
Budget
65000
700
65700 66942 1242
Variance
Positive
Actual Negative
66059 1059
883 183
20757 20757
20757 20757
Net change in fund balance
Fund balance beginning of year
65700
89189
46185
89189
19515
Fund balance end of year 154889 135374 19515
77
CITY OF ROSEMEAD
Local Transportation
NonMajor Special Revenue Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Variance
Final Positive
Budget Actual Negative
Revenues
Intergovernmental 47932 47932
Total revenues 47932 47932
Excess deficiency of revenues
over under expenditures 47932 47932
Other financing sources uses
Transfers out 47932 47932
Total other financing sources uses 47932 47932
Net change in fund balance
Fund balance beginning of year
Fund balance end of year
78
CITY OF ROSEMEAD
Street Lighting
NonMajor Special Revenue Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Special Assessments
Investment income
Total revenues
Expenditures
Current
Public safety
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 beginning of year
Variance
Final Positive
Budget Actual Negative
736000 741382 5382
32400 27897 4503
768400 769279 879
686600 633749 52851
686600 633749 52851
81800 135530 53730
4500 4500
4500 4500
81800 131030 49230
2517959 2517959
Fund balance end of year 2599759 2648989 49230
79
CITY OF ROSEMEAD
Narcotics Forfeiture and Seizure
NonMajor Special Revenue Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Intergovernmental
Investment income
Total revenues
Net change in fund balance
Fund balance beginning of year
Fund balance end of year
Variance
Final Positive
Budget Actual Negative
6394 6394
15 15
6409 6409
6409 6409
294 294
80
294 6703 6409
CITY OF ROSEMEAD
Measure R
NonMajor Special Revenue Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Intergovernmental
Investment income
Total revenues
Expenditures
Current
Public works
Total expenditures
Excess deficiency of revenues
over under expenditures
Other financing sources uses
Transfers out
Total other financing sources uses
Net change in fund balance
Fund balance beginning of year
Fund balance end of year
Variance
Final Positive
Budget Actual Negative
504000 482952 21048
6206 6206
504000 489158 14842
117800 95118 22682
117800 95118 22682
386200 394040 7840
135 135
135 135
386200 393905 7705
365485 365485
751685 759390 7705
81
CITY OF ROSEMEAD
Rosemead Housing Development Corporation
NonMajor Special Revenue Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Intergovernmental
Investment income
Total revenues
Expenditures
Current
Community development
Total expenditures
Excess deficiency of revenues
over under expenditures
Other financing sources uses
Transfers in
Total other financing sources uses
Net change in fund balance
Fund balance beginning of year
Fund balance end of year
Variance
Final Positive
Budget Actual Negative
416700 415951 749
40 40
416700 415991 709
797500 803834 6334
797500 803834 6334
380800 387843 7043
355000 355000
355000 355000
380800 32843 347957
78416 78416
302384 45573 347957
82
CITY OF ROSEMEAD
Redevelopment Agency Debt Service Fund
Major Debt Service Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Taxes
Investment income
Total revenues
Expenditures
Current
General government
Public safety
Debt Service
Principal
Interest
Total expenditures
Excess deficiency of revenues
over under expenditures
Variance
Final Positive
Budget Actual Negative
6101800 6893575 791775
30000 56578 26578
6131800 6950153 818353
101000
984000
975000
1469700
3529700
2602100
115623 14623
995468 11468
975000
1882092 412392
3968183 438483
2981970
Other financing sources uses
Transfers in
Transfers out
Total other financing sources uses
1133461
903500 974464
903500 158997
Net change in fund balance
Fund balance beginning of year
1698600
2803910
3140 967
2803910
379870
1133461
70964
1062497
1442 367
Fund balance end of year 4502510 5944877 1442367
83
CITY OF ROSEMEAD
Redevelopment Agency Capital Projects Fund
Major Capital Projects Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Investment income
Other
Total revenues
Expenditures
Current
General government
Public works
Bond issuance costs
Total expenditures
Excess deficiency of revenues
over under expenditures
Other financing sources uses
Transfers out
Discount on bonds
Proceeds from longterm debt
Total other financing sources uses
Net change in fund balance
Fund balance beginning of year
Fund balance end of year
Variance
Final Positive
Budget Actual Negative
59176 59176
7997 7997
67173 67173
10000 1750 8250
9279760 5803685 3476075
332500 275344 57156
9622260 6080779 3541481
9622260 6013606 3608654
1677344 1677344
192139 192139
11230000 11230000
9360517 9360517
9622260 3346911 12969171
3001846 3001846
6620414 6348757 12969171
84
CITY OF ROSEMEAD
City Capital Projects
Major Capital Projects Fund
Schedule of Revenue Expenditures and Changes in Fund Balances Budget and Actual
Fiscal Year Ended June 30 2011
Revenues
Intergovernmental
Total revenues
Expenditures
Current
Public works
Total expenditures
Excess deficiency of revenues
over under expenditures
Other financing sources uses
Transfers in
Total other financing sources uses
Net change in fund balance
Fund balance beginning of year
Variance
Final Positive
Budget Actual Negative
3432000 1715181 1716819
3432000 1715181 1716819
19514773 7601816 11912957
19514773 7601816 11912957
16082773 5886635 10196138
2361994 2361994
2361994 2361994
16082773 3524641 12558132
343484 343484
Fund balance end of year 16426257 3868125 12558132
85
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
Equipment Replacement To account for the accumulation and allocation of costs associated
with the repair and maintenance of the Citys equipment
Technology Replacement To account for the accumulation and allocation of costs associated
with the repair and maintenance of the Citys technological equipment
86
CITY OF ROSEMEAD
Combining Statement of Net Assets
Internal Service Funds
June 30 2011
Assets
Current assets
Cash and investments
Due from other funds
Total current assets
Noncurrent assets
Capital assets
Other capital assets net note 6
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Accounts payable
Lease payable current
Total current liabilities
Noncurrent liabilities
Lease payable
Total noncurrent liabilities
Total liabilities
Net assets
Invested in capital assets
net of related debt
Unrestricted
Total net assets
Equipment Technology
Replacement Replacement Total
107629 162305 269934
15212 15212
107629 177517 285146
231536 231536
231536 231536
107629 409053 516682
155169 155169
50848 50848
206017 206017
210811 210811
210811 210811
416828 416828
30123 30123
107629 22348 129977
107629 7775 99854
87
CITY OF ROSEMEAD
Combining Statement of Revenues Expenses and Changes in Fund Net Assets
Internal Service Funds
Fiscal Year Ended June 30 2011
Operating revenues
Charges for services
Total operating revenues
Operating expenses
Contractual services
Depreciation
Total operating expenses
Operating income
Nonoperating revenues expenses
Investment income
Interest expense
Total nonoperating revenues expenses
Changes in net assets
Net assets beginning of year
Net assets end of year
Equipment Technology
Replacement Replacement Total
63863 55713 119576
63863 55713 119576
47202 47202
38589 38589
791 85791
63863 30078 33785
5 5
1872 1872
1867 11867
63863 31945 31918
43766 24170 67936
107629 7775 99854
88
CITY OF ROSEMEAD
Combining Statement of Cash Flows
Internal Service Funds
Fiscal Year Ended June 30 2011
Cash flows from operating activities
Cash received from users departments
Cash payments to suppliers for goods and services
Net cash provided by used for operating activities
Cash flows from capital and related financing activities
Proceeds from capital lease
Principal paid on capital lease
Interest paid on capital lease
Cash paid to purchase capital asset
Net cash provided by capital and
related financing activities
Cash flows from investing activities
Interest on investment
Net cash provided by investing activities
Equipment Technology
Replacement Replacement Total
63863 40501 104364
49216 49216
63863 8715 55148
275603 275603
13944 13944
1872 1872
115241 115241
144546 144546
5 5
5 5
Net increase in cash and investments 63863 135836 199699
Cash and investments beginning of year
Cash and investments end of year
Reconciliation of operating income to net cash
provided by used for operating activities
Operating income
Adjustments to reconcile operating income to net
cash provided by used for operating activities
Depreciation
Increase decrease in due from other funds
Increase decrease in accounts payable
43766 26469 70235
107629 162305 269934
63863 30078 33785
38589 38589
15212 15212
2014 2014
Total adjustments
Net cash provided by used for operating activities
Noncash capital financing and investing activities
Capital asset acquired through accounts payable
21363 21363
63863 8715 55148
154884 154884
89
CITY OF ROSEMEAD
Statement of Changes in Fiduciary Assets and Liabilities
Year ended June 30 2011
Balance
July 1 2010 Additions Deductions
Balance
June 30 2011
Assets
Cash and investments 479080 8012783 7900147 591716
Accounts receivable 28351 22593 5758
Total assets 479080 8041134 7922740 597474
Liabilities
Deposits payable 479080 8041134 7922740 597474
Total liabilities 479080 8041134 7922740 597474
90
STATISTICAL SECTION
This part of the City of Rosemeads 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 governments overall
financial health
Contents
Financial Trends
These schedules contain trend information to help the reader
understand how the governments financial performance and well
being have changed over time
Revenue Capacity
These schedules contain trend information to help the reader assess
the governments most significant revenue source property tax
Debt Capacity
These schedules present information to help the reader assess the
affordability of the governments current levels of outstanding debt and
the governments ability to issue additional debt in the future
Demographic and Economic Information
These schedules offer demographic and economic indicators to help
the reader understand the environment within which the governments
financial activities take place
Operating Information
These schedules contain service and infrastructure data to help the
reader understand how the information in the governments financial
report relates to the services the government provides and the
activities it performs
Page
92
100
104
110
112
Sources Unless otherwise noted the information in these schedules is derived from the
Comprehensive Annual Financial Reports for the relevant year
91
CITY OF ROSEMEAD
Net Assets by Component
Last Eight Fiscal Years
accrual basis of accounting
Fiscal Year
2004 2005 2006 2007
Governmental activities
Invested in capital assets
net of related debt 10439445 12130249 13345433 10541606
Restricted 6526788 6035250 6901454 8181231
Unrestricted 26498620 31114414 30299115 35293732
Total governmental activities net assets 43464853 49279913 50546002 54016569
The City gllosetnead implemented GASB 34ror thefscalyear ended June 30 2004
In1ormation prior to the implementation olG4SB 34 is not available
92
Fiscal Year
2008 2009 2010 2011
12981537 11828993 12712242 14760940
11443583 13361249 13199438 24806402
27705715 24882730 20489721 10748249
52130835 50072972 46401401 50315591
93
CITY OF ROSEMEAD
Changes in Net Assets
Last Eight Fiscal Years
accrual basis of accounting
Expenses
Governmental activities
General government
Public safety
Public works
Public health
Community services
Community development
Parks and recreation
Interest and other charges
Total governmental activities expenses
Program revenues
Governmental activities
Charges for services
General government
Public safety
Public works
Community services
Community development
Parks and recreation
Total governmental activities program revenues
Fiscal Year
2004 2005 2006 2007
4803476 4800168 5629316 4980519
5797080 6058824 6065066 6618779
2058252 3252252 3403699 6120563
65583 60828 51286
3121996 2862328 3223843 602114
2467842
3201236 3456308 3959590 4178000
1854185 1830836 1832219 2698372
20901808 22 321544 24165019 2 666189
7026282 6299415 3288225 316849
726345 984965 900359 1598159
3091146 3760495 4144733 7600778
1691586 1211615 814754 1403059
3206303
287137 266398 337815
12822496 12522888 9485886 14125148
Net revenues expenses
Governmental activities
Total primary government net revenues expenses 8079312 9798656 14679133 13541041
General revenues and other changes in net assets
Governmental activities
Taxes
Property taxes
Sales and use taxes
Transient occupancy taxes
Other taxes
Intergovernmental inlieu VLF
Investment income
Motor vehicle inlieu unrestricted
Other general revenues
Total governmental activities general revenues
Changes in net assets
Governmental activities
Total primary government
3941383 4077332 3915980 9121682
2865887 35 18657 3525557 2501106
1081174 11 02 756 1207298 1 311697
149737 765215 1076806 713821
31 65148 2966002
187278 1260095 1930059 2028128
17 16656 1290667 856701
7857 32853 478473
8225459 156 13716 15945222 17011608
146147 5815060 1266089 3470567
The Citi of Rr emead implemented G4SB 34for the fiscal rear ended June 30 2004 Information
prior to the implementation ojG4SB 34 is not available
94
Fiscal Year
2008 2009 2010 2011
7259587 12176877 5991796 3160306
8043771 9081719 8879854 8881926
13550042 6465355 11469614 11907245
669827 773374 589650 595904
3645207 1290108 2141218 3969502
4078631 2030698 2733885 2362860
1790348 1523391 1491717 1681875
39037413 33341522 33297734 32559618
642716 547577 1573695 1048727
1547182 1512475 1293677 1293524
11729725 7581801 8052011 9143311
166118 858809 186283 450004
1484065 621375 597402 3753612
36800 36000 20800 654437
15606606 11158037 11723868 16343615
23430807 22183485 21573866 16216003
13181837 12288177 12328634 13656347
3747416 4589998 4408367 3737363
1411421 1272092 1129146 1219977
949007 761410 562317 576904
1678791 884847 389310 367961
254527 195273 169042 263983
143748 133825 336668 307658
21366747 20125 622 19323484 20130193
2064060 2057863 2250382 3914190
95
CITY OF ROSEMEAD
Fund Balances of Governmental Funds
Last Eight Fiscal Years
modified accrual basis of accounting
General fund
Reserved
Unreserved
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds
Fiscal Year
2004 2005 2006 2007
353616
20053506
1719044
19896581
20407122 21615625
256765 150000
22228341 22460545
22485106 22610545
Reserved 3195415 7693216 4947087
Unreserved reported in
Special revenue funds 5653208 7336247 6821660 6142833
Debt service funds 32835 2354835 552
Capital projects funds 6264457 8433842 6435798 7397454
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds 15145915 18124924 20950674 18487926
The Cio olRoserneacl has electecl to show onhv eight years ofdata for this schedule
The City implemented GASB 34 for the fiscal year ended June 30 2011 The categories of
firnd balance for governmental f rnds have been changed as described morefully in the
notes to the basic financial statements Prior yearfiord balances reflect the guidance in
efect when those linancial statements here prepared
96
Fiscal Year
2008 2009 2010 2011
3074496 3106917 3327182
18633154 16135102 13626774
2034
5107963
10209075
21707650 19242019 16953956 15319072
9000561 9000561 8944112
6140289 9023487 8763359
692475 2803910 2803910
2490553 54323 1405770
27476081
4402964
18323878 20773635 19105611 23073117
97
CITY OF ROSEMEAD
Changes in Fund Balances of Governmental Funds
Last Eight Fiscal Years
modified accrual basis of accounting
Fiscal Year
2004 2005 2006 2007
Revenues
Taxes 9041026 9189326 9527384 13648306
Intergovernmental 8826909 14379314 10785591 9419698
Licenses and permits 1508009 1595115 1528864 1683204
Charges for services 581848 550478 660890 414375
Fines forfeitures and penalties 589890 857135 753224 437117
Special assessments 789089
Investment income 1372591 1260286 1947566 2028128
Other 37 30316 29332 478473
Total revenues 21920310 27861970 25232851 28898390
Expenditures
Current
General government 2965572 3023192 3790631 4780837
Public safety 5797080 6087918 6536043 6737912
Public works 3144358 5208142 6064980 8898768
Community services 65583 60828 51286 1419424
Community development 3259505 3424954 3216935 2690420
Parks and recreation 3201236 3383358 3881469 4249462
Capital outlay 26639 184301 149641
Debt service
Principal 445000 465000 490000 780000
Interest and fiscal charges 1859747 1836765 1559114 2512725
Bond issuance costs 550323 1323238
Total expenditures 20764720 23674458 26290422 33392786
Excess deficiency of
revenues over under
expenditures 1155590 4187512 1057571 4494396
Other financing sources uses
Transfers in 3905993 4941103 13300319 26183078
Transfers out 3905993 4941103 13300319 26183078
Issuance of longterm debt 14005000 24230000
Discount on bonds
Premium on debt issued 316830
Payment to bond escrow agent 9569028 22075305
Proceeds of capital lease
Total other financing
sources uses 4752802 2154695
Net change in fund balances 1155590 4187512 3695231 2339701
Debt service as a percentage of
noncapital expenditures 111 98 99 166
The City vfRosemeud has elected to show o74 eight years ofdata for this schedule
98
Fisca l Year
2008 2009 2010 2011
17841792 17153625 18508896 19313094
15716610 10992235 7856792 9383256
1503659 1178362 1079429 1764162
537430 638244 708434 677861
641566 565643 491574 462389
687568 736213 680288 741382
1678791 884847 389310 367956
141930 381429 254610 253379
38749346 32530598 29969333 32963479
7356665 11956179 5903926 3801486
8043771 9114009 8863234 8882915
12116508 4964867 11264220 19402924
669827 783452 584463 595904
3408691 0475291 1940641 3397072
4078631 2030698 2733885 2362860
1647673 202752 290885 93121
1105000 915000 945000 975000
1567849 1531986 1501667 1882092
275344
39994615 32546472 34027921 41668718
1245269 15874 4058588 8705239
2962087 4078483 4133554 4824919
2962087 4078483 4133554 4824919
11230000
192139
102501
102501 11037861
1245269 15874 3956087 2332622
70 76 74 97
99
CITY OF ROSEMEAD
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
in thousands of dollars
City
Fiscal Year Taxable
Ended SBE Assessed Total Direct
June 30 Secured Unsecured NonUnitary Value Tax Rate
2002 1894448049 49217140 1632754 1945297943 1780
2003 2017936508 50453472 2601128 2070991108 1815
2004 2168666818 52904496 19367174 2240938488 1851
2005 2345083686 57368008 20426612 2422878306 1946
2006 2561631859 64776971 18555208 2644964038 2073
2007 2826876615 55851646 19173832 2901902093 2056
2008 3085354513 61564235 18883761 3165802509 2185
2009 3277256282 66506103 18883761 3362646146 2261
2010 3333876047 62148114 3307527 3399331688 2227
2011 3364287629 64231062 3301527 3431820218 2241
Notes
Beginning with the fiscal year ended June 30 2002 exemptions are netted directly against the
individual property categories
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 reassessed 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 Assessors Office
100
CITY OF ROSEMEAD
Direct and Overlapping Property Tax Rates
Rate per 100 of Taxable Value
Last Ten Fiscal Years
Agency 2002 2003 2004 2005
Fiscal Year
2006 2007 2008 2009 2010 2011
Basic Levy 100000 100000 100000 1 00000 100000 100000 100000 100000 100000 100000
County Detention Facilities 1987 Debts 000113 000103 000099 000092 000080 000066 000000 000000 000000 000000
El Monte School Districts 005196 006592 005072 007246 008056 006402 008067 009044 011907 012388
El Monte Union High School 000000 000000 003573 003928 005425 005846 002820 005159 009654 008475
Garvey School Districts 003118 005286 002471 002319 005221 005075 005061 005835 007836 008503
Los Angeles Community College 001600 001460 001986 001810 001430 002146 000878 002212 002311 004031
LA Co Flood Control Bonds 000107 000088 000047 000024 000005 000005 000000 000000 000000 000000
Metropolitan Water District 000770 000670 000610 000580 000520 000470 000450 000430 000430 000370
Montebello Unified School District 004369 003983 004076 004172 007053 006731 006681 008065 009673 009792
Pasadena Area Community College 000000 000000 000681 000879 000410 002080 001972 001741 002300 001986
Rio Hondo Community College 000000 000000 000000 002170 001802 001469 001370 002320 002714 003439
Rosemead School Districts 008858 000540 004517 007095 007515 005420 008282 006875 011358 010743
San Gabriel Unified School District 000000 005803 005224 005729 005284 004930 005742 009294 010071 010190
San Gabriel Valley Mwd Bonds 000000 000000 000000 000000 000000 000000 000000 000000 000000 001800
San Gabriel Vly Mwd State Water Bond 002400 D 02400 002200 002000 002000 002000 002000 001800 001800 000000
Total Direct Overlappingz Tax Rates 126531 126925 130556 138044 144801 142640 143323 153775 170054 171717
Citys Share of 1 Levy Per Prop 13 7 009388 009388 009388 009388 009388 009388 009388 009388 009388 009388
General Obligation Debt Rate
Redevelopment Rate 4 100990 100861 100755 100697 100604 100541 100450 100430 100430 100370
Total Direct Rate 5 017800 018152 018513 019461 020733 020556 011850 022614 022270 022407
Notes
In 1978 Califomia voters passed Proposition 13 which set the property tax rate at a 100 fixed amount This 100 is shared by all taxing
agencies for which the subject property resides within In addition to the 100 fixed amount property owners are charged taxes as a percentage of
assessed property values for the payment of any voter approved bonds
2 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
7 Citys share of 1 Levy is based on the Citys 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
4 RDA rate is based 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
s Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information
We arrive at this percentage by dividing the Citys revenue by total net taxable assessed value
Source LA County Assessor 200102 201011 Tax Rate Table and HdL Coren Cone
101
CITY OF ROSEMEAD
Principal Property Taxpayers
Current Year and Nine Years Ago
2011
Percent of
Total City
2002
Percent of
Total City
Taxable
Assessed
Value
Taxable Taxable Taxable
Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank
Rosemead Place LLC 45003310 1
Walmart Real Estate Business Trust 36384479 2
Rosemead Hwang LLC 32126034 3
AFG Investment Fund 5 LLC
Metodo Investments LLC
420 Boyd Street LLC
Macys California Inc
California Federal Savings and Loan Assoc
Panda Restaurant Group Inc
Sunshine Inn
Aespace America Inc
General Electric Credit Auto Auctions
May Department Stores Company
California Federal Savings and Loan Assoc
Sunshine Inn
Chicago Title Insurance Company
Builder Square LLC
Tony Helen Hua Trust
BHC Alhambra Hospital Inc
Hellman Hospital LLC
31401714 1 161
15649438 2 080
14961492 3 077
9252263 4 048
9042557 5 046
8330000 6 043
7397824 7 038
6288000 8 032
5593485 9 029
5409647 10 028
Source HdL Coren Cone Los Angeles County Assessor 2010111 Combined Tax Rolls
23872481 4
131
106
094
070
19136512 5 056
18417245 6 054
13567141 7 040
13385792 8 039
12831374 9 037
10557466 10 031
102
CITY OF ROSEMEAD
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy
2002 1111483 1111453 10000 1111453 10000
2003 1181683 1161629 9830 1161629 9830
2004 1262684 1262622 10000 1262622 10000
2005 1364266 1203406 8821 1203406 8821
2006 2054921 2054859 10000 2054859 10000
2007 2269752 2147626 9462 2147626 9462
2008 2442009 2406199 9853 2406199 9853
2009 2569429 2435807 9480 2435807 9480
2010 2609456 1898973 7277 1898973 7277
2011 2633288 2595289 9856 2595289 9856
Notes
Information not available
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 Controllers Office
103
CITY OF ROSEMEAD
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Tax Percentage Debt
Allocation of Personal Per
Fiscal Year Bonds Income Capita
2002 34255000 210 619
2003 33830000 200 612
2004 33385000 193 595
2005 32920000 165 580
2006 37100000 770 649
2007 37455000 730 655
2008 36350000 674 633
2009 35435000 641 617
2010 34490000 626 599
2011 44745000 812 775
Notes
Details regarding the Citys outstanding debt can be found in the notes to
the financial statements
These ratios are calculated using personal income and population for the
prior calendar year
104
CITY OF ROSEMEAD
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
In Thousands except Per Capita
Tax Percent of
Allocation Assessed Per
Fiscal Year Bonds Value Capita
2002 34255 176 619
2003 33830 163 612
2004 33385 149 595
2005 32920 136 580
2006 37100 140 649
2007 37455 129 655
2008 36350 115 633
2009 35435 105 617
2010 34490 101 599
2011 44745 130 775
Notes
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
105
This page intentionally left blank
CITY OF ROSEMEAD
Direct and Overlapping Governmental Activities Debt
June 30 2011
Percentage
Gross Bonded Applicable Net Bonded
Debt Balance To City Debt
Overlapping Debt
Metropolitan Water District 107259876 0334 358222
Garvey School District DS 2000 Series A 6189903 51469 3185904
Garvey School District DS 2000 Series B 6244519 51469 3214014
Garvey School District 2004 Series 2005 8358736 51469 4302188
Garvey Sch DS 2004 Ser 2006 10584714 51469 5447885
Garvey Sch DS 2004 Ser C 8987964 51469 4626048
Rosemead Sch Dist DS 2000 Ser A 6410000 69425 4450154
Rosemead Sch Dist DS 2000 Ser B 8930000 69425 6199668
Rosemead Sch DS 2000 Ser C 6655000 69425 4620245
Rosemead Sch DS 2000 Ser D 4845000 69425 3363650
Rosemead School DS 2008 Series A 8865000 69425 5154541
El Monte Union HS Dist 2002 Series A 2870000 14419 413826
El Monte Union HS Dist Series B 4555000 14419 656787
El Monte Un HSD DS 2006 Ref Bds 36572828 14419 5273445
El Monte Un Hi DS 2002 Ser C 29140000 14419 4201704
El Monte Union High DS 2008 Ser A 53625511 14419 7732275
L A CCD DS 2001 Ser A 10590000 0326 34518
L A CCD DS 2003 Ser B 71760000 0326 233275
L A CCD DS 2003 Taxable Ser 20048 17935000 0326 58302
L A CCD DS 2001 Taxable Ser 2004A 74760000 0326 243027
LACC DS Ref 2001 Series 2005 A 431075000 0326 1401323
LA CCD DS 2001 2006 Series B 382830000 0326 1244490
LA CCD DS 2003 2006 Series C 292480000 0326 950763
LACC DS 2001 2008 Ser E1 276500000 0326 898836
LACC DS 2001 2008 Taxable Ser E2 2420000 0326 7867
LACC DS 2003 2008 Ser F1 344915000 0326 1121237
LACC DS 2003 2008 Taxable Ser F2 6480000 0326 21065
LACC DS 2008 2009 Taxable Ser A 350000000 0326 1137767
LACC DS 2008 2009 Taxable Ser B 75000000 0326 243807
LACC Debi 2008 2010 Tax Ser D 175000000 0326 568953
LACC Debi 2010 Tax Ser E GABS 900000000 0326 2926042
LACC DS 2008 2010 Series C 125000000 0326 406395
Pasadena Area CCD DS 2002 Series SA 1925000 2626 50550
Pasadena CCD DS 2006 Series B 48955000 2626 1285555
Pasadena CCD DS 2006 Ref BD Series C 12302327 2626 323058
Pasadena CCD DS 2002 2006 Ser D 26705000 2626 701271
Pasadena CCD 2002 2009 Series E BABS 25295000 2626 664245
Montebello Unif DS 1998 Series 98 10679698 1404 149983
Montebello Unif SO DS 98 Series 99 7712854 1404 108318
Montebello USD DS 1998 Series 2001 3282827 1404 46103
Montebello USD DS 1998 Series 2004 9090273 1404 127662
Montebello Unified DS 1998 Series 2002 11730999 1404 164747
Montebello Unif DS 2004 Ser 2005 25955000 1404 364506
Montebello Unit DS 2004 Ser 2008 32900000 1 404 462040
Montebello Unified DS 2004 Ser 2009 31000000 1 404 463444
Montebello Unified 2010 Refunding Bonds
l i D bt
15770000 1404 221470
ota Over app ng e
201011 Assessed Valuation 52837697115 After Deducting 594123103 Redevelopment Increment
Debt to Assessed Valutation Ratios
Direct Debt 000
Overlapping Debt 285
Total Debt 285
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 voterapproved property tax indebtedness It excludes mortgage revenue tax allocation
bonds interim financing obligations nonbonded capital lease obligations and certificates of participation unless
provided by the city
Source HdL Coren Cone L A County Assessor and Auditor Combined 2010111 Lien Date Tax Rolls
106
CITY OF ROSEMEAD
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit
General obligation bonds
Legal debt margin
Total debt applicable to the limit
Fiscal Year
2002 2003 2004 2005 2006
1945297943 2070991108 2240938488 2422878306 2644964038
25 25 25 25 25
486324486 517747777 560234622 605719577 661241010
15 15 15 15 15
72948673 77662167 84035193 90857936 99186151
72948673 77662167 84035193 90857936 99186151
as a percentage of debt limit 00 00 00
The Government Code of the State of California provides for a legal debt limit of
15 of gross assessed valuation However this provision was enacted when
assessed valuation was based upon 25 of market value Effective with the 198182
fiscal year each parcel is now assessed at 100 of market value as of the most
recent change in ownership for that parcel The computations shown above reflect
a conversion of assessed valuation data for each fiscal year from the current full
valuation perspective to the 25 level that was in effect at the time that the legal
debt margin was enacted by the State of California for local governments located
within the state
Sources Rosemead Finance Department
Los Angeles County Tax Assessors Office
00 00
107
Fiscal Year
2007 2008 2009 2010 2011
2901902093 3165802509 3362646146 3399331688 3431820218
25 25 25 25 25
725475523 791450627 840661537 849832922 857955055
15 15 15 15 15
108821328 118717594 126099230 127474938 128693258
108821328 118717594 126099230 127474938 128693258
00 00 00 00 00
108
CITY OF ROSEMEAD
PledgedRevenue Coverage
Last Ten Fiscal Years
In Thousands
Tax Allocation Bonds
Fiscal Year
Ended Tax Debt Service
June 30 Increment Principal Interest Coverage
2002 3197754 370000 1912843 140
2003 3105416 425000 1891273 134
2004 3376579 445000 1870873 146
2005 3494330 465000 1836765 152
2006 3310295 490000 1559114 162
2007 4029714 780000 1505781 176
2008 6219884 1105000 1567849 233
2009 5649896 915000 1531987 231
2010 6243948 945000 1501667 255
2011 6893575 975000 1882092 241
Note Details regarding the Citys outstanding debt can be found in the notes to the financial
financial statements Operating expenses do not include interest or depreciation expenses
109
CITY OF ROSEMEAD
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Population
Year 1
200102
200203
200304
200405
200506
200607
200708
200809
200910
201011
55289
56065
56710
57189
57144
57427
57422
57594
57756
54034
Personal
Income
in thousands 2
1692452
1727026
1991372
482011
513123
539163
552450
551271
550832
NA
Per
Capita
Personal
Income 2
30611
30804
35115
36746
39011
41875
42916
42818
42784
NA
Unemployment
Rate
3
610
680
600
450
460
490
447
1110
1050
000
Sources 1 California State Department of Finance
2 US Department of Commerce Bureau of Economic Analysis
3 State of California Employment Development Department data shown
is for the County
110
CITY OF ROSEMEAD
Principal Employers
Current Year and Nine Years Ago
Employer
Southern California Edison
Garvey School District
WalMart
Panda Restaurant Group Inc
Rosemead School District
Target
Hemetic Seal Corporation
Don Bosco Tech
Double Tree
Marge Carson Inc
2011 2002
Percent of Percent of
Number of Total Number of Total
Employees Employment Employees Employment
1 4100 1847 000
2 804 362 000
3 420 189 000
4 400 180 000
5 337 152 000
6 200 090 000
7 150 068 000
8 90 041 000
9 76 034 000
10 80 036 000
Notes
Based upon Employment Development Departments estimate of 22200 residents employed in 201011
Information for 2001 is not available
Source City of Rosemead and Rosemead Chamber of Commerce
111
CITY OF ROSEMEAD
Fulltime and Parttime City Employees by Function
Last Ten Fiscal Years
Fulltime and Parttime Employ ees as of June 30
Function 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
General government 19 16 14 15 18 17 19 16 22 19
Public safety 16 23 22 17 23 22 34 39 42 42
Community
development 6 5 6 6 6 11 23 18 23 23
Parks and recreation 107 117 97 94 103 101 103 135 112 99
Total 148 161 139 132 150 151 179 208 199 183
Notes
The City of Rosemead contracts with the Los Angeles County Sheriffs Department for all
police services with the exception of parking control and crossing guards which are provided
by City personnel
The City of Rosemead is part of the Los Angeles County Fire Protection District which
provides fire fighting fire prevention and plan check services for the City
Source City Finance Department
112
CITY OF ROSEMEAD
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Police
Arrests 1299 1102 1081 1230 1315 1786 1506 1478 1733 1888
Parking citations issued na na 14676 18357 15176 13210 11766 10517 8450 7515
Fire
Number of emergency calls 2809 2728 2733 2800 2868 2994 3094 1834 2574 2627
Inspections 117 117 117 117 117 117 2518 2093 3137 845
Public works
Street resurfacing miles 17 13 13 25 11 28 35 35
Parks and recreation
Number of recreation classes 400 420 450 530 720 775 484 397 727 617
Number of facility rentals na na na na na na 540 453 236 1786
Source City of Rosemead
113
Public Safety
Sheriff stations
Fire
Fire stations
Public works
Streets miles
Streetlights
Traffic signals
Parks and recreation
Parks
Community centers
Source City of Rosemead
CITY OF ROSEMEAD
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
1 1 1 1 1 1 1 1 1 1
2 2 2 2 2 2 2 2 2 2
7680 7680 7680 7680 7680 7680 7755 7755 7755 7755
2506 2700 2700 2702 2705 2706 2712 2712 2712 2712
39 39 39 39 39 41 42 42 42 42
10 10 10 10 10 10 10 10 10 10
2 2 2 2 2 2 2 2 2 2
114
Rosemead City Hall
8838 E Valley Boulevard Rosemead CA 91770
Telephone 626 5692100