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2008 CAFR
CITY OF ROSEMEAD Rosemead, California Comprehensive Annual Financial Report Fiscal Year Ended .June 30, 2008 Prepared by the Finance Department Steve Brisco Director of Finance (This page intentionally left dank) CITY OF ROSEMEAD Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2008 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal i Directory of Officials vi Independent Auditors' Report Management's Discussion and Analysis (Required Supplementary Information) 3 Basic Financial Statements: 19 Government -wide Financial Statements: 20 Statement of Net Assets 14 Statement of Activities 15 Fund Financial Statements: 23 Governmental Funds: 24 Balance Sheet 16 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 19 Statement of Revenues, Expenditures and Changes in Fund Balances 20 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 22 Statement of Fiduciary Assets and Liabilities - Agency Fund 23 Notes to the Basic Financial Statements 24 REQUIRED SUPPLEMENTARY INFORMATION: Notes to Required Supplementary Information 54 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund 55 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — Proposition C 56 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Low - Moderate Income Housing Set -Aside 57 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Federal Highway Grant 58 CITY OF ROSEMEAD Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2008 TABLE OF CONTENTS Continued FINANCIAL SECTION. (Continued OTHER SUPPLEMENTARY INFORMATION Paqe Combining Balance Sheet — Non -Major Special Revenue Funds 62 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Non -Major Special Revenue Funds 64 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Traffic Safety 66 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — Community Development Block Grant 67 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — HOME Program 68 Schedule of Revenues, Expenditures and Changes in f=und Balances - Budget and Actual - Proposition A 69 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - State Gas Tax 70 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Air Quality Management District 71 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Local Transportation 72 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Street Lighting 73 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Narcotics Forfeiture and Seizure 74 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Rosemead Housing Development Corporation 75 Major Fund Budget and Actual Schedules: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Redevelopment Agency Debt Service Fund 76 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — Redevelopment Agency Capital Projects Fund 77 Combining Statement of Changes in Assets and Liabilities - Agency Fund 78 STATISTICAL SECTION Net Assets by Component 81 Changes in Net Assets 82 CITY OF ROSEMEAD Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2008 TABLE OF CONTENTS, (Continued) Page STATISTICAL SECTION, (Continued) Fund Balances of Governmental Funds 83 Changes in Fund Balances of Governmental Funds 84 Assessed Value and Estimated Actual Value of Taxable Property 85 Direct and Overlapping Property Tax Rates 86 Principal Property Tax Payers 87 Property Tax Levies and Collections 88 Ratios of Outstanding Debt by Type 89 Ratio of General Bonded Debt Outstanding 90 Direct and Overlapping Governmental Activities Debt 91 Legal Debt Margin 92 Pledged Revenue Coverage 94 Demographic and Economic Statistics 95 Principal Employers 96 Full -time and Part -time City Employees 97 Operating Indicators by Function 98 Capital Asset Statistics by Function 99 (This page intentionally left blank) MAYOR: o JOHN TRAN 4 MAYOR PRO TEM: JOHN NU( EZ MARGARETCLAflK KIRN4j, ', POL.LY LOW GARY A_ TAYLOR December 15, 2008 k s t � 8838 E. VALLEY BOULEVARD - P.O. BOX 399 ROSEMEAD, CALIFORNIA 91770 TELEPHONE (626) 569 -2100 FAX (626) 307 -9218 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Rosemead: Sound financial practice dictates that all general- purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of Rosemead for the fiscal year ended June 30, 2008 This report consists of management's representations concerning the finances of the City of Rosemead. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Rosemead has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of 1 financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Rosemead's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Rosemead's financial statements have been audited by Mayer Hoffman McCann P.C., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Rosemead for the fiscal year ended June 30, 2008, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Rosemead's financial statements for the fiscal year ended June 30, 2008, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City of Rosemead was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of Rosemead's separately issued Single Audit Report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is designed to complement MD &A and should be read in conjunction with it. The City of Rosemead's MD &A can be found immediately following the report of the independent auditors. Profile of the Government The City of Rosemead, incorporated in 1959, is located in the southwestern part of the state, which is considered to be the top growth area in the state, and one of the top growth areas in the country. The City of Rosemead currently occupies a land area of 5.5 square miles and serves a population of more than 57,0000. Property tax is levied and collected by the County of Los Angeles. The City and Community Development Commission's portion is remitted by the County. The City of Rosemead has operated underthe council - manager form of government since 1959. Policy - making and legislative authority are vested in a governing council consisting of the mayor and four other members. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring both the government's manager, attorney and clerk. The government's manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day -to -day operations of the government, and for appointing the heads of the various departments. The council is elected on a non - partisan basis. Council members serve four - year staggered terms, with three council members elected every two years and two elected the opposite two years. The mayor is selected from among the five council members, by the council members and serves for a one year term. Many of the functions often provided by municipal government are, 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 City also has three blended component units: 1) the Rosemead Financing Authority (the Authority), Z) the Rosemead Community Development Commission (the RHDC) and the Rosemead Housing Development Corporation (RHDC). The City of Rosemead also provides a full range of services, including recreational activities and cultural events. Additional information on all four of these legally separate entities can be found in Note 1a in the notes to the financial statements. The annual budget serves as the foundation for the City of Rosemead's and their component unit's financial planning and control. All business units and component units of the City of Rosemead are required to submit requests for appropriation to the government's manager in mid March of each year. The government's manager uses these requests as the starting point for developing a proposed budget. The government's manager then presents this proposed budget to the council for review prior to June 30. The council is required to hold public hearings on the proposed budget and to adopt a final budget by no later than June 30, the close of the City of Rosemead's fiscal year. The appropriated budget is prepared by fund and business unit (e.g., public safety). Department heads, with City Manager approval, may make transfers of appropriations within a business unit. Transfers of appropriations between business units, however, require the approval of the governing council. Budget -to- actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on page 55 as part of the basic financial statements for the governmental funds. For governmental funds, other than the general fund, with appropriated annual budgets, this comparison is presented in the governmental fund subsection of this report, which starts on page 56. 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. The City of Rosemead currently enjoys a reasonably favorable economic environment and local indicators point to continued stability. The region has a varied retail and industrial base that adds to the relative stability of the unemployment rate. Major employers are listed in the statistical section of the accompanying financial report. In spite of the worldwide economic downturn taxable sales in Rosemead have declined only slightly, due primarily to the diversity of the City's retail businesses. Long -term financial planning. The City Council has approved capital improvement projects for resurfacing Del Mar Avenue using Proposition C funds, resurfacing Garvey Avenue using Proposition C and State Gas Tax money, a park facility master plan with future expectations of renovating aging park facilities that are in need of repairs, a walking trail at Rosemead Park, and a new sewer master plan. Additionally new revenue sources are being studied to find ways to keep up with increasing costs of operations and maintenance. With the State in a fiscal crisis some projects are being deferred, but not eliminated, until the State can once again assist with funding. An example of a deferred project due to State funding being withdrawn is the San Gabriel Boulevard Pocket Park located at San Gabriel Boulevard and Failing Leaf Street. Cash management policies and practices. Cash temporarily idle during the year was invested in certificates of deposit as well as the State Treasurer's Local Agency Investment Fund (The maturities of the investments range from six months to one year. Cash invested in LAIF is available on demand. With the State predicting dire cash shortages, approximately $2.25 million was moved from LAIF to a bank money market account. This was done not to gain yield but to protect cash liquidity. The State also invests in LAIF and if they withdraw their cash, as the State Treasurer predicts, it could jeopardize the City's ability to withdraw cash in a timely manner. The City's investment in LAIF is, however, protected by law. In accordance with State law the City's investment priorities, in order of importance, are: 1) safety, 2) liquidity and 3) yield. Risk Management. The City is a member of the California Joint Powers Insurance Authority (the Authority). The Authority is composed of 107 California public entities and is organized under a joint powers agreement pursuant to California Government Code 6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self- insured losses, to purchase excess insurance and reinsurance, and to arrange for group - purchased insurance for property and other coverage. Additional information can be found on note 8 in the notes to the financial statements. Pension and other postemployment benefits. The City of Rosemead is contracted with the California Public Employees Retirement System (CaIPERS) for retirement benefits for full time employees. Supplemental retirement benefits are offered to qualified full -time employees, retirees and part -time employees through Public Agency Retirement Services (PARS). The City also provides health insurance benefits for certain qualified retirees. In accordance with GASB 45, the City is planning to contract for the required actuarial services in April 2009 and will implement the required reporting in the June 30, 2009 CAFR. Additional information on the City of Rosemead's pension arrangements and postemployment benefits can be found in Notes 9 in the notes to the financial statements. Awards and Acknowledgements The Government Finance Officers Association (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, 2007. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. iv 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 department. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the mayor and the governing council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of Rosemead`s finances. Respectfully submitted, Steven L. Brisco Finance Director (This page intentionally left blank) Directory of Officials June 30, 2008 CITY COUNCIL. John Tran, Mayor John Nunez, Mayor Pro Tern Margaret F. Clark, Council Member Polly Low, Council Member Gary A. Taylor, Council Member CITY MANAGEMENT Oliver Chi, City Manager Brian Saeki, Assistant City Manager /External Business Units Matt Hawkesworth, Assistant City Manager /Internal Business Units Steve Brisco, Director of Finance Don Anderson, Director of Public Safety David Montgomery - Scott, Director of Parks and Recreation Jim Donovan, Building Official Matt Everling, City Planner Michelle Ramirez, Economic Development Administrator Chris Marcarello, Administrative Services Officer Aileen Flores, Public Affairs Manager vi (This page intentionally left blank) FINANCIAL. SECTION (This page intentionally left blank) PjMye3 � - `Oo fman ilfte iI nG An Independent CPA Firm 2301 Dupont Drive, Suite 2007 Irvine, California 92612 949- 474 -2020 ph 949 -263 -5520 fx www.mhrn- pe.com The Honorable Mayor and City Council City of Rosemead Rosemead, California INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Rosemead, California, as of and for the year ended June 30, 2008, which collectively comprise the City's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the management of the City of Rosemead. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Rosemead, California, as of June 30, 2008, and the respective changes in financial position of the City of Rosemead, California for the year then ended in conformity with accounting principles generally accepted in the United States of America. The information identified in the accompanying table of contents as management's discussion and analysis and required supplementary information are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. The Honorable Mayor and City Council City of Rosemead Rosemead, California Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Rosemead's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules and statistical tables listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor funds financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. In accordance with Government Auditing Standards, we have also issued a report dated January 23, 2009 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Irvine, California January 23, 2009 2 Management's Discussion and Analysis As management of the City of Rosemead, we offer readers of the City of Rosemead's financial statements this narrative overview and analysis of the financial activities of the City of Rosemead for the fiscal year ended June 30, 2008. 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 • The assets of the City of Rosemead exceed its liabilities at the close of the most recent fiscal year by $52,131 (net assets). Of this amount, $27,706 (unrestricted) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets decreased by $2,064 primarily due to one -time expenses of $1.9 million for rebuilding the Garvey Avenue bridge and $240 thousand for bus stop improvements. • As of the of the current fiscal year, the City of Rosemead's governmental funds reported combined ending fund balances of $40,032, a decrease of $1,067 in comparison with the prior year. Approximately 70 percent of this total amount, $27,956, is available for sjoending at the governments discretion (unreserved, undesignated ffcnd balance). • At the end of the current fiscal year, unreserved, undesignated fund balance for the General Fund was $18,633 or 103 percent of total General. Fund expenditures. • The City of Rosemead's total debt decreased by $1,039 (2,7 percent) during the current fiscal year. The decrease was entirely due to principal reduction payments, Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of Rosemead's basic financial statements. The City of Rosemead's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. Government -wide Financial Statements. The government- wide statements are designed to provide readers with a broad overview of the City of Rosemead's finances, in a manner similar to private - sector business. The statement of net assets presents information on all of the City of Rosemead's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Rosemead is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cashflows. Thus, revenues and expenses are 3 reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation. leave). Both of the government -wide financial statements distinguish functions of the City of Rosemead that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The City of Rosemead does not have any business -type activities. The governmental activities of the City of Rosemead include general government, public safety, public works, community services, community development, and parks and recreation. The government -wide financial statements include not only the City of Rosemead itself (known as the primary government ), but also a legally separate redevelopment agency and a legally separate low income housing corporation, for which the City of Rosemead is financially accountable. Financial information for the component units is reported separately from the financial information presented for the primary government itself. The government -wide financial statements can be found on pages 10 -11 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Rosemead, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. All of the funds of the City of Rosemead can be divided into two categories: governmental funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near - terra 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. 1.6 governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Proposition C Fund, Low - Moderate Income Housing Set -Aside Fund, Federal Highway Grant Fund, Debt Service Funds and Capital Projects Funds, all six of which are considered to be major funds. Data from the other 1.0 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City of Rosemead adopts an annual. appropriated budget for all its funds. A budgetary comparison statement has been provided for the General Fund, Proposition C Fund, Low - Moderate Income Housing Set - Aside Fund and the Federal Highway Grant Fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 12 -18 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City of Rosemead's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on page 19 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 20 -46 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Rosemead's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found on page 49 of this :report. The combining statements referred to earlier in connection with non -major governmental fiends and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 49 -72 of this report. Government -wide Financial! Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Rosemead, assets exceeded liabilities by $52,131 at the close of the most recent fiscal year. The largest portion. of the City of Rosemead's nest assets (51 percent) reflects its investment in capital assets (e.g. land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The City of Rosemead uses these capital assets to provide services to the citizens: consequently, these assets are not available for future spending. Although the City of Rosemead's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 5 City of Rosemead's Net Assets As of June 30, 2008 and 2007 Cu.rrcn.t and other assets ( $ 46,278 $ 49,343 Capital assets 47,965 47,987 Total assets 94,243 97,330 Long -term liabilities outstanding 37,149 38,188 Other liabilities _ 4,963 5 ,125 Total liabilities 42,112 43,31.3 Net assets: Invested in capital assets, net of related debt 12,982 10,542 Restricted 11,443 8,181 Unrestricted 27,706 35,294 Total net assets 1 $ 52,131 1 $ 54.017 An additional portion of the City of Rosemead's net assets (25 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($27,706) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Rosemead is able to report positive net asset balances. The situation also held true for the prior fiscal year. The government's net assets decreased by $2,064 during the current fiscal year. The main cause of the decrease in net assets is due to increased public works activity to complete major maintenance and renovations to infrastructure using cash saved from prior periods. R Governmental activities. Governmental activities decreased the City of Rosemead's net assets by $1,886, thereby accounting for 3.5 percent of the reduction in the net assets of the City of Rosemead. Key elements of this decrease are as follows: As described in the previous section, significant maintenance and construction work was completed using accumulated cash. Continued use of cash reserves is not expected to continue into subsequent fiscal years. City of Rosemead's Changes in Net assets Years Ended June 30, 2008 and 2007 7 Program revenues: Charges for services $ 5,398 $ 2,755 Operating grants and contributions 3,490 8,293 Capital grants and contributions 6,718 3,077 General revenues: Property taxes 13,182 9,122 Other taxes 6,108 4,527 Investment income 1.679 2,028 hntergovernmental, unrestricted 255 857 O ther 143 478 Total revenues 36,973 31,137 Expenses: E General government 7,259 4,981 Public safety 8,044 6,619 Public works 13,550 , 6,121 Community services 670 602 Community development 3,645 2,468 Parks and recreation 4,079 4,178 l;ntcrest on long -terrn debt 1,790 2,698 Total expenses 39,037 27,667 _ Increase in net assets before transfers _ (2,064) 3,470 Incre in net as (2,064 ) 3,470 Net assets - June 30, 2007 (Re in 2008 54,195 50,546 Net assets - June 30, 2008 $52 131 _ $54,016 7 ,,xpenses and Program: Revenues Governmental Activities III expenses �N, revenues zll 110 Ole 0 (a te ��ievenues by Source - Governmenta;' Activities LA Other Motor vehicle, revenue, 1% ill-lieu, 1% Investment income, 8% Franchise taxes, 4% Transient occupancy taxes, 6% Property use Sales and u t % axes, 62 taxes, 18% LA Financial Analysis of the Government's Funds The focus of the City of Rosemead's governmental funds is to provide information on the near -term inflows, and balances of spendable resources. Such information is useful in assessing the City of Rosemead's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a govenlm.ent's net resources available for spending at the end of the fiscal. year. As of the end of the current fiscal year, the City of Rosemead's governmental funds reported combined fund balances of $40,032 a decrease of $1,067 in comparison with the prior year. Approximately 70% of this total amount ($27,956) constitutes unreserved, undesignated fund balance, which is available for spending at the government's discretion. The remainder of the fund balance is reserved or designated to indicate that it is not available for new spending because it has already been committed 1) to liquidate contracts and purchase orders of the prior period ($457) 2) for advances to other funds ($6,976) 3) for deposits ($4,408) or 4) for a variety of other restricted purposes ($235). General Fund The general fund is the chief operating fund of the City of Rosemead. At the end of the current fiscal year, unreserved, undesignated fund balance of the general fund was $18,633, while total fund balance reached $21,708. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved, undesignated fund balance represents 97 percent of total general fund expenditures, while total fund balance represents 114 percent of that same amount. The fund balance of the City of Rosemead's general fund decreased by $932 during the current year. Key factors in this decline are as follows: O $127 of fund balance was spent to catch up on deferred maintenance to parks and pools • A new City Attorney was hired with additional costs of $328 over the previous year • Fund balance of $31.8 was spent to renovate the Council Chambers After years of deferring maintenance on many of the City's streets, parks and buildings a new management team embarked on significant efforts to catch up on maintenance. The renovations and maintenance were paid for with accumulated unreserved, undesignated fund balance money. Because the City has been saving fund balance surpluses over the past several years and has a relatively high level of fund balance, the additional spending on infrastructure does not present a detrimental effect on the City's overall fiscal health and will not continue into future years. Proposition C Fund. The City has been accumulating surplus Proposition C revenue for the past four years to pay for the City's portion of the Garvey Avenue bridge reconstruction. Revenue for the bridge reconstruction. came from two sources: 1) Proposition. C totaling $1,892 and 2) a Federal Highway Grant totaling $6,422. The balance of the changes to Proposition C is an operating surplus of $232 resulting from operating income less normal operating expenditures for the year. Low- Moderate Income Housing Fund. The Low- Moderate Income Housing fund received a transfer of tax increment from the Community Development Commission totaling $985. This represents the required 20% tax increment contribution net of an annual $469 payment towards the reduction of a pre- payment to the Low - Moderate Income Housing Fund of $6,8 million made in 1991. The pre - payment was for the construction of apartments for low income senior citizens. W Federal Highway Grant Fund. As described in the discussion of Proposition C fund balance, Federal Highway Grant Fund had expenditures for bridge reconstruction of $6,422. Bridge reconstruction commenced in FY 2006 -07 and the year ended with unreirnbursed costs of $1,084. Revenue in FY 2007- 08 was $7,1.68 which includes some revenue earned in FY 2006 -07 and deferred revenue of $1,084 which was paid by the State subsequent to the close of FY 2007 -08. There are no Federal Highway Grant projects programmed for FY 2008 -09. Community Development Commission Funds, The combined Community Development Commission (CDC) funds, debt service and capital projects, increased fund balance by $158. The CDC Capital Projects Fund paid for salaries and benefits for general government and public safety as well as contributing $232 for Council Chamber renovations and $145 for street and sidewalk repairs. For the first time, revenue of $921 was received for Project Area 2. The use of CDC funds has been significantly reduced in the FY 2008 -09 budget and that trend that is expected to continue in subsequent budgets. General Fund Budgetary Highlights During the year there was a $729 increase in appropriations between the original and final amended budget. Following are the main components of the increase: • $583 was for City building improvements. • $15 was for City Council contributions for the Vietnamese Freedom Boat presentation. • $20 was a City Council contribution to San Gabriel Valley High School District for a student trip to Washington D.C. • $15 was a City Council contribution to the Rosemead Youth Association to pay IRS tax penalties. • The balance was for minor operating adjustments to the budget. All of the appropriation increases were made using unrestricted, undesignated fund balance. As stated above, the additional appropriations are not harniful to the City's fiscal health. Capital Asset and Debt Administration. Capital assets. The City of Rosemead's investment in capital assets for its governmental activities as of June 30, 2008, amounts to $78,834 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system, improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the City of Rosemead's investment in capital assets for the current fiscal year was 2.4 percent. Major capital asset events during the current fiscal year included the following: • Rebuilding of the Garvey Avenue bridge • Renovation of the City Council chambers • Significant replacement of the City's rolling stock 10 City of Rosemead's Capital Assets (net of depreciation) Land $ 2,969 $ 2,953 Buildings 23,995 22,702 Improvements other than buildings 937 868 Machinery and equipment 893 800 Autos and trucks 686 370 Furniture and office equipment 2,470 3 2,465 Infrastructure 46,496 ' 38,850 Construction in orouress 388 8.005 Total [ $ 78,834 1 $ 77,013 Additional information on the City of Rosemead's capital assets can be found in note 6 on pages 3 7-3 8 of this report. Long -term debt. At the end of the current fiscal year, the Rosemead Community Development Commission had total bonded debt outstanding of $37,149. Of this amount, all of it is backed by future property tax increment revenues. City of Rosemead's Outstanding Debt Tax Allocation Bonds Tax Allocation Bonds 1 $ 37,149 1 $ 38,188 The Rosemead Community Development Commission's total debt decreased by $1,039 during the current fiscal year due to debt service payments on the bonded indebtedness of $1,039. Economic Factors and Next Year's Budgets and Rates • The unemployment rate for the City of Rosemead is currently 4.1 percent. Rosemead is included in the Bureau of Labor Statistics (BLS) Los Angeles , Long, Beach Santa Ana unemployment data set which has unemployment of 8.1 percent compared to 4.9 percent a year ago. The City's unemployment rate compares favorably to the state's average unemployment rate of 8.4 percent and the national average rate of 7.2 percent. 11 Sales tax in the City has remained remarkably stable. Even in the current troubled economy sales tax for the 2` quarter 2008 declined a mere 0.2 percent. The City has a diverse sales tax base including a two year old Super WalMart store. Nationally, WalMart stores have shown continued solid sales during the current down economy and the City's WalMart is no exception. The sales tax projection for FY 2008.09 is projected to increase over FY 2007 -08, however, this may need to be adjusted downward somewhat in the mid -year analysis. 6 inflationary trends in the region compare favorably to national indices. All of these factors were considered in preparing the City of Rosemead's budget for the 2009 fiscal year. During the current fiscal year, unreserved, undesignated fund balance in the general fund decreased to $18,633. The City of Rosemead did not appropriate any General Fund unreserved, undesignated fund balance for spending in the 2009 fiscal. year budget. Requests for Information This financial report is designed to provide a general overview of the City of Rosemead's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, 8838 East Valley Boulevard, Rosemead, CA 92884. 12 (This page intentionally left blank) 13 CITY OF ROSEMEAD Statement of Net Assets June 30, 2008 See accompanying notes to the basic financial statements. 14 Governmental Activities Assets: Cash and investments (note 2) $ 34,603,278 Receivables: Accounts 6,173,679 Accrued interest 373,114 Notes 232,076 Prepaid expenses 2,800 Deposits 4,407,616 Deferred charges 485,579 Capital assets (note 6): Land 2,968,824 Construction in progress 388,448 Other capitaf assets, net 44,607,745 Total assets 94,243,159 Liabilities: Accounts payable and accrued liabilities 3,926,909 Accrued salaries and benefits 361,138 Deposits payable 36,132 Accrued interest payable 639,511 Noncurrent liabilities (note 7): Due within one year 966,347 Due in more than one year 36,182,287 Total liabilities 42,112,324 Net assets: Invested in capital assets, net of related debt 12,981,537 Restricted for: Public works 3,478,963 Public safety 2,443,039 Low - moderate income housing 5,521,581 Unrestricted 27,705,715 Total net assets $ 52,130,835 See accompanying notes to the basic financial statements. 14 CITY OF ROSEMEAD Statement of Activities Fiscal Year ended June 30, 2008 General revenues: Taxes: Property taxes Sales and use taxes Transient occupancy taxes Franchise taxes Investment income Motor vehicle in lieu, unrestricted Other general revenues Total general revenues Change in net assets Net assets at beginning of year, restated (note 13) Net assets at end of year See accompanying notes to the basic financial statements. 13,181, 837 3,747,416 1,411,421 949,007 1,678,791 254,527 143,748 21, 366, 747 (2,064,060) 54,194, 895 $ 52,130,835 15 Program Revenues Net (Expense) Operating Capital Revenue and Charges for Contributions Contributions Changes in Expenses Services and Grants and Grants Net Assets Governmental activities: General government $ 7,259,587 642,716 - - (6,616,871) Public safety 8,043,771 1,329,134 218,048 - (6,496,589) Public works 13,550,042 2,828,337 2,183,455 6,717,933 (1,820,317) Community services 669,827 166,118 - - (503,709) Community development 3,645,207 395,398 1,088,667 - (2,161,142) Parks and recreation 4,078,631 36,800 - - (4,041,831) Interest expense 1,790,348 - - - (1,790,348) Total governmental activities $ 39,037,413 5,398,503 3,490,170 6,717,933 (23,430,807 General revenues: Taxes: Property taxes Sales and use taxes Transient occupancy taxes Franchise taxes Investment income Motor vehicle in lieu, unrestricted Other general revenues Total general revenues Change in net assets Net assets at beginning of year, restated (note 13) Net assets at end of year See accompanying notes to the basic financial statements. 13,181, 837 3,747,416 1,411,421 949,007 1,678,791 254,527 143,748 21, 366, 747 (2,064,060) 54,194, 895 $ 52,130,835 15 CITY OF ROSEMEAD Balance Sheet - Governmental Funds June 30, 2008 See accompanying notes to the basic financial statements. 16 Special Revenue Low - Moderate Federal Proposition Income Housing Highway General C Set -Aside Grant Assets: Cash and investments $ 14,361,656 3,259,454 1,543,636 - Receivables: Accounts 1,297,380 68,202 - 2,797,106 Accrued interest 281,049 - - - Notes 232,076 - - - Prepaid expenses 2,800 - - - Due from other funds (note 4) 5,342,876 - - - Deposits - - - - Advances to other funds (note 4) 2,497,920 - 4,477,945 - Total assets $ 24,015,757 3,327,656 6,0 21,581 2,797,106 Liabilities and Fund Balance Liabilities: Accounts payable and accrued liabilities $ 1,942,924 561,310 - 870,728 Accrued salaries and benefits 315,290 352 - - Deposits payable - - - - Due to other funds (note 4) 249 - 500,000 1,998,471 Deferred revenue 49,644 - - 1,012,260 Advances from other funds (note 4) - - - - Totalliabilities 2,308,107 561,662 500,000 3,881,459 Fund balance: Reserved for: Encumbrances 341,700 - - - Notes receivable 232,076 - - - Prepaid expenses 2,800 - - - Deposits - - - - Advances to other funds 2,497,920 - 4,477,945 - Unreserved, reported in: General fund 18,633,154 - - - Special revenue funds - 2,765,994 1,043,636 (1,084,353) Debt service funds - - - - Capital projects funds - - - Total fund balance 21,707,650 2,765,994 5,521,581 (1,084,353) Total liabilities and fund balance $ 24,015,757 3,327,656 6,021,581 2,797,106 See accompanying notes to the basic financial statements. 16 Debt Service Ca itai Projects Redevelopment Redevelopment Agency Agenc 628,063 10,715,870 64,412 782,530 - 92,065 351,849 4,407,616 692,475 16,349,930 130,016 126 - 2,230,754 6,975,865 9,336,761 115,000 4,407,616 692,475 - - 2,490,553 692,475 7,013,169 692,475 16,349,930 Non -Major Governmental Total 4,094,599 34,603,278 1,164,049 6,173,679 - 373,114 232,076 - 2,800 500,328 6,195,053 - 4,407,616 6,975,865 5,758,976 58,963,481 421,931 3,926,909 45,370 361,138 36,132 36,132 1,465,579 6,195,053 374,952 1,436,856 - 6,975,865 2,343,964 18,931,953 - 456,700 - 232,076 - 2,800 - 4,407,616 - 6,975,865 - 18,633,154 3,415,012 6,140,289 - 692,475 - 2,490,553 3,415,012 40,031,528 5,758,976 58,963,481 17 (This page intentionally left blank) IF., CITY OF ROSEMEAD Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2008 Fund balances of governmental funds $ 40,031,528 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets, net of depreciation, have not been included as financial resources in governmental fund activity. Capital assets 78,834,189 Accumulated depreciation (30,869,172) Long -term debt and compensated absences that have not been included in the governmental fund activity: Compensated absences (521,408) Unamortized bond premiums (277,226) Tax allocation bonds (36,350,000) Debt issuance costs are not current financial resources and, therefore, are not reported in the governmental funds. 485,579 Accrued interest payable for the current portion of interest due on bonds payable has not been reported in the governmental funds. (639,511) Revenues that are measurable but not available. Amounts are recorded as deferred revenue under the modified accrual basis of accounting. 1,436,855 Net assets of governmental activities $ 52,130,835 See accompanying notes to the basic financial statements. m CITY OF ROSEMEAD Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Fiscal Year ended June 30, 2008 Special Revenue Low - Moderate Federal Proposition Income Housing Highway General C Set -Aside Grant Revenues: Taxes $ 10,700,724 Intergovernmental 2,407,747 Licenses and permits 1,503,659 Charges for services 537,430 Fines, forfeitures and penalties 447,012 Special assessments - Investment income 948,097 Other 141,930 Totai revenues 16,686,599 Expenditures: Current: General government 4,040,969 Public safety 6,377,212 Public works 180,551 Community services 214,629 Community development 2,110,304 Parks and recreation 4,078,631 Capital outlay 967,488 Debt service: Principal - Interest and fiscal charges - Total expenditures 17,969,784 Excess (deficiency) of revenues over (under) expenditures (1,283,185) Other financing sources (uses): Transfers in (note 5) 351,600 Transfers out (note 5) - Total other financing sources (uses) 351,600 Change in fund balances (931,585) Fund balances (deficit) at beginning of year, as restated (note 13) 22,639,235 Fund balances (deficit) at end of year $ 21,707,650 758,779 - 7,168,348 136,515 56,323 - 895,294 56,323 7,168,348 2,555,781 - 6,421,942 - 61,622 243,284 - 2,555,781 304,906 6,421,942 (1,660,487) 248,583 746,406 985,195 - (1,273,692) - (288,497} - (1,660,487) (537,080) 746,406 4,426,481 6,058,661 1,830,759 2,765,994 5,521,581 1,084,353 See accompanying notes to the basic financial statements. 20 Debt Service Capital Projects Redevelopment Redevelopment Non -Major - 1,270,817 Age ncy Agency Governmenta Total 921,184 6,219,884 - 17,841,792 - - 5,381,736 1 5,716,610 - - - 1,503,659 - - - 537,430 - - 194,554 641,566 - - 687,568 687,568 13,676 434,693 89,487 1,678,791 141,930 934,860 6,654,577 6,353,345 38,749,346 50,526 2,889,731 375,439 7,356,665 - 1,270,817 395,742 8,043,771 - 605,419 2,352,815 12,116,508 - - 455,198 669,827 - _ 1,236,765 3,408,691 - - - 4,078,631 - 82,190 354,711 1,647,673 - 1,105,000 - 1,105,000 - 1,567,849 - 1,567,849 50,526 7 „521,006 5,170,670 39,994,615 884,334 (866,429) 1,182,675 (1,245,269) 1,125,292 500,000 2,962,087 192,411 (792,784) (703,200) (2,962,087) 192,411 332,508 (203,200) - 691,923 (533,921) 979,475 (1,245,269) 552 7,547,090 2,435,537 41,276,797 692,475 7,013 3,415,012 40,031,528 21 CITY OF ROSEMEAD Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Fiscal Year ended June 30, 2008 Net changes in fund balances of governmental funds $ (1,245,269) Amounts reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlay 1,995,900 Depreciation expense (2,018,277) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long -term liabilities in the statement of net assets. 1,105,000 Bond issuance costs, premiums, discounts, and similar items are recorded as expenditures in governmental funds when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net offset of the differences. (44,942) The statement of net assets includes accrued interest on long term debt. (242,301) To record as an expense the net change in compensated absences in the statement of activities. (85,800) Revenues that are measurable but not available. Amounts are not recorded as revenue under the modified accrual basis of accounting, (1,,528,371 Change in net assets of governmental activities $ (2,064,060 See accompanying notes to the basic financial statements. 22 CITY OF ROSEMEAD Statement of Fiduciary Assets and Liabilities Agency Fund June 30, 2008 Assets Cash and investments (note 2) Total assets Liabilities Deposits payable Total liabilities $ 469,69'1 $ 46 9,691 0 1_ ' •' •' $ 469,691 See accompanying notes to the basic financial statements. I +It3 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements Fiscal Year Ended June 30, 2008 (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 Council /City Manager form of government. It provides a broad range of services to its citizens, including general government, public safety, streets, sanitation and health, cultural and park facilities, and social services. Many of the functions often provided by municipal government are, in the City, provided by special districts. Examples of some of these special districts, which usually encompass areas larger than the City itself, are the Fire Protection District, the Library District and the County Flood Control District. Certain other governmental functions are paid for by the City, but performed by a variety of other public and private agencies under contract. Some of the contracts now in effect are for police, street maintenance and animal control. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by generally accepted accounting principles, these financial statements present the government and its component units, which are entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. Based upon the above criteria, the blended component units of the City are the Rosemead Financing Authority (the Authority), the Rosemead Community Development Commission (the Commission) and the Rosemead Housing Development Corporation (the Corporation). 24 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (a) Reporting Entity, Continued Rosemead Financina Authorit The Authority provides for the financing or refinancing of public capital improvements and working capital requirements of local agencies that enter into contractual arrangements with the Authority. Rosemead Community Development Commission The Commission's purpose is to prepare and carry out plans for the improvement, rehabilitation and redevelopment of blighted areas within the City. The Commission finances street, park and utility improvements, and also acquires and constructs major capital facilities, all within the Rosemead Project Area No. 1. Although the Agency is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Agency. Separate financial statements of the Agency can be obtained from the Finance Department, Rosemead Housing Development Corporation The Corporation accounts for the construction, financing and operations of low and moderate - income housing. It is a California nonprofit benefit corporation organized under Section 501(c)(3) of the Internal Revenue Code. Since the City Council and/or other City officials serve as the Governing Board for these component units, all of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the City's operations. Therefore, data from these units are reported with the funds of the primary government, the City. The Commission and the Corporation issue separate component unit financial statements. The financial statements of these component units can be obtained from the Finance Department. 25 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 1 Summary of Significant Accounting Policies Continued (b) Basis of Accounting and Measurement Focus The basic financial statements of the City are composed of the following: • Government -wide financial statements • Fund financial statements • Notes to the basic financial statements Financial reporting is based upon all GASB pronouncements, as well as the FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins that were issued on or before November 30, 1989 that do not conflict with or contradict GASB pronouncements. Government -wide Financial Statements Government -wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business -type activities of the primary government (including its blended component units), as well as its presented component units. The City of Rosemead has no discretely presented component units. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by function to which they were allocated). However, general governmental expenses have not been allocated as indirect expenses to the various functions of the City. Government -wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long -term) economic resources and obligations of the reporting government are reported in the government -wide financial statements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33. 109 CITY OF ROSMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Mea surement Focus, (Continued Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial statements, rather than reported as expenditure. Proceeds of long -term debt are recorded as a liability in the government -wide financial statements, rather than as other financing source. Amounts paid to reduce long -term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as expenditure. Fund Financial Statements The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds are presented after the government -wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for fiduciary funds and similar component units. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations, Governmental Funds In the fund financial statements, governmental funds are presented using the modified - accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a sixty day availability period. 27 CITY OF ROSEMEA©, CALIFORNIA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus Continued Revenue recognition is subject to the measurable and available criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i,e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction on which they are based takes place. Imposed non - exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government- mandated and voluntary non - exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Non- current portions of long -term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long -term receivables are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long -term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long -term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long -term indebtedness are reported as fund expenditures. W . CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) l Summary of Significant Accounting Policies Continued (b) Basis of Accounting and Measurement Focus Continued When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. Fiduciary_ Funds The City's fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of others. Trust funds account for assets held by the government under the terms of a formal trust agreement. (c) Maior and Fiduciary Fund Types The City's major governmental funds are as follows: General Fund — Accounts for all financial resources except those required to be accounted for in another fund. These resources are devoted to financing the general services that the City performs for its citizens. Proposition C Special Revenue 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. Low- Moderate Income Housing Set -Aside Special Revenue Fund — Accounts for 20% of gross property tax increment revenue received by the Commission to fund future projects involving the replacement or rehabilitation of low and moderate- income housing within City limits. Federal - ULIhway Grant Special Revenue Fund — Accounts for Federal Highway Grants received from the California Department of Transportation. Redevelopment Agency Debt Service Fund — Accounts for the accumulation of resources for the payment of general long -term debt principal, interest and related costs. Redevelopment Agency Capital Projects Fund — Accounts for financial resources to be used for the improvement and rehabilitation of the community redevelopment project areas and acquisition or construction of major capital facilities within the City. 29 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) c Maior and Fiduciary Funs Types,_ (Continued) The City's Fiduciary Fund is as follows: Agency_ Fund — Accounts for the assets held in a trustee capacity or as an agent. The cash being held primarily represents amounts placed on deposit for refundable permits and performance bonds. The Agency Fund is custodial in nature and does not present results of operations or have a measurement focus. (d) Investments For financial reporting purposes, investments are adjusted to their fair value whenever the difference between fair market value and the carrying amount is material. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance. (e) Cash Equivalents For purposes of the statement of cash flows, cash equivalents are defined as short -term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City of Rosemead. Cash equivalents have an original maturity date of three months or less from the date of purchase. For purposes of the statement of cash flows, the entire balance of cash and investments on the combined balance sheet for the internal service fund is considered cash and cash equivalents. 30 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 1 Summary of Significant Accounting Policies Continued (f) Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their estimated fair market value at the date of the contribution. Generally, capital asset purchases in excess of $2,500 are capitalized if they have an expected useful life of one year or more. Capital assets include public domain (infrastructure) general capital assets consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains. Capital assets used in operations are depreciated over their estimated useful lives using the straight -line method in the government —wide financial statements and in the fund financial statements of the internal service funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The following schedule summarizes capital asset useful lives: Buildings Improvements other than buildings Machinery and equipment Autos and trucks Furniture and office equipment Infrastructure: Bridges Sewer system and storm drain system Medians and sidewalks Traffic signals Streets (g) Compensated Absences 50 years 15 years 7 years 5 years 7 years 50 years 50 -100 years 40 years 30 years 20 years Vacation and sick leave pay are payable to employees at the time used or upon termination of employment. All vacation is accrued when incurred in the government -wide level financial statements. Sick pay is accrued to the extent it is probable that the benefits will result in termination payments (i.e., rather than be taken as absences due to illness or other contingencies, such as medical appointments and funerals). The sick leave liability is estimated based on the 31 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 1 Summary of Significant Accounting Policies Continued (g) Compensated Absences, (Continued) City's past experience of making termination payments from sick leave, adjusted for the effect of changes in its termination payment policy and other current factors. A liability for these amounts is reported in governmental funds only if it has matured or will be paid from available resources of the current period. City employees accumulate vacation hours that may be paid upon termination, death or retirement. Employees can accumulate up to three weeks of accrued vacation per year depending on the length of employment. Employees can accumulate up to 160 hours of sick leave. Any hours in excess of 160 are considered to be vested and are paid to the employee based on a vesting schedule. In addition, employees can accrue compensatory time. The City allows employees who have earned vacation time an opportunity to have the City buy back up to two weeks of vacation time per year. In order to participate in the Vacation Buy -Back Program, an employee must take at least 40 consecutive hours of vacation at one time. (h) Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements, (i) Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. (j) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 32 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) L1)____ Summary of Significant Accounting Policies, (Continued) (k) Low - Moderate Income Housing Set -Aside On October 9, 1991 the Commission prepaid its housing obligation in the amount of $6,813,850 from proceeds from its 1987 tax allocation notes. This pre- payment was restructured in 1993 along with the 1993 series tax allocation bonds. As a result, the Commission's housing obligation has been reduced by $469,142 per year until the 2021 -22 fiscal year. Cash and Investments Cash and investments as of June 30, 2008 are classified in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments $34,603,278 Statement of Fiduciary Assets and Liabilities: Cash and investments 469,691 Total cash and investments $35,072,969 Cash and investments as of June 30, 2008 consist of the following: Deposits with financial institutions $ 6,920,040 Investments 28 152,929 Total cash and investments $3.5,072,969 33 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Investments Authorized by the California Government Code and the City's Investment Po _ licy The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. Investment Types Authorized by State Law U.S. Treasury Obligations U.S. Agency Securities Banker's Acceptances Commercial Paper Negotiable Certificates of Deposit Repurchase Agreements Reverse Repurchase Agreements Medium -Term Notes Money Market Mutual Funds Local Agency Investment Fund (LA IF) Authorized *Maximum *Maximum By Investment Maximum Percentage Investment Policy Maturity Of Portfolio In One Issuer Yes 5 years None None Yes 5 years None None Yes 270 days 40% 10% Yes 270 days 25% 10% Yes 3 years 30% None No NIA NIA NIA No NIA NIA NIA Yes 3 years 15% 10% Yes NIA None None Yes NIA None None * Based on state law requirements or investment policy requirements, whichever is more restrictive. 34 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 2 Cash and Investments Continued Investments Authorized by Debt Agreements Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by investing in pooled investments, such as LAIF. 35 Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity Allowed in One Issuer U.S. Treasury Obligations 5 years None None U.S. Agency Securities 5 years None None Banker's Acceptances 270 days 40% 10% Commercial Paper 180 days 10% 10% Money Market Portfolio 1 year None None Investment Agreements None None None Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by investing in pooled investments, such as LAIF. 35 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: R Maturity (in Months) 12 Months 13 to 24 25 Months Investment Type Total Or Less Months or Greater State investment pool $ 26,994,762 26,994,762 - - Held by bond trustee: Money market funds 726 726 - - Investment agreement 1,157,441 - - 1,157,441 Total 28 152 929 26,995,488 - 1,157,441 Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year end for each investment type. 36 Minimum Legal Not Investment Type Total Rating AAA Rated State investment pool $ 26,994,762 NIA - 26,994,762 Held by bond trustee: Money market funds 726 A 726 - Investment agreement 1 NIA - _11157,441 Total S..28,1 5-2,929 726 28 152 203 36 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party, The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker- dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market 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, 2008, $7,271,291 of the City's deposits with financial institutions in excess of federal depository insurance limits were held in uncol lateral ized accounts Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro -rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Global Financial Market Uncertaint The recent global financial crisis has disrupted the bond, equity and credit markets and negatively impacted many financial institutions. At this time the City does not believe that these events will have a material adverse impact on its financial position. However, the full ramifications of this crisis are not determinable at this time and it is not possible to determine with certainty what future impact it may have. 37 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (3) Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of Rosemead accrues only those taxes that are received from the County within sixty days after year -end. Lien date January 1 Levy date July 1 Due dates November 1 and February 1 Collection dates December 10 and April 10 The Community Development Commission of the City of Rosemead's primary source of revenge 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. W CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (4) Interfund Receivables and Pa, aY bles Current interfund receivables and payables balances at June 30, 2008 are as follows: Due from other funds Due to other funds General Fund Federal Highway Grant Redevelopment Agency Capital Projects Fund Non -Major Governmental Fund Total General Fund Nan -Major Governmental Fund Redevelopment Agency Capital Projects Fund Redevelopment Agency Capital Projects Fund Low- Moderate Income Housing Set -Aside Total Non -Major Governmental Fund Amount $ 1,998,471 (A) 2,230,426 (B) 1,113, 979 (A) 5,342,876 328 500,000 500,328 General Fund 249 Non -Major Governmental Fund 351,600 Total Redevelopment Agency Capital Projects Fund 351,849 Total -$--6.195.05 (A) Short -term borrowing to cover temporary cash deficits. (B) Short -term borrowing for salary and benefit charges. Noncurrent interfund receivable and payable balances at June 30, 2008 are as follows: Advances to other funds Advances from other funds Amount Low- Moderate Income Redevelopment Agency Housing Set -Aside Capital Projects Fund $ 4,477,945 (C) General Fund Redevelopment Agency Capital Projects Fund 2,497 920 (D) Total $_Q_975,805 39 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 4 Interfund Receivables and Pa ables Continued (C) Under State law, the Commission is required to set aside a portion of its property tax increment revenue for low- and moderate- income housing. The Commission has made findings that, for the years ended June 30, 1986 through 1991, it was allowed to defer funding of the set - aside. The set -aside amounts incurred during the fiscal years ended June 30, 1994, 1995 and 1996 were also deferred until the fiscal year ending June 30, 2023, as provided by the Commission's adoption of the housing deficit repayment plan. As of June 30, 2008, the accumulated set - aside amount not yet funded was $4,947,087. As required by law, the Commission devised a plan to fund the accumulating amount. (D) In September 2007 the General Fund advanced the Redevelopment Agency Capital Projects Fund $2,497,920 at an interest rate of 5.25% per annum. Accrued interest is payable in annual installments of $131,141 beginning on September 28, 2008, and continuing until September 28, 2027, at which time the remaining principal and interest shall be due in full. 5 Interfund Transfers Interfund transfers were as follows for the year ended June 30, 2008: Transfer in Low - Moderate Income Housing Set -Aside Redevelopment Agency Capital Projects Fund Non -Major Governmental General Fund Transfer Out Amount Redevelopment Agency Capital Fund Projects $ 792,784 Redevelopment Agency Debt Service Fund 192,411 Total Low - Moderate Income Housing Set -Aside 985,195 (A) Low - Moderate Income Housing Set -Aside 773,692 Non -Mayor Governmental 351,600 Total Redevelopment Agency Capital Projects Fund _ 1 _, l 25 292 Low - Moderate Income Housing Set -Aside 500,,000 Non -Major Governmental 351,600 Total 2 962,087 The following describes the significant transfers in and transfers out included in the financial statements: (A) To record the low and moderate income housing set -aside for the year ended June 30, 2008. .t CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (6) Capital Assets Capital asset activity was as follows for the year ended June 30, 2008: Balance at Balance at June 30, 2007 Increases Decreases June 30, 2008 Governmental activities: Capital assets not depreciated: Land $ 2,953,234 15,590 - 2,968,824 Construction in progress 8,004,998 312,936 (7,929,486 3� 88 448 Total capital assets not being depreciated 1095, 8...,__.2 32 328,526 (7,929,486 3� 35 Capital assets being depreciated: Buildings Improvements other than buildi Machinery and equipment Autos and trucks Furniture and office equipment Infrastructure 22,701 ,972 ngs 868,483 798,561 370,440 2,465,080 38,849,600 1,292,984 - 23,994,956 68,448 - 936,931 94,303 - 892,864 315,856 - 686,296 4,446 - 2,469,526 7820,823 µ (174,079, 46,496,344 Total capital assets being depreciated 66,054,136 9,596,860 (174,079 75,476,917 Less accumulated depreciation for: Buildings (5,511,168) Improvements other than buildings (868,483) Machinery and equipment (710,631) Autos and trucks (359,335) Furniture and office equipment (2,143,684) Infrastructure (19,431,673 (553,415) - (6,064,583) - - (868,483) (31,399) - (742,030) (43,731 ) - (403,066) (103,544) - (2,247,228) (1,286,188 174,079 (20,543,72 Total accumulated depreciation (29,024,974 (2,018,277 . 174,079 (30,869,172 Total capital assets being depreciated, net 37,029,162 7,578,583 - 44,607,745 Governmental activities capital assets, net $47 _ 79_Q7_1 D9 7 929 486) 47,965 017 41 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (6) Capital Assets, (Continued) Depreciation expense was charged to functions /programs of the primary government as follows: Governmental activities: Public works $ 1,781,751 Community development 236,,518 Total depreciation expense $2,01.8.277 (7) Changes in Long -Term Liabilities Long -term debt consists of the following at June 30, 2008: The City records expenditures related to compensated absences through the City's General Fund. 42 Balance at Balance at Due within Due Beyond June 30 2007 Additions Reductions June 30 2008 One Year One Year Governmental activities: Tax allocation bonds, Series 2006A $13,225,000 - 810,000 12,415,000 845,000 11,570,000 Tax allocation bonds, Series 2006B 24,230,000 - 295,000 23,935,000 70,000 23,865,000 Unamortized bond premiums 297,028 - 19,802 277,226 19,802 257,424 Compensated Absences 435,608 112,135 26,,335 521,408 31,545 489,863 5381 636 112 1,151137 37.148,634 96f,347 36.18 287 The City records expenditures related to compensated absences through the City's General Fund. 42 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (7) Changes in Long -Term Liabilities, (Continued) Tax Allocation Bonds. Series 2006A On March 9, 2006, the Commission issued tax allocation bonds in the amount of $14,005,000 (Series 2006A) to: (1) refund a portion of the Commission's outstanding Series 1993A bonds and (2) to finance redevelopment activity in Redevelopment Project Area No.1. The bonds bear interest ranging from 3.25% to 5.00% and mature in annual installments of $780,000 to $1,250,000 on various dates through October 1, 2022, The Commission purchased a surety bond in lieu of cash reserve in the amount of $1,323,238. Portions of the bonds are subject to early redemption, at the option of the Commission, beginning October 1, 2017. A surety bond has been acquired to satisfy the reserve requirements. As of June 30, 2008 the outstanding balance was $12,415,000. Tax Allocation Bonds, Series 20068 In December 2006, the Commission issued $24,230,000 in Project Area No. 1 Tax Allocation Bonds. The bonds mature in amounts ranging from $70,000 to $1,430,000 with interest rates ranging from 3.25% to 4.25% through October 1, 2025. The net proceeds were used to refund the remaining $23,095,000 amount outstanding on the 1993 Tax Allocation Bonds. The securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1993 Bonds. As a result, the entire 1993 Bonds are considered to be defeased and the liability for those bonds has been removed from the government -wide financial statements. A surety bond has been acquired to satisfy the reserve requirements. As of June 30, 2008, $23,935,000 of the bonds are outstanding. 43 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (7) Changes in Long -Term Liabilities,,, („Continued) At June 30, 2008, debt service requirements to maturity for governmental activities long- term debt are as follows: $12,415,000 75054 23, 935.000 19,801,377 (8) Risk Management Self- insurance pool pursuant to 'oint powers agreement The City is a member of the California Joint Powers Insurance Authority (the Authority). The Authority is composed of 107 California public entities and is organized under a joint powers agreement pursuant to California Government Code 6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self- insured losses, to purchase excess insurance or reinsurance, and to arrange for group - purchased insurance for property and other coverages. The Authority's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine - member Executive Committee. The City participates in the Authority's general liability program for which each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year, Costs are spread to members as follows: the first $30,000 of each occurrence is charged, directly to the member costs, from $30,001 to $750,000 are pooled based on a members' share of costs under $30,000; costs from $750,001 to $15,000,000 are pooled based on payroll. Costs of covered claims above $15,000,000 are currently paid by reinsurance. The protection for each member is $50,000,000 per occurrence and $50,000,000 annual aggregate. .. 2006A Tax Allocation Bonds 20068 Tax Allocation Bonds Year Ending June 30 Principal Interest Principal Interest 2009 $ 845,000 505,594 70,000 1,040,124 2010 870,000 478,131 75,000 1,037,674 2011 900,000 449,856 75,000 1,035,049 2012 930,000 419,481 80,000 1,032,336 2013 965,000 386,931 80,000 1,029,536 2014 -2018 5,470,000 1,284,280 445,000 5,102,107 2019 -2023 2,435,000 225,881 4,890,000 4,662,341 2024 -2028 - - 7,185,000 3,319,316 2029 -2033 - - 8,990,000 1,497,628 2034 - - 2,045.000 45.266 $12,415,000 75054 23, 935.000 19,801,377 (8) Risk Management Self- insurance pool pursuant to 'oint powers agreement The City is a member of the California Joint Powers Insurance Authority (the Authority). The Authority is composed of 107 California public entities and is organized under a joint powers agreement pursuant to California Government Code 6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self- insured losses, to purchase excess insurance or reinsurance, and to arrange for group - purchased insurance for property and other coverages. The Authority's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine - member Executive Committee. The City participates in the Authority's general liability program for which each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year, Costs are spread to members as follows: the first $30,000 of each occurrence is charged, directly to the member costs, from $30,001 to $750,000 are pooled based on a members' share of costs under $30,000; costs from $750,001 to $15,000,000 are pooled based on payroll. Costs of covered claims above $15,000,000 are currently paid by reinsurance. The protection for each member is $50,000,000 per occurrence and $50,000,000 annual aggregate. .. CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (8) Risk Management, (Continued) The City also participates in the workers' compensation pool administered by the Authority. Members retain the first $50,000 of each claim, Claims are pooled separately between public safety and nonpublic safety. Loss development reserves are allocated by pool and by loss layer ($0 to $100,000 allocated by retained amount and $100,000 to $2,000,000 by payroll). Losses from $50,000 to $100,000 and the loss development reserve associated with losses up to $100,000 are pooled based on the member's share of losses under $50,000. Losses from $100,000 to $2,000,000 and loss development reserves associated with losses from $100,000 to $2,000,000 are pooled based on payroll. Costs from $2,000,000 to $50,000,000 are transferred to an excess insurance policy. Costs in excess of $50,000,000 are pooled among the members based on payroll. Administrative expenses are paid from the Authority's investment earnings. 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 the City, Coverage is on a claims -made basis. There is a $50,000 deductible. The Authority has a limit of $120,000,000 for the three -year period from July 1, 2005 through July 1, 2008. Each member of the Authority has $10,000,000 limit during the three -year term of the policy. During the past three fiscal years, none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. (9) Retirement Plans Defined Benefit Pension Plan The City of Rosemead contributes to the California Public Employees Retirement System (PERS), a cost - sharing multiple- employer public employee defined benefit pension plan. PERS provides retirement, disability benefits, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. PERS issues a publicly available financial report that includes financial statements and required supplementary information for the cost sharing plans that are administered by PERS. Copies of PERS' annual financial report may be obtained by writing to 400 "P°' Street, Sacramento, California 95814. W CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (9) Retirement Plans, (Continued) Defined Benefit Pension Plan Continued All permanent City employees are eligible to participate in the System. Employees attaining the age of 55 with five years of credited California service (service) are eligible for normal retirement and are entitled to a monthly benefit of 2.0% of their final compensation for each year of service. Final compensation is defined as the highest annual salary earned. Retirement may begin at age 50 with a reduced benefit rate. The plan also credits employees for unused sick leave. Upon separation from the plan prior to retirement, members' accumulated contributions are refundable with interest credited through the date of separation. For each of the fiscal years shown below, the City has contributed at the actuarially determined rate provided by PERS' actuaries. Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual required contribution (ARC) plus an adjustment for the cumulative difference between the APC and the employer's actual plan contributions for the year. The cumulative difference is called the net pension obligation (NPO). The ARC for the period July 1, 2007 to June 30, 2008 has been determined by an actuarial valuation of the plan as of June 30, 2005. The City's covered payroll for PERS was $2,559,796 for the year ended June 30, 2008, while the City's total payroll for all employees was $4,798,755 during the same period. In order to calculate the dollar value of the ARC for inclusion in financial statements prepared as of June 30, 2008, the contribution rate is multiplied by the payroll of covered employees that were paid during the period from July 1, 2007 to June 30, 2008. Three -year trend information: Annual Pension Cost (Miscellaneous) ,, Employer Net Fiscal Years Contribution Employer Percentage Pension Ended June 30 Rate Contribution Contributed Obli ation 2006 20.889% $440,687 100% - 2007 20.889% 471,068 100% - 2008 19.802% 828,584 100% - ,, CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 9 Retirement Plan Continued Supplemental Defined Benefit Pension Plan Effective July 1, 2000, the City entered into an agreement with Public Agency Retirement Services (PARS) whereby the City contributes to a supplemental employee pension plan (the plan Il), a single - employer defined benefit pension plan administered by Phase II Systems. The plan Il 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 II. That report may be obtained by writing to PARS, 3961 MacArthur Boulevard, Suite 200, Newport Beach, California, 92660, An actuarial valuation of the City of Rosemead Supplemental Defined Benefit Pension Plan was performed as of July 1, 2006 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 2007 and 2008 was 8.64 %. A summary of principle assumptions and methods used to determine the ARC is shown below. Valuation Date July 1, 2006 Actuarial Cost Method Entry Age Normal Amortization Method Level Dollar Asset Valuation Method Market Value Actuarial Assumptions: Investment Rate of Return 7.50% for funding purposes Retirement 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. Cost of Living Adjustment 2% compounded annually 47 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (9) Retirement Plan, (Continued) Supplemental Defined Benefit Pension Plan, (Continued) Initial unfunded liabilities are amortized over a 20 year period from July 1, 2002 with amortization payments increasing 3.25% 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 Three -year trend information: Annual Pension Cost (Employer Contribution) Net Fiscal Years Employer Percentage Pension Ended June 30 Contribution Contributed Obligation 2006 $204,740 100% - 2007 298,238 100% - 2008 246,265 100% - IM Entry Age Valuation Normal Actuarial Unfunded UAL As a Date Accrued Value of Liability (UAL)/ Funded Valuation % of July 1 Liability Assets (Excess Assets) Status Payroll Payroll 2004 $2,582,633 828,182 1,754,451 32.07% 2,037,432 86.11% 2006 2,973,299 1,438,282 1,535,017 48.37% 2,367,310 64.84% 2008 2,242,154 1,910,854 331,300 85.22% 3,747,667 8.84% Three -year trend information: Annual Pension Cost (Employer Contribution) Net Fiscal Years Employer Percentage Pension Ended June 30 Contribution Contributed Obligation 2006 $204,740 100% - 2007 298,238 100% - 2008 246,265 100% - IM CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (9) Retirement Plan, (Continued) Post - Employment Healthcare Plan On July 10, 2001, the City adopted a resolution whereby, effective July 1, 2002, retired City employees will be entitled to receive amounts from the City necessary to pay the cost of their enrollment, including the enrollment of spouses and eligible family members, in a health benefit plan, up to a maximum of the rate that CalPERS charges to family enrollments. This healthcare premium subsidy will be available to any City employee who reaches retirement age and retires from the City and who does not then work for another government employer. The City has not addressed how it will fund this program as of June 30, 2008. Currently, expenditures are recorded as incurred. There were no expenditures incurred during the year ended June 30, 2008. (10) Commitments and Contingencies The City is a member of the Los Angeles County Liability Trust Fund (the Trust Fund), which was set up to pay for litigation involving the Los Angeles County Sheriffs' Department within any of the 40 cities that are served by the Los Angeles County Sheriffs' Department. The Trust Fund was and is being funded by the 40 cities based upon each city's allocated surcharge, calculated as a percentage of each city's contribution to the total contracted amount with the County paid to Los Angeles County for the use of its deputies. Based upon the agreement signed by all of the 40 cities at the time the Trust Fund originated, the cities will be jointly liable for any and all claims filed against the Los Angeles County Sheriffs' Department, regardless of the location within the 40 cities. In 1998 the County of Los Angeles lost a litigation mailer that resulted in a $25,000,000 judgment against the Los Angeles County Sheriffs' Department, which Los Angeles County has since paid. The City believes its share of this liability is approximately 3 %, or $600,000, which will accrue interest at 4% and be paid by the Trust Fund to Los Angeles County (from amounts on deposit with the Trust Fund) over the next 10 years. No additional liability will be incurred by the City. However, if the City decided to terminate its association with the Trust Fund, it would become immediately liable for its share of the remaining liability. EM CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) (11) Fund Deficits The following funds had deficit balances as of June 30, 2008: Deficit Fund Fund Name Balance HOME $ 358,713 Federal Highway Grant 1,084,353 Air Quality Management District 1,152 Local Transportation 252 Federal Highway Grant The fund deficit primarily relates to expenditures were charged to the project during the fiscal year ended .tune 30, 2008, which were submitted for reimbursement. However, the reimbursement was not received within the availability period and therefore has been deferred. (1 Expenditures in Excess of Appropriations Expenditures exceeded appropriations in the following funds: Fund Budget Actual Variance Proposition C $ 2,082,500 2,555,781 (473,281) Low - Moderate Income Housing Set -Aside 62,880 304,906 (242,026) Street Lighting 365,000 395,742 (30,742) Redevelopment Agency Debt Service Fund - 50,526 (50,526) 317 CITY OF ROSEMEAD, CALIFORNIA Notes to the Basic Financial Statements (Continued) 13) Prior Period Adiustment The following summarizes the effect of prior period adjustments to beginning fund balances as of July 1, 2007: 51 Redevelopment Government - Agency Capital wide Statement General Fund Projects Fund of Net Assets Fund balance at June 30, 2008, as previously reported $22,610,545 7,397,454 54,016,569 To record prior year unrecorded 278,573 278,573 parking citation revenue. To reallocate traffic congestion relief expenses to the General Fund that were initially charged to the Redevelopment Agency Capital Projects (149,636) 149,636 Fund in error. To agree cash by fund balances to total cash by institution. The cash variance primarily relates to errors in prior years that were never corrected. (100,247) - (100,247) Fund balance at June 30, 2008, as restated $22 6 9 235 7 .547.090 5 4,194,895 51 (This page intentionally [eft blank) 52 Required Supplementary Information 53 CITY OF ROSEMEAD, CALIFORNIA Note to the Required Supplementary Information Fiscal Year Ended June 30, 2008 (I }_ Budgetary_ Information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds except the Capital Projects fund, which adopts project- length budgets. All annual appropriations lapse at fiscal year end. On or before the last day in March of each year, all agencies of the government submit requests for appropriations to the City Manager so that a budget may be prepared. Before the first Thursday of June, the proposed budget is presented to the City Council for review. The Council holds public hearings and a final budget must be prepared and adopted no later than June 30. The appropriated budget is prepared by fund, function and department. The City's Department Heads, with approval of the Finance Director and City Manager, may make transfers of appropriations within a department and between departments within a fund. Transfers of appropriations between funds must be approved by the City Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. The council made several supplemental budgetary appropriations throughout the year. The supplemental budgetary appropriations made in the various governmental funds are detailed in the required supplementary information. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year. 2 Ex enditures in Excess of Appropriations Expenditures exceeded appropriations in the following funds: Fund Budget Actual Variance Proposition C $ 2,082,500 2,555,781 (473,281) Low - Moderate Income Housing Set -Aside 62,880 304,906 (242,026) Redevelopment Agency Debt Service Fund - 50,526 (50,526) Street Lighting 365,000 395,742 (30,742) 54 CITY OF ROSEMEAD General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 55 Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Taxes: Property taxes $ 4,272,000 4,272,000 5,307,285 1,035,285 Business license tax 45,000 45,000 50,635 5,635 Sales and use tax 3,650,000 3,650,000 2,876,236 (773,764) Transient occupancy tax 1,698,000 1,698,000 1,411,421 (286,579) Franchise tax 786,500 786,500 949,007 162,507 Real estate transfer tax 152,300 152,300 106,140 (46,160 Total taxes 10,603,800 10,603,800 10,700,724 96,924 Intergovernmental 2,099,200 2,320,060 2,407,747 87,687 Licenses and permits 1,682,900 1,682,900 1,503,659 (179,241) Charges for services 382,800 382,800 537,430 154,630 Fines and penalties 523,500 523,500 447,012 (76,488) Investment income 735,000 735,000 948,097 213,097 Other 216,110 216,110 141,930 (74,180) Total revenues 16,243,310 16,464,170 16,686,599 222,429 Expenditures: Current: General government 5,659,058 6,266,878 4,040,969 2,225,909 Public safety 7,155,860 7,157,770 6,377,212 780,558 Public works - - 180,551 (180,551) Community services 97,500 130,856 214,629 (83,773) Community development 2,425,937 2,425,937 2,110,304 315,633 Parks and recreation 3,307,538 3,305,628 4,078,631 (773,003) Capital outlay 891,500 979,000 967,488 11,512 Total expenditures 19,537,393 20,266,069 17,969,784 2,296,285 Excess (deficiency) of revenues over(under)expenditures (3,294,083) (3,801,899) (1,283,185 2,518,714 Other financing sources (uses): Transfers in - - 351,600 351,600 Transfers out (2,497,920) _ (2,497,920 - 2,497,920 Total other financing sources (uses) (2,497,920 (2,497,920} 351,600 2,849,520 Change in fund balances (5,792,003) (6,299,819) (931,585) 5,368,234 Fund balances at beginning of year, as restated 22,639,235 22,639,235 22,639,235 - Fund balances at end of year $ 16,847,232 16,339,416 21,707,650 5,368,234 55 CITY OF ROSEMEAD Proposition C Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Public works Total expenditures Net change in fund balance Fund balance at beginning of year Fund balance at end of year Budgeted Amounts Original Final Variance - Positive Actual (Negative) $ 800,000 800,000 758,779 (41,221) 100,000 100,000 136,515 36,515 900,000 900,000 895,294 (4,706) 1,918,500 2,082,500 2,_555,781 (473 ,281) 1,918,500 2,082,500 2,555,781 (473,281) (1,018,500) (1,182,500) (1,660,487) (477,987) 4,426,481 4,426,481 4,426,481 - $ 3,407,981 3,243,981 2,765,994 (477,987) 56 CITY OF ROSEMEAD Low - Moderate Income Housing Set -Aside Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 57 Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Investment income $ 41,500 41,500 56,323 14,823 Total revenues 41,500 41,500 56,323 14,823 Expenditures: Current: Community development 62,880 62,880 61,622 1,258 Capital outlay - - 243,284 (243 ,284 Total expenditures 62,880 62,880 304,906 (242,026 Excess (deficiency) of revenues over (under) expenditures (21,380) (21,380) (248,583) (227,203) Other financing sources (uses): Transfers in 1,138,000 1,138,000 985,195 (152,805) Transfers out - - (1,273,692 (1,273,692 Total other financing sources (uses) 1,138,000 1,138,000 (288,497) (1,426,497) Change in fund balances 1,116,620 1,116,620 (537,080) (1,653,700) Fund balance at beginning of year 6,058,661 6,058,661 6,058,661 - Fund balance at end of year $ 7,175,281 7,175,281 5,521,581 1,653,700 57 CITY OF ROSEMEAD Federal Highway Grant Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 Revenues: Intergovernmental Total revenues Expenditures: Current: Public works Capital outlay Total expenditures Net change in fund balance Fund balance (deficit) at beginning of year Fund balance (deficit) at end of year 7,250,000 7,250,000 Variance- Budgeted Amounts Positive Original Final Actual (Negative) $ 7,583,840 8,389,840 7,168,348 (1,221,492) 7,583,840 8,389,840 7,168,348 (1,221,492) 7,250,000 7,250,000 6,421,942 828,058 - 806,000 - 806,000 7,250,000 8,056,000 6,421,942 1,634,058 333,840 333,840 746,406 412,566 (1,830,759) (1,830,7_59) (1,830,759) - $ (1,496,919 1,496,919 (1,084,353 412,566 58 Other Supplementary Information 59 (This page intentionally left blank) 0 NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Traffic Safety Fund — This fund is used to account for the receipt of vehicle code fines which are expended for construction, maintenance of traffic control devices, streets, crossing guard salaries, and equipment and supplies for traffic enforcement and accident prevention. Community Development Block Grant Fund — Accounts for Community Development Block Grants received from the U.S. Department of Housing and Urban Development, HOME Program Fund — This fund is used to account for HOME Investment Partnerships Program monies received to create and retain affordable housing. Proposition A Fund — This fund is used to finance public transportation projects. Effective July 1, 1982, this fund accounts for the City's share of additional sales tax collected in the County of Los Angeles as a result of Proposition A. State Gas Tax Fund — This fund is used to account for monies that are collected by the State under the title of Motor Vehicle Fuel License Tax and represent an additional + or - $.10 per gallon of gas sold. Gas Tax money is distributed to the City based upon population and vehicle registration. Funds may be used for: Select Streets: Right -of -way acquisition, construction or maintenance. Minor Streets: Right -of -way acquisition or construction is allowed as the City Council has determined that 90% or more of the City's street system has already been constructed. Air Quality Management District Fund — This fund accounts for the receipt of monies from the Air Quality Maintenance District. These funds shall be used to implement programs to reduce air pollution from mobile sources pursuant to the California Clean Air Act, Local Transportation Fund — This fund is used to account for monies made available by the State for mass transit, bike paths, and pedestrian walkways. City policy has been to use this money for construction of sidewalks, pedestrian access to schools, parks or commercial areas. Street Lighting Fund -- This fund is used to account for monies collected by ad valorem property tax based on $.2495 per $1000 of assessed property value to provide for energy cost and maintenance of the Rosemead Lighting District, whose boundaries, with the exception of the Southern California Edison company property, coincide with the city's boundaries. Proposition 13 has limited the ad valorem tax that can be collected. Narcotics Seizure Fund — This fund is used to account for funds received from the County of Los Angeles for monies forfeited, and the proceeds from the sale of assets seized from illegal narcotic activities within the City of Rosemead. The forfeited funds must be used by the law enforcement and prosecutorial agencies exclusively to support law enforcement and prosecutorial efforts. Rosemead Housing Development 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. 61 CITY OF ROSEMEAD Non -Major Special Revenue Funds Combining Balance Sheet June 30, 2008 Assets Cash and investments Receivables: Accounts Due from other funds Total assets Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities Accrued salaries and benefits Deposits payable Due to other funds Deferred revenue Total liabilities Fund balances: Unreserved, reported in: Special revenue funds Total fund balances (deficit) Total liabilities and fund balances Traffic CDBG HOME Proposition Safety Grant Grant A $ 400,477 62,050 - 592,296 32,534 185,679 548,282 83,315 - 328 - $433,011 248,057 548,282 675,611 $ - 47,348 135,421 77,368 - 22,163 9,166 14,018 - - 742,738 - - 111,094 19,670 - - 180,605 906,995 91,386 433,011 67,452 (358,713) 584,225 433,011 67,452 (358,713) 584,225 $ 433,011 248,057 548,282 675,611 62 485,502 (1,152) {252 2,009,998 30 Rosemead 3,415,012 485,502 Air Quality X252) 2,009,998 30 Housing 3,415,012 State Gas Management Local Street Narcotics Development 5,758,976 Tax District Transportation Lighting Seizure Corporation Total 601,660 - - 2,014,255 30 423,831 4,094,599 251,493 17,936 - 30,400 - 14,410 1,164,049 - - - - - 500,000 500,328 853,153 17,936 - 2,044,655 30 938,241 5,758,976 123,463 - - 34,657 - 3,674 421,931 - 23 - - - - 45,370 - - - - - 36,132 36,132 - 19,065 252 - - 703,524 1,465,579 244,188 - - - - - 374,952 367,651 19,088 252 34,657 - 743,330 2,343,964 485,502 (1,152) {252 2,009,998 30 194,911 3,415,012 485,502 (1,152} X252) 2,009,998 30 194,911 3,415,012 853,153 17,936 - 2,044,655 30 938,241 5,758,976 63 CITY OF ROSEMEAD Non -Major Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Year ended June 30, 2008 Revenues: Intergovernmental Fines, forfeitures and penalties Special assessments Investment income Total revenues Expenditures: Current: General government Public safety Public works Community services Community development Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Change in fund balances Fund balance (deficit) at beginning of year Fund balance (deficit) at end of year Traffic CDBG HOME Proposition Sa fety Grant Grant A $ - 2,114,866 1,088,667 912,765 194,554 - - - 8,311 - - 12,079 202,865 2,114,866 1,488,667 924,844 - 666,338 - 720,337 - 455,198 - - - - 1,232,765 - - - 214,615 - 1,121,536 1,447,380 720,337 202,865 993,334 (358,713) 204,507 202,865 993,330 (358,713) 204,507 230,146 (925,878 - 379,718 $ 433,011 67,452 (358 584,225 I Rosemead Air Quality Housing State Gas Management Local Street Narcotics Development Tax District Transportation Lighting Seizure Corporation 781,737 68,589 19,658 - 801,395 68,589 938,794 27,298 - 4,000 - 140,096 938,794 171,394 415,112 5,381,736 - - - 194,554 687,568 - - 687,568 49,126 30 283 89,487 736,694 30 415,395 6,353,345 395,742 48 - 48 395,742 (137,399 (102,805) (48) 340,952 375,439 375,439 - 395,742 - - 2,352,815 - - 455,198 - - 1,236,765 - - 354,711 375,439 5,170,670 30 39,956 1,182,675 500,000 500,000 (703,200 703,200) - - - (203,200) 203,200) (137,399) (102,805) (48) 340,952 30 (163,244) 979,475 622,901 101,653 (204) 1,669,046 - 358,155 2,435,537 485,502 (1,152 (252} 2,009,998 30 194,911 3,415,012 65 CITY OF ROSEMEA© Traffic Safety Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 MOO Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Fines, forfeitures and penalties $ 200,000 200,000 194,584 (5,446) Investment income - - 8,311 8,311 Total revenues 200,000 200,000 202,865 2,865 Change in fund balances 200,000 200,000 202,865 2,865 Fund balance at beginning of year 230,146 230,146 230,146 - Fund balance at end of year $ 430,146 430,146 433,011 2,865 MOO CITY OF ROSEMEAD Community Development Block Grant Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 Budgeted Amounts Original Final Revenues: Intergovernmental Total revenues Expenditures: Current: Public works Community services Total expenditures Net change in fund balance Fund balance (deficit) at beginning of year Fund balance (deficit) at end of year $ 1,964,380 1,964,380 1,964,380 1,964,380 Variance - Positive Actual (Negative) 2,114,866 150,486 2,114,866 150,486 1,184,637 1,184,637 666,338 518,299 779,382 779,382 455,198 324,184 1,964,019 1,964,019 1,121,536 842,483 361 361 993,330 992,969 (925,878 (925,878 (925,878) - $ (925,517) (925,517) 67,452 992,969 67 CITY OF ROSEMEAD HOME Program Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 .: Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental $ 3,393,558 3,393,558 1,088,667 (2,304,891 } Total revenues 3,393,558 3,393,558 1,088,667 (2,30 4,891 Expenditures: Current: Community development 3,393,739 3,393,739 1,232,765 2,160,974 Capital outlay - - 214,615 (214,615 Total expenditures 3,393,739 3,393,739 1,447,380 1,946,359 Net change in fund balance (181) (181) (358,713) (358,532) Fund balance at beginning of year - - - - Fund balance (deficit) at end of year $ (181 (181 (358,713 (358,532) .: CITY OF ROSEMEAD Proposition A Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 .• Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental $ 938,700 938,700 912,765 (25,935) Investment income 9,500 9,500 12,079 2,579 Total revenues 948, 948,200 924,844 23,356 Expenditures: Current: Public works 768,755 768,755 720,337 48,418 Total expenditures 768,755 768,755 720,337 48,418 Change in fund balances 179,445 179,445 204,507 25,062 Fund balance at beginning of year 379,718 379,718 379,718 - Fund balance at end of year $ 559,163 559,163 584,225 25,062 .• CITY OF ROSEMEAD State Gas Tax Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 70 Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental $ 1,040,500 1,040,500 781,737 (258,763) Investment income 20,000 20,000 19,658 (342) Total revenues 1,060,500 1,060,500 801,395 (259,105 Expenditures: Current: Public works 1,136,500 1 ,136,500 938,794 197,706 Total expenditures 1,136,500 1,136,500 938,794 197,706 Change in fund balance (76,000) (76,000) (137,399) (61,399) Fund balance at beginning of year 622,901 622,901 622,901 - Fund balance at end of year $ 546,901 546,901 485,502 (61,399 70 CITY OF ROSEMEAD Air Quality Management District Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 71 Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental $ 67,270 67,270 68,589 1 ,319 Investment income 3,600 3,600 - (3,600 Total revenues 70,870 70,870 68,589 (2,281 Expenditures: Current: Public works 300,000 300,000 27,298 272,702 Community development 4,000 4,000 4,000 - Capital outlay - 145,000 140,096 4,904 Total expenditures 304,000 449,000 171,394 277,606 Change in fund balances (233,130) (378,130) (102,805) 275,325 Fund balance at beginning of year 101,653 101,653 101,653 - Fund balance (deficit) at end of year $ (131,477 {276,477 (1,152) 275,325 71 CITY OF ROSEMEAD Local Transportation Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 Variance- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Investment income $ 100,000 100,000 - (100,000} Total revenues 100,000 100,000 - (100,000} Expenditures: Current: Public works 100,000 100,000 48 99,952 Total expenditures 100,000 100,000 48 99,952 Change in fund balances - - (48) (48) Fund balance (deficit) at beginning of year (204) (204) (204) Fund balance (deficit) at end of year $ (204) (204 (252) (48 72 CITY OF ROSEMEAD Street Lighting Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 73 Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Special assessments $ 641,120 641,120 687,568 46,448 Investment income - - 49,126 49,126 Total revenues 641,120 641,120 736,694 46,448 Expenditures: Current: Public safety 365,000 365,000 395,742 (30,742) Total expenditures 365,000 365,000 395,742 (30,742 Change in fund balances 276,120 276,120 340,952 15,706 Fund balance at beginning of year 1,669,046 1,669,046 1,669,046 - Fund balance at end of year $ 1,945,166 1,945,166 2,009,998 15,706 73 CITY OF ROSEMEAD Narcotics Forfeiture and Seizure Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 74 Variance - Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Investment income $ 750 750 30 (720) Total revenues 750 750 30 (720 Change in fund balances 750 750 30 (720) Fund balance at beginning of year - - - - Fund balance at end of year $ 750 750 30 (720 74 CITY OF ROSEMEAD Rosemead Housing Development Corporation Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 Budgeted Amounts Original Final Revenues: Intergovernmental Investment income $ 421,100 421,100 Total revenues Expenditures: Current: General government Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Change in fund balances Fund balance at beginning of year Fund balance at end of year 421,100 421,100 Variance - Positive Actual (Negative) 415,112 (5,988) non non 415,395 (5,705) 702,450 702,450 375,439 327 0 1 702,450 702,450 375,439 327,011 281,350 (281,350 39,956 321,306 250,000 250,000 500,000 250,000 - (703,200) (703,200 250,000 250,000 (203,200) (453,200 (31,350) (31,350) (163,244) (131,894) 358,155 358,155 358,155 - $ 326,805 326,805 194,911 (131,894) 75 CITY OF ROSEMEAD Redevelopment Agency Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 Revenues: Taxes Investment income Total revenues Expenditures: Current: General government Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balance Fund balance at beginning of year Fund balance at end of year Budgeted Amounts Original Final Variance - Positive Actual (Negative $ 592,000 592,000 921,184 329,184 19,000 19,000 13,676 (5,324) 611,000 611,000 934,860 323,860 - 50,526 (50,526) 50,526 (50,526} 611,000 611,000 884,334 273,334 - - (192,411 } ( 192 , 411 ) - - (192,411 (192,411) 611,000 611,000 691,923 80,923 552 552 552 - $ 611,552 611,552 692,475 80,923 W CITY OF ROSEMEAD Redevelopment Agency Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fiscal Year ended June 30, 2008 Revenues: Taxes Investment income Total revenues Expenditures: Current: General government Public safety Public works Capital outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance at beginning of year, as restated Fund balance at end of year 3,1 28,835 3,1 28,835 2,889,731 239,104 - - 1,270,817 Variance - Budgeted Amounts 1,1 20,081 Positive Original Final Actual (Negative) $ 5,115,000 5,115,000 6,219,884 1,104,884 270,000 270,000 434,693 164,693 5,385,000 5,385,000 6,654,577 1,269,577 3,1 28,835 3,1 28,835 2,889,731 239,104 - - 1,270,817 (1,270,817) 1 ,725,500 1,725,500 605,419 1,1 20,081 235,000 4,635,000 82,190 4,552,810 - - 1,105,000 (1,105,000) - - 1,567,849 (1,567,849 5,089,335 9,489,335 7,521,006 1,968,329 295,665 (4,104,335 (866,429 3,237,906 5,131,960 5,131,960 1,125,292 (4,006,668) - - (792,784 (792,784 5,131,960 5,131,960 332,508 - 4,799,452 5,427,625 1,027,625 (533,921) (1,561,546) 7,547,090 7,547,090 7,547,090 - $ 12,974,715 8,574,715 7,013,169 (1,561 ,546 77 CITY OF ROSEMEAD Agency Fund Combining Statement of Changes in Assets and Liabilities Fiscal Year ended June 30, 2008 Balance at Balance at June 30, 2007 Additions Deletions June 30, 2008 Assets Cash and investments $ 385,555 218,500 (134,364) 469,691 Total assets $ 385,555 218,500 (134,364) 469,691 Liabilities Deposits payable $ 385,555 218,500 (134,364) 469,691 Total liabilities $ 385,555 218,500 (134,364) 469,691 78 (This page intentionally left blank) 79 STATISTICAL. SECTIOiV This part of the City of Rosemead's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial heath. Cnntents = Financial Trends 81 These schedules contain trend information to help the reader understand how the government's financial performance and well -being have changed over time. Revenue Capacity 85 These schedules contain trend information to help the reader asses the government's most significant local revenue source, the property tax. Debt Capacity 89 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 95 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information WA These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. :N CITY OF ROSEMEAD Net Assets by Component Last Five Fiscal Years (accrual basis of accounting) Fiscal Year 2004 2005 2006 2007 2008 Governmental activities: Invested in capital assets, net of related debt $ 10,439,445 12,130,249 13,345,433 10,541,606 1.2,981,537 Restricted 6,526,788 6,035,250 6,901,454 8,181,231 11,443,583 Unrestricted 26,498,620 31,114,414 30,299,115 35,293,732 27,705,715 Total governmental activities net assets $ 49,279,913 50,546,002 54,016,569 52,130,835 The City of Roseinead implemented GASB 34 for the fiscal year ended June 30, 2004. Information prior to the implementation of G,4S'B 34 is not available. 81 CITY OF ROSEMEAD Changes in Net Assets Last Five Fiscal Years (accrual basis of accounting) 2004 2005 7,026,282 6,299,415 726,345 984,965 3,091,146 3,760,495 1,691,586 1,211,615 287,137 266,398 Expenses: Governmental activities: General government $ 4,803,476 $ 4,800,168 Public safety 5,797,080 6,058,824 Public works 2,058,252 3,252 Public health 65,583 60,828 Community services 3,121,996 1862,328 Community development - - Parks and recreation 3,201,236 3,456,308 Interest expense 1,854,185 1,830,836 Total governmental activities expenses 20,9 01,808 22,321,544 Program revenues: Governmental activities: Charges for services: General government Public safety Public works Public health Community services Community development Parks and recreation Total governmental activities program revenues Fiscal Year 2006 Inn? Inn4 5,629,316 6,065,066 3,403,699 51,286 3,223,843 3,959,590 1,832,219 24,165,019 3,288,225 900,359 4,144,733 814,754 337,815 4,980,519 6,618,779 6,120,563 602,114 2,467,842 4,178,000 2,698,372 27, 666,189 316,849 1,598,159 7,600,778 1,403,059 3,206,303 7,259,587 8,043,771 1.3,550,042 669,827 3,645,207 4,078,631 1,790,348 39,037,413 642,716 1,547,182 1.1,729,725 166,118 1,484,065 36,800 12,822,496 12,522,888 9,485,886 14,125,148 1.5,606,606 '\et revenues (expenses): Governmental activities "Total net revenues (expenses) (8,079,31.2 (9,798,656 (14,679,133 (13,541,041 (23,430,807 General revenues and other changes in net assets: Governmental activities: Taxes: Property taxes 3,941,383 4,077,332 3,915,980 9,121,682 13,181,837 Sales and use taxes 2,865,887 3,51.8,657 3,525,557 2,501,106 3,747,416 Transient occupancy taxes 1,081,1.74 1,102,756 1,207,298 1,311,697 1,411,421 Other taxes 149,737 765,215 1,076,806 713,821 949,007 Intergovernmental / in -lieu VLF - 3,165,1.48 2,966,002 - - Investment income 187,278 1,260,095 1,930,059 2,028,128 1,678,791 Motor vehicle in -lieu, unrestricted - 1,716,656 1,290,667 856,701 254,527 Other general revenges - 7,857 32,853 478,473 1.43,748 Total governmental activities 8,225.459 1.5,61.3,716 15,945,222 17,011,608 21,366,747 Changes in net assets Governmental activities Total primary government $ 146,147 $ 5,815,060 $ 1,266,089 $ 3,470,567 $ (2,064,060 The City of Rosemead implemented GASB 34 for the fiscal year ended June 30, 2004. Information prior to the implementation of'GASB 34 is not available. 82 CITY OF ROSEMEAD Fund Balances of Governmental Funds Last Five Fiscal Years (modified accrual basis of accounting) 83 Fiscal Year 2004 2005 2006 20 07 _ 2008 General fund: Reserved $ 353,616 1,719,044 256,765 150,000 3,074,496 Unreserved 20,053,506 19,896,581 22,228,341 22,46 18,633,154 Total general fund $ 20,407,122 21,615,625 22,485,106 22,610,545 21,707,650 All other governmental funds: Reserved $ 3,195,415 - 7,693,216 4,947,087 9,000,561 Unreserved, reported in: Special revenue funds 5,653,208 7,336,247 6,821,660 6,142,833 6,140,289 Debt service funds 32,835 2,354,835 - 552 692,475 Capital projects funds 6,264,457 8,433,842 6,435,798 7,397,454 2,490,553 Total all other govenunental funds $15,145,915 18,124,924 20,950,674 18,487,926 1.8,323,878 The City of Roseinead has elected to show only f ve years of data for this schedule. 83 CITY OF ROSEMEAD Changes in Fund Balances of Governmental Funds Last Five Fiscal Years (modified accrual basis of accounting) Other financing sources (uses): Transfers in 3,905,993 4,941,103 Fiscal Year 26,183,078 2,962,087 Transfers out 2 004 — 2005 2006 2007 2008 Revenues: - - I4,005,000 24,230,000 - Taxes $ 9,041,026 $ 9,189,326 $ 9,527,384 $13,648,306 $1.7,841,792 Intergovernmental 8,826,909 14,379,314 10,785,591 9,419,698 15,716,610 Licenses and permits 1,508,009 1,595,115 1,528,864 1,683,204 1,503,659 Charges for services 581,848 550,478 660,890 414,375 537,430 Fines, forfeitures and penalties 589,890 857,135 753,224 437,117 641,566 Special assessments - - - 789,089 687,568 Investment income 1,372,591 1,260,286 1,947,566 2,028,128 1,678,791 Other 37 30,316 29,332 478,473 141,930 Total revenues 21,920,310 27,861,970 25,232,851 28,898,390 38,749 Expenditures Current: General government 2,965,572 3,023,192 3,790,631 4,780,837 7,356,665 Public safety 5,797,080 6,087,918 6,536,043 6,737,912 8,043,771 Public works 3,144,358 5,208,142 6,064,980 8,898,768 12,116,508 Corninunity services 65,583 60,828 51,286 1,419,424 669,827 Community development 3,259,505 3,424,954 3,216,935 2,690,420 3,408,691 Parks and recreation 3,201,236 3,383,358 3,881,469 4,249,462 4,078,631 Capital outlay 26,639 1.84,301 149,641 - 1,647,673 Debt service: - Principal 445,000 465,000 490,000 780,000 1,105,000 Interest and fiscal charges 1,859,747 1,836,765 1,559,114 2,512,725 1,567,849 Payment to bond escrow agent - - 550,323 1,323,238 - Total expenditures 20,764 23,674,458 26,290,422 33,392,786 39,994,615 Excess (deficiency) of revenues over (under) expenditures 1,15 5,590 4,187,512 (1,057,571 (4, 494,396 ) (1,245,269) Other financing sources (uses): Transfers in 3,905,993 4,941,103 13,300,319 26,183,078 2,962,087 Transfers out (3,905,993) (4,941,103) (13,300,319) (26,183,078) (2,962,087) Proceeds of bonds - - I4,005,000 24,230,000 - Premium on debt issued - - 316,830 - - Payment to bond escrow agent - _ (9,569,028 (22,075,305 _ Total other financing sources (uses) - - 4,752,802 2,154,695 _ mm (1,245,269 ) Net change in fund balances $ 1,155,590 4,187,512 3,695,231 (2,339,701 Debt service as a percentage of nonca.pital expenditures 11.1% 9.8% 9.9% 16.6% 7.0% The City of Rosemead has elected to show only five years of data, for this schedule 84 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 Non- Unitary Value Tax Rate 1999 S 1,689,227,961 $ 40,360,462 $ 1,833,455 $1,731,421,878 21.30% 2000 1,733,311,605 44,424,487 1,415,275 1,779,151,367 20.62% 2001 1,801,399,282 48,058,831 664,802 1,850,122,915 20.30% 2002 1,894,448,049 49,217,140 1,632,754 1,945,297,943 21.07% 2003 2,017,936,508 50,453,472 2,601,128 2,070,991,108 20.82% 2004 2,168,666,818 52,904,496 19,367,174 2,240,938,488 21.36% 2005 2,345,083,686 57,368,008 20,426,612 2,422,878,306 22.57% 2006 2,561,631,859 64,776,971 18,555,208 2,644,964,038 21.89% 2007 2,826,876,615 55,851,646 19,173,832 2,901,902,093 23.35% 2008 3,085,354,513 61,,564,235 18,883,761 3,165,802,509 24.57% Beginning with the fiscal year ended June 30, 2002, exemptions are netted directly against the individual property categories. NOTE: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2 0 /o). With few exceptions, property is only re- assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Source: HDL Coren & Cone and Los Angeles County Assessor's Office 10M CITY OF ROSEM:EAD Direct a11d Overlapping Property "fax Rates (Rate her 5100 of Taxabte Value) Last Ten Fiscal Years Agency 1998199 1999!00 2000101 2001/02 20021113 2003,04 200 4105 2005/06 2006107 2067M8 Basic Levy* 1 00000 1.00000 1.00000 1.00006 1 00600 100600 1 00006 1.00600 1.00000 1,00000 001.53 - Detentinn Facilities 1987 Debts 0.00i45 0,00142 0.00131 0 D 113 0.00103 0,90099 0.00092 0.00080 0.00066 0.0000(3 030.60- La.C6,Fl,Con,Stol9n Dr.0.5, 4 0.00050 0.00097 0,00092 0,00065 0.00662 000043 6.00021 U.00002 0.00005 0,00000 030.61- Flood Con. Ref.. Bonds 1993 . Os 0,00145 0,00079 V.00064 900041 01.60026 0,00604 0.00003 6.00003 0.00000 0.00000 337,05. Ori.g Area Up SO Vy Mwd 1116001 0.0[1890 0008917 000880 0.00770 0.00670 0,00610 0.005 s0 0.00520 000170 000450 367,06 - San Gabriel Valley MwdGo Bonft 000980 000289 0,00225 0.00000 C_Goo06 0.00000 000(x70 0.661R00 0.00000 0,00000 367,07 - San Gab Val Mwd State Water Bond 0,02020 0,022, 1 0012175 0.82460 0.02400 x,02200 0.02000 002000 0.02000 0.02000 473 .51 - El Monte City Sd Ds 1999 SerA 000060 0.00000 0.04196 0.05196 0.02755 6,02783 0.02497 0.01047 0,01108 0,01056 473.52 - El Monte Sd City Dt 1999 Ser -B 0,00000 0.00006 0-0 0300 0 -00000 6.03837 0,02289 0.02130 0.0:919 0.00312 0.60766 473.53 - T7,1 Monte City Sd Ds 1999 Ser -C 0.00060 0. MOW 0. ©0000 0_©0600 000000 000600 0- 112619 0.00884 0.00475 0.00839 473. 54 - El Monte School District 2004 Refund; u oow0 a DaGGO 0,00000 0.00000 0.00006 0,Noce 0.00000 0.01174 6.00285 0.00584 473.55- El Monte School Distict 1989 Serics 0 ;1.00006 000000 0.00000 0.00000 1).00000 0,00060 0.00060 0.03032 0.01709 0.02446 473.56 - El Monte City Sd Ds 2005 Ref Tads 0,00000 0,90000 0 .00OOO 0.00000 0.00000 000006 0.00000 0.00000 0.02513 6,02253 473.57 - El Monte Soh Ds 2064 Ser B 0.00000 0 , MOW 0,00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0OnE21 485.50- Garvey Soh Dist Ds 2000 Ser A 0.00000 0.00000 0.00600 003118 002478 0.02471 0.02046 0.02023 6.01913 0.01819 485.51 - Garvey Soh Dist Ds 2000 Set B 0.00000 0.00000 0.00000 000000 0.02808 0,00000 0.00273 0.00424 0.00470 0,00396 485.52- Garvey School District 2004 Series 200 O.Dom) 0.00006 0.00000 0.00000 000000 0.00000 0 00000 0.02774 U 0269? 0.02754 465.53- Garvey Sch Ds 2004 Ser 2006 a 00606 0.00600 IUCUo 0.06066 0.00000 0,00000 0.00000 000000 6.00000 000401 485,54 - Garvey Sch Ds 2004 Scr C 0.00000 0.00000 0.00000 0.00000 (7.13(066 0.60000 0.00000 0.00000 0.00000 0,00091 629.50- Rosemead Sob Dist Ds 2000 Ser A 0.00000 0.00000 0.90000 6.08859 0.00540 0,04517 0.02308 0.035? i 0.02111 0.02811 629.51 - Rosemead Sch Dist Os 2000 Set B U_00000 000000 000000 000000 0.00000 0,00000 0.04787 0.03984 0.03309 0.03081 629.52- Rosemead Sob Ds 2000 Ser C 0.00000 0.00600 0.00000 0.00000 0.00000 0.40000 000000 (1.00000 0 00000 0,02390 74551 - El Monte Un 3 Ds 2002 Ser A U.00u00 0.60000 0.00000 0.00000 6.00000 0,03573 0.03928 0.03707 6.00616 0,00910 745.52 - EI Monte Union Hi Ds 2002 Series B 0.00000 0.070000 0.06000 0.00000 0.00000 000000 0.00000 0.0171H 0.07670 0,00000 745.53 - HI Monte Un I4sd Ds 2(305 Ref Ads 0.00600 0.00000 0.06000 0.00000 0.00000 0,00000 0.00000 0.00000 U.O1560 0.01910 605.50 -L.A. Ccd Ds 2601 Ser -A 0.00000 0.00000 0.00000 0.01600 0.01460 0.00835 0.00569 0.00030 0.00115 090141 805.52- L.A. Ced Dt 2003 Set B 0.00000 0.00000 6.60000 0 -Oo060 0.00000 0,00041 0.00101 0.00084 000128 0.00000 805.53 -1..A. Ccd Ds 2003 Taxable S -C 0.00000 0.06000 0.06000 000000 0.410000 0.00099 0.00644 0.00072 0.000110 0,00000 605.54 - 1,,.11, Ccd Ds 2003 Ref Bond S -A 0Donee C 00000 0.06000 0.00000 C 00000 0111012 000874 0 -006-00 0 -00000 0,00000 805.55-L.A. Ccd Ds 2003 Taxable Ser 2004E 6.00000 6.00090 0.00000 0.00000 0.00000 17,00000 0 00132 0 00046 6.00079 0.00073 805.564-A. Ccd Ds 2001 Taxable Ser 2004A 0.06000 0.00000 0.00000 0.00000 0.00000 6176000 ©.00050 0.00004 0.00079 0,00067 805.51- Lace Ds Rei' 2001 Series 2005 A 0.00000 6.00000 0.01000 0,0000(7 0.00006 0.00000 0.00000 0.00546 0.00449 0,00393 805.58- 1,a Ccd Ds 2001.2006 Series B 0. MOM 6 -09000 0.004100 0.070000 O.CODuO 0 .00000 0.00000 0.60000 0.00437 0,00000 805,59 - 1 -a Ccd D5 2003, 2006 Series C 000006 0.00000 0,00000 0,00000 000000 0900(10 0.00060 0.00600 000959 6,00204 612.50- Pasadena Area Ccd Ds 2002 S -A aA0000 0,00000 0,00(10 0,00000 0 Wauo 0.00681 0 008 000410 6.00351 0.00023 612.51 - Pasadena Ccd Ds 2006 Series B 0.06000 000000 0.00000 000000 6.00000 0.00000 0.00000 0.00000 0.0 € 729 0,01752 812.52- Pasadena Ced Ds 2006 Ref Bd Sr C 000000 0,00000 0,00006 0.00000 C, 06000 0.00000 0.00000 0.06000 6.00000 6.60191 816.52- Rio Hondo Cc Ds Ser 2004A 0.00600 O.C6600 0.06000 0.00600 a, 60000 0.00000 0,02170 0.01 H02 000585 0.00644 616.53- Rio l tondo Ccd Ds 2005 Ref Bonds G. 00000 0.00600 0.00000 0.00000 0.00000 6.00000 0.00000 0.00000 0.00884 0.0072(; 899 .50_MontebeltoUnifDs1998 Set 98 6 .01030 0.62023 0.01894 0.01815 6.0169; 0.0E702 0.0:621 0,0f524 0,01438 0.01359 899. 51 - lilontebelto Unif Sd Ds 98 Ser99 0.00600 0.01026 0.01529 0.01456 0.01337 0.0:360 0.0 0.01207 0.01160 0.01095 Sel).52- Montebello Usd Ds 1998 Ser 2001 0 00000 000000 0 -0. 0.01099 0 00955 0.01015 0.00949 0.00898 0.00854 000812 899.53- Montebello tl,sd Ds 1998 Ser 2004 0.00060 0.000100 0.00000 0.00000 0.00000 0.00(106 0.00304 0.00526 0.06676 0.00859 899.54- Montebello Unified Ds 1998 Ser 2002 0.00000 000000 G -00000 000000 6.00600 0.06000 0,00000 000691 0,00824 0.01014 899.55 - Montebello Unif Ds 2004 SCI 2005 0.00000 0.00000 0,00000 0,00000 006000 0.00000 0,060(76 0,02207 0.01779 0.01542 920.51 - San Gabriel Usd Ds 2002 Ser -A 0.00000 0,00000 0,00000 0 WOW 005803 0,05224 005059 0.01828 0.01955 0.62176 920.52- San Gabriel Usd Ds 2002 Ser -T3 0.00606 0.00006 0.00000 0.00000 0.00000 0,00000 0,00670 0,00602 0.00534 0.00546 820.53- San Gabriel Usd Ds 2005 Ref Bonds 000000 0,00000 0,00000 0,00000 0.00000 0,00000 0.00000 0.02454 0.02437 6.02256 920.54- San Gabriel Usd Ds 2002 Set 2007 C 0 00000 6 00006 0 00006 0 Dance 0.000410 0,00006 O DCO6 41 0(1006 0.00000 0.00770 Total Direct & Overlapping Tax Rates 1.05260 1 ,06758 1.11186 1.26531 1.26925 1.30556 1.38044 1.44801 1.42640 1..43323 City's Share of 1'Y Levy Per Prop 13^ 0.06W 0.06682 0.06682 0.06682 606682 0.(16682 0.06682 0.06682 0.66682 006682 General Obligation Debt Rate Redevelopment Rate`* i, 01230 1.01209 1.01167 1 00990 1,00861 1,00755 1.00697 1.00604 1.00541 1,00450 Total Direct Rate 0.21304 020615 0.20298 021070 02.0818 0.21361 0.27574 0.21893 0.23351 024566 Notes: * In 19'78, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount This I.00% is shared by all taxing agencies for which the subjet within 41 addition to the 100% dxcd amount, property owners are charged taxes as a percentage of assessed property values for the payment 0f any voter approved bonds. City's share of 1 /o Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. *9 RDA rate is based on the largest RDA tax rate area (TRA) and includes only rare(s) from indebtedness adopted prior to 1989 per California State statute RDA direct ant rates are applied only to the incremental property va €ues. Source: I...A. County Assessor 1998/99 - 2007108 Tax Rate Table and 11D1. Coven & Cane 86 CITY OF ROSEMEAD Principal Property Tax Payers Current Year and Nine Years Ago Taxpayer Wal Mart Stores I.nc. Rosemead Hwang, LLC Rosemead Place, LLC Macy's California Inc. California Federal Savings Taiking, LLC 1683 Walnut Grove, LLC 420 Boyd Street LLC Diamond Flower Investment Group Raymond K. Chiang Trust Irish Construction Chicago Title Insurance Company Builder Square, LLC Vilcon Development, Inc. Shiung Kuo Yuan Ming T. & Grace T. Chen Aespace America, Inc. Irish Communication Company 2007/08 1998199 Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Value Ranl� Value Value Rank Value S 40,245,414 1 1.27% 30,951,900 2 0.98% 43,358,557 3 1.37% 15,738,600 4 0.50% 14,299,883 1 0.83% 12,896,573 5 0.41% 8,731,200 3 0.50% 9,218,760 6 0.29% 8,714,202 7 0.28% 8,414,820 8 0.27`%a 3,576,657 9 0.1.1% 3,537,359 10 0.11% 3,395,548 6 0.20% 9,360,000 2 0.54% 6,981,200 4 0.40`/0 3,800,000 5 0.22°/o 3,161,990 8 0.18% 2,573,429 t0 0,15% 29,408,608 7 1.70% 2,596,348 9 0.15% $ 176,652,842 5.58 84,308,206 4.87 The amounts shown above include assessed value data for both the City and the Redevelopment Agency. Source: Hdl Coren & Cone, Los Angeles County Assessor 2007/08 Combined Tax Rolls. CITY OF ROSEMEAD Property Tax Levies and Collections Last Ten Fiscal Years * Information not available. Source: HDL Coren. & Cone and Los Angeles County Auditor Controller's Office -I 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 1999 $ 984,721 940,904 95.55% - $ 940,904 95.55% 2000 1,013,510 1,106,595 109.18% - 1,106,595 109.18% 2001 1,059,067 1,261,833 119.1.5% - 1,261,833 119.15% 2002 1,111,483 1,168,453 105.13% - 1,168,453 105.13% 2003 1,181,683 1,161,629 9830% - 1,161,629 98.30% 2004 1,262,684 1,445,722 114.50% - 1,445,722 114.50% 2005 1,364,266 1,203,406 88.21% - 1,203,406 88.21% 2006 2,054,921 2,130,559 103.68% - 2,130,559 103.68% 2007 2,269,752 2,147,626 94.62% - 2,147,626 94.62% 2008 2,442,009 2,548,206 104.35% - 2,548,206 104.35% * Information not available. Source: HDL Coren. & Cone and Los Angeles County Auditor Controller's Office -I CITY OF ROSEMEAD Ratios of Outstanding Debt by Type Last Ten Fiscal Years Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. I These ratios are calculated using personal income and population for the prior calendar year :• Tax Percentage Debt Allocation of Personal Per Fiscal Year Bonds Income' Capita' 1998/99 35,300,000 2,46% 633 1.999/00 34,970,000 2.31% 617 2000 /01 34,625,000 2.14% 604 2001/02 34,255,000 2.10% 619 2002/03 33,830,000 2.00% 612 2003/04 33,385,000 1.93% 595 2004105 32,920,000 1.65% 580 2005/06 37,100,000 7.70% 649 2006/07 37,455,000 7.30% 655 2007/08 36,350,000 NIA 633 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. I These ratios are calculated using personal income and population for the prior calendar year :• CITY OF ROSEMEAD Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands, except Per Capita) General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has axone). Assessed value has been used because the actual value of taxable property is not readily available in the State of California. .o] Tax Pei-cent of Allocation Assessed Per Fiscal Year Bonds Value 1 Capita 1998/99 35,300 2.04% 633 1999/00 34,970 1.97% 617 2000/01 34,625 1.87% 604 2001102 34,255 1.76% 619 2002/03 33,830 1.63% 612 2003104 33,385 1.49% 595 2004/05 32,920 1.36% 580 2005/06 37,100 1.40% 649 2006/07 37,455 1.29% 655 2007/08 36,350 1.1.5% 633 General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has axone). Assessed value has been used because the actual value of taxable property is not readily available in the State of California. .o] CITE' OF ROSEMEAD Direct and Overlapping Governmental Activities Debt June 30, 20€38 Direct Debt Tax Allocation Bonds Total Direct Debt Percentage Gross Bonded Applicable Net Bonded Debt Balance To Citv Debt S 36,350,000 100.000% 36,350,000 36,350,000 Overlapping Debt Metropolitan Water District S 1.50,054,336 0.332% 498,180 Garvey School. District DS 2000 Series A 7,039,903 51.216% 3,605,557 Garvey School. District DS 2000 Serics B 6,394,519 51.216% 3,275,017 Garvey School District 2004 Series 2005 9,333,736 51.216% 4,780,366 Garvey Sch DS 2004 Ser 2006 1 0,999,898 51.216% 5,633,708 Garvey Sch DS 2004 Ser C 8,997,964 51.216% 4,608,397 Rosemead Sch Dist DS 2000 Ser A 6,945,000 69.363% 4,817,260 Rosemead Sch Dist DS 2000 Ser B 9,540,000 69.363% 6,617,230 Rosemead Sch DS 2000 Ser C 7,000,000 69.363% 4,855,410 El Monte U7\ HSD DS 2002 Ser A 5,285,000 13.997% 739,741 El Monte Union Hf DS 2002 Series B 7,540,000 13.997% 1,055,374 El Monte Un HSD DS 2006 Ref Bds 68,543,264 13.997% 9,594,001 L.A. CCD DS 2001 Ser A 34,590,000 0.319% 110,342 L.A. CCD DS 2003 Taxable Ser 2004B 79,545,000 0.319% 253,749 L.A. CCD DS 2001 Taxable Ser 2004A 101,235,000 0.319% 322,940 LACC DS Ref 2001 Series 2005 A 432,950,000 0.319% 1,381,111 LA CCD DS 2001 2006 Series B 322,500,000 0.320% 1,032,000 LA CCD DS 2003, 2006 Series C 400,000,000 0.319% 1 Pasadena Area CCD DS 2002 Series A 4,570,000 2.658% 121,471 Pasadena CCD DS 2006 Series B 58,840,000 2.658% 1,563,967 Pasadena CCD DS 2006 Ref BD Series C 21,705,552 2.658% 576,934 Montebello Unif DS 1998 Series 98 15,614,698 1.491% 232,815 Montebello Unif SD DS 98 Series 99 14,187,854 1.491% 211,541 Montebello USD DS 1998 Series 2001 13,902,827 1.491% 207,291 Montebello USD DS 1998 Series 2004 15,170,273 1.491% 226,189 Montebello Unified DS 1998 Series 2002 14,654,649 1.491% 218,501 Montebello Unif DS 2004 Ser 2005 28,445,000 1.491% 424,115 San Gabriel USD DS 2002 Series A 11,427,600 1.270% 145,131 San Gabriel USD DS 2002 Series B 6,723,892 1.270% 85,393 San Gabriel USD DS 2005 Ref Bonds 17,360,000 1.270% 220,472 San Gabriel USD DS 2002 Series 2007C 10,832,878 1.270% 137,578 Total Overlapping Debt 1,901,928,843 58,827,779 2007108 Assessed Valuation: 52,637,106,458 After Deducting Redevelopment Increment Debt to Assessed Valutation Ratios: Direct Debt 1.380% Overlapping Debt 2.23% Total Debt 3,61% * This fund is a portion of a larger agency, and is repsonsible for debt in areas outside the city. This report reflects debt which is being repaid through voter - approved property tax indebtedness. It excludes mortgage revenue, tax allocation bonds, interim financing obligations, non - bonded capital lease obligations, and certificates of participation, unless provided by the city. Source: Hd] Coren & Cone, L.A. County Assessor and Auditor Combined 2007108 Lien Date Tax Rolls. 91 CITY OF ROSEMEAD Legal Debt Margin infoiriation Last Ten Fiscal Years Fiscal Year Assessed valuation Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit Total net debt applicable to limit: General obligation bonds 1998199 1999100 2000101 2001102 2002/03 1,731,421,878 1,779,151,367 1,850,122,915 1,945,297,943 2,070,991,108 25% 25% 25% 25% 25% 432,855,470 444,787,842 462,530,729 486,324,486 51.7,747,777 1.5% 15% 15 %, 15% 15% 64,928,320 66,718,176 69,379,609 72,948,673 77,662,167 Legal debt margin 64,928,320 66,718,1.76 69,379,609 72,948,673 77,662,167 Total debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 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 1981 -82 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. Source: Rosemead Finance Department Los Angeles County Tax Assessor's Office 0.0% 0.0% Fiscal Year 2003/04 2004/05 2005/06 2006/07 2007108 2,240,938,488 2,422,878,306 2,644,964,038 2,901,902,093 3,165,802,509 25% 25% 25% 25% 25% 560,234,622 605,719,577 661,241,01.0 725,475,523 791,450,627 1.5% 1.5% 15% I5% 1.5% 84,035,1.93 90,857,936 99,186,151 108,821,328 11.8,717,594 84,035,193 90,857,936 99,186,151 108,821,328 118,717,594 U% 0.0% 0.0% 0.0% 0.0% 93 CITY OF ROSEMEAD Pledged - Revenue Coverage Last Ten Fiscal Years (In Thousands) Tax Allocation Bonds :Fiscal Year Ended Tax Debt Service June 30 Increment Principal Interest Coverage 1999 2,870,290 310,000 1,971,450 1.26 2000 2,990,564 330,000 1,951,663 1.31 2001 2,945,877 345,000 1,932,853 1.29 2002 3,197,754 370,000 1,91.2,843 1.40 2003 3,105,416 425,000 1,891,273 1.34 2004 3,376,579 445,000 1,870,873 1.46 2005 3,494,330 465,000 1,836,765 1.52 2006 3,31.0,295 490,000 1,559,114 1.62 2007 4,029,714 780,000 1,505,781 1.76 2008 6,219,884 1,105,000 1,567,849 2.33 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses. .. CITY OF ROSEMEAD Demographic and Economic Statistics Last Ten Calendar Years Sources: (1) California State Department of Finance (2) U.S. Department of Commerce - Bureau of Economic Analysis (3) State of California Employment Development Department (data shown is for the County) 95 Per Personal Capita unemployment Fiscal Population Income Personal Rate Year (1) (in thousands) (2 Income (2) (3) 1998199 56,664 1,517,065 26,773 5.60% 1999100 57,328 1 28,276 5.40% 2000101 55,351 1,634,072 29,522 5.90% 2001102 55,289 1,692,452 30,611 6.10°/ 2002103 56,065 1,727,026 30,804 6.80% 2003104 56,710 1,991,372 35,115 6.00% 2004105 57,189 482,011 36,746 4.50% 2005106 57,144 513,123 39,011 4.60% 2006107 57,427 539,163 41,875 4.90% 2007108 57,422 NIA NIA 4.47% Sources: (1) California State Department of Finance (2) U.S. Department of Commerce - Bureau of Economic Analysis (3) State of California Employment Development Department (data shown is for the County) 95 CITY OF ROSEMEOD Principal Employers Current Year and .Nine Years Ago I Based upon Employment Development Department's estimate of 23,600 residents employed in 2007-08. * Information for 1999 is not available. Source: City of Rosemead and Rosemead Chamber of Commerce 2008 1999 * Percent of Percent of Number of Total. Number of Total Employer Employees Employment 1 Employees Employment Southern California Edison 1 6,000 24.39% - 0.00% Garvey School District 2 S00 3.25% - 0.00% Panda Restaurant Group, Inc. 3 500 2.03% - 0.00% Walmart 4 460 1.87% - 0.00% Rosemead School District 5 375 1.52 - 0.00% Hemetic Seal Corporation 6 350 1.42% - 0.00% Irish Construction 7 350 1.42% - 0.00% Target 8 230 0.93% - 0.00% Marge Carson, Inc. 9 90 0.37% - 0.00% Don Bosco Tech. 10 90 0.37% - 0.00% Double Tree 11 90 0.37% - 0.00% I Based upon Employment Development Department's estimate of 23,600 residents employed in 2007-08. * Information for 1999 is not available. Source: City of Rosemead and Rosemead Chamber of Commerce CITY OF ROSEMEAD Full -time and Part-time City Employees by Function Last Ten Fiscal Years Total 138 149 148 148 161 139 132 150 151 179 ' 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 f`ightii fire prevention, and plan check services for the City. The City of Rosemead also contracts for Public Works and Engineering services. Source: City Finance Department 97 Full- "Time and Part -time Employees as of June 30 Function 1999 2000 2001 2002 2003 2004 2005 2006 2007 2005 General government 17 16 16 19 16 14 15 18 17 19 Public safety 1 25 25 19 16 23 22 17 23 22 34 Community development 5 8 12 6 5 6 6 6 11 23 Parks and recreation 91 1.00 101 107 117 97 94 103 101 103 Total 138 149 148 148 161 139 132 150 151 179 ' 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 f`ightii fire prevention, and plan check services for the City. The City of Rosemead also contracts for Public Works and Engineering services. Source: City Finance Department 97 CITY OF ROSEMEAD Operating Indicators by Function Last Ten Fiscal Years Source: City of Rosemead Fiscal Year I999 2000 2001 2002 2003 2004 2005 _ 2006 2007 2008 Police: Arrests 1,366 1,292 1,310 1,299 1,102 1,081 1,230 1,315 1,786 1,506 Parking citations issued n/a n/a n/a n/a n/a 14,676 18,357 15,176 13,210 11,766 Fire: Number of emergency calls n/a n/a 2,634 2,809 2,728 2,733 2,800 2,868 2,994 3,094 Inspections 117 117 117 117 117 117 117 117 117 2,518 Public works: Street resurfacing (miles) 14 4.9 - 1.7 - 1.3 - 13 2.5 1.1 Parks and recreation: Number of recreation classes 350 400 400 400 420 450 530 720 775 484 Number of facility rentals n/a Lila n/a n/a n/a n/a n/a n/a n/a 540 Source: City of Rosemead CITY OF ROSEMEAD Capital Asset Statistics by Function Last Tell Fiscal Years Fiscal Year Source: City of Rosemead 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Public Safety: Sheriff stations 1 1. 1 1 1 1 1 1 1 1 Fire: Fire stations 2 2 2 2 2 2 2 2 2 2 Public works: Streets (miles) 76.80 76.80 76.80 76.80 76.80 76.80 76.80 76.80 76.80 77.55 Streetlights 2,371 2,483 2,571 2,506 2,700 2,700 2,702 2,705 2,706 2,712 Traffic signals 39 39 39 39 39 39 39 39 41 42 Parks and recreation: P 10 10 10 10 10 10 10 10 10 10 Community centers 2 2 2 2 2 2 2 2 2 2 Source: City of Rosemead 0 (This page intentionally left blank) we