CC - Item 4B - Attachment B Rosemead Financial Statement Final CAFRCity of Rosemead, CA
Comprehensive Annual
Financial Report
Fiscal Year Ended June 30, 2018
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CITY OF ROSEMEAD, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................. i
Directory of Officials .............................................................................................................................. vii
Organizational Chart ............................................................................................................................ viii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT .................................................................................................. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS ................................................................................ 5
Government–Wide Financial Statements
Statement of Net Position ............................................................................................................... 16
Statement of Activities .................................................................................................................... 17
Fund Financial Statements
Balance Sheet – Governmental Funds .......................................................................................... 18
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position .................................................................................................... 19
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds ................................................................................................... 20
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities .................................................................................................................... 21
Statement of Net Position – Proprietary Funds .............................................................................. 22
Statement of Revenues, Expenses and Changes in Fund Net
Position – Proprietary Funds .......................................................................................................... 23
Statement of Cash Flows – Proprietary Funds .............................................................................. 24
Statement of Fiduciary Net Position – Fiduciary Funds ................................................................. 25
Statement of Changes in Fiduciary Net
Position – Fiduciary Funds ............................................................................................................. 26
Notes to Financial Statements ........................................................................................................... 27
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information ................................................................................. 63
Budgetary Comparison Schedules
General Fund .............................................................................................................................. 64
State Gas Tax Fund .................................................................................................................... 65
CITY OF ROSEMEAD, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page
Number
FINANCIAL SECTION (Continued)
Pension Plan
Schedule of Proportionate Share of Net Pension Liability .......................................................... 66
Schedule of Plan Contributions ................................................................................................... 67
Schedule of Changes in Net Pension Liability and Related Ratios ............................................ 68
Schedule of Plan Contributions ................................................................................................... 69
Schedule of Changes in Net OPEB Liability and Related Ratios ................................................ 70
Schedule of Plan Contributions ................................................................................................... 71
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Nonmajor Governmental Funds ........................................................... 72
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Governmental Funds ......................................................... 78
Budgetary Comparison Schedules
Local Transportation/ Sidewalk Grant ......................................................................................... 8 4
Proposition A ............................................................................................................................... 85
Proposition C ............................................................................................................................... 86
Measure R ................................................................................................................................... 87
Measure M................................................................................................................................... 88
Air Quality Management District .................................................................................................. 89
Street Lighting ............................................................................................................................. 90
Development Impact Fee Traffic ................................................................................................. 91
Development Impact Fee Public Safety ...................................................................................... 92
Development Impact Fee General Government ......................................................................... 93
Development Impact Fee Parks .................................................................................................. 94
Community Development Block Grant (CDBG) .......................................................................... 95
Home Program ............................................................................................................................ 96
Rosemead Housing Development Corporation .......................................................................... 97
Road Maintenance and Rehabilitation Account SB1 ................................................................. 98
City Capital Projects .................................................................................................................... 99
Combining Statement of Net Position – Internal Service Funds ..................................................... 100
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position – Internal Service Funds .................................................................................... 101
Combining Statement of Cash Flows – Internal Service Funds ...................................................... 102
Combining Statement of Assets and Liabilities – Agency Fund ...................................................... 103
CITY OF ROSEMEAD, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page
Number
STATISTICAL SECTION
Net Position by Component .......................................................................................................... 107
Changes in Net Position ............................................................................................................... 109
Fund Balances of Governmental Funds ....................................................................................... 111
Changes in Fund Balances of Governmental Funds .................................................................... 113
Assessed Value and Estimated Actual Value of Taxable Property .............................................. 115
Direct and Overlapping Property Tax Rates ................................................................................. 116
Principal Property Taxpayers ....................................................................................................... 117
Property Tax Levies and Collections ............................................................................................ 118
Ratios of Outstanding Debt by Type............................................................................................. 129
Ratio of General Bonded Debt Outstanding ................................................................................. 120
Direct and Overlapping General Bonded Debt Outstanding ........................................................ 121
Legal Debt Margin ........................................................................................................................ 123
Pledged-Revenue Coverage ........................................................................................................ 125
Demographic and Economic Statistics ......................................................................................... 126
Principal Employers ...................................................................................................................... 127
Full-time and Part-time City Employees by Function ................................................................... 128
Operating Indicators by Function .................................................................................................. 129
Capital Assets Statistics by Function ........................................................................................... 131
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CITY OF ROSEMEAD
Directory of Officials
June 30, 2018
City Council
Steven Ly, Mayor
Margaret Clark, Mayor Pro Tem
Sandra Armenta, Council Member
Sean Dang, Council Member
Polly Low, Council Member
City Management Staff
Gloria Molleda, City Manager
Greg Tsujiuchi, Assistant City Manager
Lt. Chris Kusayanagi, Chief of Police
Rachel H. Richman, City Attorney
Ericka Hernandez, City Clerk
Reynold P. Alfonso, Public Works Director
Benjamin Kim, Community Development Director
Pearl Lieu, Finance Director
Vacant, Parks and Recreation Director
vii
CITY OF ROSEMEAD
Function Based Organization Chart
viii
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of City of Rosemead, California, (the City) as of and for the
year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise
the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Auditor’s Responsibility
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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022
An Association of Independent Accounting Firms
To the Honorable Mayor and Members of the City Council
City of Rosemead, California
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, major fund, and the aggregate remaining fund
information of the City of Rosemead, California, as of June 30, 2018, and the respective changes in
financial position and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Change in Accounting Principle
As discussed in Note 1 to the financial statements, in 2018 the City adopted new accounting guidance,
GASBS No. 75, Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions.
Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the budgetary comparison schedules for the general fund and gas tax fund, the
schedule of changes in net pension asset and related ratio, the schedules of plan contributions, the
schedule of proportionate share of the net pension liability, and the schedule of changes in net OPEB and
related ratio be presented to supplement the basic financial statements. Such information, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s responses to
our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual
nonmajor fund financial statements and schedules, and statistical section are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility
of management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the combining and individual nonmajor fund financial
statements and schedules are fairly stated in all material respects in relation to the basic financial
statements as a whole.
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To the Honorable Mayor and Members of the City Council
City of Rosemead, California
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 17, 2018 on our consideration of the City’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely 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 effectiveness of the City’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City’s internal control over financial reporting and compliance.
December 17, 2018
Brea, California
3
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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, 2018. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of
transmittal and the City’s financial statements.
Financial Highlights
General Fund fund balance at the end of Fiscal Year 2017/18 increased $1.45 million.
This increase is due to an increase in property tax, sales tax, transient occupancy tax
(TOT), and building permit revenues.
At the end of the current fiscal year, unassigned fund balance for the General Fund was
$10.7 million or 47 percent of total General Fund expenditures. $7.6 million or 31% is set
aside to meet the City’s reserve policy.
The assets related to Governmental Activities has increased by approximately $3.7 million
which is largely due to an increase in both cash and investments and capital assets.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Rosemead’s
basic financial statements. The City of Rosemead’s basic financial statements comprise three
components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes
to the financial statements. This report also contains other supplemental information in addition
to the basic financial statements themselves.
Government-wide Financial Statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Rosemead’s finances, in a
manner similar to private-sector business.
The statement of net position presents information on all of the City of Rosemead’s assets and
liabilities, with the difference between the two reported as net position. 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 position
changed during the most recent fiscal year. All changes in net position are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that
will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but
unused vacation leave).
5
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 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 Successor Agency, 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 16-17 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or objectives.
The City of Rosemead, like other state and local governments, uses fund accounting to ensure
and demonstrate compliance with finance-related legal requirements. All of the funds of the
City of Rosemead can be divided into three categories: governmental funds, internal service funds
and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City of Rosemead and its component units maintain 18 active governmental funds.
Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures, and changes in fund balances for the
General Fund and State Gas Tax Fund, all two of which are considered to be major funds. Data
from the other 16 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.
6
The City of Rosemead adopts an annual appropriated budget for all its funds. A budgetary
comparison statement has been provided for the General Fund, State Gas Tax Fund, Local
Transportation/Sidewalk Grant, Proposition A Fund, Proposition C Fund, Measure R Fund,
Measure M Fund, Air Quality Management District Fund, Street Lighting Fund, Development
Impact Fee Funds, Community Development Block Grant Fund, HOME Program Fund,
Rosemead Housing Development Corporation Fund, Road Maintenance and Rehabilitation
Account SB1 Fund, and City Capital Projects Fund, to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 18-21 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statement because the resources of those funds are not available to support the
City of Rosemead’s own programs. The accounting used for fiduciary funds is much like that
used for proprietary funds. The basic fiduciary fund financial statements can be found on
pages 25-26 of this report.
Notes to the financial statements. The notes provide additional information that is essential
to a full understanding of the data provided in the government-wide and fund financial statements.
The notes to the Basic Financial Statements can be found on pages 27-61 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the City of
Rosemead’s progress in funding its obligation to provide pension benefits to its employees.
Required supplementary information and notes can be found beginning on pages 63-71 of
this report.
The combining statements referred to earlier in connection with non-major governmental funds
and internal service funds are presented immediately following the required supplementary
information on pensions. Combining and individual fund statements and schedules can be found
on pages 72-103 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the City of Rosemead, assets and deferred outflows of resources
exceeded liabilities and deferred inflows of resources (net position) by $74.4 million at the close
of the most recent fiscal year.
A significant portion of the City of Rosemead’s net position (72%) reflects its investment in
capital assets (e.g. land, buildings, machinery, and equipment); less any related outstanding debt
used to acquire those assets. The City of Rosemead uses these capital assets to provide services
to the citizens; consequently, these assets are not available for future spending. Although the
City of Rosemead’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since
the capital assets themselves cannot be used to liquidate these liabilities.
7
2018 2017
Current and other assets 30,515$ 27,620$
Capital assets 53,587 52,806
Total assets 84,102 80,426
Deferred outflows of resources 4,232 5,018
Long-term liabilities outstanding 10,268 8,876
Other liabilities 2,930 2,652
Total liabilities 13,198 11,528
Deferred inflows of resources 783 1,033
Net position:
Net investment in capital assets 53,587 52,806
Restricted 5,467 4,387
Unrestricted 15,299 15,690
Total net position 74,353$ 72,883$
City of Rosemead's Net Position
As of June 30, 2018 and 2017
(thousands)
Governmental Activities
An additional portion of the City of Rosemead’s net position (4.7%) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of unrestricted
net position ($17.2 million) 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 position
balances. The situation also held true for the prior fiscal year.
Governmental activities. Governmental activities increased the City of Rosemead’s net
position by $3.7 million. General revenue and program revenue exceeded expenses by this
amount. The expenses increased in General Government, Public Safety, and Public Works;
however, the total Program and General Revenues offset these increases. These expense
increases are largely due to salary and benefit costs, litigation costs, law enforcement increases,
capital expenditures increases for construction projects, and equipment and machinery
purchases including the purchase of two pool heaters, tables and chairs for events, bingo
machine, wood chipper machine, and a newly redesigned City’s website.
8
2018 2017
Program revenues:
Charges for services 7,864$ 4,646$
Operating grants and contributions 4,822 5,636
Capital grants and contributions 1,172 1,019
General revenues:
Property taxes 9,129 8,643
Other taxes 9,570 8,804
Investment income 210 21
Other 648 738
Total revenues 33,415 29,507
Expenses:
General government 4,554 3,706
Public safety 9,500 8,935
Public works 9,554 7,324
Community development 3,410 3,161
Parks and recreation 2,746 2,154
Total expenses 29,764 25,280
Change in net position 3,651 4,227
Net position ‐ June 30, 2017 72,884 68,657
Restatement (2,182) ‐
Net position ‐ June 30, 2018 74,353$ 72,884$
City of Rosemead's Changes in Net Position
Activities
Governmental
Years Ended June 30, 2018 and 2017
(thousands)
9
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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, unassigned fund balance may serve
as a useful measure of a government’s net resources available for spending at the end of
the fiscal year.
As of the end of the current fiscal year, the City of Rosemead’s governmental funds reported
combined fund balances of $25.9 million, an increase of $3.1 million in comparison with the
prior year. Approximately 41% of this total amount, $10.6 million constitutes unassigned,
undesignated fund balance, which is available for spending at the government’s discretion. The
remainder of the fund balance is segregated into nonspendable fund balance, restricted fund
balance, committed fund balance or assigned fund balance to indicate that it is not available for
new spending because it has already been committed for other purposes.
General Fund. The General Fund is the chief operating fund of the City of Rosemead. At the end
of the current fiscal year, the unassigned fund balance of the general fund was $10.7 million, while
total fund balance reached $20.5 million. As a measure of the General Fund’s liquidity, it may be
useful to compare both unassigned fund balance and total fund balance to total fund expenditures.
Unassigned fund balance represents 47% of total General Fund expenditures, while total fund
balance represents 89% of that same amount.
The fund balance of the City of Rosemead’s General Fund increased by $1.5 million during the
current year. Highlights of the change in fund balance are presented below:
The General Fund revenues exceeded expenditures and; therefore, fund balance had an
increase of $1.5 million. Several revenues had large increases including Property Tax,
Sales Tax, TOT, County Grants, Miscellaneous Revenues, and Building Permits.
Additional highlights of the change in fund balance are presented below.
General Fund revenues increased $2.1 million in FY 2017/18 over the prior year. The
largest revenue categories were: property tax increased $486 thousand, sales tax
increased $563 thousand, TOT increased $114 thousand, County Grants increased
$100 thousand, Miscellaneous Revenues increased $295 thousand, and Building Permits
increased $412 thousand. Property taxes increased due to the net tax value increasing
by 4% for the 2017/18 tax roll. Sales tax increase is attributed to the growth in the overall
economy and in consumer spending. The opening of Ross, Sunshine Seafood restaurant,
and taking into account a full-year operation of Lucille’s BBQ restaurant and two used car
automotive also contributed to the increase in sales tax revenues. TOT increase is due
to the addition of the Hartford Hotel, bringing in a total of $120 thousand TOT in
FY 2017/18. The City received a reimbursement of $100 thousand from the LA County
for the city-wide tree planting grant. The City also received a reimbursement of
$276 thousand from Southern CA Edison for participating in the LED light conversion.
Lastly, the substantial increase in building permits is due to the collection of fees for
several mixed-used projects, a 21-unit residential planned development, and several new
single-family dwelling development.
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General Fund expenditures increased $1.9 million over the prior year for the following
reasons:
o Public safety expenditures is one of the City’s largest area of expenditures. The
Los Angeles County’s Sheriff’s Department contract increased by 2.57% over the
previous year and the Liability Trust Fund increased 0.5% as well. This attributed
to an increase in public safety expenditures of $263 thousand.
o Public works expenditures increased $324 thousand primarily due to the addition
of one new maintenance worker and one temporary part-time maintenance worker
to backfill a position that was on leave. The City also had an increase in janitorial
service costs when the contract went out for bid; the new contract was almost
doubled in costs. The water and utility costs increased as a result of the opening
of the new Zapopan Park. In addition, the City complied with the ruling of the
Ninth Circuit Court of Appeals for the Flores v. City of San Gabriel case and made
retroactive payments of overtime for changes in FLSA regulations.
o Parks and Recreation expenditures increased $82 thousand primarily due to the
purchase of two pool heaters replacement which amounted to $90 thousand. The
brochure costs were previously allocated to multiple departments. In the current
year, the City recorded the total brochure costs in the Parks and Recreation
department in order to improve the tracking of costs; therefore, the brochure costs
increased in this department by $20 thousand. The department also purchased a
new bingo machine and tables and chairs to replace the old machine and furniture
that were deteriorated. Fireworks costs for the 4th of July special event also
increased by $24 thousand. These increases were offset by decreases in other
Parks and Recreation expenditures.
o Legal fees increased $530 thousand as a result of attorney fee increases and
litigations.
o The City, like all other cities, are faced with an increase in retirement costs as a
result of the discount rate and assumption changes approved by the CalPERS
board; this has impacted the actuarial valuation performed and caused an increase
to participants’ retirement contributions.
General Fund Budget Analysis. The City’s General Fund collected revenues of slightly less than
$2.2 million in comparison to the budgeted estimates or 10% more than the budget. Property tax
increases of $486 thousand due to an increase in tax values. Sales tax increases of
$563 thousand was driven by an improving economy and the opening of some new restaurants
and businesses and the increase of $114 thousand in Transient Occupancy Tax was due to
the addition of a new hotel. Building permits increased $412 thousand due to various
mixed-use projects.
12
The General Fund expenditure budget to actual variance of $207 thousand was due to the City
did not budget for the increase in building fees as a result of more mixed-used projects than
anticipated; however, the costs were offset by revenues.
Proposition A, C, Measure R and Measure M Funds. These four funds are for transportation
purposes and they are all funded with voter approved additions to Sales Tax on gasoline.
The Prop A Fund is used mainly for public transportation services (fixed route bus service and
Dial-A-Ride services); Proposition C has some transportation elements to it but it is focused more
on transportation infrastructure maintenance purposes. Measure R and Measure M mainly focus
on new transportation infrastructure development. Expenditures for the Proposition A fund are
increasing as greater efforts are being made to increase fixed route ridership as are the operating
expenditures for Dial-A-Ride in the Proposition C Fund. The City is utilizing Measure R and
Measure M funds for capital improvement projects for street improvements, paving, sidewalk
installation, traffic study, and transportation program planning.
Rosemead Housing Development Corporation (RHDC). The RHDC Fund receives its funding
from tenant rents and subsidies from the Successor Agency. As operational costs have continued
to increase and tenant rents have remained relatively constant, the reliance on the subsidy from
the Successor Agency has become more important. Through the elimination of redevelopment
this obligation was submitted and subsequently approved by the Department of Finance as an
enforceable obligation which will ensure ongoing funding for the RHDC into the future. As such,
revenues and expenditures in this fund will typically balance out at the end of each fiscal year with
just a minimal balance remaining due to timing issues.
Vehicle Replacement and Technology Replacement Funds. These funds are utilized to cover
the costs of equipment and vehicle replacement over time. Using departments are assessed
charges for equipment used by them. The charges are accumulated in the internal service funds
for future replacement of vehicles and equipment.
Capital Asset and Debt Administration
Capital assets. The City of Rosemead’s investment in capital assets for its governmental
activities as of June 30, 2018, amounts to $53.6 million (net of accumulated depreciation). This
investment in capital assets includes land, buildings and improvements, machinery and
equipment, park facilities, roads, highways, bridges and construction in progress.
Major capital asset events during the current fiscal year included the following:
Completion of the new Zapopan Park
Completion of the new Jay Imperial Park
Completion of the Hellman/Del Mar intersection improvements
Earle/Wells Street sidewalk installation
Pedestrian lighting in Rosemead Park
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Redesign of City’s Website
Construction in progress for Safe Route to School Project (Savannah Elementary)
Construction in progress for Garvey Avenue Resurfacing Project (from Del Mar Ave to
Eastern City Limit)
Construction in progress for Circulation Study of Klingerman and Angelus streets
Construction in progress for Traffic Signal Upgrades
Construction in progress for Walnut Grove Avenue Resurfacing Project
Construction in progress for Garvey Center Electric Charging Station Project
2018 2017
Land 4,417$ 4,417$
Buildings 14,411 14,897
Improvements other than
Buildings 3,955 995
Machinery and equipment 131 52
Autos and trucks 351 521
Furniture and office equipment 133 189
Infrastructure 28,590 28,725
Construction in progress 1,599 3,010
Total 53,587$ 52,806$
Governmental Activities
City of Rosemead's Capital Assets
(net of depreciation)
(thousands)
Additional information on the City of Rosemead’s capital assets can be found in note No. 7, found
on page 41 of the Basic Financial Statements.
Long-term debt. At the end of the current fiscal year, the Successor Agency for the
Rosemead Community Development Commission had total bonded debt outstanding of
$29,455,000. Of this amount, all of it is backed by future property tax increment revenues.
14
The Successor Agency’s total bonded debt decreased by $2.3 million during the current
fiscal year due to principal and interest payments. For more detailed information about
the Successor’s Agency Long Term Debt, please refer to Note No. 14 on page 60 of the
Basic Financial Statements.
Economic Factors and Next Year’s Budgets and Rates
As discussed throughout this Management’s Discussion and Analysis report, there were
large General Fund revenue increases in FY 2017/18. Property tax revenues have shown
modest increases and are projected to continue with steady growth pattern. Sales taxes
are expected to increase significantly due to new restaurants and stores addition to the
community. License and permit revenues are expected to increase due to an increase in
growth and development in the City. Additionally, TOT revenues are expected to increase
due to future projects with the Hampton Inn & Suites.
The local economy is projected to continue its modest growth in the coming year and has
been reflected in the City’s FY 2018/19 Revenue budget. At the time of budget preparation
and up to its adoption, General Fund Revenue is projected to increase 6% over the
FY 2017/18 budgeted amount.
The City adopted the General Fund FY 2018/19 budget with a projected $18 million fund
balance reserve. With the FY 2017/18 revenue surplus, the projected fund balance for
the General Fund is $19 million. The Operating Budget for Fiscal Year 2018/19 is a well
balanced budget. In order to maintain a balanced budget, it will be essential for the City
to continue its history of conservative spending.
Requests for Information
This financial report is designed to provide a general overview of the City of Rosemead’s finances
for all those with an interest in the government’s finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be
addressed to:
Finance Director
8838 East Valley Boulevard
Rosemead, CA 91770.
2018 2017
Tax Allocation Bonds 29,455$ 31,775$
Governmental Activities
City of Rosemead's Outstanding Debt
Revenue Bonds
(thousands)
15
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF NET POSITION
Governmental
Activities
Assets:
Cash and investments 25,888,483$
Receivables:
Accounts 2,895,972
Notes and loans 355,113
Accrued interest 79,015
Prepaid costs 853,920
Inventories 2,034
Capital assets, not being depreciated 6,016,414
Capital assets, net of depreciation 47,570,829
Net pension asset 440,540
Total Assets 84,102,320
Deferred Outflows of Resources:
Deferred outflows related to pensions 4,232,015
Total Deferred Outflows of Resources 4,232,015
Liabilities:
Accounts payable 2,260,192
Accrued liabilities 292,370
Deposits payable 102,531
Noncurrent liabilities:
Compensated absences, due within one year 275,103
Compensated absences, due in more than one year 397,882
Net pension liability 9,309,566
Net other post employment benefits liability 560,139
Total Liabilities 13,197,783
Deferred Inflows of Resources:
Deferred inflows related to pensions 669,194
Deferred inflows related to other post employment benefits 113,894
Total Deferred Inflows of Resources 783,088
Net Position:
Investment in capital assets 53,587,243
Restricted:
Community services 246,135
Low and moderate income housing 286,648
Public works 3,021,851
Capital projects 1,912,732
Unrestricted 15,298,855
Total Net Position 74,353,464$
JUNE 30, 2018
The notes to financial statements are an integral part of this statement. 16
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2018
Net (Expenses)
Revenues and
Changes in
Net Position
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs
Governmental Activities:
General government 4,554,063$ 328,824$ 1,440,347$ -$ (2,784,892)$
Public safety 9,499,683 685,191 - 1,101,960 (7,712,532)
Community development 3,409,699 3,328,451 936,804 - 855,556
Parks and recreation 2,746,482 828,038 - - (1,918,444)
Public works 9,554,073 2,693,222 2,444,741 70,464 (4,345,646)
Total Governmental Activities 29,764,000$ 7,863,726$ 4,821,892$ 1,172,424$ (15,905,958)$
General Revenues:
Taxes:
Property taxes, levied for general purpose 9,128,934
Sales taxes 5,929,492
Transient occupancy taxes 2,326,863
Franchise taxes 1,202,645
Other taxes 111,054
Use of money and property 210,288
Other 647,888
Total General Revenues 19,557,164
Change in Net Position 3,651,206
Net Position at the Beginning of the Year,
as Originally Reported 72,883,969
Restatement (2,181,711)
Net Position at the Beginning of the Year,
as Restated 70,702,258
Net Position at the End of the Year 74,353,464$
Program Revenues
The notes to financial statements are an integral part of this statement. 17
CITY OF ROSEMEAD, CALIFORNIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2018
Special
Revenue Fund
Other Total
Governmental Governmental
General Funds Funds
Assets:
Cash and investments 19,525,880$ 452,151$ 5,288,930$ 25,266,961$
Receivables:
Accounts 2,124,711 484,656 286,605 2,895,972
Notes and loans 355,113 - - 355,113
Accrued interest 79,015 - - 79,015
Prepaid costs 853,920 - - 853,920
Due from other funds 63,521 - - 63,521
Inventories 2,034 - - 2,034
Total Assets 23,004,194$ 936,807$ 5,575,535$ 29,516,536$
Liabilities, Deferred inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 1,876,474$ 66,165$ 317,509$ 2,260,148$
Accrued liabilities 255,928 3,474 32,968 292,370
Deposits payable 484 - 39,529 40,013
Due to other funds - - 63,521 63,521
Retentions payable - 29,150 33,368 62,518
Total Liabilities 2,132,886 98,789 486,895 2,718,570
Deferred Inflows of Resources:
Unavailable revenues 387,027 484,656 5,660 877,343
Total Deferred Inflows of Resources 387,027 484,656 5,660 877,343
Fund Balances:
Nonspendable:
Prepaid costs 853,920 - - 853,920
Notes and loans 128,026 - - 128,026
Restricted:
Community services - - 246,135 246,135
Low and moderate income housing - - 286,648 286,648
Public works - 96,439 2,925,412 3,021,851
Capital projects - 256,923 1,655,809 1,912,732
Committed:
Capital projects 1,174,500 - - 1,174,500
Reserve contingency 7,585,789 - - 7,585,789
Assigned:
Building maintenance 63,298 - - 63,298
Tree in lieu 16,500 - - 16,500
Unassigned 10,662,248 - (31,024) 10,631,224
Total Fund Balances 20,484,281 353,362 5,082,980 25,920,623
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 23,004,194$ 936,807$ 5,575,535$ 29,516,536$
State Gas Tax
The notes to financial statements are an integral part of this statement. 18
CITY OF ROSEMEAD, CALIFORNIA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2018
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances - governmental funds 25,920,623$
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.53,471,900
Compensated absences are not due and payable in the current period, and
therefore, are not reported in the funds.(672,985)
Governmental funds report all pension contributions as expenditures; however,
in the statement of activities, the excess/deficiency of the total pension liability
over/under the plan fiduciary net position is reported as a net pension liability/asset.
CalPERS Miscellaneous Plan net pension liability (9,309,566)$
PARS Retirement Enhancement Plan net pension asset 440,540 (8,869,026)
Pension-related deferred outflows of resources that have not been included as
financial uses in the governmental fund activity are as follows:
Contributions made after the actuarial measurement date 1,487,464
Changes in assumptions 1,194,717
Difference between expected and actual experiences 9,629
Net difference between projected and actual earnings on plan investments 330,676
Adjustments due to differences in proportions 263,329
Difference in proportionate share 946,200 4,232,015
Pension-related deferred inflows of resources that have not been included as
financial resources in the governmental fund activity are as follows:
Changes in assumptions (91,098)
Difference between expected and actual experiences (385,656)
Difference in proportionate share (192,440) (669,194)
Governmental funds report all other post-employment benefits contributions as
expenditures; however, in the statement of net position, the excess of the total
other post-employment benefits liability over the plan fiduciary net position is
reported as a net other post-employment benefits liability.(560,139)
Other post-employment-related deferred inflows of resources that have not been
included as financial resources in the governmental fund activity are as follows:
Net difference between projected and actual earnings on plan investments (113,894)
Revenues reported as unavailable revenue in the governmental funds are recognized
in the statement of activities.877,343
Internal service funds are used by management to charge the costs of certain
activities, such as equipment and technology replacement, to individual funds.
The assets and liabilities of the internal service funds must be added to the
statement of net position.736,821
Net position of governmental activities 74,353,464$
The notes to financial statements are an integral part of this statement. 19
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Other Total
Governmental Governmental
General Funds Funds
Revenues:
Taxes 18,698,988$ -$ -$ 18,698,988$
Licenses and permits 3,128,000 - - 3,128,000
Intergovernmental 268,249 1,185,995 6,548,392 8,002,636
Charges for services 1,035,353 - 536,913 1,572,266
Use of money and property 207,128 432 2,728 210,288
Fines and forfeitures 633,711 - - 633,711
Contributions 2,522 - - 2,522
Developer participation - - 28,591 28,591
Miscellaneous 496,335 62,507 4,974 563,816
Total Revenues 24,470,286 1,248,934 7,121,598 32,840,818
Expenditures:
Current:
General government 4,366,806 2,304 177,679 4,546,789
Public safety 9,132,154 - 186,704 9,318,858
Community development 2,032,927 - 1,246,161 3,279,088
Parks and recreation 2,366,338 - 20,125 2,386,463
Public works 4,042,401 567,515 1,944,732 6,554,648
Capital outlay 958,294 1,165,056 1,482,745 3,606,095
Total Expenditures 22,898,920 1,734,875 5,058,146 29,691,941
Excess of Revenues over Expenditures 1,571,366 (485,941) 2,063,452 3,148,877
Other Financing Sources (Uses):
Transfers in - - 121,361 121,361
Transfers out (121,361) - - (121,361)
Total Other Financing Sources (Uses)(121,361) - 121,361 -
Net Change in Fund Balances 1,450,005 (485,941) 2,184,813 3,148,877
Fund Balances at the Beginning of the Year 19,034,276 839,303 2,898,167 22,771,746
Fund Balances at the End of the Year 20,484,281$ 353,362$ 5,082,980$ 25,920,623$
State Gas Tax
Special
Revenue Fund
The notes to financial statements are an integral part of this statement. 20
CITY OF ROSEMEAD, CALIFORNIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2018
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds 3,148,877$
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of these assets is allocated over their estimated
useful lives and reported as depreciation expense. This is the amount by which
capital outlays exceeded depreciation expense in the current period.
Capital outlay 3,631,802$
Depreciation (2,810,384) 821,418
Compensated absences expenses reported in the statement of activities do not
require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.(39,027)
CJPIA retrospective deposit expenses reported in the statement of activities do not
require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.231,905
Pension obligation expenses reported in the statement of activities do not require
the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.(1,008,968)
Other post-employment benefits obligation expenses reported in the statement of
activities do not require the use of current financial resources and, therefore, are
not reported as expenditures in governmental funds.(158,162)
Revenues reported as unavailable revenue in the governmental funds are
recognized in the statement of activities. These are included in the operating
contributions and miscellaneous income in the statement of activities.574,388
Internal service funds are used by management to charge the costs of certain
activities, such as equipment and technology replacement, to individual funds.
The net revenues of the internal service funds are reported with governmental
activities.80,775
Change in net position of governmental activities 3,651,206$
The notes to financial statements are an integral part of this statement. 21
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2018
Governmental
Activities
Internal
Service Funds
Assets:
Current Assets:
Cash and investments 621,522 $
Total Current Assets 621,522
Noncurrent Assets:
Capital assets, net of accumulated depreciation 115,343
Total Noncurrent Assets 115,343
Total Assets 736,865
Liabilities:
Current Assets:
Accounts payable 44
Total Current Liabilities 44
Total Liabilities 44
Net Position:
Investment in capital assets 115,343
Unrestricted 621,478
Total Net Position 736,821 $
The notes to financial statements are an integral part of this statement. 22
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Governmental
Activities
Internal
Service Funds
Operating Revenues:
Charges for services 279,200$
Total Operating Revenues 279,200
Operating Expenses:
Contractual services 127,483
Depreciation expense 70,942
Total Operating Expenses 198,425
Operating Income 80,775
Net Position at the Beginning of the Year 656,046
Net Position at the End of the Year 736,821$
The notes to financial statements are an integral part of this statement. 23
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Governmental
Activities
Internal
Service Funds
Cash Flows from Operating Activities:
Cash received from interfund service provided 279,200$
Cash paid to suppliers for goods and services (127,472)
Net Cash Provided by Operating Activities 151,728
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (30,574)
Net Cash Used for Capital
and Related Financing Activities (30,574)
Net Increase in Cash and Cash Equivalents 121,154
Cash and Cash Equivalents at the Beginning of the Year 500,368
Cash and Cash Equivalents at the End of the Year 621,522$
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating income 80,775$
Adjustments to reconcile operating income
net cash provided by operating activities:
Depreciation 70,942
Increase in accounts payable 11
Total Adjustments 70,953
Net Cash Provided by Operating Activities 151,728$
The notes to financial statements are an integral part of this statement. 24
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2018
Agency
Funds
Assets:
Cash and investments 1,048,328$ 5,633,510$
Notes and loans receivable - 201,314
Prepaid costs - 161,511
Restricted cash and investments with fiscal agents - 1,112,018
Total Assets 1,048,328$ 7,108,353
Deferred Outflows of Resources:
Deferred charge on refunding 186,019
Total Deferred Outflows of Resources 186,019
Liabilities:
Accrued liabilities - 35
Accrued interest - 291,995
Deposits payable 1,048,328 -
Long-term liabilities:
Bonds payable, due within one year - 2,252,014
Bonds payable, due in more than one year - 28,727,306
Total Liabilities 1,048,328$ 31,271,350
Net Position:
Held in trust for the dissolution
of the former Redevelopment Agency (23,976,978)
Total Net Position (23,976,978)$
Private-Purpose
Trust Fund
Successor
Agency
The notes to financial statements are an integral part of this statement. 25
CITY OF ROSEMEAD, CALIFORNIA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Additions:
Taxes 3,916,792$
Interest and change in fair value of investments (7,128)
Total Additions 3,909,664
Deductions:
Administrative expenses 54,449
Interest expense 1,309,821
Contributions to other governments 420,478
Total Deductions 1,784,748
Change in Net Position 2,124,916
Net Position at the Beginning of the Year
as Originally Reported (26,300,314)
Restatement 198,420
Net Position at the Beginning of the Year,
as Restated (26,101,894)
Net Position at the End of the Year (23,976,978)$
Private-Purpose
Trust Fund
Successor
Agency
The notes to financial statements are an integral part of this statement. 26
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
I. SIGNIFICANT ACCOUNTING POLICIES
Note 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, solid waste disposal, and building and safety.
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) and the Rosemead Housing Development
Corporation (the Corporation).
Rosemead Financing Authority
The Authority provides for the financing or refinancing of public capital improvements
and working capital requirements of local agencies that enter into contractual
arrangements with the Authority. Separate financial statements are not prepared.
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. The activities of the Corporation
are recorded in the RHDC special revenue fund. Separately issued financial
statements of the Corporation can be obtained from the Finance Department.
27
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
a. Reporting Entity (Continued)
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.
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 Governmental Accounting Standards Board
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 discretely
presented component units. The City of Rosemead has no business-type activities and
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 generally
accepted accounting principles.
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.
28
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
b. Basis of Accounting and measurement Focus (Continued)
Amounts paid to acquire capital assets are capitalized as assets in the
government-wide financial statements, rather than reported as an 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 an 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 non-major funds in
the aggregate for governmental and enterprise funds. Fiduciary statements include
financial information for fiduciary funds and similar component units. Fiduciary funds
of the City primarily represent assets held by the City in custodial capacity for other
individuals or organizations.
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.
Revenue recognition is subject to the measurable and available criteria for the
government funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (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.
29
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
b. Basis of Accounting and measurement Focus (Continued)
In the fund financial statements, governmental funds are presented using the
current financial resources measurement focus. This means that only current assets
and current liabilities are generally included on their balance sheets. The reported fund
balance (net current assets) is considered to be a measure of "available spendable
resources." Governmental fund operating statements present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in net
current assets. Accordingly, they are said to present a summary of sources and uses
of "available spendable resources" during a period.
Non-current portions of long-term receivables due to governmental funds are reported
on their balance sheets in spite of their spending measurement focus. However,
special reporting treatments are used to indicate that they should not be considered
"available spendable resources," since they do not represent net current assets.
Recognition of governmental fund type revenues represented by noncurrent
receivables are deferred until they become current receivables.
Because of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities.
Since they do not affect net current assets, such 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.
When both restricted and unrestricted resources are combined in a fund, expenditures
are considered to be paid first from restricted resources, and then from unrestricted
resources.
Proprietary Funds
Proprietary fund financial statements include a Statement of Net Position, a Statement
of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows
for all proprietary funds.
Proprietary funds are accounted for using the “economic resources” measurement
focus and the accrual basis of accounting. Accordingly, all assets and liabilities
(whether current or noncurrent) are included on the Statement of Net Position. The
Statement of Revenues, Expenses, and Changes in Net Position presents increases
(revenue) and decreases (expenses) in total net position. Under the accrual basis of
accounting, revenues are recognized in the period in which they are earned while
expenses are recognized in the period in which liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated
from the primary operations of the fund. All other revenues are reported as
nonoperating revenues. Operating expenses are those expenses that are essential to
the primary operations of the fund. All other expenses are reported as nonoperating
expenses.
30
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
Fiduciary Funds
The City maintains two fiduciary fund types. The first is a private-purpose trust fund
which uses the economic resources measurement focus and the accrual basis of
accounting. The second is an agency fund which has no measurement focus. The
agency fund is custodial in nature (assets equal liabilities) and does not involve the
recording of City revenues and expenses.
c. Major 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.
State Gas Tax – This fund is used to account for monies that are collected by the
State under the title of Motor Vehicle License Tax and represent an addition + or -
$0.10 per gallon of gas sold.
The City’s Fiduciary Funds are as follows:
Private-purpose Trust Fund – Accounts for the activity of the Successor Agency to
the Community Development Commission of the City of Rosemead.
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.
Additionally, the City reports:
Internal Service Funds – Account for the financing of goods and services provided
by one department to other departments on a cost reimbursement basis. The
City has internal service funds for equipment replacement and technology
replacement.
d. Investments
For financial reporting purposes, investments are adjusted to their fair value whenever the
difference between fair value and the carrying amount is material.
Changes in fair value that occur during a fiscal year are recognized as investment income
reported for that fiscal year. Investment income includes interest earnings, changes in
fair value, and any gains or losses realized upon the liquidation or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal agents.
Each fund's share in this pool is displayed in the accompanying financial statements as
cash and investments. Investment income earned by the pooled investments is allocated
to the various funds based on each fund's average cash and investment balance.
31
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
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.
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. Donated
capital assets, donated works of art and similar items and capital assets received in a
service concession arrangement are recorded at acquisition value at the point of
acquisition. Generally, capital asset purchases in excess of $10,000 are capitalized if they
have an expected useful life of one or more years.
Capital assets include public domain (infrastructure) general capital assets consisting of
certain improvements including roads, streets, sidewalks, medians, and storm drains.
Capital assets used in operations are depreciated over their estimated useful lives using
the 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:
Building improvements 50 years
Improvements other than buildings 3-15 years
Machinery and equipment 7 years
Autos and trucks 5 years
Furniture and office equipment 7 years
Infrastructure:
Bridges 50 years
Sewer system and storm drain system 50-100 years
Medians and sidewalks 40 years
Traffic Signals 30 years
Streets 20 years
g. Compensated Absences
Vacation is 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.
32
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
The sick leave liability is estimated based on the City's past experience of making
termination payments from sick leave, adjusted for the effect of changes in its termination
payment policy and other current factors. A liability for these amounts is reported in
governmental funds only if it has matured or will be paid from available resources of the
current period. City employees accumulate vacation hours that may be paid upon
termination, death or retirement. Full-time employees can accumulate up to four weeks of
accrued vacation per year depending on the length of employment.
The City allows full-time employees who have earned vacation time an opportunity to have
the City buy back up to 40 hours of vacation time per year.
h. Prepaid Items
Prepaid items are reported in the governmental funds under the consumption method and
are offset by a nonspendable designation in fund balance to indicate that they are not
available for appropriation and are not expendable financial resources.
i. Fund Balance
The following classifications describe the relative strength of the spending constraints
placed on the purposes for which resources can be used:
Nonspendable – This includes amounts that cannot be spent because they are either
not in spendable form or must be maintained intact pursuant to legal or contractual
requirements, such as prepaids, inventory, or endowments.
Restricted – This includes amounts that can be spent only for specific purposes
imposed by creditors, grantors, contributors, or laws and regulations of other
governments through enabling litigations.
Committed – This includes amounts that can be used only for the specific purposes
pursuant to constraints imposed by formal action of the City’s highest authority, the
City Council. The formal action that is required to be taken to establish, modify, or
rescind a fund balance commitment is Council resolution.
Assigned – This includes amounts that are designated by the City Council,
City Manager, or Finance Committee for specific purposes and do not meet the criteria
to be classified as restricted or committed.
Unassigned – This is the residual classification that includes all spendable amounts
not contained in the other classifications. The General Fund is the only fund that reports
a positive unassigned fund balance. In other governmental funds, it is not appropriate
to report a positive unassigned fund balance amount. However, in governmental funds
other than the General Fund, if expenditures incurred for specific purposes exceed
amounts that are restricted, committed, or assigned to those purposes, it may be
necessary to report a negative unassigned fund balance in that fund.
When both restricted and unrestricted resources are available for use when an expenditure
is incurred, it is the City’s policy to use restricted resources first, then unrestricted resources
as they are needed. It is the City’s policy to consider committed amounts as being reduced
first, followed by assigned amounts, and then unassigned amounts when expenditures are
incurred for purposes for which amounts in any of those unrestricted fund balance
classifications could be used.
33
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
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.
k. Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows
of resources related to pensions, and pension expense, information about the fiduciary
net position and additions to/deductions from the fiduciary net position have been
determined on the same basis as they are reported by the Plan Administrators. For
this purpose, benefit payments (including refunds of employee contributions) are
recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value. CalPERS audited financial statements are publicly
available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov.
Copies of the PARS annual financial report may be obtained from PARS,
4350 Von Karman Avenue, Suite 100, Newport Beach, CA 92660.
GASB 68 requires that the reported results must pertain to liability and asset information
within certain defined timeframes. For this report, the following timeframes are used.
CalPERS-Cost sharing Multiple-Employer Plan:
Valuation Date (VD)June 30, 2016
Measurement Date (MD)June 30, 2017
Measurement Period (MP) July 1, 2016 to June 30, 2017
PARS-Single Employer Agent Plan:
Valuation Date (VD)June 30, 2016
Measurement Date (MD)June 30, 2018
Measurement Period (MP)July 1, 2016 to June 30, 2018
l. Other Post Employment Benefit Plans (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and
deferred inflows of resources related to OPEB, and OPEB expense, information about
the fiduciary net position of the City’s plan (OPEB Plan), the assets of which are held by
Public Agency Retirement Services (PARS), and additions to/deductions from the
OPEB Plan’s fiduciary net position have been determined by an independent actuary. For
this purpose, benefit payments are recognized when currently due and payable in
accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to
liability and asset information within certain defined timeframes. For this report, the
following timeframes are used:
Valuation Date (VD)December 31, 2016
Measurement Date (MD)June 30, 2017
Measurement Period (MP) July 1, 2016 to June 30, 2017
34
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
Gains and losses related to changes in total OPEB liability and fiduciary net position are
recognized in OPEB expense systematically over time. Amounts are first recognized in
OPEB expense for the year the gain or loss occurs. The remaining amounts are
categorized as deferred outflows and deferred inflows of resources related to OPEB and
are to be recognized in future OPEB expense.
The recognition period differs depending on the source of the gain or loss:
Net different between projected and actual earning on
OPEB plan Investments 5 years
All other amounts
Expected average remaining service lifetime (EARSL)
(4.0 Years at June 30, 2017)
m. Deferred Outflows and Deferred Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The City has deferred outflows of resources on pensions and OPEB (described
previously) in the statement of net position. The pension-related deferred outflows include
such items as: contributions made after the actuarial measurement date, changes in
assumptions, differences between expected and actual experiences, the net difference
between projected and actual earnings on plan investments, adjustments due to
differences in proportionate share, and differences in the proportionate share. All of the
items, with the exception of the net difference between projected and actual earnings on
plan investments which is recognized over five years, are recognized over the expected
average remaining service life of plan members.
In addition to liabilities, the statement of net position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net position that applies to a
future period(s) and will not be recognized as an inflow of resources (revenue) until that
time. The City has deferred inflow of resources deferred revenue on the fund financial
statements – unavailable revenue. Deferred inflows related to pensions and OPEB
(described previously) are reported in the statement of net position. The deferred inflows
related to pensions include changes in assumptions, the difference in expected and actual
experiences, and the difference in proportionate share; these items are recognized over
the expected average remaining service life of plan members.
n. Change in Accounting Principle
During the fiscal year ended June 30, 2018, the City implemented GASB Statement
No. 75, Accounting and Financial Reporting for Post-Employment Benefits other than
Pensions. The primary objective of this statement is to improve accounting and financial
reporting by state and local governments for postemployment benefits other than pensions
(OPEB). It also improves information provided by state and local governmental employers
about financial support for OPEB that is provided by other entities. This Statement replaces
the requirements of Statements No. 45, Accounting for Financial Reporting by Employers
for Post-Employment Benefits other than Pensions, as amended, and No. 57, OPEB
Measurements by Agent Employers and Agent Multiple-Employer Plans.
As a result of this change in accounting principle, beginning net position as reported in
the government-wide statement of net position as been restated (see Note 15 for
more information).
35
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Note 2: Stewardship, Compliance, and Accountability
a. Deficit Fund Balances/Net Position
The Community Development Block Grant (CDBG) nonmajor special revenue fund
reported a deficit in fund balance in the amount of $31,024 at June 30, 2018. The
Successor Agency private-purpose trust fund also reported a deficit in net position
of $23,976,978 at June 30, 2018. The CDBG fund deficit balance is due to the timing of
grant reimbursement from the grantor agency. The Successor Agency deficit is due to
long-term bonds payable being repaid incrementally from tax funding received from the
State of California.
III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
Cash and investments as of June 30, 2018, are classified in the accompanying financial
statements as follows:
Statement of Net Position
Cash and investments 25,888,483$
Statement of Fiduciary Net Position
Cash and investments 6,681,838
Restricted cash and investments with fiscal agents 1,112,018
Total Cash and Investments 33,682,339$
Cash and Investments as of June 30, 2018, consist of the following:
Deposits with financial institutions 11,944,788$
Investments 21,737,551
Total Cash and Investments 33,682,339$
Investments Authorized by the California Government Code and the City's Investment Policy
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.
Authorized Investment Type
Authorized
by
investment
Policy
Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment in
One Issuer
U.S. Treasury Obligations Yes 5 years None None
U.S. Agency Securities Yes 5 years 70% 35%
Banker's Acceptances Yes 180 days 20% 30%
Commercial Paper Yes 180 days 15% 10%
Negotiable Certificates for Deposits Yes 5 years 30% None
Medium Term Notes Yes 5 years 30% None
Money Market Mutual Funds Yes N/A 20% 10%
Local Agency Investment Funds (LAIF) Yes N/A None $65M
36
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 3: Cash and Investments (Continued)
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the greater
the sensitivity of its fair value to changes in market interest rates. One of the ways that the
City manages its exposure to interest rate risk is by purchasing a combination of shorter
term and longer-term investments and by timing cash flows from maturities so that a portion
of the portfolio is maturing or coming close to maturity evenly over time as necessary to
provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City's investments
(including investments held by bond trustee) to market interest rate fluctuations is provided
by the following table that shows the distribution of the City's investments by maturity:
12 Months 13 to 24 25 to 60
Investment Type or Less months months Total
State investment pool 11,124,037$ -$ -$ 11,124,037$
Certifices of Deposit 243,258 1,441,877 3,535,401 5,220,536
U.S. agency securities - 483,825 1,578,278 2,062,103
Money Market Mutual Funds 275,139 - - 275,139
Medium-term notes - 754,882 1,188,836 1,943,718
Held by bond trustee
Money Market Mutual Funds 1,112,018 - - 1,112,018
Total 12,754,452$ 2,680,584$ 6,302,515$ 21,737,551$
Remaining Maturity (in Months)
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.
Minimum
Legal
Investment Type Totals Rating Not Rated A- A AA+
State Investment pool 11,124,037$ N/A 11,124,037$ -$ -$ -$
Certifices of Deposits 5,220,536 N/A 5,220,536 - - `
U. S. agency securities 2,062,103 N/A - - - 2,062,103
Medium-term notes 1,943,718 A - 245,528 1,698,190
Money Market Mutual Funds 275,139 Multiple 275,139 - - -
Held by bond trustee
Money Market Mutual Funds 1,112,018 Multiple 1,112,018 - - -
Totals 21,737,551$ 17,731,730$ 245,528$ 1,698,190$ 2,062,103$
Ratings at End of Year
37
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 3: Cash and Investments (Continued)
Concentration of Credit Risk
The investment policy of the City contains certain limitations on the amount that can be
invested in any one issuer. Investments in any one issuer (other than U.S. Treasury
securities, mutual funds, and external investment pools) that represent 5% or more of total
City investments are as follows:
% of
Issuer Investment Type Amount Investment
Federal National Mortgage Association U.S. Agency Securities 1,583,643$ 7.29%
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able
to recover collateral securities that are in the possession of an outside party. The custodial
credit risk for investments is the risk that, in the event of the failure of the counterparty
(e.g., broker-dealer) to a transaction, a government will not be able to recover the value of
its investment or collateral securities that are in the possession of another party. The
California Government Code and the City's investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or
investments, other than the following provision for deposits: The California Government
Code requires that a financial institution secure deposits made by state or local
governmental units by pledging securities in an undivided collateral pool held by a
depository regulated under state law (unless so waived by the governmental unit). The fair
value of the pledged securities in the collateral pool must equal at least 110% of the total
amount deposited by the public agencies. California law also allows financial institutions to
secure City deposits by pledging first trust deed mortgage notes having a value of 150%
of the secured public deposits. As of June 30, 2018, the City had deposits with financial
institutions in excess of federal depository insurance limits by $5,946,206 that were held in
collateralized accounts. As of June 30, 2018, the Successor Agency had deposits with
financial institutions in excess of federal depository insurance limits by $5,366,193 that
were held in collateralized 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. LAIF is not registered
with the Securities and Exchange Commission and is not rated. Deposits and withdrawals
in LAIF are made on the basis of $1 and not fair value. Accordingly, the City’s investment
in this pool is measured on uncategorized inputs not defined as Level 1, 2, or 3.
38
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 3: Cash and Investments (Continued)
Fair Value Measurements
Generally accepted accounting principles establishes a fair value hierarchy that prioritizes
the inputs to valuation techniques used to measure fair value. This hierarchy consists of
three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets
and liabilities in active markets that a government can access at the measurement
date, Level 2 inputs that are observable for an asset or liability, either directly or indirectly,
and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset
or liability.
The City has the following fair value measurements as of June 30, 2018:
Investments Totals Level 2 Uncategorized
Certificates of deposits 5,220,536$ 5,220,536$ -$
U.S. agency securities 2,062,103 2,062,103 -
Medium-term notes 1,943,718 1,943,718 -
State investment Pool - - -
Money market mutual funds 275,139 275,139 -
LAIF 11,124,037 - 11,124,037
Held by fiscal agent:
Money market mutual funds 1,112,018 1,112,018 -
Total 21,737,551$ 10,613,514$ 11,124,037$
Note 4: Loans receivable
Loans receivable consisted of the following at June 30, 2018:
Balance Balance
Governmental Activities:June 30, 2017 Additions Deletions June 30, 2018
Computer Loans 11,012 9,969 11,260 9,721
San Gabriel Valley Water Co. Loan Phase I 82,300 - 8,230 74,070
San Gabriel Valley Water Co. Loan Phase II 41,151 - 4,115 37,036
Rio Hondo Community Development Co. Loan 227,086 - - 227,086
El Monte Cemetary Association Loan 8,400 - 1,200 7,200
Total 369,949$ 9,969$ 24,805$ 355,113$
Note 5: Property Taxes
Property tax revenue is recognized in the fiscal year for which the taxes have been levied
providing they become available. Available means due, or past due and receivable within the
current period and collected within the current period or expected to be collected soon enough
thereafter (not to exceed 60 days) to be used to pay liabilities in the current period.
39
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 5: Property Taxes (Continued)
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
Note 6: Interfund Transactions
Interfund Balances
Due to/due from other funds for the year ending June 30, 2018, consisted of the following:
Due To Other
Funds
Due From Other
Funds
Governmental
Funds
General Fund 63,521$
The due to General Fund from various funds was a result of temporary deficit cash
balances in those funds.
Transfers
Interfund transfers for the year ending June 30, 2018, consisted of the following:
City Capital
Transfers Out Projects Fund Total
General Fund 121,361$ 121,361$
Total 121,361$ 121,361$
Transfers In
Transfers were made to subsidize various programs and capital projects.
40
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 7: Capital Assets
Capital asset activity was as follows for the year ended June 30, 2018:
Balance CIP Balance
Governmental Activities:June 30, 2017 Transfers Additions Deletions June 30, 2018
Capital assets not being depreciated:
Land 4,417,104$ -$ -$ -$ 4,417,104$
Construction in progress 3,009,630 (4,756,183) 3,345,863 - 1,599,310
Total capital assets not
being depreciated 7,426,734 (4,756,183) 3,345,863 - 6,016,414
Depreciable capital assets:
Buildings 24,011,561 - - - 24,011,561
Improvements other than buildings 2,212,232 2,931,226 214,953 - 5,358,411
Machinery and equipment 582,225 - 96,337 - 678,562
Autos and trucks 1,757,950 - 5,223 - 1,763,173
Furniture and office equipment 1,485,125 - - - 1,485,125
Infrastructure 65,330,782 1,824,957 - - 67,155,739
Total capital assets
being depreciated 95,379,875 4,756,183 316,513 - 100,452,571
Less: accumulated depreciation for:
Buildings (9,114,583) - (486,620) - (9,601,203)
Improvements other than buildings (1,217,287) - (185,631) - (1,402,918)
Machinery and equipment (530,105) - (17,247) - (547,352)
Autos and trucks (1,237,061) - (175,648) - (1,412,709)
Furniture and office equipment (1,295,752) - (55,991) - (1,351,743)
Infrastructure (36,605,628) - (1,960,189) - (38,565,817)
Total accumulated depreciation (50,000,416) - (2,881,326) - (52,881,742)
Total capital assets,
being depreciated, net 45,379,459 4,756,183 (2,564,813) - 47,570,829
Government activities
capital assets, net 52,806,193$ -$ 781,050$ -$ 53,587,243$
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities Total
General Government 40,807$
Public Safety 46,856
Public Works 2,539,170
Community development 14,353
Parks and recreation 169,198
Internal Service Funds 70,942
Totals 2,881,326$
41
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 8: Changes in Long-Term Liabilities
Long-term debt consists of the following at June 30, 2018:
Additions Deletions
Compensated Absences 633,958$ 298,177$ 259,150$ 672,985$ 275,103$
Totals 633,958$ 298,177$ 259,150$ 672,985$ 275,103$
Beginning
Balance Ending Balance
Due in
One Year
The City records expenditures related to compensated absences through the City’s
General Fund.
Note 9: Risk Management
a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City of Rosemead is a member of the California Joint Powers Insurance Authority
(Authority). The Authority is composed of 116 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 lines of coverage. The California JPIA 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.
b. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period.
A retrospective adjustment is then conducted annually thereafter, for coverage years
2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual
retrospective adjustment. The total funding requirement for primary self-insurance
programs is based on an actuarial analysis. Costs are allocated to individual agencies
based on payroll and claims history, relative to other members of the risk-sharing pool.
Primary Liability Program
In the liability program claims are pooled separately between police and general
government exposures. (1) The payroll of each member is evaluated relative to the
payroll of other members. A variable credibility factor is determined for each member,
which establishes the weight applied to payroll and the weight applied to losses within
the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within
the first layer. (3) The second layer of losses includes incurred costs from $30,000
to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total
incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million,
are distributed based on the outcome of cost allocation within the first and second
loss layers.
42
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 9: Risk Management (Continued)
The overall coverage limit for each member, including all layers of coverage, is
$50 million per occurrence. Subsidence losses have a sub-limit of $40 million
per occurrence. The coverage structure includes retained risk hat is pooled among
members, reinsurance, and excess insurance. More detailed information about
the various layers of coverage is available on the following website:
https://cjpia.org/protection/coverage-programs.
Workers’ Compensation
In the workers’ compensation program claims are pooled separately between public
safety (police and fire) and general government exposures. (1) The payroll of each
member is evaluated relative to the payroll of other members. A variable credibility
factor is determined for each member, which establishes the weight applied to payroll
and the weight applied to losses within the formula. (2) The first layer of losses includes
incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of
the pool’s total incurred costs within the first layer. (3) The second layer of losses
includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated
as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred
costs from $100,000 to statutory limits are distributed based on the outcome of cost
allocation within the first and second loss layers.
For 2017-18 the Authority’s pooled retention is $2 million per occurrence, with
reinsurance to statutory limits under California Workers’ Compensation Law.
Employer’s Liability losses are pooled among members to $2 million. Coverage from
$2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s
Liability losses from $5 million to $10 million are pooled among members.
c. Purchased Insurance
Pollution Legal Liability Insurance
The City of Rosemead participates in the pollution legal liability insurance program
which is available through the Authority. The policy covers sudden and gradual
pollution of scheduled property, streets, and storm drains owned by the City of
Rosemead. Coverage is on a claims-made basis. There is a $50,000 deductible. The
Authority has an aggregate limit of $50 million for the 3-year period from July 1, 2017
through July 1, 2020. Each member of the Authority has a $10 million sub-limit during
the 3-year policy term.
Property Insurance
The City of Rosemead participates in the all-risk property protection program of the
Authority. This insurance protection is underwritten by several insurance companies.
City of Rosemead property is currently insured according to a schedule of covered
property submitted by the City of Rosemead to the Authority. City of Rosemead
property currently has all-risk property insurance protection in the amount of
$69,114,134. There is a $10,000 deductible per occurrence except for non-emergency
vehicle insurance which has a $2,500 deductible.
43
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 9: Risk Management (Continued)
Crime Insurance
The City of Rosemead purchases crime insurance coverage in the amount of
$1,000,000 with a $2,500 deductible. The fidelity coverage is provided through
the Authority.
d. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced
settlements or judgments that exceeded pooled or insured coverage. There were also no
significant reductions in pooled or insured liability coverage in 2017-18.
Note 10: Defined Benefit Pension Plans
a. Aggregate Information on all Defined Benefit Pension Plans
The City participates in two defined benefit pension plans, the Miscellaneous Cost-sharing
multiple-employer defined benefit pension plan administered by the California Public
Employees’ Retirement System (CalPERS), and the Public Agency Retirement System
(PARS) retirement enhancement plan, a single-employer defined benefit pension plan.
These two plans are presented in aggregate on the government-wide financial statement
of net position. The schedule below summarizes the components of the information
presented on the government-wide statement broken out by each plan and in aggregate:
CalPERS
Miscellaneous
Plan
PARS
Retirement
Enhancement
Plan Total
Net Pension Liability 9,309,566$ -$ 9,309,566$
Net Pension Asset - 440,540 440,540
Deferred Outflows of Resources 4,171,535 60,480 4,232,015
Deferred Inflows of Resources 421,490 247,704 669,194
Pension Expense 2,628,962 (132,530) 2,496,432
44
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 10: Defined Benefit Pension Plans (Continued)
b. Defined Benefit Pension Plan - CalPERS
Plan Description
All qualified permanent and probationary employees are eligible to participate in the
Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan)
administered by the California Public Employees’ Retirement System (CalPERS.) The Plan
consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and
a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any
employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within
the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.
Individual employers may sponsor more than one rate plan in the miscellaneous or safety
risk pools. The City sponsors three miscellaneous rate plans. Benefit provisions under the
Plan are established by State statute and City resolution. CalPERS issues publicly
available reports that include a full description of the pension plan regarding benefit
provisions, assumptions and membership information that can be found on the CalPERS’
website, at www.calpers.ca.gov.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full-time
employment. Members with five years of total service are eligible to retire at age 50 with
statutorily reduced benefits. All members are eligible for non-duty disability benefits after
5 years of service. The death benefit is one of the following: the Basic Death Benefit,
the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of
living adjustments for each plan are applied as specified by the Public Employees’
Retirement Law.
The Plan’s provisions and benefits in effect at June 30, 2018, are summarized as follows:
Tier 1 *Tier 2 *PEPRA
Hire date Prior to
July 1, 2010
From July 1, 2010 to
December 31, 2012
January 1, 2013
and after
Benefit formula 2.7% @ 55 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 to 55&up 50 to 63&up 52 to 67&up
Monthly benefits, as a % of
eligible compensation
2.0% to 2.7% 1.426 to 2.418 1.0% to 2.5%
Required employee
contribution rates
8.000%7.000%6.250%
Required employer
contribution rates
11.675%8.921%6.533%
45
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 10: Defined Benefit Pension Plans (Continued)
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that
the employer contribution rates for all public employers be determined on an annual basis
by the actuary and shall be effective on the July 1 following notice of a change in the rate.
The total plan contributions are determined through CalPERS’ annual actuarial valuation
process. For public agency cost-sharing plans covered by either the Miscellaneous or
Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount
necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by
employees during the year, and any unfunded accrued liability. The employer is required
to contribute the difference between the actuarially determined rate and the contribution
rate of employees.
For the year ended June 30, 2018 the contributions recognized as a reduction to the net
pension liability was $1,113,875.
Pension Liability, Pension Expense and Deferred Outflows/Inflows of Resources
At June 30, 2018, the City of Rosemead reported a net pension liability for its proportionate
share of the net pension liability in the amount of $9,309,566.
The City’s pension liability is measured as the proportionate share of the net pension
liability. The net pensions liability is measured as of June 30, 2017 and the total pension
liability for each Plan used to calculate the net pension liability was determined by an
actuarial valuation as of June 30, 2016 rolled forward to June 30, 2017 using standard
procedures. The City’s proportion of the net pension liability was based on a projection of
the City’s long-term share of contributions to the pension plans relative to the projected
contributions of all participating employers, actuarially determined. The City’s proportionate
share of the net pension liability for each Plan as of June 30, 2016 and 2017 was as follows:
Miscellaneous
Proportion - June 30, 2016 0.24806%
Proportion - June 30, 2017 0.23616%
Change - Increase (Decrease) -0.01190%
For the year ended June 30, 2018, the City of Rosemead recognized pension expense of
$2,628,962. At June 30, 2018, the City reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 1,487,464$ -$
Changes in assumptions 1,194,717 91,098
Difference between expected and actual experiences 9,629 137,952
Net differences between projected and actual earnings
on plan investments 270,196 -
Change in employer's proportion and differences between
the employer's contributions and the employer's
proportionate share of contributions 946,200 -
Adjustment due to differences in proportions 263,329 192,440
Total 4,171,535$ 421,490$
46
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 10: Defined Benefit Pension Plans (Continued)
The $1,487,464 reported as deferred outflows of resources related to contributions
subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2018. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized as
pension expense as follows:
Measurement
Period Ended
June 30,
Deferred Outflow /
(Inflows) of Resources
2018 909,385$
2019 920,045
2020 593,572
2021 (160,421)
2,262,581$
Actuarial Assumptions and Methods
For the measurement period ended June 30, 2017 (the measurement date), the total
pension liability was determined by rolling forward the June 30, 2016, total pension liability.
The June 30, 2016 and the June 30, 2017, total pension liabilities were based on the
following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal Cost Method
Discount Rate 7.15%
Inflation 2.75%
Salary Increases 3.00%
Investment Rate of Return 7.00% (2)
Mortality Rate Table (3) Derived using CalPERS’ Membership Data for all
Funds
Post Retirement Benefit
Increase
Contract COLA up to 2.75% until Purchasing Power
Protection Allowance Floor on Purchasing Power
applies, 2.75% thereafter
(1) Depending on age, service and type of employment
Actuarial Assumptions
(3) The mortality table used was developed based on CalPERS’ specific data. The table
includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more
details on this table, please refer to the 2014 experience study report on the CalPERS website.
(2) Net of Pension Plan Investment and Administrative Expenses; includes Inflation
All other actuarial assumptions used in the June 30, 2016 valuation were based on the
results of an actuarial experience study for the period from 1997 to 2011, including updates
to salary increase, mortality and retirement rates. The Experience Study report can be
obtained at CalPERS’ website under Forms and Publications.
47
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 10: Defined Benefit Pension Plans (Continued)
Change of Assumptions
For the measurement date June 30, 2017, the financial reporting discount rate was lowered
from 7.65 percent to 7.15 percent. In December 2016, the CalPERS Board approved
lowering the funding discount rate used from 7.50 percent to 7.00 percent, which is to be
phased-in over a three-year period (7.50 percent to 7.375 percent, 7.375 percent to
7.25 percent, and 7.25 percent to 7.00 percent) beginning with the June 30, 2016 valuation
reports. The funding discount rate includes a 15 basis-point reduction for administrative
expenses, and the remaining decrease is consistent with the change in the financial
reporting discount rate.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To
determine whether the municipal bond rate should be used in the calculation of a discount
rate for each plan, CalPERS stress tested plans that would most likely result in a discount
rate that would be different from the actuarially assumed discount rate. Based on the
testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent
discount rate is adequate, and the use of the municipal bond rate calculation is not
necessary. The long term expected discount rate of 7.15 percent is applied to all plans in
the Public Employees Retirement Fund. The stress test results are presented in a detailed
report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website
under the GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class.
In determining the long-term expected rate of return, staff took into account both
short-term and long-term market return expectations as well as the expected pension fund
cash flows. Such cash flows were developed assuming that both members and employers
will make their required contributions on time and as scheduled in all future years. Using
historical returns of all the funds’ asset classes, expected compound (geometric) returns
were calculated over the short-term (first 10 years) and the long-term (11-60 years) using
a building-block approach. Using the expected nominal returns for both short-term and
long-term, the present value of benefits was calculated for each fund. The expected rate
of return was set by calculating the single equivalent expected return that arrived at the
same present value of benefits for cash flows as the one calculated using both short-term
and long-term returns. The expected rate of return was then set equivalent to the
single equivalent rate calculated above and rounded down to the nearest one quarter of
one percent.
48
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 10: Defined Benefit Pension Plans (Continued)
The table below reflects long-term expected real rate of return by asset class. The rate of
return was calculated using the capital market assumptions applied to determine the
discount rate and asset allocation. These geometric rates of return are net of administrative
expenses.
Asset Class
New Strategic
Allocation
Real Return
Years 1 - 10 (1)
Real Return
Years 11+ (2)
Global Equity 47.0% 4.90% 5.38%
Fixed Income 19.0 0.80 2.27
Inflation Assets 6.0 0.60 1.39
Private Equity 12.0 6.60 6.63
Real Estate 11.0 2.80 5.21
Infrastructure and Forestland 3.0 3.90 5.36
Liquidity 2.0 (0.40) (0.90)
(1) An expected inflation of 2.5% used for this period.
(2) An expected inflation of 3.0% used for this period.
Sensitivity of Net Pension Liability to Changes in Discount Rate
The following presents the City’s proportionate share of the net pension liability/ (asset) of
the Plan, calculated using the discount rate for each Plan, as well as what the City’s
proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1% point lower (6.15 percent) or 1% point higher (8.15 percent) than
the current rate:
Plan's Net Pension
Liability/(Assets)
Discount Rate - 1%
(6.15%)
Current Discount Rate
(7.15%)
Discount Rate +1%
(8.15%)
Miscellaneous $ 13,247,695 $ 9,309,566 $ 6,047,935
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the
separately issued CalPERS financial reports. See CalPERS’ website for additional
information.
Payable to the Pension Plan
At June 30, 2018, the City reported no payable for the outstanding amount of contributions
to the pension plan required for the year ended June 30, 2018.
c. PARS Retirement Enhancement Plan
Plan Description
The Plan is an agent, multiple-employer supplemental employee defined benefit pension
plan (the Plan II) administered by the Public Agency Retirement Services (PARS) Phase II
Systems. A full description of the pension plan regarding number of employees covered,
benefit provisions, assumptions (for funding, but not account purposes), and membership
information are listed in the July 1, 2016 Annual Actuarial Valuation Report. Details of the
benefits provided can be obtained from the actuarial valuation reports. PARS issues a
publicly available financial report that includes financial statement and required
supplementary information for the Plan II. That report may be obtained writing to PARS,
3961 MacArthur Boulevard, Suite 200, Newport Beach, California, 92660.
49
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 10: Defined Benefit Pension Plans (Continued)
Benefits Provided
The Retirement Enhancement Plan provides a benefit equal to the PARS "3.0% at 55" plan
factor (formula is a static 3.0% at age 55 and older), less the CalPERS "2.7% at 55" plan
factors (a static 2.7% at age 55 and older) for all years of full-time continuous City service.
The benefit from this plan when added to the CalPERS benefit may not exceed 90% of
final compensation.
The Plan II includes a pre-retirement death benefit for those eligible employees who die
while actively employed with the City and meet the age and service eligibility requirements
for a supplemental retirement benefit. The benefit will be paid to a surviving spouse
or domestic partner as a life annuity equal to the employee's supplemental retirement
benefit actuarially reduced as if the employee had elected a 100% joint-and-survivor
annuity. The Plan is closed to all employees in the eligible classes hired on or after
July 1, 2010 ("soft-freeze").
The Plan II’s provisions and benefits in effect at June 30, 2018, (measurement date) are
summarized as follows:
Supplemental
On or after September 25, 2007
On or before June 30, 2010
Benefit Formula 3% @ 55 less Cal PERS 2.7% @ 55
Benefit vesting schedule from date of hire
Benefit payments life only annuity
Retirement age 55
Monthly benefits, as a % of eligible compensation 0.576%
Required employee contribution rates none
Required employer contribution rates 3.790%
Hire Date
Employees Covered
At June 30, 2018, the following employees were covered by the benefit terms:
Description Number of Members
Inactive employees or beneficiaries
currently receiving benefits 12
Active employees 41
Total 53
50
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 10: Defined Benefit Pension Plans (Continued)
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that
the employer contribution rates for all public employers be determined on an annual basis
by the actuary and shall be effective on the July 1 following notice of a change in the rate.
The total plan contributions are determined through PARS’ annual actuarial valuation
process. The actuarially determined rate is the estimated amount necessary to finance the
costs of benefits earned by employees during the year, with an additional amount to finance
any unfunded accrued liability. For the measurement period ended June 30, 2018
(the measurement date), the employer’s contribution rate is 8.41 percent of annual payroll.
Employer contribution rates may change if plan contracts are amended. Employer
Contributions for the measurement period ended June 30, 2018 are $140,376.
Net Pension Liability
The City’s net pension liability for the Retirement Enhancement Plan is measured as the
total pension liability, less the pension plan’s fiduciary net position. The net pension liability
of the Plan II is measured as of June 30, 2018, using an annual actuarial valuation as of
June 30, 2016.
Total pension liability 2,702,951$
Plan fiduciary net position (3,143,491)
Net pension (asset) (440,540)$
Plan fiduciary net position as a % of total pension liability 116.3%
Actuarial Assumptions and Methods
The following actuarial methods and assumptions were used in the June 30, 2016 funding
valuation:
Actuarial Cost Method Entry Age Normal
Amortization Method
Level percent or level dollar Level dollar
Closed, open, or layered periods Closed
Amortization period at 06/30/2016 6 years
Amortization growth rate 0.00%
Asset Valuation Method
Smoothing period None
Recognition method None
Corridor None
Inflation 2.75%
Salary Increases 3.5% to 12.20% depending on year of service
Investment Rate of Return 6.50%
Cost of Living Adjustments 2.00%
Mortality RP-2000 Combined Health mortality
tables for males and females projected with
Scale BB to 2020
51
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 10: Defined Benefit Pension Plans (Continued)
Discount Rate
GASB 67 and 68 generally require that a blended discount rate be used to measure the
Total Pension Liability (the Actuarial Accrued Liability calculated using the Individual Entry
Age Normal Cost Method). The long-term expected return on plan investments may be
used to discount liabilities to the extent that the plan's Fiduciary Net Position
(fair market value of assets) is projected to cover benefit payments and administrative
expenses. A 20-year high quality (AA/Aa or higher) municipal bond rate must be used for
periods where the Fiduciary Net Position is not projected to cover benefit payments and
administrative expenses. Determining the discount rate under GASB 67 and 68 will
often require that the actuary perform complex projections of future benefit payments and
asset values.
GASB 67 and 68 (paragraph 29) do allow for alternative evaluations of projected solvency,
if such evaluation can reliably be made. GASB does not contemplate a specific method for
making an alternative evaluation of sufficiency; it is left to professional judgment.
The following circumstances justify an alternative evaluation of sufficiency for the
City of Rosemead:
The City of Rosemead has at least a 5-year history of generally paying at least 100%
of the Actuarially Determined Contribution (previously termed the Annual Required
Contribution).
The Actuarially Determined Contribution is based on a closed amortization period,
which means that payment of the Actuarially Determined Contribution each year will
bring the plan to a 100% funded position by the end of the amortization period.
GASB 67 and 68 specify that the projections regarding future solvency assume that
plan assets earn the assumed rate of return and there are no future changes in the
plan provisions or actuarial methods and assumptions, which means that the
projections would not reflect any adverse future experience which might impact the
plan's funded position.
Based on these circumstances, the City believes that the detailed depletion date
projections outlined in GASB 67 and 68 will show that the fiduciary net position is always
projected to be sufficient to cover benefit payments and administrative expenses.
June 30, 2017 June 30, 2018
Discount rate 6.50% 6.50%
Long-term expected rate of return,
net of investment expense
6.50% 6.50%
Municipal bond rate N/A N/A
The Plan II’s fiduciary net position was projected to be available to make all projected future
benefit payments of current active and inactive employees. Therefore, the discount rate for
calculating the total pension liability is equal to the long-term expected rate of return.
52
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 10: Defined Benefit Pension Plans (Continued)
The money-weighted rate of return considers the changing amounts actually invested
during a period and weights the amount of pension plan investments by the proportion of
time they are available to earn a return during that period. External cash flows are
determined on a monthly basis and are assumed to occur at the end of each month.
External cash inflows are netted with external cash outflows, resulting in a net external
cash flow in each month. The money-weighted rate of return is calculated net of
administrative expenses.
The money-weighted rate of return for the fiscal year ended June 30, 2018 was 5.84%.
The best-estimate range for the long-term expected rate of return is determined by adding
expected inflation to expected long-term real returns and reflecting expected volatility and
correlation. The capital market assumptions are per Milliman’s investment consulting
practice as of June 30, 2018.
Asset Class Index
Current
Allocation
Long-Term
Expected
Arithmetic
Real Rate
of Return
Long-Term
Expected
Geometric
Real Rate
of Return
US Cash BAML 3-Mon Tbill 8.04% 0.31% 0.31%
US Core Fixed Income Barclays Aggregate 44.02% 2.14% 2.02%
US Equity Market Russell 3000 35.14% 4.59% 3.32%
Foreign Developed Equity MSCI EAFE NR 8.10% 5.52% 3.91%
Emerging Markets Equity MSCI EM NR 3.37% 7.82% 4.59%
US REITs FTSE NAREIT Equity REIT 1.33% 5.04% 3.27%
Changes in Net Pension Liability
Changes in Net Pension Liability
Total Pension
Liability (a)
Plan Fiduciary
Net Position (b)
Net Pension
Liability (a)-(b)
Balances as of June 30, 2017 2,695,724$ 3,030,461$ (334,737)$
Changes for the year:
Service cost 37,502 - 37,502
Interest on total pension liability 171,215 - 171,215
Effect of plan changes - - -
Effect of economic/demographic gains or losses - - -
Effect of assumptions changes or inputs - - -
Benefit payments (201,490) (201,490) -
Employer contributions - 140,376 (140,376)
Member contributions - - -
Net investment income - 175,605 (175,605)
Administrative expenses - (1,461) 1,461
Balances as of June 30, 2018 2,702,951$ 3,143,491$ (440,540)$
53
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 10: Defined Benefit Pension Plans (Continued)
Sensitivity of Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability, calculated using the discount rate of 6.50%,
as well as what the net pension liability would be if it were calculated using a discount rate
that is one percentage point lower (5.50%) or one percentage point higher (7.50%) than
the current rate:
1.00%Current 1.00%
Decrease Discount Rate Increase
(5.50%) (6.50%) (7.50%)
(126,802)$ (440,540)$ (708,240)$
Pension Plan Fiduciary Net Position
The Plan II fiduciary net position at June 30, 2018, was as follows:
Assets:
Cash and cash equivalents 252,657$
Investments:
Fixed income 1,383,629
Stocks 1,465,357
Real estate 41,848
Total Investments 2,890,834
Total Assets 3,143,491
Net Position Restricted for Pensions 3,143,491$
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2018, the City recognized pension expense of ($132,530). At
June 30, 2018, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience -$ 247,704$
Net difference between projected and actual earnings 60,480 -
Total 60,480$ 247,704$
Amounts currently reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Year ended June 30:
Deferred Outflows
(Inflows) of
Resources
2019 (7,357)$
2020 (30,443)
2021 (67,139)
2022 (49,974)
2023 (32,311)
(187,224)$
54
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 11: Employees Retirement Plan
PARS Alternate Retirement System (ARS) Plan
The City currently offers an alternative plan for employees classified as part-time, seasonal or
temporary (PST). The plan is administered by the Public Agency Retirement Services (PARS)
and is a qualified deferred compensation plan created in accordance with Internal Revenue
Code Section 457(b). All amounts of compensation deferred under the plan, all property, or
rights are solely the property and rights of the employee and beneficiaries of the plan. Deferred
compensation funds are not subject to claims of the City’s general creditor; consequently, the
assets and related liabilities of the plan are not included within the City’s financial statements.
The City contributes 3.75% percent of the employee’s compensation. In addition, each
participant is required to contribute 3.75% of their salary. During the current fiscal year, the City
contributed $59,435 to the plan.
Note 12: Post-Employment Benefit Plan
Plan Description
The City administers an agent-multiple employer defined benefit plan which provides medical
benefits to eligible retirees and their spouses in accordance with various labor agreements.
Employees Covered
Employees are eligible for retiree health benefits if they retire from the City on or after age 50
with at least 5 years of service and are eligible for a PERS pension. After age 65, Medicare
automatically becomes the primary provider of health coverage. The City's defined benefit plan
becomes the secondary provider. Eligible retirees will have no noticeable change in health
benefits or plan administration; however, there is a reduction in the City's cost of health
coverage as the secondary provider. The City's defined benefit plan administrator establishes
the cost of secondary provider rates annually. The City will pay 100% for eligible retirees' health
coverage. Membership of the plan consisted of the following at December 31, 2016, the date
of the latest actuarial valuation:
Active 59
Inactive employees or beneficiaries currently receiving benefits28
Total 87
Contributions
The contribution requirements of plan members and the City are established and may
be amended by City Council. On May 26, 2009, the City Council passed a resolution to
participate in the PARS Public Agencies Post-Retirement Health Care Plan Trust,
an irrevocable trust established to fund post-employment benefits for its employees. The
purpose of the trust is to accumulate, hold, and distribute medical benefit plan assets for the
exclusive benefit of retirees and beneficiaries within the IRS Code Section 115 and
in conformance with the accounting standard. The trust is administered by Public
Agency Retirement Services (PARS). PARS issues a separate Comprehensive Annual
Financial Report. Copies of the PARS annual financial report may be obtained from PARS,
4350 Von Karman Avenue, Suite 100, Newport Beach, CA 92660.
For the measurement date ended June 30, 2017, the City’s cash contributions were $146,811
in total payments, which were recognized as a reduction to the OPEB liability.
55
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 12: Post-Employment Benefit Plan (Continued)
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2017 and the total OPEB liability
used to calculate the net OPEB liability was determined by an actuarial valuation
dated December 31, 2016 that was rolled forward to determine the June 30, 2017 total OPEB
liability, based on the following actuarial methods and assumptions:
Valuation Date December 31, 2016
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level percent of pay
Amortization Period 21-year fixed period for 2017/18
Asset Valuation Method Investment gains and losses spread over 5-year
rolling period
Discount Rate 6.00%
General Inflation 2.75%
Medical Trend Non-Medicare - 7.5% for 2019, decreasing to an
ultimate rate of 4.0% in 2076
Medicare - 6.5% for 2019, decreasing to an
ultimate rate of 4.0% in 2076
Mortality CalPERS 1997-2015 experience study
Mortality Improvement Mortality Improvement Scale 2017 for post-
retirement mortality
All Other Assumptions Same as those used to determine the total OPEB
liability
Expected Long-Term Rate of Return
Target Allocation Expected Real
Asset Class Component PARS-Moderate Rate of Return
Global Equity 48% 4.82%
Fixed Income 45% 1.47%
REITs 2% 3.76%
Cash 5% 0.06%
(1) Assumed Long-Term Rate of Inflation 2.75%
(2) Expected Long-Term Net Rate of Return,
rounded to the nearest quarter percent 6.00%
The long-term expected real rates of return are presented
as geometric means.
56
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 12: Post-Employment Benefit Plan (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 6.00 percent. The projection of
cash flows used to determine the discount rate assumed that City contributions will be made
at rates equal to the actuarially determined contribution rates. Based on those assumptions,
the OPEB plan’s fiduciary net position was projected to be available to make all projected
OPEB payments for current active and inactive employees and beneficiaries. Therefore, the
long-term expected rate of return on OPEB plan investments was applied to all periods of
projected benefit payments to determine the total OPEB liability.
Changes in the OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2017 (valuation date 12/31/2016) 3,878,150$ 3,216,986$ 661,164$
Changes recognized for the measurement period:
Service cost 147,009 - 147,009
Interest 237,920 - 237,920
Contributions - employer - 158,082 (158,082)
Net investment income - 336,797 (336,797)
Benefit payments (119,682) (119,682) -
Administrative expenses - (8,925) 8,925
Net changes 265,247 366,272 (101,025)
Balance at June 30, 2018 (measurement date 6/30/2017) 4,143,397$ 3,583,258$ 560,139$
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City if it were calculated using a discount
rate that is one percentage point lower or one percentage point higher than the current rate,
for measurement period ended June 30, 2017:
1% Decrease
(5.00%)
Current
Discount Rate
(6.00%)
1% Increase
(7.00%)
Net OPEB Liability 1,105,471$ 560,139$ 105,382$
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability of the City if it were calculated using health care
cost trend rates that are one percentage point lower or one percentage point higher than the
current rate, for measurement period ended June 30, 2017:
1% Decrease
Current Healthcare Cost
Trent Rates 1% Increase
Net OPEB Liability 272,591$ 560,139$ 893,490$
57
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 12: Post-Employment Benefit Plan (Continued)
OPEB Plan Fiduciary Net Position
PARS issues a publicly available financial report that includes financial statements and
required supplementary information. That report may be obtained from the Public Agency
Retirement Services, 4350 Von Karman Ave, Newport Beach, CA 92660.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2018, the City recognized OPEB expense of $170,951. As
of fiscal year ended June 30, 2018, the City reported deferred outflows of resources related to
OPEB from the following sources:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Net difference between projected and actual earnings
on OPEB plan investments -$ 113,894$
Total -$ 113,894$
The amounts reported as deferred inflows of resources related to OPEB will be recognized as
expense as follows:
Year Ended
June 30
Deferred Outflow /
(Inflows) of Resources
2018 (28,474)$
2019 (28,474)
2020 (28,474)
2021 (28,472)
(113,894)$
Note 13: 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.
The City is a defendant in certain legal actions arising in the normal course of operations. In
the opinion of management, any liability resulting from such actions will not have a material
adverse effect on the City's financial position.
58
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 14: Successor Agency
On December 29, 2011, the California Supreme Court upheld AB lx 26 that provides for the
dissolution of all redevelopment agencies in the State of California. This action impacted the
reporting entity of the City that previously had reported the former Agency within the reporting
entity of the City as a blended component unit. In June 2012, the Legislature adopted AR 1484,
which amended portions of AB lx 26 and added certain new provisions. AB lx 26 and AB 1484
are collectively referred to herein as the "Bill."
The Bill provides that upon dissolution of a redevelopment agency, either city or another unit
local government will agree to serve as the "successor agency" to hold the assets until
they are distributed to other units of state and local government. The successor agency
is defined as being a separate legal entity from the City. On January 10, 2012, the City Council
elected to become the Successor Agency for the former Redevelopment Agency in accordance
with the Bill as part of City resolution number 28029. The assets and activities of the Successor
Agency for the former Agency are reported in a fiduciary fund (private-purpose trust fund) in
the financial statements of the City.
Subject to the approval of the oversight board and the State of California Department
of Finance (DOF), remaining assets can only be used to pay enforceable obligations in
existence at the date of dissolution (including the completion of any unfinished projects that
were subject to legally enforceable contractual commitments).
Successor agencies are allocated property tax revenue in the amount that is necessary to pay
the estimated installment payments on enforceable obligations of the former redevelopment
agencies until all enforceable obligations of the prior redevelopment agencies have been paid
in full and all assets have been liquidated.
a. Cash and Investments
Cash and investments of the Successor Agency consist of demand deposit held with
financial institutions and restricted cash held with fiscal agents for the purpose of debt
service payments and bond covenants. The cash and investments reported in the
accompanying financial statements consisted of the following:
Cash and Investments $5,633,510
Restricted:
Cash with Fiscal Agents 1,112,018
Total Cash and Investments: $6,745,528
59
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 14: Successor Agency (Continued)
b. Long-Term Debt
The debt of the Successor Agency as of June 30, 2018 is as follows:
Balance Balance Due Within
July 1, 2017 Additions Deletions June 30, 2018 One Year
Bonds:
Tax Allocation Bonds
Series 2010A 7,045,000 - 885,000 6,160,000 915,000
Tax Allocation Bonds
Series 2016 24,730,000 - 1,435,000 23,295,000 1,245,000
Subtotal Bonds 31,775,000 - 2,320,000 29,455,000 2,160,000
Deferred amounts:
Unamortized bond premium 1,708,708 - 106,794 1,601,914 106,794
Discount on Issuance (92,374) - (14,780) (77,594) (14,780)
Total Bonds 1,616,334 - 92,014 1,524,320 92,014
Total Long-term Debt 33,391,334$ -$ 2,412,014$ 30,979,320 2,252,014$
Future debt service requirements are as follows:
Year Ending
June 30 Principal Interest
2019 2,160,000 1,352,881
2020 2,205,000 1,275,500
2021 2,295,000 1,182,500
2022 2,405,000 1,070,250
2023 2,530,000 950,000
2024-2028 7,680,000 3,267,750
2029-2033 8,300,000 1,482,950
2034 1,880,000 75,200
Total 29,455,000$ 10,657,031$
Tax Allocation Bonds, Series 2010A
In July 2010, the Commission issued $11,230,000 in Merged Project Area Tax Allocation
Bonds. The bonds mature in amounts ranging from $200,000 to $1,135,000 with interest
rates ranging from 3.00% to 5.00% through December 1, 2023. The bonds were issued to
provide funds to finance the costs of certain redevelopment projects within the Merged
Project Area including infrastructure improvements and the acquisition of land. Principal is
payable annually on December 1, beginning on December 1, 2011. Interest is payable
semi-annually on June 1 and December 1. Per the bond indenture, a reserve is required
to be maintained. At June 30, 2018, the balance held in the reserve account was
$1,099,531. As of June 30, 2018, the outstanding balance was $6,160,000.
60
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 14: Successor Agency (Continued)
2016 Subordinate Tax Allocation Refunding Bonds
In October 2016, the Successor Agency to the Rosemead Redevelopment Agency
(Successor Agency) issued the 2016 Subordinate Tax Allocation Refunding Bonds in the
amount of $24,230,000 for the purpose of refunding, on a current basis, all of the
outstanding Rosemead Community Development Commission Redevelopment Project
Area No. 1 Tax Allocation Bonds, Series 2006A, initially issued in the principal amount of
$14,005,000, and the Rosemead Community Development Commission Redevelopment
Project Area No. 1 Tax Allocation Refunding Bonds, Series 2006B, initially issued in
the principal amount of $24,230,000. Interest is payable semi-annually on April 1 and
October 1. As of June 30, 2018, the outstanding balance was $23,295,000.
c. Restatement of Fiduciary Net Position
Beginning net position in the Statement of Changes in Fiduciary Net Position was
increased by $198,420 to account for a deferred charge on refunding that was not reported
at June 30, 2017.
d. Pledged Revenue
The City pledged, as security for the bonds issued, a portion of tax increment revenue
(including Low and Moderate Income Housing set-aside and pass through allocations) that
it received. The bonds were issued to providing financing for various capital projects,
accomplish Low and Moderate Income Housing projects, and to defease previously issued
bonds. Assembly Bill 1X 26 provided that upon dissolution of the redevelopment activities
of the redevelopment agency, property taxes allocated to redevelopment activities are not
longer deemed tax increment, but rather property tax revenues and will be allocated first
to successor agencies to make payments on the indebtedness incurred by the dissolved
redevelopment agency. Total principal and interest remaining on the debt as of June 30,
2018 is $40,112 031 with annual debt service requirements as indicated above. For the
current year, the total property tax revenue recognized by the successor agency for the
payment of indebtedness incurred by the dissolved redevelopment agency was $3,916,792
and the debt service obligation on the bonds was $3,706,038.
Note 15: Prior Period Adjustments
Beginning net position in the Statement of Activities was reduced by $2,181,711 to reflect the
change in accounting principle by the City in the implementation of GASB Statement No. 75.
The table below describes the restatement in detail:
To remove the OPEB asset previously reported, under GASB 45 (1,665,840)$
To record the beginning deferred outflows of resources as of
June 30, 2017 accordance with GASB 75 145,293
To record the beginning OPEB liability as of June 30, 2017, in
accordance with GASB 75 (661,164)
Total Restatement of Net Position due to GASB 75 (2,181,711)$
61
THIS PAGE INTENTIONALLY LEFT BLANK
62
CITY OF ROSEMEAD, CALIFORNIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2018
Note 1: Budgetary Information
Annual budgets are legally adopted on a basis consistent with accounting principles generally
accepted in the United States of America for all governmental funds. All annual appropriations
lapse at fiscal year end.
On or before the last day in March of each year, all business units and component units of the
government submit requests for appropriations to the City Manager so that a budget may be
prepared. Before the first Thursday of June, the proposed budget is presented to the City
Council for review. The Council holds public hearings and a final budget must be prepared and
adopted no later than June 30.
The appropriated budget is prepared by fund and department. The 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. Budgets were legally adopted for all
governmental funds.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase
orders, and contracts) outstanding at year end do not constitute expenditures or liabilities
because the commitments will be appropriated and honored during the subsequent year.
Note 2: Excess of Expenditures over Appropriations
For the year ended June 30, 2018, the State Gas Tax special revenue fund had expenditures
in excess of the final budgeted amounts of $936,675.
63
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 19,034,276$ 19,034,276$ 19,034,276$ -$
Resources (Inflows):
Taxes 17,749,000 17,849,000 18,698,988 849,988
Licenses and permits 2,140,000 2,140,000 3,128,000 988,000
Intergovernmental 218,100 218,100 268,249 50,149
Charges for services 1,002,200 1,027,200 1,035,353 8,153
Use of money and property 288,300 288,300 207,128 (81,172)
Fines and forfeitures 625,000 625,000 633,711 8,711
Contributions 2,000 2,000 2,522 522
Miscellaneous 149,300 149,300 496,335 347,035
Amounts Available for Appropriation 41,208,176 41,333,176 43,504,562 2,171,386
Charges to Appropriation (Outflows):
General government 3,909,400 4,547,774 4,366,806 180,968
Public safety 9,350,700 9,360,458 9,132,154 228,304
Community development 1,732,500 1,780,700 2,032,927 (252,227)
Parks and recreation 2,486,300 2,476,300 2,366,338 109,962
Public works 4,258,500 4,286,500 4,042,401 244,099
Capital outlay 15,000 175,818 958,294 (782,476)
Transfers out 600,000 600,000 121,361 478,639
Total Charges to Appropriations 22,352,400 23,227,550 23,020,281 207,269
Budgetary Fund Balance, June 30 18,855,776$ 18,105,626$ 20,484,281$ 2,378,655$
The notes to required supplementary information are an integral part of this schedule. 64
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 839,303$ 839,303$ 839,303$ -$
Resources (Inflows):
Intergovernmental 2,432,800 1,171,000 1,185,995 14,995
Use of money and property - - 432 432
Miscellaneous 63,200 63,200 62,507 (693)
Amounts Available for Appropriations 3,335,303 2,073,503 2,088,237 14,734
Charges to Appropriation (Outflows):
General government 2,300 2,300 2,304 (4)
Public works 795,900 795,900 567,515 228,385
Capital outlay - - 1,165,056 (1,165,056)
Total Charges to Appropriations 798,200 798,200 1,734,875 (936,675)
Budgetary Fund Balance, June 30 2,537,103$ 1,275,303$ 353,362$ (921,941)$
The notes to required supplementary information are an integral part of this schedule. 65
CITY OF ROSEMEAD, CALIFORNIA
COST-SHARING MULTIPLE EMPLOYER MISCELLANEOUS PLANS
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018 2017 2016 2015
Miscellaneous
Proportion of the Net Pension Liability 0.23616% 0.24806% 0.27841%0.10996%
Proportionate Share of the Net Pension Liability 9,309,566$ 8,617,416$ 7,638,064$ 6,842,230$
Covered Payroll 3,690,780$ 3,388,767$ 3,543,958$ 3,386,963$
Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll 252%254%216%202%
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 73.30%74.06% 78.40%79.82%
Notes to Schedule:
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year
of implementation, therefore only four years are shown.
Changes of Assumptions: In 2017, the accounting discount rate reduced from 7.65 to 7.15 percent.
Benefit Changes:There were no changes to benefit terms that applied to all members of the Public Agency Pool. However,
individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years
Additional Service Credit to members retiring during a specified time period (a.k.a Golden Handshakes). Employers that have
done so may need to report this information as a separate liability in their financial statement as CalPERS considers such
amounts to be separately financed employer-specific liabilities.
66
CITY OF ROSEMEAD, CALIFORNIA
COST-SHARING MULTIPLE EMPLOYER MISCELLANEOUS PLANS
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018 2017 2016 2015
Miscellaneous
Actuarially Determined Contribution 1,487,464$ 1,113,875$ 1,276,087$ 1,183,855$
Contribution in Relation to the Actuarially Determined Contribution (1,487,464) (1,113,875) (1,276,087) (1,183,855)
Contribution Deficiency (Excess)-$ -$ -$ -$
Covered Payroll 3,761,962$ 3,690,780$ 3,388,767$ 3,543,958$
Contributions as a Percentage of Covered Payroll 39.54% 30.18% 18.13%33.40%
Note to Schedule:
Valuation Date:June 30, 2015
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal
Amortization method Level percent of payroll, closed 20 years
Assets valuation method Market value
Inflation 2.75%
Salary Increases
Investment rate of return
Retirement age 50 year
Mortality RP-2000 Heath Annuitant Mortality Table
3.30% - 14.20% depending on age,
service and type of employment
7.5% net of pension plan investment
and administrative expense, including
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of
implementation, therefore only four years are shown.
67
CITY OF ROSEMEAD, CALIFORNIA
PARS RETIREMENT ENHANCEMENT PLAN
SCHEDULE OF CHANGES IN NET PENSION ASSET AND RELATED RATIOS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018 2017 2016 2015
Total Pension Liability
Service Cost 37,502$ 36,410$ 45,435$ 44,112$
Interest 171,215 192,440 191,270 190,667
Effect of Liability Gains or Losses -(355,400) - -
Effect of Assumption Changes or Inputs --- -
Benefit Payments, Including Refunds of employee Contributions (201,490) (200,693) (218,411) (234,960)
Net Change in Total Pension Liability 7,227$ (327,243)$ 18,294$ (181)$
Total Pension Liability - Beginning 2,695,724 3,022,967 3,004,673 3,004,854
Total Pension Liability - Ending (a)2,702,951$ 2,695,724$ 3,022,967$ 3,004,673$
Plan Fiduciary Net Position
Contribution - Employer 140,376$ 164,389$ 265,241$ 273,711$
Net Investment Income 175,605 266,884 (2,345) 59,329
Benefit Payments, Including Refunds of Employee Contributions (201,490) (200,693) (218,411) (234,960)
Other Changes in Fiduciary Net Position (1,461) (6,848) (2,624) (5,864)
Net Change in Fiduciary Net Position 113,030$ 223,732$ 41,861$ 92,216$
Plan Fiduciary Net Position - Beginning 3,030,461 2,806,729 2,764,868 2,672,652
Plan Fiduciary Net Position - Ending (b) 3,143,491$ 3,030,461$ 2,806,729$ 2,764,868$
Plan Net Pension Liability/(Assets) - Ending (a) - (b) (440,540)$ (334,737)$ 216,238$ 239,805$
116.30% 112.42% 92.85%92.02%
Covered Payroll 2,178,892$ 2,414,510$ 2,344,184$ 3,060,587$
-20.22% -13.86% 9.22%7.84%
Notes to Schedule:
Changes of Assumptions: There were no changes in assumptions
Plan Fiduciary Net Position as a Percentage of the Total Pension
Liability
Plan Net Pension Liability/(Asset) as a Percentage of Covered
Payroll
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal year 2015 was the first year of
implementation, therefore only four years are shown.
68
CITY OF ROSEMEAD, CALIFORNIA
PARS RETIREMENT ENHANCEMENT PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018 2017 2016 2015
Actuarially Determined Contribution 81,888$ 88,845$ 116,244$ 133,267$
Contribution in Relation to the Actuarially Determined Contribution (140,376) (164,389) (265,241) (273,711)
Contribution Deficiency (Excess)(58,488)$ (75,544)$ (148,997)$ (140,444)$
Covered Payroll 2,178,892$ 2,414,510$ 2,344,184$ 3,060,587$
Contributions as a Percentage of Covered Payroll 6.44% 6.81% 11.31%8.94%
Note to Schedule:
Valuation Date:June 30, 2016
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method Level dollar, closed
Remaining amortization period 6
Inflation 2.75%
Salary Increases 3.5% to 12.20%, depending on years of service
Investment rate of return
Payroll Growth
Cost of Living Adjustments 2.00%
Mortality Pre-retirement: Consistent with the
Non-Indusrial rates used to value
Miscellaneous Agency CalPERS
Pension Plans. Post-retirement:
CalPERS 1997-2011 Healthy Retiree
6.50%
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal year 2015 was the first year of
implementation, therefore only four years are shown.
3.00%
69
CITY OF ROSEMEAD, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018
Total OPEB Liability
Service cost 147,009$
Interest on the total OPEB liability 237,920
Benefit payments (119,682)
Net change in total OPEB liability 265,247
Total OPEB liability - beginning 3,878,150
Total OPEB liability - ending (a)4,143,397$
Plan Fiduciary Net Position
Contribution - employer 158,082$
Net investment income 336,797
Benefit payments (119,682)
Administrative expense (8,925)
Net change in plan fiduciary net position 366,272
Plan fiduciary net position - beginning 3,216,986
Plan fiduciary net position - ending (b)3,583,258$
Net OPEB Liability - ending (a) - (b)560,139$
Plan fiduciary net position as a percentage of the total OPEB liability 86.5%
Covered payroll 3,690,780$
Net OPEB liability as a percentage of covered payroll 15.18%
Notes to Schedule:
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was
the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.
70
CITY OF ROSEMEAD, CALIFORNIA
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018
192,000$
-
192,000$
3,761,962$
5.10%
Notes to Schedule:
Valuation Date December 31, 2016
Actuarial Cost Method
Amortization Method Level percent of pay
Amortization Period 21-year fixed period for 2017/18
Asset Valuation Method
Discount Rate 6.00%
General Inflation 2.75%
Medical Trend
Mortality CalPERS 1997-2015 experience study
Mortality Improvement
All Other Assumptions
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contributions
Contribution Deficiency (Excess)
Covered payroll
Contributions as a percentage of covered payroll
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was
the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.
Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2018 were from the
December 31, 2016 actuarial valuation.
Investment gains and losses spread over 5-year
rolling period
Mortality Improvement Scale 2017 for post-
retirement mortality
Same as those used to determine the total OPEB
liability
Entry Age Normal, Level Percentage of Payroll
Non-Medicare - 7.5% for 2019, decreasing to an
ultimate rate of 4.0% in 2076
Medicare - 6.5% for 2019, decreasing to an
ultimate rate of 4.0% in 2076
71
CITY OF ROSEMEAD, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments 5$ 484,508$ 740,983$
Accounts receivable - - -
Total Assets 5$ 484,508$ 740,983$
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable -$ 118$ 208,201$
Accrued liabilities - 9,618 4,143
Deposits payable - - -
Due to other funds - - -
Retentions payable - - 27,568
Total Liabilities - 9,736 239,912
Deferred Inflows of Resources:
Unavailable revenues - - -
Total Deferred Inflows of Resources - - -
Fund Balances (Deficits):
Restricted:
Community services - - -
Low and moderate income housing - - -
Public works 5 474,772 -
Capital projects - - 501,071
Unassigned - - -
Total Fund Balances (Deficits)5 474,772 501,071
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)5$ 484,508$ 740,983$
Special Revenue Funds
Local
Transportation/
Sidewalk Grant Proposition A Proposition C
72
CITY OF ROSEMEAD, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments
Accounts receivable
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Capital projects
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
(CONTINUED)
1,130,199$ 580,191$ 267,591$
- - 18,102
1,130,199$ 580,191$ 285,693$
13,854$ -$ 28,940$
2,581 - -
- - -
- - -
- - 1,490
16,435 - 30,430
- - -
- - -
- - -
- - -
569,626 580,191 255,263
544,138 - -
- - -
1,113,764 580,191 255,263
1,130,199$ 580,191$ 285,693$
Special Revenue Funds
Measure R Measure M
Air Quality
Management
District
73
CITY OF ROSEMEAD, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments
Accounts receivable
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Capital projects
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
1,312,563$ 5,904$ 993$
69,167 - -
1,381,730$ 5,904$ 993$
46,302$ -$ -$
4,152 - -
- - -
- - -
4,259 - -
54,713 - -
- - -
- - -
- 5,904 993
- - -
1,030,017 - -
297,000 - -
- - -
1,327,017 5,904 993
1,381,730$ 5,904$ 993$
Special Revenue Funds
Street Lighting
Development
Impact Fee
Traffic
Development
Impact Fee
Public Safety
74
CITY OF ROSEMEAD, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments
Accounts receivable
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Capital projects
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
(CONTINUED)
6,925$ 29,521$ -$
- - 69,332
6,925$ 29,521$ 69,332$
-$ -$ 20,094$
- - 11,081
- - -
- - 63,521
- - -
- - 94,696
- - 5,660
- - 5,660
- 29,521 -
- - -
6,925 - -
- - -
- - (31,024)
6,925 29,521 (31,024)
6,925$ 29,521$ 69,332$
Special Revenue Funds
Development
Impact Fee
General
Government
Development
Impact Fee
Parks
Community
Development
Block Grant
(CDBG)
75
CITY OF ROSEMEAD, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments
Accounts receivable
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Capital projects
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
205,906$ 317,086$ 205,675$
4,375 9,091 116,538
210,281$ 326,177$ 322,213$
-$ -$ -$
513 - -
- 39,529 -
- - -
51 - -
564 39,529 -
- - -
- - -
209,717 - -
- 286,648 -
- - 8,613
- - 313,600
- - -
209,717 286,648 322,213
210,281$ 326,177$ 322,213$
Special Revenue Funds
HOME
Program
Rosemead
Housing
Development
Corporation
Road
Maintenance
and
Rehabilitation
Account SB1
76
CITY OF ROSEMEAD, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments
Accounts receivable
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits):
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Retentions payable
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Restricted:
Community services
Low and moderate income housing
Public works
Capital projects
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
Capital Projects
Funds
Total
Governmental
Funds
880$ 5,288,930$
- 286,605
880$ 5,575,535$
-$ 317,509$
880 32,968
- 39,529
- 63,521
- 33,368
880 486,895
- 5,660
- 5,660
- 246,135
- 286,648
- 2,925,412
- 1,655,809
- (31,024)
- 5,082,980
880$ 5,575,535$
City Capital
Projects
77
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Revenues:
Intergovernmental 100,000$ 1,106,334$ 852,592$
Charges for services - 18,352 36,958
Use of money and property 5 262 467
Developer participation - - -
Miscellaneous - - -
Total Revenues 100,005 1,124,948 890,017
Expenditures:
Current:
General government - 94,731 19,396
Public safety - - 26,142
Community development - - -
Parks and recreation - - -
Public works - 876,854 275,011
Capital outlay 100,000 - 619,768
Total Expenditures 100,000 971,585 940,317
Excess (Deficiency) of Revenues
Over (Under) Expenditures 5 153,363 (50,300)
Other Financing Sources:
Transfers in - - -
Total Other Financing Sources: - - -
Net Change in Fund Balances 5 153,363 (50,300)
Fund Balance (Deficit) at the Beginning of the Year - 321,409 551,371
Fund Balance (Deficit) at the End of the Year 5$ 474,772$ 501,071$
Local
Transportation/
Sidewalk Grant Proposition A Proposition C
Special Revenue Funds
78
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Revenues:
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources:
Transfers in
Total Other Financing Sources:
Net Change in Fund Balances
Fund Balance (Deficit) at the Beginning of the Year
Fund Balance (Deficit) at the End of the Year
(CONTINUED)
640,053$ 580,035$ 70,464$
- - -
788 156 149
- - -
- - -
640,841 580,191 70,613
46,337 - -
- - -
- - -
- - -
91,023 - -
590,636 - 30,430
727,996 - 30,430
(87,155) 580,191 40,183
- - -
- - -
(87,155) 580,191 40,183
1,200,919 - 215,080
1,113,764$ 580,191$ 255,263$
Measure R Measure M
Air Quality
Management
District
Special Revenue Funds
79
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Revenues:
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources:
Transfers in
Total Other Financing Sources:
Net Change in Fund Balances
Fund Balance (Deficit) at the Beginning of the Year
Fund Balance (Deficit) at the End of the Year
1,099,438$ -$ -$
- - -
712 3 1
- 3,950 653
- - -
1,100,150 3,953 654
12,011 - -
- - -
- - -
- - -
630,381 - -
141,911 - -
784,303 - -
315,847 3,953 654
- - -
- - -
315,847 3,953 654
1,011,170 1,951 339
1,327,017$ 5,904$ 993$
Street Lighting
Development
Impact Fee
Traffic
Development
Impact Fee
Public Safety
Special Revenue Funds
80
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Revenues:
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources:
Transfers in
Total Other Financing Sources:
Net Change in Fund Balances
Fund Balance (Deficit) at the Beginning of the Year
Fund Balance (Deficit) at the End of the Year
(CONTINUED)
-$ -$ 410,768$
- - 12,634
4 16 -
4,558 19,430 -
- - -
4,562 19,446 423,402
- - 5,204
- - 160,562
- - 263,822
- - 20,125
- - 10,519
- - -
- - 460,232
4,562 19,446 (36,830)
- - -
- - -
4,562 19,446 (36,830)
2,363 10,075 5,806
6,925$ 29,521$ (31,024)$
Development
Impact Fee
General
Government
Development
Impact Fee
Parks
Community
Development
Block Grant
(CDBG)
Special Revenue Funds
81
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Revenues:
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources:
Transfers in
Total Other Financing Sources:
Net Change in Fund Balances
Fund Balance (Deficit) at the Beginning of the Year
Fund Balance (Deficit) at the End of the Year
520,376$ 420,478$ 322,182$
- 468,969 -
107 27 31
- - -
- 4,974 -
520,483 894,448 322,213
- - -
- - -
147,270 835,069 -
- - -
- - -
- - -
147,270 835,069 -
373,213 59,379 322,213
- - -
- - -
373,213 59,379 322,213
(163,496) 227,269 -
209,717$ 286,648$ 322,213$
HOME Program
Rosemead
Housing
Development
Corporation
Road
Maintenance
and
Rehabilitation
Account SB1
Special Revenue Funds
82
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Revenues:
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources:
Transfers in
Total Other Financing Sources:
Net Change in Fund Balances
Fund Balance (Deficit) at the Beginning of the Year
Fund Balance (Deficit) at the End of the Year
Capital Projects
Funds
Total
Governmental
Funds
425,672$ 6,548,392$
- 536,913
- 2,728
- 28,591
- 4,974
425,672 7,121,598
- 177,679
- 186,704
- 1,246,161
- 20,125
60,944 1,944,732
- 1,482,745
60,944 5,058,146
364,728 2,063,452
121,361 121,361
121,361 121,361
486,089 2,184,813
(486,089) 2,898,167
-$ 5,082,980$
City Capital
Projects
83
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
LOCAL TRANSPORTATION/SIDEWALK GRANT
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Intergovernmental 35,800 35,800 100,000 64,200
Use of money and property - - 5 5
Amounts Available for Appropriations 35,800 35,800 100,005 64,205
Charges to Appropriation (Outflows):
Capital outlay - - 100,000 (100,000)
Total Charges to Appropriations - - 100,000 (100,000)
Budgetary Fund Balance, June 30 35,800$ 35,800$ 5$ (35,795)$
84
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION A
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 321,409$ 321,409$ 321,409$ -$
Resources (Inflows):
Intergovernmental 1,100,600 1,100,600 1,106,334 5,734
Charges for services 26,000 26,000 18,352 (7,648)
Use of money and property - - 262 262
Amounts Available for Appropriations 1,448,009 1,448,009 1,446,357 (1,652)
Charges to Appropriation (Outflows):
General government 116,300 116,300 94,731 21,569
Public works 891,700 891,700 876,854 14,846
Total Charges to Appropriations 1,008,000 1,008,000 971,585 36,415
Budgetary Fund Balance, June 30 440,009$ 440,009$ 474,772$ 34,763$
85
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION C
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 551,371$ 551,371$ 551,371$ -$
Resources (Inflows):
Intergovernmental 849,900 849,900 852,592 2,692
Charges for services 41,000 41,000 36,958 (4,042)
Use of money and property - - 467 467
Amounts Available for Appropriations 1,442,271 1,442,271 1,441,388 (883)
Charges to Appropriation (Outflows):
General government 22,200 22,200 19,396 2,804
Public safety 16,600 16,600 26,142 (9,542)
Public works 318,400 318,400 275,011 43,389
Capital outlay - 650,000 619,768 30,232
Transfers out 650,000 - - -
Total Charges to Appropriations 1,007,200 1,007,200 940,317 66,883
Budgetary Fund Balance, June 30 435,071$ 435,071$ 501,071$ 66,000$
86
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
MEASURE R
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,200,919$ 1,200,919$ 1,200,919$ -$
Resources (Inflows):
Intergovernmental 637,400 637,400 640,053 2,653
Use of money and property - - 788 788
Amounts Available for Appropriations 1,838,319 1,838,319 1,841,760 3,441
Charges to Appropriation (Outflows):
General government 44,000 44,000 46,337 (2,337)
Public works 320,900 320,900 91,023 229,877
Capital outlay - 766,100 590,636 175,464
Transfers out 500,000 - - -
Total Charges to Appropriations 864,900 1,131,000 727,996 403,004
Budgetary Fund Balance, June 30 973,419$ 707,319$ 1,113,764$ 406,445$
87
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
MEASURE M
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Intergovernmental 650,700 650,700 580,035 (70,665)
Use of money and property - - 156 156
Amounts Available for Appropriations 650,700 650,700 580,191 (70,509)
Charges to Appropriation (Outflows):
Capital outlay - 350,000 - 350,000
Transfers out 350,000 - - -
Total Charges to Appropriations 350,000 350,000 - 350,000
Budgetary Fund Balance, June 30 300,700$ 300,700$ 580,191$ 279,491$
88
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY MANAGEMENT DISTRICT
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 215,080$ 215,080$ 215,080$ -$
Resources (Inflows):
Intergovernmental 71,600 71,600 70,464 (1,136)
Use of money and property - - 149 149
Amounts Available for Appropriations 286,680 286,680 285,693 (987)
Charges to Appropriation (Outflows):
Capital outlay - 50,000 30,430 19,570
Transfers out 50,000 - - -
Total Charges to Appropriations 50,000 50,000 30,430 19,570
Budgetary Fund Balance, June 30 236,680$ 236,680$ 255,263$ 18,583$
89
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
STREET LIGHTING
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,011,170$ 1,011,170$ 1,011,170$ -$
Resources (Inflows):
Intergovernmental 875,000 875,000 1,099,438 224,438
Use of money and property - - 712 712
Amounts Available for Appropriations 1,886,170 1,886,170 2,111,320 225,150
Charges to Appropriation (Outflows):
General government 14,300 14,300 12,011 2,289
Public works 798,500 798,500 630,381 168,119
Capital outlay - 50,000 141,911 (91,911)
Transfers out 50,000 - - -
Total Charges to Appropriations 862,800 862,800 784,303 78,497
Budgetary Fund Balance, June 30 1,023,370$ 1,023,370$ 1,327,017$ 303,647$
90
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT FEE TRAFFIC
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,951$ 1,951$ 1,951$ -$
Resources (Inflows):
Use of money and property - - 3 3
Developer participation 38,000 38,000 3,950 (34,050)
Amounts Available for Appropriations 39,951 39,951 5,904 (34,047)
Charges to Appropriation (Outflows):
Public works 38,000 38,000 - 38,000
Total Charges to Appropriations 38,000 38,000 - 38,000
Budgetary Fund Balance, June 30 1,951$ 1,951$ 5,904$ 3,953$
91
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT FEE PUBLIC SAFETY
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 339$ 339$ 339$ -$
Resources (Inflows):
Use of money and property - - 1 1
Developer participation 3,000 3,000 653 (2,347)
Amounts Available for Appropriations 3,339 3,339 993 (2,346)
Budgetary Fund Balance, June 30 3,339$ 3,339$ 993$ (2,346)$
92
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT FEE GENERAL GOVERNMENT
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,363$ 2,363$ 2,363$ -$
Resources (Inflows):
Use of money and property - - 4 4
Developer participation 20,000 20,000 4,558 (15,442)
Amounts Available for Appropriations 22,363 22,363 6,925 (15,438)
Budgetary Fund Balance, June 30 22,363$ 22,363$ 6,925$ (15,438)$
93
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT FEE PARKS
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 10,075$ 10,075$ 10,075$ -$
Resources (Inflows):
Use of money and property - - 16 16
Developer participation 68,000 68,000 19,430 (48,570)
Amounts Available for Appropriations 78,075 78,075 29,521 (48,554)
Budgetary Fund Balance, June 30 78,075$ 78,075$ 29,521$ (48,554)$
94
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 5,806$ 5,806$ 5,806$ -$
Resources (Inflows):
Intergovernmental 599,000 599,000 410,768 (188,232)
Charges for services 18,000 18,000 12,634 (5,366)
Amounts Available for Appropriations 622,806 622,806 429,208 (193,598)
Charges to Appropriation (Outflows):
General government 6,200 6,200 5,204 996
Public safety 163,200 163,200 160,562 2,638
Community development 559,300 559,300 263,822 295,478
Parks and recreation 30,500 30,500 20,125 10,375
Public works - - 10,519 (10,519)
Total Charges to Appropriations 759,200 759,200 460,232 298,968
Budgetary Fund Deficit, June 30 (136,394)$ (136,394)$ (31,024)$ 105,370$
95
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
HOME PROGRAM
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Deficit, July 1 (163,496)$ (163,496)$ (163,496)$ -$
Resources (Inflows):
Intergovernmental 906,000 906,000 520,376 (385,624)
Use of money and property - - 107 107
Amounts Available for Appropriations 742,504 742,504 356,987 (385,517)
Charges to Appropriation (Outflows):
Community development 849,900 849,900 147,270 702,630
Total Charges to Appropriations 849,900 849,900 147,270 702,630
Budgetary Fund Balance (Deficit), June 30 (107,396)$ (107,396)$ 209,717$ 317,113$
96
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 227,269$ 227,269$ 227,269$ -$
Resources (Inflows):
Intergovernmental - - 420,478 420,478
Charges for services 444,000 444,000 468,969 24,969
Use of money and property - - 27 27
Miscellaneous 2,500 2,500 4,974 2,474
Amounts Available for Appropriations 673,769 673,769 1,121,717 447,948
Charges to Appropriation (Outflows):
Community development 854,500 854,500 835,069 19,431
Total Charges to Appropriations 854,500 854,500 835,069 19,431
Budgetary Fund Balance (Deficit), June 30 (180,731)$ (180,731)$ 286,648$ 467,379$
97
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
ROAD MAINTENANCE AND REHABILITATION ACCOUNT SB1
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Intergovernmental - 318,500 322,182 3,682
Use of money and property - - 31 31
Amounts Available for Appropriations - 318,500 322,213 3,713
Budgetary Fund Balance, June 30 -$ 318,500$ 322,213$ 3,713$
98
CITY OF ROSEMEAD, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CITY CAPITAL PROJECTS
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Deficit, July 1 (486,089)$ (486,089)$ (486,089)$ -$
Resources (Inflows):
Intergovernmental - - 425,672 425,672
Transfers in 2,200,000 2,200,000 121,361 (2,078,639)
Amounts Available for Appropriation 1,713,911 1,713,911 60,944 (1,652,967)
Charges to Appropriation (Outflows):
Public works 156,400 156,400 60,944 95,456
Capital outlay 2,200,000 2,200,000 - 2,200,000
Total Charges to Appropriations 2,356,400 2,356,400 60,944 2,295,456
Budgetary Fund Balance (Deficit), June 30 (642,489)$ (642,489)$ -$ 642,489$
99
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2018
Totals
Assets:
Current Assets:
Cash and investments 544,396$ 77,126$ 621,522$
Total Current Assets 544,396 77,126 621,522
Noncurrent Assets:
Capital assets, net of accumulated depreciation 89,991 25,352 115,343
Total Noncurrent Assets 89,991 25,352 115,343
Total Assets 634,387 102,478 736,865
Liabilities:
Current Liabilities:
Accounts payable - 44 44
Total Current Liabilities - 44 44
Total Liabilities - 44 44
Net Position:
Investment in capital assets 89,991 25,352 115,343
Unrestricted 544,396 77,082 621,478
Total Net Position 634,387$ 102,434$ 736,821$
Governmental Activities - Internal Service Funds
Equipment
Replacement
Technology
Replacement
100
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Totals
Operating Revenues:
Charges for services 125,000$ 154,200$ 279,200$
Total Operating Revenues 125,000 154,200 279,200
Operating Expenses:
Contractual services - 127,483 127,483
Depreciation expense 70,942 - 70,942
Total Operating Expenses 70,942 127,483 198,425
Operating Income 54,058 26,717 80,775
Net Position at the Beginning of the Year 580,329 75,717 656,046
Net Position at the End of the Year 634,387$ 102,434$ 736,821$
Governmental Activities - Internal Service Funds
Equipment
Replacement
Technology
Replacement
101
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Totals
Cash Flows from Operating Activities:
Cash received from interfund service provided 125,000$ 154,200$ 279,200$
Cash paid to suppliers for goods and services (127,472) (127,472)
Net Cash Provided by Operating Activities 125,000 26,728 151,728
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (5,224) (25,350) (30,574)
Net Cash Used for Capital
and Related Financing Activities (5,224) (25,350) (30,574)
Net Increase in Cash and Cash Equivalents 119,776 1,378 121,154
Cash and Cash Equivalents at the Beginning of the Year 424,620 75,748 500,368
Cash and Cash Equivalents at the End of the Year 544,396$ 77,126$ 621,522$
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating income 54,058$ 26,717$ 80,775$
Adjustments to reconcile operating income
net cash provided by operating activities:
Depreciation 70,942 - 70,942
Increase in accounts payable - 11 11
Total Adjustments 70,942 11 70,953
Net Cash Provided by Operating Activities 125,000$ 26,728$ 151,728$
Governmental Activities - Internal Service Funds
Equipment
Replacement
Technology
Replacement
102
CITY OF ROSEMEAD, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FOR THE YEAR ENDED JUNE 30, 2018
Balance Balance
July 1, 2017 Additions Deductions June 30, 2018
Agency
Assets:
Cash and investments 399,361$ 791,787$ 142,820$ 1,048,328$
Total Assets 399,361$ 791,787$ 142,820$ 1,048,328$
Liabilities:
Deposits payable 399,362$ 959,707$ 310,741$ 1,048,328$
Total Liabilities 399,362 $ 959,707 $ 310,741 $ 1,048,328 $
103
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104
STATISTICAL SECTION
This part of the City of Rosemead’s Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the government’s overall financial
health.
Contents Page
Financial Trends 107
These schedules contain trend information to help the reader
understand how the government’s financial performance and
wellbeing have changed over time.
Revenue Capacity 115
These schedules contain trend information to help the reader
assess the government’s most significant revenue source,
property tax.
Debt Capacity 119
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 126
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 129
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 notes, the information in these schedules is derived from the
Comprehensive Annual Financial Reports for the relevant year.
105
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106
2009 2010 2011 2012
Governmental activities:
Investment in capital assets 11,828,993 12,712,242 14,760,940 54,010,031
Restricted 13,361,249 13,199,438 24,806,402 10,870,747
Unrestricted 24,882,730 20,489,721 10,748,249 13,688,078
Total governmental activities net position 50,072,972 46,401,401 50,315,591 78,568,856
(accrual basis of accounting)
CITY OF ROSEMEAD
Net Position by Component
Last Ten Fiscal Years
Fiscal Year
107
2013 2014 2015 2016 2017 2018
51,132,854 50,042,631 52,038,429 51,542,030 52,806,193 53,587,243
2,829,147 3,110,688 3,419,068 4,005,847 4,387,055 5,467,366
17,724,709 17,367,841 11,018,153 13,108,874 15,690,721 15,298,855
71,686,710 70,521,160 66,475,650 68,656,751 72,883,969 74,353,464
Fiscal Year
108
Changes in Net Position
2009 2010 2011 2012
Expenses:
Governmental activities:
General government 12,176,877 5,991,796 3,160,306 3,989,359
Public safety 9,081,719 8,879,854 8,881,926 7,517,101
Public works 6,465,355 11,469,614 11,907,245 11,588,278
Community services 773,374 589,650 595,904 -
Community development 1,290,108 2,141,218 3,969,502 4,080,294
Parks and recreation 2,030,698 2,733,885 2,362,860 2,532,665
Interest and other charges 1,523,391 1,491,717 1,681,875 569,045
Total governmental activities expenses 33,341,522 33,297,734 32,559,618 30,276,742
Program revenues:
Governmental activities:
General government 547,577 1,573,695 1,048,727 130,450
Public safety 1,512,475 1,293,677 1,293,524 1,454,759
Public works 7,581,801 8,052,011 9,143,311 4,033,874
Community services 858,809 186,283 450,004 -
Community development 621,375 597,402 3,753,612 3,501,082
Parks and recreation 36,000 20,800 654,437 704,029
Total governmental activities
program revenues 11,158,037 11,723,868 16,343,615 9,824,194
Net revenues (expenses):
Governmental activities
Total net revenues (expenses)(22,183,485) (21,573,866) (16,216,003) (20,452,548)
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes 12,288,177 12,328,634 13,656,347 10,567,509
Sales and use taxes 4,589,998 4,408,367 3,737,363 3,200,911
Transient occupancy taxes 1,272,092 1,129,146 1,219,977 1,323,886
Other taxes 761,410 562,317 576,904 633,393
Investment income 884,847 389,310 367,961 195,165
Motor vehicle in-lieu, unrestricted 195,273 169,042 263,983 -
Other general revenues 133,825 336,668 307,658 853,956
Loss on sale of capital assets - - - (2,340,090)
Transfer to Successor Agency - - - -
Extraordinary item:
Gain on dissolution of redevelopment agency - - - 34,271,082
Total governmental activities 20,125,622 19,323,484 20,130,193 48,705,812
Changes in net position
Governmental activities
Total primary government (2,057,863)$ (2,250,382)$ 3,914,190$ 28,253,264$
CITY OF ROSEMEAD
Last Ten Fiscal Years
(accrual basis of accounting)
109
2013 2014 2015 2016 2017 2018
3,381,686 4,271,354 2,739,281 3,218,363 3,705,685 4,554,063
7,791,073 7,923,316 7,747,949 8,381,588 8,935,164 9,499,683
11,717,276 10,072,081 8,703,817 8,738,495 7,323,865 9,554,073
- - - - - -
2,616,531 2,853,472 2,879,028 3,246,081 3,161,310 3,409,699
2,594,863 2,274,920 2,049,540 2,073,145 2,153,986 2,746,482
7,827 5,561 3,198 787 - -
28,109,256 27,400,704 24,122,813 25,658,459 25,280,010 29,764,000
2,408,362 2,030,063 2,725,291 2,203,233 2,191,604 1,769,171
1,622,911 1,586,557 1,573,532 1,563,652 1,565,275 1,787,151
3,869,285 4,356,486 4,627,331 4,360,908 4,232,311 5,208,427
- - - - - -
1,896,876 1,632,508 1,915,557 2,352,137 2,523,350 4,265,255
785,611 724,197 713,484 741,171 788,931 828,038
10,583,045 10,329,811 11,555,195 11,221,101 11,301,471 13,858,042
(17,526,211) (17,070,893) (12,567,618) (14,437,358) (13,978,539) (15,905,958)
8,900,228 8,667,709 9,034,141 9,158,499 8,643,019 9,128,934
3,215,897 3,504,285 3,452,605 4,124,745 5,366,975 5,929,492
1,447,820 1,593,640 1,575,401 1,998,954 2,213,286 2,326,863
2,275,986 1,307,280 1,247,941 1,209,249 1,224,230 1,313,699
28,202 216,499 97,589 348,651 20,526 210,288
- - - - - -
1,180,688 604,053 793,680 945,372 737,721 647,888
- - - - - -
(6,392,878) - - - - -
- - - - - -
10,655,943 15,893,466 16,201,357 17,785,470 18,205,757 19,557,164
(6,870,268)$ (1,177,427)$ 3,633,739$ 3,348,112$ 4,227,218$ 3,651,206$
110
Fund Balances of Governmental Funds
(modified accrual basis of accounting)
2009 2010 2011 2012
General fund:
Reserved 3,106,917 3,327,182 - -
Unreserved 16,135,102 13,626,774 - -
Nonspendable - - 2,034 2,034
Restricted - - - -
Committed - - 5,107,963 5,294,253
Assigned - - - 5,712
Unassigned - - 10,209,075 9,519,173
Total general fund 19,242,019 16,953,956 15,319,072 14,821,172
All other governmental funds:
Reserved 9,000,561 8,944,112 - -
Unreserved, reported in:
Special revenue funds 9,023,487 8,763,359 - -
Debt service funds 2,803,910 2,803,910 - -
Capital projects funds (54,323) (1,405,770) - -
Nonspendable - - - -
Restricted - - 27,476,081 10,870,747
Committed - - - -
Assigned - - - -
Unassigned - - (4,402,964) (1,292,405)
Total all other governmental funds 20,773,635 19,105,611 23,073,117 9,578,342
CITY OF ROSEMEAD
Last Ten Fiscal Years
The City implemented GASB 54 for the fiscal year ended June 30, 2014.The categories of fund balance for governmental
funds have been changed as described more fully in the notes to the basic financial statements. Prior year fund balances
reflect the guidance in effect when those financial statements were prepared.
111
2013 2014 2015 2016 2017 2018
- - - - - -
- - - - - -
2,034 140,893 143,560 187,247 765,218 981,946
- - - - - -
6,415,416 5,883,235 6,120,361 6,682,495 6,935,525 8,760,289
5,712 65,343 78,280 83,513 63,298 79,798
11,194,278 11,607,595 10,128,160 11,514,894 11,270,958 10,662,248
17,617,440 17,697,066 16,470,361 18,468,149 19,034,999 20,484,281
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
2,829,147 3,110,688 3,419,068 4,005,847 4,376,257 5,467,366
- - - - - -
- - - - - -
(788,224) (1,192,926) (1,643,527) (832,005) (639,510) (31,024)
2,040,923 1,917,762 1,775,541 3,173,842 3,736,747 5,436,342
112
Changes in Fund Balances of Governmental Funds
2009 2010 2011 2012
Revenues:
Taxes 17,153,625$ 18,508,896$ 19,313,094$ 15,960,662$
Intergovernmental 11,728,448 8,537,080 10,124,638 10,330,915
Licenses and permits 1,178,362 1,079,429 1,764,162 1,156,719
Charges for services 638,244 708,434 677,861 1,055,391
Fines, forfeitures and penalties 565,643 491,574 462,389 619,397
Development participation - - - -
Investment income 884,847 389,310 367,956 582,176
Other 381,429 254,610 253,379 658,670
Total revenues 32,530,598 29,969,333 32,963,479 30,363,930
Expenditures
Current:
General government 11,956,179 5,903,926 3,801,486 4,203,302
Public safety 9,114,009 8,863,234 8,882,915 7,517,101
Public works 4,964,867 11,264,220 19,402,924 6,417,803
Community services 783,452 584,463 595,904 -
Community development 1,047,529 1,940,641 3,397,072 3,681,903
Parks and recreation 2,030,698 2,733,885 2,362,860 2,532,665
Capital outlay 202,752 290,885 93,121 9,090,076
Debt service:
Principal 915,000 945,000 975,000 1,210,000
Interest and fiscal charges 1,531,986 1,501,667 1,882,092 961,506
Bond issuance costs - - 275,344 -
Total expenditures 32,546,472 34,027,921 41,668,718 35,614,356
Excess (deficiency) of
revenues over (under) expenditures (15,874) (4,058,588) (8,705,239) (5,250,426)
Other financing sources (uses):
Transfers in 4,078,483 4,133,554 4,824,919 6,431,374
Transfers out (4,078,483) (4,133,554) (4,824,919) (6,554,374)
Transfer to Successor Agency - - - -
Issuance of long-term debt - - 11,230,000 -
Discount on bonds - - (192,139) -
Payment to bond escrow agent - - - -
Proceeds of capital lease - 102,501 - -
Total other financing sources (uses)- 102,501 11,037,861 (123,000)
Extraordinary item:
Gain (loss) on dissolution of redevelopment
agency - - - (8,619,249)
Net change in fund balances (15,874) (3,956,087) 2,332,622 (13,992,675)
Debt service as a percentage of
noncapital expenditures 7.6%7.4%8.8%6.8%
CITY OF ROSEMEAD
Last Nine Fiscal Years
(modified accrual basis of accounting)
113
2013 2014 2015 2016 2017 2018
16,602,329$ 15,320,806$ 15,537,262$ 16,491,447$ 17,447,510$ 18,698,988$
7,372,878 6,948,479 7,092,141 7,734,995 6,726,279 8,002,636
1,156,968 1,308,482 1,846,997 2,520,937 2,754,881 3,128,000
1,036,563 1,087,091 1,138,731 1,191,275 1,012,557 1,572,266
691,548 700,126 676,830 597,373 607,754 633,711
- - - - - 28,591
474,970 873,631 754,865 1,002,835 666,968 210,288
928,596 61,690 114,074 71,152 231,545 566,338
28,263,852 26,300,305 27,160,900 29,610,014 29,447,494 32,840,818
3,988,156 3,973,364 3,879,122 3,664,633 4,280,825 4,546,789
7,773,611 7,913,659 8,156,485 8,452,932 9,060,840 9,318,858
6,909,471 6,184,890 6,348,101 6,346,179 6,499,220 6,554,648
- - - - - -
2,605,654 2,846,112 3,150,240 3,323,933 3,385,455 3,279,088
2,208,564 2,157,424 2,071,443 2,123,274 2,300,906 2,386,463
3,126,669 3,268,391 4,924,435 2,302,974 2,790,493 3,606,095
- - - - - -
- - - - - -
- - - - - -
26,612,125 26,343,840 28,529,826 26,213,925 28,317,739 29,691,941
1,651,727 (43,535) (1,368,926) 3,396,089 1,129,755 3,148,877
2,772,415 3,053,605 2,433,974 1,386,471 2,442,441 121,361
(2,772,415) (3,053,605) (2,433,974) (1,386,471) (2,442,441) (121,361)
(6,392,878) - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
(6,392,878) - - - - -
- - - - - -
(4,741,151) (43,535) (1,368,926) 3,396,089 1,129,755 3,148,877
0.0%0.0%0.0%0.0%0.0%0.0%
114
CITY OF ROSEMEAD
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
Fiscal Year Taxable
Ended SBE Assessed Total Direct
June 30 Secured Unsecured Non-Unitary Value Tax Rate
2009 3,277,256,282 66,506,103 18,883,761 3,362,646,146 22.61%
2010 3,333,876,047 62,148,114 3,307,527 3,399,331,688 22.27%
2011 3,364,287,629 64,231,062 3,301,527 3,431,820,218 22.41%
2012 3,458,570,185 71,320,472 3,301,527 3,533,192,184 22.35%
2013 3,531,097,436 68,996,223 3,301,527 3,603,395,186 22.11%
2014 3,654,495,783 68,912,542 1,901,995 3,725,310,320 9.27%
2015 3,806,028,086 71,498,360 1,901,995 3,879,428,441 9.27%
2016 4,012,426,717 62,768,733 1,901,995 4,077,097,445 9.27%
2017 4,202,108,491 63,820,415 2,051,995 4,267,980,901 9.27%
2018 4,375,810,412 60,507,061 2,051,995 4,438,369,468 9.27%
Source: L.A. County Assessor 2008/09 - 2017/18 Combined Tax Rolls and HDL Coren & Cone
City
1 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 totalmaximumrateof1%based upon the assessed value of the property being taxed.Each year,the assessed valueofpropertymaybeincreasedbyan"inflation factor"(limited to a maximum increase of 2%).With fewexceptions,property is only re-assessed as a result of new construction activity or at the time it is sold to a newowner.At that point,the property is reassessed based upon the added value of the construction or at thepurchaseprice(market value)or economic value of the property sold.The assessed valuation data shown aboverepresentstheonlydatacurrentlyavailablewithrespecttotheactualmarketvalueoftaxablepropertyandissubjecttothelimitationsdescribedabove.
115
Agency 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Basic Levy1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
El Monte City School District 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.11822 0.14642 0.14682 0.14616
El Monte Union High School 0.05159 0.09654 0.08475 0.09591 0.08992 0.09799 0.08418 0.09155 0.08469 0.08243
Garvey School District 0.04953 0.05378 0.05733 0.05686 0.06037 0.05978 0.05947 0.05874 0.06067 0.08332
Garvey-Alhambra 0.01882 0.02458 0.02770 0.02718 0.02795 0.03154 0.02912 0.02906 0.02806 0.04805
Los Angeles Community College District 0.02212 0.02311 0.04031 0.03530 0.04875 0.04454 0.04017 0.03575 0.03596 0.04599
Metropolitan Water District 0.01800 0.01800 0.01800 0.01800 0.01800 0.01800 0.01800 0.01800 0.02300 0.03000
Montebello Unified School District 0.08065 0.09673 0.09792 0.10001 0.09630 0.09457 0.08750 0.08715 0.14705 0.13514
Pasadena Community College District 0.01741 0.02300 0.01986 0.01956 0.02056 0.01899 0.01032 0.00872 0.00885 0.00819
Rio Hondo Community College District 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.02821 0.02712 0.02808 0.02748
Rosemead School District 0.06875 0.11358 0.10743 0.10507 0.10240 0.10314 0.09886 0.09997 0.08533 0.11979
San Gabriel Unified School District 0.09294 0.10070 0.10190 0.08454 0.10523 0.10082 0.11444 0.10684 0.10534 0.10078
Total Direct & Overlapping2 Tax Rates 1.41981 1.55002 1.55520 1.54243 1.56948 1.56937 1.68849 1.70932 1.75385 1.82733
City's Share of 1% Levy Per Prop 13 3 0.09388 0.09388 0.09388 0.09388 0.09388 0.09388 0.09388 0.09388 0.09388 0.09388
Voter Approved City Debt Rate
Redevelopment Rate 4 1.00430 1.00430 1.00370 1.00370
Total Direct Rate 5 0.22614 0.22270 0.22407 0.22351 0.22113 0.09271 0.09271 0.09273 0.09274 0.09274
Notes:
Source: L.A. County Assessor 2008/09 - 2017/18 Tax Rate Table and HDL Coren & Cone
2 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city
property owners.
3 City's share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general
fund tax shifts may not be included in tax ratio figures.
4 RDA rate is based on the largest RDA tax rate area (TRA)and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute.
RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State
of California for the fiscal year 2012-13 and years thereafter.
5 Total Direct Rate is the weighted average of all individual direct rates applied by the government prepaing the statistical section information and excludes
revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate
areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual
revenue is assumed to be distributed to the City in the same proportions as general fund revenue.
CITY OF ROSEMEAD
Direct and Overlapping Property Tax Rates
(Rate per $100 of Taxable Value)
Last Ten Fiscal Years
1In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00%is shared by all taxing agencies for
which the subject property resides within.In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property
values for the payment of any voter approved bonds.
116
CITY OF ROSEMEAD
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Rosemead Place, LLC 49,955,569$ 1 1.13%
Walmart Stores, Inc 36,320,051 2 0.82%
Rosemead Hwang, LLC 35,731,185 3 0.81%
AFG Investment Fund 5 LLC 26,551,405 4 0.60%
Sunshine Inn 20,880,636 5 0.47%
Metodo Investments LLC 20,019,864 6 0.45%
420 Boyd Street LLC 18,766,408 7 0.42%
MHI Rosemead LP 16,752,046 8 0.38%
Macy's California Inc 15,089,612 9 0.34%
Shurl and Kay Curci Found Lessor 14,887,927 10 0.34%
Rosemead Place, LLC 44,225,721$ 1 1.32%
Walmart Real Estate Business Trust 39,169,235 2 1.16%
Rosemead Hwang LLC 31,570,937 3 0.94%
AFG Investment Fund 5 LLC 23,460,000 4 0.70%
General Electric Cred Auto Auctions Inc 20,654,488 5 0.61%
420 Boyd Street LLC 18,000,000 6 0.54%
Macy's California Inc 16,053,368 7 0.48%
Southern California Edison 15,628,091 8 0.46%
California Federal Savings and Loan Assoc 13,154,503 9 0.39%
Sunshine Inn 10,086,980 10 0.30%
Source: Hdl Coren & Cone, Los Angeles County Assessor 2017/18 Combined Tax Rolls.
2017/18 2008/09
Current Year and Nine Years Ago
Principal Property Tax Payers
117
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years *Amount of Levy
2009 2,569,429 2,435,807 94.80%- 2,435,807 94.80%
2010 2,609,456 1,898,973 72.77%- 1,898,973 72.77%
2011 2,633,288 2,595,289 98.56%- 2,595,289 98.56%
2012 2,711,546 2,699,377 99.55%- 2,699,377 99.55%
2013 2,771,913 2,710,893 97.80%- 2,710,893 97.80%
2014 2,865,651 2,850,674 99.48%- 2,850,674 99.48%
2015 2,981,810 2,935,129 98.43%- 2,935,129 98.43%
2016 3,134,303 3,114,233 99.36%- 3,114,233 99.36%
2017 3,187,187 2,632,109 82.58%- 2,632,109 82.58%
2018 3,336,547 2,878,054 86.26%- 2,878,054 86.26%
* Information not available.
** Note: For these years the information was not available so an estimate was made to reduce the
total collections to date to 100%.
Source: HDL Coren & Cone and Los Angeles County Auditor Controller's Office
CITY OF ROSEMEAD
Collected within the
Fiscal Year of Levy Total Collections to Date
118
Ratios of Outstanding Debt by Type
Tax Percentage Debt
Allocation of Personal Per
Fiscal Year Bonds 2 Income 1 Capita 1
2008/09 35,435,000 4.28%622
2009/10 34,490,000 4.25%601
2010/11 44,745,000 4.76%775
2011/12 43,535,000 4.57%804
2012/13 41,740,000 4.35%766
2013/14 39,885,000 4.22%728
2014/15 37,965,000 3.97%693
2015/16 35,970,000 3.86%651
2016/17 31,775,000 3.31%578
2017/18 29,455,000 3.03%533
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
1 These ratios are calculated using personal income and population for the prior calendar year.
CITY OF ROSEMEAD
Last Ten Fiscal Years
2 The Rosemead Community Development Commission was dissolved on February 1, 2012. As a result, the tax allocation
bonds are not debt of the primary government.
119
Tax Percent of
Allocation Assessed Per
Fiscal Year Bonds Value 1 Capita
2008/09 35,435 1.05%622
2009/10 34,490 1.01%601
2010/11 44,745 1.30%775
2011/12 43,535 1.23%804
2012/13 41,740 1.16%766
2013/14 39,885 1.07%728
2014/15 37,965 0.98%693
2015/16 35,970 0.88%651
2016/17 31,775 0.74%578
2017/18 29,455 0.66%533
2 The Rosemead Community Development Commission was dissolved on
February 1, 2012.As a result, the tax allocation bonds are not debt of the primary
government.
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, City has none).
1 Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
120
Percentage
Gross Bonded Applicable Net Bonded
Debt Balance To City Debt
Overlapping Debt
*Metropolitan Water District 29,354,442$ 0.321%94,228
Garvey SD DS 2004 Series 2006 13,092,423 50.635%6,629,348
Garvey SD DS 2004 Series C 8,477,964 50.635%4,292,817
Garvey SD DS 2011 Refund Bonds 3,555,000 50.635%1,800,074
Garvey SD DS 2013 Ref Bonds 1,385,000 50.635%701,295
Garvey SD DS 2014 Ref Bonds 4,240,000 50.635%2,146,924
Garvey SD DS 2016 Series A 10,000,000 50.635%5,063,500
Rosemead SD DS 2007 Series D 230,000 68.596%157,771
Rosemead SD DS 2008 Series A 420,000 68.596%288,103
Rosemead SD DS 2011 Ref Bond 6,780,000 68.596%4,650,809
Rosemead SD DS 2012 Ref Bond 5,205,000 68.596%3,570,422
Rosemead SD DS 2008 Series T 1 7,821,503 68.596%5,365,238
Rosemead SD DS 2014 Ref Bonds 5,770,000 68.596%3,957,989
Rosemead SD DS 2016 Ref Bonds 12,395,000 68.596%8,502,474
Rosemead SD DS 2008 Series C 1,800,000 68.596%1,234,728
Rosemead SD DS 2014 Series A 7,980,000 68.596%5,473,961
El Monte Union HSD DS 2008 Series A 617,055 14.625%90,244
El Monte Union HSD DS 2008 Series B 30,118,828 14.625%4,404,879
El Monte Union HSD DS 2015 Ref Bonds 26,125,000 14.625%3,820,781
El Monte Union HSD DS 2016 Ref 17,110,000 14.625%2,502,338
El Monte Union HSD DS 2008 Series C 52,990,000 14.625%7,749,788
El Monte Union HSD DS 2016 Ref Bond 10,895,098 14.625%1,593,408
LA CCD DS 2003, Taxable Series 2004B 2,115,000 0.300%6,345
LA CCD DS 2001, Taxable Series 2004A 31,555,000 0.300%94,665
LA CCD DS 2001, 2008 Ser E-1 7,580,000 0.300%22,740
LA CCD DS 2003, 2008 Ser F-1 7,575,000 0.300%22,725
LA CCD DS 2008, 2009 Taxable Ser B 75,000,000 0.300%225,000
LA CCD DS 2008, 2010 Tax Ser D 125,000,000 0.300%375,000
LA CCD Debt 2008, 2010 Tax Ser E (BABS)900,000,000 0.300%2,700,000
LA CCD Debt 2008, 2012 Series F 205,000,000 0.300%615,000
LA CCD DS 2013 Ref Bonds 42,305,000 0.300%126,915
LA CCD DS 2008 Series G 1,664,870,000 0.300%4,994,610
LA CCD DS 2015 Ref Series A 33,270,000 0.300%99,810
LA CCD DS 2015 Ref Series B 272,085,000 0.300%816,255
LA CCD DS 2015 Ref Series C 223,910,000 0.300%671,730
LA CCD DS 2008 Ser I 175,565,000 0.300%526,695
LA CCD DS 2016 Ref Bonds 300,000,000 0.300%900,000
LA CCD DS 2016, 2017 Ser A 100,000,000 0.300%300,000
Pasadena CCD DS 2002, 2006 Series D 3,595,000 2.440%87,718
Pasadena CCD DS 2002, 2009 Series E (BABS)25,295,000 2.440%617,198
Pasadena CCD DS 2014 Ref Series A 15,325,000 2.440%373,930
Pasadena CCD DS 2016 Ref Series A 32,900,000 2.440%802,760
Montebello USD DS 1998 Series 1998 4,344,911 1.498%65,087
Montebello USD DS 1998 Series 1999 6,754,609 1.498%101,184
Montebello USD DS 1998 Series 2002 12,862,369 1.498%192,678
Montebello USD DS 2004 Series 2008 870,000 1.498%13,033
CITY OF ROSEMEAD
Direct and Overlapping Governmental Activities Debt
June 30, 2018
121
Montebello USD DS 2004 Series 2009-1 1,820,000 1.498%27,264
Montebello USD DS 2004 Series 2009A-2 BABS 12,640,000 1.498%189,347
Montebello USD DS 2010 Ref Bonds 3,380,000 1.498%50,632
Montebello USD DS 2004 Series 2013A 18,300,000 1.498%274,134
Montebello USD DS Ref Bond Series 2015 28,215,000 1.498%422,661
Montebello USD DS Ref Bonds 2016 Series A 14,820,000 1.498%222,004
Montebello USD DS 2016 Series A 92,205,000 1.498%1,381,231
San Gabriel USD DS 2008 Series A 9,424,370 1.242%117,051
San Gabriel USD DS 2010 Ref Bonds 6,075,000 1.242%75,452
San Gabriel USD DS 2012 Ref Bond Series B 12,348,464 1.242%153,368
San Gabriel USD DS 2008 Series C 2,040,000 1.242%25,337
San Gabriel USD DS 2015 Ref Bond Series A 22,968,437 1.242%285,268
San Gabriel USD DS 2015 Ref Bond Series B 33,425,000 1.242%415,139 -
Total Overlapping Debt 92,481,082
2017/18 Assessed Valuation: $3,684,714,975 After Deducting $753,654,493 Incremental Value.
Debt to Assessed Valutation Ratios:
Direct Debt 0.00%
Overlapping Debt 2.51%
Total Debt 2.51%
Source: Hdl Coren & Cone, L.A. County Assessor and Auditor Combined 2017/18 Lien Date Tax Rolls.
Overlapping governments are those that coincide,at least in part, with the geographic boundaries of the city.
The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable
percentages were estimated by determining the portion of another governmental unit's taxable assessd value that
is within the city's boundaries and dividing it by each unit's total taxable assessed value.
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.
* This fund is a portion of a larger agency, and is repsonsible for debt in areas outside the city.
122
Legal Debt Margin Information
2008/09 2009/10 2010/11 2011/12
Assessed valuation 3,362,646,146 3,399,331,688 3,431,820,218 3,533,192,184
Conversion percentage 25%25%25%25%
Adjusted assessed valuation 840,661,537 849,832,922 857,955,055 883,298,046
Debt limit percentage 15%15%15%15%
Debt limit 126,099,230 127,474,938 128,693,258 132,494,707
Total net debt applicable to limit:
General obligation bonds - - - -
Legal debt margin 126,099,230 127,474,938 128,693,258 132,494,707
Total debt applicable to the limit
as a percentage of debt limit 0.0%0.0%0.0%0.0%
Source: Rosemead Finance Department
Los Angeles County Tax Assessor's Office
CITY OF ROSEMEAD
Last Ten Fiscal Years
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.
123
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
3,603,395,186 3,725,310,320 3,879,248,441 4,077,097,445 4,337,892,775 4,525,131,407
25%25%25%25%25%25%
900,848,797 931,327,580 969,812,110 1,019,274,361 1,084,473,194 1,131,282,852
15%15%15%15%15%15%
135,127,319 139,699,137 145,471,817 152,891,154 162,670,979 169,692,428
- - - - - -
135,127,319 139,699,137 145,471,817 152,891,154 162,670,979 169,692,428
0.0%0.0%0.0%0.0%0.0%0.0%
124
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Coverage
2007 4,029,714 780,000 1,505,781 1.76
2008 6,219,884 1,105,000 1,567,849 2.33
2009 5,649,896 915,000 1,531,987 2.31
2010 6,243,948 945,000 1,501,667 2.55
2011 6,893,575 975,000 1,882,092 2.41
2012 2,601,979 1,210,000 961,506 1.20
2013 5,439,677 1,795,000 1,852,123 1.49
2014 5,517,943 1,855,000 1,790,511 1.51
2015 5,521,038 1,920,000 1,718,573 1.52
2016 5,724,292 1,995,000 1,635,578 1.58
2017 4,711,788 850,000 1,602,713 1.92
2018 3,916,792 2,320,000 1,386,038 1.06
Tax Allocation Bonds
Debt Service
CITY OF ROSEMEAD
Pledged-Revenue Coverage
Last Ten Fiscal Years
(In Thousands)
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.
125
Per
Personal Capita Unemployment
Fiscal Population Income Personal Rate
Year (1)(in thousands) (2)Income (2)(3)
2007/08 56,876 819,088 14,401 4.40%
2008/09 57,003 827,444 14,516 6.50%
2009/10 57,381 812,343 14,157 10.20%
2010/11 57,756 939,575 16,268 11.20%
2011/12 54,172 952,560 17,584 10.80%
2012/13 54,464 959,982 17,626 8.10%
2013/14 54,762 944,918 17,255 6.70%
2014/15 54,786 956,180 17,453 9.50%
2015/16 55,231 932,800 16,889 7.70%
2016/17 54,984 960,740 17,473 6.10%
2017/18 55,267 972,350 17,594 4.30%
Sources:(1) California State Department of Finance
(2) Office of Economic Development HDL Coren & Cone and based on the last available census.
(3) State of California Employment Development Department
Demographic and Economic Statistics
Last Ten Calendar Years
CITY OF ROSEMEAD
126
CITY OF ROSEMEAD
Principal Employers
Current Year and Nine Years Ago
2018 2009
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment 1 Employees Employment
Southern California Edison 1 2,700 10.98%- 0.00%
Garvey School District 2 834 3.39%- 0.00%
Wal-Mart 3 482 1.96%- 0.00%
Rosemead School District 4 420 1.71%- 0.00%
Panda Restaurant Group, Inc.5 400 1.63%- 0.00%
Target 6 350 1.42%- 0.00%
Hemetic Seal Corporation 7 150 0.61%- 0.00%
Olive Garden 8 116 0.47%- 0.00%
Double Tree 9 120 0.49%- 0.00%
Don Bosco Tech 10 92 0.37%- 0.00%
127
CITY OF ROSEMEAD
Function 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General government 16 22 19 15 13 12 12 11 13 18
Public safety 1 39 42 42 33 15 20 18 20 21 23
Community
development 18 23 23 7 8 8 7 8 8 9
Public Works n/a n/a n/a 26 22 23 23 21 24 26
Parks and recreation 135 112 99 68 81 86 80 83 109 118
Total 208 199 183 149 139 149 140 143 175 194
1 The City of Rosemead contracts with the Los Angeles County Sheriff's Department for all police services
with the exception of parking control and crossing guards which are provided by City personnel.
1 The City of Rosemead is part of the Los Angeles County Fire Protection District which provides fire
fighting, fire prevention, and plan check services for the City.
Source: City Finance Department
Full-time and Part-time City Employees
Last Ten Fiscal Years
by Function
128
2009 2010 2011 2012 2013
Police:
Arrests 1,478 1,733 1,888 1,842 1,186
Parking citations issued 10,517 8,450 7,515 7,797 8,765
Fire:
Number of emergency calls 2,959 2,853 2,745 2,928 2,785
Inspections 2,093 2,137 1,845 2,066 2,012
Public works:
Street resurfacing (miles)2.8 3.5 3.5 3.6 0.9
Parks and recreation:
Number of recreation classes 397 727 617 519 638
Number of facility rentals 453 236 1,786 3,261 3,124
Source: City of Rosemead
Operating Indicators
Last Ten Fiscal Years
by Function
CITY OF ROSEMEAD
129
2014 2015 2016 2017 2018
1,356 1,585 1,339 1,046 1,256
16,110 7,863 8,047 7,676 8,086
2,823 3,212 3,352 3,206 3,822
2,026 2,793 2,564 2,311 2,430
1.6 0.6 1.0 0.7 0.8
724 839 871 873 707
4,005 2,607 3,070 6,226 3,679
130
CITY OF ROSEMEAD
Capital Asset Statistics
Last Ten Fiscal Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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)77.55 77.55 77.55 77.55 77.55 77.55 77.55 81.90 81.90 81.80
Streetlights 2,712 2,712 2,712 2,712 2,712 2,712 2,712 2,712 2,712 2,511
Traffic signals 42 42 42 42 42 42 42 41 42 42
Parks and recreation:
Parks 10 10 10 10 10 10 10 10 10 11
Community centers 2 2 2 2 2 2 2 2 2 2
by Function
131