HomeMy Public PortalAbout08) 7E Comprehensive Annual Financial Reports Year Ended 2018-06-30AGENDA
ITEM ?.E.
ADMINISTRATIVE SERVICES DEPARTMENT
MEMORANDUM
DATE: February 19 , 2019
TO: The Honorable City Council
FROM: · · · Bryan Cook, City Manager 1f
. . .· ~.Y.:, Susan Paragas, Administrative Services Director .
I,
SUBJECT: COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR
' :ENDED JUNE 30, 2018
RECOMMENDATION:
It is recommended that the City Council consider the recommendation from the Audit
Committee to receive and file the following reports:
1. Comprehensive Annual Financial Report (CAFR) for the year ended June 30 , 2018
(Attachment "A");
2. Single Audit Report for the year ended June 30, 2018 (Attachment "B");
3 . Independent Accountants' Report on Applying Agreed-Upon Procedures Related to
the ArtiQie Xlll-8 Appropriations Limit Calculation (Gann Limit) (Attachment "C"); and
4 . Auditor's Communication to the City (Attachment "D").
BACKGROUND:
1. In November 1979, Proposition 4 was approved by the voters adding Article XIIIB,
also known as the Gann Limitation, to the State Constitution to ensure that limits
were placed on all state and local government appropriations . These
appropriations calculations must be approved by the City Council on an annual
basis.
2. In June 1990, the voters of Cali'fornia approved Proposition 111 which revised
the annual adjustment factors applied to the limit and each year thereafter.
City Council
February 19, 2019
Page 2 of 5
3. On June 20, 2017, the City Council adopted Resolution No. 17-5263 confirming the
factors used for calculating the annual appropriations limit for the Fiscal Year (FY)
2017-18 City Budget.
4. On July 18, 2018, the Administrative Services Department received notice from the
Government Finance Officers' Association (GFOA) that the City received the
Excellence in Financial Reporting Award program for its FY 2016-17 CAFR.
5. On, January 25, 2019, the Audit Standing Committee (i.e. Councilmember Chavez and
Councilmember Yu) met with City staff and audit staff from Vavrinek, Trine, Day &
Company, LLP (VTD) and discussed the results of the field work and audit.
ANALYSIS:
Financial Reporting
A CAFR is a set of United States government financial statements comprising the
financial report of a state, municipal or other governmental entity that complies with the
accounting requirements, (i.e., Generally Accepted Accounting Principles (GAAP)),
created and circulated by the Governmental Accounting Standards Board (GASB).
The CAFR accounting structure provides for standardization of financial reporting. All
levels of government including federal, state, local and municipal, produce a CAFR to
document an accurate picture of institutional funds, enterprise or financial holdings,
assets and total investment incomes for those government and nongovernmental entities
using the report.
Single Audit
In addition, as a recipient of federal grant funds in past years, the City has been required to
be in compliance with the requirements of the Office of Management and Budget Circular
A-133, Audits of States, Local Governments and Non-Profit Organizations. The process, to
ensure that the City is in compliance with this Circular, commonly known as the "Single
Audit". For the FY 2017-18, the City received in excess of$750,000 in federal grant monies,
therefore a Single Audit and corresponding reports was necessary.
Auditors
It is industry standard to request proposals from qualified Certified Public Accounting (CPA)
firms for an initial three-year period to audit its financial statements, with the option to
renew the contract for an additional two fiscal years, for a total of five years. The City
selected VTD in the spring of 2016 for auditing services beginning with the fiscal year
ending June 30, 2016, and anticipates contracting with them for auditing services for the
next two fiscal years. A separate request for a contract extension will come to the City
Council in the spring.
City Council
February 19, 2019
Page 3 of 5
Gann Limit and Other Reports
Article XIII-B (Gann Limit) provides limits to the amount of tax proceeds state and local
governments can spend each year. The limit for any fiscal year is equal to the previous
year's limit, adjusted for population changes and the change in the U.S. Consumer Price
Index or California per capital personal income, whichever is less. A review of the City's
calculations is required by State law and is included as Attachment B. In addition, the
auditors are required by the Statement of Auditing Standards (SAS) to prepare
independent report on internal controls over financial reporting and a schedule of findings
and responses. These documents are included as Attachment C and D respectively.
Audit
VTD has issued an unmodified ("clean") opinion on the City financial statements for the year
ended June 30, 2018. The City also provides a narrative introduction, overview and analysis
of the CAFR in the form of Management's Discussion and Analysis (MD&A). It can be found
immediately following the independent auditors' report.
The City's net position increased by $10,480 from $68.568 million (restated) as of June
30,2017, to $68.578 million as of June 30,2018 as a result of this year's operations. Total
revenues from all sources was $21.3 million and the total cost of all City programs was
$20.3 million. The City's total long-term liabilities increased by $2.7 million during the
current fiscal year. The key factors in this increase are the CaiPERS pension liability ($1.1
million) and Other Post-Employment Benefits (OPEB) liability ($1.6 million).
The General Fund revenues of $14.8 million exceeded General Fund expenditures of
$14.5 million which provided for an excess of revenues over expenditures of $0.3 million.
Further, after the net transfers out, primarily for capital projects, the General Fund realized
an increase in fund balance of $33,872. Primary revenue sources for this fund are sales
tax, property tax and motor vehicle in lieu. The General Fund is responsible for general
services of the City which includes public safety, public works, community development,
community services and administration. The largest expenditure is for public safety, which
was $5.5 million for FY 2017-18.
GFOA Excellence in Financial Reporting Award
Staff once again submitted the FY 2017-18 CAFR to the GFOA for the Excellence in
Financial Report Award and is awaiting the result. The GFOA recognizes innovative
programs, contributions to the practice of government finance that exemplify outstanding
financial management. The award stresses practical, documented work that offers
leadership to the profession and promotes improved public finance.
Audit Standing Committee
For greater transparency and accountability, the City Council appointed an Audit Standing
Committee (Committee), making it directly responsible for monitoring the work performed
by the independent auditor. As outlined in the Audit Committee Charter, also adopted by
the City Council, the responsibilities of the Audit Standing Committee include:
City Council
February 19, 2019
Page 4 of 5
• Assisting the City Council in monitoring, overseeing and assessing the City's:
:» Accounting and financial reporting processes;
:» Quality and integrity of the City's financial statements, including audits of
the financial statements;
:» Qualifications, independence and performance of the independent auditor;
:» Compliance with applicable legal and regulatory financial accounting
requirements; and
:» Management's ability to evaluate adequacy of internal controls and capably
identify and control risks posed by its current and planned activities.
• Providing an avenue for communication among the independent auditors, City
management and the City Council.
The Committee also has such other duties as set forth in this charter and as directed by
the City Council. The Committee met on January 25, 2019 to discuss the result of the audit,
thus, completing their due diligence as outlined in the Committee Charter and has brought
forward their recommendation to receive and file the CAFR for the year ended June 30,
2018. The Committee will continue to meet throughout this year as well, with staff reporting
back to the Audit Committee.
CITY STRATEGIC GOALS:
Approval to receive and file the CAFR for FY 2017-18 will further City's Strategic Goal to
promote Good Governance.
FISCAL IMPACT:
This action of receiving and filing the CAFR does not have a fiscal impact on the FY 2018-
19 City Budget. However, staff has begun the mid-year budget analysis and will be
incorporating the results of actual spending in the FY 2017-18, as reflected in the CAFR, in
the FY 2018-19 Mid-Year Budget Report, which will be presented to City Council on
February 19, 2019.
City Council
February 19, 2019
Page 5 of 5
ATTACHMENTS:
A. Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2018
B. Single Audit Report for the year ended June 30, 2018
C. Independent Accountants' Report on Applying Agreed-Upon Procedures Related to
the Article XIII-B Appropriations Limit Calculation
D. Auditor's Communication to the City Council
City of Temple City, California
Comprehensive Annual Financial Report
Year Ended June 30, 2018
Prepared by:
ADMINISTRATIVE SERVICES DEPARTMENT
Susan Paragas
Administrative Services Director
CITY OF TEMPLE CITY, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2018
SUPPLEMENTARY SCHEDULES
Major Capital Projects Fund
TABLE OF CONTENTS
PAGE
Description of Major Capital Projects Fund .................................................................. 69
Schedules of Revenues, Expenditures and Changes in Fnnd Balances-
Budget and Actual:
Capital Improvements .............................................................................................. 70
Nonmajor Governmental Funds
Combining Balance Sheets ............................................................................................ 71
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances ............................................................................................................. 72
Nonmajor Special Revenue Funds
Description ofNonmajor Special Revenue Funds ........................................................ 73
Combining Balance Sheet ............................................................................................. 75
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...... 81
Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual
Permanent Fund ............................................................................................................. 87
Traffic Safety Fund ....................................................................................................... 88
COPS Fund .................................................................................................................... 89
Public Transpotiation-Prop A Fund ............................................................................ 90
Public Transpmiation-Prop C Fund ............................................................................ 91
Used Oil Fund ............................................................................................................... 92
State Gas Tax Fund ....................................................................................................... 93
Traffic Congestion Relief-Section 2181 Fund ............................................................. 94
Asset Seizure Fund ........................................................................................................ 95
CDBG Fund ................................................................................................................... 96
Air Quality Improvement Fund ..................................................................................... 97
Measure R Fund ............................................................................................................ 98
Sewer Reconstruction Fund ........................................................................................... 99
Surface Transpotiation Program -Local Fund ........................................................... I 00
Road Maintenance Rehab Act (RMRA) Fund ............................................................ I 0 I
1992/1996 Park Bond Fund ......................................................................................... 102
Measure M Fund ........................................................................................................ I 03
State Recycling Fund ................................................................................................. I 04
Park Acquisition Fund ................................................................................................. I 05
Lighting and Landscape District Fund ........................................................................ I 06
Bicycle Transportation Account .................................................................................. I 07
9701 LAS TUNAS DRI VE • TEMPLE CITY • CALIFORNIA 91780-2249 • (626) 285-2171
January 31,2019
To the Honorable City Council,
The Comprehensive Annual Financial Report (CAFR) of the City of Temple City ("City") for the year
ended June 30, 2018, is hereby submitted as mandated by applicable State of California statues.
These statues require that the City annually issue a report on its financial position and activity, and
that an independent firm of certified public accountants audit this report. Responsibilities for both the
accuracy of the data and the completeness and fairness of the presentation, including all disclosures
rests with the City's management. The information in this report is intended to present the reader with
a comprehensive view of the City's financial position and the results of its operations for the fiscal year
ending June 30, 2018, along with additional disclosures and financial information designed to enab le
the reader to gain an understanding of the City's financial activities.
Vavrinek, Trine, Day & Company, LLP, Certified Public Accountants, have issued an unmodified
("clean") opinion on the City's financial statements for the year ended June 30, 2018. The independent
auditor concluded, based upon the audit that the City's financial statements for the fiscal year ended
June 30, 2018 are fairly presented In conformity with generally accepted accounting principles (GAAP).
The auditor's report is presented as the first component of the financial section of this report. Generally
accepted accounting principles also require that management provide a narrative introduction,
overview and analysis of the basic financial statements in the form of Management's Discussion and
Analysis (MD&A). It can be found following the independ~nt auditor's report.
PROFILE OF THE GOVERNMENT
The City is centrally located in the west San Gabriel Valley approximately 13 miles east of downtown
Los Angeles and is in Los Angeles County. The City was incorporated on May 25, 1960 under the
general laws of the State of California. On April16, 1971, the City adopted Resolution No. 71-1084
declaring it a charter city. The City is approximately 3 .85 square miles and is surrounded by the cities
of Arcadia, San Gabriel, El Monte, Rosemead and unincorporated portions of Los Angeles County.
The 2010 U.S . Census Bureau indicates a total population of 35,558. The City is predominately a
residential community with over 10,000 residential parcels. The City is a charter city and operates
under the Council -Manager Form of government and contracts for many of its public services
including law enforcement. ·
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Planning Parks & Transportation &
Recreation City Attorney City Manager Public Safety Youth Committee Commission Commission Commission
Management Administrative Community Parks &
Services Services Development Recreation
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vii
VAVRINEK, TRINE, DAY~ CO., LLP
Certified Public Accountants
VALUETHE ~
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and the Mem bers of the C ity Council
C ity of Temple City, California
Report on tbe Financial Statements
We have audi ted the accompanying financ ial s tat ements of t he governmental activities, each major fund, and the
aggregate remaining f und inform ati on of the C ity of Temple C ity , California (City), as of and for t he year ended
June 30, 20 18, and the related notes to the fi nancial statements, which coll ectively comprise the City's basic
financial statements as li s ted in the table of contents.
Management's R esponsibility for the Financial Statements
Management is respons ible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in th e United States of Ameri ca; this includes the des ign ,
implementation, and mainte nance of internal co ntrol relevant to the preparati on and fair presentation of financia l
statements that are free from material misstatement, whether due to fraud or error.
A uditors' R espon s ibility
Our responsib ili ty is to expre ss opi ni ons on th ese fi nancial statements based on ou r audit. We conducted our audit
in accordan ce with audi t ing standards generally accepted in the Un ited States of America an d the s tandards
applicable to financ ia l audits contained in Government Auditing Standards, issued by the Comptrolle r General of
the United States. Those standards require that we plan and perform the audit to obtain reasonab le assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and d isclosures in the
financial statements. The procedures selected depend on the audito r's j udgment, including the assessment of the
ri s ks of material mi sstatement of th e financ ial statements, whether due to fraud o r error. I n making those ri sk
assessments, the auditor con s iders internal control rel evant to the entity 's preparation and fair presentation of the
financial statements in o rder to design aud it procedures that a re appropriate in th e c ircumstances, 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 s ignificant acco unt ing estimates made by management, as well as evaluating the overall
presentation of the financia l statements.
We believe that the audi t evidence we have obtained is s ufficient and appropriate to provide a bas is for our audit
opinions .
10681 Foothill Blvd., Suite 300, Rancho Cucamonga, CA 91730 P 909.466.4410 F 909.466.4431 W vtdcpa.com
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2019, on
our consideration of the City's internal control over financial repotting and on our tests of its compliance with
cettain provisions of laws, regulations, contracts, and grant agreements and other matters. The putpose of that
repmt is to solely 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 repotting 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 repmting and
compliance.
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Rancho Cucamonga/California
January 31,2019
3
City of Temple City
Management's Discussion and Analysis
June 30, 2018
Both of the government-wide financial statements report on functions of the City of Temple City that
are principally supported by taxes and inter-governmental revenues (governmental activities). The
governmental activities of the City of Temple City include general government, community
development, public safety, public works and community services.
Fund financial statements. A fund is a group of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City of Temple City, 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 Temple City are governmental 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 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 City's near-term financing
decisions. Both the governmental funds balance sheet and the statement of revenues, expenditures,
and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
Information is presented separately in the governmental funds balance sheet and in the statement of
revenues, expenditures, and changes in fund balances for the General Fund, Highway Safety
Improvement Program (HSIP) Fund, and Capital Improvement Fund, which are considered to be major
funds.
The City of Temple City adopts an annual appropriated budget. A budgetary comparison statement
has been provided to demonstrate compliance with this budget.
Proprietary funds. The City maintains only one category of a proprietary fund, an internal service
fund.
Fiduciary fund. The City also maintains an Agency fund to account for the resources held and
administered by the City of Temple City in a fiduciary capacity acting as the Successor Agency to the
former Temple City Redevelopment Agency.
Notes to basic 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.
Other information. In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the City's budget comparison
schedules for the General Fund and each major revenue fund and progress in funding its obligation
to provide pension benefits to its employees.
Government-wide Financial Analysis
Our analysis focuses on the net position and changes in net position of the City's governmental
activities for the fiscal year ended June 30, 2018.
5
City of Temple City
Management's Discussion and Analysis
June 30, 2018
The following chart shows the comparison of the three components of net position for Fiscal Years
2017-18 and 2016-17 (in millions):
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0 Net Investment
In Capital
Assets
Restricted Unrestricted Total Net
Position
Statement of Activities. Governmental activities increased the City's net position by $1.1 million for
FY 2017-18. The total revenue for the fiscal year is $21.3 million, which is an increase of $2.0 million
from the prior year. The total expenses decreased by $1.3 million to $20.3 million from the prior year
total of $21 .6 million. The following table presents the comparative revenue and expense data for fiscal
years ended June 30, 2018 and 2017.
7
City of Temple City
Management's Discussion and Analysis
June 30, 2018
Revenues by Source
Year Ended June 30,2018
Interest Income
butions &
grants
28.4%
Expenses of the governmental activities totaled $20 .3 million, wh ich is a decrease of $1.4 million or
-6 .3% over the prior year. Prior year's expenditure included additional General Government expenses
related retroactive CaiPERS costs related to part-time employees and Ch il dren 's Library expansion
and improvements.
Community se
18.1%
Expense by Activities
Year Ended June 30,2018
9
neral government
19.1%
City of Temple City
Management's Discussion and Analysis
June 30, 2018
General Fund Budgetary Summary
Revenues, Expenditures, and Changes in Fund Balance
June 30, 2018
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Taxes $ 6,060,000 $ 6,172,000 $ 6,173,068
Licenses and permits 1,535,000 1,654,000 1,653,939
Intergovernmental 4,300,000 4,463,000 4,463,317
Charges for services 1,474,260 1,492,260 1,491,537
Interest Income 200,000 246,000 131,324
Other revenue 695,000 855,000 928,801
Total revenue 14,264,260 14,882,260 14,841,986
EXPENDITURES
General government 3,664,205 4,055,160 3,822,997
Community development 1,665,390 1,774,590 1,756,459
Public safety 5,372,355 5,432,810 5,478,677
Public works 1,054,950 1,146,850 1,155,639
Community services 2,697,160 2,739,810 2,319,286
Total expenditures 14,454,060 15,149,220 14,533,058
Excess of revenues
over expenditures (189,800) (266,960) 308,928
OTHER FINANCING SOURCES (USES)
Transfers in 1,260,890 1,366,035 376,664
Transfers out (411,880) (411,880) (651,720)
Total other financing sources (uses) 849,010 954,155 (275,056)
Net change in fund balance 659,210 687,195 33,872
Fund Balance at Beginning of Year 13,123,220 10,811,685 18,896,939
Fund Balance at End of Year $13,782,430 $11,498,880 $18,930,811
Capital Assets and Debt Administration
Variance with
Final Budget
Positive
(Negative)
$ 1,068
(61)
317
(723)
(114,676)
73,801
(40,274)
232,163
18,131
(45,867)
(8,789)
420,524
616,162
656,436
(989,371)
(239,840)
(1 ,229,211)
(653,323)
8,085,254
$7,431,931
Capital Assets. As shown in the following table, as of June 30, 2018, the City of Temple City had
$52.3 million invested in capital assets, including land, buildings, improvements, furniture and
equipment, vehicles and infrastructure. See Note 6 for additional information.
11
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Activities
Year Ended June 30,2018
Functions/Programs
Governmental Activities:
General government
Community development
Public safety
Public works
Community services
Total Governmental Activities
Prog!:am Revenues
Charges Operating
for Contributions
E~enses Services and Grants
$ 4,135,881 $ 105,743 $
1,924,496 1,805,059 789,118
5,878,016 624,852 139,416
4,668,273 976,036 3,800,689
3 659 828 539 835 21,900
$ 20,266 494 $ 4 051 525 $ 4 751 123
General Revenues:
Taxes:
Property taxes
Property taxes in lieu of motor vehicle fees
Sales taxes
Transient occupancy taxes
Franchise taxes
Other taxes
Investment income
State revenue -other
Other revenue
Total General Revenues
Change in Net Position
Net Position, Beginning of Year, as restated (Note 14)
Net Position, End of Year
See accompanying notes to financial statements.
14
Net (Expense)
Revenue and Change
in Net Position
Capital
Contributions Governmental
and Grants Activities
$ $ (4,030,138)
669,681
(5, 113, 748)
1,295,350 1,403,802
(3,098,093}
$ 1 295 350 (I 0, 168,496)
3,301,789
4,463,316
2,146,888
61,271
557,594
187,066
186,315
9,064
309,163
11 222 466
1,053,970
67 524,293
$ 68,578 263
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
CITY OF TEMPLE CITY, CALIFORNIA
Governmental Fnnds
Balance Sheet
Jnne 30, 2018
ASSETS
Assets
Cash and investments
Accounts receivable
Interest receivable
Due from other funds
Due from other governments
Due from Successor Agency
Prepaid items
Loans receivable
Total Assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities
Accounts payable
Accrued payroll
Due to other funds
Refundable deposits
Total Liabilities
Deferred Inflows of Resources
Unavailable revenues
Fund Balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
See accompanying notes to financial statements.
General
$ 19,265,095
271,604
7,401
1,234,016
692,532
25,518
128,670
59,375
$ 21,684,211
$ 1,353,151
48,234
1,210,600
2,611,985
141,415
128,670
3,500,000
10,589,004
4,713,137
18 930,811
$ 21,684,211
16
$
$
$
$
Special
Revenue Fund
HSIP
871,970
871,970
871,970
871,970
871,970
CITY OF TEMPLE CITY, CALIFORNIA
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
June 30, 2018
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets net of accumulated depreciation have not been included as fmancial
resources in governmental fund activity.
Capital assets
Accumulated depreciation
Long-term liabilities have not been included in the governmental funds
Compensated absences
Net OPEB liability
Net pension liability
Certain accounts and intergovernmental receivables are not available to pay for
current-period expenditures and, therefore, are reflected as deferred inflows of
resources in the governmental funds
Deferred outflows of resources related to perisions
DefeiTed inflows of resources related to pensions
Deferred outflows of resources related to OPEB
Deferred inflows of resources related to OPEB
The internal service fund is used by management to charge the costs
of self~ insurance activities to individual funds. The cash and investments
of the internal service fund are included in governmental activities in
the statement of net position because it primarily services governmental
activities of the City.
Net position of governmental activities
See accompanying notes to financial statements.
18
$ 27,449,337
70,382,745
(18,075,948)
(264, 184)
(5,690, 188)
(8,041,060)
141,415
2,480,080
(439,051)
229,963
(50,095)
455,249
$ 68,578,263
CITY OF TEMPLE CITY, CALIFORNIA
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2018
Capital
Project
City-Wide Nonmajor
Capital Governmental
Improvement Funds Total
$ $ 1,436,525 $ 7,609,593
1,653,939
3,899,574 9,234,861
201,908 1,693,445
3 611,077
60,820 192,144
31,686
70,500 356,541
5,669 330 21,383 286
3,822,997
7,400 1,763,859
729 5,479,406
1,518,047 1,726,352 4,400,038
740,808 3,060,094
I ,205,571 1,205,571
2,723,618 2,475,289 19,731,965
(2, 723,618) 3,194041 I 651,321
2,723,618 334,390 3,434,672
(1,841,901) (3,434,672)
2,723,618 (1,507,511)
1,686,530 1,651,321
6,831,996 25,798,016
$ $ 8,518526 $ 27 449,337
See accompanying notes to financial statements.
20
PROPRIETARY FUND
FINANCIAL STATEMENTS
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Net Position
Proprietary Fund
June 30, 2018
ASSETS
Current assets:
Cash and investments
Total Assets
NET POSITION
Unrestricted
Total Net Position
See accompanying notes to financial statements.
$
$
23
Self Insurance
Internal
Service Fund
455,249
455,249
455,249
455,249
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Cash Flows
Proprietary Fnnd
Year Ended June 30, 2018
Cash flows from operating activities:
Cash received for operating activities
Net cash provided by operating activities
Change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Reconciliation of operating income to net cash
provided by operating activities:
Operating income
Net cash provided by operating activities
Noncash investing. capital. and fmancing activities:
There were no significant noncash investing, capital, and fmancing activities during the year
ended June 30, 2018.
See accompanying notes to financial statements.
25
Self Insurance
Internal
Service Fund
$ 52,882
52,882
52,882
402,367
$ 455,249
$ 52,882
$ 52,882
CITY OF TEMPLE CITY, CALIFORNIA
Description ofFidnciary Fund
Year Ended June 30, 2018
Successor Agency Private-Purpose Trust Fund
To account for the resources held and administered by the City of Temple City in a fiduciary capacity acting as
tbe Successor Agency to the former Temple City Redevelopment Agency.
See accompanying notes to financial statements.
26
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Year Ended June 30,2018
ADDITIONS
Tax increment
Total Additions
DEDUCTIONS
Administration
Professional fees
Interest expense and fiscal charges
Total Deductions
Changes in Net Position
Net Position -Beginning of Yeal'
Net Position -End of Year
See accompanying notes to financial statements.
28
Successor Agency
Private-purpose
Trust Fund
$ 905,605
905 605
31,668
596
112 739
145,003
760,602
(2,799,874)
$ {2,039,2722
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2018
NOTE I-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description ofthe Reporting Entity
The City of Temple City, Califomia (City) was incmporated on May 25, 1960, under the general laws of the State
of California. On April 16, 1971, the City adopted resolution number 71-1084 declaring itself a charter city. The
City operates under the Council -Manager form of government.
The City provides the following services as authorized by its general laws: Public Safety, Highways and Streets,
Health and Sanitation, Cultural and Park Facilities, Public Improvements, Planning, Recreation and General
Administrative Services.
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, 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.
All of the City's component units are considered to be blended component units because in all cases the City
Council serves as the governing board for each component unit. 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 interfund data of the primary government. Management of the City has operational responsibility for each
component unit, as it manages the activities of each component unit in a similar manner in which it manages other
of its own programs and activities. The following organization is considered to be a component unit of the City:
City of Temple Citv Housing Authoritv
The City of Temple City Housing Authority (Housing Authority) was established on November l, 2005, pursuant
to the State of California Health and Safety Code 34200 entitled, "Housing Authority Law." The purpose of the
Housing Authority is to provide safe and sanitary dwelling accommodations to persons of low income in the City.
Even though it is legally separated, it is reported as if it is part of the City because the City Council also serves as
the governing board of the Housing Authority and the City has operational responsibility of the Housing
Authority. No separate financial statements are issued for the Housing Authority.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities)
repot1 information on all of the nonfiduciary activities of the primary government and its component units. For
the most pm1, the effect of interfund activity has been removed from these statements. The City's governmental
activities are suppm1ed by taxes and intergovernmental revenues.
29
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2018
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing set:vices and producing and delivering goods in connection with a
proprietary fund's principal ongoing operations. The principal operating revenue of the Intemal Service Fund is
reimbursements relating to self-insurance. Operating expenses for the Internal Service Fund include the cost of
insurance premiums relating to the services provided. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
Although the City's internal service fund is reported as a proprietary fund in the fund financial statements, it is
incorporated into governmental activities in the government-wide financial statements.
Fund Types
The basic accounting and repm1ing entity is a "fund". A fund is defined as an independent fiscal and accounting
entity with a self-balancing set of accounts, recording resources, related liabilities, obligations, reserves and
equities segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance
with special regulations, restrictions or limitations.
The accounting records ofthe City are organized on the basis ofthe various fund types as follows:
GOVERNMENTAL FUND TYPES:
General Fund
The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are
not allocated by law or contractual agreement to some other fund are accounted for in this fund. Expenditures of
this fund include the general operating expenses and capital improvement costs which are not paid through other
funds.
Special Revenue Funds
The Special Revenue Funds are used to account for proceeds of specific revenue sources that are restricted by law
or administrative action for specific purposes.
Capital Projects Funds
Capital Projects Funds are used to account for financial resources to be used for the acquisition, construction or
improvement of major capital facilities and infrastructure.
Permanent Fund
The Permanent Fund is used to account for financial resources that are legally restricted to the extent that only
earnings, and not principal, may be used to support the City or its citizeruy.
31
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2018
NOTE i-SUMMARY OF SiGNiFiCANT ACCOUNTiNG POLiCiES (CONTiNUED)
Cash and Investments (Continued)
Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal
year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon
the liquidation or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each 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, except for interest income (associated with funds not legally required to receive pooled investment
income) that has been assigned to and recorded as revenue of the general fund, as provided by California
Government Code Section 5364 7.
Governmental Accounting Standards Board ("GASB") Statement No. 72, Fair Value Measurements and
Application, provides guidance for determining a fair value measurement for reporting purposes, applying fair
value to investments, and disclosures related to a hierarchy established by generally accepted accounting
principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure fair
value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other
observable inputs; Level 3 inputs are significant unobservable inputs.
Property Tax Calendar
The County of Los Angeles assesses, levies, and collects property taxes for the City. Pro petty taxes levied for the
year ended June 30, 2018 were due and payable in two installments on November I and Febmmy I and became
delinquent on December I 0°' and April 1 O'", respectively. At the date of incorporation, the City elected to be a
no/low propetty tax city as an incentive for current and prospective residents to reside in the City.
The propetty tax calendm· is as follows:
Lien Date:
Levy Date
Due Date:
Delinquent Date:
January I
July I
First installment-November I
Second instalhnent-February 1
First instalhnent -December 10
Second instalhnent -April 10
Taxes are collected by Los Angeles County and are remitted to the City periodically. Dates and percentages are
as follows:
December 10
Janumy 15
April to
May 15
July 31
30% Advance
Collection No. I
10% Advance
Collection No. 2
Collection No. 3
33
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2018
NOTE I-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Employee Leave Benefits
Vacation time begins to accumulate as of the first day of employment to a maximum of 240 hours for non-
represented employees and 320 hours for represented employees. Sick leave accumulates at the rate of 8 hours
per month without limit. Employees are not entitled to compensation for accrued sick time upon separation from
the City.
Claims and Judgments
The City records a liability for material litigation, judgments, and claims (including incurred but not reported
losses) when it is probable that an asset has been impaired or a material liability has been incurred prior to year-
end and the probable amount ofloss (net of any insurance coverage) can be reasonably estimated.
Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions,
and pension expense, information about the fiduciary net position of the City's California Public Employees'
Retirement System (CalPERS) plans and additions to/deductions from the Plans' fiduciary net position have been
determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Other Post-employment Benefits (OPEB)
For the purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB,
and OPEB expense, information about the fiduciary net position of the City's Retiree Benefits Plan (OPEB Plan)
and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis
as they are reported by the OPEB Plan. For this purpose, the OPEB Plan recognizes benefit payments when due
and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market
investments and patticipating interest-earning investment contracts that have a maturity date at the time or
purchase of one year or less, which are repotted at cost.
Fnnd Balance
Government Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Government
Fund-type Definitions, defines fund balance as the difference between the assets, liabilities and deferred inflows
repmted in the City's governmental funds. There are generally limitations on the purpose for which all or a
portion of the resources of a governmental fund may be used. The force behind these limitations can vruy
significantly, depending upon their source. Consequently, the fund balance repmted in the annual financial
statements is categorized into five components whereby each component identifies the extent to which the City is
bound to honor constraints on the specific purposes for which amounts in the fund can be spent. The five
components of fund balance aJ'e as follows:
• Nonspendable: Resources that are I) not in spendable form, such as inventories, prepayments, long-term
receivables, or non-financial assets held for resale, or 2) required to be maintained intact such as an
endowment.
35
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2018
NOTE I-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Use of Estimates
The preparation of financial statements in confmmity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of
revenues and expenses, during the reporting period. Actual results could differ from those estimates.
Pronouncements Adopted in the Current Year
GASB Statement No. 75-In June 2015, GASB issued Statement No. 75, Accounting and Financial Reporting
for Postemployment Benefits Other Than Pensions (OPEB). Statement 75 establishes new accounting and
financial reporting requirements for governments whose employees are provided with OPEB, as well as for
certain nonemployer governments that have a legal obligation to provide financial support for OPEB provided to
the employees of other entities. This Statement is effective for reporting periods beginning after June 15, 2017.
The City implemented this Statement effective July I, 2017.
Pronouncements Effective in Future Years
The City is currently evaluating the potential impact of the following issued, but not yet effective, accounting
standards.
GASB Statement No. 83 -In November 2016, GASB issued Statement No. 83, Certain Asset Retirement
Obligations. The objective of this Statement is to provide financial statement users with information about asset
retirement obligations that were not addressed in GASB Standards by establishing uniform accounting and
financial reporting requirements for these obligations. This Statement is effective for reporting periods beginning
after June 15,2018.
GASB Statement No. 84-In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective
of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and
financial reporting purposes and how those activities should be repmted. This Statement is effective for reporting
periods beginning after December 15,2018.
GASB Statement No. 87 -In June 2017, GASB issued Statement No. 87, Leases. The objective of this
Statement is to better meet the information needs of financial statement users by improving accounting and
financial reporting for leases; enhancing the comparability of financial statements between governments; and also
enhancing the relevance, reliability (representational faithfulness), and consistency of information about the
leasing activities of governments. This Statement is effective for repmting periods beginning after December 15,
2019.
GASB Statement No. 88-In April 2018, GASB issued Statement No. 88, Certain Disclosures Related to Debt,
Including Direct Borrowings and Direct Placements. The objective of this Statement is to improve consistency in
the information that is disclosed in the notes to government financial statements related to debt, including direct
borrowings and direct placements, and to provide financial statement users with additional essential information
about debt. This Statement is effective for reporting periods beginning after June 15, 2018.
37
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2018
NOTE 3-CASH AND INVESTMENTS (CONTINUED)
Cash and investments as of June 30,2018 consist of the following:
Cash on hand
Deposits with financial institutions
Investments
Total Cash and Investments
$ 2,100
4,311,257
24,659,781
$ 28,973,138
Investments Authorized by the California Government Code and the City's Investment Policy
The accompanying table below identifies the investment types that are authorized for the City by the California
Govermuent Code (or the City's investment policy, where more restrictive). The table also identifies certain
provisions of the California Govermuent Code (or the City's investment policy, where 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 the bond trustee that are governed by the provisions of debt agreements of the City, rather
than the general provisions of the California Govermuent Code or the City's investment policy.
Authorized Maximum Maximum
Investment Types by City's Maximum Percentage Investment
Authorized by State Law Policy Maturity of Portfolio In One Issuer
Local Agency Bonds No 5 years None None
U.S. Treasury Obligations Yes 5 years None None
U.S. Agency Secmities Yes 5 years None None
State of California Obligation No 5 years None None
Local Agency Obligation No 5 years None None
Banker's Acceptances* No 180 days 40% 30%
Commercial Paper** No 270 days 25% 10%
Cettificates of Deposit Yes 5 years 30% None
Repurchase Agreements No I year None None
Reverse Repurchase Agreements*** No 92 days 20% of base value None
Medium-Term Notes Yes 5 years 30% None
Mutual Funds**** No N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% None
Collateralized Bank Deposits Yes 5 years None None
Mortgage Pass-Througb Securities No 5 years 20% None
County Pooled Investment Funds Yes N/A None None
Local Agency Investment Fund (LAIF) Yes NIA None None
*
**
No more than 30% of surplus funds may be invested in Bankers Acceptances of any one comm~rcial bank.
Commercial paper issuers must be U.S. Corporations with $500 million plus in assets. Purchases may not represent
more than 10% of outstanding paper of an issuing corporation.
***
****
Reverse Repurchase Agreements must be made with primary dealers of the Federal Reserve Bank of New York and
the securities used for the agreements must have been held by the issuer for at least 30 days.
No more than 10% of the City's surplus funds may be invested in any one mutual fl;lnd.
39
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2018
NOTE 3-CASH AND INVESTMENTS (CONTINUED)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer
beyond that stipulated by the California Government Code. As of June 30, 2018, the investments in any one
issuer (other than U.S. Treasury Securities, mutual funds, and external investment pools) that represent 5 percent
or more of the City's total investments are as follows:
Issuer
Federal Home Loan Mortgage Corporation
Federal Home Loan Bank
Federal National Mortgage Association
Custodial Credit Risl<
Investment Type
Federal Agency Securities
Federal Agency Securities
Federal Agency Securities
$
Percent of
Amount Portfolio
5,604,904 23%
1,710,666 7%
1,444,216 6%
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 iu 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 depositmy regulated under state law (unless so
waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at
least II 0 percent of the total amount deposited by the public agencies. California law also allows financial
institutions to secure City deposits by pledging first trust deed mottgage notes having a value of 150 percent of the
secured public deposits.
41
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2018
NOTE 4-INTERFUND ACTIVITY
The following represents the interfund activity of the City for the year ended June 30, 2018:
Due From/To Other Funds:
Due from (receivable fund)
General Fund
General Fund
Total
Due to (payable ftmd) Amount
HSIP Fund $ 871,970
Non-major Governmental Funds 362,046
$ 1 234 016
The General Fund receivable from non-major governmental funds represents the elimination of negative cash
balances in the funds.
Transfers To/From Other Funds:
Transfer In
General Fund
Capital Improvement Fund
Nonmajor Governmental Funds
Total
Transfers Out
N onma jor Governmental Funds
General Fund
HSIP Fund
Nonmajor Governmental Funds
General Fund
Amount
$ 376,664
317,330
941,051
1,465,237
334,390
$ 3,434,672
Transfers to/from other funds are based on the budget funding sources that the City Council approved. The City
transfers monies from various funds to its City-wide Capital Improvement Fund and the General Fund for the
payment of certain capital projects such as Upgrade Traffic Signals on Temple City Blvd between El Camino Real
and Ellis Lane and Other Safety Improvements; Upgrade Traffic Signals Citywide and Install Other Safety
Improvements projects; and Street Resurfacing projects. The City also transfers monies between various funds for
projects related to trees and parkways and sewer line upgrades.
43
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2018
NOTE 6-CAPITAL ASSETS
Capital asset governmental activity for the fiscal year ended June 30, 2018 was as follows:
Balance Balance
Governmental Activities: Jul~ I, 2017 Additions Deletions June 30 2018
Capital assets not being depreciated:
Land $ 4,338,704 $ $ $ 4,338, 704
Land improvements 1,948,999 545,651 2,494,650
Construction in progress 505,315 1,529,598 2,034,913
Infrastructure:
Land rights relating to streets 8 465 941 8 465 941
Total 15,258 959 2 075 249 2 034 913 15 299 295
Capital assets being depreciated:
Buildings 7,369,364 73,805 7,443,169
Improvements 6,354,654 8,000 6,362,654
Furniture, fixtures and equipment 1,060,650 38,949 1,099,599
Vehicles 646,562 646,562
Infi·astructure:
Streets 35,083,585 35,083,585
Traffic signals 1,858,686 1,631,192 3,489,878
Bridges 958 003 958 003
Total 53 331 504 I 751 946 55 083 450
Less accumulated depreciation for:
Buildings 2,542,738 178,633 2,721,371
Improvements 2,853,609 154,737 3,008,346
Furniture, :fixtures and equipment 909,273 47,029 956,302
Vehicles 515,771 5,080 520,851
Infrastructure:
Streets 7, 759,835 784,543 8,544,378
T raffle signals 1,327,096 39,601 1,366,697
Bridges 958,003 958 003
Total 16 866,325 1,209,623 18 075 948
Capital assets being depreciated, net 36,465,179 542,323 37,007 502
Capital assets, nel $ 51 724 138 $ 2 617 572 $ 2 034 913 $ 52 306 797
Depreciation expense is charged to operations, as follows:
General government $ 160,108
Community development 106,177
Public safety 131,432
Public \Yorks 5,219
Community services 806 687
Total Depreciation Expense-Governmental Activities $ I 209 623
45
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2018
NOTE 8-DEFINED BENEFIT PENSION PLAN (CONTINUED)
The Plans' provisions and benefits in effect at June 30, 2018 are summarized as follows:
Hire Date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Miscellaneous Plan
Classic
Prior to
January I, 2013
2.5%@ 55
5 years of service
monthly for life
50-55
2.0% to 2.7%
8o/o
10.85%
PEPRA
On or after
January I, 2013
2%@62
5 years of service
monthly for life
52-67
1.0% to 2.5%
6.31%
6.91%
Contributions-Section 208!4(c) of the California Public Employees' Retirement Law requires that the employer
contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective
on July I'' following notice of a change in the rate. Funding contributions for the Plan are determined annually on
an actuarial basis as of June 30 by CalPERS. Beginning in fiscal year 2016, CalPERS collects employer
contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as
a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis.
The City's contributions to the pension plan were $700,176 for the year ended June 30, 2018.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions -As of
June 30, 20 18, the City rep01ted a net pension liability for its proportionate share of the net pension liability of the
Miscellaneous Plan in the amount of$8,041,060.
The City's net pension liability for the Plan was measured as the proportionate share of the net pension liability of
the collective cost-sharing plan. The City's net pension liability was measured as of June 30, 2017 and the total
pension liability 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 update 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 plan relative to the
projected contributions of all patticipating employers, actuarially determined. The City's proportionate share of
the net pension liability for the Plan as of June 30, 20 16 and 2017 was as follows:
Proportion-June 30, 2016
Propottion-June 30, 2017
Change -Increase (Decrease)
47
0.08004%
0.08108%
0.00104%
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2018
NOTE 8-DEFINED BENEFIT PENSION PLAN (CONTINUED)
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 20 II, including updates to salaty increase, mortality and retirement
rates. The Experience Study repmi can be obtained at CalPERS' website.
Change of Assumptions-The discount rate of 7.15 percent used for the June 30, 2017 measurement date was
decreased fi·om 7.65 percent used for the June 30, 2016 measurement date.
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 the 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. The tests revealed the assets would not run out. Therefore, the current 7.15 percent
discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-
term expected discount rate of 7.15 percent is applied to all plans in the Public Employees' Retirement Fund
(PERF). The cash flows used in the testing were developed assuming that both members and employers will
make their required contributions on time and as scheduled in all future years. 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 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 shmi-term and long-term market
return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical
returns of all the Public Employees Retirement Funds' asset classes (which inclndes the agent plan and two cost-
sharing plans or PERF A, B, and C funds), 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 PERF
fund. The expected rate of return was set by calculating the single equivalent expected return that atTived 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 equal to the single equivalent rate calculated above and rounded down to
the nearest one quarter of one percent.
49
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2018
NOTE 9-LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION (CONTINUED)
Self-Insurance Programs of the CJPIA
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 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 Liabilitv Program
Claims' are pooled separately between police and general government exposures. (I) 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.
For 2017-18, the CJPIA's pooled retention is $2 million per occurrence, with reinsurance to $20 million, and
excess insurance to $50 million. The CJPIA's reinsurance contracts are subject to the following additional pooled
retentions: (a) $2.5 million annual aggregate deductible in the $3 million in excess of$2 million layer, and (b) $3
million annual aggregate deductible in the $5 million in excess of $10 million layer. There is a third annual
aggregate deductible in the amount of $2.5 million in the $5 million in excess of $5 million layer, however it is
fully covered under a separate policy and therefore not retained by the CJPIA. The overall coverage limit for each
member, including all layers of coverage, is $50 million per occurrence. Costs of covered claims for subsidence
losses have a sub-limit of $40 million per occurrence.
Workers' Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (I) 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 CJPIA's pooled retention is $2 million per occurrence, with reinsurance to statutory limits under
Califomia 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.
51
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2018
NOTEJO-OTHERPOSTEMPLOYMENTBENEFITPLAN
Plan Description
The City of Temple City Retiree Healthcare Plan ("OPEB Plan") is an agent multiple employer defined benefit
healthcare plan with Public Agency Retirement Services (PARS). Benefits vary by hire date and employment
status. Benefits continue to dependents, including smviving spouses.
Benefits Provided
Employees who retire directly from the City under CalPERS are eligible to receive health care benefits covering
themselves and any qualified family members under the OPEB Plan. The City pays 100 percent of the cost of the
medical insurance premiums of the retired employees and 50 percent of the cost of the medical insurance
premiums of their family members.
Employees retired on or after April I, 2000 receive full dental and vision premiums. Dependent coverage for
dental and vision is available at the employee's expense.
Surviving spouses may receive the full premium with their dependents receiving 50 percent of the premium.
Employee Covered by Benefit Terms
At June 30, 2017, most recent valuation date, the benefit terms covered the following employees:
Inactive employees or beneficiaries currently receiving benefits payments
Inactive employees entitled to, but not yet receiving benefits payments
Active employees
Total
Contributions
29
37
66
The City establishes rates based on an actuarially determined rate. For the year ended June 30, 2018, the City's
expected contribution rate is 7.58 percent of covered-employee payroll. Employees pay the difference between
the benefit they receive and the monthly premium.
Net OPEB Liability
The City's net OPEB liability was measured as the total OPEB liability, less the OPEB Plan's fiduciary net
position. The net OPEB liability was measured as of June 30, 20 17, using an actuarial valuation as of June 30,
2017. A summary of principal assumptions and methods used to determine the net OPEB liability is shown below.
53
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30,2018
NOTE IO-OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
Changes in Net OPEB Liability
Increase (Decrease)
Total OPEB P Jan Fiduciary
Liability Net Position
Balance at June 30, 2017 $ 6,629,976 $ 1,251,579
Changes in the year:
Setvice Cost 228,759
Interest on the total OPEB liability 422,018
Contributions ~ employer -expected retiree benefit payments 172,603
Contributions -employer -implicit subsidy 40,290
Net investment income 133,506
Benefit payments, including refunds of employee contributions (172,603) (172,603)
Implicit rate subsidy fulfilled (40,290) (40,290)
Administrative expenses (7,413)
Net changes 437,884 126,093
Balance at June 30, 2018 $ 7,067,860 $ 1,377,672
NetOPEB
Liability
$ 5,378,397
228,759
422,018
(172,603)
(40,290)
(133,506)
7,413
311,791
$ 5,690,188
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate-The following presents the net OPEB
liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount
rate that is one percentage point lower (5.25 percent) or one percentage point higher (7.25 percent) follows:
Net OPEB Liability $
1% Decrease
(5.25%)
7,209,385
Discount Rate
(6.25%)
$ 5,690,188 $
1% Increase
(7.25%)
5,138,581
Sensitivity of the Net OP EB Liability to Changes in the Healthcare Cost Trend Rates -The following presents the
net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using
healthcare cost trend rates that are one percentage point lower (6.00 percent) or one percentage point higher (8.00
percent) than current healthcare cost trend rates follows:
Net OPEB Liability
1% Decrease
(6.00%
Decreasing to
2.94%)
$ 4,883,997
55
Discount Rate
(7.00%
Decreasing to
3.94%)
$ 5,690,188 $
1% Increase
(8.00%
Decreasing to
4.94%)
7,575,335
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2018
NOTE 11-FUND BALANCE CLASSIFICATIONS
Nonspendable
Prepaid items
Educational scholarship
Subtotal
Restricted
Community development
Public safety
Community services
Public works
Subtotal
Committed
Emergency I disasters
Liquidity
Local economic uncertainty
Subtotal
Assigned
Fleet management
Facilities management
Technology replacement
Economic development
Opportunities for one~time expenditures
Subtotal
Unassigned
Total
General
$ 128,670
128,670
50,000
2,000,000
1,450 000
3,500,000
400,000
2,895,275
53,392
3,027,973
4,212 364
10,589,004
4,713 137
$ 18,930 811
Nonmajor
Governmental
Funds Totals
$ 3,399 $ 132,069
171,150 171,150
174,549 303,219
1,456,105 1,456,105
384 384
167,000 167,000
6,720,488 6,720,488
8,343,977 8,343,977
50,000
2,000,000
1,450,000
3,500,000
400,000
2,895,275
53,392
3,027,973
4,212 364
10,589,004
4,713,137
$ 8,518,526 $ 27,449,337
On May 29, 2018, the City reaffirmed the committed and assigned fund balance classifications for the General
Fund. At June 30, 2018, the City had committed and assigned balances as follow, in accordance with the City's
adopted GASB 54 Fund Balance Policy.
Committed
Assigned
$3,500,000
$10,589,004
Any remaining fund balance at the close of the fiscal year will be designated as Unassigned.
57
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended Jnne 30, 2018
NOTE 13 -SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
(CONTINUED)
The annual requirements for repayment of principal and interest on the bonds payable outstanding as of June 30,
2018 are as follows:
Year Ending
June 30, PrinciQal
2019 $ 515,000
2020 530,000
2021 545,000
2022 565,000
2023 580,000
2024-2025 705,000
Total $ 3,440,000
Deficit Net Position
Interest
$ 96,741
80,241
63,249
45,672
27,510
18,519
$ 331,932
Total
$ 611,741
610,241
608,249
610,672
607,510
723 519
$ 3, 771 932
As of June 30, 2018, the Successor Agency Private-Purpose Trust Fund had a deficit net position of $2,039,272.
This will be reduced with future receipt of distributions from the Redevelopment Property Tax Trust Fund from
the County.
NOTE 14-RESTATEMENT OF NET POSITION
As discussed under Note 1, the City implemented GASB Statement No. 75 effective July 1, 2017. Refer to Note
10 for further disclosures related to the plan and related balances. As a result of the implementation, the City
restated beginning net position as noted below:
Beginning of year, as previously reported Net Position
Other Postemployment Benefit (OPEB) Obligation
Other Postemployment Benefit (OPEB) Liability
Deferred Outflows of Resources Related to OPEB
Beginning of year, as restated Net Position
Fallowing is the pro forma effect of the retroactive application:
Governmental Activities
Net OPEB Obligation
Net OPEB Liability
DefetTed Outflows of Resources Related to OPEB
59
June 30, 2017
Previously
Presented
$ (4,122,014)
Restatement
$ 4,122,014
5,378,397
212,893
Governmental
Activities
$ 68,567,783
4,122,014
(5,378,397)
212,893
$ 67,524,293
June 30,2017
Restated
$
5,378,397
212,893
CITY OF TEMPLE CITY, CALIFORNIA
Budget and Actual Comparison
General Fund
General Fund-This fund has been classified as a major fund and is used to account for all of the general revenues
of the City not specifically levied or collected for some special purpose, and for the expenditures related to the
rendering of general services by the City. The General Fund is used to account for all resources not required to be
accounted for in another fund. The budget-to-actual comparison for this fund has been presented in the
accompanying financial statements as required supplementmy information.
Special Revenue Funds
The Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for
a patticular pmpose. The following fund has been classified as a major fund and budget-to-actual comparison for
the fund has been presented in the accompanying financial statements as required supplementary information.
HSlP Fund -The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU), which was signed into law on August 10, 2005, established the Highway Safety Improvement
Program (HSIP) as a core Federal-aid program. The overall purpose of this program is to achieve a significant
reduction in traffic fatalities and serious injuries on all public roads through the implementation of infrastmcture-
related highway safety improvements.
60
CITY OF TEMPLE CITY, CALIFORNIA
Budgetary Comparison Schedule
General Fund
Year Ended June 30,2018
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Ammmts {Negative)
EXPENDITURES
General government:
City council $ 178,290 $ 179,790 $ 163,333 $ 16,457
City manager 835,280 1,100,735 956,804 143,931
City clerk 327,560 327,560 323,904 3,656
Accounting 624,580 624,580 591,241 33,339
City attorney 362,000 362,000 285,350 76,650
Support services 137,180 149,180 147,730 1,450
Insurance benefits 974,230 1,010,230 1,000,818 9,412
Ptrrchasing 225,085 254,085 315,089 (61,004)
Elections 47,000 38,728 8,272
Total general government 3 664,205 4,055,160 3,822997 232,163
Community development:
Planning 918,730 914,230 762,041 152,189
Housing 30,870 30,870 164,960 (134,090)
Building 715,790 829,490 829,458 32
Total community development 1 665,390 1,774,590 1,756,459 18,131
Public safety:
Law enforcement 4,329,020 4,353,620 4,467,463 (113,843)
Traffic engineering 37,310 52,810 48,204 4,606
Emergency services 153,540 171,095 162,150 8,945
Community preservation 532,500 535,300 509,368 25,932
Parking administration 319 985 319,985 291,492 28,493
Total public safety 5,372,355 5,432,810 5,478,677 (45,867)
Public works:
Parking facilities 100,630 103,630 96,137 7,493
Administration & engineering 684,420 728,420 722,822 5,598
General government buildings 269,900 314,800 336 680 (21,880)
Total public works 1,054,950 1,146,850 1,155,639 (8,789)
Commmtity services:
Recreation/human services 1,283,860 1,283,860 1,220,958 62,902
Parks -maintenance/facllities 1,413,300 1,455,950 1,098,328 357,622
Total community services 2,697,160 2,739,810 2319,286 420,524
Total expenditures 14,454,060 15,149,220 14533,058 616 162
Excess (deficiency) of revenue
over expenditures (189,800) (266,960) 308,928 575,888
OTHER FINANCING SOURCES (USES)
Transfers in 1,260,890 1,366,035 376,664 (989,371)
Transfers out (411,880) (411,880) (651,720) (239,840)
Total other frnancing sources (uses) 849,010 954,155 (275,056) (1,229,211)
Net change in fimd balances 659,210 687,195 33,872 (653,323)
Fund Balance at Beginning ofYear 13,123,220 10,811,685 18,896,939 8,085,254
Fund Balance at End of Year $ 13,782,430 $ 11,498,880 $ 18,930,811 $ 7,431,931
62
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Budgetary Comparison Schedule
Year Euded June 30, 2018
NOTE 1-BUDGETS AND BUDGETARY ACCOUNTING
The City adopts an annual budget prepared on the modified accrual basis for all of its governmental funds. The
City Manager or his designee is authorized to transfer budgeted amounts between the accounts of any program.
Revisions that alter the total appropriations of any program or fund are approved by the City Council. Prior year
appropriations lapse unless they are appropriated through the formal budget process. Expenditures may not
legally exceed appropriations at fund level. Reserves for encumbrances are not recorded by the City.
64
CITY OF TEMPLE CITY, CALIFORNIA
Schedule of Contributions
Last Ten Years*
As of June 30, 2018
Actuarially determined contributions
Contributions in relation to the actuarially determined contt·ibutions
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation.
66
2018 2017 2016 2015
$ 700,176 $ 629,o63 $ 556,380 $ 444,577
700,176 629063 556 380 444,577
$ $ $ $
$ 3,534,081 $ 3,324,680 $ 2,952,148 $ 2,785,261
19.81% 18.92% 18.85% 15.96%
CITY OF TEMPLE CITY, CALIFORNIA
Schedule of OPEB Contributions
Last Ten Years*
As of June 30, 2018
Actuarially determined contribution
Contributions in relation to the actuarially determined contributions
Contnbution deficiency (excess)
Covered~employee payroll
Contributions as a percentage of covered payroll
Notes to Schedule
Valuation date:
Methods and assumptions used to
determine contribution rates:
Actuarial cost method
Asset valuation method
Inflation
Healthcare Trend Rate
PEMHCA Trend Rate
Investment rate of return
Retirement age
Mortality
6/30/2016
Entty Age Normal Cost Method
Market value
2.50%
7.00%, trending down to 3.94%
3.00%
6.25%
CalPERS Rates
Ca!PERS Rates
2018*
$ 311,743
(229,963)
$ 81,780
3,302,589
9.44%
Other information The actuarially detetmined contribution takes into account the implicit subsidy
* -Fiscal year 2018 was the 1st year of implementation.
68
MAJOR CAPITAL
PROJECTS FUND
CITY OF TEMPLE CITY, CALIFORNIA
Budgetary Comparison Schedule
City-Wide Capital Improvement Fund
Year Ended June 30, 2018
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative}
EXPENDITURES
Capital outlay:
Parks-maintenance/facilities $ 60,000 $ 68,000 $ 60,361 $ 7,639
Traffic signal maintenance 2,264,550 2,264,550 1,447, 793 816,757
Street maintenance 2,181,500 2,493,065 1,016,319 1,476, 746
General government buildings 135,000 135,000 128,891 6,109
Parking facilities 315 000 315,000 70 254 244 746
Total Capital Outlay 4,956,050 5 275 615 2 723 618 2,551 997
Total Expenditures 4 956 050 5,275,615 2,723 618 2,551,997
OTIIER FINANCING SOURCES (USES)
Transfers in 5,162,470 5 275,615 2,723 618 (2,551,997)
Total Other Financing Sources (Uses) 5 162,470 5,275,615 2,723 618 (2,551 ,997)
Net Change in fund balances 206,420
Fund Balance at Beginning of Year
Fund Balance at End of Year $ 206 420 $ $ $
70
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2018
Special Camelia
Revenue Permanent
Funds Fund Totals
ASSETS
Cash and investments $ 7,296,637 $ 171,047 $ 7,467,684
Accounts receivable 7,487 7,487
Interest receivable 103 103
Loans receivable 1,235,910 1,235,910
Due from other governments 531,748 531,748
Prepaid items 3,399 3,399
Total Assets $ 9,075,181 $ 171,150 $ 9,246,331
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 253,687 $ $ 253,687
Accrued payroll 22 22
Due to other funds 362,046 362,046
Refundable deposits 112,050 112,050
Total Liabilities 727,805 727,805
Fund balances:
Nonspendable 3,399 171,150 174,549
Restricted 8,343,977 8,343,977
Total Fund Balances 8,347,376 171,150 8,518,526
Total Liabilities and
Fund Balances $ 9,075,181 $ 171,150 $ 9,246,331
71
NONMAJOR
SPECIAL REVENUE FUNDS
CITY OF TEMPLE CITY, CALIFORNIA
Description ofNonmajor Special Revenue Funds
June 30, 2018
Surface Transportation Program -Local Fund -To account for the grant revenues received from the Federal
Highway Administration through the California Depattment of Transportation to partially fund Upgrade Traffic
Signals on Temple City Blvd between El Camino Real Avenue and Ellis Lane, and other safety improvements
projects.
Road Maintenance Rehab Act (RMRA) Fund-This fund was established to account for revenues received under
the passage of Senate Bill I (SB-1) which is known as the Road Repair and Accountability Act of 2017.
Revenues collected in the fund will be utilized on future road maintenance projects.
1992/1996 Park Bond Fund -To account for revenues received from the Los Angeles County Regional Park and
Open Space Grant. This grant was approved November 3, 1992 and November 5, 1996 to benefit property
tlu·ough the improvement of neighborhood parks and recreation facilities for youth and senior citizens.
Measure M Fund -This fund was established to account for revenues under the passage of Measure M approved
by the voters of Los Angeles County on November 2016 to improve transportation and ease traffic congestion for
the Measure M Local Return (LR) program. This program is funded by the Measure M sales tax with no sunset,
beginning on July I, 2017.
State Recycling Fund-To account for revenues received from fiscal year ended June 30, 2002 tlu·ough fiscal year
ended June 30, 2003 from the State Department of Conservation under Section 14581 (a)( 4 )(a) of the California
Beverage Container Recycling and Litter Reduction Act for beverage container recycling and litter cleanup
activities.
Park Acquisition Fund -To account for City imposed fees from the construction of new dwellings within the
City. Expenditures are for the acquisition or improvement of neighborhood or community parks in conformance
with the priorities established by the General Plan.
Lighting and Landscape District Fund-To account for assessments and ad valorem taxes which are used for the
operation and maintenance of street lights, traffic signals, and trees and parkways within the City.
Public Att Fee Fund-An optional development impact fee used to procure, commission, install and/or maintain
art in a public place. The impact fee could be identified for an individual art piece per the development
agreement. If the development agreement does not specifY a patticular att piece for the impact fee, it shall be
deposited into the City's Public Art Fund.
Bicycle Transpmtation Account Fund-The Bicycle Transpmtation Account Fund is used to account for the grant
revenues received from the Depattment of Transportation to pattially fund the City's Rosemead Boulevard
Improvement Project.
74
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30, 2018
Public
Transportation
Prop C Used Oil
$ 1,387,568 $ 7,461
$ 1,387,568 $ 7,461
$ $
1,387,568 7 461
1,387,568 7,461
$ I ,387,568 $ 7,461
State
Gas Tax
$ 316,862
$ 316 862
$ 89,730
89 730
227 132
227,132
$ 316862
Traffic
Cong Relief Asset
Section 2181 Seizure
$ 41,368 $
$ 41,368 $
$ $
41,368
41,368
$ 41,368 $
76
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30, 2018
Parking Affordable
Concession Housing
$ 10,000 $ 157,000
$ 10 000 $ 157 000
$ $
10 000 157 000
10,000 157 000
$ 10 000 $ 157 000
Sewer
Reconstmction
$ 919,171
$ 919 171
$
919 171
919 171
$ 919 171
Surface
Transportation
Program -Local
$
303,300
$ 303,300
$
303,300
303 300
$ 303,300
78
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30, 2018
State Park
Recyc1ing Acquisition
$ $ 82,223
$ $ 82 223
$ $
82 223
82 223
$ $ 82 223
$
$
$
Lighting and
Landscape
District
2,046,926
260
80,596
3 399
2 131 181
62,745
22
62 767
3,399
2 065 015
2 068 414
$ 2,131 181
Bicycle
Transportation
Public Art Fee Account
$ 231,470 $
$ 231 470 $
$ $
112,050
112 050
119,420
119,420
$ 231,470 $
80
$
$
$
$
Total
7,296,637
7,487
1,235,910
531,748
3 399
9 075,181
253,687
22
362,046
112 050
727 805
3,399
8,343,977
8,347 376
9,075,181
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenne Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30,2018
Public Traffic
Transportation State Cong Relief Asset
Prop C Used Oil Gas Tax Section 2181 Seizure
$ $ $ $ $
566,343 9,946 725,570 41,368
16,824 2,907
583 167 9 946 728 477 41 368
729
514,603
514 603 729
583,167 9,946 213,874 41,368 (729)
(203,442) (9,063) (6,000)
(203,442) (9,063) (6,000)
379,725 883 207,874 41,368 (729)
I 007,843 6,578 19,258 729
$ 1,387 568 $ 7 461 $ 227 132 $ 41 368 $
82
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2018
$
$
Parking
Concession
10,000
10,000
$
$
Affordable
Housing
157,000
!57 000
Sewer
Reconstruction
$
90,000
90,000
90,000
90,000
829,171
$ 919,171
Surface
Transportation
Program -Local
$
303,300
303 300
303,300
(303,300)
(303,300)
$
84
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30,2018
Lighting and Bicycle
State Park Landscape Transportation
Recycling Acquisition District Public Art Fee Account
$ $ $ 1,436,525 $ $
197,244
38,000 520
18,929
38,000 1,455,974 197,244
1,211,749
I 211,749
38,000 244,225 197,244
334,390
(1,111) (21,650) (20,571)
(I, Ill) (21,650) 313,819
(I, Ill) 16,350 558,044 197,244
I, Ill 65,873 1,510 370 119,420 (197,244)
$ $ 82,223 $ 2,068,414 $ 119 420 $
86
Total
$ 1,436,525
3,899,574
201,908
3
60,267
70,000
5,668,277
7,400
729
1,726,352
740,308
2,474,789
3,193 488
334,390
(1,841,901)
(1,507,511)
1,685,977
6,661,399
$ 8,347,376
CITY OF TEMPLE CITY, CALIFORNIA
Budgetary Comparison Schedule
Permanent Fund
Year Ended June 30,2018
REVENUES
Use of money and property
Other
Total Revenues
EXPENDITURES
Current:
Community services
Total Expenditures
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year
$
$
Budgeted Amounts
Original Final
500 $
500
500 $
87
Variance with
Final Budget-
Actual Positive
Amounts (Negative2
500 $ 553 $ 53
500 500
500 1,053 553
500 (5002
500 (5002
500 553 $ 53
170,597
$ 171,150
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
COPS Fund
Year Ended June 30,2018
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 115,000 $ 139,000
Investment income
Total Revenues 115,000 139 000
OTIIER FINANCING SOURCES (USES)
Transfers out (100,000) (100,000)
Total Other Financing Sources (Uses) (100,000) (100,000)
Net Change in fund balances $ 15,000 $ 39 000
Fund Balance at Beginning of Year
Fund Balance at End of Year
89
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 139,416 $ 416
513 513
139,929 929
(139,545) (39,545)
(139,545) (39,545)
384 $ (38,616)
$ 384
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Public Transportation-Prop C Fund
Year Ended June 30, 2018
Budgeted Amounts
Origjnal Final
REVENUES
Intergovernmental $ 540,000 $ 566,000
Use of money and property 100 100
Total Revenues 540,100 566,100
OTIIER FINANCING SOURCES (USES)
Transfers out (1,229, 790) (1,229,790)
Total Other Financing Sources (Uses) (1,229, 790) (1,229,790)
Net Change in fund balances $ (689,690) $ (663,690)
Fund Balance at Beginning of Year
Fund Balance at End of Year
91
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 566,343 $ 343
16,824 16,724
583,167 17,067
(203,442) I 026,348
(203,442) I 026 348
379,725 $ I 043,415
1,007,843
$ 1,387,568
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
State Gas Tax Fund
Year Ended June 30,2018
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 772,000 $ 772,000 $ 725,570 $ (46,430)
Use of money and property 1,000 I 000 2 907 1,907
Total Revenues 773,000 773 000 728,477 (44,523)
EXPENDITURES
Current:
Public works 560,460 590 460 514,603 75,857
Total Expenditures 560,460 590 460 514,603 75,857
Excess (deficiency) of revenue
over Expenditures 212,540 182 540 213,874 31,334
OTIIER FINANCING SOURCES (USES)
Transfers out (6,000) (6,000)
Total Other Financing Sources (Uses) (6,000) (6,000)
Net Change in fund balances $ 212,540 $ 182 540 207,874 $ 25,334
Fund Balance at Beginning of Year 19,258
Fnnd Balance at End of Year $ 227,132
93
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenne Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
Asset Seizure
Year Ended June 30,2018
Budgeted Amounts
EXPENDITURES
Current:
Public safety
Total Expenditures
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year
Original Final
$ $
$ $
95
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 729 $ (728)
729
(I) (729) $ (728)
729
$
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fnnd
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Air Quality Improvement District Fund
Year Ended June 30, 2018
Budgeted Amounts
Orig!nal Final
REVENUES
Intergovemmental $ 45,000 $ 45,000
Use of money and property 100 100
Total Revenues 45 100 45 100
OTHER FINANCING SOURCES (USES)
Transfers out (41,270) (41,270)
Total Other Financing Sources (Uses) (41,270) (41,270)
Net Change in fund balances $ 3,830 $ 3,830
Fund Balance at Beginning of Year
Fund Balance at End of Year
97
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
$ 45,225 $ 225
2,040 1,940
47,265 2 165
(30,969) 10,301
(30,969) 10 301
16,296 $ 12,466
196 438
$ 212,734
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Reveuues, Expenditures and Changes in
Fund Balance-Budget and Actual
Sewer Reconstruction Fund
Year Ended June 30, 2018
Budgeted Amounts
REVENUES
Charges for services
Total Revenues
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year
$
$
Original Final
so 000 $ 90,000
80,000 90,000
80,000 $ 90 000
99
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
$ 90,000 $
90,000
90,000 $
829,171
$ 919 171
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fnnd
Schedule of Revenues, Expenditures and Changes in
Fnnd Balance-Budget and Actual
Road Maintenance Rehab Act (RMRA)
Year Ended June 30,2018
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 206,420 $ 136,420
Use of money and property
Total Revenues 206 420 136 420
OTHER F1NANCING SOURCES (USES)
Transfers out (206,420) (206,420)
Total Other Financing Sources (Uses) (206,420) (206,420)
Net Change in fund balances $ $ (70,000)
Fund Balance at Beginning of Year
Fund Balance at End of Year
101
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 213,223 $ 76,803
752 752
213 975 77 555
206,420
206,420
213,975 $ 283,975
$ 213,975
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Measure M Fund
Year Ended June 30, 2018
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 400,000 $ 384,000
Use of money and property
T a tal Revenues 400,000 384,000
OTIIER FINANCING SOURCES (USES)
Transfers out (400,000) (400,000)
Total Other Financing Sources (Uses) (400,000) (400,000)
Net Change in fund balances $ $ (16,000)
Fnnd Balance at Beginning of Year
Fnnd Balance at End of Year
103
Variance with
Final Budget-
Actual Positive
Amounts (Negative)
$ 383,679 $ (321)
1,377 1,377
385,056 1,056
(186,845) 213,155
(186,845) 213,155
198,211 $ 214,211
$ 198,211
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Park Acquisition Fund
Year Ended June 30, 2018
Budgeted Amounts
Original Final
REVENUES
Charges for services $ 40 000 $ 40 000
T a tal Revenues 40 000 40 000
OTIIER FINANCING SOURCES (USES)
Transfers out (15,000) (23,000)
Total Other Financing Sources (Uses) (15,000) (23,000)
Net Change in fund balances $ 25,000 $ 17 000
Fund Balance at Beginning of Year
Fund Balance at End of Year
105
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 38,000 $ 2,000
38 000 (2,000)
(21,650) 1,350
(21,650) 1,350
16,350 $ (650)
65,873
$ 82 223
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual
Bicycle Transportation Account
Year Ended June 30, 2018
Budgeted Amounts
Original Final
REVENUES
Intergovemmental
Total Revenues
$ $ 197 000 $
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year
$
107
197 000
$ 197 000
$
Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
19 7, 244 _:$;:__ _ ____:2:_c44_,__
197,244 244
197,244 ..;$~~......:2:.:,44.:.,.
(197,244)
CITY OF TEMPLE CITY
Net Position by Component· Last Ten Fiscal Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Governmental activities:
Net position:
Investment lrl capital assets $ 26,109,373 $ 27,542,462 $ 28,131,358 $ 29,208,039 $ 38,038,920 $ 51,168,623 $ 52,166,900 $ 53,143,904 $ 51,724,138 $ 52,306,797
Restricted 9,924,588 10,961,386 14,736,866 11,889,013 8,445,931 4,083,955 4,898,508 6,132,978 7,098,321 8,518,526
Unrestricted 20,313,976 18,729,825 16,112,547 24,103,180 21,329,869 9,044,919 11,485,507 11,584,805 9,745,324 7,752,940
Total governmental activities net positlorl $ 56,347,937 $ 57,233,673 $ 58,980,771 $ 65,200,232 $ 67,814,720 $ 64,297,497 $ 68,550,915 $ 70,861,687 $ 68,567,783 $ 68,578,263
%changes from prior year 2.55% 1.57% 3,05% 10.54% 4.01% -5.19% 6.62% 3.37% -3.24% 0.02%
109
CllY OF TEMPLE CllY
Fund Balances of Governmental Funds -last Ten Fiscal Years
2009
General Fund
Nonspendable $
Restricted 2,563,065
Committed
Assigned
Unassigned 22,052,532
Total general Fund 24,615,597
All other governmental fund:
Nonspendable
Restricted 10,931
Unassigned, reported in:
Special revenue funds 12,495,281
Capital projects funds
Debt service funds (3,314,129)
Total all other governmental funds 9,181,152
Total Governmental Funds $ 33,807,680
Note: This schedule reports Is using the modified accrual basis of accounting
Source: City ofT em pie City's Comprehensive Annual Hnandal Report
2010 2011 2012
$ $ 1,678
2,360,171 1,771,165
4,500,000
17,200,000
22,340,207 23,542,553 2,352,402
24,700,378 25,313,718 24,054,080
22,706 14,736,866 11,889,013
12,846,187 {84,843)
{3,424,412) (3,223,856)
9,421,775 (3,308,699)
$ 34,144,859 $ 36,741,885 $ 35,943,093
Ill
2013 2014 2015 2016 2017 2018
12,795 10,531 $ 409,084 463,539 $ 480,576 $ 128,670
4,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000
15,150,000 12,769,580 12,868,392 12,302,864 11,513,004 10,589,004
1,764,267 1,725,404 3,249,131 3,538,853 3,403,359 4,713,137
21,427,062 18,005,515 20,026,607 19,805,256 18,896,939 18,930,811
1,088,219 170,305 170,597 174,549
8,445,931 2,959,528 4,898,508 6,322,718 6,927,724 8,343,977
{150) {360,045) (197,244)
(1,722,989)
(150) (1,722,989) {360,045) (197,244)
$ 29,872,843 $ 20,965,043 $ 24,290,345 $ 25,938,234 $ 25,798,016 $ 27,449,337
Category :.2008/09' :_.:
RHidtnlial 2.914MS.154
COIMilrt~l 214,165,414
lndultrial lU17,S63
IMtilu\iQtlal 17,074,07$
lrrigilled .437Jl91
UiceelbM®S $6_417 -....
RW"tttlon~ 3,:)n,gi)9
,. .. «1.3*.192
SBE Nononitvy !61,$91
Cron Refe~MCi 7,$46,698
li~~Ue~Jred 27,()9a,&29
"'m• 15,85?,0151
TOTAlS 3,27(),425,923
Total Direct !We 0.091te
..
THE CITY OF TEMPLE CITY
ASSESSED VALUE OF TAXABLE PROPERTY
2008/09 ~ 2017/18 Taxable Property Values
.2009110 2010/11 2011/12 2012/13 2013/14 2014/16 ; ' 2015/16 :.
2,952,!176)~ ,,~9.375,W 3,17$,5&7.6&5 3,2QI,nl,4\l 3,4$5,48$,19-4 3.6SS,339.~ 3,$49,327,479 .• ..
23J.,159,971 235,2«l,M2 241,334,139 24U4.9.~5 25$,434,441 268,.609,959 282,005,464
39,131,o2:l 38,1168,701 39,934,500 41,224,415 42.S2Mt0 43,112,413 ~o.113.4n
11,328$42 17,129,301 19,415,635 14.&4,120 14,528,414 tM7J.5$ :w.m~
----·-
"'·'" 4~MS2 "'·"' #MOO 458,180 106,3-12 100,342
---
'"'" 5$,310 55,7~ 56,4ea ~"' "'"" u ....
·-
3.249,m 2,150,752 1,191,&55 1,213,113 1,51.2,574 t.m,6i0 1,2ll.I,7&J --·
31,339.447 23,5S5,191 27,242,717 32,235,185 !2,1146.213 31,M0,476 35p.\2,469
352,U1 2$2,011 252.011 252.011 252.011 252,011 252,011
7,724,7~2 7,959,9!~ 8,116,437 9,11'$,726 10,33A,699 10,214,241 11,719,323 --
25,!163,336 29,917,0$3 32,360,70$ 32,947,948 n.m.w 33,688,380 33,249,855 --· .
[5,735,74ol] ]S.73.5,7«] [5,735.744] [5,7J.5,744] JU35.744J [6.706.4351 (8,612,731] --
3,312,837,916 3,410,110.131 3,546,991,027 3,$71,$59,832 3,&5$.234,2M 4,09&,20(,931 4,373,439,234
···--. ----
0.09191 o.wm o.o·mo O.OS<I76 ...... o.oom 0.\1%>5 ---------
Data Soui'OfJ: LO$ An~lu county Astt$1l01"2008/09 • 201Tit8 o:>mbined Ta>: Ro.'s
Thl!i rep<Ht Is not to ba uS¥1/n svppor/ of tkbl ~U61'1C6 or conUnulng dl~aura a/t/emtllla wlthou//ha Writtan CCtl$arJ/ of HdL, COI'M & Cooe-
113
2016/17 2017118
4,154,m.m 4.~.264,200
21l3,81S,28G ~~.orMn
43,967,123 49,12a,94T -----23,700.695 22.852.1~
1¢a.S65 ~-"'
:l9,t\61 11.717
2.~67.341} 2.S14,003
50,nGMS 41,788,132
~2.\27 82,\27
12.~ea,r87 &,914,280
31,3lll,m 35,855,550
[5,587,215] [1!,587,215)
4,6lii,OJ0.«91 4,959,«'6,675 --
O.OS895 0.0$891
Pfel)ared On 12119!2018 By MV
City of Temple City
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Year
Ended June 30
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Taxes levied for
the Fiscal Year
$ 3,104,241
3,210,234
2,660,326
3,238,026
3,359,572
3,619,421
3,794,593
3,984,673
3,897,361
3,421,264
4,284,305
Collected within the Fiscal
Year of Levy
Amount
$2,660,485
2,820,660
2,857,221
2,941,760
3,063,945
3,174,199
3,340,124
3,549,165
3,428,032
3,044,928
4,350,625
Percent of
levy
85.70%
87.86%
107.40%
90.85%
91.20%
87.70%
88.02%
89.07%
87.96%
89.00%
101.55%
Collections in
Subsequent Years
$ 443,756
389,574
(196,895)
296,266
295,627
445,222
454,469
435,508
469,329
376,336
$
Total Collections to Date
Amount
3,104,241
3,210,234
2,660,326
3,238,026
3,359,572
3,619,421
3,794,593
3,984,673
3,897,361
3,421,264
Percent of
levy
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Note: The amounts presented include city property taxes, Muni lighting District, Muni lighting District A, and Mun! Lighting District B
Source: los Angeles County Auditor Controller
liS
THE CITY OF TEMPLE CITY
2017118 TOP TEN PROPERTY TAXPAYERS
Top Property Ownere Based On Net Values
1)GAT£WAYLP
2) CAlAC INVESTMEI<rr
3) GRADIAZIO tNVESn.IENT COMPANY
4)HOSULTANALLC
6) AALPH$ GROCERY COMPANY
(PW'"''Aj>poo!oO'IP~
6)5600 GRACEWXID U.C
7) CHEN FAMILY TRUST
8) JAMES JAJIO SUE f£MINO TRUST
9) 6ARCHCSTER mt.tPL.E. CITY
10) OONG CHUNG AND ZHEN H FENG
Top Ten Total
$:)6,394,461 0.74%
2 $24,520,501 0.50%
• $15,728,904 0.32%
$8,679,733 0.18%
$6,801,320 0.14%
$7 ,482A07 0.15%
$6,344,722 0.13%
2 $6,127,084 0.12%
$5,641,150 0.11%
$5,504,699 0.11%
" $123,131,181 2.50%
Top0wnel51astedaed on 12119118 by MaheaVusing ul8$!hl"llugh 06J30/16 (Version R.1)
D•tl Soun:e: lor Angeles Coullly Msnsor 20f11fl Comblnfd nx Rolls "'d lht SBE Non Unitary Tax RoU
$1,478,451 4.14%
$1,478,461 4.14%
This tepOrl Is not ftl be w;ed m suppon of d•bt/uuanc• orctmlfnulng d/sd"'u"' "11/<m~enl!l willlout tht writlen conrt/11 of HdL. Conn & Cent
117
$3~,394,481 0.73%
$24,626,601 0.49%
$16,728,804 o.s:m
$9,679,733 0.18%
$B,2.79,n1 0.17%
$7,482,ol07 0.16%
$e,344,722 0.13%
$6,127,0S4 o.12%
$5,541,150 0.11%
$5,51)4,899 0.11%
$124,608,632 2.151%
Commurdlll
Suor:euor Agency
Convnardal
SUCOIIIKif Agency
Commordal
SUG¢0UOf Agency
Residential
TOll
CGn'ln'letdal
TO #I
lnstitullonal
TO#!
Resktentlol
1U01
Commercial
Suox:es.sorAgency
C01'1'11110reia1
Successor Aijancy
GomrMreia!
SuCO!Issor Agency
Prepared On 1211P/2016 By MV
THE CITY OF TEMPLE CITY
DIRECT & OVERLAPPING DEBT AS OF JUNE 30, 2018
WATER DISTRICT 29,354,442 0.420 123,427
473.57 EL MONTE CITY SO OS 2004 SERIES B 1,209,988 10.773 130,356
473.59 EL MONTE CITY SO OS 2004 SERIES 0 (2009) 1,425,000 10.773 153,520
473.61 EL MONTE CITY SO OS 2008 SERIESA-1BABS · 6,998,150 10.773 646,203
473.63 EL MONTE CITY SD OS 2012 REFUND BONDS 6,691,434 10.773 957,905
473.64 EL MONTE CITY SO OS 2014 SERIES A 10,755,000 10.773 1,158,674
473.65 EL MONTE CITY SO OS 2015 REF BONDS 63,615,000 10.773 5,776,133
473.66 EL MONTE CITY SO OS 2014 SERIES B 9,605,000 10.773 1,034,780
473.67 EL MONTE CITY SD OS 2017 REF BOND SERA 22,350,000 10.773 2.407,644
629.53 ROSEMEAD SO OS 2007 SERIES D 230,000 4.076 9,376
629.54 ROSEMEAD SD DS 2008 SERIES A 420,000 4.076 17,121
629.55 ROSEMEAD SODS 2011 REF BOND 6,780,000 4.076 276,364
629.56 ROSEMEAD SD DS 2012 REF BONDS 5,205,000 4.076 212,160
629.58 ROSEMEAD SO OS 2008 SERIES T 1 7,621,503 4.076 318,641
629.59 ROSEMEAD SD OS 2014 REF BONDS 5,770,000 4.076 235,212
629.60 ROSEMEAD SODS 2016 REF BONDS 12,395,000 4.076 505,278
629.61 ROSEMEAD SO OS 2008 SERIES C 1,800,000 4.076 73,376
629.62 ROSEMEAD SD DS 2014 SERIES A 7,980,000 4.076 325,302
745.55 EL MONTE UNION HSO OS 2008 SERIES A 617,055 6.502 40,123
745.56 EL MONTE UNION HSD OS 2008 SERIES B 30.118,828 6.502 1,958,420
745.57 EL MONTE UNION HSD OS 2015 REF BONDS 26,125,000 6.502 1,698,728
745.58 EL MONTE UNION HSD OS 2016 REF 17,110,000 6.502 1,112,545
745.59 EL MONTE UNION HSD OS 2008 SERIES C 52,990,000 6.502 3,445,574
745.60 EL MONTE UNION HSD OS 2016 REF BONDS 10,895,098 6.602 708,433
805.65 LA CCD OS 2003 TAXABLE SERIES 20048 2,115,000 0.017 357
805.56 LA CCD OS 2001 TAXABLE SERIES 2004A 31,665,000 0.017 5,322
805.60 I.A CCD OS 2001, 2008 SER E-1 7,580,000 0.017 1,278
805.62 LA CCD OS 2003, 2008 SER F-1 7,575,000 0.017 1,278
805,65 LA CCD OS 2008, 2009 TAXABLE SERB 76.000,000 0.017 12,649
805.66 LA CCO OS 2008, 2010 TAX SERIES D 125,000,000 0.017 21,081
805.67 LA CCD OS 2008, 2010 TAX SERE (BASS) 900,000,000 0.017 151,782
805.69 LA CCO OS 2008 2012 SERIES F 205,000,000 0.017 34,573
805.70 LA CCO OS 2013 REF BONDS 42,305,000 0.017 7,135
805.71 LA CCD OS 2008 SERIES G 1,664,870,000 0.017 260,775
805.73 LACCD OS 2015 REF SERIES A 33,270,000 0.017 5,611
805.74 LA CCO OS 2015 REF SERIES B 272,085,000 0.017 45,886
605.75 LA CCD OS 2016 REF SERIES C 223,910,000 0.017 37,762
805.76 LA CCD OS 2008 SERIES I 175,665,000 0.017 29,609
805.78 LA CCD OS 2016 REF BONDS 300,000,000 0.017 50,594
806.79 LACCO OS 2016,2017 SERA 100,000,000 0.017 16,665
"llll' lund Is Q portion of alarAer &gooey, end Is responsible for doblln nrc at outside thadty.
This report ranee!& dobt which Ia belng repaid through voter-approved property tax lndebledness.. 11 excludns morlg<~ge revenue, tax a!!ocatlOn bo!Kf$,1nterlm nnandng
obllgollons, non·lxmdod capitalleaseobllga\lons, and C(ltiJII¢aleG ofp;utlclpt~Uon, unless provided by lha dly.
ovmtnpplng govei-nmentsara t11ooa lhaloo!ne!dG, at toaatln part, With the geographic boundaries or the city. The percentage of ovarlapptng dnbt applicable Js esUmaled by
uelng I6X!Ibte anellll-tl\f V<JIU!15. Applcablo per~ulage$ We1a "eallmated by determining the porllon of ¬her govemmnntel unll'~tloxable assos.sad value Ulat Ia within lho citY"s
boundalles 11nd dividing it by eaCh unlt'atotallaxabte fl&t.antd vtt.tuo.
DtJfft Source: HdL CoNin & Con~, Los Angeles County A"e.tor andAudllor ComblnlJd ~017/18 LIDn Data Tax Rolls
This report Is nDt to bo used In SIIPPorl Q/debt Issuance orcontfnllfng dlsctosuro,;tatomonts wltliout tho wrlllon cOn$ont of Hdl,
Prepared On 12/19/2018 By MV
Coron & Cone
119
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E
8 .5
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a.
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.e
THE CITY OF TEMPLE CITY
DEMOGRAPHIC AND ECONOMIC STATISTICS
Calend a r Ptraonallncome Per Capita
Year Population (In Thousanda ) Pe,.onallncome
2tl0a 35,423 $874,513 $24,688
2009 :16,8 15 $8~8,744 $24,112
2010 35,8~2 $1,000,992 $27,88 ~
2011 35,749 $936,409 $26,194
2012 ~.t:;z $947,227 $20;347
20 13 38,134 $932,474 $25,808
20 14 38,152 $!163,668 $28,858
20 15 30,634 $986,655 $27,006
2016 38,389 $1,008,813 $27,723
2017 38,411 $974,762 $28,nt
Personal Income and Unemployment
28.000 10
27,500
27,000
28.500 8
26,000
2MOO
25,000
24.500
24.000 0
2008 2009 2010 201 1 2012 2013 2014 2015 2016 20 17
1-Pet C0p10 Pt ra lnco<'l\e -U1\Ml910)'11\et11Ro:e
c ::0
" 3
l r:
!;
Unomploymont '!. of Pop 25+ with %of Pop 25+ wl lh
Rate Median Age High Sc hool Degree Bache lofs Degree
4.8%
7.6% 40.~ 87.1% 32.4%
8.2% 40.8 .88.3% 32.2%
8.0% 40.6 80.5~~ 36.0%
0.0" 40.9 8M% 3,.9%
-4.9% 41.5 88.0% 35.9%
5..4% 41.3 85.9% 37.0%
H% 42.3 88.Wo 37.6%
3.4 % 42.9 86.2% 37.3%
3.5% 43.4 84.8 % 36.8%
Education Level Attained for Population 25
and Over
c
0 "" .!!
::0 a.
~
2009 20 10 2011 2012 201$ 2014 2015 2016 2017
I • Lt,.ThantfighSdlcot • HighSdlootGradut\e • ColegeGreduole
Notes end Data Sourett:
Population: Calif ornia State Department ot Finane». Unemployment Data: Ctllfornta Employment Oavelopmtnt De partment
2000.20091ncome, Age, and Edueatlon Da ta: ESRI · Don10(1,.phh: E•Nmotu ere ba .. d Oil lilt le!lovallable Cen•u.s. Projeetlons are developtd by lncorpotltlng all ot tht p~ot census data reltased to
dote. Demographic Data Is tololed from Cen aus Block Groupslhal ovMop tho City' a boundatf<>s
2010 1nd later~ Income, Age and Education Data· US Census Bureau, most recent American Community Survey
This rtportls not to be un dln •upportofdebt luuanc• or continuing dtsclo..rure •tatcmtn ts mthout ih e wntttn conuntofHCJL Conn & Cone Propared On 121 19120 1! B~ MV
121
CITY OF TEMPlE CITY
Operating Information
Full-Time Equivalent City Employees by Function-last Ten Fiscal Year
Function 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Government
Full Time 7.80 7.80 7.80 7.80 8.80 9.95 9.95 9.95 10.95 10.95
Part Time 0.61 0.65 0.85 3.11 3.11 1.85 2.12 2.82 1.44 1.26
8.41 8.45 8.65 10.91 11.91 11.80 12.07 12.77 12.39 12.21
Community Development
Full Time 7.15 7.15 6.10 6.10 6.20 6.90 6.90 6.90 6.90 6.95
Part Time 0.16 0.26 0.06 1.64 2.64 1.60 1.26 0.69 0.55 0.85
7.31 7.41 6.16 7.74 8.84 8.50 8.16 7.59 7.45 7.80
Parks & Recreation
Full Time 11.70 11.70 12.15 12.15 12.25 12.05 12.05 12.05 12.05 12.05
Part Time 21.88 21.46 18.96 22.66 18.92 26.05 26.22 26.69 23.97 24.86
33.58 33.16 31.11 34.81 31.17 38.10 38.27 38.74 36.02 36.91
Public Safety
Full Time 5.40 5.40 7.05 7.05 7.65 7.55 7.55 6.85 6.85 4.60
Part Time 1.43 2.33 4.22 4.07 4.51 2.83 1.41 1.54 1.64
5.40 6.83 9.38 11.27 11.72 12.06 10.38 8.26 8.39 6.24
Public Works
Full Time 3.95 3.95 2.90 2.90 3.10 3.55 3.55 3.25 4.25 6.45
Part Time 0.34 0.28 1.79 0.46 1.84 0.83 0.12
3.95 4.29 2.90 3.18 4.89 4.01 5.39 4.08 4.37 6.45
Full Time Total 36.00 36.00 36.00 36.00 38.00 40.00 40.00 39.00 41.00 41.00
Part Time Total {1} 22.65 24.14 22.20 31.91 30.53 34.47 34.27 32.44 27.62 28.61
TOTAL 58.65 60.14 58.20 67.91 68.53 74.47 74.27 71.44 68.62 69.61
Note: (1) 2,080 Hours of Part Time equals to 1 Full Time Equivalent
Source: City of Temple City Administrative Services Department
123
CITY OF TEMPLE CITY
Operating Information
Capital Asset Statistics by Function~ Last Ten Fiscal Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Public Works:
Miles of arterial streets maintained 14 14 14 14 14 14 14 14 14 14
Miles of non-arterial streets maintained 57 57 57 57 57 57 57 57 57 57
Miles of storm drain maintained 2 2 2 2 2 2 2 2 2 2
Number of traffic signals 39 39 39 39 39 39 39 39 39 39
Number of street lights 364 364 364 364 706 706 706 706 706 706
Parks & Recreation:
Number of parks 2 2 2 2 2 2 2 2 2 2
Total park acreage 19 19 19 19 19 19 19 19 19 19
Number of baseba!l/sofbal! diamonds 2 2 2 2 2 2 2 2 2 2
Number of community centers 1 1 1 1 1 1 1 1 1 1
Number of tennis courts 7 7 7 7 7 7 7 7 7 7
Number of basketball courts 2 2 2 2 2 2 2 2 2 2
Source: City of Temple City Community Development Department and Parks & Recreation Department
125
CITY OF TEMPLE CITY,
CALIFORNIA
ATTACHMENT 8
Single And it Report on Expenditures of Federal Awards
For the Year Ended June 30,2018
VAVRINEK , TR INE , DAY~ CO ., LLP
Certified Public Accountants
VAL U ETHE ~
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and the Members of the City Council
City of Temple City, California
We have audited, in accordance with the auditing standards generally accepted in t he United States of America
and the standards a pplicable to financial audits contained in Governm en t Auditing Standards issued by the
Comptroller General ofthe United States, the financial statements of the governmental activit ies, each major fund,
and the aggregate remaining fund information of the City of Temple City, California (City), as of and for the year
ended June 30, 2018, and the rel ated notes to the financial statements, which collectively comprise the City's basic
financial statements, and have issued our report thereon d ated Janua~y 31,2019. Our report includ ed an emphasis
of matter regarding the City's adoption of Governmental Accounting Standard Board (GASB) Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other than Pensions.
Internal Control Over Financial Reporting
In planning and perfo rming our audit of the financial statements, we considered the City's internal control over
financial reporting (internal control) to determine the audit procedures that are appropriate in the circumst ances
for the purpose of expressing our opinions on the financial state ments, but not for the purpose of express ing an
opinion on the effectiveness of the City's intemal control. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and conect,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of defi cienci es, in internal
control, such that there is a reaso nable possibility that a materia l misstatement of the entity's financial statements
will not be prevented, or detected and corrected on a timely basis. A significan t deficiency is a deficiency, or a
combination of deficiencies, in internal control that is les s severe than a material weakness, yet imp ortant enough
to merit attention by those charged with governance.
Our consideration of intemal control was for the limited purpose described in the first paragraph of this section
and was no t designed to identify all deficiencies in internal control that might be material weaknesses or
sign ificant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that h ave not been
identified.
1 0681 Foothi l l Blvd .. Suite 300, Rancho Cucamonga. CA 91730 P 909.466.4410 F 909.466.4431 W vtdcpa.com
VAVRINEK, TRINE, DAY t:!i CO., LLP
Certified Public Accountants
VALUE THE ~
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON
THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY
THE UNIFORM GUIDANCE
The Honorable Mayor and the Members of the City Council
City of Temple C ity, California
Report on Compliance for Each Major Federal Program
We have audited the C ity of Temple City, California's (City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a d irect and material effect on each
of the City's m ajor federal programs for the year ended June 30, 2018 . The City's major federal programs are
identified in the su mmary of auditor's re su lts section of the accompanying sche dul e of findings and questioned
costs.
Management's Responsibility
Management is respons ible for compliance with the fed eral statutes, regulation s, an d the terms and cond itions of
its federal awards app licable to its federal programs.
Auditors' Responsibility
Our respon s ibility is to express an opinion on compliance for each of the City's maj or federal programs based on
our audit of the types of compliance req uirements referred t o above. We conducted our audit of compliance in
accordance with auditing standard s generally accepted in the United States of America; the standards applicable
to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Pat1 200, Uniform Administrative
Requirements, Cos t Princ iples, and Audit Requirements for Federal Awards (Unifmm Guidance). Those
standards and the Uniform Guidance require that we plan and perfmm the audit to obtain reasonab le assurance
about whether noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about the City's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in a ll material respects, with the types of compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the year ended
June 30,2018.
3
10681 Foothill Blvd .. Suite 300. Rancho Cucamonga. CA 91730 P 909 .466.4410 F 909.466.443 1 W vtdcpa.com
Report on Schednle of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, each major fund, and the aggregate
remaining fund infotmation of 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. We issued our report
thereon dated January 18, 2019, which contained unmodified opinions on those financial statements. Our report
included an emphasis of matter regarding the City's adoption of Governmental Accounting Standards Board
(GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than
Pensions. Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal
awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required
part of the basic financial statements. Such inf01mation is the responsibility of management and was derived
from and relates 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 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 schedule of expenditures of federal awards is fairly stated in
all material respects in relation to the financial statements as a whole.
~. -z;::_, t>~ ~ ~ ;t-if
Rancho Cucamonga, California
January 31,2019
5
CITY OF TEMPLE CITY, CALIFORNIA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
FOR THE YEAR ENDED JUNE 30, 2018
NOTE 1-BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of
the City of Temple City (City) under programs of the federal government for the year ended June 30, 2018. The
information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations Patt 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). Because the Schedule presents only a portion of the operations of the City,
it is not intended to and does not present the financial position and changes in financial position of the City.
NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the modified basis of accounting. Under the modified
accrual basis, expenditures are incurred when the City becomes obligated for payments as a result of the receipts
of the related goods and services. Such expenditures are recognized following the cost principles contained in the
Uniform Guidance, wherein cettain types of expenditures are not allowable or are limited as to reimbursement.
NOTE 3-INDIRECT COST RATE
The City has not elected not to use the I 0-percent de minimis indirect cost rate allowed under the Uniform
Guidance.
7
CITY OF TEMPLE CITY, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2018
II. FINANCIAL STATEMENT FINDINGS
None repmted.
9
CITY OF TEMPLE CITY, CALIFORNIA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2018
None reported.
II
CITY OF TEMPLE CITY
Independent Accountants' Report on
Applying Agreed-Upon Procedures Related to the
Article XIII-B Appropriations Limit Calculation
For the Fiscal Year Ended Jnne 30, 2018
ATTACHMENT C
This agreed-upon procedures engagement was conducted in accordance with attestation standards established by
the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an
examination or review. the objective of which would be the expression of an opinion or conclusion, respectively,
on the Appropriations Limit calculation. Accordingly, we do not express such an opinion or conclusion. Had we
perfmmed additional procedures, other matters might have come to our attention that would have been reported to
you. No procedures have been performed with respect to the determination of the appropriation limit for the base
year, as defined by Article XIII-B of the California Constitution.
This report is intended solely for the information and use of the City Council and management of the City and is
not intended to be and should not be used by anyone other than those specified parties.
~ ~I t>~ ~ ~/-if I
Rancho Cucamonga, California
January 31,2019
2
VAVRINEK, TRINE, DAY /:!i CO ., LLP
Certified Public Accountants
The Honorable Mayor and the Members of the City Council
City of Temple City, California
ATTACHMENT D
V AL U E THE ~
We have audited the financial statements of the governmental activities, each major fund, and the aggregate
rema ining fund information of City of Temple City, California (City) for the year ended June 30, 2018. Professional
stand a rd s require that we provide you with information about our responsibilities under generally accepted auditing
standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the
planned scop e and timing of our audit. We have communicated such information in our letter to you dated
June 1, 2018. Professional standards also require that we communicate to you the following information related to
our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible fo r the selection and use of appropriate accounting policies. The s ign ificant accounting
policies use d by the City are described in Note 1 to the financial statements. As described in Note 1 to the financia l
statements, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting
and Financial Reporting for Postemployment Benefits Other Than P ensions. Accordingly, the cumulative effect of
the accounting change as of the beginning of the year is di sclo sed in Note 14 to the financial statements. We noted
no transactions entered into by the City during the year for which there is a lack of authoritative guidance or
consensus. All s ig nificant transactions have been recognized in the finan c ial statements in t he proper period.
Accounting estimates are an integral part of the financial state ments prepared by management and are based on
management's knowledge and experi ence about past a nd current events and assumptions about future events.
Ce1tain accounting estimates are particularly sens it iv e because of the ir s ig nificance to the financial stat ements and
because of the p oss ibility that future events affecting them may differ significantly fr om those expected. The most
sensitive estimates affecting the City's fin a nci a l s tatem e nts were:
M anagement's estimates of the:
• Fair value meas urements of inve stments are based on observable market inputs and
information from the City's safekeeping custodian banks,
• Depreciation expense are based on estimated useful lives of capital assets,
• Net pension li a bility, deferred inflows/outflows of resources, pension expense, a nd
disclosures, are based on actuarial valuations for the CalPERS plan.
• Other post-employment benefits (OPEB) liability, defened inflows/outflows of resources,
OPEB expense, and disclosures are based on actuarial valuations.
We evaluated the key factors and assumptions used to develop the estimates in determining that they were
reasonabl e in relation to the financial statements taken as a whole.
10681 Foothill Blvd., Suite 300, Rancho Cu camonga, CA 91730 P 9 09.46 6.4410 F 909.466.4431 W vtdcpa.com
Other Matters
We applied cet1ain limited procedures to management's discussion and analysis, schedule of proportionate share of
the net pension liability, schedule of contributions, schedule of changes in net OPEB liability and related ratios, and
schedule of OPEB contributions, which are required supplementary information (RSI) that supplements the basic
financial statements. Our procedures consisted of inquiries of management regarding 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 did
not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual nonmajor fund statements, and the budgetary
comparison schedules, which accompany the financial statements but are not RSI. With respect to this
supplementary information, we made cet1ain inquiries of management and evaluated the fmm, content, and methods
of preparing the information to determine that the information complies with accounting principles generally
accepted in the United States of America, the method of preparing it has not changed from the prior period, and the
information is appropriate and complete in relation to our audit of the financial statements. We compared and
reconciled the supplementary information to the underlying accounting records used to prepare the financial
statements or to the financial statements themselves.
We were not engaged to report on the introductory and statistical sections, which accompany the financial
statements but are not RSI. Such information has 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 it.
Restriction on Use
This information is intended solely for the information and use of the Mayor and Members of the City Council and
management of the City and is not intended to be, and should not be, used by anyone other than these specified
parties.
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Rancho Cucamonga/California
January 31, 2019
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