HomeMy Public PortalAbout07) 7D Comprehensive Annual Financial Report 2019-06-30AGENDA
ITEM 7.D.
A DMINIS TRATIVE SERVI C ES DEPA RT M E NT
M EMORANDUM
DATE :
TO:
FROM:
January 21, 2020
The Honorable City Council
, Bryan Cook, City Manager
By: Susan Paragas, Administrative Services Director
SUBJECT: COMPRE HENS IV E ANNUA L FINANCIAL REPORT FOR TH E YEAR
ENDED JUN E 30, 2019
RECOMM ENDATION:
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, 2019
(Attachment "A");
2 . • Independent Auditor's Communication to the City (Attachment "B");
3. Independent Accountants' Report on Applying Agreed-Upon Procedures Related to
the Article XIII -B Appropriations Limit Calculation (Gann Limit) (Attachment "C "); and
4. Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Othe r Matters Based on an Audit of Financial Statements
Performed in accordance with Government Auditing Standards (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 California approved Proposition 111 which revised the
annual adjustment factors applied to the limit and each year thereafter.
City Council
January 21, 2020
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3. On June 19, 2018, the City Council adopted Resolution No. 18-5336 confirming the
factors used for calculating the annual appropriations limit for the Fiscal Year (FY)
2018-19 City Budget.
4. On October 28, 2019, 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 2017-18 CAFR.
5. On, December 20, 2019, the Audit Standing Committee (i.e. Mayor Pro Tern Chavez
and Councilmember Yu) met with City staff and audit staff from Eide Bailly, LLP
(EideBailly) 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. (Attachment "A")
Single Audit
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, is commonly known as the "Single Audit".
For FY 2018-19, the City federal grant expenditures were less than $750,000, therefore, a
Single Audit was not required.
Auditors
The auditors from EideBailly, (acquired Vavrinek, Trine, Day and Company, LLP) provided
a communication letter, AU-C260 (Attachment "B"), to convey to the City Council
(Council) matters related to the financial statement audit that are, in the auditors'
professional judgment, significant and relevant to the responsibilities of the Council in
overseeing the financial reporting process.
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
City Council
January 21, 2020
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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
EideBailly issued an unmodified ("clean") opinion on the City financial statements for the
year ended June 30, 2019. 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 $2.6 million from $68.6 million as of June 30, 2018,
to $71.2 million as of June 30, 2019 as a result of this year's operations. Total revenues
from all sources was $21.7 million and the total cost of all City programs was $19.1 million.
The City's total long-term liabilities increased by $1.3 million during the current fiscal year.
The key factors in this increase are the CalPERS pension (Pension) liability and Other
Post-Employment Benefits (OPEB) liability.
The General Fund (GF) revenues of $15.8 million exceeded GF expenditures of $14.4
million which provided for an excess of revenues over expenditures of $1.4 million.
Further, after the net transfers out, primarily for capital projects, the General Fund realized
a net increase in fund balance of $1.1 million. Primary revenue sources for this fund are
sales tax, property tax and motor vehicle in lieu. The GF 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 $5.4 million for FY 2018-19.
The Pension and OPEB liabilities are two key factors that could significantly impact the
City's long-term liabilities due to the sensitivity of the discount rates that are applied to
each of the plans' assets. A discount rate is the long-term expected rate of return on
investments.
Currently, Pension assets use a discount rate of 7.15%. The table below reflects how
sensitive the City's proportionate share of the net pension liability is impacted when the
discount rate is 1 % lower or 1 % higher.
City's Proportionate Share
of Net Pension Liability
Discount Rate (-1 % )
(6.15%)
$12.02 million
Current Discount
Rate
(7.15%)
$7.91 million
Discount Rate (+1%)
(8.15%)
$4.51 million
City Council
January 21, 2020
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If CalPERS determines to reduce the discount rate by 1 % due to lower investment
earnings, the City's Pension liability increases by $4.11 million. On the other hand, if the
investment earnings do well, a 1% increase in the discount rate results in a decrease of
$3.40 million of the Pension liability.
OPEB assets use a discount rate of 4.10%. The table below reflects how sensitive the
City's net OPEB liability is impacted when the discount rate is 1 % lower or 1 % higher.
Discount Rate (-1%)
(3.10%)
City's Net OPEB Liability $8.69 million
Current Discount
Rate
(4.10%)
$7.14 million
Discount Rate (+1%)
(5.10%)
$5.91 million
A 1% decrease in the OPEB discount rate results in additional liability of $1.55 million for
the City while a 1 % increase in the discount rate lowers the OPEB liability by $1.23 million.
Should the discount rates for the Pension and/or OPEB assets decrease, staff will
determine a course of action to address the financial impacts to the City.
GFOA Excellence in Financial Reporling Award
Staff submitted the FY 2018-19 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:
• 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;
City Council
January 21, 2020
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► 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 December 20, 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, 2019.
CITY STRATEGIC GOALS:
Approval to receive and file the CAFR for FY 2018-19 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 2019-
20 City Budget. However, staff has begun the mid-year budget analysis and will be
incorporating the results of actual spending in FY 2018-19, as reflected in the CAFR, in the
FY 2019-20 Mid-Year Budget Report.
ATTACHMENTS:
A. Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2018
B. Auditor's Communication to the City Council
C. Independent Accountants' Report on Applying Agreed-Upon Procedures Related to
the Article XIII-B Appropriations Limit Calculation
D. Independent Auditor's 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
ATTACHMENT A
CITY OF TEMPLE CITY
Comprehensive Annual Financial Report
for the period ended June 30, 2019
www.templecity.us
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2019
City of Temple City, California
Comprehensive Annual Financial Report
Year Ended June 30, 2019
Prepared by:
ADMINISTRATIVE SERVICES DEPARTMENT
Susan Paragas
Administrative Services Director
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
INTRODUCTORY SECTION
ATTACHMENT A
PAGE
Letter of Transmittal ...................................................................................................................... i
List of Elected Officials and Management Personnel ................................................................. vi
Organizational Chart .................................................................................................................. vii
Certificate of Achievement for Excellence in Financial Repmting ........................................... viii
FINANCIAL SECTION
Independent Anditor's Report .................................................................................................. 1
Management's Discussion and Analysis ................................................................................... 4
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position .............................................................................................. 13
Statement of Activities .................................................................................................. 14
Fund Financial Statements
Description of Major Funds .......................................................................................... 15
Balance Sheet ................................................................................................................ 16
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position ................................................................................. 18
Statement of Revenues, Expenditures and Changes in Fund Balances ......................... 19
Reconciliation of the Statement of Revenues, Expenditures and Changes
In Fund Balances of Governmental Funds to the Statement of Activities .................. 21
Proprietary Fund
Description of Proprietary Fund .................................................................................... 22
Statement of Net Position .............................................................................................. 23
Statement of Revenues, Expenses and Changes in Net Position ................................... 24
Statement of Cash Flows ............................................................................................... 25
Fiduciary Funds
Description of Fiduciary Funds ..................................................................................... 26
Statement of Fiduciary Net Position .............................................................................. 27
Statement of Changes in Fiduciary Net Position ........................................................... 28
Notes to Financial Statements ........................................................................................... 29
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule
General Fund ................................................................................................................. 60
Notes to Budgetary Comparison Schedule ................................................................................. 62
Schedule of Proportionate Share of the Net Pension Liability ................................................... 63
Schedule of Contributions .......................................................................................................... 64
Schedule of Changes of the Net OPEB Liability ....................................................................... 65
Schedule ofOPEB Contributions ............................................................................................... 66
CITY OF TEMPLE CITY, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
ATTACHMENT A
PAGE
SUPPLEMENTARY SCHEDULES
Nonmajor Governmental Funds
Combining Balance Sheets ............................................................................................ 67
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances ............................................................................................................. 68
Nonmajor Special Revenue Funds
Description ofNonmajor Special Revenue Funds ........................................................ 69
Combining Balance Sheet ............................................................................................. 71
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...... 76
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Permanent Fund ............................................................................................................. 81
COPS Fund .................................................................................................................... 82
Public Transportation -Prop A Fund ............................................................................ 83
Public Transportation -Prop C Fund ............................................................................ 84
Used Oil Fund ............................................................................................................... 85
State Gas Tax Fund ....................................................................................................... 86
Traffic Congestion Relief -Section 2182 Fund ............................................................ 87
CDBG Fund ................................................................................................................... 88
Air Quality Improvement Fund ..................................................................................... 89
Measure R Fund ............................................................................................................ 90
Sewer Reconstruction Fund ........................................................................................... 91
Road Maintenance Rehab Act (RMRA) Fund .............................................................. 92
1992/1996 Park Bond Fund ........................................................................................... 93
Measure M Fund .......................................................................................................... 94
Park Acquisition Fund ................................................................................................... 95
Lighting and Landscape District Fund .......................................................................... 96
CITY OF TEMPLE CITY, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
STATISTICAL SECTION
ATTACHMENT A
PAGE
Description of Statistical Section Contents ....................................................................................... 97
Financial Trends
Net Position by Component -Last Ten Fiscal Years ................................................................. 98
Change in Net Position -Expenses and Program Revenues -Last Ten Fiscal Years ............... 99
Fund Balances of Governmental Funds -Last Ten Fiscal Years ............................................. 100
Changes in Fund Balances of Governmental Funds -Last Ten Fiscal Years .......................... IOI
Revenue Capacity
Assessed Value of Taxable Property-Last Ten Fiscal Years ................................................. 102
Direct and Overlapping Property Tax Rates -Last Ten Fiscal Years ...................................... 103
Property Tax Levies and Collections -Last Ten Fiscal Years ................................................. 104
General Fund Revenues -Last Ten Fiscal Years ..................................................................... I 05
Principal Prope1ty Taxpayers-Current Fiscal Year and Nine Fiscal Years ............................ 106
Top 25 Sales Tax Producers -Current Fiscal Year .................................................................. 107
Debt Capacity
Direct and Overlapping Debt .................................................................................................... I 08
Demographic and Economic Information
Demographic and Economic Statistics -Last Ten Fiscal Years .............................................. I 09
Operating Information
Construction Activity -Last Ten Fiscal Years ........................................................................ 110
Full-Time Equivalent City Employees by Function -Last Ten Fiscal Years .......................... 111
Operating Indicators by Function -Last Ten Fiscal Years ...................................................... I I 2
Capital Asset Statistics by Function/Program .......................................................................... 113
ATTACHMENT A
9701 LAS TUNAS DRIVE • TEMPLE C ITY • CALIFORNIA 91780-2249 o (626) 285-2171
December 26, 2019
To the Honorable City Council,
The Comprehensive Annual Financial Report (CAFR) of the City of Temple City ("City") for t he year
ended June 30, 2019 , is hereby submitted as mandated by applicable State of California statues.
These statues require that the City annually issue a report on its fi nancial 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, 2019 , along with additional disclosures and financial information designed to enable
the reader to gain an understanding of the City's financial activities.
Eide Bailly, LLP, a firm of certified public accountants, has issued an unmodified ("clean") opinion on
the City's financial statements for the year ended June 30 , 2019. The independent auditor concluded ,
based upon the audit that the City's financial statements for the fiscal year ended June 30, 2019 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 independent aud itor'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 April 16, 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 Ange les County.
The 20 10 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.
ATTACHMENT A
LOCAL ECONOMY
The City of Temple City is a diverse, multicultural community centered on family values and active
civic engagement. Its population increased to almost 36,600 (+172) with a median age of 43.0 years.
The unemployment rate continues to be low at 3.8% for 2018.
The 2018 taxable sales for the City was $214.2 million which is an increase of 5.2% or $10.6 million
over 2017. The largest increase was in the category of Eating and Drinking Places which rose by
10.9% (+$7.14 million) and comprised 34.0% of the total taxable sales for 2018.
Assessed valuation ("AV") of citywide properties in FY 2018-19 increased by 6.9% from $4.96 billion
to $5.22 billion primarily due to a $242 million increase in the AV of residential properties. This growth
is mostly due to the Los Angeles County Assessor's annual increase in assessed value of up to 2%
and a net increase of 40 residential parcels. However, the average sales price of a single family
residence dropped to almost $808,000 in 2019 from $877,000 in 2018 which is a decrease of $69,000
(-7.9%).
The City adopted a balanced budget for FY 2019-20 without reducing services. Mid-year adjustments
are made to revenues and expenditures based on the economic changes during the year. It is
important that the City continue to monitor and control all potential expenditure increases as revenues
do not increase at the same rate. The City continues to ensure that it builds healthy reserves to handle
any downturn in the economy.
MAJOR ACCOMPLISHMENTS
The City of Temple City is and strives to continuously be a Great Public Service Oriented Organization
-and works toward be recognized by its citizens and its stakeholders for its innovative and exceptional
service to the community. Accomplishments for the Fiscal Year (FY) 2018-19 include:
Vision and Long-Range Planning
• Made substantial progress on the comprehensive update of the Zoning Code. Including
the Planning Commission's review and recommendation that the City Council approved the
Zoning Code.
• Initiated the development impact fee study.
• Completed a Zoning Code Ordinance related to the height of buildings on flag lots and the
lots in front of flag lots.
• Completed a review and recommendation to City Council on using Lyft to supplement the
City's public transportation.
Sound Fiscal Policy
• Continued to receive unmodified (i.e., "clean") audit findings on the City's financial reporting
via enhanced fiscal controls and checks and balances.
• Recognition of excellence in financial reporting from Government Finance Officers
Association of the United States and Canada.
ATTACHMENT A
• Increased Unassigned Fund Balance to $6.0 million in General Fund operating reserves.
Public Health and Safety
• Continued emergency preparation and training for residents through the Community
Emergency Response Team (CERT).
• Continued the successful Neighborhood Watch Program including monthly neighborhood
meetings.
Basic City Services
• Continued to digitize critical city documents, allowing for easy reference and improved public
transparency.
• Prepared 78 Council meeting agendas and meeting minutes.
• Published 14 legal and public hearing notices.
• Coordinated the March 3, 2020 Consolidated General Municipal election for three council
seats.
• Provided municipal record management including the preservation and protection of public
records.
• Recruited and filled vacancies for 3 City Commissions.
• Provided staff report for City's Youth Committee including meeting support and special
events.
• Completed 166 Public Records Requests.
Quality of Life
• Continued a robust offering of community events including an annual festival and numerous
community celebrations.
• The City continues to applaud and recognize volunteers for lending helping hands.
Communication and Special Projects
• Received a statewide communications award for Ea!TC, a social media campaign that
builds awareness of local and renowned eateries.
• Launched a rebrand of the award-winning CONNECT magazine to streamline content and
make information more accessible.
ATTACHMENT A
• Continued to provide engaging and informative posts on the City's social media accounts,
which averaged a 10% increase in followers.
• Initiated the relocation of Chamber of Commerce operations to the civic center for greater
visibility and service coordination.
• Finalized pre-construction activities for the Temple City Library renovation and expansion
project, which breaks ground in Feb. 2020.
• Updated the City's downtown parking strategy to address current and future public parking
needs.
• Completed pre-design activities for the proposed $2.7-million Primrose Park project.
• Initiated the City's first-ever pavement management plan, which now identifies a systematic
program of maintenance, repair and improvements for Temple City streets.
Sustainable Infrastructure
• Completed Federal Closeout Coordination of Highway Safety Improvement Program
projects including traffic signal upgrades and other safety enhancements citywide.
• Completed Pavement Management Program (PMP) Implementation developing a city-wide
pavement inventory and planning tools for upcoming pavement rehabilitation projects.
OTHER FINANCIAL INFORMATION
Internal Control
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control that it has
established for this purpose. The internal control structure is designed to protect the City's assets
from loss, theft, or misuse and to ensure that adequate accounting data is compiled for the preparation
of financial statements in conformity with GMP. Because the cost of internal control should not
exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance
that the financial statements are free of any material misstatements.
Budgetary and Accounting System
The City is required to adopt a budget for the following year before the end of each fiscal year. The
objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Council. The City's budgetary control is maintained at the
individual departmental level and any change in the adopted appropriations by a department requires
approval from the City Manager and/or City Council.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Report to the City of Temple City for its Comprehensive Annual Financial
ATTACHMENT A
Report (CAFR) for the fiscal year ended June 30, 2018. This was the seventh year that Temple City
has received this prestigious award. In order to be awarded a Certificate of Achievement, a report
must be published that satisfies both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR
continues to meet the Certificate of Achievement Program 's requirements and we are submitting it to
the GFOA to determine its eligibility for another certificate.
The City's CAFR was prepared through combined efforts of City staff. Special recognition is due the
Administrative Services Department staff for their effort to ensure timely and accurate reporting. I
would also like to thank the City Council and the City Manager for their continued support and interest
in planning and cond ucting the financial operations of the City in a responsible and progressive
manner.
Respectfully Submitted,
Susan Paragas
Administrative Services Director
City of Temple City, California
List of Elected Officials and Management Personnel
June 30, 2019
City Council
Nanette Fish, Mayor
Tom Chavez, Mayor Pro Tern
William Man, Councilmember
Cynthia Sternquist, Councilmember
Vincent Yu, Councilmember
Administrative and Department Heads
City Manager
Administrative Services Director
Assistant to the City Manager/Economic Development Manager
City Clerk
Community Development Director
Parks and Recreation Director
vi
ATTACHMENT A
Bryan Cook
Susan Pa ragas
Brian S. Haworth
Peggy Kuo
Michael D. Forbes
Cathy Burroughs
ATTACHMENT A
Electorate
I
City Council
I
I I I I I I
Planning Parks & Transportation &
Recreation City Attorney City Manager Public Safety Youth Committee
Commission Commission Commission
' I I I I
Management Administrative Community Parks &
Services Services Development Recreation
Department Department Department Department
vii
l..
I
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Temple City
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2018
Executive Director/CEO
viii
ATTACHMENT A
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EideBaill~
CPAs & BUSINESS ADVI SORS
Independent Auditor's Report
The Honorable Mayor and the Members of the City Council
City of Temple City, California
Report on the Financial Statements
ATTACHMENT A
We have audited the accompanying financial statements of the governmental activities, 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, 2019, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
What in spires you, in spires us. eidebailly.com
10681 Foo thill Blvd., Ste. 300 Rancho Cucamonga, CA 9 1730-383 1 T909.466.4 410 F 909.466.443 1 EOE
ATTACHMENT A
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of the City, as of June 30, 2019, and the respective changes in financial
position, and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison schedule for the General Fund, schedule of proportionate
share of the net pension liability, schedule of contributions, schedule of changes in the net OPEB liability
and schedule of OPEB contributions as listed in the table of contents, be presented to supplement the
basic financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The introductory section, combining and
individual non major fund financial statements and budgetary comparison schedules, and statistical
section, are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The combining and individual non major fund financial statements and budgetary comparison schedules
are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual
non major fund financial statements and budgetary comparison schedules are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on them.
2
ATTACHMENT A
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 26,
2019, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is 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 reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City's internal control over financial reporting and compliance.
Rancho Cucamonga, California
December 26, 2019
3
City of Temple City
Management's Discussion and Analysis
June 30, 2019
ATTACHMENT A
The following discussion and analysis of the City of Temple City's financial performance provides an
overview of the financial activities for the fiscal year ended June 30, 2019. Readers are encouraged
to consider the information presented here in conjunction with the accompanying basic financial
statements.
Financial Highlights
Government-wide Financial Statements:
• The City's net position increased by $2.6 million from $68.6 million as of June 30, 2018, to
$71.2 million as of June 30, 2019, primarily resulting from increases in current and other assets
with decreases in capital assets being depreciated and were offset with liability increases in
Other Post-Employment Benefits (OPEB) and pension liabilities;
• The total revenue from all sources was $21.7 million;
• The total cost of all City programs was $19.1 million; and
• The City's total debt increased by $1.3 million during the current fiscal year. The key factors in
this increase are the net increase in Pension and OPEB obligations of $1.3 million.
Fund Financial Statements:
• As of June 30, 2019, the City's governmental funds reported combined ending fund balances
of $32.0 million, an increase of $4.6 from the prior fiscal year. Approximately $6.0 million of the
balance is unassigned and is available for spending at the government's discretion;
• As of June 30, 2019, the total fund balance of the City's General Fund was $20.0 million,
an increase of $1.1 million from the prior year level of $18.90 million; and
• In the General Fund, revenues exceeded expenditures by $1.4 million, before other financing
sources/uses.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City ofTemple City's basic
financial statements. The City of Temple City's Comprehensive Annual Financial Report (CAFR) is
comprised of three components: Introduction, Financial Section and Statistical Section.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City of Temple City's finances, in a manner similar to a
private-sector business.
The government-wide financial statements include not only the City, but also all legal entities for which
the City is financially accountable, including the Successor Agency Private-Purpose Trust.
The statement of net position presents information on all of the City of Temple City's total assets and
deferred outflows of resources and total liabilities and deferred inflows of resources, with the difference
reported as total net position. Over time, increases and decreases in net position may serve as a
useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing related to cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes).
4
City of Temple City
Management's Discussion and Analysis
June 30, 2019
ATTACHMENT A
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.
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, 2019.
5
City of Temple City
Management's Discussion and Analysis
June 30, 2019
ATTACHMENT A
Net position. As noted earlier, net position may serve over time as a useful indicator of a government's
financial position.
The City's net position increased by $2.6 million from $68.6 million as of June 30, 2018, to $71.2 million
as of June 30, 2019, primarily resulting from increases in current and other assets with decreases in
capital assets being depreciated and were offset with liability increases in Other Post-Employment
Benefits (OPEB) and pension liabilities.
The largest portion of the City's net position is its investment in capital assets (e.g. land, infrastructure,
building and equipment) representing 72.0%, or $51.3 million, of its total net position. The City uses
these capital assets to provide services to citizens; consequently, these assets are not available for
future spending. A portion of the City's net position, $12.0 million or 16.8%, represents resources that
are subject to external restrictions on how they may be used. The remaining balance of unrestricted
net position of $7.9 million or 11.2% may be used to meet the government's ongoing obligations to
citizens and creditors.
City of Temple City
Statement of Net Position
For Fiscal Year Ended
Increase
2019 2018 (Decrease)
Current and other assets $ 35,256,299 $ 31,257,344 $ 3,998,955
Capital assets, net 51,292,676 52,306,797 (1,014,121)
Total assets 86,548,975 83,564,141 2,984,834
Deferred amounts related to pensions 2,109,892 2,480,080 (370,188)
Deferred amounts related to OPEB 1,440,177 229,963 1,210,214
Total deferred outflow of resources 3,550,069 2,710,043 840,026
Current and other liabilities 2,710,075 3,211,343 (501,268)
Long-term liabilities 15,270,241 13,995,432 1,274,809
Total liabilities 17,980,316 17,206,775 773,541
Deferred amounts related to pensions 622,336 439,051 183,285
Deferred amounts related to OPEB 301,747 50,095 251,652
Total deferred inflow of resources 924,083 489,146 434,937
Net position:
Net investment in capital assets 51,292,676 52,306,797 (1,014,121)
Restricted 11,957,258 8,518,526 3,438,732
Unrestricted 7,944,711 7,752,940 191,771
Total net position $ 71,194,645 $ 68,578,263 $ 2,616,382
6
City of Temple City
Management's Discussion and Analysis
June 30, 2019
ATTACHMENT A
The following chart shows the comparison of the three components of net position for Fiscal Years
2018-19 and 2017-18 (in millions):
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
□FY17/18
■FY 18/19
Invested in
Capital Assets,
Net of Related
Debt
$52.31
$51.29
Restricted Unrestricted Total Net
Position
$8.52 $7.75 $68.58
$11.96 $7.94 $71.19
Statement of Activities. Governmental activities increased the City's net pos ition by $2.6 million for
FY 2018-19. The total revenue for the fiscal year is $21. 7 million, which is an increase of $0.4
million from the prior year. The total expenses decreased by $1 .2 million, at $19.1 million, from the
prior year total of $20.3 million. The following table presents the comparative revenue and expense
data for fiscal years ended June 30, 2019 and 2018.
7
ATTACHMENT A
City of Temple City
Management's Discussion and Analysis
June 30, 2019
City of Temple City
Statement of Changes in Net Position
For Fiscal Year Ended
Increase
2019 2018 (decrease)
Program Revenues:
Charges for services $ 3,841,190 $ 4,051,525 $ (210,335)
Operating contributions and grants 5,132,393 4,751,123 381,270
Capital contributions and grants 454,608 1,295,350 (840,742)
General Revenues:
Taxes 11,171,563 10,717,924 453,639
Interest income 829,962 186,315 643,647
Other revenue 289,474 318,227 (28,753)
Total Revenues 21,719,190 21,320,464 398,726
Expenses:
General government 4,232,622 4,135,881 96,741
Community development 1,870,993 1,924,496 (53,503)
Public safety 5,952,525 5,878,016 74,509
Public works 2,837,774 4,668,273 (1,830,499)
Community services 4,208,894 3,659,828 549,066
Total Expenses 19,102,808 20,266,494 (1,163,686)
Increase (decrease) in net position 2,616,382 1,053,970 1,562,412
Net Position -Beginning 68,578,263 67,524,293 1,053,970
Net Position -Ending $ 71,194,645 $ 68,578,263 $ 2,616,382
8
City of Temple City
Management's Discussion and Analysis
June 30, 2019
ATTACHMENT A
Key elements of the significant revenues in FY 2018-19 are primarily because of an increase in sales
taxes, motor vehicle in -lieu fee , interest income and court fines. Taxes are comprised of sales tax,
property tax, franchise , transient occupancy tax and vehicle in lieu tax.
Revenues by Source
Year Ended June 30, 2019
Inte rest in come \
3 .8% j
/
Other reven ue
1.3%
___ Cha rg es for services
17.7%
' C ontributions &
g ra nt s
25.7%
Expenses of the governmental activities totaled $19.1 million, which is a decrease of $1 .2 million or
-5 . 7% over the prior year. Prior year's expenditures included additional Public Works expenses related
to pavement resurfacing and traffic signal maintenance.
Community se rvi ces ~
22.0% ""
Public w ork s ---.._ ,
14.9% "·
Expense by Activities
Year Ended June 30, 2019
9
/G eneral government
/ 22.1 %
Publi c safety
3 1.2%
Co mmunit y
dev elop me nt
9.8%
City of Temple City
Management's Discussion and Analysis
June 30, 2019
Financial Analysis of the City's Funds
ATTACHMENT A
The City uses fund accounting to ensure and demonstrate compliance with finance related legal
requirements. This section provides an analysis and discussion of individual funds and fund types
presented in the fund financial statements.
Governmental Funds. The City of Temple City's governmental funds reported a combined fund
balance of $32.0 million at the end of the fiscal year.
The General Fund's fund balance increased by $1.11 million after net transfers in FY 2018-19.
Revenues exceeded expenditures by $1.38 million, before other financing sources/uses. Financing
sources and uses netted a decrease to the Fund Balance of $269,895. 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. This includes public safety, public works, community development,
community services and administration. The largest expenditure is for public safety, which was $5.36
million for FY 2018-19.
The Proposition A Fund accounts for the City's share of additional sales tax collected in the County
of Los Angeles as a result of Propositions A and is restricted to finance public transportation projects.
The expenditures of $757,639 include the Dial-A-Ride operations of $526,630.
The State Gas Tax Fund accounts for the revenues and expenditures of the City's proportionate share
of gas tax monies collected by the State of California which are used for street construction, street
maintenance and engineering, and administrative expenses. For FY 2018-19, $479,462 was spent
primarily on street cleaning and maintenance.
The Lighting and Landscape District Fund is for the 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. $1.03 million was spent maintenance and upkeep.
Proprietary Funds. As noted earlier, net position may serve over time as a useful indicator of a
government's financial position. In the case of the Proprietary Fund, assets exceeded liabilities by
$510,000.
General Fund Financial and Budgetary Highlights
The General Fund is the chief operating fund of the City. The fund balance reported an increase of
$1.1 million at June 30, 2019. As a measure of the General Fund's liquidity, it may be useful to
compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned
fund balance represents 41. 7% of total General Fund expenditures, while total fund balance
represents 138.8% of that same amount.
Revenues: Actual revenues received were $15.8 million and were $311,806 higher than the final
budget. This increase was primarily due higher interest income and sales tax revenues.
Expenditures: Actual expenditures were $14.4 million and were lower than the final budget by $1.5
million largely due to lower operations in general government and public safety, specifically in the
community preservation and parking administration programs, and in capital outlay.
10
City of Temple City
Management's Discussion and Analysis
June 30, 2019
City of Temple City
General Fund Budgetary Summary
Revenues, Expenditures, and Changes in Fund Balance
June 30, 2019
Budgeted Amounts Actual
Ori~inal Final Amounts
REVENUES
Taxe~ $ 6,329,700 $ 6,559,865 $ 6,558,259
Licenses and permits 1,661,000 1,660,815 1,653,876
Intergovernmental 4,632,600 4,694,845 4,694,844
Charges for seivices 1,398,650 1,271,555 1,292,466
Interest Income 240,000 418,850 714,889
Other revenue 688,000 911,040 914,442
Total revenue 14,949,950 15,516,970 15,828,776
EXPENDITURES
General government 3,903,915 4,068,844 3,832,851
Community development 1,580,280 1,504,988 1,407,580
Public safety 5,547,510 5,592,011 5,358,737
Public works 1,079,365 1,097,508 1,169,785
Community services 2,420,580 2,375,830 2,267,603
Capital outlay 774,000 1,320,365 409,149
Total expenditures 15,305,650 15,959,546 14,445,705
Excess of revenues
over expenditures (355,700) (442,576) 1,383,071
OTHER FINANCING SOURCES (USES)
Transfers in 87,865 87,865 87,865
Transfers out (357,?soi (357,?soi (357,?soi
Total other financing sources (uses) (269,a9sl (269,a9sl (269,895)
Net change in fund balance (625,595) (712,471) 1,113,176
Fund Balance at Beginning of Year 13,782,430 11,498,880 18,930,811
Fund Balance at End of Year $13,156,835 $10,786,409 $20,043,987
11
ATTACHMENT A
Variance with
Final Budget
Positive
(Neaativel
$ (1,606)
(6,939)
(1)
20,911
296,039
3,402
311,806
235,993
97,408
233,274
(72,277)
108,227
911,216
1,513,841
1,825,647
1,825,647
7,431,931
$9,257,578
City of Temple City
Management's Discussion and Analysis
June 30, 2019
Capital Assets and Debt Administration
ATTACHMENT A
Capital Assets. As shown in the following table, as of June 30, 2019, the City of Temple City had
$51.3 million invested in capital assets, including land, buildings, improvements, furniture and
equipment, vehicles and infrastructure. See Note 6 for additional information.
Capital Assets
at Year-End
Land and land rights
Buildings and improvements
Furniture and equipment
Vehicles
Infrastructure
Subtotal
Less Depreciation
Net total, capital assets
$
$
Governmental
Activities
2019
15,508,348
13,805,823
1,149,296
646,562
39,531,466
70,641,495
19,348,819
51,292,676
Other Long-term liabilities. Other long-term liabilities of the City are comprised of compensated
absences, net OPEB liability, and net pension liability. The net OPEB liability pertains to the unfunded
status of the City's OPEB plan as of June 30, 2019. The net pension liability is based on a projection
of the City's long-term share of contributions to the pension plan relative to the projected contributions
of all participating employers, actuarially determined. A summary of other long-term liabilities follows:
Other Long-Term Liabilities
at Year-End
Net OPEB obligation
Compensated absences
Net pension liability
Total
Contacting the City's Financial Management
Governmental
Activities
$ 7,136,474
224,360
7,909,407
$ 15,270,241
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors
with a general overview of the City's finances and to show the City's accountability for the money it
receives. There currently are not any known facts, decisions or condition that are expected to have a
significant effect on the financial position of the City. If you have any questions about this report or
need additional financial information, contact the Administrative Services Department, at the City of
Temple City, 9701 Las Tunas Drive, Temple City, California, 91780, (626) 285-2171.
12
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Net Position
Jnne 30, 2019
ASSETS
Cash and investments
Accounts receivable
Interest receivable
Due from governmental agencies
Due from Successor Agency
Loans receivable
Prepaid items
Capital assets not being depreciated
Capital assets being depreciated, net
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount related to pensions
Deferred amount related to OPEB
Total Deferred Outflows of Resources
LIABILITIES
Accounts payable
Accrued payroll
Deposits payable
Miscellaneous liabilities
Noncurrent liabilities:
Due within one year -compensated absences
Due in more than one year:
Compensated abscnses
Proportionate share of net pension liability
Net OPEB liability
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred amounts related to pensions
Deferred amounts related to OPEB
Total Deferred Inflows of Resources
NET POSITION
Net investment in capital assets
Restricted for:
Education scholarship (nonspendable)
Public safety
Public works
Community services
Community development
Unrestricted
Total Net Position
See accompanying notes to financial statements,
ATTACHMENT A
Governmental
Activities
$ 32,669,328
298,214
43,008
928,947
26,400
1,280,284
10,118
15,508,348
35,784,328
86,548,975
2,109,892
1,440,177
3,550,069
1,538,657
149,102
997,349
38
24,929
224,360
7,909,407
7,136,474
17,980,316
622,336
301,747
924,083
51,292,676
171,994
9,648
10,190,611
167,000
1,418,005
7,944,711
$ 71,194,645
13
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Activities
Year Ended June 30, 2019
Functions/Programs
Governmental Activities:
General government
Community development
Pub! ic safety
Public works
Community services
Total Governmental Activities
Exeenses
$ 4,232,622
1,870,993
5,952,525
2,837,774
4,208,894
$ 19,102,808
General Revenues:
Taxes:
Property taxes
Program Revenues
Charges Operating
for Contributions
Services and Grants
$ 116,086 $
1,609,882 786,821
642,185 148,748
944,665 4,121,316
528,372 75,508
$ 3,841,190 $ 5,132,393
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
Net Position, End of Y car
See accompanying notes to financial statements.
14
ATTACHMENT A
Net (Expense)
Revenue and Change
in Net Position
Capital
Contributions Governmental
and Grants Activities
$ $ (4,116,536)
525,710
(5,161,592)
454,608 2,682,815
(3,605,014)
$ 454,608 (9,674,617)
3,495,364
4,694,844
2,189,206
58,424
569,736
163,989
829,962
9,669
279,805
12,290,999
2,616,382
68,578,263
$ 71,194,645
FUND FINANCIAL STATEMENTS
Government Fund Financial Statements
Proprietmy Fund Financial Statements
Fiducia,y Fund Financial Statements
ATTACHMENT A
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Description of Major Funds
June 30, 2019
Major Governmental Funds
General Fund
ATTACHMENT A
The General 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.
Nonmajor Governmental Funds
Nonmajor governmental funds include the Special Revenue Funds and the Permanent Fund. Since total assets,
liabilities and deferred inflows, revenues or expenditures of these funds do not exceed 10 percent of total
governmental funds, they do not meet the criteria to be classified as major funds.
See accompanying notes to financial statements.
15
CITY OF TEMPLE CITY, CALIFORNIA
Governmental Funds
Balance Sheet
June 30, 2019
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
Miscellaneous liabilities
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.
ATTACHMENT A
General
$ 21,262,821
290,727
42,720
54,347
642,293
26,400
l 0, 118
58,875
$ 22,388,301
$ 1,250,998
149,079
884,324
38
2,284,439
59,875
68,993
3,500,000
10,455,704
6,019,290
20,043,987
$ 22,388,301
16
CITY OF TEMPLE CITY, CALIFORNIA
Governmental Funds
Balance Sheet
June 30, 2019
Nonmajor
Governmental
Funds Total
$
$
$
$
10,896,474
7,487
288
286,654
1,221,409
12,412,312
287,659
23
54,347
113,025
455,054
171,994
11,785,264
11,957,258
12,412,312
$
$
$
$
32,159,295
298,214
43,008
54,347
928,947
26,400
10,118
1,280,284
34,800,613
1,538,657
149,102
54,347
997,349
38
2,739,493
59,875
240,987
11,785,264
3,500,000
10,455,704
6,019,290
32,001,245
34,800,613
See accompanying notes to financial statements.
ATTACHMENT A
17
CITY OF TEMPLE CITY, CALIFORNIA
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
Juue 30, 2019
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 financial
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 pensions
Deferred 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
ATTACHMENT A
$ 32,00 I ,245
70,641,495
(19,348,819)
(249,289)
(7,136,474)
(7,909,407)
59,875
2,109,892
(622,336)
1,440, I 77
(301,747)
510,033
$ 71,194,645
CITY OF TEMPLE CITY, CALIFORNIA
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2019
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines
Investment income
Rental income
Other
Total Revenues
EXPENDITURES
Current:
General government
Community development
Public safety
Public works
Community services
Capital outlay
Total Expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Changes in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
See accompanying notes to financial statements.
19
ATTACHMENT A
General
Fund
$ 6,558,259
1,653,876
4,694,844
1,292,466
624,968
714,889
32,636
256,838
15,828,776
3,832,851
1,407,580
5,358,737
1,169,785
2,267,603
409,149
14,445,705
1,383,071
87,865
(357,760)
(269,895)
1,113,176
18,930,811
$ 20,043,987
CITY OF TEMPLE CITY, CALIFORNIA
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2019
Nonmajor
Governmental
$
$
Funds
1,497,827
4,105,344
137,916
115,073
61,008
5,917,168
245,708
140,100
1,518,204
794,095
50,224
2,748,331
3,168,837
617,760
(347,865)
269,895
3,438,732
8,518,526
11,957,258
$
$
Total
8,056,086
1,653,876
8,800,188
1,430,382
624,968
829,962
32,636
317,846
21,745,944
3,832,851
1,653,288
5,498,837
2,687,989
3,061,698
459,373
17,194,036
4,551,908
705,625
(705,625)
4,551,908
27,449,337
32,001,245
See accompanying notes to financial statements.
20
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Governmental Fuuds
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities
Year Ended June 30, 2019
Net change in fund balances -total governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense. Adjustments for capital outlay
and the net depreciation expense is reported in the governmental activities
Revenues that are measurable but not available are deferred in the governmental funds
under the modified accrual basis of accounting.
Expenses reported in the statement of activities which do not require the use
of current financial resources are not reported as expenditures in governmental funds.
Net difference between OPEB expense recorded on the government wide
statement of activities and contributions paid
Net difference between pension expense recorded on the government wide
statement of activities and contributions paid
Compensated absences
The internal service fund is not a governmental fund. However, it is used by
management to charge the net cost of self insurance activities to individual funds.
The net revenue of the internal service fund is reported with government activities.
Change in net position of governmental activities
See accompanying notes to financial statements.
21
ATTACHMENT A
$ 4,551,908
(1,015,886)
(81,540)
(485,959)
(421,820)
14,895
54,784
$ 2,616,382
PROPRIETARY FUND
FINANCIAL STATEMENTS
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Description of Proprietary Fund
Year Ended June 30, 2019
Internal Service Fund
Selflnsurance Fund
ATTACHMENT A
To account for goods and services relating to insurance premiums provided by one department to other departments
on a cost reimbursement basis.
See accompanying notes to financial statements.
22
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Net Position
Proprietary Fund
June 30, 2019
ASSETS
Current assets:
Cash and investments
Total Assets
NET POSITION
Unrestricted
Total Net Position
See accompanying notes to financial statements.
23
$
$
ATTACHMENT A
Self Insurance
Internal
Service Fund
510,033
510,033
510,033
510,033
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Fund
Year Ended June 30, 2019
Operating revenues:
Interfund Charges
Total Operating Revenues
Changes in Net Position
Net Position -Beginning of the Year
Net Position -End of the Year
See accompanying notes to financial statements.
24
ATTACHMENT A
Self Insurance
Internal
Service Fund
$ 54,784
54,784
54,784
455,249
$ 510,033
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Cash Flows
Prnprietary Fund
Year Ended June 30, 2019
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 financing activities:
There were no significant noncash investing, capital, and financing activities during the year
ended June 30, 2019.
See accompanying notes to financial statements.
25
ATTACHMENT A
Self Insurance
Internal
Service Fund
$ 54,784
54,784
54,784
455,249
$ 510,033
$ 54,784
$ 54,784
FIDUCIARY FUNDS
FINANCIAL STATEMENTS
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Description of Fiduciary Fund
Year Ended June 30, 2019
Successor Agency Private-Purpose Trust Fund
ATTACHMENT A
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.
See accompanying notes to financial statements.
26
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Fiduciary Net Position
Jnne 30, 2019
ASSETS
Cash and investments
Cash with fiscal agent
Total Assets
LIABILITIES
Accounts payable
Accrued interest payable
Due to City
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
FIDUCIARY NET POSITION (DEFICIT)
Total Net Position (Deficit)
See accompanying notes to financial statements.
27
ATTACHMENT A
Successor Agency
Private-purpose
Trust Fund
$
$
1,405,843
32,664
1,438,507
32,490
29,538
26,400
530,000
2,395,000
3,013,428
(1,574,921)
CITY OF TEMPLE CITY, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Year Ended June 30, 2019
ADDITIONS
Tax increment
Total Additions
DEDUCTIONS
Administration
Interest expense and fiscal charges
Total Deductions
Changes in Net Position
Net Position -Beginning of Year
Net Position -End of Year
See accompanying notes to financial statements.
28
ATTACHMENT A
Successor Agency
Private-purpose
Trust Fund
$
$
530,605
530,605
32,750
33,504
66,254
464,351
(2,039,272)
(1,574,921)
ATTACHMENT A
NOTESTO
FINANCIAL STATEMENTS
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of the Reporting Entity
ATTACHMENT A
The City of Temple City, California (City) was incorporated on May 25, I 960, under the general laws of the State
of California. On April 16, 1971, the City adopted resolution number 71-1084 declaring itself a chatier 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 cir 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, pati 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 City Housing Authority
The City of Temple City Housing Authority (Housing Authority) was established on November I, 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 repolied as if it is pati 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) repmi
information on all of the nonfiduciary activities of the primary government and its component units. For the most
part, the effect of interfund activity has been removed from these statements, except for interfund services provided
and used. The City's governmental activities are suppmied by taxes and intergovernmental revenues.
29
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
ATTACHMENT A
The statement of activities demonstrates the degree to which the direct expenses of a given function or segments
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Indirect expenses are allocated based on the annual cost allocation plan. Program revenues include: (!)
charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and (2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items not properly included
among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. Major individual governmental
funds are reported as a separate column in the fund financial statements.
Measurement Focus. Basis of Accounting. and Financial Statement Presentation
The government-wide financial statements are rep01ted using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary funds financial statements. Revenues are recorded when earned
and expenses are recorded when the liability is incurred, regardless of the timing of the related cash flows. Fiduciary
funds, including the private-purpose trust fund, use the economic resources measurement focus and the accrual
basis of accounting. Property taxes are recognized as revenues in the fiscal year for which they are levied. Grants
and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have
been met.
Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contributions and 3) capital grants and contributions, including special
assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general
revenues include all taxes.
Governmental funds financial statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period. For this
purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current
fiscal period for property and sales tax, and 90 days for all other revenues. Expenditures generally are recorded
when the liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to
be susceptible to accrual; therefore, they have been recognized as revenues of the current fiscal period. Only the
portion of special assessments receivable due within the current fiscal period is considered to be susceptible to
accrual as revenue of the current period. All other revenue items are considered to be measurable and available
only when cash is received by the government.
30
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
ATTACHMENT A
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a
proprieta1y fund's principal ongoing operations. The principal operating revenue of the Internal 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 repmted as a proprieta1y fund in the fund financial statements, it is
incorporated into governmental activities in the government-wide financial statements.
Fund Types
The basic accounting and repotting 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 canying out specific activities or attaining certain objectives in accordance with
special regulations, restrictions or limitations.
The accounting records of the City are organized on the basis of the 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.
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 citizenry.
Major Funds
The City repotts the following major governmental fund:
• General Fund -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.
31
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
PROPRIETARY FUND TYPE:
Internal Service Fund
ATTACHMENT A
The Internal Service Fund is used to account for goods and services relating to insurance premiums provided by
one department to other departments on a cost reimbursement basis. The City's Internal Service Fund is the Self
Insurance Fund.
FIDUCIARY FUND TYPES:
Successor Agency Private-purpose Trust Fund
This fund is used to report the assets, liabilities and activities of the Successor Agency to the dissolved Temple City
Community Redevelopment Agency. Unlike the limited reporting typically utilized for the Agency Fund, the
Private-purpose Trust Fund rep01ts a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary
Net Position.
Cash Eqnivalents
For purposes of the statement of cash flows, cash equivalents are defined as sho1t-term, highly liquid investments
that are both readily convertible to known amounts of cash with maturities of three months or less at the time of
purchase. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City.
Cash and Investments
Cash and investments are reported in the accompanying balance sheet at fair value, except for certain certificates of
deposit that are reported at cost because they are not transferable and they have terms that are not affected by changes
in market interest rates.
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
53647.
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 I
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.
32
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended Jnne 30, 2019
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property Tax Calendar
ATTACHMENT A
The County of Los Angeles assesses, levies, and collects property taxes for the City. Property taxes levied for the
year ended June 30, 20 I 9 were due and payable in two installments on November I and February I and became
delinquent on December I 0th and April IO'', respectively. At the date of incorporation, the City elected to be a
no/low property tax city as an incentive for current and prospective residents to reside in the City.
The prope11y tax calendar is as follows:
Lien Date:
Levy Date
Due Date:
Delinquent Date:
January 1
July 1
First installment -November 1
Second installment -Februaiy 1
First installment -December 10
Second installment -April 10
Taxes are collected by Los Angeles County and are remitted to the City periodically. Dates and percentages are as
follows:
Prepaid Items
December IO
Janua1y 15
April 10
May 15
July 31
30%Advance
Collection No. 1
10% Advance
Collection No. 2
Collection No. 3
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items
in both the government-wide and fund financial statements. These are accounted for using the consumption method,
and accordingly, the expenditure is recorded in the period in which the goods or services are received.
Capital Assets
Capital assets (including infrastructure) are valued at cost where historical records are available and at an estimated
historical cost where no historical records exist. Donated capital assets are valued at their acquisition value on the
date received. Public domain (infrastructure) capital assets consist of streets, bridges, traffic signals, street lights,
bus shelters and sewers. Generally, the City capitalizes capital asset purchases in excess of $5,000 for general
capital assets, $50,000 for sewers (infrastructure) and $10,000 for all other infrastructure and an estimated useful
life in excess of one year.
Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in
the government-wide financial statements. Provision for depreciation is charged as an expense against operations
and accumulated depreciation is repo11ed on the statement of net position. The ranges of lives used for depreciation
purposes for each capital asset class are as follows:
33
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended Jnne 30, 2019
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Capital Assets (Continned)
Buildings & Improvements
Furniture and equipment
Vehicles
Infrastructure:
Streets
Bridges
Traffic signals
Deferred Outflows and Inflows of Resources
40 years
5-7 years
5 years
50-80 years
50 years
20 years
ATTACHMENT A
Under the modified accrual basis of accounting, it is not enough that revenue has been earned ifit is to be recognized
as revenue of the current period. Revenue must also be susceptible to accrual; it must be both measurable and
available to finance expenditures of the current fiscal year. If assets are recognized in connection with a transaction,
but those assets are not yet available to finance expenditures of the current fiscal year, then the assets must be offset
by a corresponding deferred inflow of resources. This type of deferred inflow is unique to governmental funds since
it is tied to the modified accrual basis of accounting.
The City repotts deferred outflows and inflows of resources. A deferred outflow of resources is a consumption of
net position or fund balance by the government that is applicable to a future repotting period. A deferred inflow of
resources represents an acquisition of net position or fund balance by the government that is applicable to a future
period.
The City repo1ts deferred outflows and inflows ofresources related to pensions and other post-employment benefits
(OPEB) on the government-wide statement of net position, under full accrual basis of accounting. Refer to Note 8
and Note IO for items identified as deferred inflows and outflows related.to pensions and OPEB as of June 30, 2019.
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.
34
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended Jnne 30, 2019
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Pensions
ATTACHMENT A
For purposes of measuring the net pension liability and deferred outflows/inflows ofresources 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 repm1ed 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 repmted at fair value, except for money market
investments and pa11icipating interest-earning investment contracts that have a maturity date at the time or purchase
of one year or less, which are reported at cost.
Fund 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
repo11ed 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 vary significantly,
depending upon their source. Consequently, the fund balance repm1ed 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 are 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.
• Restricted: Resources that are subject to externally enforceable legal restrictions; these restrictions would
be either 1) externally imposed by creditors (such as through debt covenants), grantors, contributors, or
laws or regulations of other governments or 2) imposed by law through constitutional provisions or enabling
legislation.
• Committed: Resources that are constrained to specific purposes by formal action approved by the City
Council, which is the City's highest level of decision making authority. The formal action that is required
to be taken to establish, modify, or rescind a fund balance is a resolution. The constraint remains binding
unless removed in the same formal manner by the City Council. Council action to commit fund balance
must occur within the fiscal reporting period while the amount committed may be determined subsequently.
35
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Yea.-Ended June 30, 2019
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund Balance (Continued)
ATTACHMENT A
• Assigned: Resources that are constrained by the City's intent to be used for specific purposes, but that are
neither restricted nor committed. The City Council delegates the authority to assign fund balance to the
City Manager for purposes of reporting in the annual financial statements. This was established by the
governing body in the GASB 54 Fund Balance Policy resolution adopted and approved on May 15, 2012.
• Unassigned: Within the General Fund, the residual resources, either positive or negative, in excess of what
can be properly classified in one of the other four fund balance categories. Within all other governmental
funds, the negative residual resources in excess of what can be properly classified as nonspendable,
restricted, or committed.
The City considers the restricted fund balances to have been spent when an expenditure is incurred for purposes for
which both unrestricted and restricted fund balance is available. When expenditures are incurred for purposes for
which amounts in any of the unrestricted fund balance classifications could be used, it is the policy of the City to
reduce the committed amounts first, followed by assigned amounts, and then unassigned amounts.
Net Position
The government-wide financial statements utilize a net position presentation. Net position is categorized as net
investment in capital assets, restricted and unrestricted. When both restricted and unrestricted resources are
available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they
are needed.
• Net investment in capital assets This category groups all capital assets, including infrastructure, into one
component of net position. Accumulated depreciation and the outstanding balances of debt that are
attributable to the acquisition, construction or improvement of these assets reduce the balance of this
category.
• Restricted net position -This categmy presents external restrictions imposed by creditors, grantors,
contributors, laws or regulations of other governments and restrictions imposed by law through
constitutional provisions or enabling legislation.
• Unrestricted net position This category represents the City's net position, which is not restricted for any
project or other purpose.
Use of Estimates
The preparation of financial statements in conformity 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.
36
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Prononncements Adopted in the Current Year
ATTACHMENT A
GASB Statement No. 83 -In November 2016, GASB issued Statement No. 83, Certain Asset Retirement
Obligations. This Statement requires the recognition of a liability and a corresponding deferred outflows of
resources associated with an asset retirement obligation based on the criteria and the measurement established in
the Statement. This Statement also requires disclosure of required information about the asset retirement
obligations. This Statement is effective for the fiscal year ended June 30, 2019; however, this Statement did not
have any impact on the City's financial statements.
GASB Statement No. 88 -In April 2018, GASB issued Statement No. 88, Certain Disclosures Related to Debt,
Including Direct Borrowings and Direct Placements. The primary objective of this Statement is to improve the
information that is disclosed in notes to government financial statements related to debt, including direct borrowings
and direct placements. It also clarifies which liabilities governments should include when disclosing information
related to debt. This Statement is effective for the fiscal year ended June 30, 2019. The City implemented this
Statement effective July 1, 2018; however, this Statement did not have a material impact on the City's financial
statements.
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. 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 repo1ting purposes and how those activities should be reported. This Statement is effective for repo1ting
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 reporting periods beginning after December 15, 2019.
GASB Statement No. 89 -In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred
before the End of a Construction Period. The objectives of this Statement are (a) to enhance the relevance and
comparability of information about capital assets and the cost of borrowing for a reporting period and (b) to simplify
accounting for certain interest costs. This Statement is effective for reporting periods beginning after December 15,
2019.
GASB Statement No. 90 -In August 2018, GASB issued Statement No. 90, Majority Equity Interests -An
Amendment ofGASB Statements No. 14 and No. 61. The objectives of this Statement are to improve the consistency
and comparability of repo1ting a government's majority equity interest in a legally separate organization and to
improve the relevance of financial statement information for ce1tain component units. The Statement is effective
for reporting periods beginning after December 15, 2018.
GASB Statement No. 91-In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The objectives
of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate
diversity in practice associated with (I) commitments extended by issuers, (2) arrangements associated with conduit
debt obligations, and (3) related note disclosures. The requirements of this statement are effective for reporting
periods beginning after December 15, 2020.
37
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 2-STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Excess of Expenditures Over Appropriations
Expenditures for the year ended June 30, 2019, exceeded appropriations in the following funds:
Fund Final Budget Expenditures
Major Funds:
General Fund:
Purchasing $ 249,325 $ 291,135
Building 693,918 694,165
General government buildings 292,668 370,230
Non-major Funds:
Camellia Permanent Fund $ $ 260
CDBG 221,405 245,708
Park Acquisition 4,381
NOTE 3 -CASH AND INVESTMENTS
ATTACHMENT A
Excess
$ 41,810
247
77,562
$ 260
24,303
4,381
Cash and investments at June 30, 2019 are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and investments
Fiducimy Fund:
Cash and investments
Cash with fiscal agent
Total Cash and Investments
Cash and investments as of June 30, 2019 consist of the following:
Cash on hand
Deposits with financial institutions
Investments
Total Cash and Investments
38
$ 32,669,328
1,405,843
32,664
$ 34 107 835
$ 2,100
3,552,823
30,552,912
$ 34,107,835
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 3 -CASH AND INVESTMENTS (CONTINUED)
ATTACHMENT A
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
Government Code (or the City's investment policy, where more restrictive). The table also identifies certain
provisions of the California Government 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 Government 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 Pmtfolio In One Issuer
Local Agency Bonds No 5 years None None
U.S. Treasury Obligations Yes 5 years None None
U.S. Agency Securities 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%
Certificates 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 NIA 20% 10%
Money Market Mutual Funds Yes N/A 20% None
Collateralized Bank Deposits Yes 5 years None None
Mortgage Pass-Through Securities No 5 years 20% None
County Pooled Investment Funds Yes N/A None None
Local Agency Investment Fund (LAIF) Yes N/A None None
* No more than 30% of surplus funds may be invested in Bankers Acceptances of any one commercial bank.
**
***
****
Commercial paper issuers must be U.S. Corporations with $500 million plus in assets. Purchases may not represent
more than l 0% 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 fund.
39
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended Jnne 30, 2019
NOTE 3 -CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
ATTACHMENT A
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market
interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination
of shorter-term and longer-term investments and by timing cash flows from maturities so that a pmtion of the
portfolio is maturing or coming close to maturity over time as necessary to provide the cash flow and liquidity
needed for operations.
Information about the sensitivity of the fair values of the City's investments, and those held by bond trustees, to
market interest rate fluctuations is provided by the following table that shows the distribution of the City's
investments by maturity:
Remaining Maturing ( in Months)
12 Months or 12 to 60
Total Less Months
State Investment Pool (LAIF) $ 7,567,092 $ 7,567,092 $
Los Angeles County Investment Pool 4,817,776 4,817,776
Medium-Term Notes 1,501,441 1,501,441
Federal Agency Securities 9,906,578 1,245,093 8,661,485
Certificates of Deposit 6,760,025 1,781,689 4,978,336
$ 30,552,912 $ 15,411,650 $ 15,141,262
The City can make withdrawals from LAIF and the Los Angeles County Investment Pool on demand. As of June
30, the weighted average maturity of the investments contained in the LAIF investment pool is approximately 8
months and for the Los Angeles County Investment Pool is approximately 54 7 days.
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required by (where applicable) the California Government Code, the City's
investment policy, or debt agreements, and the actual rating, as reported by Standard & Poor's, as of year-end for
each investment type:
Minimum Rating as of June 30, 2019
Legal Not
Amount Rating AAA/AA+ AA-/A Rated
State Investment Pool (LAIF) $ 7,567,092 N/A $ $ $ 7,567,092
Los Angeles County Investment Pool 4,817,776 N/A 4,817,776
Medium-Tenn Notes 1,501,441 A 501,785 999,656
Federal Agency Securities 9,906,578 N/A 9,409,279 497,299
Certificates of Deposit 6,760,025 N/A 6,760,025
$ 30,552,912 $ 9,911,064 $ 999,656 $ 19,642,192
40
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 3 -CASH AND INVESTMENTS (CONTINUED)
Concentration of Credit Risk
ATTACHMENT A
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, 2019, 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:
lssuel'
Federal Home Loan Mortgage Corporation
Federal Home Loan Bank
Custodial Credit Risk
Investment Type
Federal Agency Securities
Federal Agency Securities
Amount
$ 5,694,194
1,743,318
Percent of
Portfolio
19%
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 in the
possession of an outside party. The custodial credit risk for investments is the risk that: in the event of the failure
of the counterparty ( e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California Government Code and
the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial
credit risk for deposits or investments, other than the following provision for deposits: The California Government
Code requires that a financial institution secure deposits made by state or local governmental units by pledging
securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the
governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110 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 mortgage 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, 2019
NOTE 3 -CASH AND INVESTMENTS (CONTINUED)
Fair Value Classifications
ATTACHMENT A
Fair value measurements are categorized based on the valuation inputs used to measure fair value: Level I inputs
are quoted prices in active markets for identical asset assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs. Investments categorized as Level 2 are valued using the market
approach and quoted market prices.
Investments' fair value measurements are as follows as of June 30, 2019:
Investment Type Fair Value Level 1 Level2 Level 3
Investments:
Medium-Term Notes $ 1,501,441 $ $ 1,501,441 $
Federal Agency Securities 9,906,578 9,906,578
Certificates of Deposit 6,600,025 6,600,025
Total Leveled Investments 18,008,044 18,008,044
Investments:
Los Angeles County lnvestment Pool 4,817,776
State Investment Pool (LAIF) 7,567,092
Non-negotiable Certificates of Deposit 160,000
Total Investment Portfolio $ 30,552,912
As of June 30, 2019, the City's investments in government sponsored entities (e.g. FHLB, FHLMC, etc.), medium-
term notes and Ce1tificate of Deposit were considered Level 2 in the amount of $18,008,044. These investments
are value using the market valuation approach based on quoted prices for similar assets.
Investments in LAIF and LACP!F, are uncategorized as deposits and withdrawals are made on the basis of$! and
not fair value.
Investment in State Investment Pool
The City is a voluntary pa1ticipant in the Local Agency Investment Fund (LAIF) that is regulated by the California
Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's
investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-
rata share of the fair value provided by LA!F for the entire LAIF po1tfolio (in relation to the amo1tized cost of that
portfolio). The balance available for withdrawal is based on the accounting records maintained by LA!F, which are
recorded on an amortized cost basis.
Investment in County Investment Pool
The Los Angeles County Pooled Investment Fund (LACP!F) is a pooled investment fund program governed by the
Los Angeles County Board of Supervisors and administered by the Los Angeles County Treasurer and Tax
Collector. Investments in the LACPIF are highly liquid, as deposits and withdrawals can be made at any time
without penalty. The LACPIF does not impose any maximum investment limit. The fair value of the City's
investment in this pool is reported in the accompanying financial statements at amounts based upon the City's
prorated share of the fair value provided by the LACPIF for the entire LACPIF p01tfolio (in relation to the amortized
cost of that po1tfolio). The balance available for withdrawal is based on the accounting records maintained by the
LACPIF, which are recorded on an amortized cost basis.
42
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 4 -INTERFUND ACTIVITY
ATTACHMENT A
The following represents the interfund activity of the City for the year ended June 30, 2019:
Due From/To Other Funds:
Due from (receivable fund) Due to (payable fund) Amount
General Fund Non-major Governmental Funds $ 54 347
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
Nonmajor Governmental Funds
Nonmajor Governmental Funds
Total
Transfers Out
Nonmajor Governmental Funds
Nonmajor Governmental Funds
General Fund
$
$
Amount
87,865
260,000
357,760
705,625
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 the General Fund for the payment of certain programs such as Air Quality
Improvement program. The City also transfers monies between various funds for projects related to trees and
parkways and Dial-A-Ride program.
NOTE 5 -LOANS RECEIVABLE
Loans receivable consist of the following at June 30, 2019:
Descri tion
General Fund:
Low and Moderate Income Housing
Temple City Chamber of Commerce
Community Development Block Grant:
Home Improvement Loans
Total
Amount
$ 56,775 (A)
2,100 (B)
58,875
1,221,409 (C)
$ 1,280,284
(A) During the 2008-09 fiscal year, the City issued three housing loans totaling $56,775. These loans are zero interest loans and can
be deferred until the secured property is sold or changes title.
(B) On April 4, 1995, the City issued a loan to the Temple City Chamber of Commerce in the amount of$13,600 with an annual
payment amount of $500.
(C) The City uses Community Development Block Grant funds to issue loans to low and moderate income homeowners for repairs
of building and zoning code violations. These loans are low interest loans and can be deferred until the secured property is sold
or changes title. The maximum amount of each loan is $25,000.
43
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended Jnne 30, 2019
NOTE 6 -CAPITAL ASSETS
Capital asset governmental activity for the fiscal year ended June 30, 2019 was as follows:
Balance Balance
Governmental Activities: July I, 2018 Additions Deletions June 30, 2019
Capital assets not being depreciated:
Land $ 4,338,704 $ $ $ 4,338,704
Land improvements 2,494,650 2,494,650
Construction in progress 209,053 209,053
Infrastructure:
Land rights relating to streets 8,465,941 8,465,941
Total 15,299,295 209,053 15,508,348
Capital assets being depreciated:
Buildings 7,443,169 7,443,169
Improvements 6,362,654 6,362,654
Furniture, fixtures and equipment 1,099,599 49,697 1,149,296
Vehicles 646,562 646,562
Infrastructure:
Streets 35,083,585 35,083,585
Traffic signals 3,489,878 3,489,878
Bridges 958,003 958,003
Total 55,083,450 49,697 55,133,147
Less accumulated depreciation for:
Buildings 2,721,371 180,478 2,901,849
Improvements 3,008,346 154,230 3,162,576
Furniture, fixtures and equipment 956,302 40,240 996,542
Vehicles 520,851 3,009 523,860
Infrastructure:
Streets 8,544,378 776,254 9,320,632
Traffic signals 1,366,697 118,660 1,485,357
Bridges 958,003 958,003
Total 18,075,948 1,272,871 19,348,819
Capital assets being depreciated, net 37,007,502 (1,223,174) 35,784,328
Capital assets, net $ 52,306,797 $ (1,014,121) $ $ 51,292,676
44
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 6 -CAPITAL ASSETS (CONTINUED)
Depreciation expense is charged to operations, as follows:
General government
Community development
Public safety
Public works
Community services
Total Depreciation Expense ~ Governmental Activities
NOTE 7 -COMPENSATED ABSENCES
ATTACHMENT A
$ 168,480
111,729
138,304
5,492
848,866
$ 1,272,871
The following is a summary of changes in the City's long-term liabilities for the year ended June 30, 2019:
Compensated absences
Balance at
July l, 2018
$ 264,184
Additions
$ 20,554
Balance
Reductions June 30, 2019
$ (35,449) $ 249,289
For the compensated absences, the general fund has been used to liquidate such amounts.
NOTE 8 -DEFINED BENEFIT PENSION PLAN
Due Within
One Year
$ 24,929
Plan Description -All qualified permanent and probationary employees are eligible to participate in the City's
Miscellaneous Employee Pension Plan (Plan), a cost-sharing multiple employer defined benefit pension plan
administered by the California Public Employees' Retirement System (CalPERS). Benefit provisions under the
Plan are established by State statute and the City's resolution. CalPERS issues publicly available reports that include
a full description of the pension plan regarding benefit provisions, assumptions and membership information that
can be found on the Ca!PERS website.
Classic participants (defined as eligible participants prior to January 1, 2013) are required to contribute
8 percent of their annual covered salary. New or Public Employees' Pension Reform Act of 2013 (PEPRA)
patticipants ( defined as eligible employees brought into CalPERS membership for the first time on or after January
l, 2013) contribute at least half the normal cost rate as determined by CalPERS. The City contributes the remaining
amounts necessary to fund the benefits for its employees, using the actuarial basis adopted by the Ca!PERS Board
of Administration.
Benefits Provided -CalPERS provides service retirement and disability benefits, annual cost of living adjustments
and death benefits to Plan members, who must be public employees and beneficiaries. Benefits are based on years
of credited service, equal to one year of full time employment. Members with five years of total service are eligible
to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after
10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit,
or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified
by the California Public Employees' Retirement Law.
45
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
ATTACHMENT A
NOTE 8 -DEFINED BENEFIT PENSION PLAN (CONTINUED)
The Plans' provisions and benefits in effect at June 30, 20 l 9 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 PEPRA
Prior to On or after
January I, 2013 January I, 2013
2.5%@55 2%@62
5 years of service 5 years of service
monthly for life monthly for life
50-55 52-67
2.0% to 2.7% l.0%to 2.5%
8% 6.50%
11.42% 7.27%
Contributions -Section 208 l 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 1st 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 20 l 6, CalPERS collects employer
contributions for the Plan as a percentage of payroll for the normal cost po1tion 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 $787,740 for the year ended June 30, 2019.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions -As of
June 30, 2019, the City reported a net pension liability for its proportionate share of the net pension liability of the
Miscellaneous Plan in the amount of$7,909,407.
The City's net pension liability for the Plan was measured as the propottionate share of the net pension liability of
the collective cost-sharing plan. The City's net pension liability was measured as of June 30, 20 I 8 and the total
pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30,
2017, rolled forward to June 30, 2018 using standard update procedures. The City's prop01tion 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 participating employers, actuarially determined. The City's proportionate share of the
net pension liability for the Plan as of June 30, 2017 and 20 I 8 was as follows:
Proportion• June 30, 2017
Proportion -June 30, 2018
Change -Increase (Decrease)
46
0.08108%
0.08208%
0.00100%
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 8 -DEFINED BENEFIT PENSION PLAN (CONTINUED)
ATTACHMENT A
For the year ended June 30, 2019, the City recognized pension expense of $1,209,561. At June 30, 2019, the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Pension contributions subsequent to measurement date
Differences between expected and actual experience
Changes in assumptions
Changes in proportion and difference between City's
contributions and proportionate share of contributions
Changes in employer's proportion
Net difference between projected and actual earnings
on pension plan investments
Total
Deferred Outflows
of Resources
$
$
787,740
303,470
901,696
77,884
39,102
2,109,892
Deferred Inflows
of Resources
$
$
103,269
220,988
219,337
78,742
622,336
The amount of $787,740 repo1ted as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2020.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will
be recognized as pension expense as follows:
Year Ended
June 30,
2020 $ 696,914
2021 365,477
2022 (291,435)
2023 (71,140)
$ 699,816
47
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended Jnne 30, 2019
ATTACHMENT A
NOTE 8 -DEFINED BENEFIT PENSION PLAN (CONTINUED)
Actuarial Assumptions -The total pension liabilities in the June 30, 2017 actuarial valuations were determined
using the following actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions
Discount Rate
Inflation
Projected Payroll Growth
Salmy Increases
Investment Rate of Return
Mo11ality Rate Table
Miscellaneous
June 30, 2017
June 30, 2018
Entty-Age Normal Cost Method
7.15%
2.50%
3.00%
Varies by Entry Age and Service
7.15%
Derived using CalPERS' Membership Data for all Funds
All other actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study from December 2017, including updates to salary increase, mortality and retirement rates. The
Experience Study report can be obtained at Cal PERS' website.
Change of Assumptions -In 2018, demographic assumptions and inflation rate were changed in accordance to the
CalPERS Experience Study and Review of Actuarial Assumptions December 2017.
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 wonld 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 of7.15 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 repm1
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 short-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 includes 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 arrived at the same present
value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected
rate of return was then set equal to the single equivalent rate calculated above and rounded down to the nearest one
quai1er of one percent.
48
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 8 -DEFINED BENEFIT PENSION PLAN (CONTINUED)
ATTACHMENT A
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated
using the capital market assumptions applied to determine the discount rate and asset allocation.
Global Equity
Global Fixed Income
Inflation Assets
Private Equity
Real Estate
Liquidity
Asset Class
Total
(a) An expected inflation o/2.00% used/or this period
(b) An expected inflation of 2.92% used/or this period
Current Target
Allocation
50.0%
28.0%
0.0%
8.0%
13.0%
1.0%
100.0%
Real Return Real Return
Years 1 -10 (a) Years 11 + (b)
4.80% 5.98%
1.00% 2.62%
77.00% 1.81%
6.30% 7.23%
3.75% 4.93%
0.00% -0.92%
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate -The
following presents the City's propotiionate share of the net pension liability, calculated using the discount rate of
7.15 percent, as well as what the City's propotiionate share of the net pension liability would be if it were calculated
using a discount rate that is I-percentage point lower (6.15 percent) or I-percentage point higher (8.15 percent) than
the current rate:
City's proportionate share of the net pension liability
Discount Rate -l %
(6.15%)
$ 12,022,888
Current Discount Rate
(7.15%)
$ 7,909,407
Discount Rate+ l %
(8.15%)
$ 4,513,797
Pension Plan Fiduciary Net Position -Detailed information about the Plan's fiduciary net position is available in
the separately issued CalPERS financial rep01is.
NOTE 9 -LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City is a member of the California Joint Powers Insurance Authority ("CJPIA"). The CJPIA is composed of
117 California public entities and is organized under a joint powers agreement pursuant to California Government
Code §6500 et seq. The purpose of the CJPIA is to arrange and administer programs for the pooling of self-insured
losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and
other lines of coverage. The California JPIA began covering claims of its members in I 978. Each member
government has an elected official as its representative on the Board of Directors. The Board operates through a
nine-member Executive Committee.
49
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Yeal' Ended Jone 30, 2019
ATTACHMENT A
NOTE 9 -LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION (CONTINUED)
Self-Insurnnce Progrnms 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 Liability Program
Claims are pooled separately between police and general government exposures. ( l) 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!osses 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 2018-19, the CJPlA'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 statutmy limits are distributed based on
the outcome of cost allocation within the first and second loss layers.
For 2018-19, the CJPIA's pooled retention is $2 million per occurrence, with reinsurance to statutoiy limits under
California Workers' Compensation Law. Employer's Liability losses are pooled among members to $2 million.
Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer's Liability losses
from $5 million to $10 million are pooled among members.
50
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
ATTACHMENT A
NOTE 9 -LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION (CONTINUED)
Purchased Insurance
Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program which is available through the CJPIA. The
policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City.
Coverage is on a claims-made basis. There is a $50,000 deductible. The CJPIA has an aggregate limit of $50
million for the 3-year period from July I, 2017 through July 1, 2020. Each member of the CJPIA has a $10 million
sub-limit during the 3-year policy term.
Property Insurance
The City participates in the all-risk property protection program of the CJPIA. This insurance protection is
underwritten by several insurance companies. The City's property is currently insured according to a schedule of
covered property submitted by the City to the CJPIA. The City's property currently has all-risk property insurance
protection in the amount of$45,101,543. There is a $10,000 deductible per occurrence except for non-emergency
vehicle insurance which has a $2,500 deductible.
Earthquake and Flood Insurance
The City purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part
of the property protection insurance program of the CJPIA. City's property currently has earthquake protection in
the amount of$10,781,656. There is a deductible of5% per unit of value with a minimum deductible of$100,000.
Crime Insurance
The City purchases crime insurance coverage in the amount of$1,000,000 with a $2,500 deductible. The fidelity
coverage is provided through the CJPIA.
Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of cettain property to purchase low-
cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the
tenant user and is paid to the City according to a schedule. The City then pays for the insurance. The insurance is
facilitated by the CJPIA.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments
that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability
coverage in 2018-19.
CJPIA premiums for fiscal year 2019 were $608,207. Since claims are paid by the CJPIA and, in effect, charged
back to the City via future insurance deposits, no long-term liability for claims has been recorded.
51
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 10 -OTHER POSTEMPLOYMENT BENEFIT PLAN
Plan Description
ATTACHMENT A
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 surviving 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 l, 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, 2018, most recent measurement date, the benefit terms covered the following employees:
Inactive employees or beneficiaries currently receiving benefits payments
Active employees
Total
Contributions
30
45
75
The City establishes rates based on an actuarially determined rate. For the year ended June 30, 2019, the City's
expected contribution rate is 7.8 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, 2018, using an actuarial valuation as of June 30, 2019. A
summary of principal assumptions and methods used to determine the net OPEB liability is shown below.
52
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended Jnne 30, 2019
NOTE 10 -OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
Net OPEB Liability (Continued)
Actuarial Assumption -The total OPEB liability in the June 30, 2019 actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Payroll Growth
Investment Rate of Return
Mmiality
Mortality Improvement
Medical Trend
Entry-Age Normal Cost Method
4.10%
2.75%
Aggregate salary increases 3% annually. Merit increases based on CalPERS 1997 -
2015 Experience Study
6.00%
Based on CalPERS 1997 -2015 experience study
Post-retirement mortality projected fully generational with Scale MP-2018
Non-Medicare -7.25% for 2021, decreasing to an ultimate rate of 4% in 2076
Medicare -6.3% for 2021, decreasing to an ultimate rate of 4.0% in 2076
Changes of assumptions -The discount rate of 4.10 percent used for the June 30, 2018 measurement date was
decreased from 6.15 percent used for the June 30, 2017 measurement date. Expected long-term rate of return on
investments of 6.00 percent used for the June 30, 2018 measurement date was decreased from 6.25 percent used for
the June 30, 2017 measurement date.
Discount Rate -The discount rate used to measure the total OPEB liability was 4.10 percent. The discount rate was
updated based on the crossover test. The projection of cash flows used to determine the discount rate assumed that
the City will contribute pay-as-you-go only.
The long-term expected rate ofreturn on OPEB plan investments was determined using a building-block method in
which best-estimated ranges of expected future real rates of return (expected returns, net of OPEB plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-
term expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. The target allocation and best estimates of the arithmetic real rates of
return for each major asset class are summarized in the following table:
Target Long-Term Expected Real
Asset Class Allocation Rate of Return
Global Equity 48.0% 4.82%
Fixed Income 45.0% 1.47%
RE!Ts 2.0% 3.76%
Cash 5.0% 0.06%
Total 100%
53
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended Jnne 30, 2019
ATTACHMENT A
NOTE 10 -OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
Changes in Net OPEB Liability
Increase (Decrease)
Total OPEB Plan Fiduciaiy Net OPEB
Liability Net Position Liability
Balance at June 30, 2018 $ 7,067,860 $ 1,377,672 $ 5,690,188
Changes in the year:
Service Cost 242,691 242,691
Interest on the total OPEB liability 449,797 449,797
Differences between expected and actual experience (307,370) (307,370)
Assumption changes 1,371,245 1,371,245
Contributions -employer -expected retiree benefit payments 228,197 (228,197)
Net investment income 86,115 (86,115)
Benefit payments (227,588) (227,588)
Administrative expenses (4,235) 4,235
Net changes 1,528,775 82,489 1,446,286
Balance at June 30, 2019 $ 8,596,635 $ 1,460,161 $ 7,136,474
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 (3.10 percent) or one percentage point higher (5.10 percent) follows:
Net OPEB Liability $
1% Decrease
(3.10%)
8,692,535
Discount Rate
(4.10%)
$ 7,136,474 $
1% Increase
(5.10%)
5,913,121
Sensitivity of the Net OPEB 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 or one percentage point higher than current healthcare
cost trend rates follows:
1% Decrease Current Trend I% Increase
Net OPEB Liability $ 5,823,848 $ 7,136,474 $ 8,843,476
54
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 10 -OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB
ATTACHMENT A
For the year ended June 30, 2019, the City recognized an OPEB expense of$748,023. As of June 30, 2019, the
City repo1ted deferred outflows of resources and deferred inflows ofresources related to the Plan as follows:
Deferred Outflows Deferred Inflows of
of Resources Resources
OPEB contributions subsequent to measurement date $ 262,065 $
Changes in assumptions 1,178,112
Differences between actual and expected experience 264,078
Net difference between projected and actual earnings on
plan investments 37,669
Total $ 1,440,177 $ 301,747
$262,065 reported as deferred outflows of resources related to contributions subsequent to the measurement date
will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2020. Other amounts reported
as deferred outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as
follows:
Year ended
June 30, Amortization
2020 137,292
2021 137,292
2022 137,293
2023 149,818
2024 149,841
Thereafter 164,829
Total $ 876,365
55
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended Jnne 30, 2019
NOTE 11-FUND BALANCE CLASSIFICATIONS
Nonmajor
Governmental
General Funds Totals
Nonspendable
Prepaid items $ 10, 118 $ $ 10,118
Educational scholarship 171,994 171,994
Loans receivable 58,875 58,875
Subtotal 68,993 171,994 240,987
Restricted
Community development 1,418,005 1,418,005
Public safety 9,648 9,648
Community services 167,000 167,000
Public works 10,190,611 10,190,611
Subtotal 11,785,264 11,785,264
Committed
Emergency/disasters 50,000 50,000
Liquidity 2,000,000 2,000,000
Local economic uncertainty 1,450,000 1,450,000
Subtotal 3,500,000 3,500,000
Assigned
Facilities management 3,540,000 3,540,000
Technology replacement 40,792 40,792
Economic development 2,083,273 2,083,273
Opportunities for one-time expenditures 4,791,639 4,791,639
Subtotal 10,455,704 10,455,704
Unassigned 6,019,290 6,019,290
Total $ 20,043,987 $ 11,957,258 $ 32,001,245
On June 18, 2019, the City reaffirmed the committed and assigned fund balance classifications for the General Fund.
At June 30, 2019, 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
$10,455,704
Any remaining fund balance at the close of the fiscal year will be designated as Unassigned.
56
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
NOTE 12 -CONTINGENT LIABILITIES/COMMITMENTS
ATTACHMENT A
Various claims and suits have been filed against the City in the normal course of business. Although the outcome
of these matters is not presently determinable in the opinion of legal counsel, the resolution of these matters will
not have a material adverse effect on the financial condition of the City.
During fiscal year 2016-17, the City agreed to contribute toward the County of Los Angeles Library expansion.
The City's total commitment is $1,950,000, with $1,500,000 remaining as of June 30, 2019.
NOTE 13 -SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT
AGENCY
The accompanying financial statements also include the Private-purpose Trust Fund for the Successor Agency to
the City's former Redevelopment Agency (Successor Agency). The City, as the Successor Agency, serves in a
fiduciary capacity, as custodian for the assets and to wind down the affairs of the former Redevelopment Agency.
Its assets are held in trust for the benefit of the taxing entities within the former Redevelopment Agency's boundaries
and as such, are not available for the use of the City.
Disclosures related to the certain assets and long-term liabilities of the Successor Agency are as follows:
Agency's Payable to the City
As of June 30, 2019, the Successor Agency owes the City $26,400 for expenses by the former redevelopment agency
to suppo1t redevelopment activities.
Information about the Outstanding Bonds of the Successor Agency Trust Fund
TAX ALLOCATION REFUNDING BONDS, SERIES 2016
On March 31, 2016, the Successor Agency issued $2,150,000 Tax-exempt Tax Allocation Refunding Bonds and
$2,240,000 Taxable Tax Allocation Refunding Bonds ("Bonds") for a total of $4,390,000. Proceeds from the sale
of the Bonds will be used to refund the Refunding Bonds Series 2005. The Series 2005 bonds were originally issued
to refund the Temple City Financing Authority, 1993 Revenue Bonds for the Rosemead Boulevard Redevelopment
Project. The refunding resulted in an economic gain of $275,962 with a percentage savings of refunded bonds of
5.67 percent and debt service savings of$!, 154,885. The principal of the Bonds is payable commencing September
I, 2016 through September 1, 2024 and interest payable is payable semiannually each March and September
beginning September I, 2016. Interest rates are 2.40 percent fixed on the Tax-Exempt bonds and 3.72 percent on
the Taxable bonds. The principal amount outstanding at June 30, 2019 is $2,925,000.
The principal of, premium, if any, and interest on 2016 Tax Allocation Refunding Bonds shall be payable from and
secured by the following: (i) a priority pledge of the tax revenues allocated to the Issuer by the County-Controller-
Auditor from the Issuer's Redevelopment Obligation Payment Schedule, after amounts required for pass-through
payments, including negotiated pass through payments and statutory pass-through obligations; and (ii) all funds and
accounts to be held in connection with the Bonds and all investment earnings on such fund and accounts.
Additionally, the City will be charged a 12% interest rate per year on overdue installments of principal with
reasonable fees and expenses of the Trustee (including attorney fees and expenses).
57
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Financial Statements
Year Ended June 30, 2019
ATTACHMENT A
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,
2019 are as follows:
Year Ending
June 30, Principal
2020 $ 530,000
2021 545,000
2022 565,000
2023 580,000
2024 345,000
2025 360,000
Total $ 2,925,000
Deficit Net Position
Interest
$ 80,241
63,249
45,672
27,510
13,836
4,683
$ 235,191
Total
$ 610,241
608,249
610,672
607,510
358,836
364,683
$ 3,160,191
As of June 30, 2019, the Successor Agency Private-Purpose Trust Fund had a deficit net position of $1,574,921.
This will be reduced with future receipt of distributions from the Redevelopment Property Tax Trust Fund from the
County.
58
ATTACHMENT A
REQUIRED SUPPLEMENTARY INFORMATION
ei deba ill y.com
ATTACHMENT A
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 st.atements as required supplementary information.
59
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Budgetary Comparison Schedule
General Fund
Year Ended June 30, 2019
Variance with
Final Budget -
Bud~eted Amounts Actual Positive
Original Final Amounts {Nes;ative)
REVENUES
Taxes:
Real estate transfer tax $ 200,000 $ 164,000 $ 163,989 $ (11)
Sales and use tax 2,100,000 2,270,750 2,270,746 (4)
Franchise tax 530,000 569,750 569,736 (14)
Transient occupancy tax 60,000 60,000 58,424 (1,576)
Property tax allocation -3,439,700 3,495,365 3,495,364 (I)
Total taxes 6,329,700 6,559,865 6,558,259 (1,606)
Licenses and permits:
Business license fees 200,000 200,000 192,947 (7,053)
Building permit fees 950,000 868,820 869,037 217
Parking permit fees 85,000 85,000 80,355 (4,645)
Encroachment permit fees 160,000 192,360 192,360
Animal license fees 43,000 43,000 41,318 (1,682)
Vehicle impound fees 11,000 11,000 17,217 6,217
Temp parking permit fees 142,000 202,325 202,335 10
Code enforcement fees 70,000 58,310 58,307 (3)
Tota! licenses and permits 1,661,000 1,660,815 1,653,876 {6,939)
Intergovernmental:
In lieu vehicle license fees 4,632,600 4,694,845 4,694,844 (I)
Total intergovernmental 4,632,600 4,694,845 4,694,844 (1)
Charges for services:
Shared maintenance charges 4,350 4,350 4,350
Zoning fees 137,000 154,265 154,307 42
Recreation fees 566,300 506,300 528,371 22,071
Plan check fees 570,000 472,640 472,641 1
Facility rental fees 54,000 54,000 56,952 2,952
PW/Engineering fees 67,000 80,000 75,845 {4,155)
Total charges for services 1,398,650 1,271,555 1,292,466 20,911
Fines, forfeitures and penalties:
Court fines 475,000 624,970 624,968 (2)
Investment income:
Interest ~ Securities 97,000 122,835 122,832 (3)
Interest ~ Others 20,000 237,595 257,909 20,314
Interest ~ CD 123,000 58,420 94,970 36,550
Change in value of investment 239,178 239,178
Total investment income 240,000 418,850 714,889 296,039
Other:
AB939 reimbursement 15,000 15,000 9,669 (5,33 I)
Recyclable revenue 25,000 9,155 9,156 1
Rental income 24,000 34,000 32,636 (1,364)
Other reimbursement 100,000 178,915 182,754 3,839
Donation 12,000 12,000 9,200 (2,800)
Sundry 2,000 2,000 4,596 2,596
CRA/LLD reimbursement 35,000 35,000 41,463 6,463
Total other income 213,000 286,070 289,474 3,404
Total revenues 14,949,950 15,516,970 15,828,776 311,806
60
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Budgetary Comparison Schedule
General Fund
Year Ended June 30, 2019
Variance with
Final Budget~
Budgeted Amounts Actual Positive
Original Fina! Amounts (Negative)
EXPEND !TURES
General government:
City council $ 180,870 $ 180,870 $ 160,185 $ 20,685
City manager 982,545 1,122,545 993,544 129,001
City clerk 330,740 333,553 325,660 7,893
Accounting 612,700 617,013 610,186 6,827
City attorney 320,000 331,090 33!,087 3
Support services 152,780 153,405 129,651 23,754
Insurance benefits 1,074,955 1,081,043 991,403 89,640
Purchasing 249,325 249,325 291,135 (41,810)
Total general government 3,903,915 4,068,844 3,832,851 235,993
Community development:
Planning 823,000 778,375 681,890 96,485
Housing 32,445 32,695 31,525 1,170
Building 724,835 693,918 694,165 (247)
Total community development 1,580,280 1,504,988 1,407,580 97,408
Public safety:
Law enforcement 4,471,375 4,491,500 4,406,452 85,048
Traffic engineering 37,700 37,763 34,331 3,432
Emergency services 159,135 160,010 144,346 15,664
Community preservation 539,180 561,180 495,381 65,799
Parking administration 340,120 341,558 278,227 63,331
Total public safety 5,547,510 5,592,01 I 5,358,737 233,274
Public works:
Parking facilities 102,425 103,550 100,157 3,393
Administration & engineering 697,290 701,290 699,398 1,892
General government buildings 279,650 292,668 370,230 (77,562)
Total public works 1,079,365 1,097,508 1,169,785 (72,277)
Community services:
Recreation/human services 1,289,120 1,248,495 1,185,020 63,475
Parks ~ maintenance/facilities 1,131,460 1,127,335 1,082,583 44,752
Total community services 2,420,580 2,375,830 2,267,603 108,227
Capital outlay 774,000 1,320,365 409,149 911,216
Total expenditures 15,305,650 15,959,546 14,445,705 1,513,841
Excess (deficiency) of revenue
over expenditures (355,700) (442,576) 1,383,071 1,825,647
OTHER FINANCING SOURCES (USES)
Transfers in 87,865 87,865 87,865
Transfers out (357,760) (357,760) (357,760)
Total other financing sources (uses) (269,895) (269,895) (269,895)
Net change in fund balances (625,595) (712,471) 1,113,176 1,825,647
Fund Balance at Beginning of Year 13,782,430 11,498,880 18,930,811 7,431,931
Fund Balance at End of Year $ 13,156,835 $ 10,786,409 $ 20,043,987 $ 9,257,578
61
CITY OF TEMPLE CITY, CALIFORNIA
Notes to Budgetary Comparison Schedule
Year Ended June 30, 2019
NOTE I -BUDGETS AND BUDGETARY ACCOUNTING
ATTACHMENT A
The City adopts an annual budget prepared on the modified accrual basis for all of its governmental funds except
Parking Concession and Affordable Housing fund. 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 depaiiment level. Reserves for
encumbrances are not recorded by the City.
62
CITY OF TEMPLE CITY, CALIFORNIA
Schedule of Proportionate Share of the Net Pension Liability
Last Ten Years*
As of June 30, 2019
2019 2018
Proportion of the net pension liability 0.08208% 0.08108%
Proportionate share of the 11et pension liability $ 7,909,407 $ 8,041,060
Covered payroll 3,534,081 3,324,680
Proportionate share of the net pension liability as a
percentage of covered payroll 223.80% 241.86%
Plan fiduciary net position as a percentage ofthe
total pension liability 75.30% 73.31%
Notes to Schedule:
• Fiscal year 2015 was the 1st year of implementation .
ATTACHMENT A
2017 2016 2015
0.08004% 0.08021% 0.06544%
$ 6,925,534 $ 5,505,224 $ 4,072,235
2,952,148 2,785,261 2,820,374
234.59% 197.66% 144.39%
74.06% 78.40% 79.82%
Changes of Ass11111plimi
The disco11nt rate changed from 7.65 percent used for the June 30, 2016 measurement date to 7 .15 percent used for the June 30, 2017 measurement date.
63
CITY OF TEMPLE CITY, CALIFORNIA
Schedule of Contributions
Last Ten Years*
As of June 30, 2019
Actuarially determined contributions
Contributions in relation to the actuarially determined contributions
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation.
2019 2018
$ 787,740 $ 700,176
787,740 700,176
$ $
$ 3,454,883 $ 3,534,081
22.80% 19.81%
64
ATTACHMENT A
2017 2016 2015
$ 629,063 $ 556,380 $ 444,577
629,063 556,380 444,577
$ $ $
$ 3,324,680 $ 2,952,148 $ 2,785,261
18.92% 18.85% 15.96%
CITY OF TEMPLE CITY, CALIFORNIA
Schedule of Changes in the Net OPEB Liability
Last Ten Yeal's*
As of June 30, 2019
Total OPEB Liability
Service cost
Interest on the total OPEB liability
Differences between actual and expected experience
Changes in assumptions
Benefit payments, including refunds of employee contributions
Implicit rate subsidy fulfilled
Net change in total OPEB liability
Total OPEB liability-beginning
Total OPEB liability -ending (a)
Plan fiduciary net position
Contributions• employer expected retiree benefit payments
Contributions -employer implicit subsidy
Net investment income
Benefit payments
Implicit rate subsidy fulfilled
Administrative expenses
Net change in plan fiduciary net position
Plan fiduciary net position -beginning
Plan fiduciary net position -ending (b)
Net OPEB liability -ending (a)-(b)
Plan fiduciary net position as a percentage of the total OPEB liability
Covered-employee payroll
Net OPEB liability as percentage of covered-employee payroll
Notes to Schedule:
* -Fiscal year 2018 was the !st year of implementation.
65
$
$
$
$
$
ATTACHMENT A
2019 2018*
242,691 $ 228,759
449,797 422,018
(307,370)
1,371,245
(227,588) (172,603)
(40,290)
1,528,775 437,884
7,067,860 6,629,976
8,596,635 $ 7,067,860
228,197 $ 172,603
40,290
86,115 133,506
(227,588) (172,603)
(40,290)
(4,235) (7,413)
82,489 126,093
1,377,672 1,251,579
1,460,161 1,377,672
7,136,474 $ 5,690,188
16.99% 19.49%
3,302,589 $ 2,809,688
216.09% 202.52%
CITY OF TEMPLE CITY, CALIFORNIA
Schedule of OPEB Contributions
Last Ten Years*
As of June 30, 2019
Actuarially determined contribution
Contributions in relation to the actuarially determined contributions
Contribution deficiency ( excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll
Notes to Schedule
Valuation date:
Methods and assumptions used to
determine contribution rates:
Actuarial cost method
Amortization method
Amo1tization period
Asset valuation method
Inflation
6/30/2019
Entry Age Normal Cost Method
Level percent of payroll
21-year fixed period
Market value
2.75%
$
$
ATTACHMENT A
2019 2018*
726,000 $ 311,743
(262,065) (229,963)
463,935 $ 81,780
3,340,220 3,302,589
7.85% 6.96%
Medical trend
Mortality
Non-Medicare -7 .25% for 202 l, decreasing to an ultimate rate of 4% in 2076
Medicare-6.3% for 2021, decreasing to an ultimate rate of 4% in 2076
CalPERS 1997-2015 experience study
Mortality improvement Post-retirement mortality projected fully generational with Scale MP-2018
* -Fiscal year 2018 was the 1st year of implementation.
66
ATTACHMENT A
SUPPLEMENTARY INFORMATION
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NONMAJOR
GOVERNMENTAL FUNDS
ATTACHMENT A
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2019
Special Camelia
Revenue Permanent
Funds Fund Totals
ASSETS
Cash and investments $ 10,724,768 $ 171,706 $ 10,896,474
Accounts receivable 7,487 7,487
Interest receivable 288 288
Loans receivable 1,221,409 1,221,409
Due from other governments 286,654 286,654
Prepaid items
Total Assets $ 12,240,318 $ 171,994 $ 12,412,312
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 287,659 $ $ 287,659
Accrued payroll 23 23
Due to other funds 54,347 54,347
Refundable deposits 113,025 113,025
Total Liabilities 455,054 455,054
Fund balances:
Nonspendable 171,994 171,994
Restricted I 1,785,264 11,785,264
Total Fund Balances 11,785,264 171,994 11,957,258
Total Liabilities and
Fund Balances $ 12,240,318 $ 171,994 $ 12,412,312
67
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2019
Special Camelia
Revenue Permanent
Funds Fund Totals
REVENUES
Taxes $ 1,497,827 $ $ 1,497,827
Intergovernmental 4,105,344 4,105,344
Charges for services 137,916 137,916
Fines
Investment income 113,969 1,104 115,073
Other 61,008 61,008
Total Revenues 5,916,064 1,104 5,917,168
EXPENDITURES
Current:
Community development 245,708 245,708
Public safety 140,100 140,100
Public works 1,518,204 1,518,204
Community services 793,835 260 794,095
Capital outlay 50,224 50,224
Total Expenditures 2,748,071 260 2,748,331
Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,167,993 844 3,168,837
OTHER FINANCING SOURCES (USES)
Transfers in 617,760 617,760
Transfers out (347,865) (347,865)
Total Other Financing Sources (Uses) 269,895 269,895
Net Change in Fund Balances 3,437,888 844 3,438,732
Fund Balances at Beginning of Year 8,347,376 171,150 8,518,526
Fund Balances at End of Year $ 11,785,264 $ 171,994 $ 11,957,258
68
ATTACHMENT A
NONMAJOR
SPECIAL REVENUE FUNDS
CITY OF TEMPLE CITY, CALIFORNIA
Description of Nonmajor Special Revenne Fnnds
Jnne 30, 2019
ATTACHMENT A
The following Special Revenue Funds have been classified as nonmajor funds in the accompanying financial
statements:
Citizens Option for Public Safety (COPS) Fund -To account for the revenues received from the California
Department of Justice to be restricted to enhance existing law enforcement services.
Public Transportation -Proposition A Fund -To account for the City's share of additional sales tax collected in the
County of Los Angeles as a result of Proposition A. The fund is restricted to finance public transportation projects.
Public Transportation -Proposition C Fund -To account for the City's share of additional sales tax collected in the
County of Los Angeles as a result of Proposition C. The fund is restricted to finance public transportation projects.
Used Oil Fund-To account for the revenues and expenditures of the Used Oil Recycling Block Grant.
State Gas Tax Fund -To account for the revenues and expenditures of the City's propo1tionate share of gas tax
monies collected by the State of California which are used for street construction, street maintenance and
engineering, and administrative expenses.
Traffic Congestion Relief Sect. 2182 Fund -To account for revenues and expenditures related to Traffic
Congestion Relief Program, pursuant to Section 2182 of the Street and Highways Code.
CDBG Fund -To account for resources in managing the different programs under the Community Development
Block Grant funded by the U.S. Department of Housing and Urban Development.
Air Quality Improvement District Fund To account for the City's share of automobile registration fees collected
from the State and distributed to the City by the South Coast Air Quality Management District. The funds are used
to improve transportation systems and reduce the reliance on private vehicles.
Measure R Fund-These are similar to local return type funds to be used for traffic relief and transportation upgrades
citywide over the next 30 years. These funds may be for projects such as pothole repairs, major street resurfacing,
left-turn signals, bikeways, pedestrian improvements, streetscapes, traffic signal synchronization, local transit
services and programs.
Parking Concession Fund -To account for revenues and expenditures related to the operation of the parking
concession agreements.
Affordable Housing Fee Fund An optional development impact fee used on City approved affordable housing
programs geared towards assisting low-income households (e.g. handy worker grant, home improvement loan,
Brush with Kindness grant, senior housing development, first-time homebuyers program, etc.).
Sewer Reconstruction Fund To account for special fees collected to be used for new sewer lines and sewer line
replacement.
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 through
the improvement of neighborhood parks and recreation facilities for youth and senior citizens.
69
CITY OF TEMPLE CITY, CALIFORNIA
Description of Nonmajor Special Revenue Funds
June 30, 2019
ATTACHMENT A
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 transp01tation 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 1, 2017.
Park Acguisition 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 Art 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 particular art piece for the impact fee, it shall be deposited into the
City's Public A1t Fund.
70
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30, 2019
Public Public
Transportation Transportation
COPS Prop A PropC
ASSETS
Cash and investments $ 32,998 $ 1,238,184 $ 1,759,584
Accounts receivable 7,227
Loans receivable
Due from other governments
Total Assets $ 32,998 $ 1,245,411 $ 1,759,584
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 23,350 $ 64,047 $
Accrued payroll
Due to other funds
Refundable deposits
Total Liabilities 23,350 64,047
Fund balances:
Restricted 9,648 l,181,364 1,759,584
Total Fund Balances 9,648 1,181,364 1,759,584
Total Liabilities and
Fund Balances $ 32,998 $ 1,245,411 $ 1,759,584
71
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fnnds
Combining Balance Sheet
Jnne 30, 2019
Used Oil
$ 15,561
$ 15,561
$ 7,413
7,413
8,148
8,148
$ 15,561
$
$
$
$
State
Gas Tax
503,056
503,056
52,590
52,590
450,466
450,466
503,056
$
$
$
$
Traffic
Cong Relief
Section 2182
83,387
83,387
83,387
83,387
83,387
72
$
$
$
$
COBO
1,221,409
91,872
1,313,281
37,524
54,347
91,871
1,221,410
1,221,410
1,313,281
$
$
$
ATTACHMENT A
Air Quality
Improvement
District
176,203
12,244
188,447
188,447
188,447
$ 188,447
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenne Funds
Combining Balance Sheet
June 30, 2019
ASSETS
Cash and investments
Accounts receivable
Loans receivable
Due from other governments
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued payroll
Due to other funds
Refundable deposits
Total Liabilities
Fund balances:
Restricted
Total Fund Balances
Total Liabilities and
Fund Balances
Measure R
$ 1,043,109
$ 1,043,109
$
1,043,109
1,043,109
$ 1,043,109
73
ATTACHMENT A
Parking Affordable
Concession Housing
$ I 0,000 $ 157,000
$ I 0,000 $ 157,000
$ $
10,000 157,000
10,000 157,000
$ 10,000 $ 157,000
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30, 2019
Sewer
Reconstruction
$ 974,171
$ 974,171
$
974,171
974,171
$ 974,171
$
$
$
$
Road
Maintenance
Rehab Act
737,540
119,167
856,707
7,036
7,036
849,671
849,671
856,707
$
$
$
$
1992/1996
Park Bond Measure M
$ 717,984
$ 717,984
$ 3,836
3,836
714,148
714,148
$ 717,984
74
$
$
$
$
ATTACHMENT A
Park
Acquisition
109,802
109,802
109,802
109,802
109,802
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30, 2019
Lighting and
Landscape
District Public Art Fee Total
ASSETS
Cash and investments $ 2,933,744 $ 232,445 $ 10,724,768
Accounts receivable 260 7,487
Loans receivable 1,221,409
Due from other governments 63,371 286,654
Total Assets $ 2,997,375 $ 232,445 $ 12,240,318
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 91,863 $ $ 287,659
Accrued payroll 23 23
Due to other funds 54,347
Refundable deposits 113,025 113,025
Total Liabilities 91,886 113,025 455,054
Fund balances:
Restricted 2,905,489 119,420 11,785,264
Total Fund Balances 2,905,489 119,420 11,785,264
Total Liabilities and
Fund Balances $ 2,997,375 $ 232,445 $ 12,240,318
75
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2019
Public Public
Transpottation Transportation
COPS Prop A Prop C
REVENUES
Taxes $ $ $
Intergovernmental 148,747 730,549 605,970
Charges for services 43,916
Investment income 617 14, !03 26,046
Others
Total Revenues 149,364 788,568 632,016
EXPENDITURES
Current:
Community development
Public safety 140,I00
Public works
Community services 757,639
Capital outlay
Total Expenditures 140,100 757,639
Excess (Deficiency) of Revenues
Over (Under) Expenditures 9,264 30,929 632,016
OTHER FINANCING SOURCES (USES)
Transfers in 260,000
Transfers out (260,000)
Total Other Financing Sources (Uses) 260,000 (260,000)
Net Change in Fund Balances 9,264 290,929 372,016
Fund Balances at Beginning of Year 384 890,435 1,387,568
Fund Balances at End of Year $ 9,648 $ I,181,364 $ 1,759,584
76
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended Juue 30, 2019
Traffic
ATTACHMENT A
Air Quality
State Cong Relief Improvement
Used Oil Gas Tax Section 2182 CDBG District
$ $ $ $ $
10,024 702,585 41,061 170,200 47,227
6,211 958 2,952
61,008
10,024 708,796 42,019 231,208 50,179
245,708
9,337 479,462
36,196
9,337 479,462 245,708 36,196
687 229,334 42,019 (14,500) 13,983
(6,000) (38,270)
(6,000) (38,270)
687 223,334 42,019 (14,500) (24,287)
7,461 227,132 41,368 1,235,910 212,734
$ 8,148 $ 450,466 $ 83,387 $ 1,221,410 $ 188,447
77
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenne Fonds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2019
Parking
Measure R Concession
REVENUES
Taxes $ $
Intergovernmental 454,608
Charges for services
Investment income 12,531
Others
Total Revenues 467,139
EXPENDITURES
Current:
Community development
Public safety
Public works
Community services
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures 467,139
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances 467,139
Fund Balances at Beginning of Year 575,970 10,000
Fund Balances at End of Year $ 1,043,109 $ 10,000
78
ATTACHMENT A
Affordable
Housing
$
157,000
$ 157,000
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenne Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2019
Road
Sewer Maintenance 1992/1996
Reconstruction Rehab Act Park Bond Measure M
$ $ $ $ $
667,712 14,500 512,161
55,000
7,562 7,382
55,000 675,274 14,500 519,543
39,578 3,606
39,578 3,606
55,000 635,696 14,500 515,937
(14,500)
(14,500)
55,000 635,696 515,937
919,171 213,975 198,211
$ 974,171 $ 849,671 $ $ 714,148 $
79
ATTACHMENT A
Park
Acquisition
39,000
39,000
4,381
7,040
11,421
27,579
27,579
82,223
109,802
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2019
Lighting and
Landscape
District Public Art Fee Total
REVENUES
Taxes $ 1,497,827 $ $ 1,497,827
Intergovernmental 4, l 05,344
Charges for services 137,916
Investment income 35,607 113,969
Others 61,008
Total Revenues 1,533,434 5,916,064
EXPENDITURES
Current:
Community development 245,708
Public safety 140,100
Public works 1,025,024 1,518,204
Community services 793,835
Capital outlay 50,224
Total Expenditures 1,025,024 2,748,071
Excess (Deficiency) of Revenues
Over (Under) Expenditures 508,410 3,167,993
OTHER FINANCING SOURCES {USES)
Transfers in 357,760 617,760
Transfers out (29,095) (347,865)
Total Other Financing Sources (Uses) 328,665 269,895
Net Change in Fund Balances 837,075 3,437,888
Fund Balances at Beginning of Year 2,068,414 119,420 8,347,376
Fund Balances at End of Year $ 2,905,489 $ 119,420 $ 11,785,264
80
ATTACHMENT A
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
CITY OF TEMPLE CITY, CALIFORNIA
Budgetary Comparison Schedule
Permanent Fund
Year Ended June 30, 2019
REVENUES
Investment income
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 $
81
ATTACHMENT A
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
500 $ 1,104 $ 604
500 1,104 604
260 (260)
260 (260)
500 844 $ 344
171,150
$ 171,994
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenne Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
COPS Fund
Year Ended June 30, 2019
Budgeted Amounts
REVENUES
Intergovernmental
Investment income
Total Revenues
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
140,000 $ 140,000
100 100
140,000 140,000
140,100 140,100
140,100 140,100
(100) $ (100)
82
ATTACHMENT A
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 148,747 $ 8,747
617 517
149,364 9,364
140,100
140,100
9,264 $ 9,364
384
$ 9,648
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fuud
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
Public Transportation -Prop A Fund
Year Ended June 30, 2019
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 730,550 $ 730,550 $ 730,549 $ (1)
Charges for services 43,920 43,920 43,916 (4)
Investment income 5,500 5,500 14,103 8,603
Total Revenues 779,970 779,970 788,568 8,598
EXPENDITURES
Current:
Community services 778,295 796,483 757,639 38,844
Total Expenditures 778,295 796,483 757,639 38,844
Excess ( deficiency) of revenue
over Expenditures 1,675 (16,513) 30,929 47,442
OTHER FINANCING SOURCES (USES)
Transfers in 260,000 260,000
Total Other Financing Sources (Uses) 260,000 260,000
Net Change in fund balances $ 1,675 $ 243,487 290,929 $ 47,442
Fund Balance at Beginning of Year 890,435
Fund Balance at End of Year $ 1,181,364
83
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fnnd
Schedule of Revennes, Expenditures and Changes iu
Fuud Balance -Budget aud Actual
Public Transportation -Prop C Fund
Year Ended June 30, 2019
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 605,970 $ 605,970
Investment income 26,045 26,045
Total Revenues 632,015 632,015
OTHER FINANCING SOURCES (USES)
Transfers out (260,000)
Total Other Financing Sources (Uses) (260,000)
Net Change in fund balances $ 632,015 $ 372,015
Fund Balance at Beginning of Year
Fund Balance at End of Year
84
ATTACHMENT A
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 605,970 $
26,046
632,016
(260,000)
(260,000)
372,016 $
1,387,568
$ 1,759,584
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
Used Oil Fund
Year Ended June 30, 2019
Budgeted Amounts
Original Final
REVENUES
Intergovernmental
Total Revenues
EXPENDITURES
Current:
Public Works
Total Expenditures
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year
$
$
10,000 $ 10,000 $
10,000 10,000
9,000 9,340
9,000 9,340
1,000 $ 660
$
85
Actual
Amounts
ATTACHMENT A
Variance with
Final Budget -
Positive
(Negative)
10,024 ...;$;;.._ __ ...;2c.;4_
10,024 24
9,337 3
9,337 3
687 $ 27
7,461
8,148
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenne Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
State Gas Tax Fund
Year Ended Jnne 30, 2019
Variance with
Final Budget•
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 731,650 $ 731,650 $ 702,585 $ (29,065)
Investment income 1,500 1,500 6,211 4,71 I
Total Revenues 733,150 733,150 708,796 (24,354)
EXPENDITURES
Current:
Public works 482,255 483,630 479,462 4,168
Total Expenditures 482,255 483,630 479,462 4,168
Excess (deficiency) of revenue
over Expenditures 250,895 249,520 229,334 (20, I 86)
OTHER FINANCING SOURCES (USES)
Transfers out (6,000) (6,000) (6,000)
Total Other Financing Sources (Uses) (6,000) (6,000) (6,000)
Net Change in fund balances $ 244,895 $ 243,520 223,334 $ (20,186)
Fund Balance at Beginning of Year 227,132
Fund Balance at End of Year $ 450,466
86
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
Traffic Congestion Relief -Section 2181
Year Ended June 30, 2019
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 41,060 $ 41,060
Investment income
Total Revenues 41,060 41,060
Net Change in fund balances $ 41,060 $ 41,060
Fund Balance at Beginning of Year
Fund Balance at End of Year
87
ATTACHMENT A
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 41,061 $
958 958
42,019 959
42,019 $ 959
41,368
$ 83,387
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
CDBG Fund
Year Ended June 30, 2019
Bud~eted Amounts
REVENUES
Intergovernmental
Other
Total Revenues
EXPENDITURES
Current
Community development
Total Expenditures
Excess ( deficiency) of revenue
over Expenditures
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year
$
$
Original Final
191,405 $ 191,405
30,000 30,000
221,405 221,405
179,000 221,405
179,000 221,405
42,405
42,405 $
88
ATTACHMENT A
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 170,200 $ (21,205)
61,008 31,008
231,208 9,803
245,708 (24,303)
245,708 (24,303)
(14,500) (14,500)
(14,500) $ (14,500)
1,235,910
$ 1,221,410
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fuud
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
Air Quality Improvement District Fund
Year Ended June 30, 2019
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Nel!ative)
REVENUES
Intergovernmental $ 47,000 $ 47,000 $ 47,227 $ 227
Investment income 400 400 2,952 2,552
Total Revenues 47,400 47,400 50,179 2,779
EXPENDITURES
Current:
Community services 37,000 37,000 36,196 804
Total Expenditures 37,000 37,000 36,196 804
Excess (deficiency) of revenue
over Expenditures 10,400 10,400 13,983 3,583
OTHER FINANCING SOURCES (USES)
Transfers out (38,270) (38,270) (38,270)
Total Other Financing Sources (Uses) (38,270) (38,270) (38,270)
Net Change in fund balances $ (27,870) $ (27,870) (24,287) $ 3,583
Fund Balance at Beginning of Year 212,734
Fund Balance at End of Year $ 188,447
89
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenne Fnnd
Schednle of Revennes, Expenditnres and Changes in
Fund Balance -Budget and Actual
Measure R Fnnd
Year Ended June 30, 2019
REVENUES
Intergovernmental
Investment income
Total Revenues
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year
$
$
Budgeted Amounts
Original Final
454,610 $ 454,610
12,535 12,535
467,145 467,145
467,145 $ 467,145
90
$
$
Actual
Amounts
454,608
12,531
467,139
467,139
575,970
1,043,109
ATTACHMENT A
Variance with
Final Budget -
Positive
(Negative)
$ (2)
(4)
(6)
$ (6)
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schednle of Revenues, Expenditnres and Changes in
Fund Balance -Budget and Actual
Sewer Reconstruction Fund
Year Ended June 30, 2019
Bud!leted Amounts
Original Final
REVENUES
Charges for services $ 55,000 $ 55,000
Total Revenues 55,000 55,000
Net Change in fund balances $ 55,000 $ 55,000
Fund Balance at Beginning of Year
Fund Balance at End of Year
91
ATTACHMENT A
Variance with
Final Budget -
Actual Positive
Amounts (Neiiative)
$ 55,000 $
55,000
55,000 $
919,171
$ 974,171
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
Road Maintenance Rehab Act (RMRA)
Year Ended June 30, 2019
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 667,715 $ 667,715
Investment income 2,500 2,500
Total Revenues 670,215 670,215
EXPENDITURES
Capital Outlay 604,000 810,420
Total Expenditures 604,000 810,420
Net Change in fund balances $ 66,215 $ (140,205)
Fund Balance at Beginning of Year
Fund Balance at End of Year
92
ATTACHMENT A
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 667,712 $ (3)
7,562 12,562
675,274 5,059
39,578
39,578
635,696 $ 775,901
213,975
$ 849,671
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
1992/1996 Park Bond Fund
Year Ended June 30, 2019
Budgeted Amounts
REVENUES
Intergovernmental
Total Revenues
OTHER FINANCING SOURCES (USES)
Transfers out
Total Other Financing Sources (Uses)
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year
$
$
Original
14,500
14,500
(14,500)
(14,500)
93
Final
$ 14,500
14,500
(14,500)
(14,500)
$
ATTACHMENT A
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 14,500 $
14,500
(14,500)
(14,500)
$
$
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, 2019
Budgeted Amounts
Original Final
REVENUES
Intergovernmental $ 512,160 $ 512,160
Investment income 150 150
Total Revenues 512,310 512,310
EXPENDITURES
Capital Outlay 400,000 400,000
Total Expenditures 400,000 400,000
Net Change in fund balances $ 112,310 $ 112,310
Fund Balance at Beginning of Year
Fund Balance at End of Year
94
ATTACHMENT A
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 512,161 $ l
7,382 7,232
519,543 7,233
3,606 396,394
3,606 396,394
515,937 $ 403,627
198,211
$ 714,148
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, 2019
Budgeted Amounts
REVENUES
Charges for services
Total Revenues
EXPENDITURES
Current:
Public Works
Capital Outlay
Total Expenditures
Net Change in fund balances
Fund Balance at Beginning of Year
Fund Balance at End of Year
$
$
Original Final
40,000 $ 40,000
40,000 40,000
46,000 46,000
46,000 46,000
(6,000) $ (6,000)
95
ATTACHMENT A
Variance with
Final Budget•
Actual Positive
Amounts (Negative)
$ 39,000 $ 1,000
39,000 (1,000)
4,381 (4,381)
7,040 38,960
11,421 34,579
27,579 $ 33,579
82,223
$ 109,802
ATTACHMENT A
CITY OF TEMPLE CITY, CALIFORNIA
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
Lighting and Landscape District Fund
Year Ended June 30, 2019
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Ne~ative)
REVENUES
Taxes $ 1,501,900 $ 1,501,900 $ 1,497,827 $ (4,073)
Investment income 35,610 35,610 35,607 (3)
Total Revenues 1,537,510 1,537,510 1,533,434 (4,076)
EXPENDITURES
Current:
Public works 1,219,350 1,222,600 1,025,024 197,576
Total Expenditures 1,219,350 1,222,600 1,025,024 197,576
Excess (deficiency) of revenue
over Expenditures 318,160 314,910 508,410 193,500
OTHER FINANCING SOURCES (USES)
Transfers in 357,760 357,760 357,760
Transfers out (29,095) (29,095) (29,095)
Total Other Financing Sources (Uses) 328,665 328,665 328,665
Net Change in fund balances $ 646,825 $ 643,575 837,075 $ 193,500
Fund Balance at Beginning of Year 2,068,414
Fund Balance at End of Year $ 2,905,489
96
CITY OF TEMPLE CITY, CALIFORNIA
Description of Statistical Section Contents
Juue 30, 2019
ATTACHMENT A
This patt of the City of Temple City's (City) comprehensive annual financial repmt presents detail information as
a context for understanding what the information in the financial statements, note disclosures and required
supplementary information says about the City's overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional debt in
the future.
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional debt in
the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how
the information in the City's financial report relates to the services the City provides and
the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
97
ATTACHMENT A
CITY OF TEMPLE CITY
Net Position by Component-Last Ten Fiscal Years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Governmental activities:
Net position:
Investment in capital assets $ 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 $ 51,292,676
Restricted 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 11,957,258
Unrestricted 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 7,944,711
Total governmental activities net position $ 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 $ 71,194,645
% changes from prior year 1.57% 3.05% 10.54% 4.01% -5.19% 6.62% 3.37% -3.24% 0.02% 3.82%
98
ATTACHMENT A
CITY Of TEMPLE CITY
Change In Net Position
Expenses and Program Revenues -last Ten Fiscal Vea rs
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Expenses:
Governmental actlvitia,:
General government 2,716,505 2,827,384 3,281,194 3,769,018 3,512,190 3,663,847 4,051,109 5,502,437 4,135,881 4,232,622
Publjcsafety 4,484,281 4,662,120 4,818,217 5,122,868 5,718,966 5,005,841 4,958,470 5,301,481 5,878,016 5,952,525
Publjcworks 2,969,555 1,960,629 2,162,481 2,520,925 2,970,264 3,065,241 2,901,053 4,813,770 4,668,273 2,837,774
Community development 1,480,064 1,657,399 1,562,859 1,692,614 2,222,569 3,314,298 2,165,352 2,600,043 1,924,496 1,870,993
Communlly Services 2,581,200 3,016,958 3,357,423 2,990,670 2,947,479 2,940,625 3,042,016 l.416,33a 3,659,828 4,208,894
Interest on long-Tetm Debt 321,043 429,238 149,503
Total governmental activities expense, 14,552,648 14,553,728 15,331,677 16.096,095 17,371.468 17,989,852 17,118,000 21,634,069 20,266,494 19.102,808
Program revenues:
Govemmentul activities:
Changes for senilces
General government 151,245 82,910 39,317 1,128,428 142,880 168,420 117,564 114,326 105,743 116,086
Public safety 877,083 516,034 719,955 588,380 596,058 469,919 323,446 825,166 624,852 642,185
Public works S6,906 88,506 220.BG 314,631 917,044 978,835 915,330 1,038,514 976,036 944,66S
Community development 1,056,657 1,007,719 1,322.476 1,315,893 1.424,955 1,953,925 2,005,946 1.845,202 1,805,059 1,609,882
Community Scnilces 686,18S 517,381 528,043 567,649 596,879 588,477 670,770 597,718 539.835 528,372
Operat;ng grant< and contributions
General government 45,555 44,773 141,216 8,089 7,812
Public safety 133,272 136,935 100,238 100,135 100,000 106,230 120,618 129,323 139,416 148,748
Public work, 1,886,781 4,065,287 3,749,837 5,128,889 4,772,938 4,679,133 3,468,405 3,496,161 3,800,689 4,121,316
Communjty development 349,299 273,917 246,086 856,693 2,279,234 785,166 701,996 726,858 789,118 786,821
Commun;ty S~rviccs 975,576 83,03S 99,848 73,000 88,168 227.4S0 117,093 131,600 21,900 75,508
Capital grant, and contnbutions
Puhl le wark, 1,295,350 454,608
Total governmental aclivilles revenues 6,218,559 6,816,497 7.02S,936 10,073.698 11,059,372 9.965,644 8,448.980 8,904,868 10.097,998 9,428,191
Net revenue, (expenses):
Governmental activities: (8,334,089) P,737,231) (8,305.741) (6,022,397) (6,312,096) (8,024,208) (8,669,020) (12,729,201} (10,168,496) (9,674,617)
General revenue, and other change, in net po1ition:
hxe,
PropcrtyTa,e, 2,780,452 3,259.485 2,253.677 2,474,978 2,597,549 2,728,718 2,873,580 3,044,928 3,301,789 3,495,364
Transient Occupancy Tax 34,844 34,221 32,%6 28,898 46,849 53,612 59,522 54,864 61,271 58,424
Sales T~x 1,475,728 1,614,726 1,642,318 1,711,128 1,735,613 1,873,423 2,000,558 1,959,152 2,146,888 2,189,206
Franchise Tax 533,542 542,523 553,598 550,527 562,535 590,620 573,650 537,773 557,594 569,736
Other Taxes 127,S73 99,701 99,417 158,962 171,193 175,892 180,943 193,670 187,066 163,989
Investment Income 262,636 409,097 378,269 132,565 203,571 180,197 282,190 78,329 186,315 829,962
Stale MotorVchkle In Lieu 3,549,571 3,229,851 3,196,237 3,310,180 3.472,6S9 4,887,322 4,071,629 4,172,548 4,463.316 4,694,844
State Revenue-Other 6.97S 8,844 12,276 7,579 11.166 8,958 15,273 8.575 9,064 9.669
Other 448.504 285.881 1,071,678 262,068 237,723 778,693 399,458 385,4S8 309,163 279,805
Total general revenues and transfers 9,219.825 9,484,329 9,240,436 8.636.885 9,038 858 11,277,43S 10.456,803 10.435.297 11,222,466 12,290,999
Extraordinary items RDA diS1olutlon: 3,744,062
Change In net position 885,736 1,747,098 4,678,757 2,614,488 2,726,762 3,253,227 1,787,783 (2,293,904) 1,053,970 2,616,382
Net Position at beginning of vear 56,347 937 57,233,673 60,521,475 65.200,232 61,570.735 65,297,488 69,073,904 70.861.867 67,524,293 68,578,263
Net Positlon at end of year $ 57,233,673 S 58,980,771 $ 68,944,294 $ 67,814,720 $ 64,297.497 $ 68,550,715 S 70,861,687 $ 68,567,963 $ 68,578,263 S 71,194,645
Sou;ce, Cit-,, of Temple City', Compreh•nsive Anoual Finan,ial ~oport
99
CITY OF TEMPLE CITY
Fund Balances of Governmental Funds -Last Ten Fiscal Years
2010 2011
General Fund
Nonspendable $ $
Restricted 2,360,171 1,771,165
Committed
Assigned
Unassigned 22,340,207 23,542,553
Total general Fund 24,700,37~--~-~-}13,718
All other governmental fund:
Nonspendable
Restricted 22,706
Unassigned, reported in:
Special revenue funds 12,846,187
Capital projects funds
Debt service funds (3,424,412)
Total all other governmental funds 9,421,775
Total Governmental Funds $ 34,_144,859
Note: This schedule reports is using the modified accrual basis of accounting
Source: City of Temple City's Comprehensive Annual Financial Report
14,736,866
(84,843)
(3,223,856)
(3,308,699)
$ 36,741,885
2012 2013
$ 1,678 $ 12,795
4,500,000 4,500,000
17,200,000 15,150,000
2,352,402 1,764,267
24,054,080 21,427,062
11,889,013 8,445,931
(150)
(150)
$ 35,943,093 $ 29,872,_843
100
ATTACHMENT A
2014 2015 2016 2017 2018 2019
$ 10,531 $ 409,084 $ 463,539 $ 480,576 $ 128,670 $ 68,993
3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000
12,769,580 12,868,392 12,302,864 11,513,004 10,589,004 10,455,704
1,725,404 3,249,131 3,538,853 3,403,359 4,713,137 6,019,290
18,005,515 20,026 ,60~805 ,256 18,896,939 18,930,811 20,043,987
1,088,219 170,305 170,597 174,549 171,994
2,959,528 4,898,508 6,322,718 6,927,724 8,343,977 11,785,264
(360,045) (197,244)
(1,722,989)
(1,722,989) (360,045) (197,244)
$ 20,965,043 $ 24,290,345 $ 25,938,234 $ 25,798,016 $ 27,449,337 $ _32,001,245
ATTACHMENT A
CITY OF TEMPLE CITY
Changes in Fund Balances of Government Funds
Last Ten FiSt:al Years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenues:
Taxes 4,641,626 6,303,326 6,126,340 6,068,935 6,310,783 6,678,220 7,004,011 7,164,365 7,609,593 8,056,086
Licenses and Permits 1,096,347 1,028,284 1,345,183 1,335,720 1,434,610 1,844,793 1,775,836 1,772,186 1,653,939 1,653,876
lntergovermental 6,923,107 6,462,142 6,026,300 7,980,590 9,334,821 8,964,552 6,816,792 7,324,903 9,234,861 8,800,188
Charges for services 1,781,384 1,104,495 929,351 2,180,285 1,760,155 2,204,878 1,985,763 1,622,594 1,693,445 1,430,382
Fines 631,064 495,469 697,246 568,553 580,039 447,512 312,136 813,727 611,077 624,968
Investment income 610,529 562,190 493,070 220,984 411,657 242,457 312,681 91,291 192,144 829,962
Rental Income 23,590 49,195 74,632 85,359 68,411 89,116 84,241 87,460 31,686 32,636
Other 349,851 415,145 128,805 269,647 197,755 771,551 373,933 411,573 356,541 317,846
Total revenues 16,057,498 16,420,246 15,820,927 18,710,073 20,098,231 21,243,079 18,665,393 19,288,099 21,383,286 21,745,944
Expenditures
Current;
General Government 2,263,820 2,492,012 2,773,777 3,778,538 3,130,434 3,393,501 3,440,424 4,502,828 3,822,997 3,832,851
Community development 1,323,870 1,231,126 1,227,221 1,635,843 2,047,539 1,843,581 2,137,193 2,260,626 1,763,859 1,653,288
Public Safety 4,285,919 4,353,874 4,676,268 5,103,805 5,213,419 4,878,406 4,834,728 5,208,959 5,479,406 5,498,837
Public works 2,376,038 1,66S,506 1,803,025 2,207,950 2,544,287 2,746,162 2,888,326 2,555,994 4,400,038 2,687,989
Community Services 2,246,777 2,733,160 2,994,515 2,784,456 2,739,171 2,667,377 2,926,417 2,998,348 3,060,094 3,061,698
Capital outlay: 2,106,266 1,132,410 1,520,720 9,269,731 13,929,743 1,665,752 1,313,404 1,901,562 1,205,571 459,373
Debt services
Principal retirement 295,000 305,000 315,000
Interest and fiscal charges 452,423 433,050 153,684
Bond Issuance Costs
Pass-Through payment 40,046 36,333 10,897
ERAf Payment 330,160 67,974
Total expenditures 15,720,319 14,450,445 15,475,107 24,780,323 29,604,593 17,194,779 17,540,492 19,428,317 19,731,965 17,194,036
Excess (deficiency) of revenues over
(under) expenditures 337,179 1,969,801 345,820 (6,070,250) (9,506,362) 4,048,300 1,124,901 (140,218) 1,651,321 4,551,908
Other financing sources (uses}:
Transfers in 2,881,170 1,740,640 2,345,392 10,038,826 13,041,701 13,041,701 2,422,109 2,583,586 3,434,672 705,625
Transfer out (2,881,170) (1,740,640} (2,345,392) (10,038,826) (13,041,701) (13,041,701) {2,422,109) {2,583,586) {3,434,672) (705,625}
Issuance of Refunding Revenue Bonds
Bond Discount
Net other financing sources {uses)
Change in fund balance before extraordinary items 337,179 1,969,801 345,820 (6,070,250) (9,506,362) 4,048,300 1,124,901 (140,218) 1,651,321 4,551,908
Extraordinary items -RDA dissolution transaction: (517,387)
Net change in fund balance 337,179 1,969,801 (171,567) (6,070,250) (9,506,362} 4,048,300 1,124,901 {140,218) 1,651,321 4,551,908
Fund balances at beginning of year -restated: 33,807,680 34,144,859 36,114,660 35,943,093 30,471,405 20,242,045 24,813,333 25,938,234 25,798,016 27,449,337
Fund balance {deficit) at end of year: 34,144,859 36,114,660 35,943,093 29,872,843 20,965,043 ~-:1:-.~~g,}_~5 25,938,234 25,798,016 27,449,337 32,001,245
Note: This schedule reports using the modified accrual basis cf accounting
Source: City cf Temple c;ty's Comprehensive Annual Financial Report
101
ATTACHMENT A
Category 2009/10
Residential 2.952.976.525
Commercial 233.159.971
lndustlial 39.13L023
Institutional 17.328.942
Irrigated 496.832
Miscellaneous 55.SOl
Recreational 3.248_683
Vacant 31.388.447
SBE Nonunitaty 362-B!H
Cross-Reference i.72~-752
Unsecured 26_963_336
Exempt [5.735,744]
TOTALS 3,312.837,916
T otai Direct Rate 0.09197
No-Ws:
THE CITY OF TEMPLE CITY
ASSESSED VALUE OF TAXABLE PROPERTY
2009/1 0 -2018119 Taxable Property Values
2010111 2011112 2012113 2013114 2014/15 2015/16 2016/17
3.04!t375,507 3.176.5e7.665 3.291.734.411 3.4€-6.485.194 3.659.369.556 3.949.327.479 4.18t-J55,132
2352t0,642 241,334,139 2t.7,949,455 2:;3.434-441 2£8-60U69 282.005,t64 268.818.200
38.96a,701 32.!?34,5~6 t.~.224.415 42.-528-810 43.~12. .. 473 40.173.t.72 43,967.128
11_1:zg,so, 19,415.635 14.5&<,720 ~4.528.414 iS.873.535 20-262,630 23.706.6'?5
495,652 49:9,382 459.000 468.180 ~06342 106,3.!:2 106,9£5
55,370 55,7S4 56,898 58.033 38.308 38.398 39.0€-t
2_ 150,752 1,191.956 1,213-.113 ~.52257-'-1239.690 1261,780 2,467,340
28.565.197 27.2.:!,2.7'!7 32,285.185 32,€46273 31.540.476 35.04V-6S 50.776.6-55
252,01~ 252,011 252.o~, 252.011 252,011 252.0!~ 82,127
7.959,915 8,116A.37 9,176.726 '!0.334.899 ·W2K2.!.I 11-719,323 12.596.787
29.917.083 32.360.705 32,947.948 32,675_627 33.588.380 33249.8€6 31.32027S
(5,735.744] [5.735_744} {5.735,74} 15_735,7?4} (G .706.835] [6.8~2.731] [6557.215)
3.410.1111.131 3.~.~~.027 3,67~,859,882 3,858.234256 4.09826-'-,981 4_373-439.234 4_53e,o35,449
0.09202 0.09120 0.02076 0.0-5566 O.JS692 0_08895 0.088S5
2017/18
4.4642~.206
336.078.499
4S.12S,S47
22,852164
88.220
n.n,
2,514.003
~1.7e.5. I32
52.127
~.914,250
35.6$5.SSO
[6,587.215]
4.959 . .!.0£.575
0.08--591
Exempt values are not incluc!M: in Total.
ln !~7S '!hoe. votel'S-of the Sta.le-ofCa!r:'omia pass-e-d PropesitQn 13 which fim'1ed oxes to .1 t=I ma:ccrnum rat-=-cf C~~. based up= the assess-e-d vafu,e, cfihe-pro_;:,s,rty =-eing uxec. Each ye.1r.1he ,15,s.;sSEed value of pro~ may be
increased by ats ~m113ticn f::3:C'!Or" (rimit,;,c! 10 a_maximum of 2~;,;_ With few eex~ptions. pro;ierty s only reassessed .:as a =.rt of new co:-.-structs'.r. activ!ly c_r at .he t'-ne _it ts scld ca new owt:er. A!. that point. e~ property_ is reassessec
based upcl'l the added value-of the ccnstn.1c:icn: er at the purchase_ ;rice ,:market_Ya1ue:, er economic ,..aluec o~the prol)E-rty sold_ The assessed va\;aton vab shown aoov,;;, r~res...nl:5 lhe cnly data cum:~lly ava:13ble w::h respect to the
act.;al market value-cf raxable prcpe-rtf and ,s s..i::,jec: to the l,m.1;,ioons ooscnbeo aOOltl?-
2018119
4.705.546.836
34S,4S0.195
50.709.009
1€-,006, 110
88.220
11.968
2.9.it.599
53.4Ci3,213
62.~27
7.~0S.994
33,655.696
!6.587,215}
5.2'!9.S5U67
0.0-5893
D:zta Source: Los Ange,'es County Assessor 2009110 -2018119 Combined Tax f?.oJls Prepared On 7,'2&'2019 By MV
This report is not to be used in support of debt issuance or cominuing disclosure statements vdthout the written consent of HdL, Coren & Cone
102
ATTACHMENT A
THE CITY OF TEMPLE CITY
DIRECT & OVERLAPPING PROPERTY TAX RATES
(RATE PER $100 OF TAXABLE VALUE)
Last 1 o Fiscal Years
Agency 2009110 2010/11 2011112 2012{13 2013114 2014115 2015/16 2016117 2017118 201e11a aaa1c Levy' 1.0000ll 1.00CIOO 1.m:000 1.000C-0 1.00000 1.00000 t.00000 1.00COO 1.00000 t.00000
Arcad~ Unified 0.07561 0.07455 0.076S-1 D.07670 D.07500 0.07653 0.07507 0.07786 0.07551 D.05365
El MM!e-City c:moO' D~trte1 0.11907 0.12383 0.12733 o.n.2ea 0.12735 0.11e22 0.14~2 Q.14682 0.14616 D.1458[}
El Moo!e Union Hgh SChOOI 0.09554 O.OE475 0.09591 0.D6992 0.09799 OJJ-8418 0.09155 [}.08469 Q.(18243 D.08793
La Ccmmun1t11 College-Ol&!rte'! 0.02311 0.04031 O.OlSJ•J 0.D4875 0.04454 O.Q.:\017 D.03575 D.03596 0.0459:1 0.04621
l.fe1n:,poilt3n Waler Ol~1rte1 0.0043D 0.00370 0.00370 0.00350 0.003~-0 0.00350 D.003.SO 0.003-50 0.0035D 0.00350
PaYO!!na commuf'll!y corege Ot&t 0.02300 0.0198S O.Ot956 0.02056 0.D1699 0.01032 O.C0872 O.OOBaS O.ODB19' 0.00767
Rosemead SGIIOO( 01:&t~c1 0.11358 0.10743 0.10507 0.100.40 D.10314. 0.09S.S6 0.09997 O.ctS33 D.11979 0.09260
-!.an Gabrte1 unmea 0.10070 0.10-19,J 0.06454 0.10523 0.10DB2 0.11444 0.10684 C.tOS.34 0.10078 0-.10.563
Temple cny· unme<1 0.04910 0.049&3 0.04590 0.04981 0.10744 0.D-99-35 O.C9!l-23 0.10052 0. 10232 0.10245
Total Direct & Overlapping• Tax Rate-s 1.G0501 1.GOSS:S 1.5!1-422 1.625'75 1.878'27 1.8--4608 1.6Glt06 1.G4DM Hl646S 1.64545
City's Share of 1% Levy Per Prop 13• 0.1874D 0.18740 0.18740 0.18740 0.18740 0,t,3740 0.18740 C.18740 0.18740 0.18740
Voter Approved City Debt Rate
Redevelopment Rate~ 1.0M3D 1.00370 1.00370
Total Direct Rate• 0.09197 0.09202 O.OS-120 0.0&076 o.oaeee 0.08892 0.D3895 o.c-ee.9s 0.08891 O.Oe893
" •tn 1~a. C.!llfafrl.a ,,;ter.:Dll:!itdl=l'C()!l~tl:m 1111,N:J"\~~~piq:,e,eylu r.Y.eillll t.00%be-dir®nt. Tl,I~ UXl\-l ~ ~b", ill 11111r.;i~nde~"«'·11-ti~llt-.e~11t:ted~r:e::~·4r,;"ln. r,;»1m:in
IX)th! -..o:J¾ f~e-d lil..,.Q.11~ P'tlt:l!lt; =nen are -::h!i,;ed tine:.~ a ~I.age of¥.~~ 11~"'-" ,·a111M rarttte ~;r.enlof ir,~ •'O'lef ,!pplVled v.ir<n.
'C-.'tlbcollllrJJIM are ttti:i:.eQl'lt>Clll uid tll<f'J;./ tw'•'trrren~ti"~ &tltiiJ It> troDert,· ,::,M"-e~ lo\'ltin \ht Cfy. N!lt~; o-,t~!li='P~ll l'lllt~ apptJ b al Drl)l)erty C'M"~.
"Ct/~ i;..~-e!' ~'ii: Lei')" l:. 1111'".«i ~n lht Cl';{~~lllVI:! 11ftht~~ run:it.n rate lftD Viti"', t'"I!! !~t:t ntlllll'.Zltle ~11\ie lo\i\hl1 U,e Ct.,. Tl!! 9'VIF i;«t11n ofllle C!I'/:. L!:Vill~ t~n s.ib'r.K"~ 111'\tn
~lll)"ll/!1.
•Rt-llt'1e~entRlllt t ba:ied<tml:"iela!Jle-.t~111'.11 r.,te11rea and0Nylndude:rd'ie1~:,mm ir~l:e:lt'!t~ ~d p_,1;,rl!l 1!<!-'Sli:,erC.llt'ornis SIik ::tal\lle. RDAlfTNtii!nd o ... e~ZIPPl'lll r:ite~M?: zipp!ied
Ol"Ji lzl U,e !rQ'l!menll!II l)f"Cllllft/>',\!Ut-:, Tlle .. D!tlYoSf llfl'ISX1 ~ elml~R.ede,'K!l)mef't~.,., ttte SI~ d' C.!1I"1fl"ill fI>rtht1~tlll ~nt" ~al::.!I) U.CY!ln !h!!Ufter
"Tcltal Or«t Rlllt Ill Ille welglilt-11'1'1tJ'll;t! of~l lndMct.Jlll are,:;t!llte~ ac:,plled tytt",e CJt)·.•Agcncy Jl("'ttDMIJ t-.e slll\l:;\UI ~Kil;!{\ lnfD!TMl',011 Do:I err:tHI~ rt!•<enue~ dttt,«:fre<"'"l alnn!I. 9t{ll".111110 l'I
X<\litl.1h!°Tol!IIOn:ttR4r'.er.c! IN"~ lnP11de:.tt'1erlUtgeF"~frc,/l",U,e'fllrrnerl'«le~~lll)ffltn1w n,te ace a~. Ch51tnge:; ID re«,gltied ~.xi!t {lbilg$".o!'I:. D!'ell~:tlmt~ 1;, r>)'..i= lleffl IHO'"letl
ct,tng ~012'11. Forllle pui:q..e~ orll\\!; repoft. 1'6\0'.»! m\~/Je r. a~umtd!!Cbt dbl!ilnrttd to llit Cl';li,",:,ef\C";" il:1 \ht ~amt ~~\Or,:; a:. IJtrltra! 11.n! re-,t"~
Dara soo~e: UJ:; Af?Qe,\o'z eo,mry MSf'S.wr 200M0 • .UHBf'tO nn: Rare 1dtlle Ptep-are<I on 712El20t9 B:,· MV
Th/:; report If; not robe ~ea In zuppO!t r§ IN!D! is:;uan,e or conMU!llg ct!Jc/osure ~tarement:; ~l'tho!ll trie wnn-en coosentorH:tL, Coren & ccne
103
City of Temple City
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal
Year of Levy Total Collections to Date
Fiscal Year
Ended June 30
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Taxes Levied for
the Fiscal Year
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
4,561,245
Amount
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
4,401,742
Percent of
Levy
107.40%
90.85%
91.20%
87.70%
88.02%
89.07%
87.96%
89.00%
101.55%
96.50%
Collections in
Subse_guent Years
(196,895)
296,266
295,627
445,222
454,469
435,508
469,329
376,336
Amount
2,660,326
3,238,026
3,359,572
3,619,421
3,794,593
3,984,673
3,897,361
3,421,264
Note: The amounts presented include city property taxes, Muni Lighting District, Muni lighting District A, and Muni Lighting District B
Source: Los Angeles County Auditor Controller
104
Percent of
Le~
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
ATTACHMENT A
ATTACHMENT A
CITY OF TEMPLE CITY
Revenue Capacity
General Fund Revenues -Last Ten Fiscal Years
Fiscal
year Licenses and Charges for Investment Rental Other Total
ended Taxes Permits Intergovernmental Services Fines Income Income Revenues Revenues
2010 3,830,602 1,096,347 3,549,571 542,976 534,287 442,363 65,928 348,851 10,410,925
2011 4,451,470 1,028,284 3,229,851 631,355 423,041 409,097 57,442 414,145 10,644,685
2012 4,581,975 1,345,183 3,196,237 757,496 646,498 378,269 57,268 128,805 11,091,731
2013 4,924,493 1,335,720 3,310,180 957,437 521,440 132,565 53,369 269,647 11,504,851
2014 5,113,739 1,434,610 3,480,366 1,510,392 554,805 203,571 68,411 246,206 12,612,100
2015 5,422,265 1,844,793 4,895,411 1,527,116 433,102 148,086 89,116 819,206 15,179,095
2016 5,688,253 1,775,836 4,079,441 1,627,626 303,524 306,568 84,241 303,058 14,168,547
2017 5,790,387 1,772,186 4,172,548 1,414,108 813,356 77,777 87,460 306,575 14,434,397
2018 6,173,068 1,653,939 4,463,317 1,491,537 611,074 131,324 31,686 286,041 14,841,986
2019 6,558,259 1,653,876 4,694,844 1,292,466 624,968 714,889 32,636 256,838 15,828,776
Source: City of Temple City's Comprehensive Annual Financial Report
105
THE ClTY OF TEMPLE CITY
2009/10 TOP TEN PROPERTY TAXPAYERS
Top Property Owners Basecl On Net Values
Owner Secured Unsecured Combined
% of %of %of
Pa=!s 'Value NetAV Pa=!s Value NetAV Value NetAV
1} CALA.C tNVESTh1E!\lT 2 SZ),5i4 _.553 0.62% $20.514.853 0.62%
2) ~DIAZIO INVESTMENT COMPANY • S14, H5,!47 0.43'%, $14,175.547 0.43%
•:?>e:!"dL..,_,~ ~ ~!!;1
3/ WANG I TUNG 1 S 13.126.099 0.40% $13.126.099 CAO%
."~i'QA:,~O,,~l!';I
4) SANTAANITA CON'ol:u...ESCENT HOSP 2 $6,743.456 021'%, 2 S1.D81:l,7fil ,=,_04:%-$7.833 . .219 0.24%
5) RALPHS GROCERY COMPAf.."Y 1 S6.i29,i323 0.19% 1 $428,.!.77 1-59% 56.558.100 0.20%
6} JAMES JAND SUE FEMINO TRUST 2 $.5,52:1.983 0.17% SS.521.983 0.17%
7;-GEN BOARD OF THE CHRCHOFTHE NAZARN 6 sa.,~2.553 □.16% 55.112.553 0.15%
S} BARCHESTER 1EMPLE c1n· 2 S4;~3i~19 0.15% 54.993.919 0.15%
·~J CHRJSTi..A,N CHRUCH PAC S:~'V REGION 1 $4,?47 2 □4 □.15% S4.9.f.7.204 0.15%
10} YJAOCH\}N ZOU AND f'BW'EN CH.ANG 5 $4,'51'9.652 0.14% S.4.619.652 0.14%
Top Ten Total 28 sse,.SM,ssg 2.61% 3 S1.518.24Q 5""63% $87.403.129 2.64%
City Total 53.285,874.580 $26.963.336 $3.312.837.916
Top Owna-s last editeo: Cl", an 2(16 by MaheaV using sales thro;.rgh □6,'30,'10 (Verson R 1}
Daza soaree: LOS" Ang&I8S -Coun.y ASSEISSOr 260Q.-"f0 COmtlfll.ild J<U' RotlS and n'l9 SBE Hon Un,rary Tar RoI{
ibJs: .r9p0n: JS nor to b9 used m sappo!'! oraeor rssuanca o; comrnumg crrsc1osura sr.a.am-tmzs wm'loar rhe wnmm coru;enr orH<fL Coren&. Con&
106
ATTACHMENT A
Primary Use &
Primary Agency
Commercial
Successor Agency
Cornmerc'.al
Successor Agency
Vacant
Successor Agency
lns:titufun31
TD#1
Commen:i.al
T0#1
Comli'P-rc\at
Successor Agen,:y
Res1dential
TD#'1
Comm,erci.al
Successor Agency
ll"'.stitutional
TD#l
Residential
TD#1
Prepar:--<f On 71'26/20111 Ey M-1
ATTACHMENT A
THE CITY OF TEMPLE CITY
TOP 25 SALES TAX PRODUCERS
FOR FISCAL YEAR 2018-19
Business Name
AT&T Mobility
Bistro Na's
Cadfuels Temple City
Chevron
Circle K
Grand Harbor Restaurant
lcho lzakaya Fusion Cuisine
In N Out Burger
Kanghodong Baekjeong
Kmart
McDonalds
Modern Lighting
Office Depot
Oo-Kook Korean BBQ
Pep Boys
Ralphs
Seafood Palace
Shell
Shibuyala
Stliki Seafood Buffet
super A Foods
Super Pets
Temple City Powersports
Tile Hat
TJ Maxx
Business Category
Electronics/Appliance Stores
Casual Dining
Service Stations
Service Stations
Service Stations
Casual Dining
casual Dining
Quick-Service Restaurants
Casual Dining
Discount Dept Stores
Quick-Service Restaurants
Plumbing/Electrical Supplies
Office Supplies/Furniture
Casual Dining
Automotive Supply Stores
Grocery Stores
Casual Dining
Service Stations
Specialty Stores
Casual Dining
Grocery Stores
Specialty Stores
Boats/Motorcycles
Quick-Service Restaurants
Family Apparel
Percent of Fiscal Year Total Paid By Top 25 Accounts = 57 .32%
• F::rni.,s Listed Afphabef:~ly Printed 07l0912019
Period: Jlay 20 ~S Thru March 2019
Sources: State Board of Equali2ation< Catrforrua Department ofTa:c:E-s and Fees Admim-stration. State Controller's Office, The Hdl
Companies
107
ATTACHMENT A
THE CITY OF TEMPLE CITY
DIRECT & OVERLAPPING DEBT AS OF JUNE 30, 2019
Percent
Gross Bonded Applicable Net Bonded
Debt Balance ToCilv Debt
Overlapping Detlt
•337.05 METROPOLITAN WATER DISTRICT 23,317,224 0.417 97,269
473.57 a MONTE CITY SD DS 2004 SERIES B 918,875 10.914 100,290
473.58 El MONTE CITY SO OS 2004 SERIES C 750,000 10.914 81,858
473.59 a MONTE CITY SD DS 2004 SERIES D (2009) 8,759,121 10.914 956,004
473.60 EL MONTE CllY SD DS 2008 SERIES A 8,345,000 10.914 910,805
473.61 EL MONTE CITY SD DS 2008 SERIES A-18ABS 5,998,159 10.914 654,662
473.62 EL MONTE CITY SD DS 2008. SERIES 8 7,080,000 10.914 772,738
473.63 EL MONTE CITY SD DS 2012 REFUND BONDS 32,540,000 10.914 3,551,540
473.64 a MONTE CITY SD DS 2014 SERIES A 10,560,000 10.914 1,152,559
473.65 a MONTE CITY SD DS 2015 REF BONDS 9,830,000 10.914 1,072,884
473.66 EL MONTE CITY SD DS 2014 SERIES B 4,845,000 10.914 528,802
473.67 EL MONTE CITY SD DS 2017 REF BOND SER A 17,505,000 10.914 1,910,562
629.53 ROSEMEAD SO OS 2007 SERIES D 120,000 4.051 4,861
629.54 ROSEMEAD SD OS 2008 SERIES A 215,000 4.051 8,709
629.55 ROSEMEAD SD DS 2011 REF BOND 6,195,000 4.051 250,943
629.56 ROSEMEAD SD OS 2012 REF BONDS 5,160,000 4.051 209,018
629.57 ROSEMEAD SD OS 2008 SERIES B 7,586,503 4.051 306,499
629.59 ROSEMEAD SD OS 2014 REF BONDS 5,560,000 4.051 225,221
629.60 ROSEMEAD SD DS 2016 REF BONDS 12,235,000 4.051 495,608
629.62 ROSEMEAD SD OS 2014 SERIES A 9,000,000 4.051 364,566
629.63 ROSEMEAD SD OS 2014 SERIES T 2 175,000 4.051 7,089
745.55 El MONTE UNION HSO DS 2008 SERIES A 30,041,132 6.573 1,974,642
745.56 a MONTE UNION HSD DS 2008 SERIES B 25,830,000 6.573 1,697,839
745.57 a MONTE UNION HSD DS 2015 REF BONDS 10,765,000 6.573 707,597
745.58 a MONTE UNION HSD DS 2016 REF Dl YD DLVR 4,165,000 6.573 273,771
745.59 EL MONTE UNION HSD DS 2008 SERIES C 46,525,000 6.573 3,189,611
745.60 a MONTE UNION HSD DS 2016 REF BONDS 10,650,098 6.573 700,045
745.61 a MONTE UMON HSD DS 2008 SERIES D 56,430,000 6.573 3,709,217
805.55 LA CCD DS 2003 TAXABLE SERIES 2004B 2,115,000 0.016 342
805.56 LA CCD DS 2001 TAXABLE SERIES 2004A 31,555,000 O.D16 5,110
805.65 LA CCD DS 2008, 2009 TAXABLE SER B 75,000,000 0.016 12,145
805.86 LA CCD OS 2008. 2D10 TAX SERIES D 125,000,000 0.016 20,242
805.67 LA CCD DS 2008, 2010 TAX SERE (BABS) 900,000,000 0.016 145,745
805.69 LA CCD DS 201l8 2012 SERIES F 202,000,000 0.016 32,712
805.70 LA CCD DS 2013 REF BONDS 38,945,000 0.016 6,307
805.71 LA CCD OS 2008 SERIES G 212,070,000 0.016 34,342
805.73 LA CCD OS 2015 REF SERIES A 1,429,435,000 0.016 231,480
805.74 LA CCD OS 2015 REF SERIES B 28,830,000 0.016 4,669
805.75 LA CCD OS 2015 REF SERIES C 252,150,000 0.016 40,833
805.76 LA CCD OS 2008 SERIES l 210,570,000 O.D16 34,099
'Ttlls run!J ~ a portlcri Ofa larger agency, and la re&JXW161ole 'fl:<! debt In areas ouWde the C;fy.
nus report ra1ect6 lfet-1 wl!!Ch Iii be-lng rep.aid through vDler-app,rc .. ,•ed property lax ITTdebtedna;s. It etciudK. mortgage rev&iue, tax alloca.1on tondS.. L'lterlm nnaneing
Oblga-u:ins, nOl"l-tonde<j cap<'!al le§e obllgallon&, :md cert!l!cates or part!CJpa1on. U'lless provHied tiy t!le o:t)'.
o•mapplng govemme-nto are1hooe that oohcide, at iealit in part, ·~1h tne geographic bOUndV1es of1Metry. The-p,ercentag-e orovenappng t1e1,1 applcab'.e ls estma1e-rJ by
using taxa~e as&!:661:d vafJeE-. AWliCJble percenlag~ were KtL'nateli by deiemilnlng the pcrt:ion or antmer govemrnentiil unit'& Wable a,;:se~d value !Ila! IS 'Aitl!n the C:ltfe.
bountf.arli!& 3M dMtllrq It t,y eatm Li\"lltli total taKabll! a5U&&ell value.
Dara Source: HdL Coren & Cone. Los AngeJe&: C.ou,nyA55es6or and Audilor Combined 2018119 Uen Dare Tax RolJ& Prepared On 7/28/2019 By MV
TllJ& rapon l'li nor w O& uied m suf}POIT ordet:11 t.SIWnC'il' orconrmumg 11rsc.Jo.sur& orammenrs wnhoor rh9 wmren c-om:enr orH4L.
Coren & cone
108
ATTACHMENT A
THE CITY OF TEMPLE CITY
DIRECT & OVERLAPPING DEBT AS OF JUNE 30, 2019
Gross Bonded
Debt Balance
overlapping Debt (Continued)
805. 77 LA CCD OS 2008 SERIES J 174,965,000
805.78 LA CCD DS 2016 REF BONDS 247,755,000
812.53 PASADENA CCD OS 2002, 2006 SERIES D 1,840,000
812.54 PASADENA CCD DS 2002, 2009 SERIES E (BABS) 25,295,000
812.55 PASADENA CCD OS 2014 REF SERIES A 13,900,000
812.56 PASADENA CCD DS 2016 REF SERIES A 32,395,000
817.53 ARCADIA UNIFIED OS 1993 SERIES C 331,333
817.57 ARCADIA UNIFIED DS 2006 SERIES B 26,910,000
817.58 ARCADIA UNIFIED DS 2017 REF 190,845,000
920.56 SAN GABRIEL USO DS 2010 REF BOND 8,404,370
920.57 SAN GABRIEL USD OS 2008 SERIES B 5,900,000
920.58 SAN GABRIEL USO DS 2012 REF BOND SERIES B 14,177,023
920.59 SAN GABRIEL USO DS 2008 SERIES C 22,918,806
920.60 SAN GABRIEL USO OS 2015 REF BOND SERIES A 31,925,000
947.52 TEMPLE CffY USD OS 1998 SERIES B 4,331,661
947.53 TEMPLE CITY USD DS 2005 REFUNDING BOND 8,560,000
947.54 TEMPLE CfTY USD OS 2012 SERIES A 21,915,863
947.55 TEMPLE CITY USO OS 2012 SERIES 8 33,457,588
947.58 TEMPLE CflY USD OS 2017 REFUNDING BOND 19,720,000
Total Overlapping Debt
2018119 Asseooed Valuation: $5,077,417,105 After Deducting S142,234,!l62 Incremental Value.
Debt To Assessed Valuation Ratios: Direct Debt 0.00%
Over1apping Debt
Total Debt
'T!ll&-f'Llmt I& a por!ltlrl 01 a luger agency, and I&-,e1,pon:5ible ft<!" d!Wt In area Ii ouWde the c:lif.
2.01%
2.01%
Percent
Applicable Net Bonded
ToCitv Debt
0.016 28,334
0.016 40,121
5.707 105,005
5.707 1,443,534
5.707 793,245
5.707 1,848,n7
2.945 9,758
2.945 792,510
2.945 5,620,460
2.347 197,253
2.347 138,474
2.347 332,738
2.347 537,910
2.347 749,287
71.571 3,100,219
71.571 6,140,804
71.571 15,685,434
71.571 23,945,979
71.571 14,113,830
102,106,8451
Tnl& report re1.acu 11e1,twhleh I&-t>Elng rep..3111 tl'ir0119h. '\'rl.l!f•ipproved property lD l'ltiebtedneE6. 11 exciOOes mongage revenue, tax 31foca.1on t;onds, l'lterlrn nnandn!J
obfga11:1n,, noo-t..onded Clp:UI leMe Ollllg,aUon&., and certmc:ate5 Ofpartlcipa1or1, U'll~5 IXOYltr.ea t-y tile dty.
over1aw1ng go~"&mmenl:6 are lhO'l!ie that col'lelde, at lea!il In part, -... mi tt1.e geogra!il'llC bound:utes c-flhectty. The p-etcentage Of ovfflapp\rlg 11e1,1 apptc.a~e I& e&~mated by
u&lrig 1ual){e a66e-Med vakl~. AWll¢3b'e percen!agff. were es-!Jmalell ciy dE'11H1'1llnJng 11te portion or anr.11er ,go .. ernmen\ai ,.min tu.able 3fi6e&&ell 't'a!ue trtat ls Y.1?11n the City's
bOUfill.lrle& 3rd dM!ll1'9 It Ii)' eaoo Ut'llf5 total laOb!e 355e6Eelf Yalue.
Dara Source: Hd1. Coren&· Cone, Los AngeJeli Coum:yAssessor and Auditor Combined 201&1t9 Uen Dare TaK Rolls Prepared On 7/26.12019 By MV
Tb.15 repon l'i not w b& l!Hd m1;uppon or dW11uuani:e or conrmvmg d1&cJo.&ureuammBJ1rt w,rhomitl& wnmm cons&nr or HdL,
Co!Wl & con&
109
,IIJ
8
<.>
•C:
<i
C:
•O
:j!!
,,p
0.
!!!
Q. ...
0 :
ATTAC HM EN T A
THE C I TY OF T EMPL E CI TY
DEMOGRAPHIC AND E CONOMIC STAT ISTICS
CaJendar Personal Income Per-Capita
Year Population, (In Thousands) Personal Income
2009 35.6 15 $858,744 S24,1 12
20 10 3 5.892 S 1,000,992 $27,889
2011 35.74 9 $936,409 $26,194
2012 35.952 $947;22.7 $26,347
2013 36.134 $932,4 7 4 $25,806
2014 36.1 52 $963,668 $26,656
2015 36.534 $986 ,655 $27,006
20 16 36.,389 S 1 ,008 ,8 1 3 $27,723
2017 36,4 11 $974,7 62 $26,77 1
20 18 36.583 S1 ,0 3 1,698 $28,20 1
Per so na l Income a nd Unemploym e nt
28.500 10
2S.C!O0
27~500 8
2 7 .000
6
2 6.500
2 6.C!OD 4
25.:iOO
25.000 2
24 .500 t-+------------------------1
24.000 L-_._ _ _._ _ ____.. __ .__ _ _.__ _ _._ _ __. __ _.___......_ _ ____..__. 0
2 009 2 0 10 201 1 2012 2013 2014 2015 2 0 16 2017 2018
I -Pa-~ta Pers lname -1.Jren'p~nt ~
C:
:::,
~
"Q_
0
'<
i
~
;u
co
6
Unemployment "lo of Pop 25+ with % of Pop 25+ with
Rate
7.5%
8.2%
8.0%
6.0%
4.9%
5.4 %
'il.4 %
3.4%
3.5%
3.8%
C:
0 .,
.!!! :::,
Q.
0
Q.
Medi an Age High School Degree Bachelor's Degree
40.5 87.1 % 324%
40 .8 86.3% 322%
40.6 86.5% 3 6 .0 %
40.9 85.4% 35.9%
4 1 .5 86.0% 35.9%
4 1.3 85.9% 37.0%
4 2.3 86.1% 37.6%
42.9 862% 37.3%
4 3.4 84.8% 36.8%
43.0 84.3% 38.3%
E d ucatio n L ev e l Attaine d f o r P,opula tion 25
and O ve r
0
2009 2010 2011 2012 20 13 2014 2015 2016 2017 2018
[ ■ LP-ss Than Hgh School ■ Hi~ School Granlate ■ Ccl'.ege Gra:fuate
Notes and Data So urces:
Population: C alifornia S1ate Department oi Finance. Un empl oyment Data: C al1fcmia Employment De velopment Department
2000-2009 Income-, A ge . and Educalic n D ata: ESRI -Demographlc E siim;;tes are based on the last available Census. Proj ection s are devefope-d by i n corporating a1 of Ille prior oaisus data rel eased to
date. Demographic Data is tota!ed frcm Ce nsus Block Groups that overlap the-City's bo undaries
201 O and l ata -Income , Age-and Ed ucation Dara. -US Cens us Bure-au , most recent A merican Community SuNe)'
This reporr is nor ro be used in su ppon of debr issuance o r connnuin9 discl osu re starements w ilhoUI m e wrmen consenr o f HdL. -Co re n & C one ffepaiiid On i','2i:!izi019 By MV
110
ATTACHMENT A
CITY OF TEMPLE CITY
Operating Information
Construction Activity
New
Calendar New New Value of
year ended Residential Commercial Total Demolitions Construction
2010 20,200,934 2,156,535 22,357,469 162,000 22,195,469
2011 23,754,355 1,175,540 24,929,895 139,048 24,790,847
2012 19,536,413 2,490,427 22,026,840 144,000 21,882,840
2013 21,298,596 14,433,160 35,731,756 322,000 35,409,756
2014 32,964,118 1,298,205 34,262,323 429,900 33,832,423
2015 37,651,625 2,217,000 39,868,625 421,900 39,446,725
2016 30,428,763 2,153,520 32,582,283 474,000 32,108,283
2017 32,812,558 725,000 33,537,558 371,398 33,166,160
2018 21,043,402 1,325,360 22,368,762 439,850 21,928,912
2019 21,659,346 2,726,606 24,385,952 328,600 24,057,352
Source: City ofTemple City Community Development Department
111
ATTACHMENT A
CITY OF TEMPLE CITY
Operating Information
FullRTime Equivalent City Employees by Function M Last Ten Fiscal Year
Function 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Government
Full Time 7.80 7.80 7.80 8.80 9.95 9.95 9.95 10.95 10.95 10.95
Part Time 0.65 0.85 3.11 3.11 1.85 2.12 2.82 1.44 1.26 0.68
8.45 8.65 10.91 11.91 11.80 12.07 12.77 12.39 12.21 11.63
Community Development
Full Time 7.15 6.10 6.10 6.20 6.90 6.90 6,90 6.90 6.95 6.95
Part Time 0.26 0.06 1.64 2.64 1.60 1.26 0.69 0.55 0.85 1.19
7.41 6.16 7.74 8.84 8.50 8.16 7.59 7.45 7.80 8.14
Parks & Recreation
Full Time 11.70 12.15 12.15 12.25 12.05 12.05 12.05 12.05 12.05 12.05
Part Time 21.46 18.96 22.66 18.92 26.05 26.22 26.69 23.97 24.86 18.05
33.16 31.11 34.81 31.17 38.10 38.27 38.74 36.02 36.91 30.10
Public Safety
Full Time 5.40 7.05 7.05 7.65 7.55 7.55 6.85 6.85 4.60 4.60
Part Time 1.43 2.33 4.22 4.07 4.51 2.83 1.41 1.54 1.64 1.74
6.83 9.38 11.27 11.72 12.06 10.38 8.26 8.39 6.24 6.34
Public Works
Full Time 3.95 2.90 2.90 3.10 3.55 3.55 3.25 4.25 6.45 6.45
Part Time 0.34 0.28 1.79 0.46 1.84 0.83 0.12
4.29 2.90 3.18 4.89 4.01 5.39 4.08 4.37 6.45 6.45
Full Time Total 36.00 36.00 36.00 38.00 40.00 40.00 39.00 41.00 41.00 41.00
Part Time Total (1) 24.14 22.20 31.91 30.53 34.47 34.27 32.44 27.62 28.61 21.66
TOTAL 60.14 58.20 67.91 68.53 74.47 74.27 71.44 68.62 69.61 62.66
Note: (1) 2,080 Hours of Part Time equals to 1 Full Time Equivalent
Source: City of Temple City Administrative Services Department
112
ATTACHMENT A
CITY OF TEMPLE CITY
Operating Information
Operating Indicators by Function -Last Ten Fiscal Years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Public Safety:
Arrests 514 949 1,105 852 626 758 535 548 486 680
Parking Citations 12,681 9,024 9,926 10,025 10,260 9,919 5,288 9,946 13,128 11,419
Public Works:
Sewers new connections 36 25 30 59 94 106 82 87 78 80
Parks & Recreation:
Number of recreation classes 330 390 400 368 380 374 326 320 210 204
Number of facility rentals 1,179 1,083 1,110 1,178 1,072 1,254 972 1,057 1,521 1,513
Source: City of Temple City Community Development Department, Parks & Recreation Department, and Los Angeles County Sheriff Department
113
ATTACHMENT A
CITY OF TEMPLE CITY
Operating Information
Capital Asset Statistics by Function -Last Ten Fiscal Years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
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 364 364 364 706 706 706 706 706 706 706
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 baseball/sofball 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
114
ATTACHMENT B
EideBaill~
CPAs & BUSINESS ADVISORS
December 26, 2019
To the Honorable Mayor and Members of the City Council
City of Temple City, California
We have audited the financial statements of the City of Temple City (City) as of and for the year
ended June 30, 2019, and have issued our report thereon dated December 26, 2019. Professional
standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing
Standards and Government Auditing Standards
As communicated in our letter dated June 28, 2019 our responsibility, as described by professional
standards, is to form and express an opinion about whether the financial statements that have been
prepared by management with your oversight are presented fairly, in all material respects, in
accordance with accounting principles generally accepted in the United States of America. Our audit
of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of
material misstatement. An audit of financial statements includes consideration of internal control
over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control over financial reporting . Accordingly, as part of our audit, we considered the internal
control of the City solely for the purpose of determining our audit procedures and not to provide any
assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to
communicate to you.
We have provided our comments regarding significant deficiencies in internal control in our
Independent Auditor's 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 dated December 26, 2019.
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ATTACHMENT B
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to
you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the
engagement, if applicable, have complied with all relevant ethical requirements regarding
independence.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of
the significant accounting policies adopted by the City is included in Note 1 to the financial
statements. There have been no initial selection of accounting policies and no changes in significant
accounting policies or their application during 2019. No matters have come to our attention that
would require us, under professional standards, to inform you about (1) the methods used to account
for significant unusual transactions and (2) the effect of significant accounting policies in controversial
or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and
are based on management's current judgments. Those judgments are normally based on knowledge
and experience about past and current events and assumptions about future events. Certain
accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ markedly from
management's current judgments.
The most sensitive accounting estimates affecting the financial statements were:
Management's estimates of the:
• Net pension liability, deferred inflows/outflows of resources, pension expense, and
disclosures, are based on actuarial valuations for the CalPERS plan.
• Other post-employment benefits (OPEB) liability, deferred 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 noted above and
determined that they were reasonable in relation to the basic financial statements taken as a whole.
2
ATTACHMENT B
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures affecting the
City's financial statements relate to:
The disclosure of the City's cost-sharing multiple employer defined benefit pension plan, net
pension liability, deferred outflows/inflows of resources, and pension expense, in Note 8 to the
financial statements. The valuation of the net pension liability and deferred outflows/inflows of
resources are sensitive to the underlying actuarial assumptions used, including but not limited
to, the investment rate of return and discount rate. As disclosed in Note 8, a 1% increase or
decrease in the discount rate has a significant effect on the City's net pension liability.
The disclosures related to the City's agent multiple employer defined benefit OPEB plan, net
OPEB liability, deferred outflows/inflows of resources, and OPEB expense, in Note 10 to the
financial statements. The valuations of the net OPEB liability and deferred outflows/inflows of
resources are sensitive to the underlying actuarial assumptions used including, but not limited
to, the investment rate of return, discount rate, and healthcare cost trend rates. As disclosed in
Note 10, a 1% increase or decrease in the discount rate and healthcare cost trend rates has a
significant effect on the City's net OPEB liability.
The financial statement disclosures are neutral, consistent, and clear.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of
the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and
likely misstatements identified during the audit, other than those that we believe are trivial, and
communicate them to the appropriate level of management. Further, professional standards require
us to also communicate the effect of uncorrected misstatements related to prior periods on the
relevant classes of transactions, account balances or disclosures, and the financial statements as a
whole.
Misstatements that we identified as a result of our audit procedures were brought to the attention
of, and corrected by, management are identified in the attached Schedule of Corrected
Misstatements.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or
auditing matter, which could be significant to the City's financial statements or the auditor's report.
No such disagreements arose during the course of the audit.
3
ATTACHMENT B
Representations Requested from Management
We have requested certain written representations from management which are included in the
management representation letter dated December 26, 2019.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, operating conditions
affecting the entity, and operating plans and strategies that may affect the risks of material
misstatement. None of the matters discussed resulted in a condition to our retention as the City's
auditors.
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 these specified parties.
Rancho Cucamonga, California
4
City of Temple City
Schedule of Corrected Misstatements
June 30, 2019
Number Fund Account/Description
1 General Payroll Checking
Wages Payable
To correct accrued payroll/wages payable balance and payroll checking
account balance
2 State Gas Cash/Checking
Tax A/R Intergovernmental
Measure Cash/Checking
M A/R Intergovernmental
To correct cash and account receivable balance
3 Sucessor Accrued Interest Payable
Agency Interest Expense
To correct accrued interest payable account balance
ATTACHMENT B
Debit Credit
$ 85,252
$ 85,252
66,709
66,709
41,376
41,376
63,237
63,237
5
ATTACHMENT C
EideBaill)'®
CPAs & BUSINESS ADVI SORS
Independent Accountant's Report on Applying Agreed-Upon Procedures
Related to the Article XIII-B Appropriations Limit Calculation
The Honorable Mayor and Members of the City Council
City of Temple City, California
We have performed the procedures enumerated below, which were agreed to by the City of Temple
City, California (City) (the specified party), to the Appropriations Limit Calculation of the City prepared in
accordance with Section 1.5 of Article XIII-B of the California Constitution, for the fiscal year ended June
30, 2019. The City's management is responsible for the Appropriations Limit Calculation. The
sufficiency of the procedures is solely the responsibility of the City. Consequently, we make no
representation regarding the sufficiency of the procedures described below either for the purpose for
which this report has been requested or for any other purpose.
The procedures performed and our findings are as follows:
1. We obtained the completed worksheets setting forth the calculations necessary to establish the
City's appropriation limit and compared the 2018-2019 limit and a nnual adjustment factors
included in those worksheets to the limit and annual adjustment factors that were adopted by
resolution of the City Council. We also compared the population and inflation options included
in the aforementioned worksheets to those that were selected by a recorded vote of the City
Council.
Finding: No exceptions were found as a result of this procedure.
2. We added last year's limit to the annual adjustment amount, and compared the resulting
amount to the 2018-19 appropriations limit.
Finding: No exceptions were found as a result of this procedure.
3. We compared the current year information to the worksheets described in No. 1 above and to
information provided by the California State Department of Finance.
Finding: No exceptions were found as a result of this procedure.
4. We agreed the prior year appropriations limit to the prior year appropriations limit adopted by
the City Council.
Finding: No exceptions were found as a result of this procedure.
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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 performed 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 Xlll-8 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.
Rancho Cucamonga, California
December 26, 2019
2
ATTACHMENT D
l
EideBaill~
CPAs & BUSINESS ADVISO RS
Independent Auditor's 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 the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, each major fund, and the aggregate remaining fund information of the City of Temple City,
California (City), as of and for the ye ar ended June 30, 2019, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements, and have issued our report
thereon dated December 26, 2019.
Internal Control Over Financial Reporting
In planning and performing 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 circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the City's internal 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 correct, misstatements on a timely basis. A material weakness is a d eficiency, or a
combination of deficiencies, in internal control su ch that there is a reasonable possib ility that a material
mis statement of the entity's financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may
exist that have not been identified. Given these limitations, during our audit w e did not identify any
deficiencies in internal control that we consider to be material weaknesse s. We did identify certain
deficienci es in internal control, described in the accompanying schedule of finding and re sponse as item
2019-001 and 2019-002 that we con sid er to be significant deficiencies.
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ATTACHMENT D
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to
be reported under Government Auditing Standards.
The City's Response to Findings
The City's response to the findings identified in our audit is described in the accompanying schedule of
findings and response. The City's response was not subjected to the auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Rancho Cucamonga, California
December 26, 2019
2
ATTACHMENT D
City of Temple City, California
Schedule of Findings and Responses
June 30, 2019
Finding 2019-001
BANK RECONCILIATION
Criteria or Specific Requirement:
As part of the City's year-end closing process, the reconciliation of bank accounts is a significant control
in ensuring the account balance is reasonably stated for completeness, accuracy and cutoff. This
process should be completed on a timely manner to ensure the accuracy of the account balance.
Condition:
As a result of our audit procedures, we noted the following:
• During our testing of the City's June 2019 payroll account, we noted the cash balance was
adjusted to include accrued payroll/wages that were issued subsequent to June 2019 and
included in the June 2019 reconciliation. As a result, both cash and accrued payroll/wages were
understated at year end by $85 thousand.
• During our testing of the City's June 2019 main checking account, we noted the cash balance
excluded direct deposits that were deposited in the bank prior to June 2019. As a result, cash
was understated by $108 thousand and intergovernmental accounts receivable was overstated
at year end by the same dollar amount.
Context:
The conditions noted above were identified as a result of our audit procedures.
Effect:
Audit adjustments were proposed to correct the City's cash, accrued payroll and intergovernmental
receivable. Further, the internal control environment is weakened.
Cause:
Certain aspects of the City's reconciliation and/or year-end closing procedures were not in place or
consistently applied.
Recommendation:
We recommend that the City strengthen its bank reconciliation procedures to ensure that reconciling
items are properly evaluated, supported and recorded on a timely basis.
3
City of Temple City, California
Schedule of Findings and Responses
June 30, 2019
View of Responsible Officials and Planned Corrective Action:
ATTACHMENT D
The two conditions were a result of revisions in the processes this year in that the payroll checking
account became a zero-based checking account, so the recording of payroll transactions were modified
between two bank accounts, and the cash receipting process is now being utilized to record direct
deposits in the City's checking account. For both conditions, we did not foresee the effect of how the
processes affect year-end transactions.
The City will ensure that year-end processes are reviewed and recorded to the appropriate month and
year.
Finding 2019-002
YEAR-END CLOSING
Criteria or Specific Requirement:
Management is responsible for the basic financial statements and all accompanying information as well
as all representations contained therein and for the fair presentation of the financial statement in
conformity with U.S. general accepted accounting principles. This requires management to work
through a year-end closing process to accumulate, reconcile, and summarize information for inclusion in
the annual financial statements. The year-end closing process include the review and/or reconciliation
of all balances within the City's general ledger, Accounts must be reviewed for proper cutoff,
classification and presentation. These processes should be completed on a timely manner to ensure the
accurate presentation of financial information.
Condition:
As a result of our audit procedures, we noted the Successor Agency's accrued interest payable had an
accumulated balance of $92 thousand. This balance had not been updated for this fiscal year. As a
result, accrued interest payable was overstated by $63 thousand.
Context:
The conditions noted above were identified as a result of our audit procedures.
Effect:
Audit adjustments were proposed to correct the City's accrued interest payable and related expense for
the private purpose trust fund.
Cause:
Certain aspects of the City's reconciliation and/or year-end closing procedures were not in place or
consistently applied.
4
City of Temple City, California
Schedule of Findings and Responses
June 30, 2019
Recommendation:
ATTACHMENT D
We recommend that the City strengthen its year-end closing procedures to ensure that year-end
account balances are properly evaluated, supported and recorded on a timely basis.
View of Responsible Officials and Planned Corrective Action:
The entry was recorded during the prior bond issue and staff was not aware of needing to update the
account. With this finding, management will ensure that this account is reconciled annually at year-end.
5
ATTACHMENT D
City ofTemple City, California
Summary of Prior Audit Finding
June 30, 2019
Summarized below is the current status of all audit findings reported in the prior audit's schedule of
findings and questioned costs.
Finding Program CFDANo. Compliance Requirement Status
No.
2018-001 Highway Planning and 20.205 Allowable Costs/Cost Implemented
Construction Cluster Principles, Cash Management
6