HomeMy Public PortalAbout09) 9A Comprehensive Annual Financial Rpt 06-30-11AGENDA
ITEM 9.A.
ADMINISTRATIVE SERVICES DEPARTMENT
DATE:
TO:
FROM:
MEMORANDUM
April17, 2012
The Honorable City Council
Jose E. Pulido, City Manager i.~
By: Tracey L. Hause, Administrative Services Director
Lee Ma, Accountant
SUBJECT: COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR)
JUNE 30, 2011
RECOMMENDATION:
It is recommended that the City Council receive and file the Comprehensive Annual
Financial Report (CAFR) for the year ended June 30, 2011.
BACKGROUND:
1. Since 1994, the City had been contracting with Conrad and Associates LLP for
auditing services.
2 . The City has historically produced General Purpose Financial Statements instead of a
CAFR. However for the fiscal years ending in 1996, 1997 and 1998, the City
completed CAFR's.
3 . Beginning in 1999, the City determined that since a CAFR was not required by State
law and returned to completing Basic Financial Statements. Further, preparation of a
CAFR required additional staff time and higher audit fees.
4 . ln 2006, Conrad and Associates LLP became Mayer Hoffman McCann PC and the
City continued to have them complete the year end audits and financial statements.
5. On June 28, 2011, the City Council approved the Fiscal Year (FY) 2011-12 City
Budget. With the approval of the Budget, the City Council directed City staff to issue
Requests for Proposals (RFP's) for all City contracts, including auditing services. In
addition a $50,000 funding appropriation for auditing services associated with the FY
2010-11 year end process was included in the FY 2010-11 adopted Budget.
6. On April 18, 2011, staff issued a RFP for the City's auditing services.
City Council
April17,2012
Page2
7. On May 13, 2011, the RFP formally closed and the City received two proposals from
Mayer Hoffman McCann PC and Vasquez & Company LLP.
8. On July 15, 2011, the City Manager/Interim Administrative Services Director and the
City's Accountant conducted an interview meeting with the representatives from
Vasquez & Company, LLP. It was determined after that meeting Vasquez & Company
could help the City undertake a comprehensive overview of the City's finances and
management practices. Further, the City would be returning to producing a CAFR and
Vasquez and Company, LLP would be completing the report as part of the audit
process.
9. On August 2, 2011, the City Council approved a Professional Services Agreement in
the amount of $45,000 with Vasquez & Company, LLP for auditing services for three
years with two one-year options.
10. On January 11, 2012, Vasquez & Company completed their field work and has
prepared the CAFR and related reports. 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 the FY
2010-11, the City did not receive in excess of $500,000 in Federal grant monies,
therefore a Single Audit and corresponding reports were not required.
ANALYSIS:
Comprehensive Annual Financial Report (CAFR)
A Comprehensive Annual Financial Report (CAFR) is a set of U.S. government financial
statements comprising the financial report of a state, municipal or other governmental
entity that complies with the accounting requirements-generally accepted accounting
principles (GAAP)-promulgated by the Governmental Accounting Standards Board
(GASB).
The CAFR accounting structure provides standardization and example documents. All
levels of government-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.
Beginning with FY 2010-11, the City has moved from a basic financial statement
presentation to this more transparent reporting. Most governmental agencies utilize this
type of reporting, providing for ease of comparing financial data from one agency to
another. The CAFR presents the financial activities for both the City and Redevelopment
Agency.
City Council
April17, 2012
Page 3
Vasquez & Company, LLP, Certified Public Accountants have issued an unqualified
("clean") opinion on the City and Agency's financial statements for the year ended June
30, 2011. 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.
Internal Control
The City assumes full responsibility for the completeness and reliability of the information
contained in this report based upon a comprehensive framework of internal controls that
have been 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 the financial statements in conformity with Generally
Accepted Accounting Principles. Because the cost of internal control should not exceed
anticipated benefits, the objective is to provide reasonable, rather than absolute assistance
that financial statements are free of any material misstatements.
Vasquez & Company LLP has issued a report discussing their findings on the City's
compliance with internal controls. This report is included as an attachment titled Letter of
Comments to Management. Staff has fully vetted these recommendations with the
auditors. The recommendations will be part of the strategic plan for the Administrative
Services Department and will be addressed prior to the inception of the FY 2011-12 audit.
Budgetary and Accounting System
Prior to the beginning of the fiscal year, the City Manager prepares and submits to the City
Council, a proposed annual budget covering expected revenue and all proposed
expenditures for the following year. Upon the completion of a public hearing, the City
Council may propose changes to the budget and approve the budget as revised. In any
public meeting after the adoption of the budget, the City Council may amend or
supplement the budget by motion, adopted by the affirmative votes of at least three
members of the City Council. All appropriations lapse at the end of the fiscal year to the
extent that they have not been expended or encumbered. Appropriations for on-going,
multi-year capital projects are adopted as part of the ensuring year's budget adoption
process.
Cash Management
The City Council adopted an Investment Policy annually and all investments are managed
in accordance with the Investment Policy. The Policy complies with all applicable
California statues and federal regulations. It is intended to preserve and protect the
investment principals, maintain sufficient liquidity, be diversified to meet anticipated cash
flows, avoid incurring unreasonable market rate risks and attain a reasonable market rate
of return.
Risk Management
City Council
April17 , 2012
Page4
The City manages its risk exposure through membership in the California Joint Powers
Insurance Authority (Authority). The Authority is composed of 122 California public entities
and is organized under a joint powers agreement. The purpose of the Authority is to
arrange and administer programs for pooling of self-insured losses , to purchase excess
insurance or reinsurance, and to arrange for group insurance for property and other
coverages.
FISCAL IMPACT:
This agenda item does not have a fiscal impact on the FY 2011-12 City Budget.
CONCLUSION:
Staff is recommending that the City Council receive and file the Comprehensive Annual
Financial Report (CAFR) for the year ended June 30, 2011.
ATTACHMENTS:
A. Comprehensive Annual Financial Report (CAFR) for the Year Ended June 30, 2011
B . Letter of Comments to Management
C. Report of Independent Auditors on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on the Audit of Financial Statements Performed
in Accordance with Governmental Auditing Strandars.
D. PowerPoint Presentation-Vasquez & Company LLP
Attachment A
Do "'FT g ~A
Comprehensive Annual Financial Report
City of Temple City, California
Year ended June 30, 2011
with Report of Independent Auditors
Prepared by: Finance Department
City of Temple City
Table of Contents
INTRODUCTORY SECTION
City Officials
FINANCIAL SECTION
Report of Independent Auditors
Management's Discussion and Analysis
Basic Financial Statements
Government·wide Financial Statements
Statement of Net Assets
Statement of Activities
Fund Financial Statements
Description of Major Funds
Balance Sheet
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
Statement of Revenues, Expenditures, and Changes in Fund Balances
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
Proprietary Fund
Description of Proprietary Fund
Statement of Net Assets
Statement of Revenues, Expenses, and Changes in Net Assets
Statement of Cash Flows
Fiduciary Fund
Description of Agency Fund
Statement of Fiduciary Assets and Liabilities
Notes to Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule
General Fund
Community Development Block Grant (CDBG)
CRA Debt Service Fund
Notes to Required Supplementary Information
Schedule of Funding Progress-California Public Retirement System
Schedule of Funding Progress-Other Postemployment Benefits
1
5
12
13
14
15
16
18
19
20
21
22
23
24
25
26
57
58
59
60
61
62
SUPPLEMENTARY SCHEDULES
Nonmajor Governmental Funds
City of Temple City
Table of Contents
Combining Balance Sheet 63
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances 64
Nonmajor Special Revenue Funds
Description of Nonmajor Special Revenue Funds 65
Combining Balance Sheet 69
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 75
STATISTICAL SECTION
Description of Statistical Section Contents 81
Financial Trends
Net Assets by Component-Last Nine Fiscal Years 82
Change in Net Assets-Expenses and Program Revenues-Last Nine Fiscal Years 83
Fund Balances of Governmental Funds-Last Nine Fiscal Years 85
Changes in Fund Balances of Governmental Funds-Last Nine Fiscal Years 86
Revenue Capacity
Assessed Value of Taxable Property-Last Nine Fiscal Years 88
Direct and Overlapping Government Property Tax Rates-Last Nine Fiscal Years 89
General Governmental Revenues -Last Nine Fiscal Years 90
Principal Property Taxpayers-Current Fiscal Year and Nine Fiscal Years Ago 91
Top 25 Sales Tax Producers-Current Fiscal Year and Ten Years Ago 92
Debt Capacity
Direct and Overlapping Debt 93
Demographic and Economic Information
Demographic and Economic Statistics-Last Nine Fiscal Years 94
Operating Information
Construction Activity 95
Full-Time Equivalent City Employees by Function-Last Nine Fiscal Years 96
Operating Indicators by Function-Last Nine Fiscal Years 97
C11Y OF TEMPLE CI1Y
C11Y OFFICIALS
June 30,2011
City Council
Tom Chavez, Mayor
Vincent Yu, Mayor Pro Tempore
Carl Blum, Councilmember
Cynthia Sternquist, Councilmember
Fernando Vizcarra, Councilmember
Administration and Department Heads
City Manager Jose E. Pulido
Economic Development Manager/Assistant to the City Manager Brian S. Haworth
City Clerk Mary R. Flandrick
Community Development Director Steve M. Masura
Financial Services Manager Vacant
Parks and Recreation Director Cathy Burroughs
FINANCIAL SECTION
IRVASQUEZ ~~[11 & COMPANY LLP
CERTIFI£0 rUIILIC ACCOUNTANTS ANO BUSINESS CONSULT ... NTS
801 South Grand Avenue, Suite 400 • Los Angeles, CA 90017-4646 • Ph. (213) 873-1700 • fax {213) 873-1777 • W'NW.vasquezcpa.com
REPORT OF INDEPENDENT AUDITORS
The Honorable Mayor and the Members of the City Council
City of Temple City, California
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 (the City),
as of and for the year ended June 30, 2011, which collectively comprise the City's basic financial
statements, as listed in the table of contents. These financial statements are the responsibility of the
City's management. Our responsibility is to express opinions on these financial statements based on
our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statements presentation. We believe that our audit provides a reasonable basis
for our opinions.
As discussed in Note 16, the California Supreme Court has upheld legislative bill ABX 1 26 which
dissolves California redevelopment agencies (Agency) and establishes mechanisms for paying
existing Agency debts and liquidating Agency assets. By operation of law, the Temple City Community
Redevelopment Agency was dissolved on February 1, 2012 and its assets were transferred to the City,
which is the designated successor agency.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of the City of Temple City, California, as of June 30, 2011, and the
respective changes in financial positions and cash flows, where applicable, thereof for the year then
ended in conformity with accounting principles generally accepted in the United States of America.
During the year, the City of Temple City implemented Governmental Accounting Standards Board
(GASB) Statement No. 54, Fund Balance Reporting and Government Fund-type Definitions, as
discussed in Note 1.
In accordance with Government Auditing Standards, we have also issued our report dated February
1, 2012, under separate cover, 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 describe the scope of our
testing of internal control over financial reporting and compliance and the result of that testing, and
not to provide an opinion on the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards
and should be considered in assessing the results of our audit.
1
Registered with Public Company Accounting Oversight Board
...
(This page intentionally left blank.)
2
The management's discussion and analysis, the budgetary comparison information, and the public
employees retirement system schedule · of funding progress as listed in the table of contents, are not
required parts of the basic financial statements but are supplementary information required by the
Governmental Accounting Standards Board. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However, we did not audit the information and
express no opinion on them .
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The supplementary schedules and statistical
section are presented for purposes of additional analysis and are not required parts of the basic
financial statements. These schedules have been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole. The statistical section has not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we express no opinion on them.
Los Angeles, California
February 1, 2012
3
(This page intentionally left blank.)
4
City of Temple City
Management's Discussion and Analysis
June 30, 2011
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, 2011. Readers are encouraged
to consider the information presented here in conjunction with the accompanying basic financial
statements.
Financial Highlights
• The City's net assets increased by $3,287,802 as a result of this year's operations.
• The total revenue from all sources was $16,300,825.
• The total cost of all City programs was $14,799,190.
• The City's total debt increased by $621,804 during the current fiscal year. The key factors in
this increase is the net of the addition of OPES obligation ($924,972), the increase in the
compensated absences liability ($11,832) and the decrease of the 2005 Refunding Revenue
Bonds payment ($305,000).
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Temple 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 financ;aJ 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. Accordingly, the financial information for the Temple City
Redevelopment Agency is included as an integral part of the City's financial statements and reported
as a blended component unit.
The statement of net assets presents information on all of the City of Temple City's assets and
liabilities, with the difference between the two reported as total net assets. Over time, increases and
decreases in net assets 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 assets changed during
the most recent fiscal year. All changes in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing related to cash flows. Thus, revenues and
expenditures are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g., uncollected taxes).
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.
5
City of Temple City
Management's Discussion and Analysis
June 30, 2011
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.
The City of Temple City maintains three individual governmental funds. Information is presented
separately in the governmental funds balance sheet and in the statement of revenues, expenditures,
and changes in fund balances for the CRA capital improvements fund, the CRA debt service fund
and the low and moderate housing fund, all of which are considered to be major funds.
The City of Temple City adopts an annual appropriated budget. A budgetary comparison statement
has been provided to demonstrate compliance with this budget.
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.
Government-wide Financial Analysis
Our analysis focuses on the net assets and changes in net assets of the City's governmental
activities for the fiscal year ending June 30, 2011.
6
City of Temple City
Condensed Statement of Net Assets
Current and other assets
Capital assets
Total assets
Current and other liabilities
Long-term liabilities .
Total liabilities
Net Assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
City of Temple City
Management's Discussion and Analysis
June 30, 2011
Governmental
Activities
$42,174,786
28.131,357
$ 70,306.143
$ 3,279,790
6.504.879
9,784,669
28,131,357
14,736,865
17.653.253
$ 60.521.475
The City's net assets increased by $3,287,802 during Fiscal Year (FY) 2010-11 . This represents the
degree to which ongoing revenues exceeded similar ongoing expenditures.
7
City of Temple City
Changes in Net Assets
Revenues:
Program revenues
Charges for services
Operating Contributions and Grants
Capital Contributions and Grants
General revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines
Investment income
Rental income
Low income grant and loan repayments
Other
Total revenues
Expenses:
General government
Community development
Public safety
Public works
Community services
Interest on long-term debt
Total expenses
Special item
Increase in Net Assets
Net Assets-Beginning of Year
Net Assets-End of Year
City of Temple City
Management's Discussion and Analysis
June 30, 2011
Governmental
Activities
$2,212,550
4,603,947
6,303,326
1,028,284
6,342,722
1,104,495
495,469
504,748
57,442
49,195
415 145
16.300,825
3,072,847
1,657,399
4,662,120
1,960,629
3,016,958
429.238
14.799,190
1.786.167
3,287,802
57.233.673
$60.521.475
The City of Temple City's total revenues are $16,300,825 while the total cost of all programs and
services are $14,799,190. The following table represents the cost of each of the City's largest
programs -general government, community development, public safety, public works, community
services, and interest on long-term debt-as well as each program's net cost. The net cost is the
total program expenses less the associated program revenues earned by that activity. The table also
shows the financial cost that was incurred by the City for each activity.
8
Statement of Activities
Governmental Activities
General government
Community development
Public safety
Public works
Community services
Interest on long-term debt
Total
City of Temple City
Management's Discussion and Analysis
June 30, 2011
Total Cost
of Services
$3,072,847
1,657,399
4,662,120
1,960,629
3,016,958
429.238
$14 799.190
The net cost of services indicates that the overall cost of the City of Temple City is more than the
revenues generated to support it. However, general revenues, such as property taxes, sales taxes,
motor vehicle in lieu and investment income, not associated with a particular activity, are not offset
against the direct cost of services.
Financial Analysis of the City's Funds
The City of Temple City's governmental funds reported a combined fund balance of $36,114,660 at
the end of the fiscal year. The debt service funds and the capital project funds are not yet incurring a
significant contribution to the reported Governmental fund balance.
The equity in the General fund balance increased by $672,046. The General Fund revenues
($10,644,685) exceeded General Fund expenditures ($9,972,639). 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 law enforcement, which was
$3,543,197 for Fiscal Year 2010-11. During this fiscal year the City also had $67,573 in Capital
Improvement Projects paid with General Funds.
The equity in the CRA Debt Service fund balance increased by $200,556. Revenue sources for this
fund are 80% of tax increment and investment earnings. This fund is responsible for 80% of the
semi-annual bond payments and debt service payments on City loans.
General Fund Budgetary Highlights
Revenues: Actual revenue received exceeded the final budget by $317,544. The City maintained an
operational surplus in the General Fund in FY 2010-11 of $672,046.
Expenditures: Actual expenditures were less than the final budget by $363,369 resulting from lower
costs for most programs in FY 2010-11.
9
City of Temple City
Management's Discussion and Analysis
June 30, 2011
Ending Fund Balance: The total fund balance at the beginning of the fiscal year was $24,700,378
and at the end of the year the fund balance was $25,313,718. The operational surplus in the General
Fund was $672,046. During FY 2010-11, a total of $67,573 in Capital Improvements Projects was
paid with General Funds. The net General Fund impact was $613,340, leaving a total increase of
$613,340 in the fund balance of the General Fund during FY 2010-11.
Capital Assets. and Debt Administration
Capital Assets. As shown in the following table, as of June 30, 2011, the City of Temple City had
$28,131,357 invested in capital assets, including land. buildings, improvements, furniture and
equipment, vehicles and infrastructure.
Capital Assets At Year-End
Land
Construction in progress
Buildings
Improvements
Furniture and equipment
Vehicles
Infrastructure
Sub Total
Less Depreciation
Net Total, Capital Assets
Governmental
Activities
$13,574,306
1 ,544,169
6,223,122
5,290,172
1.419,308
1,088,012
12.403.597
$41 ,542,686
(13.411.328)
$28.131.357
Long-Term Debt. In December 1993, the Temple City F inancing Authority (Authority) issued
$1,400,000 of Serial Bonds and two issues of Term Bonds totaling $3,245,000 for a total amount of
$4,645,000. In September 2005, the Temple City Financing Authority issued $5,780,000 of Serial
Bonds and $2 ,220,000 of Term Bonds to be paid from tax increment revenues . The Authority issued
the 2005 Refunding Revenue Bonds to refund 1993 loan and make a new loan to the Agency. At
June 30, 2011, the outstanding principal amount of loans payable from t he City to the Temple City
Financing Authority was $6,595,000.
Other Post Employment Benefits. Based on GASB No . 45, the City of Temple City had to disclose
the Net Other Post Employment Benefits (OPEB) obligation that is unfunded . The annual OP EB cost
is calculated based on the annual required contribution of the employer (ARC). The ARC represents
a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and
amortize any unfunded actuarial liabilities over a period not to exceed thirty years. Du ring fiscal year
2010-11, the City annual OPEB cost was $1 ,080,000. A total of $155,028 in contributions was made
during the fiscal year, leaving a net OPEB obligation of $924,972.
10
Outstanding Debt
2005 Refunding Revenue Bonds
Net OPEB Obligation
Compensated absences
Total
Contacting the eity's Financial Management
City of Temple City
Management's Discussion and Analysis
June 30, 2011
Governmental
Activities
$ 6,595,000
924,972
249,866
$ Z,Z6~Ml36
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. 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, CA. 91780.
11
ASSETS
Cash and investments
Cash and investments with fiscal agent
Accounts receivable
Interest receivable
Due from government agencies
Prepaid items
Loans receivable
Capital assets:
Capital assets, not being depreciated
Capital assets, being depreciated,
net of accurrulated depreciation
A cco unts payable
Accrued payroll
Accrued interest
Due to other funds
Refundable deposits
Deferred revenue
OPEB liability
Long-term liabilities:
UABIUTJES
Portion due within one year:
Compensated absences
Net OPEB obligation
Refunding revenue bonds payable
Portion due beyond one year:
Compensated absences
Refunding revenue bonds payable
NET ASSETS
Invested in capital assets
Restricted
Unrestricted
Total assets
Total liabilities
City of Temple City
Statement of Net Assets
June 30, 2011
$
Governmental
Activities
2011
38,494 ,009
627,225
243,020
33,330
1,122,907
1,310
1,652,985
15,1 1 8,475
13,012,882
70,30 6 ,143
1 ,388,921
142,581
102,456
118,133
137,140
125,600
24,987
924,972
315,000
224,879
6,280,000
9 ,784 ,669
28 ,131,357
14,736,865
17 ,653,253
Total net assets $ 60 ,521 ,475 =~~~~;__
See notes to financial statements .
12
Governmental Activities
General government $
Community development
Public safety
Pub lic 'M>rks
Community services
Interest on long-term debt
Total Governmental Activities $
Pro g ram Revenues
Charges Operating
for Contributions
Expenses Services and Grants
3,072,647
1,657,399
4,662,120
1,960,629
3,016,957
429,238
14,799.190
General revenues
Taxes:
82,910
1,007,719
516,034
88,506
517,381
2,212,550
Property taxes
Sales taxes
Transient occ upancy taxes
Franchise taxes
Other taxes
Investment in come
State motor vehicle in lieu
State revenue-other
Other revenue
44,773
273,917
1 36,935
4,065,287
83,035
4,603,947
Tot al general revenues
Change in net assets before special item
Special item
Net asset-beginning
Net asset -ending
Ch ange in n et asse ts
See notes to financi al statements.
13
Capital
Contributions
and Grants
$
City of Temple City
Statement of Activities
Year ended June 30, 2011
Net
Governmental
Activities
(2,945,164 )
{375,763)
{4,009,151)
2,193,164
(2,416,541)
(429 ,238)
(7,982,693)
3 ,259,485
1,614,726
34,221
542,523
99,701
409,097
3 ,229,651
8,844
285,880
9 ,464,328
1 ,501,635
1 ,786 ,167
3,287,802
57 ,233,673
60,521,475
Major Governmental Funds
General Fund
City of Temple City
Description of Major Funds
June 30, 2011
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.
Special Revenue Fund
CDBG
The CDBG Special Revenue Fund met the criteria to be classified as a major fund and is used to
account for resources in managing the different programs under the Community Development Block
Grant funded by the Housing and Urban Development.
Debt Service Fund
The Debt Service Fund has been classified as a major fund and is used to account for resources set
aside for repayment of long-term debt.
Nonmaior Governmental Funds
Nonmajor governmental funds include the Special Revenue Funds, the Capital Projects Funds and
the Permanent Fund. Since total assets, liabilities, revenues or expenditures of these funds do not
exceed 1 0% of total governmental funds, they do not meet the criteria to be classified as major
funds .
14
Special CRA
General Revenue Deb I
Fund CDBG service
ASSETS
Cash and invesi~TV~nts $ 23,200,828
Cash and lnvestrmnts \'lith fiScal agen 1 627,225
Accounls receivable 243,020
Interest receivable 32 ,191
Due from other funds 401 ,323
Due from other governments 494,537 16,820 214,067
Prepaid rtems 1,310
Loans receivables 604,171 1,036,154
Advances lo other funds 3,892,715
Total assets $ 28,870,095 1,052,974 8-41,292
UABIUllES
Accounts payable $ 922,936 80,988
Accrued payroll 133,790
Due to other furfds 16,820 172,433
Due lo other govemmenls
Refundable deposits 137,140
Deferred revenue 2,362,511 1,036,154
Advances from other funds 3,892,715
Total liabilities 3,556,377 1,133,962 4,065,148
FUND BALANCES
l'bnspendable 1,771,165
Restricted 627,225
U1assigned . 23,542,553 (80,988) (3.851,081)
Total fund balances (denclt) 25,313,718 (80 ,988) (3,223,856)
Total liabilities and fund balances $ 28,870,095 1,052,974 841 ,292
See notes to finan cial statements.
15
City of Temple City
Governmental Funds
Balance Sheet
June 30, 2011
Non -Major
GoverniTVInlal
Funds Tolal
14,438,622 37,839,450
627,225
2-43,020
1,139 33,330
121 ,163 522,486
397,-483 1,122 ,907
1,310
12,660 1,652,985
3,892,715
14,971,067 45,735,428
3S4,998 1,388,922
8,791 142,581
333,233 522 ,486
137,140
138,260 3,536,925
3,892,715
865,282 9,620,769
1,771,165
14,109,640 14,736,865
(3,855) 19,606,62g
14,105,785 36,114,659
14,971,067 45,735,428
City of Temple City
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
June 30, 2011
Fund balance of governmental funds
Amounts reported for governmental activities in the statement of net
assets are different because :
Capital assets net of depreciation have not been Included
as financial resources In governmental rund activity.
Cost of capita l assets, not being depreciated
Cost of capital assets, being depreciated
Accumulated depreciation
Long-term liabilities applicable to the City's governmental activities are
not due and payable in the current period and, accordingly, are not
reported as governmental fund liabilities. Ali liabilities (both current and
long-term) are reported in the Statement of Net Assets.
Compensated absences
Refunding revenue bonds payable
Net OPEB liability
Accrued liabilities in the Statement of Net Assets differ from the amount
reported in governmental funds due to accrued interest
on revenue bond payable.
Deferred revenue balances relating to certain loans receivable are not
reported as liabilities in the Statement of Net Asses since revenue
recognition is not based upon measurable and ava~able criteria.
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 Fu nd are included in governmental activities in the
Statement of Net Assets because it primarily service governmental
activities of the City.
Net assets or governmental activities
See notes to financial statements.
16
$ 36,114 ,659
15,118,475
26,424,210
(13,411,328)
(249,866)
(6,595,000)
(924 ,972)
(102,456)
3,411,326
736,426
$ 60,521,475
(This page intentionally left blank.)
17
City of Temple City
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
Year ended June 30, 2011
Special CRA
General Revenue Debt
Fund CDBG Service
Revenues
Taxes $ 4.451,470 879,349
Licenses and permits 1,028,284
Intergovernmental 3,229,851 156,803
Charges for services 631,355
Fines 423 ,041
lnvesiiMnt income 409,097 29
Rental income 57 ,442
Low income grant and loan repayments 49,195
Other 414,145
Total revenues 10,644,685 205,996 879,378
Expenditures
Current
General government 2,191.478
Community development 1,088,463 142,663
Public safety 4,352,010
Publicwort<:s 410,636
Comnunity services 1,930,052 28,531
Capilaloullay
Debt service:
Principal 244,000
Interest 369,958
Pass-through payments 36,333
SERAF payment to the State
Total expenditures 9,972,639 142,663 678,822
Excess(deficlency)ofrevenues
over expenditures 672,046 63,335 200,556
Other financing sources (uses)
Transfers in 441 ,1 29
Transfers out (499,835) (144,323)
Net other financing sources (uses) (58,706) {144,323)
Net change in fund balance 613,340 (80,988) 200,556
Fund balance, beginning of year 24,700,378 {3.424.412)
Fund balance, end or year $ 25,313,718 180,986l p.223,656l
See notes to financial statements.
18
Non-Major
Governmental
Funds Total
972,507 6,303,326
1,028,284
3,075,488 6.462,142
473,140 1,104,495
72,428 495,469
95 ,621 504,747
57,442
49,195
1 000 415 145
4,690,184 16.420,245
300,534 2,492,012
1,231,126
1,664 4,353,874
1,254,670 1,665,506
774,577 2,733,160
1,132.410 1,132,410
61,000 305,000
63,092 433,050
36,333
67,974 67,974
3,656,321 14.450,445
1,033,863 1,969,800
1,299,511 1,740,640
{1,096,482~ {1.740,640)
2031029
1,236,892 1,969,800
12,8681893 34,144,659
14,105,765 36,114,659
City of Temple City
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year ended June 30, 2011
Net change in Fund Balances-total governmental funds
Amounts reported for governmental activities in
the Statement of Activities are different because:
INhen capital assets that are to be used in governmental activities are
purchased or constructed, the resources expended for those assets
are reported as expenditures in governmental funds. However, in the
Statement of Activates, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. As a result,
fund balance decreases by the amount of financial recourses expended,
Vv'hereas net assets decreased by the amount of depreciation expenses
charged for the year.
Capital outlay
Depreciation expense
Repayment of bond principal is an expenditure In the governmental funds
and, thus , has the etrecl of reducing fund balance because current
financial resources have been used. For the City as a vllole, however,
the payments reduces the liability in the Statement of Net Assets and
does nol resull in an expense in the Statement of Activities.
Expenses in the Statement of Activities are Increased by the City's actuarially
determined annual required contribution for its other poslemployment
benefils whereas the governmental funds only report the actual cash
payments the City made for insurance premiums on behalf retirees and
their eligible family members.
Other post employment benefits
Compensated absences expense reported in the Statement of Activities
do not require the use of current financial resources and, therefore, are
not reported as expenditures in governmental funds.
Accrued Interest expenses related to long-term liabilities. This amount is
the difference between the amount of interest paid and the amount of
interest incurred on long-term liabilities.
Accrued but unpaid interest on loans is recorded as deferred revenue in the
governmental funds but is recognized as income in the Statement of Activities.
Change in the accrued but unpaid retrospective insurance receivable due from
other governmental is reflected in the Statement of Activities, but not reflected in
governmental funds .
The Internal Service Fund is used by management lo change the costs of
self insurance activities to individual funds. The adjustments for the
Internal Service Fund "close" the fund by charging additional amounts to
participating governmental activities to completely cover the Internal
Service Fund's costs for the year.
Change in net assets of governmental activities
See notes to financial statements.
19
$ 1,969,800
1 ,180,508
(591 ,613)
305,000
(924,972)
(11 ,832)
3,812
(82,096)
(119,419)
(227,553)
$ --===1=,5=0~1 .... 63;.;5;,.
·'
Internal Service Fund
Self Insurance Fund
City of Temple City
Description of Proprietary Fund
Year ended June 30, 2011
To account for goods and services relating to insurance premiums provided by one department to
other departments on a cost reimbursement basis.
See notes to financial statements.
20
ASSETS
Cash and investments
Total assets
LIABILITIES
Due to other governments
T otalliabilities
Unrestricted
Total net assets
NET ASSETS
See notes to financial statements.
21
City of Temple City
Statement of Net Assets
Proprietary Funds
June 30, 2011
Self Insurance
Internal
Service Fund
Totals
$ 854,559
854,559
118,133
118 ,133
736,426
$ 736,426
City of Temple City
Statement of Revenues, Expenses, and Changes in Net Assets
Proprietary Funds
Year ended June 30, 2011
Operating revenues:
Other
Total operating revenues
Operating expenses:
Insurance premiums
Total operating expenses
Change in net assets
Net assets at beginning of year
Net assets at end of year
See notes to financial statements.
22
Self Insurance
Internal
Service Fund
Totals
$ 44,773 ------:----'-=:-::-:--
44 ,773
272 ,326
272 ,326
{227 ,553)
963 ,979
$ 736,426
Cash flows from operating activities:
Cash payments to suppliers for goods and services
Cash received for other operating activities
Net cash provided by (used for) operating activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
City of Temple City
Statement of Cash Flows
Proprietary Funds
Year ended June 30, 2011
$
Self Insurance
Internal
Service Fund
Totals
(272,326)
44 ,773
(227,553)
(227,553)
1,082,112
$ ___ 8..;..54...:,,_55;..;,9~
Operating loss reconciles with the net cash used for operating activities at June 30, 2011.
Noncash transactions:
There were no significant noncash investing, capital or financing activities during the year
ended June 30, 2011.
See notes to financial statements.
23
CRA Trust Fund
City of Temple City
Description of Agency Fund
Year ended June 30, 2011
To account for maintenance fees held by the City as an agent for the Community Redevelopment
Agency.
24
Cash and investments
Accounts receivable
Total assets
ASSETS
LIABILITIES
Accounts payable
Due to general fund
Total liabilities
City of Temple City
Statement of Fiduciary Assets and Liabilities
Agency Funds
June 30, 2011
25
$
Totals
772
9,309
$ ___ 1~0,~08.;..1_
$ 2 ,165
7 ,916
$ ___ 1~0,:..0_81_
NOTE1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of the Reporting Entity
The City of Temple City was incorporated on May 25, 1960 under the general laws of
the State of California. On April 16, 1971 the City adopted resolution number 71-
1084 declaring itself a charter city. The City operates under the Council -Manager
form of government.
The City provides the following services as authorized by its general laws: Public
Safety, Highways and Streets, Health and Sanitation, Cultural and Park Facilities,
Public Improvements, Planning, Recreation and General Administrative Services.
The accounting policies of the City conform to generally accepted accounting
principles as applicable to governments. As required by generally accepted
accounting principles, these financial statements present the government and its
component units, entities for which the government is considered to be financially
accountable. The City is considered to be financially accountable for an organization
if the City appoints a voting majority of that organization's governing body and the
City is able to impose its will on that organization or there is a potential for that
organization to provide specific financial benefits to or impose specific financial
burdens on the City. The City is also considered to be financially accountable if an
organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set
rates or charges, or issue bonded debt without approval from the City). In certain
cases, other organizations are included as component units if the name 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.
Blended component units, although legally separate entities, are, in substance, part
of the government's operations and so data from these units are reported with the
interfund data of the primary government. The following organizations are considered
to be component units of the City:
Temple City Community Redevelopment Agency
The Temple City Community Redevelopment Agency (Agency) was established on
May 16, 1972 pursuant to the State of California Health and Safety Code Section
33000 entitled "Community Redevelopment Law". Its purpose is to prepare and carry
out plans for improvement, rehabilitation and redevelopment of blighted areas within
the territorial limits of the City of Temple City. Even though it is legally separate, it is
reported as if it were part of the City because the City Council also serves as the
governing board of the Agency. Upon completion, separate financial statements of
the Agency can be obtained at City Hall.
26
NOTE1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
City of Temple City Public Financing Authority
The Temple City Public Financing Authority (Authority) was established pursuant to a
Joint Exercise of Powers Agreement dated November 30, 1993, between the City
and the Temple City Community Redevelopment Agency (the "Members"). The
Authority was created for the purpose of providing financing for public capital
improvements for the Members. Even though it is legally separate, it is reported as if
it were part of the City because the City Council also serves as the governing board
of the Authority. No separate financial statements are issued for the Authority.
Citv of Temple City Housing Authority
The Temple City Housing Authority (Housing Authority) was established on
November 1, 2005, pursuant to the State of California Health and Safety Code 34200
entitled, "Housing Authority Law." The purpose of the Housing Authority of Temple
City is to provide safe and sanitary dwelling accommodations in the City to persons
of low income. Even though it is legally separated, it is reported as if it were part of
the City because the City Council also serves as the governing board of the Housing
Authority. No separate financial statements are issued for the Housing Authority.
Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
• Government-wide financial statements
• Fund financial statements
• Notes to basic financial statements
Financial reporting is based upon all GASB pronouncements, as well as the FASB
Statements and Interpretations, APB Opinions, and Accounting Research Bulletins
that were issued on or before November 30, 1989 that do not connict with or
contradict GASB pronouncements. FASB Pronouncements issued after November
30, 1989 are not followed in the preparation of the accompanying financial
statements.
27
NOTE1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Government-wide Financial Statements
Government-wide financial statements display information about the reporting
government as a whole, except for its fiduciary activities. These statements include
separate columns for the governmental and business-type activities of the primary
government (including its blended component units), as well as its discretely
presented component units. The City of Temple City has no business-type activities
or discretely presented component units. Eliminations have been made in the
Statement of Activities so that certain allocated expenses are recorded only once (by
the function to which they were allocated). However, general government expenses
have not been allocated as indirect expenses to the various functions of the City.
Government-wide financial statements are presented using the economic resources
measurement focus and the accrual basis of accounting. Under the economic
resources measurement focus, all (both current and long-term) economic resources
and obligations of the reporting government are reported in the government-wide
financial statements. Basis of accounting refers to when revenues and expenditures
are recognized in the accounts and reported in the financial statements. Under the
accrual basis of accounting, revenues, expenses, gains, losses; assets, and liabilities
resulting from exchange and exchange-like transactions are recognized when the
exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities
resulting from nonexchange transaction are recognized in accordance with the
requirements of GASB Statement No. 33.
Program revenues include charges for services, special assessments, and payments
made by parties outside of the reporting governmenfs citizenry if that money is
restricted to a particular program. Program revenues are netted with program
expenses in the statement of activities to present the net cost of each program.
Amounts paid to acquire capital assets are capitalized as assets in the government-
wide financial statements, rather than reported as an expenditure. Proceeds of long-
term debt are recorded as a liability in the government-wide financial statements,
rather than as another financing source. Amounts paid to reduce long-term
indebtedness of the reporting government are reported as a reduction of the related
liability, rather than as expenditure.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis
of separate funds, each of which is considered to be a separate accounting entity.
The operations ot each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenues and expenditures
or expenses, as appropriate. Governmental resources are allocated to and
accounted for in individual funds based upon the purposes for which they are to be
spent and the means by which spending activities are controlled.
28
NOTE1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund financial statements for the primary government's governmental, proprietary
and fiduciary funds are presented after the government-wide financial statements.
These statements display information about major funds individually and nonmajor
funds in the aggregate for governmental funds. Fiduciary statements include financial
information for fiduciary funds and similar component units. The Fiduciary Fund of
the City primarily represents assets held by the City in a custodial capacity for other
individuals or organizations .
Governmental Funds
In the fund financial statements, governmental funds and agency funds are
presented using the modified -accrual basis of accounting . The revenues are
recognized when they become measurable and available as net current assets.
Measurable means that the amounts can be estimated, or otherwise determined.
Available means that the amounts were collected during the reporting period or soon
enough thereafter to be available to finance the expenditures accrued for the
reporting period. The City generally considers revenues available if they are collected
within ninety days after the fiscal year-end. Significant revenues subject to accrual
under the measurable and available criteria include property taxes , sales taxes and
motor vehicle in-lieu.
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related
goods or services are provided). Locally imposed derived tax revenues are
recognized as revenues in the period in which the underlying exchange transaction
upon which they are based takes place. Imposed non-exchange transactions are
recognized as revenues in the period for which they were imposed. If the period of
use is not specified, they are recognized as revenues when an enforceable legal
claim to the revenues arises or when they are received, whichever occurs first.
Government-mandated and voluntary non-exchange transactions are recognized as
revenues when all applicable eligibility requirements have been met.
In the fund financial statements, governmental funds are presented using the current
financial resources measurement focus. This means that only current assets and
current liabilities are generally included on their balance sheets. The reported fund
balance (net current assets) is considered to be a measure of "available spendable
resources." Governmental fund operating statements present increases (revenues
and other financing sources) and decreases (expenditures and other financing uses)
in net current assets . Accordingly, they are said to present a summary of sources
and uses of "available spendable resources" during a period.
29
NOTE 1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Noncurrent portions of long-term receivables due to governmental funds are reported
on their balance sheets in spite of their spending measurement focus. Special
reporting treatments are used to indicate, however, that they should not be
considered "available spendable resources," since they do not represent net current
assets. Recognition of governmental fund type revenues represented by noncurrent
receivables are deferred until they become current receivables.
Because of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities.
Since they do not affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the
year that resources were expended, rather than as fund assets. The proceeds of
long-term debt are recorded as an other financing sources rather than as a fund
liability. Amounts paid to reduce long-term indebtedness are reported as fund
expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses
are considered to be paid first from restricted resources, and then from unrestricted
resources.
Proprietary Funds
The City's Internal Service Fund is a proprietary fund. In the fund financial
statements, proprietary funds are presented using the accrual basis of accounting.
Revenues are recognized when they are earned and expenses are recognized when
the related goods or services are delivered. In the fund financial statements,
proprietary funds are presented using the economic resources measurement focus.
This means that all assets and all liabilities (whether current or noncurrent)
associated with their activity are included on their balance sheets. Proprietary fund
type operating statements present increases (revenues) and decreases (expenses)
in total net assets.
Proprietary funds distinguish operating revenues and expenses from nonoperating
items. Operating revenues and expenses result from providing goods and services
related to the funds' ongoing operations. The principal operating revenue of the City's
Internal Service Fund is reimbursements relating to self-insurance. Operating
expenses 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.
30
NOTE 1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Amounts paid to acquire capital assets are capitalized as assets in the internal
service fund financial statements, rather than reported as an expenditure. Proceeds
of long-term debt are recorded as a liability in the internal service fund financial
statements, rather than as an other financing source. Amounts paid to reduce long-
term indebtedness of the internal service fund are reported as a reduction of the
related liability, rather than as an expenditure.
Fund Types
The basic accounting and reporting entity is a "fund ." A fund is defined as an
independent fiscal and accounting entity with a self-balancing set of accounts,
recording resources, related liabilities, obligations, reserves and equities segregated
for the purpose of carrying out specific activities or attaining certain objectives in
accordance with special regulations, restrictions or limitations.
The accounting records 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.
Debt Service Fund
The Debt Service Fund is used to account for resources set aside for repayment of
long-term debt.
Capital Projects Funds
Capital Projects Funds are used to account for financial resources to he used for the
acquisition, construction or improvements of major capital facilities and infrastructure.
31
NOTE1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
The City reports the following major governmental funds:
• 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.
• Debt Service Fund -To account for resources set aside for repayment of
long-term debt.
• City-Wide Capita/Improvements Fund-To account for all capital projects of
the City.
PROPRIETARY FUND TYPE:
Internal Service Fund
The Internal Service Fund is used to account for goods and services provided by one
department to other departments on a cost reimbursement basis.
FIDUCIARY FUND TYPE:
Agency Fund
The Agency Fund is used to account for assets that the City holds for others in an
agency capacity. The Fund is custodial in nature (assets equal liabilities) and does
not involve measurement of results of operations.
Reclassification and Eliminations
lnterfund balances must generally be eliminated in the government-wide financial
statements, except for net residual amounts due between governmental activities.
Amounts involving fiduciary funds are reported as external transactions. Any
allocations must reduce the expenses of the function from which the expenses are
being allocated, so that expenses are reported only once -in the function in which
they are allocated.
Advances to Other Funds
Long-term interfund advances to component units are recorded in the fund financial
statements as a receivable in the General Fund and as a liability in the component
unit's Debt Service Fund.
32
NOTE1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Loans Receivable
Certain loans receivable are not expected to be collected within one year. These
loans receivable are offset by deferred revenue on the balance sheet of
governmental funds.
Cash and Investments
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 fisc al
agents. Each fund's share in this pool is displayed in the accompanying financial
statements as cash and investments. Investment i ncome earned by the pooled
investments is allocated to the various funds based on each fund's average cash and
investment balance, except for approximately $83,419 of 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.
Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-
term, highly liquid investments that are both readily convertible to known amounts of
cash or so near their maturity that they present significant risk of changes in value
because of changes in interest rates. Cash equivalents also represent the proprietary
funds' share in the cash and investment pool of the City of Temple City. Cash
equivalents in the Permanent Fund include the fund's share in the cash and
investments pool of the City of Temple City and a certificate of deposit.
Employee Leave Benefits
Vacation time begins to accumulate as of the first day of employment to a maximum
of 240 hours. 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 of
loss (net of any insurance coverage) can be reasonably estimated .
33
NOTE1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 estimated fair market 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 $500 for general capital assets, $50,000 for
sewers (infrastructure) and $10,000 for all other infrastructure.
Capital assets used in operations are depreciated over their estimated useful lives
using the straight-line method in the government-wide financial statements.
Depreciation expense is charged as an expense against operations and accumulated
depreciation is reported on the Statement of Net Assets. The ranges of lives used for
depreciation purposes for each capital asset class are as follows:
Buildings and improvements
Furniture and equipment
Vehicles
40 years
5-7 years
5 years
Infrastructure:
Streets
Bridges
Traffic signals
Property Tax Calendar
50-80 years
50 years
20 years
The County of Los Angeles assesses, levies, and collects property taxes for the City.
Property taxes levied for the year ended June 30, 2011 were due and payable in two
installments on November 1 and February J and became delinquent on December 10
and April 10, respectively. At the date of incorporation, the City elected to be a follow
property tax city as an incentive for current and prospective residents to reside in the
City.
The property tax calendar is as follows:
Lien Date:
Levy Date:
Due Date:
Delinquent Date:
March 1
July 1
First Installment-November 1
Second Installment-February 1
First Installment-December 10
Second Installment-April 10
34
NOTE 1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Taxes are collected by Los Angeles County and are remitted to the City periodically.
Dates are percentages are as follows:
December 10
January 16
April10
May 15
July 3 1
Use of Estimates
30% Advance
Collection No. 1
10% Advance
Collection No. 2
Collection No.3
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.
Prior Year Data
Selected information regarding the prior year has been included in the accompanying
financial statements. This information has been included for comparison purposes
only and does not represent a complete presentation in accordance with generally
accepted accounting principles . Accordingly, such information should be read in
conjunction with the City's prior year financial statements, from which this selected
financial data was derived. Certain minor reclassifications of prior year data have
been made in order to enhance comparability with current year figures.
Fund Balances
In fiscal year ended June 30, 2011, the City implemented Government Accounting
Standards Board (GASB) Statement No. 54, Fund Balance Reporting and
Government Fund-type Definitions. This statement defines fund balance as the
difference between the assets and liabilities reported 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
reported 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 1) not in spendable form, such as inventories,
prepaids, 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.
35
" N O T E 1
C i t y o f T e m p l e C i t y
N o t e s t o F i n a n c i a l S t a t e m e n t s
Y e a r e n d e d J u n e 3 0 , 2 0 1 1
S U M M A R Y O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S ( C O N T I N U E D )
" C o m m i t t e d : R e s o u r c e s t h a t a r e c o n s t r a i n e d t o s p e c i f i c p u r p o s e s b y a f o r m a l
a c t i o n o f t h e C i t y C o u n c i l s u c h a s a n o r d i n a n c e o r r e s o l u t i o n . T h e c o n s t r a i n t
r e m a i n s b i n d i n g u n l e s s r e m o v e d i n t h e s a m e f o r m a l m a n n e r b y t h e C i t y C o u n c i l .
C o u n c i l a c t i o n t o c o m m i t f u n d b a l a n c e m u s t o c c u r w i t h i n t h e f i s c a l r e p o r t i n g
p e r i o d w h i l e t h e a m o u n t c o m m i t t e d m a y b e d e t e r m i n e d s u b s e q u e n t l y .
" A s s i g n e d : R e s o u r c e s t h a t a r e c o n s t r a i n e d b y t h e C i t y ' s i n t e n t t o b e u s e d f o r
s p e c i f i c p u r p o s e s , b u t t h a t a r e n e i t h e r r e s t r i c t e d n o r c o m m i t t e d .
" U n a s s i g n e d : W i t h i n t h e G e n e r a l F u n d , t h e r e s i d u a l r e s o u r c e s , e i t h e r p o s i t i v e o r
n e g a t i v e , i n e x c e s s o f w h a t c a n b e p r o p e r l y c l a s s i f i e d i n o n e o f t h e o t h e r f o u r
f u n d b a l a r T c e c a t e g o r i e s . W i t h i n a l l o t h e r g o v e r n m e n t a l f u n d s , t h e n e g a t i v e
r e s i d u a l r e s o u r c e s i n e x c e s s o f w h a t c a n b e p r o p e r l y c l a s s i f i e d a s n o n s p e n d a b l e ,
r e s t r i c t e d , o r c o m m i t t e d .
N e t A s s e t s
T h e g o v e r n m e n t a l a n d b u s i n e s s - t y p e a c t i v i t i e s i n t h e g o v e r n m e n t - w i d e f i n a n c i a l
s t a t e m e n t s u t i l i z e a n e t a s s e t s p r e s e n t a t i o n . N e t a s s e t s a r e c a t e g o r i z e d a s i n v e s t e d i n
c a p i t a l a s s e t s ( n e t o f r e l a t e d d e b t ) , r e s t r i c t e d a n d u n r e s t r i c t e d .
" I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t - T h i s c a t e g o r y g r o u p s a l l c a p i t a l
a s s e t s , i n c l u d i n g i n f r a s t r u c t u r e , i n t o o n e c o m p o n e n t o f n e t a s s e t s . A c c u m u l a t e d
d e p r e c i a t i o n a n d t h e o u t s t a n d i n g b a l a n c e s o f d e b t t h a t a r e a t t r i b u t a b l e t o t h e
a c q u i s i t i o n , c o n s t r u c t i o n o r i m p r o v e m e n t o f t h e s e a s s e t s r e d u c e t h e b a l a n c e o f t h i s
c a t e g o r y .
" R e s t r i c t e d n e t a s s e t s - T h i s c a t e g o r y p r e s e n t s e x t e r n a l r e s t r i c t i o n s i m p o s e d b y
c r e d i t o r s , g r a n t o r s , c o n t r i b u t o r s , l a w s o r r e g u l a t i o n s o f o t h e r g o v e r n m e n t s a n d
r e s t r i c t i o n s i m p o s e d b y l a w t h r o u g h c o n s t i t u t i o n a l p r o v i s i o n s o r e n a b l i n g l e g i s l a t i o n .
" U n r e s t r i c t e d n e t a s s e t s - T h i s c a t e g o r y r e p r e s e n t s t h e C i t y ' s n e t a s s e t s , w h i c h a r e
n o t r e s t r i c t e d f o r a n y p r o j e c t o r o t h e r p u r p o s e .
S t a t e m e n t o f C a s h F l o w s
F o r p u r p o s e s o f t h e s t a t e m e n t o f c a s h f l o w s , c a s h e q u i v a l e n t s a r e d e f i n e d a s
i n v e s t m e n t s w i t h o r i g i n a l m a t u r i t i e s o f 9 0 d a y s o r l e s s , w h i c h a r e r e a d i l y c o n v e r t i b l e
t o k n o w n a m o u n t s o f c a s h a n d n o t s u b j e c t t o s i g n i f i c a n t c h a n g e s i n v a l u e f r o m
i n t e r e s t r a t e f l u c t u a t i o n s .
3 6
NOTE2 CASH AND INVESTMENTS
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
Cash and investments at June 30, 2011 are classified in the accompanying financial
statements as follows :
Statement of Net Assets:
Cash and investments
Cash and investments w ith fiscal agents
Fiduciary Fund:
Cash and investments
Total cash and investments
$ 38,494,010
627,225
772
$ __ 39 ......... 12_2i=,00=7~
Cash and investments as of June 30, 2011 consist of the following :
Cash on hand
Deposits with financial institutions
Investments
Total cash and investments
$ 2,200
1,307,526
37,812,281
$ __ 3 .... 9,_12_2:....,0_07_
Investments Authorized by the California Government Code and the City's
Investment Policy
The table below identifies the investment types that are authorized for the City by the
California Government Code (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 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.
37
NOTE2
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
CASH AND INVESTMENTS (CONTINUED)
Authorized by Maximum Maximum
Investment Types Investment Maximum Percentage Investment
Authorized by State Law Policy Maturity* of Portfolio* In One Issuer*
Local Agency Bonds Yes 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 Yes 5 years None None
Local Agency Obligation Yes 5 years None None
Banker's h:ceptances Yes 180 days 40% 30%
Corrmercial Paper Yes 270 days 25% 10%
Certificates of Deposit Yes 2 years 30% None
Repurchase Agreements Yes 1 year None None
Reverse Repurchase Yes 92 days 20% of base value None
Medium-Term Notes Yes 5 years 30% None
Mutual Funds Yes N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% 10%
Mortgage Pass-Through Securities Yes 5 years 20% None
County Pooled Investment Funds Yes N/A None None
Local Agency Investment Fund (LAIF) Yes N/A None $40,000,000
JPA Pools (other investment pools) Yes N/A None None
Time Deposits Yes 5 years None None
*Based on state law requirements or investment policy -requ irements, whichever is more restrictive.
N/A-Not applicable
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the
debt agreements, rather than the general provisions of the California Government
Code or the City's investment policy. The table below identifies the investment types
that are authorized for investments held by fiscal agent. The table also identifies
certain provisions of these debt agreements that address interest rate risk and
concentration of credit risk.
38
NOTE2
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
CASH AND INVESTMENTS (CONTINUED)
Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio In One Issuer
local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
U.S . Agency Securities 5 years None None
Banker's Acceptances 1 year None None
Commercial Paper 1 year 25% 10%
Certificates of Deposit 1 year 30% None
Repurchase Agreements 30 days None None
Money Market Mutual Funds N/A 20% 10%
local Agency Investment Fund N/A None None
Investment Agreements N/A None None
Time Deposits 5 years None None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect
the fair value of an investment. Generally, the longer the maturity of an investment
the greater the sensitivity of its fair value to changes in market interest rates. One of
the ways that the City manages its exposure to interest rate risk is by purchasing a
combination of shorter-term and longer-term investments and by timing cash flows
from maturities so that a portion of the portfolio is maturing or coming close to
maturity over time as necessary to provide the cash flow and liquidity needed for
operations.
Information about the sensitivity of the fa i r values of the City's investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by
the following table that shows the distribution of the City's investments by maturity:
Remainin9 Maturing {in Months~
12 Months or 12 to 60
Investment Type Total Less Months
State Investment Pool (LAIF) $ 27,417,236 27,417,236
U.S. Agency Securitie s 1 ,695,000 1,695,000
Certificate of Deposit 7,508,000 2,933,000 4,575,000
Money Market Funds 564,820 564,820
Held by Fiscal Agent:
Money Market Mutual Funds 627 ,225 627 ,225
Total $ 37 ,8 12,281 31,542.281 6,270,000
39
NOTE2
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
CASH AND INVESTMENTS (CONTINUED)
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:
Rating as of Year End
Not
Investment Type Amount AAA Rated
State Investment Pool (LAIF) $ 27,417,236 NIA 27,417,236
U.S. Agency Securities 1,695,000 NIA 1,695,000
Certificate of Deposit 7,508.432 NIA 7,508,432
Money Market Funds 564,388 NIA 564,388
Held by Fiscal Agent:
Money Market Mutual Funds 627,225 NIA 627,225
Total $ 37,812,281 37,812,281
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be
invested in any one issuer beyond that stipulated by the California Government
Code. As of June 30, 2011, the City had no investments in any one issuer (other than
U.S. Treasury securities, mutual funds, and external investment pools) that represent
5% or more of total City investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover its deposits
or will not be able to recover collateral securities that are in the possession of an
outside party. The custodial credit risk for investments is the risk that in the event of
the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will
not be able to recover the value of its investment or collateral securities that are in
the possession of another party. The California Government Code and the City's
investment policy do not contain legal or policy requirements that would limit the
exposure to custodial credit risk for deposits or investments, other than the following
provision for deposits: The California Government Code requires that a financial
institution secure deposits made by state or local governmental units by pledging
securities in an undivided collateral pool held by a depository regulated under state
law (unless so waived by the governmental unit). The market value of the pledged
securities in the collateral pool must equal at least 110% of the total amount
deposited by the public agencies. California law also allows financial institutions to
40
NOTE2
NOTE3
NOTE4
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
CASH AND INVESTMENTS (CONTINUED)
secure District deposits by pledging first trust deed mortgage notes having a value of
150% of the secured public deposits.
For investments identified herein as held by fiscal agent, the fiscal agent selects the
investment under the terms of the applicable trust agreement, acquires the
investment, and holds the investment on behalf of the reporting government.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by the California Government Code under the oversight of the Treasurer of
the State of California. The fair value of the City's investment in this pool is reported
in the accompanying financial statements at amounts based upon the City's pro-rata
share of the fair value provided by LA IF for the entire LAIF portfolio (in relation to the
amortized cost of that portfolio). The balance available for withdrawal is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost
basis.
INTERFUND RECEIVABLES AND PAY ABLES
Current interfund receivables and payables balances at June 30, 2011 are as
follows:
Receivable Fund
General Fund
General Fund
CRA Capital Improvements Fund
Payable Fund
Nonmajor governmental Funds
CDBG Special Revenue Fund
CRA Debt Service
Total
Amount
$ 333,233 (a)
16,820 (a)
172,433 (a)
$ ==5;;;;;2;.;;;2l::,4=:B6=
(a) As of June 30, 2011, the non major governmental and CDBG funds owed $333,233 and
$16,820, respectively to the General Fund. Also, the CRA Debt Service Fund owed the
CRA Capital Projects Fund $172,433. These inlerfund advances were to fund temporary
cash deficits.
INTERFUND ADVANCES
Noncurrent interfund advances at June 30, 2011 are as follows:
Receivable Fund
General Fund
Payable Fund
CRA Debt Service
Amount
$ 3,892,715
No interfund advances are expected to be repaid within one year.
41
NOTE4
NOTE5
INTERFUND ADVANCES (CONTINUED)
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
Prior to October 6, 1998, the City incurred various expenditures on behalf of
the Agency that were accounted for as seven different loans. All seven loans plus the
unpaid accrued interest on those loans through June 30, 1998 were consolidated on
October 6, 1998 and accounted for as a single advance from the City to the Agency.
Interest on the consolidated advance accrues at 7% annually and is paid if tax
increment revenue exceeds the debt service requirements on the Series 2005
Refunding Revenue Bonds. If tax increment revenue is not available to make the
annual interest payment, interest is accrued on the original amount of the cash
advance, which increases the balance of the advance accordingly. The outstanding
balance at June 30, 2011 is $3,892,715, which includes $2,185,735 of accrued
interest.
INTERFUND TRANSFERS
lnterfund transfers for the year ended June 30, 2011 are as follows:
Transfers Out
Nonmajor
General CDBG Governmental
Transfers In Fund Fund Funds Total
General Fund $ 144,323 296,806 441,129
Non major Governmental Funds 499,835 799,676 1,299,511
Total $ 499,835 144,323 1,096,482 1.740,640
42
NOTEG LOANS RECEIVABLE
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
Loans receivable consist of the following at June 30, 2011:
Description Amount
General Fund:
Calabee's. Inc. $ 541,296 (a)
Low and Moderate Income Housing 56,775
Temple City Chamber of Commerce 6,100
604,171
Community Development Block Grant:
Horne improvement loans 1,036,154 (b)
CRA loans to Low and Moderate Income
Housing Programs 12,660
Total $ 1,652,985
(a) In August 2003, the City entered into a loan agreement with Calabee's, Inc, for
up to $1,105,000 with an annual interest rate of 4.50% in order to facilitate the
construction and operation of a certain restaurant located within the City. Under
the terms of the loan agreement, the City may disburse up to $300,000 per
month to Calabee's, Inc. during the construction phase of the project. The final
disbursement date will be the earlier of (1) the first day of the first month following
1 00% disbursement of the loan or (2) tile first day of the first month sixty days
after the date of opening. Calabee's, Inc. will begin making monthly principal and
interest payments of $11,005 for a period of 132 months (11 years) commencing
on the thirteenth month after the restaurant's opening date. Interest accrues on
the loan at a rate of 4.50% per year from the final disbursement date until the first
payment date.
During the first year of the restaurant's operation, Calabee's, Inc. will deposit with
the City an amount equal to 10% of monthly net operating income for the
establishment of a sinking fund. Funds deposited into the sinking fund become
property of the City and may be applied to any amounts due to the City at the
sole discretion of the City Manager. After three years of operation, the balance of
the sinking fund will be disbursed to Calabee's, Inc.
(b) The City provides deferred payment loans to low and moderate income
homeowners for repairs of building and zoning code violations through its
Community Development Block Grant program. The maximum amount of each
loan is $25,000 with 3% interest. Loan repayment is deferred until the home is
sold or changes title.
43
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
NOTE 7 CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2011 was as follows :
Balance Balance
Ju~ 1, 2010 Additions Deletions June 30 , 2011
Capital assets, not being depreciated:
Land $ 3,268,952 $ $ $ 3,268,952
Land improvements 1,839,413 1,839,413
Construction in progress 445,273 1,098,896 1,544,169
Infrastructure:
Land rights relating to streets 8,465,941 8,465,941
Total capital assets, not being depredated 14,019,579 1,098,896 15 ,118,475
Capital assets, being depreciated:
Buildings 6,223 ,122 6,223,122
Improvements 5,290,172 5,290,172
Furniture, fixtures and equipment 1,337,696 81,612 1,419,308
Vehicles 1,088,0 12 1,088,012
Infrastructure :
Streets 10,255,200 10,255,200
Traffic signals 1,190,394 1,190,394
Bridges 958 ,003 958 ,003
Total capital assets, being depreciated 26 ,342,599 81 ,612 26,424 ,211
Less accumulated depreciation for :
Buildings 1,407,291 149,977 1,557 ,268
Improvements 1,661,811 130,071 1,791 ,882
Furnitu.re, fixtures and equipment 1,154,220 70,543 1,224 ,763
Vehicles 873 ,637 88,281 961,918
Infrastructure:
Streets 5,663 ,199 137,777 5,800,976
Traffic signals 1,101 ,554 14,964 1,116,518
Bridges 958,003 958,003
Total accurrulated depreciation 12,819.715 591,613 13,4 11 ,328
Net capital assets being depreciated 13,522,883 (510,001) 13,012,882
Governmental activities capital assets, net $ 27,542,4 62 $ 588,895 $ $ 28.131 ,357
44
NOTE7
NOTES
NOTE9
CAPITAL ASSETS (CONTINUED)
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
Depreciation expense was charged to functions of the governmental activities as follows:
General Government
Community Development
Public Safety
Public Works
Community Services
Total
DEFERRED REVENUE
$ 87,271
40,920
23,389
223,765
216.268
$ 591,613
===~=
Deferred revenue consisted of the following as of June 30, 2011:
Nonmajor
General CDBG Governmental
Fund Fund Funds Total
Amounts assoda!ed v.ilh long-term
loans or advances:
Accrued interest portion of City's
advances to the Community
Redevelopment Agency $ 1,821,215 $ - $ - $ 1,821,215
Loans receivable 541,296 1,036,154 12,660 1 ,590,110
Unearned revenues 125,600 125,600
$ 2,362,511 $ 1,036,154 $ 138,260 $ 3,536,925
LONG-TERM LIABILITIES
Changes in long-term liabilities for the year ended June 30, 2011 were as follows:
Arrount Due Alrount
Balance at Adjustments Balance at 'Mthin One Due Mer
.kl!:( 1, 2010 Additions Retirements !~le1B} June 30, 2011 Year One Year
2005 Refunding
Revenue Bonds s 6,900,000 $ $ (305,000) $ 6,595,000 $ 315,000 $ 6,280,000
Nel OPEB ObUgation 1,786,167 1,080,000 (155,028) (1,786,167) 924,972 924,972
Compensated
Absences 238,034 52,394 !40,562} 249,866 24,987 224,879
$ 8,924,201 $ 1,132,394 $ !500,590} $ p.786,167) 7,769,838 $ 1.264, 959 $ 6,504,879
45
NOTE9
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
REFUNDING REVENUE BONDS, SERIES 2005
In September 2005, the Temple City Community Redevelopment Agency (Agency)
issued $5,780,000 of Serial Bonds and $2,220,000 of Term Bonds for a total amount
of $8,000,000 to be paid from future tax increment revenues. The Series 2005 bonds
were issued to refund $3,600,000 of outstanding Temple City Financing Authority
(Authority) 1993 Revenue Bonds and to provide the Agency with additional funds for
redevelopment activities. Interest is payable semi-annually on March 1 and
September 1 of each year, commencing March 1, 2006. Interest rates range from
3.0% to 4.9% on the serial bonds and 4.875% on the term bonds in amounts ranging
from $240,000 to $495,000. The bonds maturing on or after September 1, 2015 are
subject to redemption prior to maturity in whole or in part at the option of the Agency
in amount of 100% of the principal amount. The Term Bonds maturing on September
1, 2025 will be subject to mandatory redemption, on September 1, 2022 and each
September 1 thereafter at a redemption price equal to the principal amount thereof
together with accrued interest thereon to the redemption date without premium.
Under terms of the issue, a minimum of $627,225 is to be set aside in reserve funds .
The balance in the reserve account at June 30, 2011 was $627,225. The outstanding
balance on June 30, 2011 is $6,595,000.
Annual debt service requirements to maturity for the refunding revenue bonds
payable are as follows:
Year Ending
June 30, Principal Interest Total
2012 $ 315,000 $ 301,096 $ 616,096
2013 330,000 286,575 616,575
2014 345,000 271,080 616,080
2015 360,000 256,095 616,095
2016 375,000 240,105 615,105
2017-2021 2,155,000 920,521 3,075,521
2022-2026 2 ,715,000 343,136 3,058.136
Total $ 6,595,000 $ 2,618,608 $ 9,213,608
46
NOTE 10
NOTE 11
FUND BALANCES
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
Fund balances are composed of the following elements:
Special Non-Major
Revenue CRA Govemmenlal
General Fund CDBG Debt Service Funds Tole I
Fund Balances:
Nonspendable
Pll!paid ilems $
Loans receivable, nel ci deferred revenues
Advances to other flDlds, net of deferred revenues
Restrtctad for
Special revenue
Debt servloo fund
Unassigned
1,310 $
62,875
1,706,980
23,542,553 (80,988)
s $ $ 1,310
62,875
1,706,980
14,109,640 14, 109,6<10
627,225 627,225
(3,851,081) (3,855) 19,606,629
Total Fund Balances s 25,313,718 s (80,988) $ (3,223.856) $ 1~.105,785 $ 36,114,659
Assigned Fund Balance
The City's Fund Balance Policy delegates authority to the Finance Services Director
to assign amounts, which are neither restricted nor committed, to be used for specific
purposes for annual financial statement reporting. These amounts are referred to as
Assigned Fund Balances. The City has no Assigned Fund Balances as of June 30,
2011.
When expenditures are incurred for purposes for which both restricted and
unrestricted (committed, assigned, or unassigned) fund balances are available, the
City's policy is to first apply restricted fund balance. When expenditures are incurred
for purposes for which committed, assigned, or unassigned fund balances are
available, the City's policy is to first apply committed fund balance, then assigned
fund balance, and finally unassigned fund balance.
OTHER REQUIRED DISCLOSURES
Deficit Unassigned Fund Balances/ Unrestricted Net Assets
The following funds reported deficit fund balance/net assets at June 30, 2011:
Major Funds:
CDBG
CRA Debt Service
Special Revenue Fund:
Traffic Safety Grant
$
47
80,988
3,223,856
3,855
NOTE 11
NOTE 12
NOTE 13
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
OTHER REQUIRED DISCLOSURES (CONTINUED)
The deficit in the Debt Service Fund was due to the reporting of interfund advances,
which were accounted for in the General Long-Term Debt Account Group prior to the
implementation of GASB 34. Management expects to eliminate the deficits with
subsequent revenues or transfers from the General Fund.
DEFINED BENEFIT PENSION PLAN (PERS)
The City of Temple City contributes to the California Public Employees Retirement
System (PERS), a cost-sharing multiple-employer public employee defined benefit
pension plan. PERS provides retirement, disability benefits, and death benefits to
plan members and beneficiaries. PERS acts as a common investment and
administrative agent for participating public entities within the State of California.
PERS issues a publicly available financial report that includes financial statements
and required supplementary information for the cost sharing plans that are
administered by PERS. Copies of PERS' annual financial report may be obtained
from its executive office at 400 "P" Street. Sacramento, California 95814.
Miscellaneous participants are required to contribute 7% of their annual covered
salary. The City makes the contributions required of City employees on their behalf
and for their account. Benefit provisions and all other requirements are established
by state statute and city contract with employee bargaining groups.
The City has contributed at the actuarially determined rate provided by PERS'
actuaries. Under GASB 27, an employer reports an annual pension cost (APC) equal
to the annual required contribution (ARC) plus an adjustment for the cumulative
difference between the APC and the employer's actual plan contributions for the
year. The cumulative difference is called the net pension obligation (NPO). The ARC
for the period July 1, 2010 to June 30, 2011 has been determined by an actuarial
valuation of the plan as of June 30, 2008. The City's covered payroll for PERS was
$2,020,781 for the year ended June 30, 2008, while the City's total payroll for all
employees was $2,638,146 during the same period. In order to calculate the dollar
value of the ARC for inclusion in financial statements prepared as of June 30, 2011,
the contribution rate is multiplied by the payroll of covered employees that were paid
during the period from July 1, 2010 to June 30, 2011.
LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
City of Temple City is a member of the California Joint Powers Insurance Authority
(Authmity). The Authority is composed of 121 California public entities and is
organized under a joint powers agreement pursuant to California Government Code
6500 et seq. The purpose of the Authority is to arrange and administer programs for
the pooling of self-insured losses, to purchase excess insurance or reinsurance, and
to manage for group purchased insurance for property and other coverages. The
Authority's pool began covering claims of its members in 1978. Each member
48
NOTE 13
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
(CONTINUED)
government has an elected official as its representative on the Board of Directors.
The Board operates through a 9-member Executive Committee.
Self-insurance Programs of the Authority
A revised cost allocation methodology was introduced in fiscal year 2010-11,
however, it retains many elements of the previous cost allocation methodology.
Each member pays an annual contribution (formerly called the primary deposit) to
cover estimated losses for the coverage period. This initial funding is paid at the
beginning of the coverage period. After the close of the coverage period,
outstanding claims are valued. A retrospective deposit computation is then
conducted annually thereafter until all claims incurred during the coverage period are
closed on a pool-wide basis. This subsequent cost re-allocation among members
based on actual claim development can result in adjustments of either refunds or
additional deposits required. •
The total funding requirement for self-insurance programs is estimated using
actuarial models and pre-funded through the annual contribution. Costs are
allocated to individual agencies based on exposure (payroll) and experience (claims)
relative to other members of the risk-sharing pool. Additional information regarding
the cost allocation methodology is provided below.
Liability. In the liability program, claims are pooled separately between police and
non-police exposures. (1) The payroll of each member is evaluated relative to the
payroll of other members. A variable credibility factor is determined for each
member, which establishes the weight applied to payroll and the weight applied to
losses within the formula. (2) The first layer of losses includes incurred costs up to
$30,000 for each occurrence and is evaluated as a percentage of the pool's total
incurred costs within the first layer. (3) The second layer of losses includes incurred
costs from $30,000 to $750,000 for each occurrence and is evaluated as a
percentage of the pool's total incurred costs within the second layer. (4) Incurred
costs in excess of $750,000 up to the reinsurance attachment point of $5 million are
distributed based on the outcome of cost allocation within the first and second Joss
layers. (5) Costs of covered claims from $5 million to $10 million are paid under a
reinsurance contract subject to a $2.5 million annual aggregate deductible. Costs of
covered claims from $10 million to $15 million are paid under two reinsurance
contracts subject to a combined $3 million annual aggregate deductible. On a
cumulative basis for all fiscal year 2010-11 reinsurance contracts the annual
aggregate deductible is $5.5 million. (6) Costs of covered claims from $15 million up
to $50 million are covered through excess insurance policies.
49
NOTE13
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
(CONTINUED)
The overall coverage limit for each member including all layers of coverage is $50
million per occurrence.
Costs of covered claims for subsidence losses are paid by reinsurance and excess
insurance with a pooled sub-limit of $35 million per occurrence. This $35 million
subsidence sub-limit is composed of (a) $5 million retained within the pool's SIR, (b)
$10 million in reinsurance and (c) $20 million in excess insurance. The excess
insurance layer has a $20 million annual aggregate.
Workers' Compensation. In the workers' compensation program, claims are pooled
separately between public safety (police and fire) and non-public safety exposures.
(1) The payroll of each member is evaluated relative to the payroll of other
members. A variable credibility factor is determined for each member, which
establishes the weight applied to payroll and the weight applied to losses within the
formula. (2) The first layer of losses includes incurred costs up to $50,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within
the first layer. (3) The second layer of losses includes incurred costs from $50,000 to
$100,000 for each occurrence and is evaluated as a percentage of the pool's total
incurred costs within the second layer. (4) Incurred costs in excess of $100,000 up
to the reinsurance attachment point of $2 million are distributed based on the
outcome of cost allocation within the first and second loss layers. (5) Costs of
covered claims from $2 million up to statutory limits are paid under a reinsurance
policy. Protection is provided per statutory liability under California Workers'
Compensation Law.
Employer's Liability losses are pooled among members to $2 million. Coverage from
$2 million to $4 million is purchased as part of a reinsurance policy, and Employer's
Liability losses from $4 million to $10 million are pooled among members.
Purchased Insurance
Pollution Legal Liability Insurance. The City of Temple City participates in the
pollution legal liability insurance program (formerly called environmental insurance)
which is available through the Authority. The policy covers sudden and gradual
pollution of scheduled property, streets, and storm drains owned by the City of
Temple City. Coverage is on a claims-made basis. There is a $50,000 deductible.
The Authority has a limit of $50 million for the 3-year period from July 1, 2008
through July 1, 2011. Each member of the Authority has a $10 million sub-limit
during the 3-year term of the policy.
50
NOTE 13
NOTE14
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
(CONTINUED)
Prooertv Insurance. The City of Temple City participates in the all-risk property
protection program of the Authority. This insurance protection is underwritten by
several insurance companies. City of Temple City property is currently insured
according to a schedule of covered property submitted by the City of Temple City to
the Authority. City of Temple City property currently has all-risk property insurance
protection in the amount of $38,436,747. There is a $5,000 deductible per
occurrence except for non-emergency vehicle insurance which has a $1,000
deductible. Premiums for the coverage are paid annually and are not subject to
retrospective adjustments.
Earthquake and Flood Insurance. The City of Temple 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 Authority. City of Temple City property
currently has earthquake protection in the amount of $32,526,324. There is a
deductible of 5% per unit of value with a minimum deductible of $100,000.
Premiums for the coverage are paid annually and are not subject to retrospective
adjustments.
Crime Insurance. The City of Temple City purchases crime insurance coverage in the
amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided
through the Authority. Premiums are paid annually and are not subject to
retrospective adjustments.
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
fiscal year 2010-11.
POST-EMPLOYMENT BENEFIT PLAN
Employees who retire from the City are eligible to receive health care benefits
covering themselves and any qualified family members. The City pays 1 00% of the
cost of the medical insurance premiums of the retired employees and one-half of the
cost of the medical insurance premiums of their family members. The City also pays
1 00% of the cost of dental and vision insurance premiums of the retired employees.
Expenditures for post-retirement health care benefits for fiscal year 2011 amounted
to $155,028 which included 26 participants.
51
NOTE 15
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)
PRONOUNCEMENTS
GASB No. 55 • GASB has issued Statement No. 55, The Hierarchy of Generally
Accepted Accounting Principles for State and Local Governments . The objective of
this Statement is to incorporate the hierarchy of generally accepted accounting
principles (GAAP) for state and local governments into the Governmental Accounting
Standards Board's (GASB) authoritative literature. The Board does not expect that
this Statement will result in a change in current practice.
GASB No. 56 • GASB has issued Statement No. 56, Codification of Accounting and
Financial Reporting Guidance Contained in the A/CPA Statements on Auditing
Standards. The objective of this Statement is to incorporate into the Governmental
Accounting Standards Board's (GASB) authoritative literature certain accounting and
financial reporting guidance presented in the American Institute of Certified Public
Accountants' Statements on Auditing Standards. This Statement addresses three
issues not included in the authoritative literature . that establishes accounting
principles· related·party transactions, going concern considerations, and subsequent
events. This Statement does not establish new accounting standards but rather
incorporates the existing guidance (to the extent appropriate in a governmental
environment) into the GASB standards.
GASB No. 57· GASB has issued Statement No. 57 , OPEB Measurements by Agent
Employers and Agent Multipfe·Employer Plans. This Statement establishes
standards for the measurement and financial reporti ng of actuarially determined
information by agent employers with individual-employer OPEB plans that have
fewer than 1 00 total plan members and by the agent multiple-employer OPEB plans
in which they participate. In addition, it clarifies requirements of Statements 43 and
45 related to the coordination of the timing and frequency of OPEB measurements by
agent employers and the agent multiple·employer OPEB plans in which they
participate.
The requirements of this Statement apply to all state and local governmental agent
multiple-employer OPEB plans that are administered as trusts, or equivalent
arrangements , and to state and local governmental employers that participate in
such plans. The provisions of this Statement related to the use and reporting of the
alternative measurement method are effective immediately. The provisions related
to the frequency and timing of measurements are effective for actuarial valuations
first used to report funded status information in OPEB plan financial statements for
periods beginning after June 15, 2011.
52
NOTE15
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)
PRONOUNCEMENTS (CONTINUED)
GASB No. 58 -GASB has issued Statement No. 58, Accounting and Financial
Reporting for Chapter 9 Bankruptcies. This Statement establishes accounting and
financial reporting standards for all governments that have petitioned for relief under
Chapter 9 of the U.S. Bankruptcy Code or have been granted relief under the
provisions of Chapter 9 , including governments that enter into bankruptcy and are
not expected to emerge as a going concern. This Statement does not apply to
troubled debt restructurings that occur outside of bankruptcy. The disclosures
required by this Statement cease to apply for periods following the fiscal year in
which the bankruptcy case is closed or the government has its petition dismissed.
The requirements of this Statement are effective for periods beginning after June 15,
2009. Retroactive application Is required for all prior periods presented during which
a government was in bankruptcy.
GASB No. 59-GASB has issued Statement No. 59, Financial Instruments Omnibus.
The requirements of this Statement will Improve financial reporting by providing more
COJ]plete information, by improving consistency of measurements, and by providing
clarifications of existing standards. Applying the reporting provisions of Statement 31
for interest-earning investment contracts to unallocated insurance contracts improves
consistency of investment measurements that are reported by pension and other
postemployment benefit plans. Emphasizing the applicability of SEC requirements to
2a7-like external investment pools provides practitioners with improved guidance.
Limiting interest rate risk disclosures for investments in mutual funds, external
investment pools, and other pooled investments to debt investment pools provides
better guidance regarding the applicability of interest rate risk disclosures. Finally,
addressing the applicability of Statement 53 to certain financial instruments refines
which financial instruments are within the scope of that Statement. The provisions of
this Statement are effective for financial statements for periods beginning after June
15, 2010.
GASB No. 60 -GASB has issued Statement No. 60, Accounting and Financial
Reporting for Service Concession Affangements. This Statement establishes
guidance for accounting and financial reporting for SCAs. As used in this Statement,
an SCA is an arrangement between a government (the transferor) and an operator in
which all of the following criteria are met:
a. The transferor conveys to the operator the right and related obligation to provide
public services through the use and operation of a capital asset (referred to in
this Statement as a "facility") in exchange for significant consideration, such as
an up-front payment, installment payments , a new facility, or improvements to an
existing facility.
b. The operator collects and is compensated by fees from third parties.
c. The transferor determines or has the ability to modify or approve what services
the operator is required to provide, to whom the operator is required to provide
the services, and the prices or rates that can be charged for the services.
d. The transferor is entitled to significant residual interest in the service utility of the
facility at the end of the arrangement.
53
NOTE15
NOTE16
NOTE17
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)
PRONOUNCEMENTS (CONTINUED)
The provisions of this Statement should be applied in financial statements of state
and local governments that are prepared using the economic resources
measurement focus. The provisions of this Statement are effective for financial
statements for periods beginning after December 15, 2011.
GASB No. 61 -GASB has issued Statement No. 61, The Financial Reporting Entity:
Omnibus, an amendment of GASB Statements No. 14 and No. 34. This Statement
modifies existing requirements for the assessment of potential component units in
determining what should be included in the financial reporting entity, and financial
reporting entity display and disclosure requirements. It applies to financial reporting
by primary governments and other stand-alone governments; and to the separately
issued financial statements of governmental component units. In addition, this
Statement should be applied to nongovernmental component units when they are
included in a governmental financial reporting entity. The provisions of this Statement
are effective for financial statements for periods beginning after June 15, 2012.
GASB No. 62-GASB has issued Statement No. 62, Codification of Accounting and
Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and
AICPA Pronouncements. This Statement establishes accounting and financial
reporting standards for the financial statements of state and local governments. The
requirements of this Statement apply to accounting and financial reporting for
governmental activities, business-type activities, and proprietary funds. The
requirements in this Statement are effective for financial statements for periods
beginning after December 15, 2011.
REDEVELOPMENT AGENCY
On December 29, 2011, the Supreme Court filed its opinion ruling that Assembly Bill
(AB) X1 26 is constitutional and valid and that AB X1 27 is unconstitutional and
invalid. Consequently, all redevelopment agencies were dissolved on February 1,
2012 in accordance with that bill. The City of Temple City currently serves as the
successor agency that is responsible for all the remaining obligations of the dissolved
Agency.
CONTINGENT LIABILITIES
The City is a defendant in various litigations ansmg in the normal course of
operations. In the opinion of management and counsel, the outcome is not expected
to materially adversely affect the financial position of the City.
54
NOTE 17
f''t:.JTE 18
CONTINGENT LIABILITIES (CONTINUED)
Deferred Low/Moderate Set As ide
City of Temple City
Notes to Financial Statements
Year ended June 30, 2011
Under State law, the Agency is required to set aside a portion of its property tax
increment revenue for low and moderate income housing. The Agency has made
findings that, for fiscal years ended 1986 through 1996, it was exempt from funding any
of the set-aside. As of June 30, 2011, the accumulated set-aside amount not yet
funded was approximately $754,000. The law requires the Agency to devise a plan to
fund the accumulated deferred set-aside amount. Such a plan was adopted for
deferrals made through the 1995-96 fiscal year.
On March 29, 2007, the LA Community College District filed a lawsuit (as a writ of
mandate} against the City, its Community Redevelopment Agency, and numerous
other public entities contending that for the previous twenty years it did not receive its
correct share of pass-through payments of property tax increments under CA Health &
Safety Code Section 33607.5. The District claimed that the underpayment resulted
from the County Controller's failure to consider payments from the Educational
Revenue Augmentation Fund.
On January 14, 2009, the court ruled in favor of the defendants and the District
appealed the decision. On January 27, 201 0, the appellate court reversed the lower
court ruling and determined the County used the wrong formula in making the
allocation. The parties are awaiting the court's determination as to the proper formula
and allocations. Agency management does not expect the ultimate outcome of this
case to have a material adverse effect on the financial statements.
SPECIAL ITEM
In fiscal year 2010-11, the City had a second actuarial report for Other Post-
employment Benefits (OPEB) prepared by the Consultants. This report concluded a
change in the City's annual required contribution (ARC) and a change in the beginning
balance of the OPES accrued liability. The report assumes zero-based pre-funding or
no OPES accrued liability as of July 1, 2010. This is construed as a change in
estimate, thus, reported in the fiscal year 2010-11 financial statements as Special Item.
55
REQUIRED SUPPLEMENTARY INFORMATION
City of Temple City
General Fund
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 . The budget-to-actual
comparison for this fund has been presented in the accompanying financial statements as required
supplementary information.
56
Revenues
Taxes $
Licenses and permits
Intergovernmental
Charges for services
Fines, forfeitures and penallies
Investment income
Rental income
Other
Total revenues
Expenditures
Current
General government
Community development
Public safety
Public works
Community services
Total expenditures
Excess (deficiency) of revenues over
expenditures
Other financing sources (uses)
Transfers in
Transfers out
Net other financing sources (uses)
Net change in fund balances
Fund balance-beginning of year
Fund balance -end of year $
City of Temple City
Budgetary Comparison Schedule
General Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgetary Amounts Positive
Ori9inal Final Actual {Negative~
3,897,000 $ 3,897,000 $ 4,451,470 $ 554,470
1,022,000 1,022,000 1,028,284 6,284
3,001,750 3,001,750 3,229,851 228,101
569,340 569,340 631,355 62,015
580,000 580,000 423,041 (156,959)
365,000 365,000 409,097 44,097
60,000 60,000 57,442 (2,558)
391,250 391,250 414,145 22,895
9,886,340 9,886,340 10,644,685 758,345
2,301,935 2,513,560 2,191,478 322,082
1,184,200 1,333,600 1,088,463 245,137
4,540,250 4,548,950 4,352,010 196,940
1,961,570 480,060 410,636 69,424
3,247,340 2,165,830 1,930,052 235,778
13,235,295 11,042,000 9,972,639 1,069,361
(3,346,955) (1 '155,660) 672,046 1,827,706
616,395 616,395 441,130 175,265
{926,840) {926,840~ (499,835) (427,005}
(310,445) (310,445) {58,705) (251,740)
(3,659,400) (1 ,468, 1 05) 613,340 2,079,445
24,700,378 24,700,378 24,700,378
21,040,978 $ 23,234,273 $ 25,313,718 $ 2,079,445
57
Revenues
lntergovernmenta I
Low income grant
and loan repayments
Total revenues
Expenditures
Current:
Community development
Total expenditures
City of Temple City
Budgetary Comparison Schedule
Community Development Block Grant (CDBG)
Year Ended June 30, 2011
Variance with
Final Budget
Budgetary Amounts Positive
Ori~Jinal Final Actual (Negative}
$ 322,505 $ 322,505 $ 156,803 $ (165,702)
49,195 49,195
322,505 322,505 205,998 (116,507)
322,505 322,505 142,663 179,842
322,505 322,505 142,663 179,842
Excess (deficiency) of revenues over expenditures 63,335 63,335
Other financing sources (uses)
Transfers out 144,323 ~144,323)
Total other financing sources (uses) 144,323 (144,323)
Net change in fund balances (80,988) (80,988)
Fund balance at beginning of year
Fund balance at end of year $ $ $ ~80,988) $ (80,988~
58
Revenues
Tax Increment $
Interest LAIF
Total revenues
Expenditures
Administration
Professional fees
Debt service :
Principal payment
Interest payment
Pass-through payments
Total expenditures
Change in fund balances
Fund balance at beginning of year
Fund balance at end of year $
City of Temple City
Budgetary Comparison Schedule
CRA Debt Service Fund
Year Ended June 30, 2011
Variance with
Final Budget
Bud9e tar~ Amounts Positive
Original Fina l Actual (Negative)
718,930 $ 718,930 $ 879,349 $ 160,419
200 200 29 (171)
719,130 719,130 679,376 160,246
17,000 17,000 15,802 1,198
16,250 16,250 12,729 3 ,521
544,000 544,000 244,000 300,000
372,125 372,125 369,958 2,167
40,000 40,000 36,333 3,667
989,375 989,375 678,622 31 0 .553
(270,245) (270 ,245) 200,556 470,801
(3,424,412) (3,424,412) {3,424,412)
(3,694,657~ $ p,694,657) $ ~3,223,8561 $ 470,801
59
NOTE 1
City of Temple City
Notes to Required Supplementary Information
Year ended June 30, 2011
BUDGETS AND BUDGETARY ACCOUNTING
The City adopts an annual budget prepared on the modified accrual basis for all of its
governmental funds. During the year, there were budget modifications and
supplemental appropria~ons amounting to $3,520,070. 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 City Council. Prior year appropriations lapse unless they are
appropriated through the formal budget process. Expenditures may not legally
exceed appropriations at fund level. Reserves for encumbrances are not recorded by
the City of Temple City.
60
Actuarial
Actuarial Value of
Valuation Assets
Date (a~
6/30/2008 n/a
6/30/2009 $
6/30/2010 $
City of Temple City
California Public Retirement System
Schedule of Funding Progress
Year ended June 30, 2011
SCHEDULE OF FUNDING PROGRESS
Actuarial
Accrued UAAL as
Liability unrunded a%of
(ML) Entry ML Funded Covered Covered
Age (UAAL) Ratio Payroll Payroll
(b~ (b-a} (alb~ (c~ ( c)/(b-a)
n/a n/a n/a n/a nla
1,015,702 1,015,702 0% 2,261,211 45%
1,080,000 1,080,000 0% 2,329,000 46%
61
City of Temple City
Other Post Employment Benefits
Schedule of Funding Progress
Year ended June 30, 2011
The City's annual Other Post-employment Benefits (OPEB) cost, the percentage of annual OPES
cost contributed to the plan, and the net OPES obligation for 2009, 2010 and 2011 were :
Annual Percentage of
Fiscal Year Annual Contribution Annual OPEB Cost Net OPEB
Ended OPES Cost Made Contributed Obligation
6/30/2009 $ 1,015,702 $ 128,722 12.67% $ 886 ,980
6/30/2010 1,015,702 116,515 11.47% 1,786,167
6/30/2011 (1) 1,080,000 155,028 14.35% 924,972
(1) . The City had a second actuarial report prepared by Bartel Associates, LLC dated October
31, 2011 with a valuation date of June 30, 2011. The results of the report concluded a
change in the city's annual required contribution (ARC) amount, starting at zero base (as in
no prefunding). The financial statements reflect the new findings.
62
SUPPLEMENTARY SCHEDULES
Special
Revenue
Funds
ASSETS
Cash and Investments $ 12,052,325
Interest receivable
Due from other funds
Due from other governments 397,483
Loans receivables 12,660
Total assets $ 12,462,468
LIABILITIES
Accounts payable $ 257,609
Accrued payroll 8,791
Due to other funds 148,244
Deferred revenue 138,260
Total liabilities 552,904
FUND BALANCES
Restrided:
Education scholarship
Special revenue funds 11,913,419
Capital projeds funds
Unassigned {3,655)
Total fund balances 11,909,564
Total liabilities and fund balances $ 12,462,468
63
City of Temple City
Combining Balance Sheet
Nonmajor Governmental Funds
Year ended June 30, 2011
Ca(!ital Projeds
City-Wide CRA Permanent
Capital CapHal Camellia
Project Improvements Trust
Fund Fund Fund Tot als
120,646 2,084,118 161 ,533 14,438,622
1,139 1,139
121 ,163 121,163
397,483
12,660
120,646 2,206,420 181,533 14 ,971,067
120,646 6,743 384 ,998
8 ,791
184,989 333,233
138,260
120,646 191,732 665,282
181,533 161 ,533
11,913,419
2,014,688 2,014,688
(3,855)
2,014,688 181,533 14,105,785
120,646 2,206.420 181 ,533 14 ,971 ,067
City of Temple City
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
Year ended June 30, 2011
Ca[!ital ProJects
Cily-Wide CRA Permanent
Special Capital Capital Camellia
Revenue lmprovernenls Improvements Trust
Funds Fund Fund Fund Totals
Revenues
Taxes $ 972,507 972,507
Intergovernmental 3,075,488 3,075,488
Charges for services 473,140 473,140
Fines 72,428 72,428
Investment income 48,892 45,303 1,426 95,621
Other 1,000 1,000
Total revenues 4,642,455 46,303 1,426 4,690,184
Expenditures
Current:
General government 17,473 283,061 300,534
Public safety 1,864 1,864
Public works 1,254,870 1,254,870
Community services 771,978 2,599 774,577
Capital oullay 1,132,410 1,132,410
Debt service:
Principal 61,000 61,000
Interest 62,660 432 63,092
SERAF payment to the State 67,974 67,974
Total expenditures 2,169,645 1,132,410 351.467 2,599 3,656,321
Excess (deficiency) of revenues
over expenditures 2,472,610 p,132,410) (305,164) (1, 173) 1,033,863
Other financing sources (uses)
Transfers in 167,101 1 '132,410 1,299,511
Transfers out !1 ,096,482) (1 ,096 ,4 62)
Net other financing sources (uses) (929,381) 1,132,410 203,029
Nel change in rund balance 1,543,229 (305,164) (1,173) 1,236,892
Fund balance, beginning of year 10,366,335 2,319,852 162,706 12,668,693
Fund balance, end of year $ 11,909,564 2,014,666 161,533 14,105,785
64
City of Temple City
Description of Nonmajor Special Revenue Funds
June 30, 2011
The following Special Revenue Funds have been classified as nonmajor funds in the accompanying
financial statements:
Traffic Safety Fund ~ To account for the Vehicle Code fines which are expended for traffic safety
enforcement.
High Tech Grant Fund ~ To account for California Law Enforcement Equipment Purchase ~ High
Technology (CLEEP) funds distributed to the City which are used for law enforcement activities,
including the development of the Los Angeles Regional Crime Information System (LARCIS).
Citizens Option for Public Safety (COPS) Fund ~ To account for the revenues received from the
California Department of Justice to be used 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 used 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 used to finance
public transportation projects.
Used Oil Fund ~ To account for the revenues and expenditures of the Used Oil Recycling Block
Grant.
Traffic Safety Grant Fund~ To account for grant revenue received from the State of California Office
of Traffic Safety to be used for the City's approved bicycle and pedestrian safety program.
State Gas Tax Fund ~ To account 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.
Traffic Congestion Relief Fund~ To account for the revenues received from the State of California as
part of the state's share of the sales tax on gasoline sales that is distributed to the City to be used for
local transportation purposes and the relief of traffic congestion.
Asset Seizure Fund-To account for the revenues and expenditures from the seizure of properties.
Proposition 18 Fund-To account for revenues received from the State of California to maintain and
improve local streets and roads.
American Recovery and Reinvestment Act CARRA) Fund -To account for revenues received in
accordance with the American Recovery Reinvestment Act of 2009.
65
City of Temple City
Description of Nonmajor Special Revenue Funds (Continued)
June 30, 2011
Justice Assistance Grant Fund-To account for revenues received from the Justice Assistance Grant
Program that are to be used exclusively for law enforcement programs.
Bicycle and Pedestrian Fund -To account for the revenues received from the State of California to
maintain and improve the safety and practicality of bicycling and walking fo r everyday travel.
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 re lief 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 .
Sewer Reconstruction Fund -To account for special fees collected to be used for new sewer lines
and sewer line replacement.
EECBG Fund-To account for Energy Efficiency and Conservation Block Grant revenues received
from the federal government funded by the American Recovery & Reinvestment Act of 2009.
Congestion Management Fund -To account for the maintenance of specified levels of services on
identified roadways of regional significance, as required by California Government Code Section
65088.
Surface Transportation Program Fund-To account for monies received from the Federal government
to improve designated public right-of-ways .
1992/1996 Par1<: 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.
State Recycling Fund -To account for revenues received from fiscal yea r ended June 30, 2002
through fiscal year ended June 30, 2003 from the State Department of Conservation under Section
14581(a)(4)(a) of the California Beverage Container Recycling and Litter Reduction Act for beverage
container recycling and litter cleanup activities.
Park Acquisition Fund -To account for City imposed fees from the constructio n 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.
66
City of Temple City
Description of Nonmajor Special Revenue Funds (Continued)
June 30, 2011
Lighting and Landscape District Fund-To account for assessments and ad valorem which are used
for the operation and maintenance of street lights, traffic signals, and trees and parkways within the
City.
Low and Moderate Income Housing Fund -To account for monies received and expended to assist
low and moderate income households.
67
(This page intentionally left blank.)
68
Traffic High Tech
Safet~ Grant COPS
ASSETS
Cash and investments $ 8,784
Due from other funds
Due from other governments 4,026 12,706
Loans receivables
Total assets $ 4,026 8,784 12,706
LIABILITIES
Accounts payable $
Accrued payroll
Due to other funds 4,026 11,997
Deferred revenue
Total liabilities 4,026 11,997
FUND BALANCES {DEFICITS)
Restricted
Special revenue funds 8,784 709
Unassigned
Total fund balances (deficits) 8,784 709
Total liabilities and fund balances (deficits) $ 4,026 8,784 12,706
69
Public
Transportation-Used
PropC Oil
4,071,338 6,159
917
4,071,338 7,076
4,071,338 7,076
4,071,338 7,076
4,071,338 7,076
Traffic
Safety
Grant
9,927
9,927
13,782
13,782
(3,855)
(3,855)
9,927
70
City of Temple City
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2011
State
Gas Tax
1,011,776
108,051
1,119,827
"49,932
1,987
51,919
1,067,908
1,067,908
1,119,827
Traffic
Congestion
Relief
Asset Proposition
Seizure 18 ARRA
ASSETS
Cash and investments $ 729 111151397
Due from other funds
Due from other governments 381136
Loans receivables
Total assets $ 729 1.115,397 38,136
LIABILITIES
Accounts payable $
Accrued payroll
Due to other funds 381136
Deferred revenue
Total liabilities 38,136
FUND BALANCES (DEFICITS)
Restricted
Special revenue funds 729 11115,397
Unassigned
Total fund balances {deficits) 729 1,115,397
Total liabilities and fund balances (deficits) $ 729 1,115,397 38,136
71
Justice Bicycle
Assistance and
Grant Pedestrian
33,028 27,565
33,028 27 ,565
27,552
27,552
33,028 13
33,028 13
33,028 27,565
City of Temple City
Combining Balance Sheet
Nonmajor Special Revenue Funds (Continued)
June 30, 2011
Air Quality
Improvement Sewer
District MeasureR Reconstruction
65,352 494,902 611,056
8,564
73,916 494,902 611 ,056
73,916 494,902 611 ,056
73,916 494,902 611 ,056
73 ,916 494,902 611 ,056
72
Surface
Congestion Transportation
EECBG Management Program
ASSETS
Cash and investments $ 125,600 21,510
Due from other funds
Due from other governments 36,189
Loans receivables
Total assets $ 125,600 21,510 36,189
LIABILITIES
Accounts payable $
Accrued payroll
Due to other funds 36,189
Deferred revenue 125,600
Total liabilities 125,600 36,189
FUND BALANCES (DEFICITS)
Restricted
Special revenue funds 21,510
Unassigned
Total fund balances (deficits) 21.510
Total liabilities and fund balances (deficits) $ 125,600 21,510 36,189
73
1992/
1996 State Park
Park Bond Recycling Acquisition
69,004
69,004
69,004
69,004
69,004
City of Temple City
Combining Balance Sheet
Nonmajor Special Revenue Funds (Continued)
June 30, 2011
CRA
Lighting and Low Mod
Landscape Housing
District Fund
1,621,273 618 ,990
60,996 57,378
12,660
1,682,269 689,028
101,286 5,044
5,300
16,562
12,660
106,586 34,266
1,575,683 654,762
1,575,683 65 4 ,762
1,682,269 689,028
74
Total
12,052 ,325
397,483
12,660
12,462,468
257,609
8 ,791
148,244
138,260
552,904
11,913,419
{3 ,855)
11,909,564
12,462,468
Traffic High Tech
Safety Grant COPS
Revenues
Taxes $
Intergovernmental 100,000
Charges for services
Fines 72,428
Investment income 200
Total revenues 72.428 100,200
Expenditures
Current
General government
Public safety
Public works
Community services
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures 72,428 100,200
Other financing sources (uses)
Transfers in
Transfers out (99, 159) (100,000)
Net other financing sources (uses) (99, 159) (100,000)
Net change in fund balance (26,731) 200
Fund balance, beginning of year 26,731 8,784 509
Fund balance, end of year $ 8,784 709
75
C lty of Temple City
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
Year ended June 30, 2011
Public Public Traffic Traffic
Transportation -Transportation-Used Safety State Congestion
Prop A Prop C Oil Grant Gas Tax Relief
483,469 401,356 12,341 1,660 888,509
146,587
10,347 18,372 28 3,064 2,047
640,403 419,728 12,369 1,660 891,573 2,047
1,864
430,617
721,978
721 ,978 1,864 430,617
(81 ,575) 419,728 12,369 (204) 460,956 2 ,047
71,143
(8,845) (11,577} (95,959) (440 ,361)
(8,845) (11 ,577) (24,816) (440 ,361)
(81 ,575) 419,728 3,524 (11,781) 436,140 (438,314)
2,189,179 3,651 ,610 3,552 7,926 631,768 438,314
2,107,604 4 ,071,338 7,076 (3,855) 1,067,908
76
Asset Proposition
Seizure 1B ARRA
Revenues $
Taxes
Intergovernmental 530,758 130,271
Charges for services
Fines
Investment income 3,473
Total revenues 534,231 130,271
Expenditures
Current:
General government
Public safety
Public works
Community services
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures 534,231 130,271
Other financing sources (uses)
Transfers in
Transfers out (15,745) (130,271)
Net other financing sources (uses) (15,745) (130,271)
Net change in fund balance 518,486
Fund balance, beginning of year 729 596,911
;.,_~pd balance, end of year $ 729 1,115,397
77
City of Temple City
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds (Continued)
Year ended June 30, 2011
Justice Bicycle Quality
Assistance and Improvement Sewer
Grant Pedestrian District MeasureR Reconstruction EECBG
33,028 27,565 39 ,362 299,755 14,500
13 192 1,638
33,028 27,578 39,554 301,393 14,500
33,028 27,578 39,554 301,393 14,500
(27,565) (33,514) (14,500)
(27,565) (33,514) (14,500)
33,028 13 39,554 267,879
34,362 227,023 611 ,056
33,028 13 73,916 494,902 611,056
78
Surface 1992/
Congestion Transportation 1996
Management Program Park Bond
Revenues
Taxes $
Intergovernmental 36,189 62,725
Charges for services 1,496
Fines
Investment income
Total revenues 1,496 36,189 62,725
Expenditures
Current
General government
Public safety
Public works
Community services
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures 1,496 36,189 62,725
Other financing sources (uses)
Transfers in
Transfers out (36, 189) (62,725~
Net other financing sources (uses) (36, 189) (62,725)
Net change in fund balance 1,496
Fund balance, beginning of year 20,014
Fund balance, end of year $ 21,510
79
City of Temple City
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds (Continued)
Year ended June 30, 2011
Lighting CRA
and Low Mod
State Park Landscape Housing
Recycling Acquisition District Fund Total
752,670 219,837 972,507
14,000 3,075,488
325,057 473,140
72,428
6,194 3,324 48,892
14,000 1,083,921 223,161 4,642,455
17,473 17,473
1,864
824,253 1,254,870
50,000 771,978
61,000 61,000
62,660 62,660
824,253 ~1,133 2,169,845
14,000 259,668 32,028 2,472,610
95,958 167,101
(2,567) {8,804) (8,701) (1,096,482)
(2,567) (8,804) 87,257 (929,381)
(2,567) 5,196 346,925 32,028 1,543,229
2,567 63,808 1,228.758 622,734 10,366,335
69,004 1,575,683 654,762 11,909,564
80
City of Temple City
Description of Statistical Section Contents
This part of the City of Temple City's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements,
note disclosures, and required supplementary information says about the 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 city's
most significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the
affordability of the city's current levels of oustanding 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 rei event year.
81
I 2003 2004 2005 2006
Governmental activities:
City of Temple City
Net Assets by Component-Last Nine Fiscal Years
2007 2008 2009 2010 2011 I
Net of related debt $21,478,497 $21,810,699 $22,680,134 $22,123,584 $22,411,970 $24,916,427 $26,109,373 $27,542,462 $ 28,131,357
Restricted 5,535,110 5,130,591 6,207,393
Unrestricted 15,465,179 15,647,820 15,887,321
Total governmental activities net assets $42,478,786 $42,589,110 $44,774,848
%changes from prior year O.ClO% 0.26% 5.13%
The City of Temple City implemented GASB34 for the fiscal year end June 30, 2003
information prior to the implementation of GASB34 is not available.
10,094,196
15,368,695
$47,586,475
6.28%
82
10,569,111 8,637,170 9,924,588 10,961,386 14,736,865
17,966,076 21,393,668 20,313,976 18,729,825 17,653,253
$50,947,157 s 54,947,265 $56,347,937 $57,233,673 $ 60,521,475
7.06% 7.85% 2.55% 1.57% 5.74%
I
Expenses :
Governmental activities:
General govemment
Public safety
Publlcworics
Community development
Community Services
Decline In value of property held for resale
Pass through expenditures
Interest on Long· Tenn Debt
Total governmental activities expenses
Program revenues :
Governmental activities:
Changesforsenrices
General government
Public safety
Public works
Community development
Community Services
Operating grants and contributions
General government
Public safety
Public worils
Community development
Community Services
Capital srants and contributions
Public safety
Publicworics
Community development
City of Temple City
Change in r.J~t Assets-t:.xpenses and Program Revenues-Last Nine Fiscal Years
2003 2004 2005 2006 7JYJ7 2.008 2009 2010 2011 I
$ 2,635, 721 $ 1,838,445 $ 2,173,412 $ 1,929,063 $ 1,932,634 S 2,!)6(M31 $ 2,410,692 $ 2, 716,505 $ 3,072,847
3,218,326 3,245,750 3,340,097 3,4n,139 3,773,419 4,197,010 4,528,763 4,484,281 4,662,120
3,561,793 3,566,452 2,715,305 3,012,664 3,422,014 4,624,945 2,827,551 2,969,555 1,960,629
1,069,952 1.385,106 1,194,837 1,297,393 1,181,969 1,2n,s7o 1,620,525 1,480,064 1,657,399
1,640,461 1,648,467 1,715,670 1,821,923 2,088,649 2,380,609 2,813,843 2,581,200 3,016,957
251,110 245,678 239,760 714,252 352,823 343,561 333,209 321,043 429,238
$12,377,363 $11,929,898 $11,379,081 $12,252,434 s 12,751,508 $14,884,426 $14,534,583 s 14,552,648 s 14,799,190
$ 169,126 $ 175,288 $ 171.523 $ : 164,010 $ 165,695 $ 149,281 s 149,576 s 151,245 s 82,910
374,141 444,894 569,685 538,813 560,933 555,632 647,841 8n,083 516,034
5,020 53,478 8,720 699,729 208,002 87,170 61,068 56,906 88,506
1,318,276 1,320,416 1,195,003 1,178,687 1,251,314 1,469,402 927,150 1,056,657 1,007,719
507,554 541,783 600,899 645,626 718,686 797,332 790,357 686,185 517,381
52,336 51,561 53,337 55,006 58,335 54,002 51,038 ~5,555 44,773
134,638 123,099 102,313 130,764 113,801 103,176 100,589 133,272 136,935
1,120,511 786,122 721,799 890,949 981,538 1,299,422 928,018 1,886,781 4,065,287
356,649 442,749 151,668 202,457 178,948 104,763 717,302 349,299 273,917
1,458,074 97~.058 1,328,053 1,256,579 1,627,245 1,309,753 1,168,478 975,576 83,035
20,690 184,895 422,216 1,762,3 14 78,551
Total governmental activitl esrevet $ 5,517,015 S 5,098,343 $ 5,325,216 $ 5,762,620 $ 5,864,497 s 7,692,247 $ 5,619,968 $ 6,218,559 $ 6,816,497
Net revenues (expenses):
Governmental activities: s (6,860,348) $ (6,831,555) $ (6,053,865) $ (6,489,814) $ (6,887,011) $ (7,192,179) $ (8,914,615) $ (8,334,(l!l9l___L_11,_982,693)
83
City of Temple City
Change in Net Assets-Expenses and Program Revenues-Last Nine Fiscal Years (Continued)
General revenues and other changes in net assets:
Taxes
Property Taxes $ 2,574,782 $ 2,542,508 s 2,592,096 $ 3,041,999 $ 3,438,142 s 3,610,345 s 3,764,946 s 2,780,452 s 3,259,485
Transient Oa:upancy Tax 37,422 41,019 38,885 41,881 47,325 45,013 41,536 34,844 34,221
Sales Tax 1,417,503 1,393,522 1,476,564 1,552.704 1,607,510 1,764,523 1,675,895 1,475,728 1,614.726
Franchise Tax 466,528 491,360 502,259 526,725 569,796 560,375 581,526 533,542 542,523
Other Taxes 147,575 157,750 189,046 193,785 153,579 118,497 91,886 127,573 99,701
Investment Income 400,260 271,215 263,853 907,319 1,363,484 1,233,122 712,967 262,636 409,097
State MotorVehide In Ueu 2,070,995 1,684,796 2,923,061 3,0U,017 2,752,706 3,482,229 3,059,138 3,549,571 3,229,851
State Revenue-Other 28,509 87,184 12,505 37,248 6,737 13,063 8,203 6,975 8,844
Net loss on sale of assets -(297,6011
Other 282,683 272,525 241,334 285,364 308,414 365,120 379,190 448,504 285,81Kl
Total general revenues and transfe $ 7,426,257 $ 6,941,879 S 8,239,603 $ 9,301,441 $10,247,693 $11,192,287 $10,3 15,287 S 9,219,825 $ 9,484,3 28
Changes In net assets $ 565,909 $ 110,324 $ 2,185,738 $ 2,811,627 s 3,360,682 $ 4,CXXl,l!Jl $ 1,400,672 $ 885,736 $ 1,501,635
Spedal item -----1,786,167
Net Assets at beginning of year $41,912,877 $42,478,786 $42,589,110 $44,774,848 $47,586,475 $50,947,157 $54,947,265 $56,347,937 $ 57,233,673
Net Assets at end of year $42,478,786 $42,589,110 $44,774,848 $47,586,475 $50,947,157 $54,947,265 $56,347,937 $57,233,673 $ 60,521,475
Source: City of Temple City Basic Financial Statements
The City of Temple City implemented GASB 34 fort he fiscal year ended June 30,2003
84
General Fund
Restricted
Unassigned
Total General Fund
All other governmental fund:
Restricted
Unassigned, reported In:
Spe ci al revenue funds
Capital projects funds
Debt service funds
Total all other governmental funds
Total Governmental Funds
City of Temple City
Fund Balances of Governmental Funds-Last Nine Fiscal Years
1~ ~ ~ ~ ~ ~ ~ ~ ~ ~1
s 2,316,791 s 2,459,397 s 3,497,914 s 9,065,656 s 3,187,512 $ 2,966,122 s 2,751,507 s 2,563,065 $ 2,360,171 1,n1,16S
15,636,329 t6,2n,1oz 15,~27,852 10,249,54/l 18,253,707 20,906,179 22,063,783 22,052,532 22,340,207 23,~2,553
s 17,953,120 $18,737,099 $18,925,766 $19,315,200 $21,441,219 $23,872,301 $24,815,290 $24,615,597 $24,700,378 $ 25,313,718
$ 634,486 s 2,611 s 1,180 $ 5,539,337 $ 1,598 $ 6,074 $ 10,129 s 10,931 22,706 $ 14,736,865
6,404,726 5,9m,438 5,078,633 6,~8.251 11,038,120 11,636,875 11,944,610 12,495,281 12,846,187 (84,843)
208,961
(3,763,765) (3,736,547) (9,301,492) (3,391,240) (3,357,488) (3,352,088) (3,314,129) (3,424,412) (3,851,081)
s 6,613,687 s 2,216,673 s 1,342,086 $ (3,253,241) s 7,646,880 s 8,279,387 $ 8,592,522 $ 9,181.152 s 9,421,775 s (3,935,924)
$ 25,201,293 $20,956,383 $20,269,032 $21,601,296 $29,089,697 $32,157,762 $33,417,941 $33,807,680 $34,144,859 $ 36,114,659
(1) This schedule reports using the modified accrual basis of accounting .
(2) The CiiV implemented GASB 34, the new reporting standard in fiscal year 2003 .
Source: C1ty ofTemple City Basic Financial Statements
85
I 2002
Revenues:
City of Temple City
Changes in Fund Balances of Governmental Funds-Last Nine Fiscal Years
2003 2004 zoos 2006 2007 2008 2009 2010 2011 I
Taxes $ 3,892,038 $ 4,1!l6,570 $ 4,172,739 $ 4,324,688 s 4,808,989 $ 5,173,859 $ 5,417,410 $ 5,514,153 $ 4,641,626 s 6,303 ,326
Uce nses and Penni ts 930,184 1,163,070 1,225,266 1,144,414 1,092,015 1,200,311 1,385,267 950,216 1,096,347 1,028,284
lntergovermental 4,383,7ll. 5,130,811 3,992,507 5,618,423 5,075,515 5,710,223 6,135,863 5,792,744 6,923,107 6,462,142
Charges for services 1,353,5!Kl 1,361,318 1,4n,4so 1,545,748 2,381,260 1,981,477 1,966,285 1,968,828 1,781,384 1,104,495
Fines and forfeitures 291,193 284,384 332,579 4C6,187 361,278 365,335 347,871 399,053 631,064 495,469
Use of money and property 924,558 727,794 435,735 626,801 1,377,813 1,794,913 1,654,677 1,024,633 610,529 562,189
Grant and loan Repayment (Low Income) 73,228 134,954 95,835 139,541 135,026 55,873 103,493 87,326 23,590 49 ,195
others 268,831 249,720 328,247 222,882 265,039 277,738 288,075 306,020 349,851 415,145
Total revenues 12,117,344 13,248,621 12,055,358 14,028,684 15,496,935 16,559,729 17,298,941 16,042,973 16,057,498 16,420,245
Expenditures
Current:
General Government 1,377,031 1,529,111 1,679,001 1,888,078 1,727,929 1,759,354 1,879,166 2,012,604 2,263,B20 2,492,012
Community development 1,006,739 1,240,037 1,597,743 1,196,840 1,277,887 1,128,219 1,208,947 1,7a3,161 1,323,870 1,231,126
Public Safety 3,023,195 . 3,183,162 3,209,933 3,296,099 3,450,236 3,679,592 4,147,359 4,358,517 4,285,919 4,353,874
Public works 3,005,663 4,858,252 4,026,589 3,768,556 2,964,9!Xi 3,846,473 5,373,030 3,790,966 2,376,038 1,665,506
Community Services 1,176,594 1,490,394 1,504,587 1,593,200 1,178,899 1,370,103 2,190,855 2,517,786 2,246,777 2,733,160
Capital outlay: 228,138 187,123 129,654 l!Kl,071 634,647 756,406 250,600 233,868 2,106,266 1,132,410
Debt services
Principal retirement 28S,IXXJ 90,1XXJ 95,000 100,000 3,705,000 240,000 280,000 285,000 295,000 305,000
Interest and fiscal charges 426,983 424,961 411,485 473,667 505,843 504,814 490,352 471,281 452,423 433,050
Bond Issuance Costs 320,500
Pass-Through payment -12,197 51,612 40,046 36,333
ERAF Payment ----330,160 67,974
Total expenditures ~529,343 13,003,040 12,653,992 12.506,511 15,765,847 13,284,961 15,832,506 15,429,795 15,720,319 14,450,445
Elccess (defic:ien<.y) of revenues over
(under) expenditures 1,588,001 245,581 (598,634) 1,522,173 (268,912} 3,274,768 1,466,435 613,178 337,179 1,969,800
86
Other finandng sources I uses):
Transfers in
Transfer out
Issuance of Refunding Revenue Bonds
Bond Discount
Advances from City
Total otherfinandng sources [uses)
Net change in fund balance
Fund balances at beginning of year:
Fund balance (deficit) at end of year:
City of Temple City
Changes in Fund Balances of Governmental Funds -Last Nine Fiscal Years (Continued)
2,084,834 4,301,288 2,759,829 7,434,338 10,525,244 1,952,033 3,002,181 2,709,757 2,881,170 1,740,640
[2,316,895) 14,492,162) (2,848,546) (7,624,247) ( 10,800, 611) (2,158, 736) 13,208,437) ( 2,933,196) (2,881,170) (1,740,640)
8,000,000
-(67,320}
166,683
j65,378) (190,874) (BB,nn (189,!m} 7,757,313 ~~.703) (206,256) (223,439)
1,522,623 54,707 (687,351) 1,332,264 7,488,401 3,068,065 1,260,179 389,739 337,179 1,969,800
23,515,398 20,901,676 20,956,383 20,269,032 21,601,296 29,089,697 32,157,762 33,417,941 33,807,680 34,144,859
~.021 $20,956,3&3 $20,269,032 $21,601,296 $29,089,697 $32,157,762 $33,417,941 $33,807,680 $34,144,859 $36,114,659
Note: This schedule reports using the modified accrual basis of accounting.
Source: City of Temple City Basic Financial Statements
87
CATEGORY 2002 200)
Residontial 1.836.493,320 1,75<1,775.301
Commen:ial 151,422,856 183,524,700
Industrial 21.728.690 2~.1104.446
GO\ol. Ownod 2.440,125
lnslllutional 13,931,800 10,526.:121
krigaltd
Miscellaneous 117,883 120,033
Recreal~ 2,451.539 2,500,587
Vacant 2.002.741 2,462,782
SBE Nonunilary 758.937 75<1,246
Closs Rafenmc:e 6,298,293 8 ,784,493
l.nseclftd 26,767.676 26,89e,729
Exempl (5,067,765 (7.674,5<10]
TOiell 1,864,413.460 1,995,229,618
ToUII Oin!Cl Ra1e 0,09546 0.07527 --
Note: Exllnlpt \Slues are nal included In tolalo.
Soun::e : L.A. County Assessor 2001/02 • 2011Y11 Combined Tax Roll
City of Temple City
Assessed Value of Taxable Property-Last Nine Fiscal Years
2004 2005 2008 2007 2001 2009 2010 2011
1.929.063.334 2.098.900,308 2.324.937,393 2,561,579,905 2.771.~26.288 2,9'38,780,576 2.967,&49.759 3,061.M3, 102
187,372,370 172.013.034 18-4,8311,402 202.110,656 215.663, 103 224,186,414 233,159,971 235,240,&42.
25.2.2.3,938 26,941,655 28,983,752 30,663,567 34,880.561 34,717,363 3a,131,023 38.968.701
14,283,948 9,876,585 9,788,833 10,930,100 13.537,061 17,074,075 17,328.942 17,129.301
450 .000 458,999 468.178 477,5o41 487 .091 496,832 495,652
122,429 80.787 467,44-4 476,791 53,351 586.4 17 56.~ 55,370
2,630,793 2,1179,1108 2,349.153 292,895 2.376.252 3,302,989 3 ,24e.693 2,150,752
6,1 41,097 7,855,5&4 12,008,853 3,471,329 15.1148,158 18,184,780 18,715,213 18,387,1!02
771,483 784,320 752,690 724,004 591 ,381 382,8111 382,8111 252,011
8,960,699 8,576,443 7,989,250 8 ,798,674 7 ,381 ,578 7,848,698 7,724.752 7,959,915
27,731,951 24,610,709 24,368,140 24,9611,9156 26,391.071 27,096,629 26,963.336 29 ,917,083
(5.665,659) (5 ,665,659) (5.661,444 (5,661,444) {5,495,198 (5,856.015) (5,735,744 (5,735.744)
2 .182,302.042 2,352,749,291 2,598.941,909 2,844,505,965 3,089,728,323 3,270,425,923 3,312.837,916 3,410,110,131
0.09576 0 0935o4 0.0941 0.08978 0 .0925o4 0.09188'--0 .09197 0_.09202
88
City of Temple City
Direct and Overlapping Government Property Tax Rates -Last Nine Fiscal Years
I Agency 3l02 2003 2004 2005 2006 20/J1 2008 2009 2010 211111
Basic Lavy [1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.1ml0 1.00000 1.00000 1.00000
An:atia Ugtti~ 0.00493 0.00738 0.00397 O.!XJ4.47 0.00230 O.OO!ll 0 00326 O,!XJ4.45 0.00472 O.tmxl
An:atia Urded 0.03100 O.(I\129 0 03004 O.O'BJ! 0.02746 0.02831 0.~ 0.07911 0.07561 0.07456
CouVy Del81fun Faciilies 1~7 Debt 0.00113 0001(Il 00Cil99 O.lllm! O.OOliO O.!Xml O.tXrol O.OOilXl O.!XXnl 0.00000
EJ Mtllle City Scilld ~sctricl 0.05100 0 00592 OD!i072 0.07W 0.00!)7 0.~ ocm;a 0.00045 0.11007 0.12388
El Ma\le Urim Hgll Scl'od O.oo:IOO 0 oco:xJ 0.(Il573 0.03928 0.05425 0.05847 O.Cll820 0.05160 0.00054 o.osm
LA Commlrity COiege llslrict 0.01600 0.01460 0.019&3 0.01810 0.01<129 0.02146 0(0179 O.trl212 0.02311 0.04031
LA Camly Fkxxl Qnld 0.00107 O.lmlll 0.00>46 0.00025 O.lml5 O!Xmi 0 CXXXXl O.!Xml a.oom O.!XXXXl
Metropcl11an WiJ.~ llstOCt 0.00770 00)170 00)110 0.00500 0.00520 000470 0.()()45() 0.00430 0.004ll 0.00370
Pasaders cannunty Cdlege llstnct o.o:xm 0.00000 OOCBB1 O.OOB7ll 0.00ol10 O.o:ml 0.01972 0.01742 0.02300 0.01986
Rosemead SCim Dslrict O.OBBfll 0 00540 0.04517 0.07095 0.07515 0.05420 O(Hl83 O.CBB75 0.1135B 0.10743
san Gatriel Uri led O.OOXD O.aiBOO 0.05224 0.05729 0.115284 0.04930 005741 0.00294 0 10070 0.10100
TemPle City Unified 0.05445 004842 0.04819 0.04778 0.1)4.465 0.049n 0.044H 0.04£61 004910 0.04!ril
lrotar Direct & Overlapping 121 Ta~ Rates 1.25687 1.23965 1.3002l! 1.35517 1.36165 1.35803 1.41039 t.4m4 1.60973 1.605891
City's Share ol1% Lavy Per Prop 13 (3) O.tm71l 0.!11370 0.09370 0.09370 0.00370 0.00370 o.cmro 0.09370 0.09310 0.00370
Gene11l Obllgadon Dabt Rata
Radevalopme~ RaiB !•I 1.00!m 1.00!!l1 1.00755 1.~7 1.10014 1.00541 1.~ uooo 1.004]) 1.00370
Total Direct Rate [S) 0.00546 0.07527 0.09575 0.~ 0 00410 0.08976 0.09254 0.00188 0.09197 0.00202
[1) rn 1978, Cslibria \Qie!S passed PrqlQSitbl13 'Afich set tlwl ~y tax lilte 111 a 1.00'l. bed IITIOU1l llis t.OO'l. is 6IBed by alllaxDJ,j agEI1'ies brv.hi:h llle slmjec\ prllpl!!y resdes
~ttin. In llld~ to lhe 1.00% fixed iiTiarl, IJOPE!Ir C1MlE!JS ae r.lagEd taxas as a percenlage ri assi!SSI!d JXuperly ~IES br the pay1111Ef1l ol any "llB" iljllltlV<II bcrds.
(2) ~rates ae time ri local ard COlll1y ~enls lhal awl)' to IJllllE!IY l'NII1eiS -Mthm llle City. Not a!~ rates apply to all city IJllllE!IY CMtm.
~'\1 Cil)"s Shared 1% l.eYt is based on llle Oly's share of rile Q!!llr.!l fLnd tax rate !Ilea 'M1111he IIIIJ!SI oollaxa~a ~IE 'Mtlin lhe city. ERAF gBflllii lnl lax shills may rot be 1rd\lled
· llle W r.!U) ~res.
~: · i·:ll-\ rata is based on 1M lirgest RDA tax m1a na (iRA) ard llld!XIes ll'lly r.iejs) m irlle!Jiemess adopled 1M ro 1989 Jill' CaUb'ria Slae s~a~Ue. R[)l. dreclald ~~~e~
raes as appied orly to lhe incrernetllal prq~erty WilliES
(5) TOial lliecl Rate IS the Wl!ii#lted ;r,eage ri all inhlilallirect rares a~ed by l!'e ~eft~ lhe s\alisli:al sediOO illkxmaticr\
Scuce: LA Colllty As.sessor2001iQ2-2010111 TaJC Rate Table
89
Fiscal
year Licenses and
ended Taxes Permits
2002 3,201,626 930,184
2003 3,434,867 1,163,070
2004 3,517,904 1,225,266
2005 3,615,329 1,144.414
2006 3,970,043 1,092,015
2007 4,359,660 1,200,311
2008 4,578,801 1,385,267
2009 4,542,514 950,216
2010 3,830,602 1,096,347
2011 4 ,451,470 1,028,284
City of Temple City
General Governmental Revenues-Last Nine Fiscal Years
Charges ror Fines and Investment Rental Other Total
Intergovernmental Services Fotrelwres Income Income Revenues Taxes
2,068,378 475,139 140,554 672,122 38,019 210,434 7,736,456
2,070,995 434,904 151,435 5-13,541 30,842 248,720 8,078,374
1,684,796 466,752 189,510 312,025 31,462 327,247 7,754,962
2,923,061 529,768 271,007 382,601 32,005 220,834 9,119,019
2,721,891 585,885 256,879 897,594 33,698 264,039 9,822,044
3,068,372 621,383 254,024 1,167,407 37,413 276,738 10,985,308
3,482,229 674,154 242,337 1,034.417 90,108 287,075 11,774,388
3,051,888 662,360 287,575 694,444 80,794 305,020 10,574,811
3,549,571 542,976 534,287 442,363 65,928 348,851 10,410,925
3,229,851 631,355 423,041 409,097 57,442 414,145 10,644,685
Source: City of Temple City Basic Financial Stalements
90
RANKING OWNER
1 Calac ln..estment
2 TCD Ente1prises, Inc.
{Pending Appeals On Parcels)
3 Gradiazio lnwslment Company
(Pending Appeals On Parcels)
4 Santa Anita Conwlescent Hospital and Residence
5 Ralph's Grocery Company
6 James J and Sue Femino Trust
7 General Board of lhe Church of lhe Nogarine
8 Barchester Temple City
9 Christian Church Pacific Southwest Region
10 lou Xiaochyn and Chang Peiwen
Top Ten Total
City Total ---
City of Temple City
Principal Property Taxpayers-Current Fiscal Year and Nine Fiscal Years Ago
SECURED UNSECURED COMBINED PRIMARY USE
%of %of %of AND AGENCY
Parcels Value NetAV Parcels Value NetAV Value NetAV
2 20,466,231 0.61% 20,466,231 0.60% Commercial
Rosemead Boulewrd RDA i
1 13,094,990 0.39% 13,094,990 0.38% Vacant
Rosemead Boulewrd RDA
4 10,313,027 0.31% 10,313,027 0.30% Commercial
Rosemead Boulevard RDA
2 6,727.472 0.20% 2 1,036,065 3.46% 7,763,537 0.23% Institutional
Tax District #1
1 6,115,095 0.18% 6,115,095 0.18% Commercial
Tax District #1
2 5,508,894 0.16% 5,508,894 0.16% Commercial
Rosemead Boulewrd RDA
6 5,101,580 0.15% 5,101,580 0.15% Residential
Tax Distnct #1
2 4,982,081 0.15% 4,982,081 0.15% Commercial
Rosemead Boulewrd RDA
1 4,935,478 0.15% 4,935,478 0.14% Institutional
Tax District #1
5 4,609,690 0.14% 4,609,690 0.14% Residential
Tax District #1 I
26 81,854,538 242% 2 1,036,065 3.46% 82,890,603 2.43%
3,380,193,048 29,917,083 3,410,110,131
Source· L.A. County Assessor 2010111 Combined Tax Rolls and the SBE Non Unitary Tax Roll
91
City of Temple City
Top 25 Sales Tax Producers -Current Fiscal Year and Nine Fiscal Years Ago
Business Name
99 Cents Only
American Gas
Apple bees
AT & T Mobility
Cheveron
CVS Pharmacy
Hat
Hometown Buffet
In N Out Burgers
K Mart
MeDon aids
Modern Lighting
Office Depot
Pep Boys
Peters Mobil Service
Ralphs
Rite Aid
Seafood Village
Star Maintenance Supply
Super A Foods
Super Pets
Temple City Powers ports
Temple City Shell
TJ Maxx
Valu Mart
Business Category
Variety Stores
Service Stations
Restaurants Liquor
Electronics/Appliance Stores
Service Stations
Drug Stores
Restaurants No Alcohol
Restaurants No Alcohol
Restaurants No Alcohol
Discount Department Stores
Restaurants No Alcohol
Plumbing/Electronics Supplies
Office Supplies/Furniture
Automotive/Supply Stores
Service Stations
Grocery Stores Liquor
Drug Stores
Restaurants Beer and Wine
Specialty Stores
Grocery Stores Liquor
Specialty Stores
Boats/Motorcycles
Service Stations
Family Apparel
Grocery Stores Liquor
Note: Firms listed alphabetically. Period April 2010 Thru March 2011
Source: Hinderliter, de Llamas & Associates, State Board of Equalization
92
City of Temple City
Direct and Ov erla ppin g Debt
Percent
Gross bonded applicable
clebt balance to City
Direct debt
270.01 Re~ndlng Re-..mua Bonds
Total Direct Debt
Overlapping debt
337.05 Metrolltan Water Oistnct (1)
473.51 El Monte City SO OS 1999 SerA
473.52 El Monte City SO City OS 1999 SerB
473.53 El Monte Olsl OS 1999 Ser C
473.54 El Monte School Oi~tnct 20().4 RefUnding Bonds
473.55 El Monte School Oiatnct 1999 Series 0
473.56 El Monte City SO OS 2005 Ref Bonds
473.57 El Monte City SO OS 2004 Series B
473.59 El Monte City SO OS 2004 Series 0(2009)
473.60 El Monte School Olstr1ct OS 20011 Series A
473.61 El Monte School Diet 2008 SB!Ies A·1
629.50 Rosemeacl School Oiatrlet OS 2000 Sarles A
629.51 Rosemead School District OS 2000 Series B
629.52 Rosemaad School OS 2000 Senese
629.53 Rosemaacl School OS 2000 Series 0
629.54 Rosemead School OS 20011 Series A
745.51 El Monte Union HS Olst 2002 Series A
745.52 El Monte Union HS Olst Series B
745.53 El Monte Union HS Olst 2006 Refund Bonds
745.54 El Monte Un HI OS 2002 Sere
745.55 El Monte Union High OS 2008 SerA
805.50 LA CCO OS 2001 Ser·A
805.52 LA ceo os 2003 Series B
805.55 LA. CCO OS 2003 Taxable Series 2004B
805.56 LA. CCO OS 2001 Taxable Series 2004A
805.57 lACC OS Refunding 2001 Series 2005A
805.58 LA ceo os 2001, 2008 Series e
805.59 LA ceo os 2001. 2006 Series c
805.60 LACC OS 2001, 20011 Ser E·1
605.61 LACC OS 2001. 2008 Taxable Ser E ·2
805.62 lACC OS 2003. 2008 Sar F-1
805.63 lACC OS 2003, 2008 Taxable Ser F-2
605.6<4 lACC OS 2008, 2009 Taxsble SerA
605.65 lACC DS 2008, 2009 Taxable SerB
805.86 lACC Debt 2008, 2010 Tax Series D
805.67 lACC Oebl2010 Tax SerE (BABS)
805.68 LACC OS 2008, 2010 Series C
812.50 Pa&sdena Area CCO OS 2002 S·A
812.51 Pasadena ceo os 2006 Sene& B
812.52 Pasadena CCO OS 2006 Refunding Bond Senes C
812 53 Pasadena Ceo OS 2002, 2006 Sar 0
812.54 Pasadena c eo 2002. 2009 SB!Ies E (BABS)
817.51 Arcaclla Unofied OS 1993 Ser1es A
817.53 Arcadia Unlfted OS 1993 Senas C
817.54 Arcadia Unified OS Ref. Bonds 1993 2005 Senes A
617.55 Arcadia Unf OS 2006 SarA
947.51 Temple City Unlfted OS 1998 Ser1es A
947.52 Temple City USO OS 1998 Ser1es B
947 53 Temple Coly USC OS 2005 Refunding Bond
Total cro.e~applng debt
Total direct and ow~applng debt
201 0·2011 Assessed Valuation·
Debt to Aasessed Valuation Ratios
Direct debt
Ol.er1applng debt
Total debt
6,900,000
107,259,876
1,595,000
<415,000
1,260,000
5,845,000
14,660.000
18,994,366
14,610,532
9,360,000
5,998,159
18,540,000
6,410,000
8,930,000
6 ,655,000
4,845,000
8,865,000
2,870,000
4,555,000
36,572,828
29,140,000
53,625,511
10,590,000
71,760,000
17,935,000
7<4.760,000
431,075,000
382,830,000
292,480,000
276,500,000
2,420,000
3<44,915,000
6,480,000
350,000,000
75,000,000
175,000,000
900,000,000
125,000,000
1.925,000
48,955,000
12,302,327
26,705,000
25,295,000
6,049,353
1,569,596
3,670,000
159.865,423
3.008,2<49
5,031,501
10,625,000
021%
132%
1.53%
(1) lhls lund Is a ))OitiOn of a larger agency . and i6 responsible fQr debt in areas outsode the Coty.
(2) Debt figures lnckJde g15nenll obligatiOn d ebt whiCh Is being repaid through property taxes.
It excludes re..anue, mortgage re..enua, lntarlm nnenclng obligations, non·bonded capital
lease obligations, and certlftcates of participation.
100.000
0.390
10.154
10 154
10.154
10.154
10.154
10.154
10.154
10.154
10.1S4
10.1S4
2. 7011
2 .7011
2 .7011
2 .7011
2.708
5 .901
5.901
5.901
5.901
5.901
0.019
0.019
0.019
0.019
0.019
0.019
0.019
0.019
0.019
0.019
0.019
0.019
0.019
0 .019
0.019
0 .019
5 .555
5.555
5 555
5.555
5.555
3.093
3,093
3 093
3.093
70.791
70.791
70.791
Source: HdL Corun & Cone, Los Angele• County Assassor eombonad 2010111 Lien Dale Tax Rolls
93
Net bonded
dobt
6,900,000
6,900,000
418,761
161,955
<42,139
127,939
593,498
1,486,563
1,928,671
1,483,S40
950,406
609,048
1,882,535
173,612
2<41,885
180,2<47
131,224
2<40,104
169,386
268,802
2,158,252
1,719,823
3, 16<4,573
1,975
13,3<49
3,336
13,907
80,191
71,216
54.409
51,436
450
54,163
1,205
65,109
13,952
32,558
167,443
23,256
106,925
2,719,236
683,340
1,483,346
1,405,027
187,134
48,555
113,530
4,939,171
2,129,576
3,561,861
7,521,586
43,691,94<4
50,591,944
City of Temple City
Demographic and Economic Statistics-Last Nine Fiscal Years
Personal Por Capita %of Pop 25+ %of Pop 25+
Cal1ndar Income Pen;onal Unemployment with with
Year Pe>pulation (In Thousands) Income Ralll Median Ago High School Degree Bachelor's O.gree
2001 33,773 $689,401 $20,413 3.6%
2002 34,296 $702,133 $20,473 4.3%
2003 34,629 $722,827 $20,873 4.4%
2004 35,202 ~784, 170 $21 .708 4.1%
2005 35.396 $796,872 $22,513 3.4%
2006 35,336 $837,785 $23,709 3.0%
2007 35.360 $866,460 $24 ,504 3.2%
2008 35,423 $874 ,513 $24 .688 4 .11%
2009 35.6 15 $858 ,744 $24,11 2 7.5% 40.5 87.1% 32..4%
2010 35.892 $1 ,000,992 $27,889 8.2% 40.8 86.3% 32.2%
Noles and Data Sources:
Populalion: Cal1fomie St ste Department ol Finance.
Unemployment Oala: Cahfomia Employment De.elopmenl O.panmenl
2000.2009 Income, Age, and Educelion Data: ESRI-Demographic EatimatM ae based on the last aiBilable Census. Projections 818 del.eloped by incosporting
all of the prior cern~ us data rele83e to dale. OemogrBphle De\a Is totalled from Census Block Groups thai ""'~op I he Ci ty's boundanes .
2010 • Income, Age, Education Data · US Census Boze&~, mosl recenl Amoncan Community Sur.ey.
94
Calendar New New
year e nded Residential Commercial Total
2002 11,139,289 802,720 11 ,942,009
2003 24,402.465 522,500 24,924,965
2004 13,648,309 1,046,700 14,695,009
2005 22,514,787 1,916,300 24 ,431 ,087
2006 21,957,999 1 ,980,100 23 ,938,099
2007 25,630,380 3,240,390 28,870,770
2008 20,980,153 1,340,500 22,320,653
2009 19,127,998 3,892,187 23,020,185
2010 20,200,934 2 ,156,535 22,357,469
2011 23,754,355 1 '175,540 24,929,895
:· .. ;.:·;;,~ City of Temple City Community Development Department
95
City of Temple City
Construction Activity
New
value of
Demolitions Constru c t ion
JIVA JIVA
JIVA JIVA
N/A N/A
238 ,100 24 ,192,987
258,150 23,679,959
209,560 28 ,661,210
1 23,390 23,537,763
99,000 22 ,92 1 ,185.
162,000 22,195,469
139,048 24,790,847
City of Temple City
Full-Time Equivalent City Employees by Function-Last Nine Fiscal Years
Function 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
General Goo,emment
Full lime 10.86 10.86 10.86 10.86 8.85 7.85 7.80 7.80 7.80 7.80
Part lime 1.38 0.72 1.03 0.79 0.83 0.86 0.64 0.61 0.65 0.85
12.24 11.58 11.89 11.65 9.68 8.71 8.44 8.41 8.45 8.65
Community De\elopmenl
Full lime 6.00 6.00 8.00 8.00 7.10 8.10 7.15 7.15 7.15 6 10
Part lime 0.00 1.14 1.20 0.00 0.00 0.01 0.44 0.16 0.26 0.06
6.00 7.14 9.20 8.00 7.10 8.11 7.59 7.31 7.41 6.16
Parks & Recreation
Full lime 14.19 15.19 15.19 15.09 14.70 12.70 11.70 11.70 11.70 12.15
Part lime 10.63 10.58 10.69 11.18 11.78 16.68 19.56 21.88 21.46 18.96
24.82 25.77 25.88 26.27 26.48 29.38 31.26 33.5B 33.16 31.11
Public Safety
Full lime 5.70 5.70 ~.70 5.60 4.40 4.40 5.40 5.40 5.40 7.05
Part lime 1.03 0.94 0.36 0.00 0.00 0.00 0.00 0.00 1.43 2.33
6.73 6.64 6.08 5.60 4.40 4.40 5.40 5.40 6.83 9.38
Public WOIXs
Full lime 3.25 3.25 3.25 3.45 2.95 2.95 3.95 3.95 3.95 2.90
Part lime 0.28 0.36 0.16 0.07 0.00 0.03 0.04 0.00 0.34 0.00
3.53 3.61 3.41 3.52 2.95 2.98 3.99 3.95 4.29 2.90
Full lime Total 40.00 41.00 43.00 43.00 38.00 36.00 36.00 36.00 36.00 36.00
Part lime Total (1) 13.32 13.74 13.46 12.04 12.81 17.58 20.68 22.65 24.14 22.20
TOTAL 53.32 54.7-4 56.46 55.04 50.61 53.5B 56.68 58.65 60.1-4 58.20
Note: (1) 2,080 Houl5 of Part lime equals to 1 Full lime Equi~elent
Source: City ofTemple City Adminislratlle Sen.ices Departmenl
96
City of Temple City
Operating Indicators by Function-Last Nine Fiscal Years
I 2002---2oo3 2oo4--2o-os 2oos u2oo7 2ooa 2oos 201 o 2011 I
Public Safety:
Arrests N/A 441 367 389 438 513 559 411 514 949
Parking Citations NIA 112 4,102 8,190 6,385 7,089 6,947 6,879 12,681 9,024
Public Works:
Sewers new connections N/A 118 126 59 83 78 55 30 36 25
Parks & Recreation:
Number of rereation classes 252 317 400 352 401 398 341 363 330 390
Number of facility rentals N/A N/A N/A NIA N/A 904 1,050 1,076 1,179 1,083
Source: City of Temple City Community Development Department
City of Temple City Parks & Recreation Department
Los Angeles County Sheriff Department
97
Attachment 8
Letter of Comments to Management
City of Temple City
Year ended June 301 2011
To the Members of the City Council
City of Temple City
Los Angeles, California
In planning and performing our audit of the financial statements of the City of Temple
City (the City) as of and for the year ended June 30, 2011 , in accordance with auditing
standards generally accepted in the United States of America , we considered the City's
internal control over financial reporting (internal control) as a basis for designing our
auditing procedures for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of
City's internal control. Accordingly, we do not express an opinion on the effectiveness of
City's internal control.
Our consideration of internal control was ·for the limited purpose described in the
preceding paragraph and would not necessarily identify all deficiencies in internal control
that might be deficiencies, significant deficiencies or material weaknesses .
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 misstatements on a timely basis . A material weakness is a
deficiency, or combination of deficiencies in internal control, that there is a reasonable
possibility that a material misstatement of the City's financial statements will not be
prevented or detected and corrected on a timely basis. We did not identify any material
weakness during the course of our audit.
However, during our audit, we became aware of certain matters that we believe
represent opportunity for the City to further strengthen its internal controls and
accounting practices . These matters do not represent significant deficiencies, material
weakness in internal control, or material instances of noncompliance .
This communication is intended to give our observations and suggestions about
operational or administrative efficiencies, and other items that we perceive of benefit to
the City that go beyond internal control related matters and are communicated only as
information for the benefit of management. It includes items noted during the course of
our audits, which in our judgment, are not considered significant deficiencies but are
presented for management's consideration .
2
The following summarize our comments and suggestions regarding those matters.
1. Government Procurement
Comments:
Procurement is a critical area in the operation of a government agency.
Procurement activities are generally the subject of public scrutiny hence, most
agencies ensure that its procurement objectives, policies and procedures:
a) Are clearly communicated to stakeholders
b) Address accountability and transparency
c) Include controls to ensure compliance with the legal requirements
During our walk-through and testing of the City of Temple City's procurement
process and transactions, we noted exceptions in the City's implementation of the
policies.
Recommendation:
We recommend that the City implement a centralized procurement and purchasing
system that would allow the:
1) Receipt and monitoring of all procurement requests
2) Provision of guidance and interpretation of the procurement policies to different
departments
3) Initiation of the purchase transaction upon approval
4) Review and reconciliation of the purchasing documents to the invoices from the
vendors
5) Vendor registration process
6) Contract processing
2. Review of the Existing Internal Controls over Cash Receipts and Payroll
Comments:
During our evaluation of the existing internal controls on cash receipts and payroll
processing, we noted the absence of proper segregation of duties and supervisory
controls over transactions, such as:
• Daily review of cash deposit transactions
• Equipment intended for use in the receipt and protection of cash and
valuable items are not fully utilized
• Log-in information on the cash receipt system is shared among users
• Only one person is authorized to process payroll and modify employee and
salary information in the payroll system
3
Recommendation:
We recommend that the new Finance Services Director review these areas and
determine, based on the benefits to be derived, the most economical means and the
most effective process of implementing new or improving controls over cash receipts
and payroll process.
* * * * *
This communication is intended solely for the information and use of the management
and members of the City Council of the City of Temple City and others within the
entity, and is not intended to be and should not be used by anyone other than these
specified parties.
Los Angeles, California
February 1, 2012
4
Attachment C
Report of Independent Auditors 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 Members of City Council
City of Temple City
We have audited the financial statements of the governmental activities, each major
fund, and the aggregate remaining fund information of the City of Temple City,
California, as of and for the year ended June 30 , 2011, and have issued our report
thereon dated February 1, 2012. 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.
Internal Control Over Financial Reporting
Management of the City of Temple City is responsible for establishing and maintaining
effective internal control over financial reporting . In planning and performing our audit,
we considered the City of Temple City's internal control over financial reporting as a
basis for designing our auditing procedures 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 of Temple City's internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the City of Temple
City's internal control over financial reporting .
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and was not designed to identify all deficiencies in
internal control over financial reporting that might be significant deficiencies, or material
weaknesses and therefore, there can be no assurance that all deficiencies, significant
deficiencies, or material weaknesses have been identified.
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 deficiency, or a combination of deficiencies, in internal control such that
there is a reasonable possibility that a material misstatement of the entity's financial
statements will not be prevented, or detected and corrected on a timely basis . We
noted no matters that we consider to be material weaknesses in internal control. We
consider the matter described below as item FS2011-01 to be a significant deficiency in
internal accounting control.
FS2011-01: The City's cashiering and revenue accounting processes did not
include the review of cash collections, deposits and accounting entries by a
separate party who is independent from the cashiering function and has no cash
handling responsibilities. Specifically, during fiscal year 2011, the Accountant
was responsible for the preparation of the Daily Cash Report. However, there
was no review by a supervisor or manager to ensure that all cash receipts were
deposited daily and were properly recorded in the City's accounting records . The
lack of this review control procedure can be attributed to the absence of the
Administrative Services Director in 2011. To minimize the risk of loss and to
improve internal control over cash receipts, management should assign the
supervisory control to another manager or to the newly hired Administrative
Services Director.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Temple City's
financial statements are free of 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 an instance of noncompliance,
described as Finding FS2011-01 above that is required to be reported under
Government Auditing Standards.
We noted certain other matters that we reported to management of the City of Temple
City in a separate letter dated February 1, 2012 .
This report is intended solely for the information and use of the City Council,
management, federal and state awarding agencies, and pass-through entities and is not
intended to be, and should not be, used by anyone other than these specified parties.
Los Angeles, California
February 1, 2012
.... ~---. . ... ..
''" ·-41&A
~~VASQUEZ l'J]I & COMPANY LLP
(f '-'IIICO rua~ I( A((Qu.,.rANT~ "'""'0 •u)~'il ~) (O,~Ul fA'.h
An independenl member of lhe BDO Seidman Alliance
Members AICPA Division of Forms • Center for Pubhc Company Audit Forms • Registered with Public Company Accounhng Oversighl8oarc1
801 S Grand Avenue, SUite 400. Los Angeles CA 90017-4646 +{213) 629-9094 • Fax {213) 489 2995 •
Contact Mr Gilbert Vasquez. CPA • Dated. March 21. 2012
l-85cY
SEIDMAN
ALLIANCE
~
0,)
(')
::r
3
(t)
:J .........
0
" T h e A u d i t T e a m
" L e v e l s o f A s s u r a n c e
" S u m m a r y o f A u d i t R e s u l t s
" F i n a n c i a l S t a t e m e n t s
" F i n a n c i a l T r e n d s a n d A n a l y s i s
" S A S 1 1 4 C o m m u n i c a t i o n
V A S Q U E Z & C O M P A N Y L L P 2
Gilbert Vasquez
Lee Waddle
Peggy McBride
Federico Quinto
Aileen Hermosa
Scott Chung
Managing Partner
Engagement Partner
Concurring Partner
Quality Control Partner
Senior Manager
Senior Auditor
VASQUEZ & COMPANY l lP 3
;Government
lAuditing Standards
GAAS
Standards
Single Audit: OM B
Circular A-133
VASQUEZ & COMPANY LLP 4
" C i t y o f T e m p l e C i t y t e a m h a s b e e n v e r y c o o p e r a t i v e a n d h e l p f u l
t h r o u g h o u t t h e a u d i t p r o c e s s . V a s q u e z & C o m p a n y L L P
a p p r e c i a t e s t h e a t t i t u d e a n d p r o f e s s i o n a l i s m e x h i b i t e d b y t h e C i t y
o f T e m p l e C i t y t e a m m e m b e r s
V A S Q U E Z & C O M P A N Y L L P 5
D Unqualified "Clean" Opinion
>-Audit performed in accordance with generally accepted auditing
standards & government auditing standards
)o> The financial statements fairly present, in all material respects,
the City of Temple City's:
• Financial position
• Results of operations
• Changes in net assets
• Cash flows
VASQUEZ & COMPANY LLP 6
" M a t e r i a l w e a k n e s s a n d s i g n i f i c a n t d e f i c i e n c i e s - o n e i t e m
n o t e d
" N o n c o m p l i a n c e m a t e r i a l t o f i n a n c i a l s t a t e m e n t s - n o n e n o t e d
V A S Q U E Z & C O M P A N Y L L P 7
co
Q.
::l
>-~
ll.
~ u
od
N w
::J
0 en
<l: >
ASSETS
Cash and investments
Cash and investments with fiscal agent
Accounts receivable
Interest receivable
Due from government agencies
Prepaid items
Loans receivable
Capital assets:
Capital assets, not being depreciated
Capital assets, being depreciated,
net of accumulated depreciation
Accounts payable
Accrued payroll
Accrued interest
Due to other funds
Refundable deposits
Deferred revenue
OPEB liability
Long-term liabilities:
LIABILITIES
Portion due within one year:
Compensated absences
Net OPEB obligation
Refunding revenue bonds payable
Portion due beyond one year:
Compensated absences
Refunding revenue bonds payable
NET ASSETS
Invested in capital assets
Restricted
Unrestricted
$
Total assets
Total liabilities
Governmental
Activities
2011
38.494,009
627,225
243,020
33,330
1,122.907
1,310
1,652,985
15,118.475
13,012,882
70,306,143
1,388,921
142,581
102.456
118,133
137,140
125,600
24,987
924,972
315,000
224,879
6,280,000
9.784,669
28,131,357
14,736,865
17,653,253
Total net assets$ 60,521,475
VASQUEZ & COMPANY LLP 9
Governmental Activities
General government $
Community development
Public safety
Public ......urks
Community services
Interest on long-term debt
Total Governmental Activities $
Charges
for
Expenses Services
3,072,847 82,910
1,657,399 1,007,719
4,662,120 516,034
1,960,629 88,506
3,016,957 517,381
429,238
14,799,190 2 ,212,550
General revenues
Taxes:
Property taxes
Sales taxes
Program Revenues
Operating
Contributions
and Grants
44,773
273,917
136,935
4,065,287
83,035
4,603,947
Transient occupancy taxes
Franchise taxes
Other taxes
Investment income
State motor vehicle in lieu
State revenue -other
Other revenue
Total general revenues
Change in net assets before special item
Special item
Net asset -beginning
Net asset-ending
Change in net assets
Capital
Contributions
and Grants
-
Net
Governmental
Activities
(2,945, 164)
(375,763)
(4,009, 151)
2,193,164
(2,416 ,541)
{429,238~
(7,982,693)
3,259.485
1,614,726
34,221
542,523
99,701
409,097
3,229,851
8,844
285,880
9,484,328
1,501,635
1,786,167
3,287,802
57 ,233,673
$ 60 ,521,475
VASQUEZ & COMPANY LLP 10
Special CRA Non-Major
General Revenue Debt Governmental
Fund CDBG Service Funds Total
ASSETS
Cash and investments $ 23,200,828 --14,438,622 37,639,450
Cash and investments with fiscal agent --627,225 -627,225
Accounts receivable 243,020 ---243,020
Interest receivable 32,191 --1,139 33,330
Due from other funds 401,323 --121 '163 522,486
Due from other governments 494,537 16,820 214,067 397,483 11122,907
Prepaid items 1,310 ---1,310
Loans receivables 604,171 1,036,154 -12,660 1,652,985
Advances to other funds 3,892 ,715 ---3,892,715
Total assets $ 28,870,095 1,052,974 841,292 14,971,067 45,735,428
LIABILITIES
Accounts payable $ 922,936 80,988 -384,998 1,388,922
Accrued payroll 133,790 --8,791 142,581
Due to other funds -16,820 172,433 333,233 522,486
Due to other governments
Refundable deposits 137,140 ---137,140
Deferred revenue 2,362,511 1 ,036,154 -138,260 3,536,925
Advances from other funds --3,892 ,715 -3,892,715
Total liabilities 3,556,377 1 '133,962 4,065,148 865,282 9,620,769
FUND BALANCES
Nons pend able 1,771,165 ---1,771,165
Restricted - -627,225 14,109,640 14,736,865
Unassigned 23,542,553 {80,988~ {3,851,081) {3,855~ 19,606,629
Total fund balances (deficit) 25,313,718 (80,988} {3,223,856~ 14,105,785 36,114 ,659
Total liabilities and fund balances $ 28,870,095 1,052,974 841 ,292 14,971,067 45,735,428
VASQUEZ & COMPANY LLP 11
Special CRA Non-Major
General Revenue Debt Governmental
Fund CDBG Service Funds Total
Revenues
Taxes $ 4,451,470 -879,349 972,507 6,303,326
Licenses and permits 1,028,284 ---1,028,284
Intergovernmental 3,229,851 156,803 -3,075,488 6,462,142
Charges for services 631,355 --473,140 1,104,495
Fines 423,041 --72,428 495,469
Investment income 409,097 -29 95,621 504,747
Rental income 57,442 ---57,442
Low income grant and loan repayments -49,195 --49,195
Other 414,145 --1,000 415,145
Total revenues 10,644,685 205,998 879,378 4,690,184 16,420,245
Expenditures
Current:
General government 2,191,478 --300,534 2,492,012
Community development 1,088,463 142,663 --1,231,126
Public safety 4,352,010 --1,864 4,353,874
Public v..orks 410,636 --1,254,870 1,665,506
Community services 1,930,052 -28,531 774,577 2,733,160
Capital outlay ---1,132,410 1,132,410
Debt service:
Principal --244,000 61,000 305,000
Interest --369,958 63,092 433,050
Pass-through payments --36,333 -36,333
SERAF payment to the State ---67,974 67,974
Total expenditures 9,972,639 142,663 678,822 3,656,321 14,450,445
Excess (deficiency) of revenues
over eXpenditures 672,046 63,335 200,556 1,033,863 1,969,800
Other financing sources (uses)
Transfers in 441,129 --1,299,511 1,740,640
Transfers out (499.B3 5 ) ( 144.32 3; -p,096,482} ~1 ,740,640~
Net other financing sources (uses) (58,706) (144,323) -203.029
Net change in fund balance 613,340 (80,988) 200,556 1,236,892 1,969,800
Fund balance, beginning of year 24,700,378 -!3.424,412} 12,868,893 34,144,859
Fund balance, end of year $ 25,313,718 (80,988} (3,223,856} 14,105,785 36,114,659
VASQUEZ & COMPANY LLP 12
Based on procedures completed as part of our audit thus far and subject to the completion of our remaining
procedures, including information to be provided by management, we would like to note the following:
Matter to be communicated
Auditor's responsibility under generally accepted
auditing standards
Significant accounting policies, including critical
accounting policies and alternative treatments within
generally accepted accounting principles, and the
auditor's judgments about the quality of the
accounting policies.
Management judgments and accounting estimates.
Audit adjustments
Auditor's response
Our responsibility is outlined in our engagement letter dated July 28, 2011.
Management has primary responsibility for the accounting principles used,
including their consistency, application, clarity and completeness.
We believe that the City's significant accounting policies are appropriate, and
that management has applied its policies consistently with prior periods in all
material respects.
Information audited by us have been generally verifiable, with management
being appropriately neutral on the accounting propriety.
Policies and their application, including alternative accounting treatments, which
we have discussed with management and which are further addressed in the
Audit Areas of Emphasis section of this report .
Estimates are formulated by management and affect the amounts of assets and
liabilities reported in the financial statements.
Management has consulted with independent advisors, legal counsel and its
auditor on relevant accounting matters .
We believe that management's estimates are reasonable. We have commented
further on the basis for our conclusions as to the reasonableness of significant
matters in the Audit Areas of Emphasis section of this report.
No material audit adjustments were noted during the course of our audit
procedures.
VASQUEZ & COMPANY LLP 13
Matter to be communicated Auditor's response
Disagreements with management There were no disagreements with management.
Consultation with other accountants Management has advised us that it has not relied on consultations with other
accounting firms regarding any significant accounting matters in 2011.
Significant issues discussed, or subject to No significant issues were discussed , or subject to correspondence, with
correspondence, with management prior to retention management prior to retention.
Significant difficulties encountered during the audit No difficulties were encountered while performing our audit procedures that
require the attention of the City Council.
Fraud and illegal acts No irregularities, fraud or illegal acts involving senior management, or that
would cause a material misstatement of the financial statements, came to our
attention as a result of our audit procedures.
Independence We confirm that we are independent of the City within the meaning of the
independence, integrity and objectivity rules, regulations, interpretations, and
rulings of the AICPA, the State of California Board of Accountancy, and the
State of California CPA Society state status, Government Auditing Standards,
and other regulatory agencies.
Other material communications Management will provide us with a signed copy of the management
representation letter prior to release of the reports.
---------------
VASQUEZ & COMPANY LLP 14
One of the most significant and valuable developments of the post Sarbanes-Oxley Act
environment has been the emergence of governance "Best Practices" proposals
designed to enhance and improve corporate responsibility and governance. While most
of these Best Practices proposals have been recommended for adoption by public
companies, their relevance as an aspirational goal for nonprofit corporations and non-
public companies is widely recognized. We have developed the following set of
guidelines to assist nonprofit corporations in responding to the current "corporate
responsibility" environment. In the final analysis, the goal of "Best Practices" is the
preservation and effective stewardship of the assets of the nonprofit organization. As
we perform our audit we will review your policies and procedures to determine if the
organization has implemented these practices .
./Strategic Plan ./ Code of Conduct ./ Whistle Blower
./Computer access ./Authorization
./ Compensation ./ Conflict of Interest Policy
./ Organizational chart ./ Hiring
./ Expense ./ Document Retention
Reimbursement
./Corporate/Board Governance
./Audit Committee Charter
./ Vacation/Personal Leave
./ Public Reporting
./ Mandatory Auditor Rotation
./ Segregation of
Duties
./ Mission, Values and Core Statement
VASQUEZ & COMPANY LLP 15
"Integrity in everything we do"
" C o n t i n u e w i t h t h e s a m e a u d i t t e a m
" M a i n t a i n h i g h q u a l i t y a u d i t i n g s t a n d a r d s
" I d e n t i f y a r e a s o f i m p r o v e m e n t
" P r o v i d e u p d a t e s , i f a n y , o n d e v e l o p m e n t s a f f e c t i n g t h e C i t y o f
T e m p l e C i t y
" C o m p l e t e a u d i t p r o c e s s i n a m o r e t i m e l y m a n n e r
V A S Q U E Z & C O M P A N Y l l P 1 6
('·
U)
z
0 -....
U) w
:::l
0
-· :::l
0 >-
~ z
<(
:I: ....
,.._ ....
11.
...J
...J
>-z c:
~
8
ad
N w ::>
0 en
~