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HomeMy Public PortalAbout7LAGENDA ITEM 7. L. FINANCIAL SERVICES DEPARTMENT MEMORANDUM DATE: April 5, 2011 TO: The Honorable City Council FROM: Jose E. Pulido, City Manage By: Monica Molina, Financi ervices Manager & Lee Ma, Accountant SUBJECT: CITY OF TEMPLE CITY BASIC FINANCIAL STATEMENTS FOR FISCAL YEAR (FY) 2009-10 RECOMMENDATION: It is recommended that the City Council receive and file City of Temple City Fiscal Year (FY) 2009-10 Basic Financial Statements and Single Audit Report. BACKGROUND: 1. On May 24, 2010, the auditors from Mayer Hoffman McCann P.C. met with City Manager Pulido and Financial Services Manager Molina to discuss the process of FY 2009-10 audit and to conduct preliminary review. 2. On September 7, 2010, Mayer Hoffman McCann P.C., conducted the audit in the City for two weeks. During that time, auditors reviewed financial transactions; spoke to key personel regarding internal controls; and reviewed payroll records for accuracy. 3. On January 19, 2011, the City was informed that the City's field auditor was no longer working for Mayer Hoffman McCann P.C., and the field manager would complete the audit. At that time, the City was also informed that additional documentation will be required and that various bank and attorney confirmations were not submitted, which were required prior to the completion of the audit reports. 4. On March 9, 2011, Mayer Hoffman McCann P.C., informed the City that all confirmations were received by the various banks and attorneys and that the financial reports would be finalized and distributed to the City by the end of the week. City Council April 5, 2011 Page 2 ANALYSIS: BASIC FINANCIAL STATEMENTS This report is the combined financial statements for the City of Temple City, and the Temple City Community Redevelopment Agency. It also contains supplementary information relating to the detail of all revenues and expenditures for the City. The report includes additional information such as a: Management's Discussion and Analysis; Government -Wide Financial Statements; and Notes to Basic Financial Statements. The Fund Financial Statements has been broken down into Major and Non - major Funds. The main facts that should be mentioned, which are reflected in this document, are listed below: 1. The City's original General Fund revenue budget was estimated at $10,106,250. At the end of the fiscal year, General Fund revenues received was 10,410,925. The total increase was due to mainly the following net changes: $364,398 decrease in taxes; $187,347 increase in license and permits; $557,071 increase in motor vehicle in lieu tax. 2. The City's General Fund operating expenditures were originally budgeted at $10,284,295. The General Fund expenditures at the end of FY 2009-10 was $9,790,629. The total decrease was due to mainly the following net changes: $353,930 decrease in general government; $195,776 increase in community development; $228,269 decrease in public safety; $49,972 decrease in public works; and $46,159 decrease in community services. 3. A total of $569,111 in special revenue funds were used for operating expenditures leaving the total operating General Fund expenditures of $9,211,518. 4. A total of $2,066,693 in Capital Improvement Projects were paid during FY 2009- 10, of which $1,104,627 was paid with General Funds. The majority of expenses include: construction of the Annex Building; and the Las Tunas Economic Development Improvement Project. 5. The total General Fund revenues over operating expenditures for FY 2009-10 was $1,189,407 of which $1,104,627 was used for Capital Improvement Projects. Leaving the end of the year with a General Fund surplus of $84,780. As of June 30, 2010, the ending General Fund balance was $24,700,378. 6. Since August 1989, the City of Temple City advanced the Temple City Community Redevelopment Agency funds that are still outstanding. As of June 30, 2010 the Community Redevelopment Agency owes the City $1,706,979 for principal and $2,366,247 for interest for a total of $4,073,226. City Council April 5, 2011 Page 3 SINGLE AUDIT REPORT As a recipient of Federal, State and County financial assistance, the City is also responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. Under the requirements of the Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations, the City met the criteria to have a single audit performed for fiscal year ended June 30, 2010. In FY 2009-10, the Single Audit reported a total of $1,116,955 in Federal funds which consisted of: American Recovery & Reinvestment Act of 2009 ($713,335); State and Community Highway Safety ($12,293); Community Development Block Grant ($349,299) funds; Justice Assistance Grant ($33,028); and Energy Efficiency and Conservation Block Grant ($9,000). These Federal funds were used to fund the grind and overlay project on Freer Street; traffic signal on Temple City Boulevard between Ellis and Gidley Lane; Handyworker Program; Rehabilitation Home Loan Program; Youth Scholarship Program; Lead -Base Abatement and the Asbestos Program; Green Rehabilition Program; and Law Enforcement activities. The funds were also used for the general administration costs of these programs. Mayer Hoffman McCann P.C. indicated that the financial statements fairly present the financial position of the City of Temple City and that the City's operations were in compliance with generally accepted accounting principles. SUPPLEMENTARY DATA Also included are the Independent Accountants' Report on Agreed -Upon Procedures Applied to Appropriations Limit Worksheets and the auditor report on the consideration of the City's internal control over financial reporting and tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of the auditor testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. There were no findings reported for Temple City during FY 2009-10. However, during the audit, the auditing firm became aware of a certain matter that they believe represents an opportunity for the City to enhance controls in the cash receipts area at off -site locations. FISCAL IMPACT: This agenda item has not fiscal impact on the FY 2009-10 City Budget. CONCLUSION: Staff is recommending the City Council recieve and file FY 2009-10 Basic Financial Statements and Single Audit Report for the City of Temple City. City Council April 5, 2011 Page 4 ATTACHMENTS: A. City of Temple City Basic Financial Statements and Supplementary Data B. City of Temple City Single Audit Report on Federal Awards i CITY OF TEMPLE CITY Temple City, California BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Year Ended June 30, 2010 MEIM g Cam. Mayer Hoffman McCann P.C. An Independent CPA Flrrn CITY OF TEMPLE CITY BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Year Ended June 30, 2010 TABLE OF CONTENTS Page FINANCIAL SECTION: INDEPENDENT AUDITORS' REPORT 1 MANAGEMENT'S DISCUSSION AND ANALYSIS (Required Supplementary Information) 3 BASIC FINANCIAL STATEMENTS: Government -wide Financial Statements: Statement of Net Assets 14 Statement of Activities 15 Fund Financial Statements: Governmental Funds: Balance Sheet 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 21 Statement of Revenues, Expenditures and Changes in Fund Balances 23 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Government Funds to the Statement of Activities 24 Proprietary Fund: Statement of Net Assets 28 Statement of Revenues, Expenses and Changes in Fund Net Assets 29 Statement of Cash Flows 30 Fiduciary Fund: Statement of Fiduciary Assets and Liabilities 32 Notes to Basic Financial Statements 33 CITY OF TEMPLE CITY BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) TABLE OF CONTENTS, (CONTINUED) Page REQUIRED SUPPLEMENTARY INFORMATION: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual: General Fund 64 Community Development Block Grant (CDBG) Special Revenue Fund 66 Note to Required Supplementary Information 67 SUPPLEMENTARY SCHEDULES: Nonmajor Governmental Funds: Combining Balance Sheet 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 77 Nonmajor Special Revenue Funds: Combining Balance Sheet 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 82 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual: Traffic Safety Fund 86 Citizens Option for Public Safety (COPS) Fund 87 Public Transportation — Prop A Fund 88 Public Transportation — Prop C Fund 89 Used Oil Fund 90 Traffic Safety Grant Fund 91 State Gas Tax Fund 92 Proposition 1B Fund 93 American Recovery and Reinvestment Act Fund 94 Justice Assistance Grant Fund 95 Bicycle and Pedestrian Fund 96 Air Quality Improvement District Fund 97 Measure R Fund 98 Sewer Reconstruction Fund 99 Energy Efficient and Conservation Block Grant Fund 100 Congestion Management Fund 101 Traffic Congestion Relief Fund 102 CITY OF TEMPLE CITY BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued) TABLE OF CONTENTS, (CONTINUED) Page FINANCIAL SECTION, (CONTINUED): SUPPLEMENTARY SCHEDULES, (CONTINUED): 1992/1996 Park Bond Fund 1996 Park Bond Fund State Recycling Fund Park Acquisition Fund Lighting and Landscape District Fund Low and Moderate Income Housing Fund Major Debt Service Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual: CRA Debt Service Fund Major and Nonmajor Capital Projects Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual: City -Wide Capital Improvements Major Capital Projects Fund CRA Capital Improvements Nonmajor Capital Projects Fund Nonmajor Permanent Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual: Camellia Trust Fund 103 104 105 106 107 108 109 110 111 112 Agency Fund: Statement of Changes in Fiduciary Assets and Liabilities 113 (This page intentionally left blank) MHM Mayer Hoffman McCann P.C. An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 fx www.mhm-pc.com Honorable Mayor and City Council City of Temple City, California INDEPENDENT AUDITORS" REPORT We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Temple City, California ("City"), as of and for the year ended June 30, 2010, 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. The prior year partial comparative information has been derived from the City's financial statements for the year ended June 30, 2009 and, in our report dated December 28, 2009, we expressed an unqualified opinion on those financial statements. 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 the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the City of Temple City, California, as of June 30, 2010, and the respective changes in financial position, and cash flows, where applicable, of the City for the year then ended in conformity with accounting principles generally accepted in the United States of America. The information identified in the accompanying table of contents as management's discussion and analysis and required supplementary information are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. -9- MHM Honorable Mayor and City Council City of Temple City, California Page Two 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 identified in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued our report dated March 11, 2011 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, 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 results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Irvine, California March 11, 2011 -2- MANAGEMENT'S DISCUSSION AND ANALYSIS 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, 2010. 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 $885,736 as a result of this year's operations. • The total revenue from all sources was $15,438,384. • The total cost of all City programs was $14,552,648. • The City's total debt increased by $670,783 during the current fiscal year. The key factors in this increase is the net of the addition of OPEB obligation ($899,187), the increase in the compensated absences liability ($66,596) and the decrease of the 2005 Refunding Revenue Bonds payment ($295,000). 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 basic financial statements are comprised of three components: 1) government -wide financial statements; 2) fund financial statements; and 3) notes to basic financial statements. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Temple City's finances, in a manner similar to a private -sector business. The government -wide financial .statements include not only the City, but also all legal entities for which the City is financially accountable. 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. -3 - 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, 2010. -4 - City of Temple City Condensed Statement of Net Assets Governmental Activities 2010 2009 Current and other assets Capital assets Total assets Current and other liabilities Long-term liabilities $40,574,768 $40,499,257 27, 542,462 26,109, 373 $68,117,230 $ 1,959,356 8,924,201 $66,608,630 $ 2,007,275 8,253,418 Total liabilities $ 10,883,557 $10,260,693 Net Assets Invested in capital assets $27,542,462 $26,109,373 Restricted 10,961,386 9,924,588 Unrestricted 18,729,825 20,313,976 Total net assets $57,233,673 $56,$47,937 The City's net assets increased by $ 885,736 during Fiscal Year (FY) 2009-10. This represents the degree to which ongoing revenues exceeded similar ongoing expenditures. -5 - City of Temple City Changes in Net Assets Governmental Activities 2010 2009 Revenues Program revenues Charges for services $ 2,828,076 $2,575,992 Operating Contributions and Grants 3,390,483 2,965,425 Capital Contributions and Grants 78,551 General revenues Taxes: Property taxes 2,780,452 3,764,946 Sales taxes 1,475,728 1,675,895 Transient occupancy taxes 34,844 41,536 Franchise taxes 533,542 581,526 Other taxes 127,573 91,886 Investment income 262,636 712,967 State motor vehicle in lieu 3,549,571 3,059,138 State revenue -other 6,975 8,203 Other 448,504 379,190 Total revenues $15,438,384 $15,935,255 Expenses General government $2,716,505 $2,410,692 Community development 1,480,064 1,620,525 Public safety 4,484,281 4,528,763 Public works 2,969,555 2,827,551 Community services 2,581,200 2,813,843 Interest on long-term debt 321,043 333,209 Total expenses $14,552,648 $14,534,583 Increase in Net Assets 885,736 1,400,672 Net Assets — Beginning of Year 56,347,937 54,947,265 Net Assets — End of Year $57.233,633 $56,347,937 -6 - Revenues - Governmental Activities 3% 2% ©Program revenues ■ General revenues Qlnvestmentincome O Vehide in lieu ■Other Expenses - Governmental Activities 2% ElGeneral government ■ Community development DPublic safety DPublic works ■ Community services olnterest on long-term debt The City of Temple City's total revenues are $95,438,384 while the total cost of all programs and services are $94,552,648. 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 -7 - program revenues earned by that activity. The table also shows the financial cost that was incurred by the City for each activity. Net Costs of Services (Governmental Activities) 2010 2009 Governmental Activities General government ($2,519,705) $(2,210,078) Community development (74,108) 23,927 Public safety (3,473,926) (3,780,333) Public works (1,025,868) (1,759,914) Community services (919,439) (855,008) Interest on long-term debt (321,043) (333,209) Total ($8,914,615) 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 $34,144,859 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 b y $84,781. The General Fund revenues ($10,410,925) exceeded General Fund expenditures ($10,326,144). 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 $3,509,625 for Fiscal Year 09-10. During this fiscal year the City also had $1,104,627 in Capital Improvement Projects paid with General Funds. The equity in the CRA Debt Service fund balance decreased by $110,283. 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 $471,660. The City maintained an operational surplus in the General Fund in FY 2009-10 of $1,189,408. Expenditures: Actual expenditures were less than the final budget by $717,748 resulting from lower costs for most programs in FY 2009-10. -8 - Ending Fund Balance: The total fund balance at the beginning of the fiscal year was $24,615,597 and at the end of the year the fund balance was $24,700,378. The operational surplus in the General Fund was $1,189,408. During FY 2009-10, a total of $1,104,627 in Capital Improvements Projects was paid with General Funds. The net General Fund impact was $84,781, leaving a total increase of $84,781 in the fund balance of the General Fund during FY 2009-10. Capital Assets and Debt Administration Capital Assets. As shown in the following table, as of June 30, 2010, the City of Temple City had $27,542,462 invested in capital assets, including land, buildings, improvements, furniture and equipment, vehicles and infrastructure. Capital Assets At Year -End Governmental Activities 2010 2009 Land $13,574,306 $13,574,306 Construction in progress 445,273 699,952 Buildings 6,223,122 4,831,129 Improvements 5,290,172 5,268,156 Furniture and equipment 1,337,696 1,332,207 Vehicles 1,088,012 1,053,929 Infrastructure 12,403,596 11,588,078 Subtotal $40,362,177 $38,347,757 Less: depreciation (12,819,715) (12,238,384) Total capital assets, net $27,542,462 $26,109.373 Long -Term Debt. In December 1993, the Temple City Financing 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, 2010, the outstanding principal amount of loans payable from the City to the Temple City Financing Authority was $6,900,000. 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 OPEB 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. During fiscal year 2009-10, the City annual OPEB cost was $1,902,682. A total of $116,515 in contributions was made during the fiscal year, leaving a net OPEB obligation of $1,786,167. -9 - Outstanding Debt Governmental Activities 2010 2009 2005 Refunding Revenue Bonds $6,900,000 $7,195,000 Net OPEB Obligation 1,786,167 886,980 Compensated absences 238,034 171,438 Total $8,924.201 $8,253,418 Contacting the City's Financial Management 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 Financial Services Department, at the City of Temple City, 9701 Las Tunas Drive, Temple City, CA. 91780. -10 - BASIC FINANCIAL STATEMENTS - 11 - (This page intentionally left blank) - 12 - GOVERNMENT -WIDE FINANCIAL STATEMENTS - 13 - CITY OF TEMPLE CITY Statement of Net Assets June 30, 2010 (With Comparative Totals for June 30, 2009) Governmental Activities 2010 2009 Assets: Cash and investments (note 2) $ 36,125,897 36,532,691 Cash and investments with fiscal agent (note 2) 627,225 627,364 Accounts receivable 239,618 166,392 Interest receivable 38,765 124,938 Due from other governments 1,762,897 1,274,699 Prepaid items 9,588 - Loans receivable (note 6) 1,770,778 1,773,173 Capital assets (note 7): Capital assets, not being depreciated 14,019,579 14,274,258 Capital assets, being depreciated, net of accumulated depreciation 13,522,883 11,835,115 Total assets 68,117,230 66,608,630 Liabilities: Accounts payable 1,530,914 1,578,018 Accrued payroll 118,504 91,824 Interest payable 106,268 109,759 Due to other governments 118,133 113,063 Deposits 85,537 114,611 Long-term liabilities (notes 9 and 10): Portion due within one year: Compensated absences 23,803 17,144 Refunding revenue bonds payable 305,000 295,000 Portion due beyond one year: Compensated absences 214,231 154,294 Net OPEB obligation 1,786,167 886,980 Refunding revenue bonds payable 6,595,000 6,900,000 Total liabilities 10,883,557 10,260,693 Net assets: Invested in capital assets 27,542,462 26,109,373 Restricted for: Specific projects and programs 10,788,680 9,753,657 Education scholarship - nonexpendable 160,000 160,000 Education scholarship - expendable 12,706 10,931 Unrestricted 18,729,825 20,313,976 Total net assets $ 57,233,673 56,347,937 See accompanying notes to basic financial statements. - 14 - CITY OF TEMPLE CITY Statement of Activities Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Governmental activities: General government Community development Public safety Public works Community services Interest on long-term debt Total governmental activities Expenses Program Revenues Operating Capital Charges for Contributions Contributions Net Governmental Activities Services and Grants and Grants 2010 2009 $ 2,716,505 1,480,064 4,484,281 2,969,555 2,581,200 321,043 151,245 45,555 1,056,657 349,299 877,083 133,272 56,906 1,886,781 686,185 975,576 (2,519,705) (2,210,078) (74,108) 23,927 (3,473,926) (3,780,333) (1,025,868) (1,759,914) (919,439) (855,008) (321,043) (333,209) $ 14,552,648 2,828.076 3.390,483 General revenues: Taxes: Property taxes Sales taxes Transient occupancy taxes Franchise taxes Other taxes Investment income State motor vehicle in lieu State revenue - other Other Total general revenues Change in net assets Net assets at beginning of year Net assets at end of year See accompanying notes to basic financial statements. - 15 - (8,334,089) (8,914,615) 2,780,452 3,764,946 1,475,728 1,675,895 34,844 41,536 533,542 581,526 127,573 91,886 262,636 712,967 3,549,571 3,059,138 6,975 8,203 448,504 379,190 9,219,825 10,315,287 885,736 1,400,672 56,347,937 54,947,265 $ 57,233.673 56,347.937 (This page intentionally left blank) - 16 - FUND FINANCIAL STATEMENTS - 17 - (This page intentionally left blank) - 18 - GOVERNMENTAL FUNDS Major Governmental Funds 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. SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for specific revenues (other than trusts or major capital projects) that are legally restricted to expenditures for a particular purpose. The following special revenue fund has been classified as a major fund: The Community Development Block Grant (CDBG) Fund is used to account for the revenues and expenditures of the U.S. Housing and Urban Development - Community Development Block Grant Program. DEBT SERVICE FUND Debt Service Funds are used to account for the accumulation of resources for the repayment of long-term debt. The following debt service fund has been classified as a major fund: The CRA Debt Service Fund is used to account for resources set aside for the accumulation of resources the payment of principal and interest on the Community Redevelopment Agency's long-term debt. CAPITAL PROJECTS FUND Capital Projects Funds are used to account for the financial resources used for the acquisition of capital assets. The following capital projects fund has been classified as a major fund: The City -Wide Capital Improvements fund is used to account for all capital projects of the City. Nonmajor Governmental Funds These funds constitute all other governmental funds that do not meet the major 10% and 5% test of assets, liabilities, revenues or expenditures for the governmental funds. These funds consist of other Special Revenue, Capital Projects and Permanent Funds of the City. - 19 - CITY OF TEMPLE CITY Governmental Funds Balance Sheet June 30, 2010 (With Comparative Totals for June 30, 2009) Assets Cash and investments Cash and investments with fiscal agent Accounts receivable Interest receivable Due from other funds (note 3) Due from other governments Prepaid items Loans receivable (note 6) Advances to other funds (note 4) Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll Due to other funds (note 3) Deposits Deferred revenue (note 8) Advances from other funds (note 4) Total liabilities Fund balances (deficit) (note 14): Reserved for: Advances to other funds Loans receivable Education scholarship Prepaid items Unreserved, reported in: General fund Special revenue funds Debt service fund Capital projects funds Permanent fund Total fund balances (deficit) Total liabilities and fund balances General Fund $ 21,697,106 239,616 37.377 1,057,137 478,891 9,588 700,379 4,073,226 Special Revenue CRA Debt CDBG Service 132,376 1,057,739 Capital Projects City -Wide Capital Improvements 22,584 279,787 627,225 - 1,165 Nonmajor Governmental Funds Totals 2010 2009 13,044,308 35,043,785 35,242,155 627,225 627,364 239,618 166,392 1,388 38,765 124,938 1,513 1,058,650 503.970 1,031,044 1,643,476 1,158,872 9,588 12,660 1,770,778 1,773,173 - 4.073.226 4,245,337 $ 28.293,322 1.190.115 650.974 279.787 $ 975,620 107,252 - 1,513 132.376 85,537 2,423,022 1,057.739 2,160 279,787 4,073,226 14.090,913 44 505.111 43.842.201 273,347 1,530,914 1,578,018 11,252 118,504 91,824 924,761 1,058,650 503,970 85,537 114,611 12,660 3,493,421 3,500,761 4,073,226 4.245,337 3,592,944 1,190,115 4,075,386 279,787 1,650,204 700.379 9,588 22,340.207 1.222,020 10, 360, 252 10, 034, 521 1,650,204 1,770,204 700,379 792,861 22,706 22,706 10,931 9,588 - - 22,340,207 22,052,532 10,366,335 10,366,335 9.605,957 (3,424,412) (3,424,412) (3,314,129) - 2,319,852 2,319,852 2,729,324 160,000 160,000 160,000 24,700,378 (3,424,412) 12.868,893 34,144,859 33.807,680 $ 28,293.322 1.190,115 14.090 913 44.505.111 43.842.201 650.974 279,787 See accompanying notes to basic financial statements. - 20 - CITY OF TEMPLE CITY Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2010 Fund balances of governmental funds $ 34,144,859 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity. Cost of capital assets, not being depreciated 14,019,579 Cost of capital assets, being depreciated 26,342,598 Accumulated depreciation (12,819,715) 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. All liabilities (both current and long-term) are reported in the Statement of Net Assets. Compensated absences (238,034) Refunding revenue bonds payable (6,900,000) Net OPEB liability (1,786,167) Accrued liabilities in the Statement of Net Assets differ from the amount reported in governmental funds due to accrued interest on revenue bonds payable. (106,268) Due from other governments in the Statement of Net Assets differs from the amount reported in governmental funds due to the net change in the outstanding insurance premium receivable (retrospective deposit receivable) to the California Joint Powers Insurance Authority. 119,421 Deferred revenue balances relating to certain loans receivable are not reported as liabilities in the Statement of Net Assets since revenue recognition is not based upon measurable and available criteria. Deferred revenue - housing rehabilitation loans 12,660 Deferred revenue - CDBG home improvement loans 1,057,739 City Community Redevelopment Agency 2,423,022 The Internal Service Fund is used by management to charge the costs of self insurance activities to individual funds. The cash and investments of the Internal Service Fund are included in governmental activities in the Statement of Net Assets because it primarily serves governmental activities of the City. 963,979 Net assets of governmental activities $ 57.233.673 See accompanying notes to basic financial statements. - 21 - (This page intentionally left blank) - 22 - CITY OF TEMPLE CITY Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Special Capital Revenue Projects Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines Investment income Rental income Low income grant and loan repayments Other Total revenues Expenditures: Current: General government Community development Public safety Public works Community services Capital outlay Debt service: Principal Interest Pass -through payments SERAF payment to the State Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in (note 5) Transfers out (note 5) Total other financing sources (uses) Net changes in fund balances and balances (deficit) at General Fund CRA City -Wide Nonmajor Debt Capital Governmental Totals CDBG Service Improvements Funds 2010 2009 $ 3,830,602 1,096,347 3,549,571 349,299 542,976 534,287 442,363 65,928 23,590 348,851 648,819 673 162,205 3,024,237 1,238,408 96,777 101,565 1,000 4,641,626 5,514,153 1,096,347 950,216 6,923,107 5,792,744 1,781,384 1,968,828 631,064 399,053 544,601 943,839 65,928 80,794 23,590 87,326 349,851 306,020 10,410.925 372,889 649,492 4,624,192 16,057.498 16,042.973 2,263,820 1,289,386 23,590 4,273,626 948,303 1,008,656 6,838 30,575 236,000 387,122 40,046 66,032 2,066,693 264,128 10,894 12,293 1,427,735 1,207,546 32,735 2,263,820 2,012.604 1,323,870 1,708,161 4,285,919 4,358,517 2,376,038 3,790,966 2,246,777 2,517,786 2,106,266 233,868 59,000 295,000 285,000 65,301 452,423 471,281 40,046 51,612 330,160 9,790,629 620,296 681,406 (1,216,921) 23,590 759,775 2,066,693 3,079,632 15.720,319 15,429,795 349,299 (110,283) (2,066,693) 1,544,560 337,179 613,178 (349,299) (535,515) (349,299) 84,781 (110,283) beginning of year 24,615,597 (3,314,129) Fund balances (deficit) at end of year $ 24,700,378 (3,424,412) 2,066,693 133,071 (1,314,950) 2,066,693 (1,181.879) See accompanying notes to basic financial statements. -23- 362,681 2,881,170 (2,881,170) 2,709,757 (2,933,196) (223,439) 337,179 389,739 12.506,212 33,807,680 33,417,941 12,868,893 34,144.859 33,807,680 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, 2010 Net change in fund balances - total governmental funds $ 337,179 Amounts reported for governmental activities in the Statement of Activities are different because: When 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 Activities, 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 resources expended, whereas net assets decreased by the amount of depreciation expense charged for the year. Capital outlay 39,573 Public works 1,974,847 Depreciation expense (581,331) Repayment of bond principal is an expenditure in the governmental funds and, thus, has the effect of reducing fund balance because current financial resources have been used. For the City as a whole, however, the payment reduces the liability in the Statement of Net Assets and does not result 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 postemployment benefits whereas the governmental funds only report the actual cash payments the City made for insurance premiums on behalf retirees and their eligible family members. 295,000 Other post employment benefits (899,187) Compensated absences expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences - current year accrual Compensated absences - current year retirements (74,888) 8,292 Accrued interest expense 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. 3,490 (Continued) See accompanying notes to basic financial statements. - 24 - 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 (Continued) 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. (7,340) Change in the accrued but unpaid retrospective insurance receivable due from other governments is reflected in the Statement of Activities, but not reflected in governmental funds The Internal Service Fund is used by management to charge 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. 3,595 (213,494) Changes in net assets of governmental activities $ 685,736 See accompanying notes to basic financial statements. - 25 - (This page intentionally left blank) - 26 - PROPRIETARY FUND INTERNAL SERVICE FUND The Self Insurance Fund is used to account for goods and services relating to insurance premiums provided by one department to other departments on a cost reimbursement basis. - 27 - CITY OF TEMPLE CITY Proprietary Fund Statement of Net Assets June 30, 2010 (With Comparative Totals for June 30, 2009) Governmental Activities - Self Insurance Internal Service Fund 2010 2009 Assets Cash and investments Total assets $ 1,082,112 1,290,536 1,082,112 1,290,536 Liabilities Due to other governments 118,133 113,063 Total liabilities 118,133 113,063 Net Assets Unrestricted Total net assets 963,979 1,177.473 $ 963,979 _ 1.177,473 See accompanying notes to basic financial statements. - 28 - CITY OF TEMPLE CITY Proprietary Fund Statement of Revenues, Expenses and Changes in Fund Net Assets Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Governmental Activities - Internal Service Fund Self Insurance 2010 2009 Operating revenues: Other Total operating revenues Operating expenses: Insurance premiums $ 47,127 46,510 47,127 46,510 260,621 179,253 Total operating expenses 260,621 179,253 Operating loss (213,494) (132,743) Transfers in 223,439 Change in net assets (213,494) 90,696 Net assets at beginning of year 1,177,473 1,086,777 Net assets at end of year $ 963.979 1,177,473 See accompanying notes to basic financial statements. - 29 - CITY OF TEMPLE CITY Proprietary Fund Statement of Cash Flows Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Governmental Activities - Internal Service Fund Self insurance 2010 2009 Cash flows from operating activities: Cash payments to suppliers for goods and services $ (255,551) (223,439) Cash received for other operating activities 47,127 46,510 Net cash provided by (used for) operating activities (208,424) (176,929) Cash flows from non -capital financing activities: Cash received from other funds 223,439 Net increase in cash and cash equivalents (208,424) 46,510 Cash and cash equivalents at beginning of year 1,290,536 1,244,026 Cash and cash equivalents at end of year $ 1,082,112 1.290.536 Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating Toss $ (213,494) (132,743) Adjustments to net cash provided by (used for) operating activities: Increase (decrease) in due to other governments 5,070 (44,186) Net cash provided by (used for) operating activities $ (208,424) (176,929) Noncash transactions: There were no significant noncash investing, capital or financing activities during the year ended June 30, 2010. See accompanying notes to basic financial statements. - 30 - FIDUCIARY FUND AGENCY FUND The CRA Trust Fund is used to account for maintenance fees held by the City as an agent for the Community Redevelopment Agency. -31 - CITY OF TEMPLE CITY Fiduciary Fund Statement of Fiduciary Assets and Liabilities June 30, 2010 (With Comparative Totals for June 30, 2009) CRA Trust Fund 2010 2009 Assets Cash and investments (note 2) Accounts receivable Total assets Liabilities $ 2,762 2,882 7,319 7,199 $ 10,081 10,081 Accounts payable $ 10,081 10,081 Total liabilities $ 10,081 10,081 See accompanying notes to basic financial statements. - 32 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS Year Ended June 30, 2010 (1) Summary of Significant Accounting Policies (a) Description of the Reporting Entity The City of Temple City was incorporated May 25, 1960 under the general laws of the State of California. On April 16, 1971 the City adopted resolution number 71-1084 declaring itself a charter city. The City operates under the Council - Manager form of government. The City provides the following services as authorized by its general laws: Public Safety, Highways and Streets, Health and Sanitation, Cultural and Park Facilities, Public Improvements, Planning, Recreation and General Administrative Services. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. All of the City's component units are considered to be blended component units. 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. Separate financial statements of the Agency can be obtained at City Hall. - 33 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) 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. City 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. (b) Basis of Accounting and Measurement Focus The basic financial statements of the City are composed of the following: • Government -wide financial statements • Fund financial statements • Notes to basic financial statements Financial reporting is based upon all GASB pronouncements, as well as the FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins that were issued on or before November 30, 1989 that do not conflict with or contradict GASB pronouncements. FASB Pronouncements issued after November 30, 1989 are not followed in the preparation of the accompanying financial statements. - 34 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMEMNTS (Continued) (1) 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 government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government -wide financial statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. -35- CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Summary of Significant Accounting Policies, (Continued) Fund Financial Statements The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government's governmental, proprietary and fiduciary funds are presented after the government -wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental 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. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City generally considers revenues available if they are collected within 90 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 (Le., 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. - 36 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Summary of Significant Accounting Policies, (Continued) In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. 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 that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as 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 - 37 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Summary of Significant Accounting Policies, (Continued) Proprietary Funds, (Continued 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. 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. (c) 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. - 38 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Summary of Significant Accounting Policies, (Continued) 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 principal and interest on long-term debt. Capital Proiects Funds Capital Projects Funds are used to account for financial resources to be used for the acquisition, construction or improvements of major capital facilities and infrastructure. Permanent Fund The Permanent Fund is used to account for financial resources that are legally restricted to the extent that only earnings, and not principal, may be used to support the City or its 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. Community Development Block Grant (CDBG) Fund — To account for the revenues and expenditures of the U.S. Housing and Urban Development - Community Development Block Grant Program. CRA Debt Service Fund — To account for resources set aside for repayment of long-term debt of the Community Redevelopment Agency. City -Wide Capital Improvements Fund — To account for all capital projects of the City. - 39 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Summary of Significant Accounting Policies, (Continued) 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. This fund is custodial in nature (assets equal liabilities) and does not involve measurement of results of operations. (d) Reclassification and Eliminations Interfund 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. (e) 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. (f) 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. (g) 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. - 40 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Summary of Significant Accounting Policies, (Continued) (g) Cash and Investments„ (Continued) Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance, except for 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. (h) Cash Equivalents (i) For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City. Compensated Absences Vacation time begins to accumulate as of the first day of employment to a maximum of 320 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. The liability accrued on the City's books is liquidated by the General Fund. (j) Capital Assets Capital assets (including infrastructure) are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are valued at their 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. Capital assets used in operations are depreciated over their estimated useful lives using -41 CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Summary of Significant Accounting Policies, (Continued) (j) Capital Assets, (Continued) 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 40 years Furniture and equipment 5-7 years Vehicles 5 years Infrastructure: Streets 50-80 years Bridges 50 years Traffic signals 20 years (k) Property Tax Calendar The County of Los Angeles assesses, levies, and collects property taxes for the City. Property taxes levied for the year ended June 30, 2010 were due and payable in two installments on November 1 and February 1 and became delinquent on December 10 and April 10, respectively. At the date of incorporation, the City elected to be a no/low property tax city as an incentive for current and prospective residents to reside in the City. The 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 Taxes are collected by Los Angeles County and are remitted to the City periodically. Dates and percentages are as follows: December 10 January 16 April 10 May 15 July 31 -42- 30% Advance Collection No. 1 10% Advance Collection No. 2 Collection No. 3 CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Summary of Significant Accounting Policies, (Continued) (I) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses, during the reporting period. Actual results could differ from those estimates. (m) 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. (2) Cash and Investments Cash and investments as of June 30, 2010 are classified in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments $36,125,897 Cash and investments with fiscal agent 627,225 Fiduciary Fund: Cash and investments 2,762 Total cash and investments $36.755.884 Cash and investments as of June 30, 2010 consist of the following: Cash on hand $ 2,200 Deposits with financial institutions 5,605,458 Investments 31,148,226 Total cash and investments $36.755.884 - 43 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (2) Cash and Investments, (Continued) Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by fiscal agent that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. Investment Types Authorized by State Law Authorized by Investment Policy Local Agency Bonds U.S. Treasury Obligations U.S. Agency Securities Banker's Acceptances Commercial Paper Negotiable Certificates of Deposit Repurchase Agreements Reverse Repurchase Agreements Medium -Term Notes Mutual Funds Money Market Mutual Funds Mortgage Pass -Through Securities County Pooled Investment Funds Local Agency Investment Fund (LAIF) JPA Pools (other investment pools) No Yes Yes No No No No No No No Yes No No Yes No Maximum Maturity* 5 years 5 years 5 years 180 days 270 days 2 year 1 year 92 days 5 years N/A N/A 5 years N/A N/A N/A Maximum Maximum Percentage Investment of Portfolio* In One Issuer* None None None 40% 25% 30% None 20% of base 30% 20% 20% 20% None None None None None None 30% 10% None None value None None 10% 10% None None None None * Based on state law requirements or investment policy requirements, whichever is more restrictive. - 44 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (2) Cash and Investments, (Continued) Investments Authorized by Debt Agreements Investments of debt proceeds held by fiscal agents 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. Authorized Maximum Investment Type Maturity Local Agency Bonds 5 years U.S. Treasury Obligations 5 years U.S. Agency Securities 5 years Banker's Acceptances 1 year Commercial Paper 1 year Negotiable Certificates of Deposit 1 year Repurchase Agreements 30 days Money Market Mutual Funds N/A Local Agency Investment Fund (LAIF) NIA Investment Agreements N/A Maximum Percentage Allowed None None None None 25% 30% None 20% None None Maximum Investment In One Issuer None None None None 10% None None 10% 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 will be to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity. - 45 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (2) Cash and Investments, (Continued) Investment Type State investment pool U.S. agency securities Money market funds Held by fiscal agent: Money market mutual funds Total Total Remaining Maturing (in Months) 12 Months More than Or Less 12 Months $27,261,635 27,261,635 3,250,000 - 9,366 9,366 627,225 627.225 3,250,000 $31.148.226 27.898.226 3,250.000 Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City's investments (including investments held by trustees) include the following investments that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above): • Mortgage -backed securities: These securities are subject to early payment in a period of declining interest rates. The resulting reduction in expected total cash flows affects the fair value of these securities, making them highly sensitive to change in interest rates. At fiscal year end, the fair value of investments in mortgage -backed securities totaled $3,250,000. Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year end for each investment type. Minimum Rating as of Year End Legal Not Investment Type Total Rating AAA Rated State investment pool $27,261,635 N/A - 27,261,635 U.S. agency securities 3,250,000 AAA 3,250,000 Money market funds 9,366 A 9,366 Held by fiscal agent: Money market mutual funds 627,225 AAA 627.225 Total $31.148.226 3.866.591 27.281.635 - 46 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 12) Cash and Investments, (Continued) Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2010, 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 secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2010, the City's investments in the following investment types were held by the same broker - dealer (counter -party) that was used by the City to buy the securities: Investment Type Reported Amount Federal agencies securities $2,100,000 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 LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. - 47 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (3) Interfund Receivables and Payables Current interfund receivables and payables balances consisted of the following as of June 30, 2010: Receivable Fund Payable Fund Amount General Fund Nonmajor governmental funds $ 924,761 (a) General Fund CDBG Special Revenue Fund 132,376 (a) Subtotal 1,057,137 Nonmajor governmental Funds General Fund 1,513 Subtotal $1.058.650 (a) As of June 30, 2010, the Low and Moderate Income Housing Fund and Capital Improvements Fund owed the General Fund $34,998 and $105,063 respectively, for annual administrative charges. In addition, the CDBG Fund and other nonmajor governmental funds owed $132,376 and $782,267, respectively, to the General Fund to fund temporary cash deficits. (4) Interfund Advances Noncurrent interfund advances at June 30, 2010 are as follows: Receivable Fund General Fund Payable Fund Amount CRA Debt Service $4,073,226 Prior to October 6, 1998, the City incurred various expenditures on behalf of the Temple City Redevelopment 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 between the City and the Redevelopment 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. The outstanding balance at June 30, 2010 was $4,073,226, which includes $2,366,247 of unpaid interest. - 48 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (5) Interfund Transfers Interfund transfers for the year ended June 30, 2010 were as follows: Transfers Out Nonmajor General CDBG Governmental Fund Fund Funds Total Transfers In General Fund $ 349,299 332,107 681,406(a) City -Wide Capital Improvements Fund 1,104,627 962,066 2,066,693(b) Nonmajor Governmental Funds 112,294 20.776 133,071(c) Total $1_,216.921 349.299 1.314.950 2.881,170 (a) The General Fund was reimbursed from the CDBG Special Revenue Fund and various nonmajor governmental funds for expenditures that were incurred for various projects. (b) The City -Wide Capital Improvements Fund was reimbursed from the General Fund and nonmajor governmental funds for various capital improvement expenditures. (c) The General Fund transferred $112,294 to the State Gas Tax Fund, a nonmajor fund, to pay for engineering and administration costs in excess of amounts received under Section 2107.5. In addition, the State Recycling Fund, a nonmajor fund, transferred $732 to the Landscape Fund, a nonmajor fund, to fund costs related to tree planting. - 49 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Loans Receivable Loans receivable consisted of the following at June 30, 2010: Description Amount General Fund: Calabee's, Inc. $ 637,504(a) Temple City Chamber of Commerce 62.875 700,379 Community Development Block Grant: Home improvement loans 1,057,739(b) Low and Moderate Income Housing rehabilitation loans 12.660 Total $1.770,778 (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 100% disbursement of the loan or (2) the 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. - 50 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (7) Capital Assets A summary of capital asset activity for the year ended June 30, 2010 was as follows: Capital assets not being depreciated: Land Land improvements Land rights related to streets Construction in progress Total capital assets not being depreciated Capital assets being depreciated: Buildings Improvements Furniture and equipment Vehicles Infrastructure: Streets Traffic signals Bridges Total capital assets being depreciated Less accumulated depreciation for: Buildings Improvements Furniture and equipment Vehicles Infrastructure: Streets Traffic signals Bridges Total accumulated depreciation Total capital assets being depreciated, net Total capital assets, net Balance at Balance at June 30, 2009 Additions Retirements June 30, 2010 $ 3,268,952 1,839,413 8,465,941 699,952 3,268,952 1,839,413 8,465,941 179,801 (434,480) 445,273 14,274,258 179,801 (434,480) 14,019,579 4,831,128 1,391,993 5,268,156 22,016 1,332,207 5,489 1,053,929 34,083 9,439,682 815,518 1,190,394 958,003 24,073,499 2,269,099 (1,286,314) (1,530,107) (1,067,970) (782,685) (5,536,295) (1,086,590) (948,423) (120,977) (131,704) (86,250) (90,952) (126,904) (14,964) (9,580) (12,238,384) (581,331) 6,223,122 5,290,172 1,337,696 1,088,012 10,255,200 1,190,394 958,003 26,342,598 (1,407,291) (1,661,811) (1,154,220) (873,637) (5,663,199) (1,101,554) (958,003) (12,819,715) 11,835,115 1,687,768 (434,480) 13.522,883 $26,109.373 1.867.569 (434.480) 27.542,462 -51 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (7) Capital Assets, (Continued) Depreciation expense was charged to the following functions in the Statement of Activities: General government $105,054 Community development 37,790 Public safety 25,333 Public works 222,196 Community services 190.958 Total $581.331 (8) Deferred Revenue Deferred revenue consisted of the following as of June 30, 2010: Nonmajor General CDBG Governmental Fund Fund Funds Total Amounts associated with long-term loans or advances: Accrued interest portion of City's advances to the Community Redevelopment Agency $2,366,247 - CDBG home improvement loans 56,775 1,057,739 Low and moderate income housing loans 12.660 2,366,247 1,114,514 12.660 Total $2.423.022 1.057.739 12.660 3.493.421 - 52 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) f9) Long -Term Liabilities Changes in long-term liabilities for the year ended June 30, 2010 were as follows: Portion Portion Balance at Balance at Due Within Due Beyond July 1, 2009 Additions Repayments June 30, 2010 One Year One Year 2005 Refunding Revenue Bonds Net OPEB Obligation Compensated absences Total $7,195,000 886,980 171,438 $8.253.418 1,015,702 74.888 1,094 59 (10) Refunding Revenue Bonds, Series 2005 (295,000) 6,900,000 305,000 6,595,000 (116,515) 1,786,167 - 1,786,167 (8,292) 238,034 23803 214.231 ( 419.807) 8.924.201 328.803 8.595x39$ 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 as of June 30, 2010 was $629,225. The outstanding principal balance of the bonds as of June 30, 2010 was $6,900,000. Annual debt service requirements to maturity for the refunding revenue bonds payable are as follows: - 53 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (10) Refunding Revenue Bonds, Series 2005, (Continued) Year Ending June 30 Principal Interest Total 2011 $ 305,000 313,086 618,086 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 2016-2020 2,060,000 1,017,596 3,077,596 2021-2025 2,590,000 471,663 3,061,663 2026 595,000 14,503 609,503 Total $6.900.000 1931,694 9.831,694 (11) Pledged Revenue The City and its component units have one debt issue outstanding that is collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes. For the current year, debt service payments as a percentage of the pledged gross revenue (or net of certain expenses where so required by the debt agreement) are indicated in the table below. These percentages also approximate the relationship of debt service to pledged revenue for the remainder of the term of the commitment: Description of Pledged Revenue Annual Amount of Pledged Annual Debt Revenue Service Payments Tax increment $ 648,819 - 54 - Debt Service as a Percentage of Revenue 619,052 95.41% CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (12) Deficit Fund Balances The following fund had deficit fund balances as of June 30, 2010: CRA Debt Service Fund $(3,424,412) The deficit in the Debt Service Fund was due to the reporting of interfund advances, which were accounted for in the City's General Long -Term Debt Account Group prior to the implementation of GASB 34. The deficit will be reduced as the advances are repaid in future years with available tax increment. (13) Expenditures in Excess of Appropriations Expenditures in the fund below exceeded appropriations as of June 30, 2010: Fund Variance with Final Budget Expenditures Final Budget Special Revenue Funds: Traffic Safety Grant $ 10,000 12,293 (2,293) EECBG Fund - 9,000 (9,000) State Recycling Fund 720 1,894 (1,174) Lighting and Landscape District Fund 935,805 939,120 (3,315) (14) Reserves and Designation of Fund Balances The City established "reserves" of fund balances to segregate amounts which are not appropriable for expenditure in future periods, or which are legally set aside for specific future use. Fund "designations" also may be established to indicate tentative plans for financial resource utilization in future periods. - 55 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (14) Reserves and Designation of Fund Balances, (Continued) Fund balances at June 30, 2010 consisted of the following reserves and designations: Nonmajor CRA Debt Governmental Service Funds Reserved for: Advances to other funds Loans receivable Prepaid items Educational scholarship Total reserved fund balances Unreserved: Designated for: Special purposes Future retirement One-time expenditures Total designated fund balances Undesignated Total unreserved fund balances (deficit) Total fund balances (deficit) General Fund $ 1,650,204 700,379 9,588 2,360,171 738,200 17,046,451 17,784,651 Total 1,650,204 700,379 9,588 22,706 22, 706 22,706 2 382,877 10, 526, 335 10, 526, 335 738,200 17.046.451 10 526 28,310,986 4,555,556 (3,424.412) 2,319,852 3,450,996 22,340,207 $24.700.378 (15) Defined Benefit Pension Plan (PERS) Plan Description (3,424,412) 12,846,187 31, 761,982 (3.424.412) 12.868.893 34.144.859 The 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 - 56 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) j15) Defined Benefit Pension Plan (PERS), (Continued) Plan Description, (Continued) 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. Contributions and Funding Policy Miscellaneous participants are required to contribute 7% of their annual covered salary. The City is required to contribute at an actuarially determined rate. The rate for the year ended June 30, 2010 was 14.102% of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended b City Council in conjunction with applicable labor contracts. The City's contributions to the plan for the years ending June 30, 2008, 2009, and 2010 were $432,794, $492,999, and $540,117, respectively, and were equal to the required contributions for each year. (16) Other Post Employment Benefits Plan Description: The City administers a single -employer defined benefit plan which provides medical insurance benefits to eligible retirees and qualified family members. The City pays 100% of the entire cost of medical, dental and vision benefits for eligible retirees and up to 50% of the entire cost of benefits for the retirees' qualified family members. City's Funding Policy: The contribution requirements of plan members and the City are established and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on a pay-as-you- go basis (i.e., as premiums become due). During the fiscal year ended June 30, 2010, the City contributed $116,515 to the plan (100% of total premiums). The City has not established a trust that is administered by the City for the purpose of holding assets accumulated for plan benefits. Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. 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 (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the current fiscal year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation for these benefits: - 57 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (16) Other Post Employment Benefits, (Continued) Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB cost (expense) Contributions made (including premiums paid) Increase in net OPEB obligation Net OPEB obligation —beginning of year Net OPEB obligation —end of year $1,015,702 1,015,702 (116,515) 899,187 886,980 $1.786.167 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for during fiscal year 2010 and the two preceding years were as follows: Percentage of Annual Fiscal Annual OPEB Cost Net OPEB Year Ended OPEB Cost Contributed Obligation 6/30108 N/A N/A N/A 6/30/09 $1,015,702 12.7% $ 886,980 6/30/10 1,015,702 11.5% 1,786,167 Actuarial Methods and Assumptions. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for the benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short- term volatility in actuarial accrued liabilities and the actuarial assets, consistent with the long-term perspective of the calculations. - 58 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (16) Other Post Employment Benefits, (Continued) The actuarial cost method used for determining the benefit obligations is the Entry Age Actuarial Cost Method. The actuarial assumptions included a 2 percent investment rate of return, which is the assumed rate of the expected long-term investment returns on plan assets calculated based on the funded level of the plan at the valuation date, and annual cost trend rate of: 9 percent initially for healthcare and pharmacy; reduced by decrements of 1 percent per year to an ultimate rate of 6 percent after the fourth year; an annual cost trend rate of 4 percent initially for dental with decrements of 1/2 percent per year to an ultimate rate of 3 percent after the third year; and an annual cost trend of 3% for vision. All the rates included a 3 percent inflation assumption. The UAAL is being amortized as a level percentage of projected payroll over 30 years. It is assumed the City's payroll will increase 3% per year. SCHEDULE OF FUNDING PROGRESS Actuarial UAAL Accrued as a % Actuarial Liability Unfunded of Actuarial Value of (AAL) AAL Funded Covered Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Date (alb) u (b-a)Ic) 6/30/07 n/a n/a n/a n/a n/a n/a 6/30/08 n/a n/a n/a n/a n/a n/a 6/30/09 $0 $1,015,702 1,015,702 0% 2,261,211 45% (17) Liability, Property and Workers Compensation Protection A. Description of Self -Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 122 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self -insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other coverages. The Authority's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a 9 -member Executive Committee. - 59 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (17) Liability, Property and Workers Compensation Protection, (Continued) B. Self -Insurance Programs of the Authority General Liability Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Claims are pooled separately between police and non -police. Costs are spread to members as follows: the first $30,000 of each occurrence is charged directly to the member's primary deposit; costs from $30,000 to $750,000 and the loss development reserves associated with losses up to $750,000 are pooled based on the member's share of losses under $30,000. Losses from $750,000 to $2,000,000 and the associated loss development reserves are pooled based on payroll. Costs of covered claims from $2,000,000 to $50,000,000 are paid under reinsurance and excess insurance policies subject to a $3,000,0000 annual aggregate deductible and a quota -sharing agreement whereby the Authority is financially responsible for 40% of losses occurring within the $2,000,0000 to $10,000,000 layer. The overall policy limit for each member including all layers of coverage is $50,000,000 per occurrence. Cost of covered claims for subsidence losses are paid by excess insurance with the following sub -limits per member: $25,000,000 per occurrence with a $15,000,000 annual aggregate. Workers' Compensation The City also participates in the workers' compensation pool administered by the Authority. Each member pays a primary deposit to cover estimated losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Claims are pooled separately between public safety and non-public safety. Costs are allocated to members by the following methods within each of the four layers of coverage: a) the first $50,000 of each loss is charged directly to the member's primary deposit; b) losses from $50,000 to $100,000 and the loss development reserve associated with losses up to $100,000 are pooled based on the member's share of losses under $50,000; c) losses from $100,000 to $2,000,000 and the loss development reserves associated with those losses are pooled based on payroll; d) losses from $2,000,000 up to statutory limits are paid under an excess insurance policy. Protection is provided per statutory liability under California Workers' Compensation law. - 60 - CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (17) Liability, Property and Workers Compensation Protection (Continued) Employer's liability losses are pooled among members to $2,000,000, coverage from $2,000,000 to $4,000,000 is purchased as part of an excess insurance policy, and losses from $4,000,000 to $10,000,000 are pooled among members C. Purchased Insurance Property Insurance The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City property is currently insured according to a schedule of covered property submitted by the City to the Authority. The City currently has all-risk property insurance protection in the amount of $11,415,341. There is a $5,000 deductible per occurrence except for non -emergency vehicle insurance which has $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. Earthquake and Flood Insurance The City purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. The City currently has earthquake protection in the amount of $9,252,611. There is a deductible of 5% of value with a minimum deductible of $100,000. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. Environmental Insurance The City participates in the pollution legal liability and remediation legal liability insurance which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims -made basis. There is a $50,000 deductible. The Authority has a limit of $50,000,000 for the three-year period from July 1, 2008 through June 30, 2011. Each member of the Authority has a $10,000,000 limit during the 3 -year term of the policy. Crime Insurance The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retroactive adjustments. -61- CITY OF TEMPLE CITY NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (17) Liability, Property and Workers Compensation Protection (Continued) D. Adequacy of Protection During the past three fiscal (claims) years, none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. (18) Joint Venture Los Angeles Regional Interoperable Communication System Authority (LA-RICS) In February 2009, the City of Temple City entered into a joint powers agreement with eighty-two Los Angeles cities, County of Los Angeles, Los Angeles Unified School District, and the University of California Los Angeles to create the Los Angeles Regional Interoperable Communications System Authority (Authority). The purpose of the Authority is to enhance the current public safety communications needs with a system capable of expanding to meet future needs, develop funding mechanisms, and resolve technical and operational issues in the development and management of the system. The Authority's governing board consists of four representatives from the City of Los Angeles, one representative from the City of Long Beach, three representatives from the County of Los Angeles, one representative from each of the remaining public agencies and up to four at large directors selected by a majority vote of member cities, other than the Cities of Los Angeles and Long Beach. (19) Contingencies Litigation The City is a defendant in various litigation arising 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. - 62 - REQUIRED SUPPLEMENTARY INFORMATION - 63 - CITY OF TEMPLE CITY General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Original Final Positive Year Budget Budget Actual (Negative) Actual Revenues Taxes: Real estate transfer tax $ 85,000 120,000 125,323 5,323 91,886 Sales and use tax 1,100,000 990,000 1,140,907 150,907 1,198,655 In lieu sales tax 450,000 334,820 334,823 3 477,240 Franchise fees 530,000 530,000 533,542 3,542 581,526 Transient occupancy tax 30,000 30,000 34,844 4,844 41,536 Property tax allocation 2,000,000 1,620,000 1.661,163 41,163 2,151,671 Total taxes 4,195,000 3,624,820 3,830,602 205,782 4,542,514 Licenses and permits: Business license fees 140,000 150,000 151,245 1,245 149,576 Building permit fees 550,000 650,000 696,833 46,833 544,602 Parking permit fees 53,000 53,000 56,800 3,800 59,059 Animal license fees 60,000 60,000 66,707 6,707 62,736 Vehicle impound fees 35,000 35,000 28,571 (6,429) 42,424 Temp parking permit fees 60,000 80,000 79,424 (576) 80,011 Code enforcement fees 11,000 11,000 14,517 3,517 11,808 In lieu parking fees - 2,250 2,250 - Total licenses and permits 909,000 1,041,250 1,096.347 55.097 950,216 Intergovernmental: Motor vehicle in lieu tax 90,000 60,000 104,953 44,953 121,355 In Lieu VLF 2,902,500 2,968,540 2,968,541 1 2,930,533 Intergovernmental - 446,905 476,077 29,172 Total intergovernmental 2,992,500 3,475,445 3,549,571 74,126 3,051,888 Charges for services: Shared maintenance charges 3,500 3,500 3,540 40 3,450 Zoning fees 30,000 30,000 33,371 3,371 36,456 Recreation fees 477,500 450,000 475,874 25,874 578,748 Plan check fees 25,000 25,000 5,757 (19,243) 22,384 Facility rental fees 19,750 19,750 24,434 4,684 21,322 Total charges for services 555,750 528,250 542,976 14,726 662,360 Fines, forfeitures and penalties and court fines 540,000 540,000 534.287 (5,713) 287,575 Investment income: Interest earned on investments 450,000 184,200 225,761 41,561 651,306 Interest on CRA loans 150,000 215,800 216,602 802 43,138 Total investment income 600,000 400,000 442,363 42.363 694,444 Rental income 78,000 78,000 65,928 (12,072) 80,794 Other: Other reimbursement 100,000 100,000 130,386 30,386 145.537 Recyclable revenue 35,000 25,000 35,036 10,036 29,952 AB939 reimbursement 8,000 8,000 6,975 (1,025) 8.203 CRAILLD reimbursement 90,000 90,000 152,215 62,215 117.667 Miscellaneous 3,000 28,500 24,239 (4,261) 3,661 Total other income 236,000 251.500 348,851 97,351 305,020 Total revenues 10,106,250 9,939,265 10,410,925 471,660 10,574,811 (Continued) - 64 - CITY OF TEMPLE CITY General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Continued) Variance with Final Budget Prior Original Final Positive Year Budget Budget Actual (Negative) Actual Expenditures General government: City Council $ 121,175 149,975 138,743 11,232 103,887 City Manager 266,175 262,175 209,717 52,458 52.919 Council support 266.620 274,120 273,347 773 241,408 Accounting 351,840 376,840 335,052 41,788 339,062 City Attorney 147,800 229,700 195,793 33,907 83,375 Support services 181.410 203,400 174.129 29,271 173,830 General government buildings 240,155 240,155 207,809 32,346 214,011 Community relations 258,715 258,715 249,941 8,774 199,121 Insurance 1 benefits 564,350 567,350 264,830 302,520 346,089 Purchasing 219,510 229.240 214,406 14,834 203,973 Elections - - 53 (53) 54,929 Total general government 2,617,750 2,791,670 2,263820 527,850 2,012.604 Community development: Planning 551,710 615,710 515,643 100,067 548,208 Housing 250,890 563,290 445,307 117,983 844,668 Building 291,010 395,180 328,436 66,744 231,438 Total community development 1,093,610 1,574,180 1,289.386 284,794 1,624,314 Public safety: Law enforcement 3,643,525 3,643,635 3,509,625 134,010 3,718,872 Traffic engineering 30,250 30,250 24,230 6,020 11.510 Animal control 240,555 246,555 247,733 (1,178) 233.601 Emergency services 43,310 53,130 48,733 4,397 37,166 Code enforcement 253,600 259,100 234,531 24,569 227,693 RSVP 41,000 43,000 34,412 8,588 34,314 Parking administration 249,655 249,655 174,362 75,293 95,361 Total public safety 4,501,895 4,525,325 4,273,626 251,699 4,358,517 Public works: Parking facility 206,440 170,540 128,832 41,708 198,502 Solid waste management 13,610 13,610 6,975 6,635 8,202 Graffiti abatement 31,460 31,460 28,434 3,026 30,563 Parks 746,765 820,615 784,062 36,553 640.525 Total public works 998,275 1 036,225 948,303 87,922 877,792 Community services: Recreation / human services Capital outlay 1,054,815 1,056,015 1 008 656 47,359 1 145,829 17,950 20 840 6,838 14.002 99,739 Total expenditures 10,284,295 11,004,255 9,790,629 1,213,626 10,118,795 Other financing sources (uses) Transfers in 498,700 498.700 681,406 182,706 1,024,048 Transfers out (2,010,800) (2,300,300) (1,216,921) 1,083,379 (1,679.757) Total other financing sources (uses) (1,512,100). (1,801,600) (535,515) 1,266,085 (655,709) Net change in fund balances (1,690,145) (2,866,590) 84,781 2,951.371 (199,693) Fund balances at beginning of year 24,615,597 24,6151597 24,615,597 24.815,290 Fund balances at end of year $ 22,925,452 21,749,007 24.700.378 2,951,371 24,615,597 -65- CITY OF TEMPLE CITY Community Development Block Grant (CDBG) Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Original Final Positive Year Budget Budget Actual (Negative) Actual Revenues: Intergovernmental $ 192,340 492,740 349,299 (143,441) 717,302 Low income grant and loan repayments 23,590 23,590 - 83,347 Total revenues 192,340 516.330 372,889 (143,441) 800,649 Expenditures: Current: Community development Total expenditures - 23,590 23,590 83,347 - 23,590 23,590 83,347 Excess of revenues over expenditures 192,340 492,740 349,299 (143,441) 717,302 Other financing uses: Transfers out (192,340) (192,340) (349,299) (156,959) (717,30 Net change in fund balances 300,400 (300,400) Fund balances at beginning of year Fund balances at end of year $ - 300,400 (300,400) -66- CITY OF TEMPLE CITY NOTE TO REQUIRED SUPPLEMENTARY INFORMATION Year Ended June 30, 2010 (1) Budgets and Budgetary Accounting The City adopts an annual budget prepared on the modified accrual basis for the General Fund, Capital Projects Fund, Debt Service Fund, and certain Special Revenue Funds. During the year, there were budget modifications and supplemental appropriations amounting to $2,804,950. 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 reappropriated through the formal budget process. Expenditures may not legally exceed appropriations at the fund level. - 67 - (This page intentionally left blank) -68- SUPPLEMENTARY SCHEDULES - 69 - (This page intentionally left blank) - 70 - NONMAJOR SPECIAL REVENUE FUNDS 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 from fiscal year ended June 30, 2002 through fiscal year ended June 30, 2008. 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. Proposition 1B Fund To account for revenues received from the State of California to maintain and improve local streets and roads. -71 - NONMAJOR SPECIAL REVENUE FUNDS, (CONTINUED}, American Recovery and Reinvestment Act Fund To account for the City's allocation of the economic stimulus package enacted in February 2009. These funds were used for "shovel ready" capital improvement projects. Justice Assistance Grant Fund To account for the City's allocation received from the State of California. These funds are utilized for local initiatives, training, personnel, equipment, contractual support, and information systems for criminal justice. 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 for 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 To account for the City's share of additional sales tax collected in the Los Angeles County as a result of Measure R. The fund is used to finance traffic relief and transportation upgrades throughout the county over the next 30 years. Sewer Reconstruction Fund To account for special fees collected to be used for new sewer fines and sewer line replacement. Energy Efficient and Conservation Block Grant Fund To account for the City's allocation funded from the American Recovery & Reinvestment Act of 2009. The fund is intended to assist cities to develop, promote, implement, and manage energy efficiency and conservation projects. 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. 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. - 72 - NONMAJOR SPECIAL REVENUE FUNDS, (CONTINUED) 1992/1996 Park Bond Fund To account for revenues received from the Los Angeles County Regional Park and Open Space Grant. This grant was approved November 3, 1992 and November 5, 1996 to benefit property through the improvement of neighborhood parks and recreation facilities for youth and senior citizens. 1996 Park Bond Fund To account for revenues received from the Los Angeles County Regional Park and Open Space 5`h District Excess Funds. This grant was approved July 8, 2008 to benefit the Outdoor Fitness Course at Live Oak Park. State Recycling Fund To account for revenues received from fiscal year 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. Asset Seizure Fund To account for the revenues and expenditures from the seizure of properties. Park Acquisition Fund To account for City imposed fees from the construction of new dwellings within the City. Expenditures are for the acquisition or improvement of neighborhood or community parks in conformance with the priorities established by the General Plan. Lighting and Landscape District Fund To account for assessments and ad valorem 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. NONMAJOR CAPITAL PROJECTS FUND The following Capital Project Fund has been classified as a nonmajor fund in the accompanying financial statements: Community Redevelopment Agency Capital Improvements Fund To account for general Community Redevelopment Agency capital projects and administrative costs. - 73 - NONMAJOR PERMANENT FUND The following Permanent Fund has been classified as a nonmajor fund in the accompanying financial statements: Camelia Trust Fund To account for funds bequeathed to the City by Gerald Maurice Fitzgerald. In July 1987, the City Council established the principal trust fund. Monies from the interest earned are to be spent on education and other expenditures for the benefit of underprivileged children. - 74 - (This page intentionally left blank) - 75 - CITY OF TEMPLE CITY Nonmajor Governmental Funds Combining Balance Sheet June 30, 2010 (With Comparative Totals for June 30, 2009) Assets Cash and investments Accounts receivable Interest receivable Due from other funds Due from other governments Loans receivable Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll Due to other funds Deferred revenue Total liabilities Fund balances: Reserved for: Education scholarship Unreserved, reported in: Special revenue funds Capital projects funds Permanent fund Total fund balances Special Revenue Funds $ 10,438,295 352 1,031, 044 12,660 $ 11,482,351 $ 272,406 11,252 819,698 12,660 1,116,016 10,366,335 Capital Projects CRA Capital Improvements Fund 2,423,633 1,062 1,161 Permanent Camellia Trust Fund Totals 2010 2009 182,380 13,044, 308 12, 812, 098 27 326 1,388 14,609 1,513 - 1,031,044 325,536 12,660 12,660 2,425, 856 182,706 14, 090, 913 13,164, 930 941 105,063 106,004 2,319,852 10,366,335 273,347 11,252 924,761 12,660 393,929 13,441 193,372 57,976 1,222,020 658,718 22,706 22,706 10,931 10,366,335 9,605,957 2,319,852 2,729,324 160,000 160,000 160,000 2,319,852 182.706 12, 868, 893 12, 506, 212 Total liabilities and fund balances $ 11,482,351 2,425,856 182,706 14,090,913 13,164,930 - 76 - CITY OF TEMPLE CITY Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Capital Projects CRA Permanent Revenues: Taxes Intergovernmental Charges for services Fines Investment income Low income grant and loan repayments Other Total revenues Expenditures: Current: Community development Public safety Public works Community services Capital outlay Debt service: Principal Interest SERAF payment to the State Total expenditures Special Revenue Funds Capital Camellia Improvements Trust Fund Fund $ 162,205 3,024,237 1,238,408 96,777 57,956 40,699 1,000 Totals 2010 2009 2,910 4,579,583 41,699 10,894 12,293 1,427,735 1,019,725 32,735 59,000 64,944 162,205 3,024,237 1,238,408 96,777 101,565 227,613 2,023,554 1,306,468 111,478 245,637 3,979 1,000 1,000 2,910 4,624,192 3,919,729 186,686 10,894 500 12,293 - 1,427,735 1,331,081 1,135 1,207, 546 1,342,728 32,735 134,129 59,000 57,000 357 65,301 70,297 264,128 264,128 - 2,627,326 451,171 1,135 3,079,632 2,935,735 Excess (deficiency) of revenues over (under) expenditures 1,952,257 (409,472) 1,775 1,544,560 983,994 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 123,071 (1,314,950) (1,191.879) 10,000 133,071 103,616 (1,314,950) (536.137) 10,000 (1.181.879) (432,521) 760,378 (409,472) 11,775 362,681 551,473 9,605,957 2,729,324 170,931 12506212 11,954.739 5 10, 366, 335 2,319.852 182.706 12,868.893 12.506.212 - 77 - CITY OF TEMPLE CITY Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2010 (With Comparative Totals for June 30, 2009) Public Public Traffic High Tech Transportation - Transportation - Safety Grant COPS Prop A Prop C Assets Cash and investments $ 15,545 8,784 2,000 2,297,764 3,651,610 Accounts receivable - - - Due from other funds - Due from other governments 11,186 - 7,548 - Loans receivable - - - - Total assets $ 26,731 Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll Due to other funds Deferred revenue Total liabilities 8 784 9,548 9,039 2,297,764 3,651,610 107,093 1,492 9,039 108,585 Fund balances: Unreserved, reported in Special revenue funds 26,731 8,784 509 2,189,179 3,651,610 Total fund balances 26,731 8,784 509 2,189,179 3,651,610 Total liabilities and fund balances $ 26,731 8,784 9,548 2,297,764 3,651,610 - 78 - Traffic Justice Bicycle Used Safety State Proposition Assistance and Oil Grant Gas Tax 1B ARRA Grant Pedestrian 2,636 637,192 596,911 916 20,219 56,143 - 711,012 33,028 7,895 3,552 20,219 693,335 596,911 711,012 33,028 7.895 59,509 2,058 12,293 - 711,012 33,028 7,895 12,293 61.567 - 711,012 33,028 7,895 3.552 7.926 3,552 7,926 631,768 596,911 631,768 596,911 3,552 20,219 693,335 596,911 -79- 711,012 33,028 7.895 (Continued) CITY OF TEMPLE CITY Nonmajor Special Revenue Funds Combining Balance Sheet (Continued) Air Quality Traffic Improvement Sewer Congestion Congestion District Measure R Reconstruction EECBG Management Relief Assets Cash and investments Accounts receivable Due from other funds Due from other governments Loans receivable $ 23,492 227,023 611,056 20,014 348,429 10,870 9,000 89,885 Total assets $ 34,362 Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll Due to other funds Deferred revenue 227 023 611,056 9 000 20,014 438,314 9,000 Total liabilities 9,000 Fund balances: Unreserved, reported in Special revenue funds 34.362 227,023 611,056 20,014 438,314 Total fund balances (deficit) 34.362 227,023 611,056 20,014 438,314 Total liabilities and fund balances $ 34,362 227,023 611,056 9 000 20,014 438,314 - 80 - Lighting Low and 19921 1996 and Moderate 1996 Park State Asset Park Landscape Income Totals Park Bond Bond Recycling Seizure Acquisition District Housing 2010 2009 - - 729 63,808 1,273,296 658,006 10,438,295 9,799,021 - 27 352 352 5,000 68,017 325 1,031,044 325,536 - - 12,660 12,660 12,660 - - 5 000 729 63 808 1,341,313 671,343 11,482,351 10,137,244 - - 104,853 951 272,406 361,524 - - 7,702 11,252 13,441 - 2,433 - - 34,998 819,698 98,346 - - - 12,660 12,660 57,976 2,433 112,555 48,609 1,116,016 531,287 2,567 729 63,808 1,228,758 622,734 10,366,335 9,605,957 2,567 729 63,808 1,228,758 622,734 10,366,335 9.605,957 5 000 729 63,808 1,341,313 671,343 11,482,351 10,137,244 -81 - CITY OF TEMPLE CITY Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Public Public Traffic High Tech Transportation - Transportation - Safety Grant COPS Prop A Prop C Revenues: Taxes Intergovernmental Charges for services Fines Investment income Low income grant and loan repayments 96,777 Total revenues 96,777 Expenditures: Current: Community development Public safety Public works Community services Capital outlay Debt service: Principal Interest 100,000 453,984 376,599 168,879 244 14,588 22,364 100,244 637,451 398,963 734,565 Total expenditures - - 734,565 Excess (deficiency) of revenues over (under) expenditures 96,777 100,244 (97,114) 398,963 Other financing sources (uses): Transfers in - Transfers out (130116) (100,000) (16,333) Total other financing sources (uses) (130,116) (100,000) (16,333) Net change in fund balances (33,339) 244 (97,114) 382,630 Fund balances at beginning of year 60,070 8,784 265 2,286,293 3,268,980 Fund balances (deficit) at end of year $ 26,731 8,784 509 2,189,179 3,651,610 -82., Air Traffic Justice Bicycle Quality Used Safety State Proposition Assistance and Improvement Oil Grant Gas Tax 1B ARRA Grant Pedestrian District 20,219 579,593 711,012 33,028 7,895 40,476 58 - 2,400 3,854 - - 80 58 20.219 581,993 3,854 711,012 33,028 7,895 40,556 12,293 488,615 32,735 12293 488,615 32,735 58 7,926 93,378 3,854 711,012 33,028 7,895 7,821 (6,238) 122,339 (711,012) (33,028) (7,895) (6,238) 122,339 - (711,012) (33,028) (7,895) (6,180) 9, 732 3,552 7,926 215,717 3,854 - 7,821 416,051 593,057 - - 26,541 7.926 631,768 596,911 - 34,362 (Continued) - 83 - CITY OF TEMPLE CITY Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Traffic 1992/ Sewer Congestion Congestion 1996 Measure R Reconstruction EECBG Management Relief Park Bond Revenues: Taxes $ - - Intergovernmental 226,591 - 9,000 - 323,626 62,725 Charges for services 50,000 3,366 Fines - _ Investment income 432 - - 2,103 Low income grant and loan repayments - Total revenues 227,023 Expenditures: Current: Community development Public safety Public works Community services Capital outlay Debt service: Principal Interest 50,000 9,000 3,366 325,729 62,725 9,000 Total expenditures 9,000 Excess (deficiency) of revenues over (under) expenditures 227:023 50,000 - 3,366 325,729 62.725 Other financing sources (uses): Transfers in Transfers out - (191.580)_ (62,725) Total other financing sources (uses) - (191.580) (62,725) Net change in fund balances 227,023 50,000 3,366 134,149 Fund balances at beginning of year 561,056 16,648 304,165 Fund balances (deficit) at end of year $ 227.023 611,056 20,014 438,314 - 84 - Lighting Low and and Moderate 1996 State Asset Park Landscape Income Totals Park Bond Recycling Seizure Acquisition District Housing 2010 2009 162,205 162,205 227,613 45,316 5,000 29,173 3,024,237 2,023,554 17,000 999,163 1,238,408 1,306,468 96,777 111,478 7,468 4,365 57,956 180,871 3,979 45,316 5,000 17,000 1,035,804 166,570 4,579,583 3,853,963 1,894 10,894 500 12,293 939,120 1,427,735 1,331,081 285,160 1,019,725 1,095,765 32,735 134,129 59,000 59,000 57,000 64,944 64,944 67,257 1,894 939,120 409,104 2,627,326 2,685,732 45,316 3,106 17,000 96,684 (242,534) 1,952,257 1,168,231 732 123,071 103,616 (732) (25,941) (29,350) (1,314,950) (536,137) (732) (25,941) (28,618) (1,191,879) (432,521) 45,316 2,374 (8,941) 68,066 (242,534) 760,378 735,710 (45,316) 193 729 72,749 1,160,692 865,268 9,605.957 8,870,247 - 2,567 729 63 808 1,228,758 622,734 10,366.335 9,605,957 - 85 - CITY OF TEMPLE CITY Traffic Safety Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Fines $ 110,000 96,777 (13,223) 111,478 Total revenues 110,000 96,777 (13,223) 111,478 Other financing uses: Transfers out (134,500) (130,116) 4,384 (123,936) Net change in fund balances (24,500) (33,339) (8,839) (12,458) Fund balances at beginning of year 60,070 60,070 72,528 Fund balances at end of year $ 35,570 26,731 (8.839) 60,070 - 86 - CITY OF TEMPLE CITY Citizens Option for Public Safety (COPS) Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 100,000 100,000 Investment income 100 244 Total revenues Other financing uses: Transfers out 144 100,000 589 100,100 100,244 144 100,589 (100,000) (100,000) (103,000) Net change in fund balances 100 244 144 (2,411) Fund balances at beginning of year 265 265 - 2,676 Fund balances at end of year $ 365 509 144 265 - 87 - CITY OF TEMPLE CITY Public Transportation - Proposition A Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 525,000 453,984 (71,016) 514,974 Charges for services 201,000 168,879 (32,121) 175,787 Investment income 50,000 14,588 (35,412) 50,211 Total revenues 776,000 637,451 (138,549) 740,972 Expenditures: Current: Community services 791,505 734,565 56,940 746,356 Capital outlay - - 25,799 Total expenditures 791,505 734,565 56,940 772,155 Net change in fund balances (15,505) (97,114) (81,609) (31,183) Fund balances at beginning of year 2,286,293 2,286,293 - 2,317,476 Fund balances at end of year $ 2,270,788 2,189,179 (81,609) 2,286,293 - 88 - CITY OF TEMPLE CITY Public Transportation - Proposition C Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 460,000 376,599 (83,401) 427,958 Investment income 65,000 22,364 (42,636) 67,294 Total revenues 525,000 398,963 (126,037) 495,252 Other financing uses: Transfers out (258,400) (16,333) 242,067 (119,554) Net change in fund balances 266,600 382,630 116,030 375,698 Fund balances at beginning of year 3,268,980 3,268,980 2,893,282 Fund balances at end of year $ 3,535,580 3,651,610 116,030 3,268,980 - 89 - CITY OF TEMPLE CITY Used Oil Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 9,160 (9,160) 10,129 Investment income 100 58 (42) 166 Total revenues 9.260 58 (9,202) 10,295 Other financing uses: Transfers out (9,160) (6,238) 2,922 (7,085) Net change in fund balances 100 (6,180) (6,280) 3,210 Fund balances at beginning of year 9,732 9,732 6,522 Fund balances at end of year $ 9,832 3,552 (6,280) 9,732 - 90 - CITY OF TEMPLE CITY Traffic Safety Grant Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 10,000 20,219 10,219 10,000 Expenditures: Current: Public safety 10,000 12,293 (2,293) 128 Excess (deficiency) of revenues over (under) expenditures - 7,926 7,926 9,872 Other financing uses: Transfers out - (10,000) Net change in fund balances 7,926 7,926 Fund balances at beginning of year Fund balances at end of year $ - 7,926 7,926 -91 - CITY OF TEMPLE CITY State Gas Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 546,000 579,593 33,593 568,496 Investment income 2,500 2,400 (100) 3,746 Total revenues 548,500 581,993 33,493 572,242 Expenditures: Current: Public works 1,618,170 488,615 1,129,555 419,454 Excess (deficiency) of revenues over (under) expenditures (1069,670) 93,378 1,163,048 152,788 Other financing sources: Transfers in 992,560 122,339 (870,221) 102,988 Net change in fund balances (77,110) 215,717 292,827 255,776 Fund balances at beginning of year 416,051 416,051 160,275 Fund balances at end of year $ 338,941 631,768 292 827 416,051 - 92 - CITY OF TEMPLE CITY Proposition 1B Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Revenues: Intergovernmental Investment income Net change in fund balances Fund balances at beginning of year Fund balances at end of year Final Budget $ 530,760 3,800 Actual 3,854 Variance with Final Budget Positive (Negative) (530,760) 54 Prior Year Actual 12,568 534,560 3,854 (530,706) 593.057 593,057 12,568 580,489 $ 1,127,617 596,911 (530,706) 593,057 -93- CITY OF TEMPLE CITY American Recovery and Reinvestment Act Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 1,050,000 711,012 (338,988) Other financing uses: Transfers out (1,050,000) (711,012) 338,988 Net change in fund balances Fund balances at beginning of year Fund balances at end of year $ - 94 - CITY OF TEMPLE CITY Justice Assistance Grant Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 36,600 33,028 (3,572) Other financing uses: Transfers out - (33,028) (33,028) Net change in fund balances 36,600 (36,600) Fund balances at beginning of year Fund balances at end of year $ 36,600 - (36,600) - 95 - CITY OF TEMPLE CITY Bicycle and Pedestrian Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 32,700 7,895 (24,805) Other financing uses: Transfers out (32,700) (7,895) 24,805 Net change in fund balances Fund balances at beginning of year Fund balances at end of year $ - 96 - CITY OF TEMPLE CITY Air Quality Improvement District Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: intergovernmental $ 35,000 Investment income 50 Total revenues 40,476 80 35,050 40,556 5,476 41,607 30 64 5.506 41,671 Expenditures: Capital outlay 36,000 32,735 3,265 96,327 Total expenditures 36,000 32,735 3,265 96,327 Net change in fund balances (950) 7,821 8,771 (54,656) Fund balances at beginning of year 26.541 26,541 81,197 Fund balances at end of year $ 25,591 34,362 8,771 26,541 - 97 - CITY OF TEMPLE CITY Measure R Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 183,770 226,591 42,821 Investment income - 432 432 Total revenues 183,770 Expenditures: Capital outlay Net change in fund balances Fund balances at beginning of year Fund balances at end of year 183,770 183,770 227,023 43,253 227,023 43,253 227,023 43,253 - 98 - CITY OF TEMPLE CITY Sewer Reconstruction Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Charges for services $ 60,000 50,000 (10,000) 55,000 Total revenues 60,000 50,000 (10,000) 55,000 Excess (deficiency) of revenues over (under) expenditures 60,000 50,000 (10,000) 55,000 Other financing uses: Transfers out (300,000) - 300,000 (2,428) Total other financing uses (300,000) 300,000 (2,428) Net change in fund balances (240,000) 50,000 290,000 52,572 Fund balances at beginning of year 561,056 561,056 508,484 Fund balances at end of year $ 321,056 611,056 290,000 561,056 - 99 - CITY OF TEMPLE CITY Energy Efficient and Conservation Block Grant Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 9,000 9,000 Expenditures: Current: Community development - 9,000 (9,000) Net change in fund balances Fund balances at beginning of year Fund balances at end of year - 100 - CITY OF TEMPLE CITY Congestion Management Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Charges for services Other financing uses: Transfers out $ 3,000 3,366 366 2,618 Net change in fund balances 3,000 3,366 366 2,618 Fund balances at beginning of year 16,648 16,648 - 14,030 Fund balances at end of year $ 19,648 20,014 366 16,648 - 101 - CITY OF TEMPLE CITY Traffic Congestion Relief Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 335,000 323,626 (11,374) 302,050 Investment income 1,500 2,103 603 2,115 Total revenues 336,500 325,729 (10,771) 304,165 Other financing uses: Transfers out (890,355) (191,580) 698,775 Net change in fund balances (553,855) 134,149 688,004 304,165 Fund balances at beginning of year 304,165 304,165 Fund balances at end of year $ (249,690) 438,314 688,004 304,165 - 102 - CITY OF TEMPLE CITY 1992/1996 Park Bond Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental Other financing uses: Transfers out Net change in fund balances Fund balances at beginning of year Fund balances at end of year $ 62,700 62,725 25 62,725 (62,700) (62,725) (25) (62,725) $ - 103 - CITY OF TEMPLE CITY 1996 Park Bond Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 45,316 45,316 Other financing uses: Transfers out - - (45,316) Net change in fund balances 45,316 45,316 (45,316) Fund balances at beginning of year (45,316) (45,316) Fund balances at end of year $ - (45,316) - 104 - CITY OF TEMPLE CITY State Recycling Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Intergovernmental $ 9,200 5,000 (4,200) 9,366 Total revenues 9,200 5,000 (4,200) 9,366 Expenditures: Current: Community development 720 1,894 (1,174) 500 Capital outlay - - 10,303 Total expenditures 720 1.894 (1,174) 10,803 Excess (deficiency) of revenues over (under) expenditures 8,480 3,106 (5,374) (1,437) Other financing uses: Transfers out (830) (732) 98 (628) Net change in fund balances 7,650 2,374 (5,276) (2,065) Fund balances at beginning of year 193 193 2,258 Fund balances at end of year $ 7,843 2,567 (5,276) 193 - 105 - CITY OF TEMPLE CITY Park Acquisition Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Charges for services $ 16,000 17,000 1,000 14,500 Other financing uses: Transfers out (60,000) (25,941) 34,059 Net change in fund balances (44,000) (8,941) 35,059 14,500 Fund balances at beginning of year 72,749 72,749 - 58,249 Fund balances at end of year $ 28,749 63,808 35,059 72,749 - 106 - CITY OF TEMPLE CITY Lighting and Landscape District Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Revenues: Intergovernmental Charges for services Investment income Total revenues Expenditures: Current: Public works Capital outlay Total expenditures Excess of revenues over expenditures Other financing sources (uses): sources (uses): Transfers in Transfers out Total other financing uses Net change in fund balances Fund balances at beginning of year Fund balances at end of year Final Budget $ 58,345 1,010,000 15,000 Actual 29,173 999,163 7,468 Variance with Final Budget Positive (Negative) (29,172) (10,837) (7,532) Prior Year Actual 1,058, 563 22,355 1,083,345 1,035,804 (47,541) 1,080,918 935,805 939,120 (3,315) 911,627 1700 935,805 939,120 147,540 96,684 (3,315) 913,327 (50,856) 167,591 220,445 732 (219,713) (94,470) (29,350) 65,120 125,975 (28,618) (154,593) 273,515 628 (2,635) (2,007) 68,066 (205,449) 165,584 1,160,692 1,160,692 995,108 $ 1,434,207 1,228,758 (205,449) 1,160,692 -107- CITY OF TEMPLE CITY Low and Moderate Income Housing Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (Witih Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Taxes $ 178,000 162,205 (15,795) 186,006 Investment income 15,000 4,365 (10,635) 20,870 Low income grant and loan repayments - 3,979 Total revenues 193,000 166,570 (26,430) 210,855 Expenditures: Current: Community services 284,600 285,160 (560) 349,409 Debt service: Principal 59,000 59,000 57,000 Interest 66.310 64,944 1,366 67,257 Total expenditures 409,910 409,104 806 473,666 Net change in fund balances (216,910) (242,534) (25,624) (262,811) Fund balances at beginning of year 865,268 865,268 1,128,079 Fund balances at end of year $ 648,358 622,734 (25,624) 865,268 - 108 - CITY OF TEMPLE CITY CRA Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Revenues: Taxes Investment income Total revenues Expenditures: Current: Community services Debt service' Principal Interest Pass through payments SERAF payment to the State Total expenditures Net change in fund balances Fund balances (deficit) at beginning of year Fund balances (deficit) at end of year (3,314,129) (3,314,129) Final Budget Actual $ 712,000 648,819 1,500 673 Variance with Final Budget Positive (Negative) Prior Year Actual (63,181) 744,026 (827) 3,758 713,500 649,492 35,250 30,575 236,000 236,000 388,525 387,122 65,800 40,046 66.035 66,032 (64.008) 747,784 4,675 29,229 1,403 25,754 3 228,000 400,984 51,612 791,610 759,775 31,835 709,825 (78,110) (110,283) (32,173) 37,959 (3,352,088) $ (3,392,239) (3,424,412) (32,173) (3.314,129) - 109 - CITY OF TEMPLE CITY City -Wide Capital Improvements Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Expenditures: Current: Capital outlay Other financing sources: Transfers in $ 4,531385 2,066,693 2,464,692 1,582,093 3,877,135 2,066,693 (1,810,442) 1,582,093 Net change in fund balances (654,250) 654,250 Fund balances at beginning of year - Fund balances at end of year $ (654.250) 654,250 - 110 - CITY OF TEMPLE CITY CRA Capital Improvements Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Investment income $ 60,000 Other 1,000 Total revenues 40,699 (19,301) 61,264 1,000 1,000 61,000 41,699 (19,301) 62,264 Expenditures: Current: Community services 266,900 186,686 80,214 244,263 Debt service: Interest 4,000 357 3,643 3,040 SERAF payment to the State 264,130 264,128 2 - Total expenditures 535,030 451,171 83,859 247,303 Net change in fund balances (474,030) (409,472) 64,558 (185,039) Fund balances at beginning of year 2,729,324 2,729,324 2,914,363 Fund balances at end of year $ 2,255,294 2,319,852 64,558 2,729,324 - 111 - CITY OF TEMPLE CITY Camellia Trust Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2010 (With Comparative Totals for Year Ended June 30, 2009) Variance with Final Budget Prior Final Positive Year Budget Actual (Negative) Actual Revenues: Investment income Total revenues $ 2,500 2,910 410 3,502 2,500 2,910 410 3,502 Expenditures: Current: Community services 2,000 1,135 865 2,700 Total expenditures 2,000 1,135 865 2,700 Excess (deficiency) of revenues over (under) expenditures 500 1,775 1,275 802 Other financing sources: Transfers in 10,000 10,000 Net change in fund balances 500 11,775 11,275 802 Fund balances at beginning of year 170,931 170,931 - 170,129 Fund balances at end of year $ 171,431 182,706 11.275 170,931 - 112 - CITY OF TEMPLE CITY CRA TRUST FUND Statement of Changes in Fiduciary Assets and Liabilities Year Ended June 30, 2010 Balance at Balance at July 1, 2009 Additions Deletions June 30, 2010 Assets Cash and investments $ 2,882 - 120 2,762 Accounts receivable 7,199 120 - 7,319 Total assets $ 10.081 120 120 10.081 Liabilities Accounts payable $ 10,081 - 10,081 Total liabilities $ 10,081 10,081 -113- (This page intentionally left blank) - 114 -