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HomeMy Public PortalAbout12) 10A Comprehensive Annual Financial Report for year ended June 30, 2014 ocrCity Council December 16, 2014 Page 2 of 5 4 . On June 17, 2014, the City Council approved an amendment to the Consultant Services Agreement with Vasquez & Company, LLP, for a one year extension providing for auditing services for the period ending June 30, 2014. 5. On July 30, 2014, the Admin istrative Services Department received notice from the Government Finance Officers' Association (GFOA) that the City had received the Excellence in Financial Report Award program for the FY 2012-13 CAFR. 6 . On July 15, 2014, the City Council appointed an Audit Standing Committee (i.e., Steve Curran, CPA, Chairperson, Councilmember Yu, Vice Chairperson, and Mayor Pro-Tem Chavez) and adopted an Audit Standing Committee Charter. 7. On September 5, 2014, the Audit Standing Committee met with City staff and audit staff from Vasquez & Company, LLP, and reviewed the planned engagement for the independent audit for the Fiscal Year Ending June 30, 2014 . 8. On October 13, 2014, Vasquez & Company completed the Auditor's field work. 9. On October 31, 2014, the Audit Standing Committee once again met with City staff and audit staff from Vasquez & Company, LLP , and discussed the results of the Auditor's field work. 10. On December 5, 2014, the Audit Standing Committee met with City staff and audit staff from Vasquesz & Company, LLP, for a preliminary review of the final Draft of the CAFR. 11. On December 9, 2014, the Audit Standing Committee met with City staff for a final review of the final Draft of the CAFR and will recommend to the City Council that they receive and file the CAFR for the period ended June 30, 2014, at their regularly scheduled meeting on December 16, 2014 . ANALYSIS: A CAFR is a set of United States government financial statements compnstng the financial report of a state, municipal or other governmental entity that complies with the accounting requirements, Generally Accepted Accounting Principles (GAAP), created and circulated by the Governmental Accounting Standards Board (GASB). The CAFR accounting structure provides for standardization financial reporting. All levels of government including federa l, state, local and municipal, produce a CAFR to document an accurate picture of institutional funds, enterprise or financial holdings, assets and total investment incomes for those government and nongovernmental entities us ing the report. City Council December 16, 2014 Page 3 of 5 Beginning with FY 2010-11, the City moved from a bas ic financial statement presentation to the more transparent, CAFR reporting. Most governmental agencies utilize this type of reporting, providing for ease of comparing financ ial data from one agency to another. In addition, as a recipient of Federal grant funds in past years, the City has been required to be in compliance with the requirements of the Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. The process, to ensure that the City is in compliance with th is Circular, commonly known as the "Single Audit". For the FY 2013-14, the City did receive in excess of $500,000 in Federal grant monies, therefore requiring a Single Audit and corresponding reports . The reports are in the process of being completed. All Single Audits are due to the Federal reporting agencies nine months after the close of the fiscal year, (i.e., March 31, 2015). Once these reports are complete, staff will return to the Audit Standing Committee and the City Council for a recommendation of receive and file. Vasquez & Company, LLP, has issued an unmodified ("clean") op1n1on on the City financial statements for the year ended June 30, 2014. The City also provides a narrative introduction, overview and analysis of the CAFR in the form of Management's Discussion and Analysis (MD&A). It can be found immediately following the independent auditors' report . The City's net position increased by $2 .7 million from $67.8 at June 30, 2013, to $70.5 million as of June 30, 214, as a result of this year's operations. Total revenues from all sources was $20.1 million and the total cost of all City programs was $17.4 million. As of June 30, 2014, the City's governmental funds reported combined ending fund balances of $20.4 million, a decrease of $9.4 million over the prior fiscal year. This is primarily a result of the completion of the Rosemead Boulevard improvements and other one-time expenditures in the General Fund, i.e., purchase of the Primrose property, on-going expenses related to the General Plan and Zoning Code updates and Capital Outlays. Approximately $1.7 million of the $20.4 million balance is unassigned and is available for spending at the government's discretion. In keeping with the theme of a high performance organization, the staff will once again submit the FY 2013-14 CAFR to the Government Finance Officers Association (GFOA) for the Excellence in Financial Report Award. The GFOA recognizes i nnovative programs, contributions to the practice of government finance that exemplify outstanding financi al management. The award stresses practical, documented work that offers leadership to the profession and promotes improved public finance. For greater transparency and accountability the City Council appointed an Audit Standing Committee, making it directly respons ible for monitoring the work performed by the independent auditor. As outlined in the Audit Committee Charter, also adopted by the City Council, the responsibi lities of the Audit Standing Committee include: City Council December 16, 2014 Page 4 of 5 • Assisting the City Council in monitoring, overseeing, and assessing the City's: ~ Accounting and financial reporting processes; ~ The quality and integrity of the City's financial statements, including audits of the financial statements; ~ The qualifications, independence and performance of the independent auditor; ~ Compliance with applicable legal and regulatory financial accounting requirements; and ~ Management's ability to evaluate adequacy of internal controls and capably identify and control risks posed by its current and planned activities. Provide an avenue for communication among the independent auditors, City management and the City Council. The Committee shall also have such other duties as set forth in this charter and as directed by the City Council. As noted above, the Audit Standing Committee has met on a number of occasions throughout the Fall and has completed their due diligence as outlined in the Audit Standing Committee Charter and has brought forward their recommendation to this meeting. FISCAL IMPACT: This action of receiving and filing the CAFR does not have a fiscal impact on the FY 2014- 15 City Budget. However, staff has begun the mid-year budget analysis and will be incorporating the results of actual spending in the FY 2013-14, as reflected in the CAFR, in the FY 2014-15 Mid-Year Budget Report, which will be presented to the entire City Council on February 3, 2015. CONCLUSION: It is recommended that the City Council receive the recommendation from the Audit Committee from their meeting of December 9, 2014, to receive and file CAFR for the year ended June 30, 2014. City Council December 16, 2014 Page 5 of 5 ATTACHMENT: A. Comprehensive Annual Financial Report for the Year Ended June 30, 2014. CITY OF TEMPLE CITY CALIFORNIA Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2014 (This page intentionally left blank.) CITY OF TEMPLE CITY, CALIFORNIA Comprehensive Annual Financial Report Year Ended June 30, 2014 Prepared by: ADMINISTRATIVE SERVICES DEPARTMENT Tracey L. Hause Administrative Services Director (This page intentionally left blank.) City of Temple City Table of Contents PAGE INTRODUCTORY SECTION Letter of Transmittal i List of Elected Officials and Management Personnel vi Organizational Chart vii Certificate of Achievement for Excellence in Financial Reporting (GFOA) viii FINANCIAL SECTION Report of Independent Auditors 1 Management’s Discussion and Analysis 4 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 12 Statement of Activities 13 Fund Financial Statements Description of Major Funds 14 Balance Sheet 15 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 16 Statement of Revenues, Expenditures, and Changes in Fund Balances 17 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 18 Proprietary Fund Description of Proprietary Fund 19 Statement of Net Position 20 Statement of Revenues, Expenses, and Changes in Net Position 21 Statement of Cash Flows 22 Fiduciary Funds Description of Fiduciary Funds 23 Statement of Fiduciary Net Position 24 Statement of Changes in Fiduciary Net Position 25 Notes to Financial Statements 26 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule General Fund Capital Improvement Fund Permanent Fund Special Revenue Fund 55 59 60 61 Traffic Safety Fund 62 High Tech Grant Fund 63 COPS Fund 64 Public Transportation – Prop A Fund 65 Public Transportation – Prop C Fund 66 Used Oil Fund 67 City of Temple City Table of Contents PAGE State Gas Tax Fund 68 Asset Seizure Fund 69 CDBG Fund 70 Bicycle and Pedestrian Fund 71 Air Quality Improvement Fund 72 Measure R Fund 73 Parking Concession Fund 74 Affordable Housing Fund 75 Sewer Reconstruction Fund 76 Congestion Management Fund 77 HSIP Fund 78 Surface Transportation Local Program Fund 79 1992/1996 Park Bond Fund 80 State Recycling Fund 81 Tree Restoration Fund 82 Park Acquisition Fund 83 Lighting and Landscape District Fund 84 High Priority Legacy User Fund 85 Congestion Mitigation & Air Quality Fund 86 OPEB Fund 87 Public Art Fund 88 Bicycle Transportation Fund 89 Notes to Budgetary Comparison Schedule 90 Schedule of Funding Progress - California Public Employees Retirement System 91 Schedule of Funding Progress - Other Postemployment Benefits 92 SUPPLEMENTARY SCHEDULES Nonmajor Governmental Funds Combining Balance Sheet 93 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 94 Nonmajor Special Revenue Funds Description of Nonmajor Special Revenue Funds 95 Combining Balance Sheet 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 104 STATISTICAL SECTION Description of Statistical Section Contents 108 Financial Trends Net Position by Component - Last Ten Fiscal Years 109 Change in Net Position - Expenses and Program Revenues - Last Ten Fiscal Years 110 Fund Balances of Governmental Funds - Last Ten Fiscal Years 112 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 113 Revenue Capacity Assessed Value of Taxable Property - Last Ten Fiscal Years 115 Direct and Overlapping Government Property Tax Rates - Last Ten Fiscal Years 116 City of Temple City Table of Contents PAGE General Fund Revenues - Last Ten Fiscal Years 117 Principal Property Taxpayers - Current Fiscal Year and Nine Fiscal Years Ago 118 Top 25 Sales Tax Producers - Current Fiscal Year 119 Debt Capacity Direct and Overlapping Debt 120 Demographic and Economic Information Demographic and Economic Statistics - Last Ten Fiscal Years 121 Operating Information Construction Activity – Last Ten Fiscal Years 122 Full-Time Equivalent City Employees by Function - Last Ten Fiscal Years 123 Operating Indicators by Function - Last Ten Fiscal Years 124 (This page intentionally left blank.) 9701 LAS TUNAS DRIVE TEMPLE CITY CA 91780 (626) 285-2171 i June 10, 2014 To the Honorable City Council, The Comprehensive Annual Financial Report (CAFR) of the City of Temple City (“City”) for the year ended June 30, 2014, is hereby submitted as mandated by applicable State of California statues. These statues require that the City annually issue a report on its financial position and activity, and that an independent firm of certified public accountants audit this report. Responsibilities for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures rests with the City’s management. The information in this report is intended to present the reader with a comprehensive view of the City’s financial position and the results of its operations for the fiscal year ending June 30, 2014, along with additional disclosures and financial information designed to enable the reader to gain an understanding of the City’s financial activities. Vasquez & Company, LLP, Certified Public Accountants, have issued an unmodified (“clean”) opinion on the City’s financial statements for the year ended June 30, 2014. The independent auditor concluded, based upon the audit that the City’s financial statements for the fiscal year ended June 30, 2014 are fairly presented in conformity with generally accepted accounting principles (GAAP). The auditor’s report is presented as the first component of the financial section of this report. Generally accepted accounting principles also require that management provide a narrative introduction, overview and analysis of the basic financial statements in the form of Management’s discussion and analysis (MD&A). It can be found following the independent auditor’s report. PROFILE OF THE GOVERNMENT The City is centrally located in the west San Gabriel Valley approximately 13 miles east of downtown Los Angeles. The City was incorporated on May 25, 1960 under the general laws of the State of California. On April 16, 1971, the City adopted Resolution No. 71-1084 declaring it a charter city. The City is approximately 3.85 square miles and is surrounded by the cities of Arcadia, San Gabriel, El Monte, Rosemead and unincorporated portions of Los Angeles County. The 2010 U.S. Census Bureau indicates a total population of 35,558. The City is predominately a residential community with over 10,000 residential parcels. The City operates under the Council – Manager Form of government and contracts for many of its public services including law enforcement. LOCAL ECONOMY The City has weathered the current economic environment as a result of substantial reserves and a solid property tax base. The San Gabriel Valley has a varied residential, commercial and industrial base that adds to the stability of the unemployment rate. ii MAJOR ACCOMPLISHMENTS Toward sustaining high-performance, below is list of noteworthy accomplishments completed over the past fiscal year: Vision and Long-Range Planning  Continued developing the Strategic Plan prioritizing and program recommendations from recent planning studies.  Continued the General Plan process, which establishes both vision and policies to guide the physical development of Temple City through 2050.  Continued work on Zoning Code Updates; the final product will simplify language that makes the ordinance clear, concise and easy to use for property owners.  Public Art Commission established and is working on a program creating Art in Public Places .  Partnered with the County of Los Angeles to conduct library needs assessment.  Completion of 2014-21 Housing Element update.  Continuing strides in planning for and constructing bicycle infrastructure. Sound Fiscal Policy  Completed performance based budgeting, which aligns limited resources with community priorities to provide sound basis for long-term funding decisions.  Continued to receive unmodified (i.e., “clean”) audit findings on the City’s financial reporting via enhanced fiscal controls and checks and balances.  Recognition of excellence in financial reporting from Government Finance Officers Association of the United States and Canada.  Increases in investment returns against nation trend of flat interest rates. Public Health and Safety  Installed more than 100 ADA-compliant curb ramps to significantly improve pedestrian accessibility for those with limited mobility.  Raised grade from “F” to “A” for antismoking policies.  Continued emergency preparation and training for residents.  Continues successful Neighborhood Watch Program. iii Basic City Services  Implemented an Electronic Content Manage System. All City Council and Commission Resolutions, Ordinances and Meeting Minutes since the inception of the City, 1960, are now available to the public.  Building plan checks now completed in-house with shorter approval times. Quality of Life  Completion of a comprehensive Parks and Recreation Masterplan.  Completed and adopted a Tree Preservation and Protection Ordinance.  Introduced new recreational offerings to serve the growing Baby Boomer and Asian populations, and to keep programming regionally competitive.  Continued discussions of a public-private partnership that reinvents the Civic Center as a community destination through new and enhanced public facilities.  Saw sustained growth in property tax revenue, affirming effectiveness of the City and community’s collaborative approach to neighborhood enhancement.  Established Yard of the Quarter Awards to promote beautiful homes and gardens.  Offered Brush with Kindness programs, uniting neighbors through improvement projects.  Sponsorships secured to enhance Summer Concerts in the Park.  Celebrated 70 years of the Camellia Festival.  City continues to applaud and recognize volunteers for lending helping hands. Citizen Education/Communication  Continuation of Citizen’s Academy, a signature program that educates and engages community members on City Hall processes and platforms.  Updated the City’s Website for a more user friendly experience.  Improved public meetings page integrates multimedia functions.  Online agendas now linked to video of Council discussion, action Sustainable Infrastructure  Adopted pavement management study that assesses the condition of all city streets and programs annual funding for repairs.  Completed the $20 million Rosemead Boulevard Safety and Beautification Enhancement Project. iv  Renovation of City Council Chambers including technology upgrades.  Began improvements on bikeways and pedestrian facilities near 9 schools.  Began major improvements to aging sewer system.  Acquisition of two properties, to open more opportunities for added creative public uses. OTHER FINANCIAL INFOMRATION Internal Control Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. The internal control structure is designed to protect the City’s assets from loss, theft, or misuse and to ensure that adequate accounting data is compiled for the preparation of financial statements in conformity with GAAP. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements. Budgetary and Accounting System The City is required to adopt a budget for the following year before the end of each fiscal year. The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The City’s budgetary control is maintained at the individual departmental level and any change in the adopted appropriations by a department requires approval from the City Manager and/or City Council. AWARDS AMD ACKNOWLEDGEMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Report to the City of Temple City for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2013. This was the second year that Temple City has received this prestigious award. In order to be awarded a Certificate of Achievement, a report must be published that satisfies both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The City’s CAFR was prepared through combined efforts of City staff. Special recognition is due the Administrative Services Department staff for their effort to ensure timely and accurate reporting. I would also like to thank the City Council and the City Manager for their continued support and interest in planning and conducting the financial operations of the City in a responsible and progressive manner. v Sincerely, Tracey L. Hause Administrative Services Director vi City of Temple City, California List of Elected Officials and Management Personnel June 30, 2014 City Council Carl Blum, Mayor Tom Chavez, Mayor Pro Tempore Cynthia Sternquist, Councilmember Fernando Vizcarra, Councilmember Vincent Yu, Councilmember Administration and Department Heads Interim City Manager Donald E. Penman Administrative Services Director Tracey L. Hause Assistant to the City Manager/Economic Development Manager Brian S. Haworth City Clerk Peggy Kuo Community Development Director Michael D. Forbes Parks and Recreation Director Cathy Burroughs vii Organizational Chart Public Works / Maintenance Division Public Safety Division Planning / Building Division City Council Transportation & Public Safety Commission Public Arts Commission Management Services Department Administrative Services Department Community Development Department Parks and Recreation Department Parks and Recreation Commission City Attorney City Manager Planning Commission 1 REPORT OF INDEPENDENT AUDITORS The Honorable Mayor and the Members of the City Council City of Temple City, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Temple City, California (the City), as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the enti ty’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. (This page intentionally left blank.) 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Temple City, California, as of June 30, 2014, and the respective changes in financial position, and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4 through 11 and budgetary comparison information and funded progress for pension and other postemployment benefit plans on pages 55 through 64 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Temple City, California’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. (This page intentionally left blank.) 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 9, 2014, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Los Angeles, California December 9, 2014 (This page intentionally left blank.) City of Temple City Management’s Discussion and Analysis June 30, 2014 4 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, 2014. Readers are encouraged to consider the information presented here in conjunction with the accompanying basic financial statements. Financial Highlights Government-wide Financial Statements:  The City’s net position increased by $2.7 million from $67.8 million as of June 30, 2013, to $70.5 million as of June 30, 2014, as a result of this year’s operations;  The total revenue from all sources was $20.1 million;  The total cost of all City programs was $17.4 million; and  The City’s total debt increased by $876 thousand during the current fiscal year. The key factors in this increase are the net increase in Other Post Employment Benefits (OPEB) obligation of $924 thousand and the decrease in the compensated absences liability by $48 thousand. Fund Financial Statements:  As of June 30, 2014, the City’s governmental funds reported combined ending fund balances of $20.4 million, a decrease of $9.4 million over the prior fiscal year. Approximately $1.7 million of the $20.4 million balance is unassigned and is available for spending at the government’s discretion;  As of June 30, 2014, the total fund balance of the City’s General Fund was $18 million, a decrease of $3.4 million from the prior year level of $21.4 million; and  In the General Fund, expenditures exceeded revenues by $0.5 million, before other financing sources/uses. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Temple City’s basic financial statements. The City of Temple City’s Comprehensive Annual Financial Report (CAFR) is comprised of three components: Introduction, Financial Section and Statistical Section. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Temple City’s finances, in a manner similar to a private-sector business. The government-wide financial statements include not only the City, but also all legal entities for which the City is financially accountable, including the Successor Agency Private-Purpose Trust. The statement of net position presents information on all of the City of Temple City’s total assets and deferred outflows of resources and total liabilities and deferred inflows of resources, with the difference between the two reported as total net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing related to cash flows. Thus, revenues and City of Temple City Management’s Discussion and Analysis June 30, 2014 5 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. 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 two 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 General Fund and Capital Improvement Fund, both 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. Proprietary funds. The City maintains only one category of a proprietary fund, an internal service fund. The Self Insurance Fund accounts for goods and services related to insurance premiums by one department to other departments on a cost reimbursement basis. Agency funds. The City also maintains two Agency funds to account for assets held by the City as an agent for the Successor Agency and the resources held and administered by the City of Temple City in a fiduciary capacity acting as the Successor Agency to the former Temple City Redevelopment Agency. Notes to basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. City of Temple City Management’s Discussion and Analysis June 30, 2014 6 Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s budget comparison schedules for the General Fund and each major revenue fund and progress in funding its obligation to provide pension benefits to its employees. Government-wide Financial Analysis Our analysis focuses on the net position and changes in net position of the City’s governmental activities for the fiscal year ended June 30, 2014 and 2013. Net position. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. The City’s net position increased by $2.7 million during FY 2013-14, primarily as a result of the addition of Investment in Capital Assets, (i.e., Rosemead Boulevard Safety and Beautification Enhancement Project). The largest portion of the City’s net position is its investment in capital assets (e.g. land, infrastructure, building and equipment) representing 72.6% of its total net position. The City uses these capital assets to provide services to citizens; consequently these assets are not available for future spending. A portion of the City’s net position, $4.1 million or 5.8%, represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets of $15.3 million or 21.6% may be used to meet the government’s ongoing obligations to citizens and creditors. City of Temple City Condensed Statement of Net Position Increase 2014 2013 (Decrease) Current and other assets $ 25,012,243 $ 34,371,574 $ (9,359,331) Capital assets 51,168,623 38,038,920 13,129,703 Total assets 76,180,866 72,410,494 3,770,372 Deferred outflows of resources - - - Current and other liabilities 2,789,568 2,626,142 163,426 Long-term liabilities 2,849,816 1,969,632 880,184 Total liabilities 5,639,384 4,595,774 1,043,610 Deferred inflows of resources - - - Net position, investment in capital assets 51,168,623 38,038,920 13,129,703 Restricted 4,083,955 8,445,931 (4,361,976) Unrestricted 15,288,904 21,329,869 (6,040,965) Total net position $ 70,541,482 $ 67,814,720 $ 2,726,762 City of Temple City Management’s Discussion and Analysis June 30, 2014 7 Statement of Activities. Governmental activities increased the City’s net position by $2.7 million for fiscal year 2013-2014. The total revenue for the fiscal year is $20.1 million, which is an increase of $1.4 million from the prior year. The total expenses increased by $1.3 million to $17.4 million from the prior year total of $16.1 million. The following table presents the comparative revenue and expenditure data for fiscal years ended June 30, 2014 and 2013. City of Temple City Condensed Statement of Changes in Net Position Key elements of the significant revenues in fiscal year 2013-2014 are as follows:  Taxes are comprised of sales tax, property tax, franchise and transient occupancy taxes. Total taxes increased primarily because of a significant increase in property taxes.  During the year, the City continued to receive substantial grant funds from a federal agency to partially fund the improvements of Rosemead Boulevard.  Intergovernmental revenue, i.e., Motor Vehicle In-Lieu Tax from the State of California also realized an increase. Increase 2014 2013 (Decrease) Revenues Program revenues Charges for services $ 3,677,816 $ 3,914,981 $ (237,165) Operating contributions and grants 7,381,556 6,158,717 1,222,839 General revenues Taxes 5,113,739 4,924,493 189,246 Intergovernmental 3,483,825 3,317,759 166,066 Investment income 203,571 132,565 71,006 Other revenue 237,723 262,068 (24,345) Total revenues 20,098,230 18,710,583 1,387,647 Expenditures General government 3,512,190 3,769,018 (256,828) Community development 2,222,569 1,692,614 529,955 Public safety 5,718,966 5,122,868 596,098 Public works 2,970,264 2,520,925 449,339 Community services 2,947,479 2,990,670 (43,191) Total expenditures 17,371,468 16,096,095 1,275,373 Increase in net position 2,726,762 2,614,488 112,274 Net position, beginning of year 67,814,720 65,200,232 2,614,488 Net position, end of year $ 70,541,482 $ 67,814,720 $ 2,726,762 City of Temple City Management’s Discussion and Analysis June 30, 2014 8 Revenues by Source- Governmental Activities The following chart represents the cost of each of the City’s operations – general government, community development, public safety, public works, community services, and interest on long-term debt. Expenses of the governmental activities totaled $17.4 million, which is an increase of $1.3 million or 8% from the prior year. Most expenses of the various governmental activities increased during the year, which include community development ($530 thousand), public safety ($596 thousand), and public works ($449 thousand). General government decreased during the year ($256 thousand) as well as community services ($43 thousand). Charges for services, 18% Operating Contributions and Grants, 37% Taxes, 25% Intergovernmental 18% Investment income, 1% Other revenue, 1% General government 20% Community development 13% Public safety 33% Public works 17% Community services 17% Interest on long- term debt 0% City of Temple City Management’s Discussion and Analysis June 30, 2014 9 Financial Analysis of the City’s Funds The City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. This section provides an analysis and discussion of individual funds and fund types presented in the fund financial statements. Governmental Funds. The City of Temple City’s governmental funds reported a combined fund balance of $20.4 million at the end of the fiscal year. The capital improvement fund, as a result of the Rosemead Boulevard Safety and Beautification Enhancement Project, is now a major fund due to significant contributions and is reported as part of the Governmental fund balance. This fund is currently in a deficit Fund Balance position, as the City is waiting for reimbursement for Federal grants that funded a portion of this project. The General Fund’s fund balance decreased by $3.4 million during the FY 2013-2014. This is primarily as a result of the purchase of the Primrose property of $1.28 million and additional funding for the improvements of Rosemead Boulevard. The General Fund expenditures of $13.1 exceeded General Fund revenues of $12.6 million which provided for a deficiency of revenues over expenditures of $495 thousand. Further, after the net transfers out, primarily for capital projects, the General Fund realized a decrease in fund balance of $2.9 million. Primary revenue sources for this fund are sales tax, property tax and motor vehicle in lieu. The General Fund is responsible for general services of the City. This includes public safety, public works, community development, community services and administration. The largest expenditure is for public safety, which was $5.2 million for fiscal year 2013-2014. Proprietary Funds. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Proprietary Fund, assets exceeded liabilities by $448 thousand. This Fund accounts for insurance premium transactions. Since this fund has been declining without a dedicated revenue stream, management will be evaluating this fund’s activities during the FY 2014-15 City Budget process. General Fund Financial and Budgetary Highlights The General Fund is the chief operating fund of the City. The fund balance reported a decrease of $3.4 million at June 30, 2014. This is primarily as a result of the purchase of the Primrose property. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 18.5% of total General Fund expenditures, while total fund balance represents 117.2% of that same amount. Revenues: Actual revenue received was lower than the final budget by $261 thousand. Expenditures: Actual expenditures were lower than the final budget by $2.25 million largely due to operations and multi-year projects that have yet to be completed, i.e., the General Plan Update. Capital Assets and Debt Administration Capital Assets. As shown in the following table, as of June 30, 2014, the City of Temple City had $51 million invested in capital assets, including land, buildings, improvements, furniture and equipment, vehicles and infrastructure. See Note 7 for additional information. City of Temple City Management’s Discussion and Analysis June 30, 2014 10 Capital Assets at Year-End 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 made a new loan to the Agency. With the dissolution of the Temple City Community Redevelopment Agency and the Temple City Financing Authority, the long-term debt was transferred to the Private-Purpose Trust (see Note 15). The outstanding principal amount on the bonds of $5,605,000 is no longer considered an obligation of the City. Other Long-term liabilities. Other long-term liabilities of the City are comprised of compensated absences and net OPEB obligation. The net OPEB obligation pertains to unfunded annual required contributions accrued as of June 30, 2014. A summary of other long-term liabilities follows: Governmental Activities Land and land rights $13,614,730 Construction in progress 21,903,410 Buildings and improvements 14,228,577 Furniture and equipment 1,870,304 Vehicles 1,275,790 Infrastructure 13,394,398 Subtotal 66,287,209 Less Depreciation (15,118,586) Net total, capital assets $51,168,623 Outstanding Debt Governmental Activities Net OPEB Obligation $2,696,319 Compensated absences 153,497 Total $2,849,816 City of Temple City Management’s Discussion and Analysis June 30, 2014 11 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 Administrative Services Department, at the City of Temple City, 9701 Las Tunas Drive, Temple City, CA. 91780, (626) 285-2171. GOVERNMENT-WIDE FINANCIAL STATEMENTS (This page intentionally left blank.) City of Temple City Statement of Net Position June 30, 2014 See notes to financial statements. 12 Governmental Activities Cash and investments $ 20,774,814 Accounts receivable 550,969 Interest receivable 103 Due from Fiduciary Funds 36,719 Due from government agencies 1,100,025 Prepaid items 10,531 Loans receivable 1,414,655 Other investments 1,124,427 Capital assets: Capital assets, not being depreciated 35,518,140 Capital assets, being depreciated, net of accumulated depreciation 15,650,483 Total assets 76,180,866 DEFERRED OUTFLOWS OF RESOURCES - Accounts payable 2,226,642 Accrued payroll 263,325 Interest Payable 52,535 Refundable deposits 230,011 Unavailable revenue - Long-term liabilities: Portion due within one year: Compensated absences 17,055 Portion due beyond one year: Compensated absences 153,497 Net OPEB obligation 2,696,319 Total liabilities 5,639,384 DEFERRED INFLOWS OF RESOURCES - Net position, investment in capital assets 51,168,623 Restricted for: Education scholarships 172,534 Special revenue funds 3,911,421 Unrestricted 15,288,904 Total net position $ 70,541,482 LIABILITIES NET POSITION ASSETS City of Temple City Statement of Activities Year ended June 30, 2014 See notes to financial statements. 13 Charges Operating Capital Net for Contributions Contributions Governmental Expenses Services and Grants and Grants Activities Governmental Activities General government $ 3,512,190 $ 142,880 $ 141,216 $ - $ (3,228,094) Community development 2,222,569 1,424,955 2,279,234 - 1,481,620 Public safety 5,718,966 596,058 100,000 - (5,022,908) Public works 2,970,264 917,044 4,772,938 - 2,719,718 Community services 2,947,479 596,879 88,168 - (2,262,432) Total Governmental Activities $ 17,371,468 $ 3,677,816 $ 7,381,556 $ - $ (6,312,096) General revenues Taxes: Property taxes 2,597,549 Sales taxes 1,735,613 Transient occupancy taxes 46,849 Franchise taxes 562,535 Other taxes 171,193 Investment income 203,571 State motor vehicle in lieu 3,472,659 State revenue - other 11,166 Other revenue 237,723 9,038,858 2,726,762 Net position - beginning 67,814,720 Net position - ending $ 70,541,482 Total general revenues Program Revenues Change in net position FUND FINANCIAL STATEMENTS Governmental Fund Financial Statements Proprietary Fund Financial Statements Fiduciary Fund Financial Statements (This page intentionally left blank.) GOVERNMENTAL FUND FINANCIAL STATEMENTS (This page intentionally left blank.) City of Temple City Description of Major Funds June 30, 2014 14 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. Capital Improvement Fund The Capital Improvement Fund is used to account for funds received from the various special revenue funds to finance various capital improvements and projects. Nonmajor Governmental Funds Nonmajor governmental funds include the Special Revenue Funds and the Permanent Fund. Since total assets, liabilities, revenues or expenditures of these funds do not exceed 10% of total governmental funds, they do not meet the criteria to be classified as major funds. City of Temple City Governmental Funds Balance Sheet June 30, 2014 See notes to financial statements. 15 Capital Projects City-Wide Non-Major General Capital Governmental Fund Improvements Funds Total ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Assets Cash and investments $ 17,019,911 $ - $ 3,306,099 $ 20,326,010 Accounts receivable 239,006 - 311,963 550,969 Interest receivable - - 103 103 Due from other funds 1,975,213 - - 1,975,213 Due from fiduciary funds 36,719 - - 36,719 Due from other governments 389,451 - 710,574 1,100,025 Prepaid items 10,531 - - 10,531 Loans receivables 414,664 - 999,991 1,414,655 Other Investments - - 1,124,427 1,124,427 2,236,825 - - 2,236,825 Total assets 22,322,320 - 6,453,157 28,775,477 Deferred outflows of resources - - - - Total deferred outflows of resources - - - - Total assets and deferred outflows of resources $ 22,322,320 $ - $ 6,453,157 $ 28,775,477 Liabilities $ 1,109,654 $ 1,027,659 $ 89,328 $ 2,226,641 263,325 - - 263,325 Interest payable 52,535 - - 52,535 - 695,330 1,279,883 1,975,213 230,011 - - 230,011 Total liabilities 1,655,525 1,722,989 1,369,211 4,747,725 Deferred inflows of resources Unavailable revenue 2,661,280 - 999,991 3,661,271 Total deferred inflows of resources 2,661,280 - 999,991 3,661,271 Fund balances Prepaid items 10,531 - - 10,531 Restricted - - 4,083,955 4,083,955 Committed 3,500,000 - - 3,500,000 Assigned 12,769,580 - - 12,769,580 General funds 1,725,404 - - 1,725,404 Capital projects - (1,722,989) - (1,722,989) Total fund balances 18,005,515 (1,722,989) 4,083,955 20,366,481 Total liabilities, deferred inflows of resources and fund balances $22,322,320 $- $6,453,157 $28,775,477 Unassigned Refundable deposits Nonspendable RESOURCES AND FUND BALANCES Advances to Successor Agency LIABILITIES, DEFERRED INFLOWS OF Accounts payable Accrued payroll Due to other funds City of Temple City Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2014 See notes to financial statements. 16 Fund balance of governmental funds $20,366,481 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 35,518,140 Cost of capital assets, being depreciated 30,769,069 Accumulated depreciation (15,118,586) 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 (170,552) Net OPEB obligation (2,696,319) Unavailable revenue balances relating to certain loans receivable are not reported as liabilities in the Statement of Net Assets since revenue Statement of Activities.recognition is not based upon measurable and available criteria.3,661,271 Allowance for doubtful accounts that is not reported in the governmental fund financial statements (2,236,826) 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 services governmental activities of the City. 448,804 Net assets of governmental activities $70,541,482 (This page intentionally left blank.) City of Temple City Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances Year ended June 30, 2014 See notes to financial statements. 17 Capital Projects City-Wide Non-Major General Capital Governmental Fund Improvements Funds Total Revenues Taxes $ 5,113,739 $- $ 1,197,044 $ 6,310,783 Licenses and permits 1,434,610 - - 1,434,610 Intergovernmental 3,480,366 - 5,854,455 9,334,821 Charges for services 1,510,392 - 249,763 1,760,155 Fines 554,805 - 25,234 580,039 Investment income 203,571 - 139,675 343,246 Rental income 68,411 - - 68,411 Donations - - 2,000 2,000 Other 246,206 - 17,960 264,166 Total revenues 12,612,100 - 7,486,131 20,098,231 Current: General government 3,123,963 - 6,471 3,130,434 Community development 2,023,085 - 24,454 2,047,539 Public safety 5,213,419 - - 5,213,419 Public works 690,583 81,116 1,772,588 2,544,287 Community services 2,056,182 - 682,989 2,739,171 Capital outlay - 13,929,743 - 13,929,743 Total expenditures 13,107,232 14,010,859 2,486,502 29,604,593 Excess (deficiency) of revenues over expenditures (495,132) (14,010,859) 4,999,629 (9,506,362) Transfers in 382,530 12,287,870 371,301 13,041,701 Transfers out (3,308,945)- (9,732,756) (13,041,701) Net other financing sources (uses)(2,926,415) 12,287,870 (9,361,455) - Net change in fund balance (3,421,547) (1,722,989) (4,361,826) (9,506,362) Fund balance, beginning of year 21,427,062 - 8,445,781 29,872,843 Fund balance, end of year $ 18,005,515 $ (1,722,989) $ 4,083,955 $ 20,366,481 Expenditures Other financing sources (uses) 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, 2014 See notes to financial statements. 18 Net change in Fund Balances - total governmental funds before extraordinary items $ (9,506,362) 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 recourses expended, whereas net assets decreased by the amount of depreciation expenses charged for the year. Capital outlay 13,668,234 Depreciation expense (538,531) 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 of retirees and their eligible family members. Other post employment benefits (924,022) 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.48,708 Accrued but unpaid interest on loans is recorded as unavailable revenue in the governmental funds but is recognized as income in the Statement of Activities.79,862 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.(101,127) Change in net assets of governmental activities before extraordinary items $2,726,762 PROPRIETARY FUND FINANCIAL STATEMENTS (This page intentionally left blank.) City of Temple City Description of Proprietary Fund Year ended June 30, 2014 See notes to financial statements. 19 Internal Service Fund Self Insurance Fund To account for goods and services relating to insurance premiums provided by one department to other departments on a cost reimbursement basis. City of Temple City Statement of Net Position Proprietary Fund June 30, 2014 See notes to financial statements. 20 Self Insurance Internal Service Fund Totals ASSETS Cash and investments $448,804 Total assets 448,804 LIABILITIES Due to other governments - Total liabilities - NET ASSETS Unrestricted 448,804 Total net position $ 448,804 City of Temple City Statement of Revenues, Expenses, and Changes in Net Position Proprietary Fund Year ended June 30, 2014 See notes to financial statements. 21 Self Insurance Internal Service Fund Totals Operating revenues: Intergovernmental $45,958 Total operating revenues 45,958 Operating expenses: Insurance premiums 147,085 Total operating expenses 147,085 Change in net position (101,127) Net position at beginning of year 549,931 Net position at end of year $ 448,804 City of Temple City Statement of Cash Flows Proprietary Fund Year ended June 30, 2014 See notes to financial statements. 22 Self Insurance Internal Service Fund Totals Cash flows from operating activities: Cash payments to suppliers for goods and services $ (147,085) Cash received for operating activities 45,958 Net cash used in operating activities (101,127) Change in cash and cash equivalents (101,127) Cash and cash equivalents at beginning of year 549,931 Cash and cash equivalents at end of year $ 448,804 Operating loss reconciles with the net cash used in operating activities at June 30, 2014. Noncash transactions: There were no significant noncash investing, capital or financing activities during the year ended June 30, 2014. FIDUCIARY FUNDS FINANCIAL STATEMENTS (This page intentionally left blank.) City of Temple City Description of Fiduciary Funds Year ended June 30, 2014 See notes to financial statements 23 Agency Fund To account for maintenance fees held by the City as an agent for the Successor Agency. This fund was an agency fund of the former redevelopment agency. Successor Agency Private-purpose Trust Fund To account for the resources held and administered by the City of Temple City in a fiduciary capacity acting as the Successor Agency to the former Temple City Redevelopment Agency. City of Temple City Statement of Fiduciary Net Position June 30, 2014 See notes to financial statements 24 Successor Agency Private-purpose Agency Trust Fund ASSETS Cash and investments $ 1,666,571 $- Cash with fiscal agent 627,225 - Accounts receivable 43,726 15,827 Total assets 2,337,522 15,827 LIABILITIES Accounts payable 13,455 2,767 Interest payable 92,775 - Due to City of Temple City 23,659 13,060 Advances from the City of Temple City 3,703,805 - Refunding Revenue Bonds, Series 2005 5,605,000 - Total liabilities 9,438,694 $ 15,827 FIDUCIARY NET POSITION (DEFICIT) Net position (Deficit)$ (7,101,172) City of Temple City Statement of Changes in Fiduciary Net Position Successor Agency to the Former Temple City Community Redevelopment Agency Private-Purpose Trust Fund Year ended June 30, 2014 See notes to financial statements 25 Additions: Tax increment $ 713,584 Total additions 713,584 Deductions: Administration 30,003 Professional fees 13,991 Debt service: Interest expense 272,955 Total deductions 316,949 Change in net position 396,635 Fiduciary net position at beginning of year (7,497,807) Fiduciary net position at end of year $ (7,101,172) (This page intentionally left blank.) NOTES TO FINANCIAL STATEMENTS (This page intentionally left blank.) City of Temple City Notes to Financial Statements Year ended June 30, 2014 26 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of the Reporting Entity The City of Temple City was incorporated on May 25, 1960 under the general laws of the State of California. On April 16, 1971 the City adopted resolution number 71- 1084 declaring itself a charter city. The City operates under the Council - Manager form of government. The City provides the following services as authorized by its general laws: Public Safety, Highways and Streets, Health and Sanitation, Cultural and Park Facilities, Public Improvements, Planning, Recreation and General Administrative Services. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the name and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. All of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are reported with the interfund data of the primary government. The following organization is considered to be a component unit of the City: 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 to persons of low income in the City. Even though it is legally separated, it is reported as if it is part of the City because the City Council also serves as the governing board of the Housing Authority. No separate financial statements are issued for the Housing Authority. City of Temple City Notes to Financial Statements Year ended June 30, 2014 27 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 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 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. The 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, operating contributions and grants, 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 expenditures. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. City of Temple City Notes to Financial Statements Year ended June 30, 2014 28 NOTE 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 fund statements include financial information for fiduciary funds and similar component units. The Fiduciary Fund of the City primarily represents assets held by the City in a custodial capacity for other individuals or organizations. Governmental Funds In the fund financial statements, governmental funds and agency funds are presented using the modified-accrual basis of accounting. The revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City generally considers revenues available if they are collected within ninety days after the fiscal year-end. Significant revenues subject to accrual under the measurable and available criteria include property taxes, sales taxes and motor vehicle in-lieu. Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non-exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. City of Temple City Notes to Financial Statements Year ended June 30, 2014 29 NOTE 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 the 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 the balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing source rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. Proprietary Funds The City's Internal Service Fund is a proprietary fund. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position. City of Temple City Notes to Financial Statements Year ended June 30, 2014 30 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 another financing source. Amounts paid to reduce long-term indebtedness of the Internal Service Fund are reported as a reduction of the related liability, rather than as an expenditure. Fund Types The basic accounting and reporting entity is a "fund." A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts, recording resources, related liabilities, obligations, reserves and equities segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. The accounting records of the City are organized on the basis of the various fund types as follows: GOVERNMENTAL FUND TYPES General Fund The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. Expenditures of this fund include the general operating expenses and capital improvement costs which are not paid through other funds. Special Revenue Funds The Special Revenue Funds are used to account for proceeds of specific revenue sources that are restricted by law or administrative action for specific purposes. Debt Service Fund The Debt Service Fund is used to account for resources set aside for repayment of long-term debt. City of Temple City Notes to Financial Statements Year ended June 30, 2014 31 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Capital Projects Funds Capital Projects Funds are used to account for financial resources to be used for the acquisition, construction or improvement of major capital facilities and infrastructure. Permanent Fund The Permanent Fund is used to account for financial resources that are legally restricted to the extent that only earnings, and not principal, may be used to support the City or its citizenry. Major Funds 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.  Capital Improvement Fund – To account for funds received from various special revenue funds to finance capital improvements and projects. 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. The City’s Internal Service Fund is the Self Insurance Fund. FIDUCIARY FUND TYPE: Agency Fund The Agency Fund is used to account for assets that the City holds for others in an agency capacity. The Fund is custodial in nature (assets equal liabilities) and does not involve measurement of results of operations. This fund was an agency fund of the former Redevelopment Agency. Successor Agency Private-purpose Trust Fund This fund is used to report the assets, liabilities and activities of the Successor Agency to the Dissolved Temple City Community Redevelopment Agency. Unlike the limited reporting typically utilized for the Agency Fund, the Private-purpose Trust Fund reports a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. City of Temple City Notes to Financial Statements Year ended June 30, 2014 32 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. Loans Receivable Certain loans receivable are not expected to be collected within one year. These loans receivable are offset by unavailable revenue on the balance sheet of governmental funds. Cash and Investments Cash and investments are reported in the accompanying balance sheet at fair value, except for certain certificates of deposit that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance, except for interest income (associated with funds not legally required to receive pooled investment income) that has been assigned to and recorded as revenue of the general fund, as provided by California Government Code Section 53647. Cash Equivalents For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they do not present significant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City. Cash equivalents in the Permanent Fund include the fund's share in the cash and investments pool of the City and a certificate of deposit. Employee Leave Benefits Vacation time begins to accumulate as of the first day of employment to a maximum of 240 hours. Sick leave accumulates at the rate of 8 hours per month without limit. Employees are not entitled to compensation for accrued sick time upon separation from the City. City of Temple City Notes to Financial Statements Year ended June 30, 2014 33 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Claims and Judgments The City records a liability for material litigation, judgments, and claims (including incurred but not reported losses) when it is probable that an asset has been impaired or a material liability has been incurred prior to year end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. 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 value on the date received. Public domain (infrastructure) capital assets consist of streets, bridges, traffic signals, street lights, bus shelters and sewers. Generally, the City capitalizes capital asset purchases in excess of $500 for general capital assets, $50,000 for sewers (infrastructure) and $10,000 for all other infrastructure. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government-wide financial statements. Provision for depreciation 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 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, 2014 were due and payable in two installments on November 1 and February 1 and became delinquent on December 10th and April 10th, 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: March 1 Levy Date: July 1 Due Date: First Installment - November 1 Second Installment - February 1 Delinquent Date: First Installment - December 10 Second Installment - April 10 City of Temple City Notes to Financial Statements Year ended June 30, 2014 34 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Taxes are collected by Los Angeles County and are remitted to the City periodically. Dates and percentages are as follows: December 10 30% Advance January 16 Collection No. 1 April 10 10% Advance May 15 Collection No. 2 July 31 Collection No. 3 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. Fund Balances Government Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Government Fund-type Definitions, defines fund balance as the difference between the assets and liabilities reported in the City’s governmental funds. There are generally limitations on the purpose for which all or a portion of the resources of a governmental fund may be used. The force behind these limitations can vary significantly, depending upon their source. Consequently, the fund balance reported in the annual financial statements is categorized into five components whereby each component identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the fund can be spent. The five components of fund balance are as follows:  Nonspendable: Resources that are 1) not in spendable form, such as inventories, prepayments, long-term receivables, or non-financial assets held for resale, or 2) required to be maintained intact such as an endowment.  Restricted: Resources that are subject to externally enforceable legal restrictions; these restrictions would be either 1) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or 2) imposed by law through constitutional provisions or enabling legislation.  Committed: Resources that are constrained to specific purposes by formal action approved by the City Council, which is the City’s highest level of decision making authority. The formal action that is required to be taken to establish, modify, or rescind a fund balance is a resolution. The constraint remains binding unless removed in the same formal manner by the City Council. Council action to commit fund balance must occur within the fiscal reporting period while the amount committed may be determined subsequently. City of Temple City Notes to Financial Statements Year ended June 30, 2014 35 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)  Assigned: Resources that are constrained by the City’s intent to be used for specific purposes, but that are neither restricted nor committed. The City Council delegates the authority to assign fund balance to the City Manager for purposes of reporting in the annual financial statements, established by the governing body in the GASB 54 Fund Balance Policy resolution adopted and approved on May 15, 2012.  Unassigned: Within the General Fund, the residual resources, either positive or negative, in excess of what can be properly classified in one of the other four fund balance categories. Within all other governmental funds, the negative residual resources in excess of what can be properly classified as nonspendable, restricted, or committed. The City considers the restricted fund balances to have been spent when an expenditure is incurred for purposes for which both unrestricted and restricted fund balance is available. When expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, it is the policy of the City to reduce the committed amounts first, followed by assigned amounts, and then unassigned amounts. On June 17, 2014, the City reaffirmed the committed and assigned fund balance classifications for the General Fund for financial statement purposes at June 30, 2014, in accordance with the City’s adopted GASB 54 Fund Balance Policy, as follow: Committed $ 3,500,000 Assigned 12,769,580 Any remaining fund balance at the close of the fiscal year will be designated as Unassigned. Net Position The governmental and business-type activities in the government-wide financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted and unrestricted.  Net investment in capital assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance of this category.  Restricted net position – This category presents external restrictions imposed by creditors, grantors, contributors, laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.  Unrestricted net position – This category represents the City’s net position, which is not restricted for any project or other purpose. City of Temple City Notes to Financial Statements Year ended June 30, 2014 36 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Statement of Cash Flows For purposes of the statement of cash flows, cash equivalents are defined as investments with original maturities of 90 days or less, which are readily convertible to known amounts of cash and are not subject to significant changes in value from interest rate fluctuations. NOTE 2 CASH AND INVESTMENTS Cash and investments at June 30, 2014 are classified in the accompanying financial statements as follows: Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. Statement of Net Assets: Cash and investments $20,774,814 Fiduciary Fund: Cash and investments 1,666,571 Cash with fiscal agent 627,225 Total cash and investments $23,068,610 Cash on hand $2,100 Deposits with financial institutions 3,604,971 Investments 19,461,539 Total cash and investments $23,068,610 Cash and investments as of June 30, 2014 consist of the following: City of Temple City Notes to Financial Statements Year ended June 30, 2014 37 NOTE 2 CASH AND INVESTMENTS (CONTINUED) Investments Authorized by Debt Agreements Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by fiscal agent. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk. Authorized by Maximum Maximum Investment Types Investment Maximum Percentage Investment Authorized by State Law Policy Maturity* of Portfolio* In One Issuer* Local Agency Bonds Yes 5 years None None U.S. Treasury Obligations Yes 5 years None None U.S. Agency Securities Yes 5 years None None State of California Obligation Yes 5 years None None Local Agency Obligation Yes 5 years None None Banker’s Acceptances*Yes 180 days 40%Fed Reserve Eligible Commercial Paper**Yes 270 days 25%A1/P1 Rating Certificates of Deposit Yes 5 years 30%None Repurchase Agreements Yes 1 year None None Reverse Repurchase Agreements*** Yes 92 days 20% of base value None Medium-Term Notes Yes 5 years 30%A Rating Mutual Funds****Yes N/A 20%Multiple Money Market Mutual Funds Yes N/A 20%Multiple Collateralized Bank Deposits Yes 5 years None None Mortgage Pass-Through Securities Yes 5 years 20%AA Rating County Pooled Investment Funds Yes N/A None None Local Agency Investment Fund (LAIF) Yes N/A None None Time Deposits Yes 5 years None None **** No more than 10% of an agency's surplus funds may be invested in any one mutual fund *Based on state law requirements or investment policy requirements, whichever is more restrictive. N/A - Not applicable ** Commercial paper issuers must be U.S. Corporations with $500 million plus in assets. Purchases may not represent more than 10% of outstanding paper of an issuing corporation *** Reverse Repurchase Agreements must be made with primary dealers of the Federal Reserve Bank of New York and the securities used for the agreements must have been held by the issuer for at least 30 days * No more than 30% of surplus funds may be invested in Bankers Acceptance of any one commercial banks City of Temple City Notes to Financial Statements Year ended June 30, 2014 38 NOTE 2 CASH AND INVESTMENTS (CONTINUED) Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter-term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Maximum Maximum Maximum Percentage Investment Authorized Investment Type Maturity of Portfolio In One Issuer Local Agency Bonds 5 years None None U.S. Treasury Obligations 5 years None None U.S. Agency Securities 5 years None None Banker’s Acceptances 1 year None None Commercial Paper 1 year 25% 10% Certificates of Deposit 1 year 30%None Repurchase Agreements 30 days None None Money Market Mutual Funds N/A 20% 10% Local Agency Investment Fund (LAIF) N/A None None Investment Agreements N/A None None Time Deposits 5 years None None 12 Months or 12 to 60 Total Less Months State Investment Pool (LAIF)$ 1,747,355 $ 1,747,355 $- Los Angeles County Investment Pool 3,500,000 3,500,000 - U.S. Agency Securities 8,174,722 - 8,174,722 Certificates of Deposit 5,412,016 1,046,074 4,365,942 Money Market Funds 627,446 627,446 - Total $ 19,461,539 $ 6,920,875 $ 12,540,664 Remaining Maturing (in Months) Investment Type City of Temple City Notes to Financial Statements Year ended June 30, 2014 39 Minimum Legal Not Amount Rating AAA/AA+AA-Rated State Investment Pool (LAIF) $ 1,747,355 N/A $ - $- $ 1,747,355 Los Angeles County Investment Pool 3,500,000 N/A - - 3,500,000 U.S. Agency Securities 8,174,722 A 7,075,902 1,098,820 - Certificates of Deposit 5,412,016 N/A - - 5,412,016 Money Market Funds 627,446 N/A - - 627,446 Total $ 19,461,539 $ 7,075,902 $1,098,820 $ 11,286,817 Investment Type Rating as of June 30, 2014 NOTE 2 CASH AND INVESTMENTS (CONTINUED) Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating, as reported by Standard & Poor’s, as of year-end for each investment type: 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, 2014, 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 District deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. City of Temple City Notes to Financial Statements Year ended June 30, 2014 40 NOTE 2 CASH AND INVESTMENTS (CONTINUED) 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 and County 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. The City also has an investment in the Los Angeles County Pooled Investment Fund under the supervision of the County of Los Angeles Treasurer and Tax Collector. NOTE 3 INTERFUND RECEIVABLES AND PAYABLES Current interfund receivables and payables balances at June 30, 2014 are as follows: Payable Fund Amount General Fund Nonmajor Governmental Funds $ 1,975,213 (a) General Fund Agency Fund 13,060 General Fund Successor Agency Private-Purpose 23,659 Trust Fund Total $ 2,011,932 (a) As of June 30, 2014, the nonmajor governmental funds owed $1,975,213 to the General Fund. This interfund advance was to fund temporary cash deficits. Receivable Fund City of Temple City Notes to Financial Statements Year ended June 30, 2014 41 NOTE 4 INTERFUND ADVANCES Noncurrent interfund advances at June 30, 2014 are as follows: In 1998, the City General Fund made a loan to the former Redevelopment Agency of the City. The loan included both new funding and the amendment and restatement of previous loans from the City to the former Redevelopment Agency. The total principal amount owed to the City was $1,466,980. In June 2011, Assembly Bill 26 (1st extraordinary session) dissolved the former Agency, effective February 1, 2012. On April 26, 2013, the Department of Finance allowed the loan to be placed on the Recognized Obligation Payment Schedule (ROPS) of the Successor Agency to the former Redevelopment Agency as an enforceable obligation. However, loan repayment depends on the availability of excess property tax increment. Because of the uncertainty as to when the former Redevelopment Agency will have excess property tax distribution to pay for the loan, the full amount of the loan including $2,236,825 of accrued interest has been reserved as potentially uncollectible as of June 30, 2014 in the government-wide financial statements. NOTE 5 INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2014 are as follows: The City transfers monies from various funds to its City-wide Capital Improvement Fund and the General Fund for the payment of certain capital projects such as the Rosemead Boulevard Safety Enhancements and Beautification Project and reimbursement of administrative expenses. Payable Fund Amount Successor Agency Fund $ 3,703,805 Receivable Fund General Fund Capital Projects City-Wide Non-Major General Capital Governmental Fund Improvements Funds Total General Fund $ - $ - $382,530 $382,530 Capital Improvement Fund 3,060,512 - 9,227,358 12,287,870 Nonmajor Governmental Funds 248,433 - 122,868 371,301 Total $ 3,308,945 $- $9,732,756 $13,041,701 Transfers In Transfers Out City of Temple City Notes to Financial Statements Year ended June 30, 2014 42 NOTE 6 LOANS RECEIVABLE Loans receivable consist of the following at June 30, 2014: (a) In August 2003, the City entered into a loan agreement with Calabee's, Inc, for up to $1,105,000 in order to facilitate the construction and operation of a certain restaurant located within the City. Interest accrues on the loan at a rate of 4.50% per year from the final disbursement date until the first payment date. The loan is payable in 132 months (11 years). Payment of the loan principal and interest, which is due monthly, commenced on the thirteenth month after the restaurant's opening date. The outstanding balance of the loan as of June 30, 2014 is $353,289. (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 $25,000 with 3% interest. Loan repayment is deferred until the home is sold or changes title. Amount General Fund: Calabee's, Inc.$ 353,289 (a) Low and Moderate Income Housing 56,775 Temple City Chamber of Commerce 4,600 414,664 Community Development Block Grant: Home improvement loans 999,991 (b) Total $ 1,414,655 Description City of Temple City Notes to Financial Statements Year ended June 30, 2014 43 NOTE 7 CAPITAL ASSETS Capital assets activity for the year ended June 30, 2014 was as follows: Depreciation expense is charged to operations, as follows: Balance Balance July 1, 2013 Additions Deletions June 30, 2014 Capital assets, not being depreciated: Land $3,268,952 $147,156 $106,732 $3,309,376 Land improvements 1,839,413 - - 1,839,413 Construction in progress 10,630,364 11,427,086 154,040 21,903,410 Infrastructure:- Land rights relating to streets 8,465,941 - - 8,465,941 Total capital assets, not being depreciated 24,204,670 11,574,242 260,772 35,518,140 Capital assets, being depreciated: Buildings 7,324,749 1,468,982 - 8,793,731 Improvements 5,329,647 105,199 - 5,434,846 Furniture, fixtures and equipment 1,633,128 311,207 74,031 1,870,304 Vehicles 1,277,161 - 1,371 1,275,790 Infrastructure: Streets 10,701,223 544,778 - 11,246,001 Traffic signals 1,190,394 - - 1,190,394 Bridges 958,003 - - 958,003 Total capital assets, being depreciated 28,414,305 2,430,166 75,402 30,769,069 Less accumulated depreciation for: Buildings 1,859,877 187,390 - 2,047,267 Improvements 2,053,636 59,750 - 2,113,386 Furniture, fixtures and equipment 1,361,388 102,427 - 1,463,815 Vehicles 1,124,175 40,613 - 1,164,788 Infrastructure: Streets 6,076,530 137,777 - 6,214,307 Traffic signals 1,146,446 10,574 - 1,157,020 Bridges 958,003 - - 958,003 Total accumulated depreciation 14,580,055 538,531 - 15,118,586 Net capital assets being depreciated 13,834,250 1,891,635 75,402 15,650,483 Governmental activities capital assets, net $38,038,920 $13,465,877 $336,174 $51,168,623 General Government $118,117 Community Development 20,547 Public Safety 202,850 Public Works 37,530 Community Services 159,487 Total $538,531 City of Temple City Notes to Financial Statements Year ended June 30, 2014 44 NOTE 8 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources consisted of the following unavailable revenue as of June 30, 2014: NOTE 9 LONG-TERM LIABILITIES Changes in long-term liabilities for the year ended June 30, 2014 were as follows: Other Postemployment Benefit Obligation Refer to Note 12 for related disclosures regarding other postemployment benefits. The liability is primarily liquidated from the general fund. Compensated Absences Payable The outstanding balance of compensated absences payable at June 30, 2014 was $170,553. The liability is primarily liquidated from the general fund. General CDBG Fund Fund Total Amounts associated with long-term loans or advances: Accrued interest portion of City's advances to the Successor Agency $ 2,246,616 $- $2,246,616 Noncurrent loans receivable 414,664 999,991 1,414,655 $2,661,280 $999,991 $3,661,271 Amount Due Amount Balance at Balance at Within One Due After July 1, 2013 Additions Retirements June 30, 2014 Year One Year Net OPEB Obligation $ 1,772,297 $ 1,080,000 $ (155,978) $ 2,696,319 $ - $ 2,696,319 Compensated Absences 219,261 16,146 (64,855) 170,552 17,055 153,497 $ 1,991,558 $ 1,096,146 $ (220,833) $ 2,866,871 $ 17,055 $ 2,849,816 City of Temple City Notes to Financial Statements Year ended June 30, 2014 45 NOTE 10 DEFINED BENEFIT PENSION PLAN (PERS) Plan Description The City of Temple City contributes to the California Public Employees Retirement System (PERS), a cost-sharing multiple-employer public employee defined benefit pension plan. PERS provides retirement, disability benefits, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. PERS issues a publicly available financial report that includes financial statements and required supplementary information for the cost sharing plans that are administered by PERS. Copies of PERS' annual financial report may be obtained from its executive office at 400 P Street, Sacramento, California 95814. Funding Policy Miscellaneous participants are required to contribute 7% of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. In December 2011, the City adopted (a) Resolution No. 11-4781, a Resolution of the City Council of the City of Temple City reducing the amount of employer paid member contribution to the PERS for full-time employees hired before January 1, 2012 by one percent (1%) and (b) Resolution No. 11-4782, a Resolution of the City Council of the City of Temple City eliminating payment of employer paid member contributions to PERS for employees hired on or after January 1, 2012. The City has contributed at the actuarially determined rate provided by PERS' actuaries. Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual required contribution (ARC) plus an adjustment for the cumulative difference between the APC and the employer's actual plan contributions for the year. The cumulative difference is called the net pension obligation (NPO). The ARC for the period July 1, 2013 to June 30, 2014 has been determined by an actuarial valuation of the plan as of June 30, 2012. The employer contribution rate for the years ended June 30, 2014, 2013 and 2012 was 15.58%, 14.82% and 14.20% for miscellaneous employees, respectively. Benefit provisions and all other requirements are established by state statute. Annual Pension Cost For the years ended June 30, 2014, 2013 and 2012, the City's annual pension cost (employer contribution) of $562,468, $586,597, and $499,771 for miscellaneous employees was equal to the City's required and actual contributions, respectively. The annual required contribution (ARC) for the period July 1, 2013 to June 30, 2014 has been determined by the actuarial valuation of the plan as of June 30, 2012. City of Temple City Notes to Financial Statements Year ended June 30, 2014 46 NOTE 10 DEFINED BENEFIT PENSION PLAN (PERS) (CONTINUED) A summary of principal assumptions and methods used to determine the ARC is shown below: Valuation Date: June 30, 2013 Actuarial Cost Method: Entry Age Normal Cost Method Amortization Method: Level Percent of Payroll Asset Valuation Method: Market Value Actuarial Assumptions: Investment Rate of Return: 7.50% (net of administrative expenses) Projected Salary Increases: 3.30% to 14.20% depending on Age, Service, and type of employment Inflation: 2.75% (compounded annually) Payroll Growth: 3.00% Individual Salary Growth: A merit scale varying by duration of employment coupled with an assumed annual inflation growth of 2.75% and an annual production growth of 0.25% Initial unfunded liabilities are amortized over a closed period that depends on the plan’s date of entry into CalPERS. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized over a 30 year rolling period. If the plan’s accrued liability exceeds the actuarial value of plan assets, the annual contribution with respect to the total unfunded liability may not be less than the amount produced by a 30-year amortization of the unfunded liability. NOTE 11 LIABILITY, PROPERTY AND WORKERS’ COMPENSATION PROTECTION Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 119 California public entities and is organized under a joint powers agreement pursuant to California Government Code 6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The Authority 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. City of Temple City Notes to Financial Statements Year ended June 30, 2014 47 NOTE 11 LIABILITY, PROPERTY AND WORKERS’ COMPENSATION PROTECTION (CONTINUED) Self-Insurance Programs of the Authority Each member pays an annual contribution to cover estimated losses for the coverage period. This initial funding is paid at the beginning of the coverage period. After the close of the coverage period, outstanding claims are valued. A retrospective deposit computation is then conducted annually thereafter until all claims incurred during the coverage period are closed on a pool-wide basis. This subsequent cost re-allocation among members based on actual claim development can result in adjustments of either refunds or additional deposits required. The total funding requirement for self-insurance programs is estimated using actuarial models and pre-funded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional information regarding the cost allocation methodology is provided below. Liability. In the liability program, claims are pooled separately between police and non-police exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs in excess of $750,000 up to the reinsurance attachment point of $5 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $5 million to $10 million are paid under a reinsurance contract subject to a $2.5 million annual aggregate deductible. The $2.5 million annual aggregate deductible is fully covered under a separate policy; as such no portion of it is retained by the Authority. Costs of covered claims from $10 million to $15 million are paid under two reinsurance contracts subject to a combined $3 million annual aggregate deductible. The $3.0 million annual aggregate deductible is fully retained by the Authority. (6) Costs of covered claims from $15 million up to $20 million are paid under reinsurance agreements. (7) Costs of covered claims from $20 million to $50 million are paid under excess insurance policies. The overall coverage limit for each member including all layers of coverage is $50 million per occurrence. Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a pooled sub-limit of $30 million per occurrence. This $30 million subsidence sub-limit is composed of (a) $5 million retained within the pool’s SIR, (b) $15 million in reinsurance, subject to the same annual aggregate deductibles previously stated, and (c) $10 million in excess insurance. The excess insurance layer has a $10 million annual aggregate limit. City of Temple City Notes to Financial Statements Year ended June 30, 2014 48 NOTE 11 LIABILITY, PROPERTY AND WORKERS’ COMPENSATION PROTECTION (CONTINUED) Workers’ Compensation. In the workers’ compensation program, claims are pooled separately between public safety (police and fire) and non-public safety exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of $2 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a reinsurance policy. Protection is provided per statutory liability under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members. Purchased Insurance Pollution Legal Liability Insurance. The City participates in the pollution legal liability insurance program (formerly called environmental insurance) which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $50,000 deductible. The Authority has a limit of $50 million for the 3-year period from July 1, 2011 through July 1, 2014. Each member of the Authority has a $10 million sub-limit during the 3-year term of the policy. 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 property currently has all-risk property insurance protection in the amount of $14,040,460. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retrospective adjustments. City of Temple City Notes to Financial Statements Year ended June 30, 2014 49 NOTE 11 LIABILITY, PROPERTY AND WORKERS’ COMPENSATION PROTECTION (CONTINUED) 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 property currently has earthquake protection in the amount of $9,754,348. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. Premiums for the coverage are paid annually and are not subject to retrospective adjustments. Crime Insurance. The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retrospective adjustments. Special Event Tenant User Liability Insurance. The City further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays for the insurance. The insurance is arranged by the Authority. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage i n fiscal year 2013-14. NOTE 12 OTHER POSTEMPLOYMENT BENEFIT PLAN Employees who retire from the City are eligible to receive health care benefits covering themselves and any qualified family members. The City pays 100% of the cost of the medical insurance premiums of the retired employees and one-half of the cost of the medical insurance premiums of their family members. The City also pays 100% of the cost of dental and vision insurance premiums of the retired employees. Expenditures for post-retirement health care benefits for fiscal year 2014 amounted to $155,978 which included 27 participants. City of Temple City Notes to Financial Statements Year ended June 30, 2014 50 NOTE 12 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) The City’s annual Other Postemployment Benefits (OPEB) cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2012, 2013 and 2014 were: (1) The City had an actuarial report prepared by Bartel Associates, LLC dated October 31, 2011 with a valuation date of June 30, 2011. The results of the report concluded a change in the City’s annual required contribution amount starting at zero-based pre-funding or no OPEB accrued liability as of July 1, 2010. City's Funding Policy The plan provisions and contribution requirements of plan members and the City are established and may be amended by the City Council. The contribution required to be made under City Council requirements is based on a pay-as-you-go basis (i.e., as premiums become due). On September 4, 2012, the City adopted Resolution No. 12-4845 authorizing participation in the Public Agency Retirement Services Post-Retirement Health Care Plan Trust Program and pre-funding of $1.0 million to the Trust. 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. Percentage of Fiscal Year Annual Contribution Annual OPEB Cost Net OPEB Ended OPEB Cost Made Contributed Obligation 6/30/2012 (1)$1,080,000 $153,349 14.20%$1,851,623 6/30/2013 (1)1,080,000 1,159,326 107.35% 1,772,297 6/30/2014 (1)1,080,000 155,978 14.44% 2,696,319 City of Temple City Notes to Financial Statements Year ended June 30, 2014 51 NOTE 12 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) 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: 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, presented in the required supplementary information section, 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 value of assets, consistent with the long-term perspective of the calculations. The actuarial cost method used for determining the benefit obligations is the Entry Age Normal Cost Method. The actuarial assumptions included a 4 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 for Non-Medicare and 9.4 percent for Medicare initially, reduced by decrements of 0.5 percent to 0.6 percent per year to an ultimate rate of 5 percent after the eight year. The UAAL is being amortized over a maximum 30-year combined period using a level-percent of payroll. It is assumed the City's payroll will increase 3.25% per year and merit increases are based on the CalPERS 1997-2007 Experience Study. Annual required contribution $ 1,080,000 Interest on net OPEB obligation 133,509 Adjustment to annual required contribution (133,509) Annual OPEB cost 1,080,000 Contribution made (155,978) Decrease in net OPEB obligation 924,022 Net OPEB obligation, beginning of year 1,772,297 Net OPEB obligation, end of year $ 2,696,319 City of Temple City Notes to Financial Statements Year ended June 30, 2014 52 NOTE 12 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) Refer to Required Supplementary Information Section for the Plan’s Schedule of Funding Progress. NOTE 13 NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) PRONOUNCEMENTS ISSUED, NOT YET EFFECTIVE The Governmental Accounting Standards Board (GASB) has issued several pronouncements prior to June 30, 2014, that have effective dates that may impact future financial presentations. Management has not yet determined any impact the implementation of the following statements may have on the financial statements of the City. GASB No. 68 - GASB has issued Statement No. 68, Accounting and Financial Reporting for Pensions-an Amendment of GASB Statement No. 27. The requirements of this Statement are intended to improve the decision-usefulness of information in employer and governmental nonemployer contributing entity financial reports and enhance its value for assessing accountability and interperiod equity by requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense. Note disclosures and required supplementary information will be expanded. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2014. GASB No. 69 - GASB has issued Statement No. 69, Government Combinations and Disposals of Government Operations. This Statement establishes accounting and financial reporting standards related government combinations and disposals of government operations. As used in this Statement, the term government combinations include a variety of transactions referred to as mergers, acquisitions, and transfers of operations. This Statement requires disclosures to be made about government combinations and disposals of government operations to enable financial statement users to evaluate the nature and financial effects of those transactions. The provisions of this Statement are effective for financial statements for periods beginning after December 15, 2013. NOTE 14 CONTINGENT LIABILITIES The City is a defendant in various litigations 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. City of Temple City Notes to Financial Statements Year ended June 30, 2014 53 NOTE 15 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY The accompanying financial statements also include the Private-purpose Trust Fund for the Successor Agency to the City’s former Redevelopment Agency (Successor Agency). The City, as the Successor Agency, serves in a fiduciary capacity, as custodian for the assets and to wind down the affairs of the former Redevelopment Agency. Its assets are held in trust for the benefit of the taxing entities within the former Redevelopment Agency’s boundaries and as such, are not available for the use of the City. Disclosures related to the certain assets and long-term liabilities of the Successor Agency are as follows: Agency’s Advance to the General Fund As of June 30, 2014, the Successor Agency owes the City General Fund $3,703,805 for advances made by the City General Fund to the former redevelopment agency to support the redevelopment activities. For more information, refer to Note 4. Information about the Outstanding Bonds of the Successor Agency Trust Fund REFUNDING REVENUE BONDS, SERIES 2005 In September 2005, the former Temple City Community Redevelopment Agency (Agency) issued $5,780,000 of Serial Bonds and $2,220,000 of Term Bonds for a total amount of $8,000,000 to be paid from future tax increment revenues. The Series 2005 bonds were issued to refund $3,600,000 of outstanding Temple City Financing Authority (Authority) 1993 Revenue Bonds and to provide the Agency with additional funds for redevelopment activities. Interest is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2006. Interest rates range from 3.0% to 4.9% on the serial bonds and 4.875% on the term bonds in amounts ranging from $240,000 to $495,000. The bonds maturing on or after September 1, 2015 are subject to redemption prior to maturity in whole or in part at the option of the Agency in amount of 100% of the principal amount. The Term Bonds maturing on September 1, 2025 will be subject to mandatory redemption, on September 1, 2022 and each September 1 thereafter at a redemption price equal to the principal amount thereof together with accrued interest thereon to the redemption date without premium. Under terms of the issue, a minimum of $627,225 is to be set aside in reserve funds. The balance in the reserve account at June 30, 2014 was $627,225. The outstanding balance owed on the bonds as of June 30, 2014 is $5,605,000. This was recognized by the California Department of Finance as enforceable obligation of the Successor Agency. City of Temple City Notes to Financial Statements Year ended June 30, 2014 54 NOTE 15 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) Annual debt service requirements to maturity for the refunding revenue bonds payable are as follows: NOTE 16 SUBSEQUENT EVENTS The City has evaluated events subsequent to June 30, 2014 to assess the need for potential recognition or disclosure in the financial statements. Such events were evaluated through December 9, 2014, the date the financial statements were available to be issued. Based upon this evaluation, it was determined that no subsequent events occurred that require recognition or additional disclosure in the financial statements. Year Ending June 30, Principal Interest Total 2015 $ 360,000 $ 256,095 $ 616,095 2016 375,000 240,105 615,105 2017 395,000 222,968 617,968 2018 410,000 204,650 614,650 2019 430,000 185,223 615,223 2020-2024 2,470,000 593,413 3,063,413 2025-2026 1,165,000 57,403 1,222,403 Total $ 5,605,000 $ 1,759,857 $ 7,364,857 (This page intentionally left blank.) REQUIRED SUPPLEMENTARY INFORMATION (This page intentionally left blank.) City of Temple City Budget to Actual Comparison General Fund 55 The General Fund has been classified as a major fund and is used to account for all of the general revenues of the City not specifically levied or collected for some special purpose, and for the expenditures related to the rendering of general services by the City. The General Fund is used to account for all resources not required to be accounted for in another fund. The budget-to-actual comparison for this fund has been presented in the accompanying financial statements as required supplementary information. City of Temple City Budgetary Comparison Schedule General Fund Year ended June 30, 2014 56 Variance with Final Budget Positive Original Final Actual (Negative) Revenues Taxes Real estate transfer tax $ 120,000 $ 170,000 $ 171,193 $ 1,193 Sales and use tax 1,323,000 1,323,000 1,285,091 (37,909) In lieu sales tax 415,000 450,500 450,522 22 Franchise fees 560,000 560,000 562,535 2,535 Transient occupancy tax 35,000 35,000 46,849 11,849 Property tax allocation 2,450,000 2,585,000 2,597,549 12,549 Total taxes 4,903,000 5,123,500 5,113,739 (9,761) Licenses and permits Business license fees 200,000 220,000 190,874 (29,126) Building permit fees 460,000 610,000 681,601 71,601 Parking permit fees 75,000 55,000 52,192 (2,808) Encroachment permit fees - 190,000 208,994 18,994 Animal license fees 70,000 90,000 92,892 2,892 Vehicle impound fees 35,000 20,000 16,020 (3,980) Temp parking permit fees 113,000 138,000 129,874 (8,126) Code enforcement fees 50,000 60,000 62,163 2,163 Total licenses and permits 1,003,000 1,383,000 1,434,610 51,610 Intergovernmental Motor vehicle in lieu tax - 15,300 15,253 (47) State mandate reinbursement - 4,250 7,707 3,457 In lieu Vehicle License Fees 3,250,000 3,457,400 3,457,406 6 Total intergovernmental 3,250,000 3,476,950 3,480,366 3,416 Charges for services Shared maintenance charges 4,000 4,000 3,900 (100) Zoning fees 160,000 240,000 210,245 (29,755) Recreation fees 590,000 600,000 596,879 (3,121) Plan check fees 460,000 660,000 579,163 (80,837) Facility rental fees 65,300 65,300 70,569 5,269 PW/Engineering fees - 49,000 49,636 636 Total charges for services 1,279,300 1,618,300 1,510,392 (107,908) Fines, forfeitures and penalties Court fines 525,000 615,000 554,805 (60,195) Investment income Interest - LAIF 25,000 25,000 (1) (25,001) Interest - Others 250,000 20,000 - (20,000) Interest - CD 170,000 170,000 203,572 33,572 Total investment income 445,000 215,000 203,571 (11,429) Other Other reimbursement 90,000 287,000 160,042 (126,958) Recyclable revenue 50,000 30,000 34,054 4,054 AB939 reimbursement 15,000 15,000 11,166 (3,834) Rental Income 30,000 68,000 68,411 411 Sale of City property - 4,600 4,595 (5) Donations 10,000 10,000 11,000 1,000 CRA/LLD reimbursement 6,300 6,300 9,857 3,557 Sundry 1,000 21,000 15,492 (5,508) Total other income 202,300 441,900 314,617 (127,283) Total revenues $ 11,607,600 $ 12,873,650 $ 12,612,100 $ (261,550) Budgetary Amounts City of Temple City Budgetary Comparison Schedule General Fund Year ended June 30, 2014 57 Variance with Final Budget Positive Original Final Actual (Negative) Expenditures General government: City Council $ 198,575 $ 213,575 $ 192,244 $ 21,331 City Manager 977,540 1,105,540 993,928 111,612 Council support 280,425 331,165 297,066 34,099 Accounting 484,390 552,350 557,303 (4,953) City Attorney 222,000 502,000 402,028 99,972 Support services 164,210 227,010 220,745 6,265 Insurance/ benefits 332,415 558,015 295,117 262,898 Purchasing 148,200 148,200 164,782 (16,582) Elections - - 750 (750) Total general government 2,807,755 3,637,855 3,123,963 513,892 Community development Planning 573,090 2,265,195 844,568 1,420,627 Housing 44,500 405,500 207,376 198,124 Building 535,175 900,175 971,141 (70,966) Total community development 1,152,765 3,570,870 2,023,085 1,547,785 Public safety: Law enforcement 3,799,295 3,988,660 3,885,066 103,594 Traffic engineering 8,280 15,880 22,559 (6,679) Animal control 199,615 199,615 198,273 1,342 Emergency services 160,755 183,565 184,108 (543) Community Preservation 444,770 490,770 514,964 (24,194) Parking administration 394,320 412,505 408,449 4,056 Total public safety 5,007,035 5,290,995 5,213,419 77,576 Public works: Parking facilities 162,340 162,340 198,017 (35,677) Solid waste management - 58,690 47,859 10,831 General government buildings 288,240 413,605 400,965 12,640 Graffiti abatement 26,400 36,400 43,742 (7,342) Total public works 476,980 671,035 690,583 (19,548) Community services: Recreation / human services 1,200,625 1,253,685 1,168,941 84,744 Parks - Maintenance/Facilities 809,025 935,445 887,241 48,204 2,009,650 2,189,130 2,056,182 132,948 11,454,185 15,359,885 13,107,232 2,252,653 Excess (deficiency) of revenue over expenditures 153,415 (2,486,235) (495,132) (2,514,203) Total expenditures Budgetary Amounts City of Temple City Budgetary Comparison Schedule General Fund Year ended June 30, 2014 58 Other financing sources (uses) Transfers in 110,586 590,550 382,530 (208,020) Transfers out (2,231,906) (3,967,075) (3,308,945) 658,130 Total other financing sources (uses)(2,121,320) (3,376,525) (2,926,415) 450,110 (1,967,905) (5,862,760) (3,421,547) (2,441,213) Fund balance at beginning of year 21,427,062 21,427,062 21,427,062 - Fund balance at end of year $ 19,459,157 $ 15,564,302 $ 18,005,515 $ 2,441,213 Net change in fund balances City of Temple City Budgetary Comparison Schedule Capital Improvement Fund Year ended June 30, 2014 59 Variance with Final Budget Positive Original Final Actual (Negative) Expenditures Capital outlay: Parks-maintenance/facilities $ 50,500 $ 95,500 $ 93,715 $ 1,785 Traffic engineering 250,000 250,000 5,199 244,801 Street cleaning 300,000 300,000 77,700 222,300 Street maintenance 2,979,250 16,890,930 11,967,112 4,923,818 Sidewalk maintenance 75,000 335,000 247,152 87,848 General government buildings 130,000 1,701,175 1,616,565 84,610 Parking facilities 230,000 230,000 3,416 226,584 Total capital outlay 4,014,750 19,802,605 14,010,859 5,791,746 4,014,750 19,802,605 14,010,859 5,791,746 Excess (deficiency) of revenue over expenditures (4,014,750) (19,802,605) (14,010,859) (5,791,746) Other financing sources (uses) Transfers in 18,026,430 14,226,835 12,287,870 (1,938,965) Transfers out - - - - Total other financing sources (uses)18,026,430 14,226,835 12,287,870 (1,938,965) 14,011,680 (5,575,770) (1,722,989) (7,730,711) Fund balance at beginning of year - - - - Fund balance at end of year $ 14,011,680 $ (5,575,770) $ (1,722,989) $ 3,852,781 Total expenditures Net change in fund balances Budgetary Amounts City of Temple City Budgetary Comparison Schedule Permanent Fund Year ended June 30, 2014 60 Variance with Final Budget Positive Original Final Actual (Negative) Investment income $ 1,000 $ 1,000 $683 317 Donations - 2,000 2,000 - Total revenues 1,000 3,000 2,683 317 Current: Community services 5,000 5,000 5,977 (977) Total expenditures 5,000 5,000 5,977 (977) Excess (deficiency) of revenues over expenditures (4,000) (2,000) (3,294) 1,294 Transfers in - - - - Transfers out - - - - Net other financing sources (uses)- - - - Net change in fund balance (4,000) (2,000) (3,294) 1,294 Fund balance, beginning of year 175,828 175,828 175,828 - Fund balance, end of year $ 171,828 $ 173,828 $ 172,534 1,294 Revenues Expenditures Other financing sources (uses) Budgetary Amounts City of Temple City Budgetary Comparison Schedule Special Revenue Fund Year ended June 30, 2014 61 Variance with Final Budget Positive Original Final Actual (Negative) Taxes $ 2,161,000 $ 2,236,000 $ 1,197,044 1,038,956 Intergovernmental 921,520 2,593,220 5,854,455 (3,261,235) Charges for services 1,152,000 931,250 249,763 681,487 Fines - 50,000 25,234 24,766 Investment income 34,800 85,760 138,992 (53,232) Donations - 2,000 - 2,000 Other - 24,500 17,960 6,540 Total revenues 4,269,320 5,922,730 7,483,448 (1,560,718) Current: General government - - 6,471 (6,471) Community development - 24,500 24,454 46 Public works 2,667,505 2,706,665 1,772,588 934,077 Community services 191,860 282,810 677,012 (394,202) Total expenditures 2,859,365 3,013,975 2,480,525 533,450 Excess (deficiency) of revenues over expenditures 1,409,955 2,908,755 5,002,923 (2,094,168) Transfers in - - 371,301 (371,301) Transfers out - (11,190,310) (9,732,756) (1,457,554) Net other financing sources (uses)- (11,190,310) (9,361,455) (1,828,855) Net change in fund balance 1,409,955 (8,281,555) (4,358,532) (3,923,023) Fund balance, beginning of year 8,269,953 8,269,953 8,269,953 - Fund balance, end of year $ 9,679,908 $ (11,602) $ 3,911,421 (3,923,023) Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual TRAFFIC SAFETY FUND Year ended June 30, 2014 62 Variance with Final Budget Positive Original Final Actual (Negative) Fines $ 50,000 $ 50,000 $ 25,234 $ (24,766) Total revenues 50,000 50,000 25,234 (24,766) Transfers out (40,000) (40,000) (33,096) 6,904 Net other financing sources (uses)(40,000) (40,000) (33,096) 6,904 Net change in fund balance 10,000 10,000 (7,862) (17,862) Fund balance, beginning of year 7,862 Fund balance, end of year $ - Budgetary Amounts Revenues Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual HIGH TECH GRANT FUND Year ended June 30, 2014 63 Variance with Final Budget Positive Original Final Actual (Negative) Total revenues $ - $ - $ - $ - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Net change in fund balance - - - - Fund balance, beginning of year 8,784 Fund balance, end of year $ 8,784 Budgetary Amounts Revenues Expenditures City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual COPS FUND Year ended June 30, 2014 64 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ 100,000 $ 100,000 $ 100,000 - Investment income 100 100 - (100) Total revenues 100,100 100,100 100,000 (100) Total expenditures - - - - Excess (deficiency) of revenues over expenditures 100,100 100,100 100,000 (100) Transfers out (100,000) (100,000) (100,000) - Net other financing sources (uses)(100,000) (100,000) (100,000) - Net change in fund balance 100 100 - (100) Fund balance, beginning of year 1,083 Fund balance, end of year $ 1,083 Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual PUBLIC TRANSPORTATION – PROP A FUND Year ended June 30, 2014 65 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ 560,000 $ 595,000 $ 610,170 15,170 Charges for services 150,000 150,000 126,990 (23,010) Investment income 8,000 8,000 1,826 (6,174) Total revenues 718,000 753,000 738,986 (14,014) Current: Community services - 792,875 661,919 130,956 Total expenditures - 792,875 661,919 130,956 Excess (deficiency) of revenues over expenditures 718,000 (39,875) 77,067 116,942 Transfers in - - - - Transfers out (792,875) (1,500,000) (1,505,723) 5,723 Net other financing sources (uses)(792,875) (1,500,000) (1,505,723) 5,723 Net change in fund balance (74,875) (1,539,875) (1,428,656) (111,219) Fund balance, beginning of year 2,152,263 Fund balance, end of year $ 723,607 Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual PUBLIC TRANSPORTATION – PROP C FUND Year ended June 30, 2014 66 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ 442,000 $ 492,000 $ 504,889 12,889 Investment income 15,000 15,000 37 (14,963) Total revenues 457,000 507,000 504,926 (2,074) Total expenditures - - - - Excess (deficiency) of revenues over expenditures 457,000 507,000 504,926 (2,074) Transfers out - (2,780,645) (878,198) 1,902,447 Net other financing sources (uses)- (2,780,645) (878,198) 1,902,447 Net change in fund balance 457,000 (2,273,645) (373,272) 1,900,373 Fund balance, beginning of year 36,875 Fund balance, end of year $ (336,397) Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual USED OIL FUND Year ended June 30, 2014 67 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ 15,000 $ 15,000 $ 10,304 (4,696) Other - - 413 413 Total revenues 15,000 15,000 10,717 (4,283) Total expenditures - - - - Excess (deficiency) of revenues over expenditures 15,000 15,000 10,717 (4,283) Transfers out (8,690) (8,690) (11,165) (2,475) Net other financing sources (uses)(8,690) (8,690) (11,165) (2,475) Net change in fund balance 6,310 6,310 (448) (6,758) Fund balance, beginning of year 9,834 Fund balance, end of year $ 9,386 Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual STATE GAS TAX FUND Year ended June 30, 2014 68 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ 1,046,000 $ 1,046,000 $ 1,119,922 73,922 Investment income 3,000 3,000 836 (2,164) Total revenues 1,049,000 1,049,000 1,120,758 71,758 Current: Public works 766,360 952,240 740,792 (211,448) Total expenditures 766,360 952,240 740,792 (211,448) Excess (deficiency) of revenues over expenditures 282,640 96,760 379,966 283,206 Transfers in - 259,580 248,432 11,148 Transfers out - (2,079,900) (801,312) 1,278,588 Net other financing sources (uses)- (1,820,320) (552,880) 1,267,440 Net change in fund balance 282,640 (1,723,560) (172,914) (1,550,646) Fund balance, beginning of year 944,777 Fund balance, end of year $ 771,863 Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ASSET SEIZURE FUND Year ended June 30, 2014 69 Variance with Final Budget Positive Original Final Actual (Negative) Total revenues - - - - Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Net change in fund balance - - - - Fund balance, beginning of year 729 Fund balance, end of year $729 Budgetary Amounts Revenues Expenditures City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual CDBG FUND Year ended June 30, 2014 70 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ 226,860 $ 226,860 $ 324,934 98,074 Other - 24,500 17,547 (6,953) Total revenues 226,860 251,360 342,481 91,121 Current: Community development - 24,500 24,454 46 Total expenditures - 24,500 24,454 46 Excess (deficiency) of revenues over expenditures 226,860 226,860 318,027 91,167 Transfers out (151,860) (486,860) (318,027) 168,833 Net other financing sources (uses)(151,860) (486,860) (318,027) 168,833 Net change in fund balance 75,000 (260,000) - (260,000) Fund balance, beginning of year - Fund balance, end of year $ - Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual BICYCLE AND PEDESTRIAN FUND Year ended June 30, 2014 71 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ 22,000 $ 22,000 $ 15,403 (6,597) Investment income 10 10 - (10) Total revenues 22,010 22,010 15,403 (6,607) Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures 22,010 22,010 15,403 (6,607) Transfers out - - (103,935) (103,935) Net other financing sources (uses)- - (103,935) (103,935) Net change in fund balance 22,010 22,010 (88,532) (110,542) Fund balance, beginning of year (150) Fund balance, end of year $ (88,682) Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual AIR QUALITY IMPROVEMENT FUND Year ended June 30, 2014 72 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ 40,000 $ 40,000 $ 44,474 4,474 Investment income 150 150 55 (95) Total revenues 40,150 40,150 44,529 4,379 Current: Community services - (80,000) - (80,000) Total expenditures - (80,000) - (80,000) Excess (deficiency) of revenues over expenditures 40,150 120,150 44,529 (75,621) Net change in fund balance 40,150 120,150 44,529 (75,621) Fund balance, beginning of year 70,875 Fund balance, end of year $ 115,404 Budgetary Amounts Revenues Expenditures City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual MEASURE R FUND Year ended June 30, 2014 73 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ 340,000 $ 370,000 $ 377,714 7,714 Investment income 1,500 1,500 777 (723) Total revenues 341,500 371,500 378,491 6,991 Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures 341,500 371,500 378,491 6,991 Transfers out - (1,194,230) (799,456) 394,774 Net other financing sources (uses)- (1,194,230) (799,456) (394,774) Net change in fund balance 341,500 (822,730) (420,965) 401,765 Fund balance, beginning of year 942,227 Fund balance, end of year $ 521,262 Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual PARKING CONCESSION FUND Year ended June 30, 2014 74 Variance with Final Budget Positive Original Final Actual (Negative) Total revenues - - - - Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Net change in fund balance - - - - Fund balance, beginning of year 10,000 Fund balance, end of year 10,000 Budgetary Amounts Revenues Expenditures City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual AFFORDABLE HOUSING FUND Year ended June 30, 2014 75 Variance with Final Budget Positive Original Final Actual (Negative) Charges for services $ - $ - $ 6,365 6,365 Total revenues - - 6,365 6,365 Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 6,365 6,365 Net change in fund balance - - 6,365 (6,365) Fund balance, beginning of year - Fund balance, end of year $ 6,365 Budgetary Amounts Revenues Expenditures City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual SEWER RECONSTRUCTION FUND Year ended June 30, 2014 76 Variance with Final Budget Positive Original Final Actual (Negative) Charges for services $ 60,000 $ 75,000 $ 78,000 3,000 Total revenues 60,000 75,000 78,000 3,000 Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures 60,000 75,000 78,000 3,000 Transfers out - (400,000) (434,498) (34,498) Net other financing sources (uses)- (400,000) (434,498) (34,498) Extraordinary item - - - - Net change in fund balance 60,000 (325,000) (356,498) (31,498) Fund balance, beginning of year 709,724 Fund balance, end of year $ 353,226 Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual CONGESTION MANAGEMENT FUND Year ended June 30, 2014 77 Variance with Final Budget Positive Original Final Actual (Negative) Charges for services $ 1,000 $ 2,250 $ (5,984) (8,234) Total revenues 1,000 2,250 (5,984) (8,234) Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures 1,000 2,250 (5,984) (8,234) Transfers out - - (20,014) (20,014) Net other financing sources (uses)- - (20,014) 20,014 Net change in fund balance 1,000 2,250 (25,998) 28,248 Fund balance, beginning of year 25,998 Fund balance, end of year $ - Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual HSIP FUND Year ended June 30, 2014 78 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ - $ 153,850 $ 301,447 147,597 Total revenues - 153,850 301,447 147,597 Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures - 153,850 301,447 147,597 Transfers out - (340,000) (301,447) 38,553 Net other financing sources (uses)- (340,000) (301,447) 38,553 Extraordinary item - - - - Net change in fund balance - (186,150) - 186,150 Fund balance, beginning of year - Fund balance, end of year $ - Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual SURFACE TRANSPORTATION LOCAL PROGRAM FUND Year ended June 30, 2014 79 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ - $ 258,870 $ 483,131 224,261 Total revenues - 258,870 483,131 224,261 Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures - 258,870 483,131 224,261 Transfers out - - (483,131) (483,131) Net other financing sources (uses)- - (483,131) 483,131 Net change in fund balance - 258,870 - (258,870) Fund balance, beginning of year - Fund balance, end of year $ - Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 1992/1996 PARK BOND FUND Year ended June 30, 2014 80 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ 40,000 $ 40,000 $ 40,000 - Total revenues 40,000 40,000 40,000 - Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures 40,000 40,000 40,000 - Transfers out (40,000) (40,000) (40,000) - Net other financing sources (uses)(40,000) (40,000) (40,000) - Net change in fund balance - - - - Fund balance, beginning of year - Fund balance, end of year $ - Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual STATE RECYCLING FUND Year ended June 30, 2014 81 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ 9,700 $ 9,700 $ 9,857 157 Total revenues 9,700 9,700 9,857 157 Current: Community services - 9,900 7,446 (2,454) Total expenditures - 9,900 7,446 (2,454) Excess (deficiency) of revenues over expenditures 9,700 (200) 2,411 2,611 Net change in fund balance 9,700 (200) 2,411 2,611 Fund balance, beginning of year 20 Fund balance, end of year $ 2,431 Budgetary Amounts Revenues Expenditures City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual TREE RESTORATION FUND Year ended June 30, 2014 82 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ - $ - $ 9,456 9,456 Total revenues - - 9,456 9,456 Current: Public works - - 4,718 4,718 Community services - - 7,647 7,647 Total expenditures - - 12,365 12,365 Excess (deficiency) of revenues over expenditures - - (2,909) (2,909) Net change in fund balance - - (2,909) (2,909) Fund balance, beginning of year 2,909 Fund balance, end of year $ - Budgetary Amounts Revenues Expenditures City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual PARK ACQUISITION FUND Year ended June 30, 2014 83 Variance with Final Budget Positive Original Final Actual (Negative) Charges for services $ 17,000 $ 29,000 $ 38,311 9,311 Total revenues 17,000 29,000 38,311 9,311 Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures 17,000 29,000 38,311 9,311 Net change in fund balance 17,000 29,000 38,311 9,311 Fund balance, beginning of year 47,196 Fund balance, end of year $ 85,507 Budgetary Amounts Revenues Expenditures City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual LIGHTING AND LANDSCAPE DISTRICT FUND Year ended June 30, 2014 84 Variance with Final Budget Positive Original Final Actual (Negative) Taxes $ 1,115,000 $ 1,190,000 $ 1,197,044 7,044 Investment income 6,000 6,000 1,952 (4,048) Other - - - - Total revenues 1,121,000 1,196,000 1,198,996 2,996 Current: Public works 959,580 1,149,460 1,027,078 (122,382) Total expenditures 959,580 1,149,460 1,027,078 (122,382) Excess (deficiency) of revenues over expenditures 161,420 46,540 171,918 125,378 Transfers in - 124,900 122,869 (2,031) Transfers out - (2,000,000) (2,000,000) - Net other financing sources (uses)- (1,875,100) (1,877,131) (2,031) Net change in fund balance 161,420 (1,828,560) (1,705,213) 123,347 Fund balance, beginning of year 2,301,558 Fund balance, end of year $ 596,345 Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual HIGH PRIORITY LEGACY USER FUND Year ended June 30, 2014 85 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ - $ 21,340 $ 21,342 2 Total revenues - 21,340 21,342 2 Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures - 21,340 21,342 2 Transfers in - - - - Transfers out - - (21,342) (21,342) Net other financing sources (uses)- - (21,342) 21,342 Net change in fund balance - 21,340 - (21,340) Fund balance, beginning of year - Fund balance, end of year $ - Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual CONGESTION MITIGATION & AIR QUALITY FUND Year ended June 30, 2014 86 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ - $ 248,600 $ 1,569,449 1,320,849 Total revenues - 248,600 1,569,449 1,320,849 Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures - 248,600 1,569,449 1,320,849 Transfers out - - (1,569,449) (1,569,449) Net other financing sources (uses)- - (1,569,449) (1,569,449) Net change in fund balance - 248,600 - (248,600) Fund balance, beginning of year - Fund balance, end of year $ - Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual OPEB FUND Year ended June 30, 2014 87 Variance with Final Budget Positive Original Final Actual (Negative) Investment income $ - $ - $ 133,509 133,509 Total revenues - - 133,509 133,509 Current: General government - - 6,471 6,471 Total expenditures - - 6,471 6,471 Excess (deficiency) of revenues over expenditures - - 127,038 127,038 Net change in fund balance - - 127,038 127,038 Fund balance, beginning of year 997,389 Fund balance, end of year $ 1,124,427 Budgetary Amounts Revenues Expenditures City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual PUBLIC ART FUND Year ended June 30, 2014 88 Variance with Final Budget Positive Original Final Actual (Negative) Charges for services $ - $ - $ 6,081 6,081 Fines - - - - Investment income - - - - Other - - - - Total revenues - - 6,081 6,081 Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 6,081 6,081 Net change in fund balance - - 6,081 6,081 Fund balance, beginning of year - Fund balance, end of year $ 6,081 Budgetary Amounts Revenues Expenditures City of Temple City Nonmajor Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual BICYCLE TRANSPORTATION FUND Year ended June 30, 2014 89 Variance with Final Budget Positive Original Final Actual (Negative) Intergovernmental $ - $ - $ 311,963 311,963 Total revenues - - 311,963 311,963 Current: Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 311,963 311,963 Transfers out - - (311,963) (311,963) Net other financing sources (uses)- - (311,963) (311,963) Net change in fund balance - - - - Fund balance, beginning of year - Fund balance, end of year $ - Budgetary Amounts Revenues Expenditures Other financing sources (uses) City of Temple City Notes to Budgetary Comparison Schedule Year ended June 30, 2014 90 NOTE 1 BUDGETS AND BUDGETARY ACCOUNTING The City adopts an annual budget prepared on the modified accrual basis for all of its governmental funds. During the year, there were budget modifications and supplemental appropriations amounting to $19,588,585. The City Manager or his designee is authorized to transfer budgeted amounts between the accounts of any program. Revisions that alter the total appropriations of any program or fund are approved by City Council. Prior year appropriations lapse unless they are appropriated through the formal budget process. Expenditures may not legally exceed appropriations at fund level. Reserves for encumbrances are not recorded by the City. City of Temple City Schedule of Funding Progress California Public Employees Retirement System (CalPERS) Year ended June 30, 2014 91 Actuarial Accrued Value of Unfunded Funded Annual Valuation Liabilities Assets Liabilities Ratio Covered UL as a % Date (AL)(AVA)(UL) (AVA/AL) Payroll of Payroll 6/30/2010 $ 3,309,064,934 $2,946,408,106 $362,656,828 89.0%$748,401,352 48.5% 6/30/2011 3,619,835,876 3,203,214,899 416,620,977 88.5% 759,263,518 54.9% 6/30/2012 * 4,175,139,166 3,686,598,343 488,540,823 88.3% 757,045,663 64.5% *latest available actuarial valuation City of Temple City Schedule of Funding Progress Other Postemployment Benefits (OPEB) Year ended June 30, 2014 92 Unfunded Actuarial Actuarial Actuarial Value of Accrued Accrued Funded Annual Valuation Assets Liability Liability Ratio Covered UAAL as a % Date (AVA)(AAL)(UAAL) (AVA/AAL) Payroll of Payroll 6/30/2009 $- $ 7,850,000 $ 7,850,000 0.0% $ 2,261,000 347.2% 6/30/2011*- 6,481,000 6,481,000 0.0%2,335,000 277.6% *latest available actuarial valuation SUPPLEMENTARY SCHEDULES (This page intentionally left blank.) NONMAJOR GOVERNMENTAL FUNDS (This page intentionally left blank.) City of Temple City Nonmajor Governmental Funds Combining Balance Sheet Year ended June 30, 2014 93 Special Camellia Revenue Permanent Funds Fund Totals Cash and investments $3,133,668 $172,431 $3,306,099 Accounts receivable 311,963 - 311,963 Interest receivable - 103 103 Due from other governments 710,574 - 710,574 Loans receivables 999,991 - 999,991 Other investments 1,124,427 - 1,124,427 $6,280,623 $172,534 $6,453,157 $89,328 $ - $89,328 1,279,883 - 1,279,883 999,991 - 999,991 2,369,202 - 2,369,202 - 172,534 172,534 Special revenue funds 3,911,421 - 3,911,421 Total fund balances 3,911,421 172,534 4,083,955 Total liabilities and fund balances $6,280,623 $172,534 $6,453,157 Due to other funds Unavailable revenue Total liabilities FUND BALANCES Restricted: Education scholarships ASSETS Total assets LIABILITIES Accounts payable City of Temple City Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2014 94 Special Camellia Revenue Permanent Funds Fund Totals Taxes $ 1,197,044 $ - $ 1,197,044 Intergovernmental 5,854,455 - 5,854,455 Charges for services 249,763 - 249,763 Fines 25,234 - 25,234 Investment income 138,992 683 139,675 Donations - 2,000 2,000 Other 17,960 - 17,960 Total revenues 7,483,448 2,683 7,486,131 Current: General government 6,471 - 6,471 Community development 24,454 - 24,454 Public works 1,772,588 - 1,772,588 Community services 677,012 5,977 682,989 Total expenditures 2,480,525 5,977 2,486,502 Excess (deficiency) of revenues over expenditures 5,002,923 (3,294) 4,999,629 Transfers in 371,301 - 371,301 Transfers out (9,732,756)- (9,732,756) Net other financing sources (uses)(9,361,455) - (9,361,455) Net change in fund balance (4,358,532) (3,294) (4,361,826) Fund balance, beginning of year 8,269,953 175,828 8,445,781 Fund balance, end of year $ 3,911,421 $ 172,534 $ 4,083,955 Revenues Expenditures Other financing sources (uses) City of Temple City Description of Nonmajor Special Revenue Funds June 30, 2014 95 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. 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. Asset Seizure Fund - To account for the revenues and expenditures from the seizure of properties. CDBG - The CDBG Special Revenue Fund met the criteria to be classified as a major fund and is used to account for resources in managing the different programs under the Community Development Block Grant funded by the U.S. Department of Housing and Urban Development. 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 - These are similar to local return type funds to be used for traffic relief and transportation upgrades citywide over the next 30 years. These funds may be for projects such as pothole repairs, major street resurfacing, left-turn signals, bikeways, pedestrian improvements, streetscapes, traffic signal synchronization, local transit services and programs. Parking Concession Fund - To account for revenues and expenditures related to the operation of the parking concession agreements. City of Temple City Description of Nonmajor Special Revenue Funds June 30, 2014 96 Affordable Housing Fee Fund - An optional development impact fee used on City approved affordable housing programs geared towards assisting low-income households (e.g. handyworker grant, home improvement loan, Brush with Kindness grant, senior housing development, first-time homebuyers program, etc.). Sewer Reconstruction Fund - To account for special fees collected to be used for new sewer lines and sewer line replacement. 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. HSIP Fund - The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), which was signed into law on August 10, 2005, established the Highway Safety Improvement Program (HSIP) as a core Federal-aid program. The overall purpose of this program is to achieve a significant reduction in traffic fatalities and serious injuries on all public roads through the implementation of infrastructure-related highway safety improvements. Surface Transportation Program Local Fund - To account for the grant revenues received from the Federal Highway Administration through the California Department of Transportation to partially fund the City’s Rosemead Boulevard Improvement Project. 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. 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. Tree Restoration Fund - To account for revenues and expenditures for the tree restoration program of the City. Park Acquisition Fund - To account for City imposed fees from the construction of new dwellings within the City. Expenditures are for the acquisition or improvement of neighborhood or community parks in conformance with the priorities established by the General Plan. Lighting and Landscape District Fund - To account for assessments and ad valorem taxes which are used for the operation and maintenance of street lights, traffic signals, and trees and parkways within the City. High Priority Legacy User Fund - To account for the grant revenues received from the Federal Highway Administration through the California Department of Transportation to partially fund th e City’s Rosemead Boulevard Improvement Project. Congestion Mitigation and Air Quality Fund - To account for the grant revenues received from the Federal Highway Administration through the California Department of Transportation to partially fund the City’s Rosemead Boulevard Improvement Project. City of Temple City Description of Nonmajor Special Revenue Funds June 30, 2014 97 OPEB Fund - To account for contributions and activities of the Other Postemployment Benefits (OPEB) Plan trust program to fund OPEB liability. Public Art Fee Fund - An optional development impact fee used to procure, commission, install and/or maintain art in a public place. The impact fee could be identified for an individual art piece per the development agreement. If the development agreement does not specify a particular art piece for the impact fee, it shall be deposited into the City’s Public Art Fund. Bicycle Transportation Account Fund - To account for the grant revenues received from the Department of Transportation to partially fund the City’s Rosemead Boulevard Improvement Project. 98 Public Traffic High Tech Transportation - Safety Grant COPS Prop A Cash and investments $ - $8,784 $1,083 $786,965 Accounts receivable - - - - Due from other governments 1,758 - - - Loans receivables - - - - Other investments - - - - $1,758 8,784 1,083 786,965 $ - $ - $ - $63,358 1,758 - - - - - - - 1,758 - - 63,358 - 8,784 1,083 723,607 - - - - Total fund balances (deficits)- 8,784 1,083 723,607 Total liabilities and fund balances (deficits)$1,758 $8,784 $1,083 $786,965 ASSETS Total assets Total liabilities LIABILITIES Restricted Unassigned Accounts payable Due to other funds Unavailable revenue FUND BALANCES (DEFICITS) City of Temple City Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2014 99 Air Public Bicycle Quality Transportation - Used State Asset and Improvement Prop C Oil Gas Tax Seizure CDBG Pedestrian District $- $ 9,386 $ 718,807 $729 $ - $ - $ 103,822 - - - - - - - - - 108,583 - 144,366 15,404 11,582 - - - - 999,991 - - - - - - - - - - 9,386 827,390 $729 1,144,357 15,404 115,404 $- $ - $ 55,527 $ - $ - $ - $- 336,397 - - - 144,366 104,086 - - - - - 999,991 - - 336,397 - 55,527 - 1,144,357 104,086 - (336,397) 9,386 771,863 729 - (88,682) 115,404 - - - - - - - (336,397) 9,386 771,863 729 - (88,682) 115,404 $- $9,386 $827,390 $729 $1,144,357 $15,404 $115,404 100 Affordable Parking Housing Sewer Measure R Concession Fund Reconstruction Cash and investments $521,262 $10,000 $6,365 $353,226 Accounts receivable - - - - Due from other governments - - - - Loans receivables - - - - Other investments - - - - 521,262 10,000 6,365 353,226 $ - $ - $ - $- - - - - - - - - - - - - 521,262 10,000 6,365 353,226 - - - - Total fund balances (deficits)521,262 10,000 6,365 353,226 Total liabilities and fund balances (deficits)$521,262 $10,000 $6,365 $353,226 LIABILITIES Accounts payable Due to other funds FUND BALANCES (DEFICITS) Unassigned Unavailable revenue Total liabilities ASSETS Total assets Restricted City of Temple City Nonmajor Special Revenue Funds (Continued) Combining Balance Sheet June 30, 2014 101 Surface 1992/ Congestion Transportation 1996 State Tree Park Management HSIP Local Program Park Bond Recycling Restoration Acquisition $ 8,602 $- $- $ - $ 2,431 $ - $ 85,507 - - - - - - - - 147,598 224,259 - - 9,456 - - - - - - - - - - - - - - - $ 8,602 147,598 224,259 - 2,431 9,456 85,507 $ 8,602 $- $- $ - $ - $ - $ - - 147,598 224,259 - - 9,456 - - - - - - - - 8,602 147,598 224,259 - - 9,456 - - - - - 2,431 - 85,507 - - - - - - - - - - - 2,431 - 85,507 $8,602 $147,598 $224,259 $- $2,431 $9,456 $85,507 102 High Lighting and Priority Congestion Landscape Legacy Mitigation & District User Air Quality Cash and investments $ 510,618 $ - $ - Accounts receivable - - - Due from other governments 47,568 - - Loans receivables - - - Other investments - - - 558,186 - - $ (38,159) $ - $ - - - - - - - (38,159) - - 596,345 - - - - - Total fund balances (deficits)596,345 - - Total liabilities and fund balances (deficits)$558,186 $- $- ASSETS Total assets LIABILITIES Accounts payable Due to other funds Unavailable revenue Total liabilities FUND BALANCES (DEFICITS) Restricted Unassigned City of Temple City Nonmajor Special Revenue Funds (Continued) Combining Balance Sheet June 30, 2014 103 Bicycle Public Art Transportation OPEB Fund Account Total $ - $ 6,081 $ - $ 3,133,668 - - 311,963 311,963 - - - 710,574 - - - 999,991 1,124,427 - - 1,124,427 1,124,427 6,081 311,963 6,280,623 $ - $ - $ - $ 89,328 - - 311,963 1,279,883 - - - 999,991 - - 311,963 2,369,202 1,124,427 6,081 - 3,911,421 - - - - 1,124,427 6,081 - 3,911,421 $1,124,427 $6,081 $311,963 $6,280,623 104 Public Public Traffic High Tech Transportation - Transportation - Used Safety Grant COPS Prop A Prop C Oil Taxes $ - $ - $ - $- $- $- Intergovernmental - - 100,000 610,170 504,889 10,304 Charges for services - - - 126,990 - - Fines 25,234 - - - - - Investment income - - - 1,826 37 - Other - - - - - 413 Total revenues 25,234 - 100,000 738,986 504,926 10,717 Current: General government - - - - - - Community development - - - - - - Public works - - - - - - Community services - - - 661,919 - - Total expenditures - - - 661,919 - - Excess (deficiency) of revenues over expenditures 25,234 - 100,000 77,067 504,926 10,717 Transfers in - - - - - - Transfers out (33,096) - (100,000) (1,505,723) (878,198) (11,165) Net other financing sources (uses)(33,096) - (100,000) (1,505,723) (878,198) (11,165) Extraordinary item - - - - - - Net change in fund balance (7,862) - - (1,428,656) (373,272) (448) Fund balance, beginning of year 7,862 8,784 1,083 2,152,263 36,875 9,834 Fund balance, end of year $ - $ 8,784 $ 1,083 $723,607 $ (336,397) $9,386 Other financing sources (uses) Expenditures Revenues City of Temple City Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2014 105 Air Bicycle Quality Affordable State Asset and Improvement Parking Housing Sewer Gas Tax Seizure CDBG Pedestrian District Measure R Concession Fund Reconstruction $ - $ - $- $ - $- $ - $ - $ - $- 1,119,922 - 324,934 15,403 44,474 377,714 - - - - - - - - - - 6,365 78,000 - - - - - - - - - 836 - - - 55 777 - - - - - 17,547 - - - - - - 1,120,758 - 342,481 15,403 44,529 378,491 - 6,365 78,000 - - - - - - - - - - - 24,454 - - - - - - 740,792 - - - - - - - - - - - - - - - - - 740,792 - 24,454 - - - - - - 379,966 - 318,027 15,403 44,529 378,491 - 6,365 78,000 248,432 - - - - - - - - (801,312) - (318,027) (103,935) - (799,456) - - (434,498) (552,880) - (318,027) (103,935) - (799,456) - - (434,498) - - - - - - - - - (172,914) - - (88,532) 44,529 (420,965) - 6,365 (356,498) 944,777 729 - (150) 70,875 942,227 10,000 - 709,724 $ 771,863 $729 $- $ (88,682) $115,404 $ 521,262 $ 10,000 $ 6,365 $ 353,226 106 Surface 1992/ Congestion Transportation 1996 State Tree Management HSIP Local Program Park Bond Recycling Restoration Taxes $- $- $- $ - $ - $ - Intergovernmental - 301,447 483,131 40,000 9,857 9,456 Charges for services (5,984) - - - - - Fines - - - - - - Investment income - - - - - - Other - - - - - - Total revenues (5,984) 301,447 483,131 40,000 9,857 9,456 Current: General government - - - - - - Community development - - - - - - Public works - - - - - 4,718 Community services - - - - 7,446 7,647 Total expenditures - - - - 7,446 12,365 Excess (deficiency) of revenues over expenditures (5,984) 301,447 483,131 40,000 2,411 (2,909) Transfers in - - - - - - Transfers out (20,014) (301,447) (483,131) (40,000) - - Net other financing sources (uses)(20,014) (301,447) (483,131) (40,000) - - Extraordinary item - - - - - - Net change in fund balance (25,998) - - - 2,411 (2,909) Fund balance, beginning of year 25,998 - - - 20 2,909 Fund balance, end of year $- $- $- $ - $ 2,431 $ - Revenues Expenditures Other financing sources (uses) City of Temple City Nonmajor Special Revenue Funds (Continued) Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2014 107 Lighting High and Priority Congestion Bicycle Tree Park Landscape Legacy Mitigation &Public Art Transportation Restoration Acquisition District User Air Quality OPEB Fund Account Total $ - $ - $1,197,044 $- $- $- $ - $ - $ 1,197,044 9,456 - - 21,342 1,569,449 - - 311,963 5,854,455 - 38,311 - - - - 6,081 - 249,763 - - - - - - - - 25,234 - - 1,952 - - 133,509 - - 138,992 - - - - - - - - 17,960 9,456 38,311 1,198,996 21,342 1,569,449 133,509 6,081 311,963 7,483,448 - - - - - 6,471 - - 6,471 - - - - - - - - 24,454 4,718 - 1,027,078 - - - - - 1,772,588 7,647 - - - - - - - 677,012 12,365 - 1,027,078 - - 6,471 - - 2,480,525 (2,909) 38,311 171,918 21,342 1,569,449 127,038 6,081 311,963 5,002,923 - - 122,869 - - - - - 371,301 - - (2,000,000) (21,342) (1,569,449) - - (311,963) (9,732,756) - - (1,877,131) (21,342) (1,569,449) - - (311,963) (9,361,455) - - - - - - - - - (2,909) 38,311 (1,705,213) - - 127,038 6,081 - (4,358,532) 2,909 47,196 2,301,558 - - 997,389 - - 8,269,953 $ - $ 85,507 $596,345 $- $- $1,124,427 $ 6,081 $ - $ 3,911,421 (This page intentionally left blank.) STATISTICAL SECTION City of Temple City Description of Statistical Section Contents 108 Financial Trends These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the city's most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the city's current levels of oustanding debt and the city's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the city's financial report relates to the services the city provides and the activities it performs. This part of the City of Temple City's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures,and required supplementary information says about the city's overall financial health. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevent year. City of Temple City Net Position by Component – Last Ten Fiscal Years 109 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Governmental activities: Net position, investment in capital assets 22,680,134$ 22,123,584$ 22,411,970$ 24,916,427$ 26,109,373$ 27,542,462$ 28,131,358$ 29,208,039$ 38,038,920$ 51,168,623$ Restricted 6,207,393 10,094,196 10,569,111 8,637,170 9,924,588 10,961,386 14,736,866 11,889,013 8,445,931 4,083,955 Unrestricted 15,887,321 15,368,695 17,966,076 21,393,668 20,313,976 18,729,825 16,112,547 24,103,180 21,329,869 15,288,904 Total governmental activities net assets 44,774,848$ 47,586,475$ 50,947,157$ 54,947,265$ 56,347,937$ 57,233,673$ 58,980,771$ 65,200,232$ 67,814,720$ 70,541,482$ % changes from prior year 5.13% 6.28% 7.06% 7.85% 2.55% 1.57% 3.05% 10.54% 4.01% 4.02% The City of Temple City implemented GASB 34 for the fiscal year end June 30, 2003. Information prior to the implementation of GASB 34 is not available. City of Temple City Change in Net Position – Expenses and Program Revenues – Last Ten Fiscal Years 110 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Expenses: Governmental activities: General government 2,173,412$ 1,929,063$ 1,932,634$ 2,060,431$ 2,410,692$ 2,716,505$ 2,827,384$ 3,281,194$ 3,769,018$ 3,512,190$ Public safety 3,340,097 3,477,139 3,773,419 4,197,010 4,528,763 4,484,281 4,662,120 4,818,217 5,122,868 5,718,966 Public works 2,715,305 3,012,664 3,422,014 4,624,945 2,827,551 2,969,555 1,960,629 2,162,481 2,520,925 2,970,264 Community development 1,194,837 1,297,393 1,181,969 1,277,870 1,620,525 1,480,064 1,657,399 1,562,859 1,692,614 2,222,569 Community services 1,715,670 1,821,923 2,088,649 2,380,609 2,813,843 2,581,200 3,016,958 3,357,423 2,990,670 2,947,479 Interest on long-term debt 239,760 714,252 352,823 343,561 333,209 321,043 429,238 149,503 - - Total governmental activities expenses 11,379,081 12,252,434 12,751,508 14,884,426 14,534,583 14,552,648 14,553,728 15,331,677 16,096,095 17,371,468 Program revenues: Governmental activities: Changes for services General government 171,523 164,010 165,695 149,281 149,576 151,245 82,910 39,317 1,128,428 142,880 Public safety 569,685 538,813 560,933 555,632 647,841 877,083 516,034 719,955 588,380 596,058 Public works 8,720 699,729 208,002 87,170 61,068 56,906 88,506 220,136 314,631 917,044 Community development 1,195,003 1,178,687 1,251,314 1,469,402 927,150 1,056,657 1,007,719 1,322,476 1,315,893 1,424,955 Community services 600,899 645,626 718,686 797,332 790,357 686,185 517,381 528,043 567,649 596,879 Operating grants and contributions General government 53,337 55,006 58,335 54,002 51,038 45,555 44,773 --141,216 Public safety 102,313 130,764 113,801 103,176 100,589 133,272 136,935 100,238 100,135 100,000 Public works 721,799 890,949 981,538 1,299,422 928,018 1,886,781 4,065,287 3,749,837 5,128,889 4,772,938 Community development 151,668 202,457 178,948 104,763 717,302 349,299 273,917 246,086 856,693 2,279,234 Community services 1,328,053 1,256,579 1,627,245 1,309,753 1,168,478 975,576 83,035 99,848 73,000 88,168 Capital grants and contributions Public works 422,216 - - 1,762,314 78,551 - - - - - Total governmental activities revenues 5,325,216 5,762,620 5,864,497 7,692,247 5,619,968 6,218,559 6,816,497 7,025,936 10,073,698 11,059,372 Net revenues (expenses): Governmental activities:(6,053,865) (6,489,814) (6,887,011) (7,192,179) (8,914,615) (8,334,089) (7,737,231) (8,305,741) (6,022,397) (6,312,096) City of Temple City Change in Net Position – Expenses and Program Revenues – Last Ten Fiscal Years (Continued) 111 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General revenues and other changes in net position: Taxes Property taxes 2,592,096 3,041,999 3,438,142 3,610,345 3,764,946 2,780,452 3,259,485 2,253,677 2,474,978 2,597,549 Transient occupancy taxes 38,885 41,881 47,325 45,013 41,536 34,844 34,221 32,966 28,898 46,849 Sales taxes 1,476,564 1,552,704 1,607,510 1,764,523 1,675,895 1,475,728 1,614,726 1,642,318 1,711,128 1,735,613 Franchise taxes 502,259 526,725 569,796 560,375 581,526 533,542 542,523 553,598 550,527 562,535 Other taxes 189,046 193,785 153,579 118,497 91,886 127,573 99,701 99,417 158,962 171,193 Investment income 263,853 907,319 1,363,484 1,233,122 712,967 262,636 409,097 378,269 132,565 203,571 State motor vehicle in lieu 2,923,061 3,012,017 2,752,706 3,482,229 3,059,138 3,549,571 3,229,851 3,196,237 3,310,180 3,472,659 State revenue-other 12,505 37,248 6,737 13,063 8,203 6,975 8,844 12,276 7,579 11,166 Net loss on sale of assets - (297,601)- - - - - - - - Other revenue 241,334 285,364 308,414 365,120 379,190 448,504 285,881 1,071,678 262,068 237,723 Total general revenues and transfers 8,239,603 9,301,441 10,247,693 11,192,287 10,315,287 9,219,825 9,484,329 9,240,436 8,636,885 9,038,858 Changes in net position 2,185,738 2,811,627 3,360,682 4,000,108 1,400,672 885,736 1,747,098 934,695 2,614,488 2,726,762 Extraordinary items - RDA dissolution:- - - - - - - 3,744,062 - - Change in net position 2,185,738 2,811,627 3,360,682 4,000,108 1,400,672 885,736 1,747,098 4,678,757 2,614,488 2,726,762 Net position at beginning of year 42,589,110 44,774,848 47,586,475 50,947,157 54,947,265 56,347,937 57,233,673 60,521,475 65,200,232 67,814,720 Net position at end of year 46,960,586$ 50,398,102$ 54,307,839$ 58,947,373$ 57,748,609$ 58,119,409$ 60,727,869$ 65,200,232$ 67,814,720$ 70,541,482$ Source: City of Temple City Basic Financial Statements The City of Temple City implemented GASB 34 for the fiscal year ended June 30, 2003 City of Temple City Fund Balances of Governmental Funds – Last Ten Fiscal Years 112 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General fund Nonspendable - $ - $ - $ - $ - $ - $ - $ 1,678$ 12,795$ 10,531$ Restricted 9,065,656 3,187,512 2,966,122 2,751,507 2,563,065 2,360,171 1,771,165 - - - Committed - - - - - - - 4,500,000 4,500,000 3,500,000 Assigned - - - - - - - 17,200,000 15,150,000 12,769,580 Unassigned 10,249,544 18,253,707 20,906,179 22,063,783 22,052,532 22,340,207 23,542,553 2,352,402 1,764,267 1,725,404 Total general fund 19,315,200 21,441,219 23,872,301 24,815,290 24,615,597 24,700,378 25,313,718 24,054,080 21,427,062 18,005,515 All other governmental funds: Nonspendable - - - - - - - - - - Restricted 5,539,337 1,598 6,074 10,129 10,931 22,706 14,736,866 11,889,013 8,445,931 4,083,955 Committed - - - - - - - - - - Assigned - - - - - - - - - - Unassigned, reported in: Special revenue funds 6,048,251 11,038,120 11,636,875 11,944,610 12,495,281 12,846,187 (84,843)- (150) - Capital projects funds - - - - - - - - - (1,722,989) Debt service funds (9,301,492) (3,391,240) (3,357,488) (3,352,088) (3,314,129) (3,424,412) (3,223,856)- - - Total all other governmental funds (3,253,241) 7,646,880 8,279,387 8,592,522 9,181,152 9,421,775 (3,308,699)- (150) (1,722,989) Total governmental funds 21,601,296$ 29,089,697$ 32,157,762$ 33,417,941$ 33,807,680$ 34,144,859$ 36,741,885$ 35,943,093$ 29,872,843$ 20,366,481$ (1) This schedule reports using the modified accrual basis of accounting. Source: City of Temple City basic financial statements City of Temple City Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 113 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Revenues: Taxes 4,324,688$ 4,808,989$ 5,173,859$ 5,417,410$ 5,514,153$ 4,641,626$ 6,303,326$ 6,126,340$ 6,068,935$ 6,310,783$ Licenses and permits 1,144,414 1,092,015 1,200,311 1,385,267 950,216 1,096,347 1,028,284 1,345,183 1,335,720 1,434,610 Intergovernmental 5,618,423 5,075,515 5,710,223 6,135,863 5,792,744 6,923,107 6,462,142 6,026,300 7,980,590 9,334,821 Charges for services 1,545,748 2,381,260 1,981,477 1,966,285 1,968,828 1,781,384 1,104,495 929,351 2,180,285 1,760,155 Fines 406,187 361,278 365,335 347,871 399,053 631,064 495,469 697,246 568,553 580,039 Use of money and property 626,801 1,377,813 1,794,913 1,654,677 1,024,633 610,529 562,190 493,070 220,984 411,657 Grant and loan repayment (low income)139,541 135,026 55,873 103,493 87,326 23,590 49,195 74,632 85,359 - Other 222,882 265,039 277,738 288,075 306,020 349,851 415,145 128,805 269,647 266,166 Total revenues 14,028,684 15,496,935 16,559,729 17,298,941 16,042,973 16,057,498 16,420,246 15,820,927 18,710,073 20,098,231 Expenditures Current: General government 1,888,078 1,727,929 1,759,354 1,879,166 2,012,604 2,263,820 2,492,012 2,773,777 3,648,367 3,130,434 Community development 1,196,840 1,277,887 1,128,219 1,208,947 1,708,161 1,323,870 1,231,126 1,227,221 1,635,843 2,047,539 Public safety 3,296,099 3,450,236 3,679,592 4,147,359 4,358,517 4,285,919 4,353,874 4,676,268 5,103,805 5,213,419 Public works 3,768,556 2,964,906 3,846,473 5,373,030 3,790,966 2,376,038 1,665,506 1,803,025 2,207,950 2,544,287 Community services 1,593,200 1,178,899 1,370,103 2,190,855 2,517,786 2,246,777 2,733,160 2,994,515 2,784,456 2,739,171 Capital outlay:190,071 634,647 756,406 250,600 233,868 2,106,266 1,132,410 1,520,720 9,399,902 13,929,743 Debt services Principal retirement 100,000 3,705,000 240,000 280,000 285,000 295,000 305,000 315,000 - - Interest and fiscal charges 473,667 505,843 504,814 490,352 471,281 452,423 433,050 153,684 - - Bond issuance costs - 320,500 - - - - - - - - Pass-through payment - - - 12,197 51,612 40,046 36,333 10,897 - - ERAF payment - - - - - 330,160 67,974 - - - Total expenditures 12,506,511 15,765,847 13,284,961 15,832,506 15,429,795 15,720,319 14,450,445 15,475,107 24,780,323 29,604,593 Excess (deficiency) of revenues over (under) expenditures 1,522,173 (268,912) 3,274,768 1,466,435 613,178 337,179 1,969,801 345,820 (6,070,250) (9,506,362) City of Temple City Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years (Continued) 114 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Other financing sources (uses): Transfers in 7,434,338 10,625,244 1,952,033 3,002,181 2,709,757 2,881,170 1,740,640 2,345,392 10,038,826 13,041,701 Transfer out (7,624,247) (10,800,611) (2,158,736) (3,208,437) (2,933,196) (2,881,170) (1,740,640) (2,345,392) (10,038,826) (13,041,701) Issuance of Refunding Revenue Bonds - 8,000,000 - - - - - - - - Bond Discount - (67,320)- - - - - - - - Net other financing sources (uses)(189,909) 7,757,313 (206,703) (206,256) (223,439) - - - - - Change in fund balance before extraordinary items 1,332,264 7,488,401 3,068,065 1,260,179 389,739 337,179 1,969,801 345,820 (6,070,250) (9,506,362) Extraordinary items - RDA dissolution transactions:- - - - - - - (517,387) - - Net change in fund balance 1,332,264 7,488,401 3,068,065 1,260,179 389,739 337,179 1,969,801 (171,567) (6,070,250) (9,506,362) Fund balances at beginning of year:20,269,032 21,601,296 29,089,697 32,157,762 33,417,941 33,807,680 34,144,859 36,114,660 35,943,093 29,872,843 Fund balances at end of year:21,601,296$ 29,089,697$ 32,157,762$ 33,417,941$ 33,807,680$ 34,144,859$ 36,114,660$ 35,943,093$ 29,872,843$ 20,366,481$ Note: This schedule reports using the modified accrual basis of accounting. Source: City of Temple City basic financial statements City of Temple City Revenue Capacity Assessed Value of Taxable Property – Last Ten Fiscal Years 115 CATEGORY 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Residential 2,090,941,250$ 2,315,701,302$ 2,545,342,272$ 2,750,833,559$ 2,914,566,164$ 2,952,976,525$ 3,049,375,507$ 3,176,587,665$ 3,291,734,411$ 3,466,485,194$ Commercial 172,013,034 184,839,402 202,110,656 215,663,103 224,186,414 233,159,971 235,240,642 241,334,139 247,949,455 256,434,441 Industrial 26,941,655 28,983,752 30,663,567 34,880,561 34,717,363 39,131,023 38,968,701 39,934,596 41,224,415 42,828,810 Institutional 9,876,585 9,786,833 10,930,100 13,537,061 17,074,075 17,328,942 17,129,301 19,415,635 14,560,720 14,528,414 Irrigated 450,000 458,999 468,178 477,541 487,091 496,832 495,652 499,382 459,000 468,180 Miscellaneous 80,767 467,444 476,791 53,351 586,417 55,504 55,370 55,784 56,898 58,033 Recreational 2,679,906 2,349,153 292,895 2,376,252 3,302,989 3,249,693 2,150,752 1,191,956 1,213,113 1,522,574 Vacant 15,814,622 21,244,944 19,708,862 37,540,887 40,399,192 31,388,447 28,565,197 27,242,717 32,285,185 32,646,273 SBE Nonunitary 764,320 752,690 724,004 591,361 362,891 362,891 252,011 252,011 252,011 252,011 Cross Reference 8,576,443 7,989,250 8,798,674 7,381,576 7,646,698 7,724,752 7,959,915 8,116,437 9,176,726 10,334,699 Unsecured 24,610,709 24,368,140 24,989,966 26,391,071 27,096,629 26,963,336 29,917,083 32,360,705 32,947,948 32,675,627 Exempt (5,665,659) (5,661,444) (5,661,444) (5,495,198) (5,856,015) (5,735,744) (5,735,744) (5,735,744) (5,735,744) (5,735,744) Totals 2,347,083,632$ 2,591,280,465$ 2,838,844,521$ 3,084,231,125$ 3,264,569,908$ 3,307,102,172$ 3,404,374,387$ 3,541,255,283$ 3,666,124,138$ 3,852,498,512$ Total Direct Rate 0.09354 0.0941 0.08976 0.09254 0.09188 0.09197 0.09202 0.0912 0.09076 0.08886 Note: Exempt values are not included in totals. Source: L.A. County Assessor 2004/05 - 2013/14 Combined Tax Roll City of Temple City Revenue Capacity Direct and Overlapping Government Property Tax Rates – Last Ten Fiscal Years 116 Agency 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Basic Levy (1)1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Arcadia Lighting 0.00447 0.00230 0.00630 0.00326 0.00445 0.00472 0.00000 0.00000 0.00000 0.00000 Arcadia Unified 0.02908 0.02746 0.02831 0.08086 0.07911 0.07561 0.07456 0.07691 0.07670 0.07550 County Detention Facilities 1987 Debt 0.00092 0.00080 0.00066 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 El Monte City School District 0.07247 0.08057 0.06402 0.08068 0.09045 0.11907 0.12388 0.12733 0.13288 0.12735 El Monte Union High School 0.03928 0.05425 0.05847 0.02820 0.05160 0.09654 0.08475 0.09591 0.08992 0.09799 LA CCD Ds 2008-2012 Series F 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.01119 0.00000 LA Community College District 0.01810 0.01429 0.02146 0.00879 0.02212 0.02311 0.04031 0.00000 0.03756 0.04454 LA County Flood Control 0.00025 0.00005 0.00005 0.00000 0.00000 0.00000 0.00000 0.03530 0.00000 0.00000 Metropolitan Water District 0.00580 0.00520 0.00470 0.00450 0.00430 0.00430 0.00370 0.00000 0.00350 0.00350 Pasadena Ccd Ds 2002, 2006 Ser D 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00370 0.00000 0.00000 Pasadena Community College District 0.00879 0.00410 0.02080 0.01972 0.01742 0.02300 0.01986 0.00000 0.02056 0.01899 Rosemead School District 0.07095 0.07515 0.05420 0.08283 0.06875 0.11358 0.10743 0.01956 0.10240 0.10314 San Gabriel Unified 0.05729 0.05284 0.04930 0.05741 0.09294 0.10070 0.10190 0.10507 0.10523 0.10082 Temple City Unified 0.04778 0.04465 0.04977 0.04414 0.04661 0.04910 0.04950 0.08454 0.04981 0.10744 Temple City Unified Ds 1998 Series A 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.04590 0.00000 0.00000 Total Direct & Overlapping (2) Tax Rates 1.35517 1.36165 1.35803 1.41039 1.47774 1.60973 1.60589 1.59422 1.62975 1.67927 City's Share of 1% Levy Per Prop 13 (3)0.09370 0.09370 0.09370 0.09370 0.09370 0.09370 0.09370 0.09370 0.09370 0.09370 General Obligation Debt Rate Redevelopment Rate (4)1.00697 1.00604 1.00541 1.00450 1.00430 1.00430 1.00370 1.00370 Total Direct Rate (5)0.09354 0.09410 0.08976 0.09254 0.09188 0.09197 0.09202 0.09120 0.09076 0.08886 (1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approval bonds. (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. (3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in the tax ratio figures. (4) RDA rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/2013 and years thereafter. (5) Because basic and debt rates vary by tax rate area individual rates cannot be summed. Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information. Source: L.A. County Assessor 2004/05 - 2013/14 Tax Rate Table City of Temple City Revenue Capacity General Fund Revenues – Last Ten Fiscal Years 117 Fiscal year Licenses and Charges for Investment Rental Other Total ended Taxes Permits Intergovernmental Services Fines Income Income Revenues Taxes 2005 3,615,329 $ 1,144,414 $ 2,923,061$ 529,768 $ 271,007$ 382,601 $ 32,005$ 220,834 $ 9,119,019$ 2006 3,970,043 1,092,015 2,721,891 585,885 256,879 897,594 33,698 264,039 9,822,044 2007 4,359,660 1,200,311 3,068,372 621,383 254,024 1,167,407 37,413 276,738 10,985,308 2008 4,578,801 1,385,267 3,482,229 674,154 242,337 1,034,417 90,108 287,075 11,774,388 2009 4,542,514 950,216 3,051,888 662,360 287,575 694,444 80,794 305,020 10,574,811 2010 3,830,602 1,096,347 3,549,571 542,976 534,287 442,363 65,928 348,851 10,410,925 2011 4,451,470 1,028,284 3,229,851 631,355 423,041 409,097 57,442 414,145 10,644,685 2012 4,581,975 1,345,183 3,196,237 757,496 646,498 378,269 57,268 128,805 11,091,731 2013 4,924,493 1,335,720 3,310,180 957,437 521,440 132,565 53,369 269,647 11,504,851 2014 5,113,739 1,434,610 3,480,366 1,510,392 554,805 203,571 68,411 246,206 12,612,100 Source: City of Temple City basic financial statements City of Temple City Revenue Capacity Principal Property Taxpayers Current Fiscal Year and Nine Fiscal Years Ago 118 Percentage Percentage of Total City of Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Calac Investment 21,453,398$ 1 0.56%18,580,945$ 1 0.79% Gradiazio Investment Company 14,824,055 2 0.38%12,839,259 2 0.55% (Pending Appeals On Parcels) Gateway Limited Partnership 12,296,100 3 0.32% (Pending Appeals On Parcels) Ralphs Grocery Company 7,385,304 4 0.19%6,274,886 4 0.27% 5600 Gracewood LLC 7,051,960 5 0.18% James J. and Sue Femino Trust 5,774,605 6 0.15%5,001,441 5 0.21% Sunnyslope Water Company 5,303,592 7 0.14% Barchester Temple City 5,222,381 8 0.14% Golden Pineapple LLC 5,062,586 9 0.13% Xiaochun Zou and Peiwen Chang 4,889,279 10 0.13% Santa Anita Convalescent Hospital 6,906,819 3 0.29% TCD Enterprise Inc.4,514,596 6 0.19% 5561 Sultana LLC 4,176,546 7 0.18% Miller Drive Partnership 3,530,762 8 0.15% Ramshorn Corp.3,412,894 9 0.15% Preetpal Neeshi LLC 3,407,878 10 0.14% Top Ten Total 89,263,260$ 2.32%68,646,026$ 2.92% City Total 3,858,234,256$ 2,352,749,291$ Source: L.A. County Assessor 2013/14 Combined Tax Rolls and the SBE Non Unitary Tax Roll 2013-2014 2004-2005 City of Temple City Revenue Capacity Top 25 Sales Tax Producers – Current Fiscal Year 119 Business Name Business Category 99 Cents Only Variety Stores AT & T Mobility Electronics/Appliance Stores Chevron Service Stations CVS Pharmacy Drug Stores Green Island Restaurant Casual Dining Hometown Buffet Fast-Casual Restaurants In N Out Burgers Quick-Service Restaurants K Mart Discount Department Stores McDonalds Quick-Service Restaurants Modern Lighting Plumbing/Electronics Supplies Office Depot Office Supplies/Furniture OO Kook BBQ Casual Dining Pep Boys Automotive/Supply Stores Peters Mobil Service Service Stations Ralphs Grocery Stores Liquor Rite Aid Drug Stores Seafood Village Casual Dining Super A Foods Grocery Stores Liquor Super Pets Specialty Stores Temple City Mobil Service Stations Temple City Powersports Boats/Motorcycles Temple City Shell Service Stations The Hat Quick-Service Restaurants TJ Maxx Family Apparel Zen Buffet Casual Dining Note: Firms listed alphabetically. Period April 2013 Thru March 2014 Source: Hinderliter, de Llamas & Associates, State Board of Equalization City of Temple City Debt Capacity Direct and Overlapping Debt 120 Percent Gross bonded applicable Net bonded debt balance to City debt Direct debt -$ 0.000 -$ Overlapping debt 337.05 Metropolitan Water District (1)64,271,492 0.407 261,481 473.51 El Monte City SD DS 1999 Series A 565,000 10.381 58,652 473.54 El Monte City SD DS 2004 Refund Bonds 33,505,000 10.381 3,478,116 473.55 El Monte City SD DS 2004 Series A 2005 13,852,013 10.381 1,437,962 473.56 El Monte City SD DS 2005 Ref Bonds 1,359,250 10.381 141,102 473.57 El Monte City SD DS 2004 Series B 8,495,000 10.381 881,856 473.60 El Monte City SD DS 2008 Series A 9,150,747 10.381 949,929 473.61 El Monte City SD DS 2008 Series A-1BABS 18,540,000 10.381 1,924,617 473.62 El Monte City SD DS 2008, Series B 5,998,159 10.381 622,662 629.52 Rosemead SD DS 2000 Series C 6,250,000 2.732 170,724 629.53 Rosemead SD DS 2007 Series D 13,025,000 2.732 355,790 629.54 Rosemead SD DS 2008 Series A 8,326,503 2.732 227,446 629.55 Rosemead SD DS 2011 Ref Bond 8,915,000 2.732 243,521 629.56 Rosemead SD DS 2012 Ref Bonds 5,385,000 2.732 147,096 745.51 El Monte Union HSD 2002 Series A 1,185,000 6.007 71,186 745.52 El Monte Union HSD 2002 Series B 1,210,000 6.007 72,688 745.53 El Monte Union HSD 2006 Refund Bonds 33,482,675 6.007 2,011,390 745.54 El Monte Union HDS 2002 Series C 27,565,000 6.007 1,655,900 745.55 El Monte Union HDS 2008 Series A 52,339,850 6.007 3,144,188 745.56 El Monte Union HDS 2008 Series B 30,297,787 6.007 1,820,065 805.55 LA CCD DS 2003 Taxable Series 2004B 74,235,000 0.018 13,724 805.56 LA CCD DS 2001 Taxable Series 2004A 8,850,000 0.018 1,636 805.57 LA CCD DS Refunding 2001 Series 2005A 403,320,000 0.018 74,563 805.58 LA CCD DS 2001, 2006 Series B 266,185,000 0.018 49,211 805.59 LA CCD DS 2003, 2006 Series C 381,585,000 0.018 70,545 805.60 LA CCD DS 2001, 2008 Series E-1 267,340,000 0.018 49,424 805.62 LA CCD DS 2003, 2008 Series F-1 341,565,000 0.018 63,146 805.64 LA CCD DS 2008, 2009 Taxable Series A 350,000,000 0.018 64,706 805.65 LA CCD DS 2008, 2009 Taxable Series B 75,000,000 0.018 13,865 805.66 LA CCD DS 2008, 2010 Taxable Series D 219,889,950 0.018 40,652 805.67 LA CCD DS 2008, 2010 Taxable Series E (BABS) 900,000,000 0.018 166,386 805.68 LA CCD DS 2008, 2010 Series C 177,885,060 0.018 32,886 805.70 LA CCD DS 2013 Refund Bonds 54,480,000 0.018 10,072 805.71 LA CCD DS 2008 Series G 220,000,000 0.018 40,672 812.51 Pasadena CCD DS 2006 Series B 26,985,000 5.645 1,523,250 812.52 Pasadena CCD DS 2006 Refunding Bond Series C 19,443,312 5.645 1,097,536 812.53 Pasadena CCD DS 2002, 2006 Series D 25,645,000 5.645 1,447,610 812.54 Pasadena CCD 2002, 2009 Series E (BABS)25,295,000 5.645 1,427,853 817.51 Arcadia Unified DS 1993 Series A 3,860,109 3.138 121,122 817.53 Arcadia Unified DS 1993 Series C 1,008,429 3.138 31,642 817.54 Arcadia Unified DS Ref. Bonds 1993 2005 Series A 2,735,000 3.138 85,819 817.55 Arcadia Unified DS 2006 Series A 185,150,423 3.138 5,809,631 920.52 San Gabriel USD DS 2002 Series B 6,111,492 2.545 155,534 920.53 San Gabriel USD DS 2005 Ref Bonds 16,155,000 2.545 411,136 920.54 San Gabriel USD DS 2002 Series 2007 C 10,557,878 2.545 268,692 920.55 San Gabriel USD DS 2008 Series A 17,748,245 2.545 451,683 920.56 San Gabriel USD DS 2010 Ref Bonds 6,400,000 2.545 162,877 920.57 San Gabriel USD DS 2008 Series B 38,396,424 2.545 977,168 920.58 San Gabriel USD DS 2012 Ref Bond Series B 2,665,000 2.545 67,823 947.51 Temple City USD DS 1998 Series A 2,417,248 70.721 1,709,509 947.52 Temple City USD DS 1998 Series B 4,771,501 70.721 3,374,467 947.53 Temple City USD DS 2005 Refunding Bond 9,340,000 70.721 6,605,368 947.54 Temple City USD DS 2012 Series A 39,998,164 70.721 28,287,217 Total overlapping debt 74,383,796 Total direct and overlapping debt 74,383,796$ 2013-2014 Assessed Valuation:3,758,781,142$ Debt to Assessed Valuation Ratios: Direct debt 0.00% Overlapping debt 1.98% Total debt 1.98% (1) This fund is a portion of a larger agency, and is responsible for debt in areas outside the City. (2) Debt figures include general obligation debt which is being repaid through property taxes. It excludes revenue, mortgage revenue, interim financing obligations, non-bonded capital lease obligations, and certificates of participation. Source: HdL Coren & Cone, Los Angeles County Assessor Combined 2013/14 Lien Date Tax Rolls City of Temple City Demographic and Economic Statistics – Last Ten Fiscal Years 121 Per Capita % of Pop 25+ % of Pop 25+ Calendar Personal Unemployment with with Year Population Income Rate Median Age High School Degree Bachelor's Degree 2004 35,202 $21,708 4.1%--- 2005 35,396 $22,513 3.4%--- 2006 35,336 $23,709 3.0%--- 2007 35,360 $24,504 3.2%--- 2008 35,423 $24,688 4.8%--- 2009 35,615 $24,112 7.5%40.5 87.1%32.4% 2010 35,892 $27,889 8.2%40.8 86.3%32.2% 2011 35,749 $26,194 8.0%40.6 86.5%36.0% 2012 35,952 $26,347 6.0%40.9 85.4%35.9% 2013 36,134 $25,306 4.9%41.5 86.0%35.9% Notes and Data Sources: Population: California State Department of Finance. Unemployment Data: California Employment Development Department 2004-2009 Income, Age, and Education Data: ESRI- Demographic Estimates ae based on the last available Census. Projections are developed by incorporating all of the prior census data release to date. Demographic Data is totaled from Census Block Groups that overlap the City's boundaries. 2010 and later - Income, Age, and Education Data - US Census Bureau, most recent American Community Survey. City of Temple City Operating Information Construction Activity - Last Ten Fiscal Years 122 New Calendar New New Value of year ended Residential Commercial Total Demolitions Construction 2005 22,514,787$ 1,916,300$ 24,431,087$ 238,100 $ 24,192,987$ 2006 21,957,999 1,980,100 23,938,099 258,150 23,679,959 2007 25,630,380 3,240,390 28,870,770 209,560 28,661,210 2008 20,980,153 1,340,500 22,320,653 123,390 23,537,763 2009 19,127,998 3,892,187 23,020,185 99,000 22,921,185 2010 20,200,934 2,156,535 22,357,469 162,000 22,195,469 2011 23,754,355 1,175,540 24,929,895 139,048 24,790,847 2012 19,536,413 2,490,427 22,026,840 144,000 21,882,840 2013 21,298,596 14,433,160 35,731,756 322,000 35,409,756 2014 32,964,118 1,298,205 34,262,323 429,900 33,832,423 Source: City of Temple City Community Development Department City of Temple City Operating Information Full-Time Equivalent City Employees by Function – Last Ten Fiscal Years 123 Function 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General Government Full Time 10.86 8.85 7.85 7.80 7.80 7.80 7.80 7.80 8.80 9.95 Part Time 0.79 0.83 0.86 0.64 0.61 0.65 0.85 3.11 3.11 1.85 11.65 9.68 8.71 8.44 8.41 8.45 8.65 10.91 11.91 11.80 Community Development Full Time 8.00 7.10 8.10 7.15 7.15 7.15 6.10 6.10 6.20 6.90 Part Time 0.00 0.00 0.01 0.44 0.16 0.26 0.06 1.64 2.64 1.60 8.00 7.10 8.11 7.59 7.31 7.41 6.16 7.74 8.84 8.50 Parks & Recreation Full Time 15.09 14.70 12.70 11.70 11.70 11.70 12.15 12.15 12.25 12.05 Part Time 11.18 11.78 16.68 19.56 21.88 21.46 18.96 22.66 18.92 26.05 26.27 26.48 29.38 31.26 33.58 33.16 31.11 34.81 31.17 38.10 Public Safety Full Time 5.60 4.40 4.40 5.40 5.40 5.40 7.05 7.05 7.65 7.55 Part Time 0.00 0.00 0.00 0.00 0.00 1.43 2.33 4.22 4.07 4.51 5.60 4.40 4.40 5.40 5.40 6.83 9.38 11.27 11.72 12.06 Public Works Full Time 3.45 2.95 2.95 3.95 3.95 3.95 2.90 2.90 3.10 3.55 Part Time 0.07 0.00 0.03 0.04 0.00 0.34 0.00 0.28 1.79 0.46 3.52 2.95 2.98 3.99 3.95 4.29 2.90 3.18 4.89 4.01 Full Time Total 43.00 38.00 36.00 36.00 36.00 36.00 36.00 36.00 38.00 40.00 Part Time Total (1)12.04 12.61 17.58 20.68 22.65 24.14 22.20 31.91 30.53 34.47 TOTAL 55.04 50.61 53.58 56.68 58.65 60.14 58.20 67.91 68.53 74.47 Note: (1) 2,080 Hours of Part Time equals to 1 Full Time Equivalent Source: City of Temple City Administrative Services Department City of Temple City Operating Information Operating Indicators by Function – Last Ten Fiscal Years 124 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Public Safety: Arrests 367 389 438 513 559 411 514 949 1,105 852 626 Parking Citations 4,102 8,190 6,385 7,089 6,947 6,879 12,681 9,024 9,926 10,025 10,260 Public Works: Sewers new connections 126 59 83 78 55 30 36 25 30 59 94 Parks & Recreation: Number of rereation classes 400 352 401 398 341 363 330 390 400 368 380 Number of facility rentals N/A N/A N/A 904 1,050 1,076 1,179 1,083 1,110 1,178 1,072 Source: City of Temple City Community Development Department City of Temple City Parks & Recreation Department Los Angeles County Sheriff Department