HomeMy Public PortalAbout06) 7B Comprehensive Annual Financial Report Ended June 30, 2015City Council
January 5, 2016
Page 2 of 4
5. On July 10, 2015, 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 FY Ending June 30, 2015.
6. On October 16, 2015, Vasquez & Company completed the their field work.
7. On October 30, 2015, the Audit Standing Committee once again met with City staff
and audit staff from Vasquez & Company, LLP, and discussed the results of the field
work.
8. On December 10, 2015, the Audit Standing Committee met with City staff and audit
staff from Vasquesz & Company, LLP, for a review of the final Draft of the CAFR.
ANALYSIS:
A CAFR is a set of United States government financial statements comprising the
financial report of a state, municipal or other governmental entity that complies with the
accounting requirements, (i.e., Generally Accepted Accounting Principles (GAAP)),
created and circulated by the Governmental Accounting Standards Board (GASB).
The CAFR accounting structure provides for standardization financial reporting. All levels
of government including federal, state, local and municipal, produce a CAFR to document
an accurate picture of institutional funds, enterprise or financial holdings, assets and total
investment incomes for those government and nongovernmental entities using the report.
Beginning with FY 2010-11, the City moved from a basic financial statement presentation to
the more transparent, CAFR reporting. Most governmental agencies utilize this type of
reporting, providing for ease of comparing financial 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 this Circular, commonly known as the "Single
Audit". For the FY 2014-15, 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 City Council for a recommendation of receive and file.
Vasquez & Company, LLP, has issued an unmodified ("clean") opinion on the City financial
statements for the year ended June 30, 2015. The City also provides a narrative
introduction, overview and analysis of the CAFR in the form of Management's Discussion
City Council
January 5, 2016
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and Analysis (MD&A). It can be found immediately following the independent auditors'
report.
The City's net position increased by $4.2 million from $64.6 million (restated) as of June
30, 2014, to $68.8 million as of June 30, 2015, as a result of this year's operations. Total
revenue from all sources was $21.2 million and the total cost of all City programs was
$17.0 million.The City's total debt increased by $477,000 during the current fiscal year.
The key factors in this increase are the net increase in Other Post Employment Benefits
(OPEB) obligation of $440,000 and the net increase in the compensated absences liability
by $37,000.
The General Fund revenues of $15.1 million exceeded General Fund expenditures of
$12.7 million which provided for an excess of revenues over expenditures of $2.4 million.
Further, after the net transfers out, primarily for capital projects, the General Fund realized
an increase in fund balance of $2.0 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 $4.9 million for FY 2014-15.
Staff will once again submit the FY 2014-15 CAFR to the GFOA for the Excellence in
Financial Report Award. The GFOA recognizes innovative programs, contributions to the
practice of government finance that exemplify outstanding financial management. The
award stresses practical, documented work that offers leadership to the profession and
promotes improved public finance.
For greater transparency and accountability, the City Council appointed an Audit Standing
Committee, making it directly responsible for monitoring the work performed by the
independent auditor. As outlined in the Audit Committee Charter, also adopted by the
City Council, the responsibilities of the Audit Standing Committee include:
• Assisting the City Council in monitoring, overseeing and assessing the City's:
~ Accounting and financial reporting processes;
~ 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
City Council
January 5, 2016
Page 4 of 4
~ Management's ability to evaluate adequacy of internal controls and capably
identify and control risks posed by its current and planned activities.
• Providing an avenue for communication among the independent auditors, City
management and the City Council.
The Committee also has such other duties as set forth in this charter and as directed by
the City Council. As noted above, the Audit Standing Committee has met on a number of
occasions throughout the Fall, has completed their due diligence as outlined in the Audit
Standing Committee Charter and has brought forward their recommendation to receive and
file the CAFR for the year ended June 30, 2015.
FISCAL IMPACT:
This action of receiving and filing the CAFR does not have a fiscal impact on the FY 2015-
16 City Budget. However, staff has begun the mid-year budget analysis and will be
incorporating the results of actual spending in the FY 2014-15, as reflected in the CAFR, in
the FY 2015-16 Mid Year Budget Report, which will be presented to the entire City Council
on February 16,2015.
CITY STRATEGIC GOALS:
The City Council is requested to receive and file the First Quarter Financial Status Report
at the close of the first quarter of FY 2015-16 and further City's Strategic Goal to promote
Good Governance.
ATTACHMENT:
A. Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2015
CITY OF TEMPLE CITY
CALIFORNIA
Comprehensive Annual
Financial Report
Fiscal Year Ended
June 30,2015
CITY OF TEMPLE CITY,
CALIFORNIA
Comprehensive Annual Financial Report
Year Ended June 30, 2015
Prepared by:
ADMINISTRATIVE SERVICES DEPARTMENT
Tracey L. Hause
Administrative Services Director
City of Temple City
Table of Contents
INTRODUCTORY SECTION
Letter of Transmittal
List of Elected Officials and Management Personnel
Organizational Chart
Certificate of Achievement for Excellence in Financial Reporting (GFOA)
FINANCIAL SECTION
Report of Independent Auditors
Management's Discussion and Analysis
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position
Statement of Activities
Fund Financial Statements
Description of Major Funds
Balance Sheet
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
Statement of Revenues, Expenditures, and Changes in Fund Balances
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
Proprietary Fund
Description of Proprietary Fund
Statement of Net Position
Statement of Revenues, Expenses, and Changes in Net Position
Statement of Cash Flows
Fiduciary Funds
Description of Fiduciary Funds
Statement of Fiduciary Net Position
Statement of Changes in Fiduciary Net Position
Notes to Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule
General Fund
Capital Improvement Fund
Notes to Budgetary Comparison Schedule
Schedule of Funding Progress-Other Postemployment Benefits
Schedule of Proportionate Share of the Net Pension Liability
Schedule of Contributions
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65
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68
69
SUPPLEMENTARY SCHEDULES
Nonmajor Governmental Funds
City of Temple City
Table of Contents
Combining Balance Sheet 70
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances 71
Non major Special Revenue Funds
Description of Non major Special Revenue Funds 72
Combining Balance Sheet 75
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 81
Schedule of Revenues, Expenditures and Changes in Fund Balances-
Budget and Actual
Permanent Fund 87
Traffic Safety Fund 88
COPS Fund 89
Public Transportation-Prop A Fund 90
Public Transportation-Prop C Fund 91
Used Oil Fund 92
State Gas Tax Fund 93
CDBG Fund 94
Bicycle and Pedestrian Fund 95
Air Quality Improvement Fund 96
Measure R Fund 97
Affordable Housing Fund 98
Sewer Reconstruction Fund 99
HSIP Fund 100
1992/1996 Park Bond Fund 101
State Recycling Fund 102
Park Acquisition Fund 103
Lighting and Landscape District Fund 104
Congestion Mitigation & Air Quality Fund 105
Public Art Fund 106
Safe Routes to School Fund 107
Environmental Protection Agency 1 08
modest next year, with inflation expected at 2.2%. Similarly, per capita income will climb by 3.5% this
year and 3.8% next year, after a 3.8% increase in 2014. Since much of the gain in income is
expected to be spent, local consumption as measured by total taxable sales will rise by 4.6% this
year and by 7.9% next year, following an increase of 7.1% in 2014. This means local sales and use
tax revenues will continue to climb, putting local government agencies on a sounder financial footing.
Throughout much of the state, the housing market saw a bounce in 2015. Los Angeles County was
no exception. The median sales price of a home in Los Angeles County was $492,000 in July, up
4. 7% compared with a year earlier. Moreover, sales of homes increased 9.6% year-to-date through
the first July 2015, putting the market on track to surpass last year's total and match or surpass the
2013 sales total, which was the strongest year of the last eight years.
MAJOR ACCOMPLISHMENTS
The City of Temple City is and strives to continuously be a Great Public Service Oriented Organization
-and works toward be recognized by its citizens and its stakeholders for its innovative and
exceptional service to the community. Accomplishments for the Fiscal Year (FY) 2014-15 include:
Vision and Long-Range Planning
• Continued the General Plan process, which establishes both vision and policies to guide
the physical development of Temple City through 2050.
• Public Art Commission established and is working on a program creating Art in Public
Places.
• Undertook a comprehensive facility master plan for the City's existing parks.
Sound Fiscal Policy
• Completed performance based budgeting, which aligns limited resources with community
priorities to provide sound basis for long-term funding decisions.
• Completed the fiscal health model providing for comprehensive forecasting of revenues
and expenditures.
• Continued to receive unmodified (i.e., "clean") audit findings on the City's financial
reporting via enhanced fiscal controls and checks and balances.
• Received recognition for excellence in financial reporting from Government Finance
Officers Association of the United States and Canada.
• Realized increases in investment returns against a national trend of flat interest rates.
• Successfully negotiated a two year Memorandum of Understanding (through June 30,
2016) with Temple City Employees' Association.
• Fulfilled Community Development Block Grant (CDBG) program drawdown requirement
and avoided recapture of funds.
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Public Health and Safety
• Continued emergency preparation and training for residents through the Community
Emergency Response Team (CERT).
• Continued the successful Neighborhood Watch Program including monthly neighborhood
meetings.
• Completed relocation and outfitting of the new Emergency Operations Center in the Civic
Center building.
• Completed traffic safety enhancements on Muscatel Avenue.
• Installed sidewalks, curb ramps, and pedestrian safety enhancements around nine
schools through the Safe Routes to School grant program.
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
• Saw sustained growth in property tax revenue, affirming effectiveness of the City and
community's collaborative approach to neighborhood enhancement
• Celebrated 71 years of the Camellia Festival.
• Continued to secure sponsorships to enhance the summer Concerts in Parks.
• City continues to applaud and recognize volunteers for lending helping hands.
• Applied for and was awarded a grant for the installation of a rubberized walking/jogging
path at Live Oak Park.
• Hosted Neighborhood Cleanup Day in northwest area of city.
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.
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" I m p r o v e d p u b l i c m e e t i n g s p a g e i n t e g r a t e s m u l t i m e d i a f u n c t i o n s .
" O n l i n e a g e n d a s n o w l i n k e d t o v i d e o o f C o u n c i l d i s c u s s i o n , a c t i o n .
S u s t a i n a b l e I n f r a s t r u c t u r e
" C o n t i n u e d i m p l e m e n t a t i o n o f t h e P a v e m e n t M a n a g e m e n t P r o g r a m b y r e s u r f a c i n g a b o u t 2 0
s t r e e t s e g m e n t s i n c o n j u n c t i o n w i t h S a f e R o u t e s t o S c h o o l p e d e s t r i a n i m p r o v e m e n t s .
" C o m p l e t e d a p r o j e c t a t L i v e O a k P a r k t o c o n v e r t 2 3 e x i s t i n g H I D w a l k w a y l i g h t s t o m o r e
e n e r g y e f f i c i e n t L E D l i g h t s .
O T H E R F I N A N C I A L I N F O R M A T I O N
I n t e r n a l C o n t r o l
M a n a g e m e n t a s s u m e s f u l l r e s p o n s i b i l i t y f o r t h e c o m p l e t e n e s s a n d r e l i a b i l i t y o f t h e i n f o r m a t i o n
c o n t a i n e d i n t h i s r e p o r t , b a s e d u p o n a c o m p r e h e n s i v e f r a m e w o r k o f i n t e r n a l c o n t r o l t h a t i t h a s
e s t a b l i s h e d f o r t h i s p u r p o s e . T h e i n t e r n a l c o n t r o l s t r u c t u r e i s d e s i g n e d t o p r o t e c t t h e C i t y ' s a s s e t s
f r o m l o s s , t h e f t , o r m i s u s e a n d t o e n s u r e t h a t a d e q u a t e a c c o u n t i n g d a t a i s c o m p i l e d f o r t h e
p r e p a r a t i o n o f f i n a n c i a l s t a t e m e n t s i n c o n f o r m i t y w i t h G A A P . B e c a u s e t h e c o s t o f i n t e r n a l c o n t r o l
s h o u l d n o t e x c e e d a n t i c i p a t e d b e n e f i t s , t h e o b j e c t i v e i s t o p r o v i d e r e a s o n a b l e , r a t h e r t h a n a b s o l u t e
a s s u r a n c e t h a t t h e f i n a n c i a l s t a t e m e n t s a r e f r e e o f a n y m a t e r i a l m i s s t a t e m e n t s .
B u d g e t a r v a n d A c c o u n t i n g S y s t e m
T h e C i t y i s r e q u i r e d t o a d o p t a b u d g e t f o r t h e f o l l o w i n g y e a r b e f o r e t h e e n d o f e a c h f i s c a l y e a r . T h e
o b j e c t i v e o f b u d g e t a r y c o n t r o l s i s t o e n s u r e c o m p l i a n c e w i t h l e g a l p r o v i s i o n s e m b o d i e d i n t h e a n n u a l
a p p r o p r i a t e d b u d g e t a p p r o v e d b y t h e C i t y C o u n c i l . T h e C i t y ' s b u d g e t a r y c o n t r o l i s m a i n t a i n e d a t t h e
i n d i v i d u a l d e p a r t m e n t a l l e v e l a n d a n y c h a n g e i n t h e a d o p t e d a p p r o p r i a t i o n s b y a d e p a r t m e n t
r e q u i r e s a p p r o v a l f r o m t h e C i t y M a n a g e r a n d / o r C i t y C o u n c i l .
A W A R D S A M D A C K N O W L E D G E M E N T S
T h e G o v e r n m e n t F i n a n c e O f f i c e r s A s s o c i a t i o n ( G F O A ) a w a r d e d a C e r t i f i c a t e o f A c h i e v e m e n t f o r
E x c e l l e n c e i n F i n a n c i a l R e p o r t t o t h e C i t y o f T e m p l e C i t y f o r i t s C o m p r e h e n s i v e A n n u a l F i n a n c i a l
R e p o r t ( C A F R ) f o r t h e f i s c a l y e a r e n d e d J u n e 3 0 , 2 0 1 4 . T h i s w a s t h e t h i r d y e a r t h a t T e m p l e C i t y
h a s r e c e i v e d t h i s p r e s t i g i o u s a w a r d . I n o r d e r t o b e a w a r d e d a C e r t i f i c a t e o f A c h i e v e m e n t , a r e p o r t
m u s t b e p u b l i s h e d t h a t s a t i s f i e s b o t h G A A P a n d a p p l i c a b l e l e g a l r e q u i r e m e n t s .
A C e r t i f i c a t e o f A c h i e v e m e n t i s v a l i d f o r a p e r i o d o f o n e y e a r o n l y . W e b e l i e v e t h a t o u r c u r r e n t C A F R
c o n t i n u e s t o m e e t t h e C e r t i f i c a t e o f A c h i e v e m e n t P r o g r a m ' s r e q u i r e m e n t s a n d w e a r e s u b m i t t i n g i t t o
t h e G F O A t o d e t e r m i n e i t s e l i g i b i l i t y f o r a n o t h e r c e r t i f i c a t e .
i v
City of Temple City, California
List of Elected Officials and Management Personnel
June 30, 2015
City Council
Tom Chavez, Mayor
Vincent Yu, Mayor Pro Tempore
Cynthia Sternquist, Councilmember
Nanette Fish, Councilmember
William Man, Councilmember
Administration and Department Heads
City Manager Bryan Cook
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
Paries and Recreation Director Cathy BmToughs
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Organizational Chart
City Council
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I I
Parks and Planning Transportation & Public Arts Recreat ion Commission City Manager City Attorney Public Safety Commission Commission Commission
Management Administrative Community Parks and
Services Services Development Recreation
Department Department Department Department
Planning I Building Public Safety Public Works I
Maintenance Division Division Division
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-~V asauez WIJ & ComPanY LLP
Ce1 ti fied Pub lic Accoun tant s Jnd Busi ness Consultan t s
REPORT OF INDEPENDENT AUDITORS
The Honorable Mayor and the Members of the City Council
City of Temple City, California
Report on the Financial Statements
801 Sou th Grand Ave., Suite 400
l os Angeles, CA 90017
Ph. (213) 873-1700
Fax (213) 873-1777
www.vasquezcpa.com
OFFI CE LOCATIONS:
los Angeles
Sacramento
San Dieg o
We have audited the accompanying financial statements of the governmental activities, each major
fund, and the aggregate remaining fund information of the City of Temple City, California (the City),
as of and for the year ended June 30 , 2015 , and the related notes to the financi al statements, which
collectively comprise the City's basi c 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 th e audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedu res 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 co nsiders internal control relevant to the entity 's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of acco unting policies used and the reasonableness of
signifi cant acco unting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence w e have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
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City of Temple City
Management's Discussion and Analysis
June 30, 2015
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, 2015. 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 $3.2 million from $65.3 million (as restated) as of June
30, 2014, to $68.6 million as of June 30, 2015, as a result of this year's operations;
• The total revenue from all sources was $21.2 million;
• The total cost of all City programs was $18.0 million; and
• The City's total debt increased by $477 thousand during the current fiscal year. The key
factors in this increase are the net increase in Other Post Employment Benefits (OPEB)
obligation of $440 thousand and the net increase in the compensated absences liability by
$37 thousand.
• The City reported a net pension liability amounting to $4.1 million as of the end of the fiscal
year 2014-15 as a result of implementing GASB Statement No, 68.
Fund Financial Statements:
• As of June 30,2015, the City's governmental funds reported combined ending fund balances
of $24.3 million, an increase of $4 million over the prior fiscal year. Approximately $1.5 million
of the $24.3 million balance is unassigned and is available for spending at the government's
discretion;
• As of June 30, 2015, the total fund balance of the City's General Fund was $20 million,
an increase of $2.0 million from the prior year level of $18 million; and
• In the General Fund, revenues exceeded expenditures by $2.4 million, before other
financing sources/uses.
Implementation of New Accounting Pronouncements -During the fiscal year ended June 30, 2015,
the City implemented the following new Statements of the Governmental Accounting Standards
Board (GASB): GASB Statement No. 68, Accounting and Financial Reporting for Pensions -an
amendment of GASB Statements No. 27 and 50 and GASB Statement No. 71, Pension Transition
for Contributions made subsequent to the Measurement Date -an amendment of GASB Statement
No. 68. These statements required the City to report unfunded pension liability in the City's financial
statements starting in fiscal year 2014-2015.
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.
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City of Temple City
Management's Discussion and Analysis
June 30, 2015
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.
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 2015.
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 decreased by $2.0 million during FY 2014-15. Total revenues exceeded the
total expenses by $3.2 million during the year. However, the City's beginning net position was
reduced by $5.1 million to retroactively report the effect of implementing GASB Statement No. 68.
The largest portion of the City's net position is its investment in capital assets (e.g. land,
infrastructure, building and equipment) representing 76% 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, $4.9 million or 7%, represents resources that are
subject to external restrictions on how they may be used. The remaining balance of unrestricted net
assets of $11.2 million or 17% may be used to meet the government's ongoing obligations to citizens
and creditors.
City of Temple City
Condensed Statement of Net Position
Increase
2015 2014 {Decrease}
Current and other assets $ 28,893,134 $ 25,012,243 $ 3,880,891
Capital assets 52,166,900 51,168,623 998,277
Total assets 81,060,034 76,180 866 4,879,168
Deferred outflows of resources 599,617 599,617
Current and other liabilities 4,256,003 2,789,568 1,466,435
Long-term liabilities 7,394,963 2849816 4,545,147
Total liabilities 11 ,650,966 5 639 384 6,011,582
Deferred inflows of resources 1,457,770 1,457,770
Net position, investment in capital assets 52,166,900 51,168,623 998,277
Restricted 4,898,508 4,083,955 814,553
Unrestricted 11,485,507 15,288,904 (3,803,397)
Total net position $ 68 550,915 $ 70,541,482 $ (1 ,990,567)
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City of Temple City
Management's Discussion and Analysis
June 30, 2015
Statement of Activities. Governmental activities increased the City's net position by $3.2 million for
FY 2014-15. The total revenue for the fiscal year is $21.2 million, which is an increase of $1.1
million from the prior year. The total expenses increased by $618 thousand to $18 million from the
prior year total of $17.4 million.
The net position balance at the beginning of fiscal year 2015 was restated to retroactively report the
net pension liability as of the beginning of the fiscal year as a result of implementing GASB
Statement No. 68, Accounting and Financial Reporting for Pensions. The net pension liability
reported at the beginning of the fiscal year was $5.1 million. For purposes of presenting the
summarized comparative statement of activities in this section of the report, the 2014 financial
statements were not restated due to lack of information. The following table presents the
comparative revenue and expenditure data for fiscal years ended June 30,2015 and 2014.
City of Temple City
Condensed Statement of Changes in Net Position
Increase
2015 2014 {Decrease}
Revenues
Program revenues
Charges for services $ 4,159,576 $ 3,677,816 $ 481,760
Operating contributions and grants 5,806,068 7,381,556 (1 ,575,488)
General revenues
Taxes 5,422,265 5,113,739 308,526
Intergovernmental 4,896,280 3,483,825 1,412,455
Investment income 180,197 203,571 (23,374)
Other revenue 778,693 237,723 540,970
Total revenues 21,243,079 20,098,230 1 '144,849
Expenditures
General government 3,663,847 3,512,190 151,657
Community development 3,314,298 2,222,569 1,091,729
Public safety 5,005,641 5,718,966 (713,325)
Public works 3,065,241 2,970,264 94,977
Community services 2,940,626 2,947,479 (6,853)
Total expenditures 17,989,652 17,371,468 618,184
Increase in net position 3,253,427 2,726,762 526,665
Net position, beginning of year 65 297,488 67,814,720 (2,517,232)
Net position, end of year $ 68,550,915 $ 70,541,482 $ (1 ,990,567)
Key elements of the significant revenues in FY 2014-15 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 tax and sales
tax.
• During the year, grant funds were less than the prior year as reimbursements for the
improvements of Rosemead Boulevard Beautification Project were significant in FY 2013-14.
• Intergovernmental revenue, i.e., Motor Vehicle In-Lieu Tax from the Slate of California, also
realized an increase.
7
City of Temple City
Management's Discussion and Analysis
June 30, 2015
Expenses of the governmental activities totaled $17.0 million, which is a decrease of $382 thousand
or 2.2% from the prior year. Most expenses of the various governmental activities increased during
the year, which include community development ($91 thousand), general government ($152
thousand), and public works ($94 thousand). Public Safety decreased during the year ($713
thousand) as well as community services ($7 thousand).
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 $24.3 million at the end of the fiscal year.
The General Fund's fund balance increased by $2.0 million during the FY 2014-15. The General
Fund revenues of $15.2 million exceeded General Fund expenditures of $12.7 million which
provided for an excess of revenues over expenditures of $2.4 million. Further, after the net transfers
out, primarily for capital projects, the General Fund realized an increase in fund balance of $2.0
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 $4.9 million for FY 2014-15.
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
$305 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 2016-17 City Budget process.
General Fund Financial and Budgetary Highlights
The General Fund is the chief operating fund of the City. The fund balance reported an increase of
$2 million at June 30, 2015. 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 26% of total General Fund expenditures, while total fund
balance represents 157% of that same amount.
Revenues: Actual revenue received was higher than the final budget by $1.7 million.
Expenditures: Actual expenditures were lower than the final budget by $2 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, 2015, the City of Temple City had
$52 million invested in capital assets, including land, buildings, improvements, furniture and
equipment, vehicles and infrastructure. See Note 7 for additional information.
9
City of Temple City
Management's Discussion and Analysis
June 30, 2015
Capital Assets at Year-End
Land and land rights
Construction in progress
Buildings and improvements
Furniture and equipment
Vehicles
Infrastructure
Subtotal
Less Depreciation
Net total, capital assets
$
$
Governmental
Activities
13,614,730
22,889,688
14,312,907
892,325
1,284,045
14,088,757
67,082,452
(14,915,552)
52,166,900
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, the net pension liability and net OPEB obligation. The net OPEB obligation pertains to
unfunded annual required contributions accrued as of June 30, 2015. A summary of other long-term
liabilities follows:
Net OPEB Obligation
Net pension liability
Compensated absences
Total
Contacting the City's Financial Management
$
Governmental
Activities
3,136,066
4,072,235
186,662
$ ===~7,;;;,3,;;,94~·;;;96~3~
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.
10
GOVERNMENT -WIDE
FINANCIAL STATEMENTS
Cash and investments
Accounts receivable
Interest receivable
ASSETS
Due from government agencies
Loans receivable
Prepaid items
Capital assets:
Capital assets, not being depreciated
Capital assets, being depreciated,
net of accumulated depreciation
DEFERRED OUTFLOWS OF RESOURCES
Accounts payable
Accrued payroll
Interest Payable
Refundable deposits
Long-term liabilities:
LIABILITIES
Portion due within one year:
Compensated absences
Portion due beyond one year:
Net pension liability
Compensated absences
Net OPES obligation
DEFERRED INFLOWS OF RESOURCES
NET POSITION
Net investment in capital assets
Restricted for:
Education scholarship
Special revenue funds
Unrestricted
City of Temple City
Statement of Net Position
June 30, 2015
$
Total assets
Total liabilities
Governmental
Activities
24,149,678
589,735
13,916
2,581,627
1 '149,094
409,084
36,504,418
15,662,482
81,060,034
599,617
2,965,927
268,589
835
999,912
20,740
4,072,235
186,662
3,136,066
11,650,966
1,457,770
52,166,900
170,212
4,728,296
11 ,485,507
Tot a I net pos ilion $ =~6"'8"', 5"'5""0"', 9"=1"'5"=
See notes to financial statements.
11
Governmental Activities
General government $
Community development
Public safety
Public works
Community services
Total Governmental Activities $
Program Revenues
Charges Operating
for Contributions
~enses Services and Grants
3,663,847 $ 168,420 $
3,314,298 1,953,925
5,005,641 469,919
3,065,241 978,835
2 940,626 588,477
17,989,652 $ 4,159,576 $
General revenues
Taxes:
Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Other taxes
Investment income
State motor vehicle in lieu
State revenue -other
Other revenue
8,089 $
785,166
106,230
4,679,133
227,450
5,806,068 $
Total general revenues
Change in net position
Net position-beginning as restated
Net position -ending
See notes to financial statements.
12
City of Temple City
Statement of Activities
Year ended June 30, 2015
Capital
Contributions
and Grants
-
-
-
-
-
-
$
$
Net
Governmental
Activities
(3,487,338)
(575,207)
(4,429,492)
2,592,727
(2, 124,699)
(8,024,008)
2,728,718
1,873,423
53,612
590,620
175,892
180,197
4,887,322
8,958
778,693
11,277,435
3,253,427
65,297,488
$ 68,550,915
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
Capital
Projects
City-Wide
General Capital
Fund Jm~rovements
ASSETS AND DEFERRED OUTFLOWS
OF RESOURCES
Assets
Cash and investments $ 19,008,408 $
Accounts receivable 277,772
Interest receivable 13,813
Due from other funds 1,134,880
Due from fiduciary funds 1,241,855
Due from other governments 374,620
Prepaid items 409,084
Loans receivables 60 875
Total assets $ 22,521,307 $
Deferred outflov.-s of resources
Total assets and deferred outflows of resources $ 22,521,307 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities
Accounts payable $ 1,163,489 $ 1,722,989
Accrued payroll 268,589
Interest payable 835
Due to other funds
Refundable deposits 999 912
Total liabilities 2,432,825 1,722,989
Deferred inflom of resources
Unavailable revenue 61,875
Total deferred inflows of resources 61,875
Fund balances
Nonspendable
Prepaid items 409,084
Loans receivable
Restricted
Committed 3,500,000
Assigned 12,868,392
Unassigned
General funds 3,249,131
Capital projects (1 ,722,989)
Total fund balances 20,026,607 (1 ,722,989)
Total liabilities, deferred inflows of
resources and fund balances $ 22,521,307 $
See notes to financial statements.
14
$
$
$
$
$
City of Temple City
Governmental Funds
Balance Sheet
June 30, 2015
Nonmajor
Governmental
Funds Total
4,835,619 $ 23,844,027
311,963 589,735
103 13,916
1,134,880
1,241,855
965,152 1,339,772
409,084
1088219 1 149 094
7,201,056 $ 29,722,363
7,201 056 $ 29,722,363
79,449 $ 2,965,927
268,589
835
1' 134,880 1 '134,880
999,912
1,214,329 5,370,143
61 875
61,875
409,084
1,088,219 1,088,219
4,898,508 4,898,508
3,500,000
12,868,392
3,249,131
(1 ,722,989)
5,986,727 24,290,345
7 201 056 $ 29,722,363
City of Temple City
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
June 30, 2015
Fund balance of governmental funds
Amounts reported for governmental activities in the statement of net
assets are different because:
Capital assets net of depreciation have not been included
as financial resources in governmental fund activity.
Cost of capital assets, not being depreciated
Cost of capital assets, being depreciated
Accumulated depreciation
Long-term liabilities applicable to the City's governmental activities are
not due and payable in the current period and, accordingly, are not
reported as governmental fund liabilities. All liabilities (both current
and long-term) are reported in the Statement of Net Assets.
Compensated absences
Net OPEB obligation
Net pension liability
Deferred outflom of resources related to pensions are not considered
financial resources and are not reported in the governmental funds.
Deferred inflolNS of resources related to pensions are not available to
for current period expenses and are not reported in the governmental
funds.
Unavailable revenue balances relating to certain long-term receivable
are not available resources in the governmental funds.
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.
Net assets of governmental activities
See notes to financial statements.
15
$ 24,290,345
36,504,418
30,578,034
(14,915,552)
(207,402)
(3, 136,066)
(4,072,235)
599,617
(1 ,457,770)
61,875
305,651
$ 68,550,915
City of Temple City
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
Year ended June 30, 2015
Capital
Proiects
City-Wide
General Capital
Fund lmQrovements
Revenues
Taxes $ 5,422,265 $ $
Licenses and permits 1,844,793
Intergovernmental 4,895,411
Charges for services 1,527,116
Fines 433,102
Investment income 148,086
Rental income 89,116
Other 819,206
Total revenues 15,179,095
Expenditures
Current:
General government 3,393,501
Community development 1,885,003
Public safety 4,878,406
Public works 617,429 99,217
Community services 1,960,414
Capital outlay 1,665,752
Total expenditures 12,734,753 1,764,969
Excess (deficiency) of revenues
over expenditures 2,444,342 (1.764,969)
Other financing sources (uses)
Transfers in 412,890 1,764,969
Transfers out (836,140)
Net other financing sources (uses) (423,250) 1,764,969
Net change in fund balance 2,021,092
Fund balance, beginning of year as restated 18,005,515 (1, 722,989)
Fund balance, end of year $ 20,026 607 $ (1,722,989) $
See notes to financial statements.
16
Nonmajor
Governmental
Funds Total
1,255,955 $ 6,678,220
1,844,793
4,069,141 8,964,552
677,762 2,204,878
14,410 447,512
5,255 153,341
89,116
41 ,461 860,667
6,063,984 21,243,079
3,393,501
(41,422) 1,843,581
4,878,406
2,029,516 2,746,162
706,963 2,667,377
1,665,752
2,695,057 17,194,779
3,368,927 4 048,300
735,635 2,913,494
(2,077,354) (2,913,494)
(1,341,719)
2,027,208 4,048,300
3,959,519 20,242,045
5,986,727 $ 24,290,345
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, 2015
Net change in Fund Balances-total governmental funds before extraordinary items
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
Depreciation expense
Expenses in the Statement of Activities are increased by the City's actuarially
determined annual required contribution for its other postemployment
benefits whereas the governmental funds only report the actual cash
payments the City made for insurance premiums on behalf retirees and
their eligible family members.
Other post employment benefits
Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures
in governmental funds.
Compensated absences
Pension expense
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.
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.
Change in net assets of governmental activities before extraordinary items
See notes to financial statements.
17
$ 4,048,300
795,247
203,030
(439,747)
(36,850)
189,172
(1,362,571)
(143,154)
$ ~==::;3~,2~5~3.~42..:7~
PROPRIETARY FUND
FINANCIAL STATEMENTS
ASSETS
Cash and investments
Total assets
LIABILITIES
Due to other governments
Total liabilities
NET ASSETS
Unrestricted
Total net position
See notes to financial statements.
19
City of Temple City
Statement of Net Position
Proprietary Fund
June 30, 2015
Self Insurance
Internal
Service Fund
Totals
$ 305,650
305,650
305,650
$ 305,650
Cash flows from ope rating activities:
Cash payments to suppliers for goods and services
Cash received for operating activities
Net cash used in operating activities
Change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
City of Temple City
Statement of Cash Flows
Proprietary Fund
Year ended June 30, 2015
Self Insurance
Internal
Service Fund
Totals
$ (192,341)
49,187
(143,154)
(143,154)
448,804
$ 305,650
Operating loss reconciles \Mth the net cash used in operating activities at June 30, 2015.
Noncash transactions:
There were no significant noncash investing, capital or financing activities during the year
ended June 30, 2015.
See notes to financial statements.
21
Agency Fund
City of Temple City
Description of Fiduciary Funds
Year ended June 30, 2015
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.
See notes to financial statements
22
ASSETS
Cash and investments
Cash v.ith fiscal agent
Accounts receivable
Total assets
LIABILITIES
Accounts payable
Interest payable
Due to City ofT emple City
Advances from the City ofT emple City
Refunding Revenue Bonds, Series 2005
Total liabilities
FIDUCIARY NET POSITION (DEFICIT)
Net position (deficit)
City of Temple City
Statement of Fiduciary Net Position
June 30, 2015
Successor Agency
Private-purpose Agency
Trust Fund Fund
$ 1,781,542 $
627,225
23,688
2,408,767 23,688
10,740 4,692
92,775
1,222,859 18,996
3,703,805
5,245,000
10,275,179 $ 23,688
$ (7,866,412)
See notes to financial statements
23
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, 2015
Additions:
Tax increment
Deductions:
Administration
Professional fees
Pass-through fees
Debt service:
Interest expense
Total additions
Total deductions
Change in net position
Fiduciary net position (deficit) at beginning of year
Fiduciary net position (deficit) at end of year
See notes to financial statements
24
$ __ _,7c::!424,"'5~92,_
744,592
30,025
13,441
1,210,271
256,095
1,509,832
(765,240)
(7,101,172)
$ __ g(7~,8;;;;6;;;,6,;;;41~2;b)
NOTES TO
FINANCIAL STATEMENTS
NOTE 1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of the Reporting Entity
The City of Temple City (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 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 ofTemple City Housing Authority
The City of 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 is
to provide safe and sanitary dwelling accommodations to persons of low income in
the City. Even though it is legally separated, it is reported as if it is part of the City
because the City Council also serves as the governing board of the Housing
Authority and the City has operational responsibility of the Housing Authority. No
separate financial statements are issued for the Housing Authority.
25
NOTE1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
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.
26
NOTE1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
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 non major
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 uses an availability period of 90 days. 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.
27
NOTE1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
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.
Proprietarv 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.
28
NOTE1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
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 $5,000 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
Furniture and equipment
Vehicles
40 years
5-7 years
5 years
Infrastructure:
Streets
Bridges
Traffic signals
Property Tax Calendar
50-80 years
50 years
20 years
The County of Los Angeles assesses, levies, and collects property taxes for the
City. Property taxes levied for the year ended June 30, 2015 were due and payable
in two installments on November 1 and February 1 and became delinquent on
December 1 o'h and April 1 o'h, respectively. At the date of incorporation, the City
elected to be a no/low property tax city as an incentive for current and prospective
residents to reside in the City.
The property tax calendar is as follows:
Lien Date:
Levy Date:
Due Date:
Delinquent Date:
March 1
July 1
First Installment-November 1
Second Installment-February 1
First Installment-December 10
Second Installment -April 1 0
32
NOTE1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
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
January 15
April10
May 15
July 31
Use of Estimates
30% Advance
Collection No. 1
10% Advance
Collection No. 2
Collection No. 3
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements, and the
reported amounts of revenues and expenses, during the reporting period. Actual
results could differ from those estimates.
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.
33
NOTE 1
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
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.
Implementation of New Accounting Pronouncements
During the fiscal year ended June 30, 2015, the District adopted the following new
Statements of the Governmental Accounting Standards Board (GASB):
• GASB Statement No. 68, Accounting and Financial Reporting for Pensions -
an amendment of GASB Statements No. 27 and 50. This statement
establishes standards for measuring and recognizing liabilities, deferred
outflows of resources, deferred inflows of resources, and
expense/expenditures of pensions that are provided by local governmental
employers through pension plans that are administered through trusts that
meet certain conditions. For defined benefit pensions, this statement identifies
the methods and assumptions that should be used to project benefit payments,
discount projected benefit payments to their actuarial present value, and
attribute that present value to periods of employee service.
• GASB Statement No. 71, Pension Transition for Contributions made
subsequent to the Measurement Date -an amendment of GASB Statement
No. 68. This statement amends paragraph 137 of Statement 68 to require that,
at transition, a government recognize a beginning deferred outflow of
resources for its pension contributions, if any, made subsequent to the
measurement date of the beginning net pension liability.
Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of
resources related to pensions, and pension expense, information about the
fiduciary net position of the City 's California Public Employees' Retirement System
(CaiPERS) plans and additions to/deductions from the Plans' fiduciary net position
have been determined on the same basis as they are reported by CaiPERS. For
this purpose, benefit payments (including refunds of employee contributions) are
recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
35
NOTE2 CASH AND INVESTMENTS (CONTINUED)
Authorized by
Investment Types Investment
Authorized b:t State Law Polic;t
Local Agency Bonds Yes
U.S. Treasury Obligations Yes
U.S. Agency Securities Yes
State of California Obligation Yes
Local Agency Obligation Yes
Banker's Acceptances* Yes
Commercial Paper** Yes
Certificates of Deposit Yes
Repurchase Agreements Yes
Reverse Repurchase Agreements*** Yes
Medium-Term Notes Yes
Mutual Funds**** Yes
Money Market Mutual Funds Yes
Collateralized Bank Deposits Yes
Mortgage PassHThrough Securities Yes
County Pooled Investment Funds Yes
L.ocal Agency Investment Fund (LAIF) Yes
Time Deposits Yes
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
Maximum Maximum
Maximum Percentage Investment
Maturit:t of Portfolio* In One Issuer*
5 years None None
5 years None None
5 years None None
5 years None None
5 years None None
180 days 40% Fed Reserve
Eligible
270 days 25% A1/P1 Rating
5 years 30% None
1 year None None
92 days 20% of base value None
5 years 30% A Rating
NIA 20% Multiple
NIA 20% Multiple
5 years None None
5 years 20% AA Rating
NIA None None
NIA None None
5 years None None
* No more than 30% of surplus funds may be invested in Bankers Acceptance of any one
commercial banks
** Commercial paper issuers must be U.S. Corporations with $500 million plus in assets. Purchases
may not represent more than 10% of outstanding paper of an issuing corporation
*** Reverse Repurchase Agreements must be made with primary dealers of the Federal Reserve
Bank of New York and the securities used for the agreements must have been held by the issuer
for at least 30 days
****No more than 10% of 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.
NIA ~ Not applicable
Investments Authorized by Debt Agreements
Investment of debt proceeds held by the 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.
37
NOTE2
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
CASH AND INVESTMENTS (CONTINUED)
Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio In One Issuer
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 1 year None None
Commercial Paper 1 year 25% 10%
Certificates of Deposit 1 year 30% None
Repurchase Agreements 30 days None None
Money Market Mutual Funds NIA 20% 10%
Local Agency Investment Fund NIA None None
(LAIF)
Investment Agreements N/A None None
Time Deposits 5 years None None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely
affect the fair value of an investment. Generally, the longer the maturity of an
investment the greater the sensitivity of its fair value to changes in market interest
rates. One of the ways that the City manages its exposure to interest rate risk is by
purchasing a combination of shorter-term and longer-term investments and by
timing cash flows from maturities so that a portion of the portfolio is maturing or
coming close to maturity over time as necessary to provide the cash flow and
liquidity needed for operations.
Information about the sensitivity of the 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:
Remaining Maturing (in Months)
12 Months or 12to60
Investment Type Total Less Months
State Investment Pool (LAIF) $ 4,310,500 $ 4,310,500 $
Los Angeles County Investment Pool 4,500,000 4,500,000
U.S. Agency Securities 8,387,135 8,387,135
Certificates of Deposit 4,700,595 334,653 4,365,942
Money Market Funds 1,144,758 1,144,758
Total $ 23,042,988 $ 10,289,911 $ 12,753,077
38
NOTE2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
Generally, credit risk is the risk that an issuer of an investment will not fulfill its
obligation to the holder of the investment. This is measured by the assignment of a
rating by a nationally recognized statistical rating organization. Presented below is
the minimum rating required by (where applicable) the California Government
Code, the City's investment policy, or debt agreements, and the actual rating, as
reported by Standard & Poor's, as of year-end for each investment type:
Minimum Rating as of June 30, 2015
Legal Not
Investment Tyee Amount Raling AAA/M+ M-Rated
State Investment Pool (LAIF) $ 4,310,500 N/A $ $ $ 4,310,500
Los Angeles County Investment Pool 4,500,000 N/A 4,500,000
U.S. Agency Securities 8,387,135 A 7,338,865 1,048,270
Certificates of Deposit 4,700,595 N/A 4,700,595
Money Market Funds 1,144,758 N/A 1,144,758
Total $ 23,042,988 $ 7,338,865 $ 1,048,270 $ 14,655,853
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, 2015, 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.
39
NOTE2
NOTE3
CASH AND INVESTMENTS (CONTINUED)
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
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.
INTERFUND RECEIVABLES AND PAY ABLES
Current interfund receivables and payables balances at June 30, 2015 are as
follows:
Receivable Fund Payable Fund Amount
General Fund Nonmajor Governmental Funds $ 1,134,880 (a)
Due from Fiduciary Funds:
General Fund Agency Fund 18,996
General Fund Successor Agency Private-Purpose
Trust Fund 1,222,859
1,241,855
Total $ _.,.:2;,;.3~7~6,~73~5~
(a) As of June 30, 2015, the nonmajor governmental funds owed $1,134,880 to the
General Fund. This interfund advance was to fund temporary cash deficits.
40
NOTE4
NOTES
INTERFUND ADVANCES
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
Noncurrent interfund advances at June 30, 2015 are as follows:
Receivable Fund
General Fund
Payable Fund Amount
Successor Agency Fund $ 2,236,825
In 1998, the City's 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, 2015 in the financial
statements.
INTERFUND TRANSFERS
lnterfund transfers for the year ended June 30, 2015 are as follows:
Transfers Out
Non major
General Governmental
Transfers In Fund Funds Total
General Fund $ $ 412,890 $ 412,890
Capital Improvement Fund 224,922 1,540,047 1,764,969
Nonmajor Governmental Funds 611,218 124,417 735,635
Total $ 836,140 $ 2,077,354 $ 2,913,494
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.
41
NOTES
NOTE7
LOANS RECEIVABLE
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
Loans receivable consist of the following at June 30, 2015:
Description
General Fund:
Low and Moderate Income Housing
Temple City Chamber of Commerce
Total
CAPITAL ASSETS
$
Amount
56,775
4,100
$==~6~0,.;;.87;.;5;..
Capital assets activity for the year ended June 30, 2015 was as follows:
Balance Balance
Jul~ 1, 2014 Additions Deletions June 30,2015
Capital assets, not being depreciated:
land $ 3,309,376 $ $ $ 3,309,376
Land improvements 1,839,413 1,839,413
Construction in progress 21,903,410 986,278 22,889,688
Infrastructure:
Land rights relating to streets 8,465,941 8,465,941
Total capital assets, not being depreciated 35 518,140 986,278 36,504,418
Capital assets, being depreciated:
Buildings 8,793,731 22,489 8,816,220
Improvements 5,434,846 61,841 5,496,687
Furniture, fixtures and equipment 1,870,304 45,668 1,023,647 892,325
Vehicles 1,275,790 8,255 1,284,045
Infrastructure:
Streets 11,246,001 694,359 11,940,360
Traffic signals 1 '190,394 1,190,394
Bridges 958,003 958,003
Total capital assets, being depreciated 30,769,069 832,612 1,023,647 30,578,034
Less accumulated depreciation for:
Buildings 2,047,267 214,320 2,261,587
Improvements 2,113,386 136,416 2,249,802
Furniture, fixtures and equipment 1,463,815 52,735 728,082 788,467
Vehicles 1,164,788 25,999 75,494 1,115,292
Infrastructure:
Streets 6,214,307 160,503 6,374,810
Traffic signals 1,157,020 10,574 1,167,594
Bridges 958 003 958,003
Total accumulated depreciation 15,118,586 600 546 803,576 14,915,552
Net capital assets being depreciated 15,650,483 232,066 220,070 15,662,482
Governmental activities capital assets, net $ 51,168,623 $ 1,218344 $ 220,070 $ 52,166,900
42
NOTE7
NOTES
NOTE9
CAPITAL ASSETS (CONTINUED)
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
Depreciation expense is charged to operations, as follows:
General Government
Community Development
Public Safety
Public Works
Community Services
Total
$ 145,492
14,070
21 '125
208,779
211,080
$ ~==::;6;,:;0~0 ,~5~46~
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources consisted of the following unavailable revenue as of
June 30, 2015:
General CDBG
Fund Fund Total
Amounts associated IMth receivable and
revenue that are not available $ 61,875 $ $ 61,875
$ 61,875 $ $ 61,875
Refer to Note 10 for deferred inflows and outflows of resources related to pension.
LONG-TERM LIABILITIES
Changes in long-term liabilities for the year ended June 30, 2015 were as follows:
Amount Due Atn::lunt
Balance at Balance at Within One Due After
July 1, 2014 Additions Retirements June 30, 2015 Year One Year
Net OPES obligation $ 2,696,319 $ 601,000 $ (161,253) $ 3,136,066 $ $ 3,136,066
Compensated
absences 170,552 41,560 (4,710) 207,402 20,740 186,662
Net pension liability 4,072,235 4,072,235 4,072,235
$ 2,866,871 $ 4,714,795 $ (165,963) $ 7,415,703 $ 20,740 $ 7,394,963
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, 2015 was
$207,402. The liability is primarily liquidated from the general fund.
43
NOTE 10 DEFINED BENEFIT PENSION PLAN
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
A. General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in
the City's Miscellaneous Employee Pension Plan, cost-sharing multiple employer
defined benefit pension plan administered by the California Public Employees'
Retirement System (CaiPERS). Benefit provisions under the Plan are established
by State statute and the City's resolution. CaiPERS issues publicly available
reports that include a full description of the pension plan regarding benefit
provisions, assumptions and membership information that can be found on the
CaiPERS website.
Classic participants (defined as eligible participants prior to January 1, 2013) are
required to contribute 8% of their annual covered salary. New or Public
Employees' Pension Reform Act of 2013 (PEPRA) participants (defined as
eligible employees brought into CaiPERS membership for the first time on or after
January 1, 2013) contribute at least half the normal cost rate as determined by
CaiPERS. The City contributes the remaining amounts necessary to fund the
benefits for its employees, using the actuarial basis adopted by the CaiPERS
Board of Administration.
Benefits Provided
CaiPERS provides service retirement and disability benefits, annual cost of living
adjustments and death benefits to Plan members, who must be public employees
and beneficiaries. Benefits are based on years of credited service, equal to one
year of full time employment. Members with five years of total service are eligible
to retire at age 50 with statutorily reduced benefits. All members are eligible for
non-duty disability benefits after 10 years of service. The death benefit is one
of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the
Optional Settlement 2W Death Benefit. The cost of living adjustments for each
plan are applied as specified by the California Public Employees' Retirement Law.
44
NOTE 10
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
DEFINED BENEFIT PENSION PLAN (CONTINUED)
The Plans' provisions and benefits in effect at June 30, 2015 are summarized as
follows:
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a %of eligible
compensation compensation
Required employee contribution rates
Required employer contribution rates
Contributions
Miscellaneous Plan
Classic PEPRA
Prior to
January 1, 2013
2.5%@55
5 years service
monthly for life
50-55
2.0% to 2.7%
8%
15.58%
On or after
January 1, 2013
2%@62
5 years service
monthly for life
52-67
1.0% to 2.5%
6.31%
6.70%
Section 20814(c) of the California Public Employees' Retirement Law requires that
the employer contribution rates for all public employers be determined on an
annual basis by the actuary and shall be effective on July 1'1 following notice of a
change in the rate. Funding contributions for both Plans are determined annually
on an actuarial basis as of June 30 by CaiPERS. The actuarially determined rate is
the estimated amount necessary to finance the costs of benefits earned by
employees during the year, with an additional amount to finance any unfunded
accrued liability.
The City is required to contribute the difference between the actuarially determined
rate and the contribution rate of employees.
For the year ended June 30, 2015, the contributions recognized as part of pension
expense for each Plan were as follows:
Miscellaneous Plan
Classic PEPRA
Contributions-employer $ 536,498 $ 17,751
45
NOTE 10
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
DEFINED BENEFIT PENSION PLAN (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows
of Resources Related to Pensions
As of June 30, 2015, the City reported net pension liabilities for its proportionate
shares of the net pension liability of each Plan as follows:
Miscellaneous (Classic)
Miscellaneous (PEPRA)
Total Net Pension Liability
$
Proportionate
Share of Net
Pension
Liability (Asset)
4,072,057
178
$ ==4.;;•,;;.07;.;2"", 2;.;3;.;;5_
The City's net pension liability for each Plan is measured as the proportionate
share of the net pension liability. The net pension liability of the Plan is measured
as of June 30, 2014, and the total pension liability for each Plan used to calculate
the net pension liability was determined by an actuarial valuation as of June 30,
2013 rolled forward to June 30, 2014 using standard update procedures. The
City's proportion of the net pension liability was based on a projection of the City's
long-term share of contributions to the pension plans relative to the projected
contributions of all participating employers, actuarially determined.
The City's proportionate share of the net pension liability for the Plan as of June
30, 2013 and 2014 was as follows:
Proportion-June 30, 2013
Proportion-June 30, 2014
Change-Increase (Decrease)
46
Miscellaneous Plan
Classic PEPRA
0.18301%
0.16476%
-0.01825%
0.00001%
0.00001%
0.0000%
NOTE10
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
DEFINED BENEFIT PENSION PLAN (CONTINUED)
Actuarial Assumptions
The total pension liabilities in the June 30, 2013 actuarial valuations were
determined using the following actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Mortality
Post-Retirement Benefit Increase
(1) Varies by Entry Age and Se111ice
June 30, 2013
June 30, 2014
Entry Age Normal
Cost Method
7.50%
2.75%
3.00%
(1)
7.5% (2)
(3)
(4)
(2) Net of pension plan investment and adminstrative expenses, including inflation
(3) Derived using CaiPERS' Membership Data for all funds
(4) Contract COLA up to 2. 75% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies, 2. 75% thereafter.
The underlying mortality assumptions and all other actuarial assumptions used
in the June 30, 2013 valuation were based on the results of a January 2014
actuarial experience study for the period 1997 to 2011. Further details of the
Experience Study can be found on the CaiPERS website.
Discount Rate
The discount rate used to measure the total pension liability was 7.50 percent. To
determine whether the municipal bond rate should be used in the calculation of a
discount rate for each plan, CaiPERS stress tested plans that would most
likely result in a discount rate that would be different from the actuarially
assumed discount rate. Based on the testing, none of the tested plans run out of
assets. Therefore, the current 7.50 percent discount rate is adequate and the
use of the municipal bond rate calculation is not necessary. The long term
expected discount rate of 7.50 percent will be applied to all plans in the Public
Employees Retirement Fund (PERF). The stress test results are presented in a
detailed report that can be obtained from the CaiPERS website.
48
NOTE 10
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
DEFINED BENEFIT PENSION PLAN (CONTINUED)
According to Paragraph 30 of GASB Statement No. 68, the long-term discount
rate should be determined without reduction for pension plan administrative
expense. The 7.50 percent investment return assumption used in this accounting
valuation is net of administrative expenses. Administrative expenses are assumed
to be 15 basis points. An investment return excluding administrative expense
would have been 7.65 percent. Using this lower discount rate has resulted in a
slightly higher total pension liability and net pension liability. CaiPERS checked the
materiality threshold for the difference in calculation and did not find it to be a
material difference.
The long-term expected rate of return on pension plan investments was
determined using a building-block method in which best-estimate ranges of
expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class.
The table below reflects the long-term expected real rate of return by asset class.
The rate of return was calculated using the capital market assumptions applied to
determine the discount rate and asset allocation. These rates of return are net of
administrative expenses.
Asset Class
Global Equity
Global Fixed Income
Inflation Sensitive
Private Equity
Real Estate
Infrastructure and Forestland
Liquidity
Total
New
Strategic
Allocation
47.00%
19.00%
6.00%
12.00%
11.00%
3.00%
2.00%
100.00%
Real Return
Years 1 -10 (a)
5.25%
0.99%
0.45%
6.83%
4.50%
4.50%
-0.55%
(a) An expected li1flation of 2.5% used for this period.
(b) An expected inflation of 3.0% used for this period.
49
Real Return
Years 11+ (b)
5.71%
2.43%
3.36%
6.95%
5.13%
5.09%
-1.05%
NOTE 10
NOTE 11
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
DEFINED BENEFIT PENSION PLAN (CONTINUED)
Sensitivity of the Proportionate Share of the Net Pension Liability to
Changes in the Discount Rate
The following presents the City's proportionate share of the net pension liability for
each Plan, calculated using the discount rate for each Plan, as well as what the
City's proportionate share of the net pension liability would be if it were calculated
using a discount rate that is 1-percentage point lower or 1-percentage point higher
than the current rate:
Miscellaneous Plan
Classic PEPRA
1% Decrease 6.50% 6.50%
Net Pension Liability $ 7,255,146 $ 317
Current Discount Rate 7.50% 7.50%
Net Pension Liability $ 4,072,057 $ 178
1% Increase 8.50% 8.50%
Net Pension Liability $ 1,430,395 $ 62
c. Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in
the separately issued CaiPERS financial reports.
D. Payable to the Pension Plan
As of June 30, 2015, the City did not have outstanding amount of contributions to
the pension plan required for the year ended June 30, 2015.
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 118 California public entities and is
organized under a joint powers agreement pursuant to California Government
Code Section 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.
50
NOTE 11
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
(CONTINUED)
Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period.
A retrospective adjustment is then conducted annually thereafter, for coverage
years 2012-13 and prior. Retrospective adjustments are scheduled to continue
indefinitely on coverage years 2012-13 and prior, until all claims incurred during
those coverage years 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. Coverage years
2013-14 and forward are not subject to routine annual retrospective adjustment.
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
general government 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 from $750,000 to $50 million are distributed based on the
outcome of cost allocation within the first and second loss layers.
For 2014-15 the Authority's pooled retention is $2 million per occurrence, with
reinsurance to $20million, and excess insurance to $50 million. The Authority's
reinsurance contracts are subject to the following additional pooled retentions: (a)
50% of the $2.5 million annual aggregate deductible in the $3 million xis $2 million
layer, (b) 50% quota share of the $3 million x/s $2 million layer, and (c) $3 million
annual aggregate deductible in the $5 million x/s $10 million layer.
The overall coverage limit for each member including all layers of coverage is $50
million per occurrence.
Costs of covered claims for subsidence losses have a sub-limit of $30 million per
occurrence.
51
NOTE 11
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
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 general government
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 from $100,000 to statutory limits are distributed based on the outcome of
cost allocation within the first and second loss layers.
For 2014-15 the Authority's pooled retention is $2 million per occurrence, with
reinsurance to statutory limits under California Workers' Compensation Law.
Employer's Liability losses are pooled among members to $2 million. Coverage
from $2 million to $5 million is purchased as part of a reinsurance policy, and
Employer's Liability losses from $5 million to $10 million are pooled among
members.
Purchased Insurance
Pollution Legal Liability Insurance. The City participates in the pollution legal
liability insurance program 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, 2014 through July 1, 2017. 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 $14,442,145. There is a
$5,000 deductible per occurrence except for non-emergency vehicle insurance
which has a $1,000 deductible. Premiums for the coverage are paid annually and
are not subject to retrospective adjustments.
Earthquake and Flood Insurance. The City 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 $10,035,867. 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.
52
NOTE11
NOTE12
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
(CONTINUED)
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 in
fiscal year 2014-15.
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
2015 amounted to $149,253 which included 27 participants.
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 2013,
2014 and 2015 were:
Percentage of
Fiscal Year Annual Contribution Annual OPEB Cost Net OPEB
Ended OPEB Cost Made Contributed Obligation
6/30/2013 $ 1,080,000 $ 1 '159,326 107.35% $ 1,772,297
6/30/2014 1,080,000 155,978 14.44% 2,696,319
6/30/2015 601,000 161,253 26.83% 3,136,066
53
NOTE12
NOTE 13
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
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 4.60% 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 7.5 percent for Non-Medicare and 7.8
percent for Medicare initially, reduced to an ultimate rate of 5 percent in 2021 and
later. It is assumed the City's payroll will increase 3.25% per year and merit
increases are based on the CaiPERS 1997-2011 Experience Study. The
amortization period is a 24-year fixed (closed) period for the UAAL as of June 30,
2014 for the 2014-15 ARC. Future method changes, assumption changes and
gains/losses are over a 15-year fixed (closed) period. The maximum amortization
is over a maximum 30-year combined period using a level-percent of payroll.
Refer to Required Supplementary Information Section for the Plan's Schedule of
Funding Progress.
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, 2015, 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 Upper District.
GASB No. 72 -Fair Value Measurement and Application. The requirements of
this Statement will enhance comparability of financial statements among
governments by requiring measurement of certain assets and liabilities at fair value
using a consistent and more detailed definition of fair value and accepted valuation
techniques. This Statement also will enhance fair value application guidance and
related disclosures in order to provide information to financial statement users
about the impact of fair value measurements on a government's financial position.
The provisions of this Statement are effective for financial statements for periods
beginning after June 15, 2015.
55
NOTE 13
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)
PRONOUNCEMENTS ISSUED, NOT YET EFFECTIVE (CONTINUED)
GASB No. 73 -Accounting and Financial Reporting for Pensions and Related
Assets That Are Not within the Scope of GASB Statement 68, and
Amendments to Certain Provisions of GASB Statements 67 and 68. The
requirements of this Statement will improve financial reporting by establishing a
single framework for the presentation of information about pensions, which will
enhance the comparability of pension-related information reported by employers
and nonemployer contributing entities. The provisions of this Statement are
effective for financial statements for periods beginning after June 15, 2016.
GASB No. 74 -Financial Reporting for Postemployment Benefit Plans Other
Than Pension Plans. The requirements of this Statement will improve financial
reporting primarily through enhanced note disclosures and schedules of required
supplementary information that will be presented by OPEB plans that are
administered through trusts that meet the specified criteria. The provisions of this
Statement are effective for financial statements for periods beginning after June
15,2016
GASB No. 75 -Accounting and Financial Reporting for Postemployment
Benefits Other Than Pensions. The requirements of this Statement will improve
the decision-usefulness of information in employer and governmental nonemployer
contributing entity financial reports and will enhance its value for assessing
accountability and interperiod equity by requiring recognition of the entire OPEB
liability and a more comprehensive measure of OPEB expense. The provisions of
this Statement are effective for financial statements for periods beginning after
June 15, 2017.
GASB No. 76 -The Hierarchy of Generally Accepted Accounting Principles
for State and Local Governments. The requirements in this Statement improve
financial reporting by (1) raising the category of GASB Implementation Guides in
the GAAP hierarchy, thus providing the opportunity for broader public input on
implementation guidance; (2) emphasizing the importance of analogies to
authoritative literature when the accounting treatment for an event is not specified
in authoritative GAAP; and (3) requiring the consideration of consistency with the
GASB Concepts Statements when evaluating accounting treatments specified in
nonauthoritative literature. As a result, governments will apply financial reporting
guidance with less variation, which will improve the usefulness of financial
statement information for making decisions and assessing accountability and
enhance the abatements have on a government's financial position and economic
condition .The provisions of this Statement are effective for financial statements for
periods beginning after December 15, 2015.
56
NOTE13
NOTE14
NOTE15
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)
PRONOUNCEMENTS ISSUED, NOT YET EFFECTIVE (CONTINUED)
GASB No. 77 -Tax Abatement Disclosures. The requirements of this Statement
improve financial reporting by giving users of financial statements essential
information that is not consistently or comprehensively reported to the public at
present. Disclosure of information about the nature and magnitude of tax abatements
will make these transactions more transparent to financial statement users. As a
result, users will be better equipped to understand (1) how tax abatements affect a
government's future ability to raise resources and meet its financial obligations and
(2) the impact those abatements have on a government's financial position and
economic condition. The provisions of this Statement are effective for financial
statements for period beginning after December 15, 2015.
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.
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, 2015, 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.
Agency's Payable to the City
As of June 30, 2015, the Successor Agency owes the City $1,222,859 for expenses
by the former redevelopment agency to support redevelopment activities.
57
NOTE 15
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT
AGENCY (CONTINUED)
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, 2015 was
$627,225. The outstanding balance owed on the bonds as of June 30, 2015 is
$5,245,000. This was recognized by the California Department of Finance as
enforceable obligation of the Successor Agency.
Annual debt service requirements to maturity for the refunding revenue bonds
payable are as follows:
Year Ending
June 30,
2016 $
2017
2018
2019
2020
2021-2025
2026
Principal
375,000
395,000
410,000
430,000
450,000
2,590,000
595,000
5,245,000 Total $==;;,;;,;==
58
$
$
Interest Total
240,105 $ 615,105
222,968 617,968
204,650 614,650
185,223 615,223
164,650 614,650
471,663 3,061,663
14,503 609,503
1,503,762 $ 6,748,762
NOTE16
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
RESTATEMENTS AND IMPLEMENTATION OF NEW ACCOUNTING STANDARDS
Fund Financial Statements
The beginning fund balance of the OPEB special revenue fund has been restated to
remove the fund from the City's financial statements.
The beginning fund balance of CDBG Fund has been restated to transfer long-term
loans receivable balance from deferred inflows of resources to nonspendable fund
balance.
Net position balance beginning of year, as previously reported $
Adjustment:
Adjustment to properly report loans receivable in the governmental
funds balance sheet
OPEB CDBG
Fund Fund
1,124,427 $
Adjustment to properly report the asset in an OPES irrevocable trust (1, 124,427) 999,991
Fund balance beginning of year, as restated $~~~~~$~~9~9;;;9,;:,9;;91;,
Government-wide Statements
The beginning balance of net position of governmental activities in the government-
wide Statement of Activities has been restated to reflect the adjustments above.
Moreover, the beginning balance of net position of governmental activities in the
government-wide Statement of Activities has been restated to retroactively report the
net pension liability as of the beginning of the fiscal year as a result of implementing
GASB Statement No. 68, Accounting and Financial Reporting for Pensions. The City
made adjustments for these items as a cumulative effect of change in accounting
principle in the current fiscal year. This resulted in a decrease in the beginning
balance of net position by $5,119,558.
Net position balance beginning of year, as previously reported $
Prior period adjustments:
Adjustment to properly report the asset in an OPEB irrevocable trust
Adjustment to record retroactive effect implementing
GASB Statement No. 68
Adjustment to properly report loans receivable in the governmental
funds balance sheet
Net position balance beginning of year, as restated
59
$
Government~wide
Statement of Activities
Governmental
Activities
70,541,482
(1,124,427)
(5,119,558)
999 991
65,297,488
NOTE17 SUBSEQUENT EVENTS
City of Temple City
Notes to Financial Statements
Year ended June 30, 2015
The City has evaluated events subsequent to June 30, 2015 to assess the need for
potential recognition or disclosure in the financial statements. Such events were
evaluated through December 16, 2015, 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.
60
REQUIRED SUPPLEMENTARY INFORMATION
City of Temple City
Budget to Actual Comparison
General Fund
The General Fund has been classified as a major fund and is used to account for all of the general
revenues of the City not specifically levied or collected for some special purpose, and for the
expenditures related to the rendering of general services by the City. The General Fund is used to
account for all resources not required to be accounted for in another fund. The budget-to-actual
comparison for this fund has been presented in the accompanying financial statements as required
supplementary information.
61
City of Temple City
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2015
Variance with
Final Budget
Budgeta!Y Amounts Positive
Original Final Actual (Negative)
Revenues
Taxes
Real estate transfer tax $ 170,000 $ 200,000 $ 175,892 $ (24, 108)
Sales and use tax 1,330,000 1,330,000 1,442,653 112,653
In lieu sales tax 415,000 430,000 430,770 770
Franchise fees 560,000 580,000 590,620 10,620
Transient occupancy tax 35,000 50,000 53,612 3,612
Property tax allocation 2,700,000 2,735,000 2,728 718 (6,282)
Total taxes 5,210,000 5,325,000 5,422,265 97,265
Licenses and permits
Business license fees 220,000 220,000 199,014 (20,986)
Building permit fees 300,000 900,000 986,318 86,318
Parking permit fees 75,000 75,000 64,489 (10,511)
Encroachment permit fees 120,000 310,000 323,883 13,883
Animal license fees 90,000 90,000 52,997 (37,003)
Vehicle impound fees 20,000 20,000 22,408 2,408
Temp parking permit fees 140,000 140,000 143,950 3,950
Code enforcement fees 50,000 50,000 51,734 1,734
Total licenses and permits 1,015,000 1,805,000 1,844,793 39,793
Intergovernmental
Motor vehicle in lieu tax 15,000 14,808 (192)
State mandate reimbursement 1,200 8,089 6,889
Other reimbursement 1,200,000 1,200,000
In lieu vehicle license fees 3,350,000 3,672,000 3,672,514 514
Total intergovernmental 3,350,000 3,688,200 4,895,411 1,207,211
Charges for services
Shared maintenance charges 4,000 4,000 3,990 (1 0)
Zoning fees 200,000 200,000 227,598 27,598
Recreation fees 600,000 600,000 588,477 (11 ,523)
Plan check fees 400,000 570,000 526,611 (43,389)
Facility rental fees 65,000 75,000 75,314 314
PW/Engineering fees 100,000 105,126 5,126
Total charges for services 1 269,000 1,549,000 1,527,116 (21 ,884)
Fines, forfeitures and penalties
Court fines 700,000 400,000 433,102 33 102
Investment income
Interest-LAIF 50,000
Interest-Securities 50,000 50,000 105,715
Interest -Others 50,000 50,000 (50,000)
Interest-CD 50,000 50,000 42,371 (7,629)
Total investment income 200,000 150,000 148 086 (1,914)
Other
Other reimbursement 90,000 409,000 511,844 102,844
Recyclable revenue 30,000 30,000 27,049 (2,951)
AB939 reimbursement 15,000 15,000 8,958 (6,042)
Rental Income 65,000 100,000 89,116 (10,884)
Sale of City Property 1,500 1,500
Donations 10,000 22,000 23,793 1,793
CRA/LLD reimbursement 6,300 6,300 39,314 33,014
Sundry 1,000 7,000 206,748 199,748
Total other income 217,300 589,300 908,322 319,022
Total revenues $ 11,961 300 $ 13,506,500 $ 15,179,095 $ 1,672,595
62
Other financing sources (uses)
Transfers in
Transfers out
Total other financing
sources (uses}
Net change in fund balances
Fund balance at beginning of year
Fund balance at end of year $
City of Temple City
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2015
Variance with
Final Budget
Budgetary: Amounts Positive
Original Final Actual (Negative}
500 811,590 412,890 (398,700)
(841 ,025) (1 ,016,570) (836, 140) 180,430
(840,525) (204,980) (423,250) (218,270)
(2,004,060) (1 ,462,365) 2,021,092 3,483,457
18,005,515 18,005,515 18,005,515
16,001,455 $ 16,543,150 $ 20,026,607 $ 3,483,457
64
City of Temple City
Budgetary Comparison Schedule
Capital Improvement Fund
Year ended June 30, 2015
Variance with
Final Budget
Budgetary Amounts Positive
Original Final Actual (Negative)
Expenditures
Capital outlay:
Parks-maintenance/facilities $ 102,000 $ 112,000 $ 61,842 $ 50,158
Traffic engineering 10,000 10,000 10,000
Street cleaning 10,000 10,350 (350)
Street maintenance 3,077,900 5,105,020 1,448,840 3,656,180
Sidewalk maintenance 200,000 363,155 132,581 230,574
General government buildings 30,000 34,500 22,489 12,011
Parking facilities 200,000 88,867 111,133
Total capital outlay 3,419,900 5,834,675 1,764 969 4 069,706
Total expenditures 3,419,900 5,834,675 1,764,969 4,069,706
Excess (deficiency) of revenue
over expenditures (3,419,900) (5,834,675) (1,764,969) 4,069,706
Other financing sources {uses)
Transfers in 4,144,150 5,834,675 1,764,969 (4,069,706)
Transfers out
Total other financing
sources (uses) 4144,150 5,834,675 1,764,969 (4,069,706)
Net change in fund balances 724,250
Fund balance at beginning of year
Fund balance at end of year $ 724,250 $ $ $
65
NOTE 1
City of Temple City
Notes to Budgetary Comparison Schedule
Year ended June 30, 2015
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 $14,968,865. 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.
66
Actuarial Actuarial
Value of Accrued
Valuation Assets Liability
Date (AVA) (AAL)
6/30/2009 $ $ 7,850,000 $
6/30/2011 6,481,000
6/30/2014' 1,124,000 5,726,000
*latest available actuarial valuation
City of Temple City
Schedule of Funding Progress
Other Postemployment Benefits {OPEB)
Year ended June 30, 2015
Unfunded
Actuarial
Accrued Funded Annual
Liability Ratio Covered UAALasa%
(UAAL) (AVA/AAL) Pax:roll of Payroll
7,850,000 0.0% $ 2,261,000 347.2%
6,481,000 0.0% 2,335,000 277.6%
4,602,000 19.6% 2,761,000 166.7%
67
City of Temple City
Schedule of Proportionate Share of the Net Pension Liability
Year ended June 30, 2015
Proportion of the net pension liability (asset)
Proportionate Share of the net pension liability (asset)
Covered -employee payroll (1)
Proportionate Share of the net pension liability (asset) as
percentage of covered-employee payroll
Plan's Proportionate Share of the Fiduciary Net Position as a
Percentage of the Plan's Total Pension Liability
Plan's Proportionate Share of Aggregate Employer Contributions (2)
Notes to Schedule
$
$
$
Miscellaneous
Classic PEPRA
0.06544% 0.00000%
4,072,057 $ 178
2,675,595 $ 188,675
152.19% 0.09%
83.03% 83.03%
538,718 $ 24
1 Covered-Employee Payroll represented above is based on pensionable earnings provided by the
employer. However, GASB Statement No. 68 defines covered-employee payroll as the total
payroll of employees that are provided pensions through the pension plan.
2 The Plan's proportionate share of aggregate employer contributions may not match the actual
contributions made by the employer during the measurement period. The Plan's proportionate
share of aggregate employer contributions is based on the Plan's proportion of fiduciary net
position shown on line 5 of the table above as well as any additional side fund (or unfunded
liability) contributions made by the City during the measurement period.
*-Fiscal year 2015 was the 1st year of implementation, therefore only one year is shown.
68
Contractually required contribution
(actuarially determined)
Contributions in relation to the actuarially
determined contributions
Contribution deficiency (excess)
Covered-employee payroll
Contributions as a percentage of
covered-employee payroll
Notes to Schedule
Valuation date
$
$
$
City of Temple City
Schedule of Contributions
Last 1 0 years*
Miscellaneous Plan
Classic PEPRA
427,273 $ 17,304
(427,273) (17,304)
$
2,675,595 $ 188,675
15.97% 9.17%
June 30, 2013
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of payroll, closed
Remaining amortization period 15 years as of valuation date
Asset valuation method 5-year smoothed market
Inflation 2. 75%
Salary increases
Investment rate of return
Retirement age
Mortality Rate Table
Varies by entry age and service
7.50%, net of pension plan investment and
adminstrative expenses; includes inflation
57 years
Derived using CaiPERS' membership
data for all funds
*-Fiscal year 2015 was the 1st year of implementation, therefore only one year is shown.
69
SUPPLEMENTARY SCHEDULES
NON MAJOR
GOVERNMENTAL FUNDS
Special
Revenue
Funds
ASSETS
Cash and investments $ 4,665,510
Accounts receivable 311,963
Interest receivable
Loans receivable 1 ,088,219
Due from other governments 965,152
Total assets $ 7,030,844
LIABILITIES
Accounts payable $ 79,449
Due to other funds 1 '134,880
Total liabilities 1,214,329
FUND BALANCES
Non spendable 1,088,219
Restricted:
Education scholarships
Special revenue funds 4,728,296
Total fund balances 5,816,515
Total liabilities and fund balances $ 7,030,844
70
$
$
$
$
City of Temple City
Nonmajor Governmental Funds
Combining Balance Sheet
Year ended June 30, 2015
Camellia
Permanent
Fund Totals
170,109 $ 4,835,619
311,963
103 103
1,088,219
965,152
170,212 $ 7,201,056
$ 79,449
1 '134,880
1,214,329
1,088,219
170,212 170,212
4,728,296
170,212 5,986,727
170,212 $ 7,201,056
City of Temple City
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2015
Special Camellia
Revenue Permanent
Funds Fund Totals
Revenues
Taxes $ 1,255,955 $ $ 1,255,955
Intergovernmental 4,069,141 4,069,141
Charges for services 677,762 677,762
Fines 14,410 14,410
Investment income 4,699 556 5,255
Other 41,461 41,461
Total revenues 6,063,428 556 6,063,984
Expenditures
Current:
Community development (41 ,422) (41 ,422)
Public works 2,029,516 2,029,516
Community services 704,085 2,878 706,963
Total expenditures 2,692,179 2,878 2,695,057
Excess (deficiency) of revenues
over expenditures 3,371,249 (2,322) 3,368,927
Other financing sources (uses)
Transfers in 735,635 735,635
Transfers out (2,077,354) (2,077,354)
Net other financing sources (uses) (1,341,719) (1,341,719)
Change in fund balance 2,029,530 (2,322) 2,027,208
Net change in fund balance 2,029,530 (2,322) 2,027,208
Fund balance, beginning of year, as restated 3,786,985 172,534 3,959,519
Fund balance, end of year $ 5,816,515 $ 170,212 $ 5,986,727
71
NON MAJOR
SPECIAL REVENUE FUNDS
City of Temple City
Description of Nonmajor Special Revenue Funds
June 30, 2015
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.
72
City of Temple City
Description of Nonmajor Special Revenue Funds
June 30, 2015
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 the
City's Rosemead Boulevard Improvement Project.
73
Traffic High Tech
Safe!~ Grant COPS
ASSETS
Cash and investments $ $ $ 7,313
Accounts receivable
Loans receivables
Due from other governments 773
Total assets $ 773 $ $ 7,313
LIABILITIES
Accounts payable $ $ $
Due to other funds 773
Total liabilities 773
FUND BALANCES (DEFICITS)
Non spendable
Restricted 7,313
Total fund balances (deficits) 7,313
Total liabilities and fund balances
(deficits) $ 773 $ $ 7,313
75
Public Public
Transportation -Transportation -
Prop A Prop C
$ 860,359 $ 101,305 $
$ 860,359 $ 101,305 $
$ 68,832 $ $
68,832
791,527 101,305
791,527 101,305
$ 860,359 $ 101,305 $
76
Used
Oil
10,591
10,591
10,591
10,591
City of Temple City
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30, 2015
$
$
$
State
Gas Tax
705,524
96,495
802,019
98,453
98,453
703,566
703,566
10,591 $ 802,019
Bicycle
Asset and
Seizure CDBG Pedestrian
ASSETS
Cash and investments $ 729 $ $ (706)
Accounts receivable
Loans receivables 1,088,219
Due from other governments 104,789 706
Total assets $ 729 $ 1 '193,008 $
LIABILITIES
Accounts payable $ $ $
Due to other funds 104,789
Total liabilities 104,789
FUND BALANCES (DEFICITS)
Nonspendable 1,088,219
Restricted 729
Total fund balances (deficits) 729 1,088,219
Total liabilities and fund balances
(deficits) $ 729 $ 1 '193,008 $
77
Air
Quality
Improvement
District MeasureR
$ 148,760 $ 917,814 $
11 ,764
$ 160,524 $ 917,814 $
$ $ $
160,524 917,814
160,524 917,814
$ 160,524 $ 917,814 $
City of Temple City
Nonmajor Special Revenue Funds (Continued)
Combining Balance Sheet
June 30, 2015
Affordable
Parking Housing Sewer
Concession Fund Reconstruction
10,000 $ 137,905 $ 472,726
10,000 $ 137,905 $ 472,726
$ $
10,000 137,905 472,726
10,000 137,905 472,726
10,000 $ 137,905 $ ~-=4~72=-,7:.:2~6:,
78
1992/ Lighting and
1996 State Park Landscape
HSIP Park Bond Recycling A~uisition District
ASSETS
Cash and inveslments $ $ $ 276 $ 263,264 $ 809,223
Accounts receivable
Loans receivables
Due from other governments 40,000 51,379
Total assets $ $ 40,000 $ 276 $ 263,264 $ 860,602
LIABILITIES
Accounts payable $ $ $ $ $ (87,836)
Due to other funds 40,000
Total liabilities 40,000 (87,836)
FUND BALANCES (DEFICITS)
Nonspendable
Restricled 276 263,264 948,438
Total fund balances (deficits) 276 263,264 948,438
Total liabilities and fund balances
(deficits) $ $ 40,000 $ 276 $ 263,264 $ 860,602
79
Congestion
Mitigation & Public Art
Air Quality OPEB Fund
$ $ $ 107,982 $
227,346
$ 227,346 $ $ 107,982 $
$ $ $ $
245,455
245 455
(18, 109) 107,982
(18, 109) 107,982
$ 227,346 $ $ 107,982 $
City of Temple City
Nonmajor Special Revenue Funds (Continued)
Combining Balance Sheet
June 30, 2015
Bicycle Safe Environmental
Transportation Routes to Protection
Account School Agency Total
$ $ 112,445 $ 4,665,510
311,963 311,963
1,088,219
431,900 965,152
311,963 $ 431,900 $ 112,445 $ 7,030,844
$ $ $ 79,449
311,963 431,900 1,134 880
311,963 431,900 1,214,329
1,088,219
112,445 4,728,296
112,445 5,816,515
311,963 $ 431,900 $ 112,445 $ 7,030,844
80
$
City of Temple City
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2015
Public Public
Transportation -Transportation -Used State
Prop A Prop C Oil Gas Tax
$ $ $
635,821 526,265 10,162 1,003,343
123,290
1,048 41 468
760,159 526,306 10,162 1,003,811
999,298
692,239
692,239 999,298
67,920 526,306 10,162 4,513
611,219
(88,604) (8,957) (684,029)
(88,604) (8,957) (72,810)
67,920 437,702 1,205 (68,297)
771,863 ----=7=-23"-'-,~60:-:7:-(336,397) 9,386
$ 7 91 '52 7 $ --=,;,1 0::;,1;,;, 3:;;0;;;5~ $ =~1 0;:;,•;;;;59~1~ $ =~7,;;,0 3;:;,•;;;;56:;:;6~
82
Bicycle
Asset and
Seizure CDBG Pedestrian
Revenues
Taxes $ $ $
Intergovernmental 353,512 94,847
Charges for services
Fines
Investment income
Other 41 ,461
Total revenues 394,973 94,847
Expenditures
Current:
Community development (41,422)
Public works
Community services
Total expenditures (41,422)
Excess (deficiency) of revenues
over expenditures 436,395 94,847
Other financing sources (uses)
Transfers in
Transfers out (348, 167) (6, 165)
Net other financing sources (uses) (348, 167) (6, 165)
Extraordinary item
Net change in fund balance 88,228 88,682
Fund balance, beginning of year 729 999,991 (88,682)
Fund balance, end of year $ 729 $ 1,088,219 $
83
$
$
City of Temple City
Nonmajor Special Revenue Funds (Continued)
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2015
Air
Quality Affordable
Improvement Parking Housing Sewer
District MeasureR Concession Fund Reconstruction
$ $ $ $
44,832 395,638
131,540 119,500
288 914
45,120 396,552 131,540 119,500
45,120 396,552 131,540 119,500
45,120 396,552 131,540 119,500
115,404 521,262 10,000 6,365 353,226
160,524 $ 917,814 $ 10,000 $ 13 7' 905 $ ====="'4="7"'2 ·=72=6==
84
Lighting
1992/ and
1996 State Park Landscape
HSIP Park Bond Rec~cling Acguisition District
Revenues
Taxes $ $ $ $ $ 1,255,955
Intergovernmental 13,663 40,000 9,691
Charges for services 177,757
Fines
Investment income 1,940
Other
Total revenues 13,663 40,000 9,691 177,757 1,257,895
Expenditures
Current:
Community development
Public works 1,030,218
Community services 11 846
Total expenditures 11,846 1,030,218
Excess (deficiency) of revenues
over expenditures 13,663 40,000 (2, 155) 177,757 227,677
Other financing sources (uses)
Transfers in 124,416
Transfers out (13,663) (40,000)
Net other financing sources (uses) (13,663) (40,000) 124,416
Extraordinary item
Net change in fund balance (2, 155) 177,757 352,093
Fund balance, beginning of year 2,431 85,507 596,345
Fund balance 1 end of year $ $ $ 276 $ 263,264 $ 948,438
85
$
$
City of Temple City
Nonmajor Special Revenue Funds (Continued)
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2015
Congestion Bicycle Safe
Mitigation & Public Art Transportation Routes to
Air Quality OPEB Fund Account School
$ $ $ $ $
209,237 431,900
125,675
209,237 125,675 431,900
209,237 125,675 431,900
(227,346) (23,774) (431 ,900)
(227,346) (23,774) (431 ,900)
(18, 109) 101,901
6,081
(18,109) $~~~$ 107,982 $~~~~$~~~~$
86
Environmental
Protection
Agency Total
$ 1,255,955
194,000 4,069,141
677,762
14,410
4,699
41,461
194,000 6,063,428
(41,422)
2,029,516
704,085
2,692,179
194,000 3,371,249
735,635
(81 ,555) (2,077,354)
(81 ,555) (1,341,719)
112,445 2,029,530
3,786,985
112,445 $ 5,816,515
City of Temple City
Budgetary Comparison Schedule
Permanent Fund
Year ended June 30, 2015
Variance Wth
Final Budget
Budgetary Amounts Positive
Original Final Actual (Negative)
Revenues
Investment income $ 1,000 $ 1,000 $ 556 $ (444)
Total revenues 1,000 1,000 556 (444)
Expenditures
Current:
Community services 2,878 (2,878)
Total expenditures 2,878 (2,878)
Excess (deficiency) of revenues
over expenditures 1,000 1,000 (2,322) (3,322)
Other financing sources (uses)
Transfers in
Transfers out
Net other financing sources (uses)
Net change in fund balance 1,000 1,000 (2,322) (3,322)
Fund balance, beginning of year 172,534 172 534 172,534
Fund balance, end of year $ 173,534 $ 173,534 $ 170 212 $ (3,322)
87
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, 2015
Revenues
Fines
Total revenues
Other financing sources (uses)
Transfers out
Net other financing sources (uses)
$
Net change in fund balance $
Fund balance, beginning of year
Fund balance, end of year
Budgetary Amounts
Original Final
50,000 $
50,000
(40,000)
(40,000)
50,000 $
50,000
(40,000)
(40,000)
10,000 $ ~~1~0,;;.0~00"=
Actual
Variance with
Final Budget
Positive
(Negative)
14 410 $ _-"'(3005,oc59""0'"-)
14 410 (35,590)
(14,410)
(14,410)
$
25,590
25,590
(10,000)
$==~
88
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, 2015
Revenues
Intergovernmental $
Investment income
Expenditures
Total revenues
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfers out
Net other financing sources (uses)
Budgetary Amounts
Original Final
100,000 $
100
100,100
100,000
100,000
100
106,500 $
100
106,600
106,600
(100,000)
(100,000)
100 Net change in fund balance $ ~~~~ $ 6,600
Fund balance, beginning of year
Fund balance, end of year
89
$
Actual
106,230 $
106,230
106,230
(100,000)
(100,000)
6,230 $
1,083
7,313
Variance with
Final Budget
Positive
(Negative)
(270)
(100)
(370)
(370)
(370)
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, 2015
Revenues
Intergovernmental $
Charges for services
Investment income
Expenditures
Current:
Total revenues
Community services
Total expenditures
Excess (deficiency) of revenues
over expenditures
Budgetary Amounts
Original Final
600,000 $
140,000
5,000
745,000
738,945
738,945
6,055
600,000 $
148,900
5,000
753,900
759,555
759,555
(5,655)
6,055 Net change in fund balance $ ~~="'= $ (5,655)
Fund balance, beginning of year
Fund balance, end of year
90
$
Actual
635,821 $
123,290
1,048
760,159
692,239
692,239
67,920
67,920 $
723,607
791 527
Variance Vvith
Final Budget
Positive
(Negative)
35,821
(25,610)
(3,952)
6,259
67,316
67,316
73,575
(73,575)
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, 2015
Revenues
Intergovernmental $
Investment income
Expenditures
Total revenues
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfers out
Net other financing sources (uses)
Budgetary Amounts
Original Final
510,000 $
3,000
513,000
513,000
(175,000)
(175,000)
510,000 $
3,000
513 000
513 000
(175,000)
(175,000)
338,000 $ Net change in fund balance $ ~==""'-338,000
Fund balance, beginning of year
Fund balance, end of year
91
$
Actual
526,265 $
41
526,306
526 306
(88,604)
(88,604)
437,702 $
(336,397)
101,305
Variance with
Final Budget
Positive
(Negative)
16,265
(2,959)
13,306
13 306
86 396
86,396
99 702
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, 2015
Variance 'vVith
Final Budget
Budgetar~ Amounts Positive
Original Final Actual (Negative)
Revenues
Intergovernmental $ 15,000 $ 15,000 $ 10,162 $ (4,838)
Other
Total revenues 15,000 15,000 10,162 (4,838)
Expenditures 6,190 6,190 (6, 190)
Total expenditures 6,190
Excess (deficiency) of revenues
over expenditures 8 810 15 000 10 162 (4,838)
Other financing sources (uses)
Transfers out (8,690) (8,957) (267)
Net other financing sources (uses) (8,690) (8,957) (267)
Net change in fund balance $ 8,810 $ 6,310 1,205 $ (5, 105)
Fund balance, beginning of year 9,386
Fund balance, end of year $ 10,591
92
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, 2015
Revenues
Intergovernmental $
Investment income
Total revenues
Expenditures
Current:
Public \MJrks
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfers in
Transfers out
Net other financing sources (uses)
Net change in fund balance $
Fund balance, beginning of year
Fund balance, end of year
Budgetary Amounts
Original Final
1,071,000 $
2,000
1 073,000
523,805
523,805
549,195
(1 ,658,860)
(1 ,658,860)
(1 '1 09,665) $
93
1,071,000 $
2 000
1,073,000
1 '1 05,365
1 '1 05,365
(32,365)
249,575
(1 ,668,860)
(1,419,285)
(1 ,451 ,650)
$
Actual
1,003,343 $
468
1,003 811
999,298
999,298
4,513
611,219
(684,029)
(72,810)
(68,297) $
771,863
703 566
Variance with
Final Budget
Positive
(Negative)
(67,657)
(1 ,532)
(69, 189)
106,067
106,067
36 878
(361 ,644)
984,831
1,346 475
1 383,353
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, 2015
Revenues
Intergovernmental $
Community Development
Expenditures
Current:
Total revenues
Community development
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfers out
Net other financing sources (uses)
Budgetary Amounts
Original Final
506,400 $
506,400
306,400
306,400
200,000
(200,000)
(200,000)
506,400 $
46,850
553,250
46,850
46,850
506,400
(669,555)
(669,555)
Net change in fund balance $ ~~~~~ $ (163,155)
Fund balance, beginning of year
Fund balance, end of year
94
$
Actual
348,167 $
46,806
394 973
46,806
46,806
348,167
(348, 167)
(348, 167)
$
Variance with
Final Budget
Positive
(Negative)
(158,233)
(44)
(158,277)
44
44
(158,233)
321,388
321,388
(163,155)
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, 2015
Revenues
Intergovernmental
Investment income
Expenditures
Current:
Total revenues
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfers out
Net other financing sources (uses)
$
Budgetary Amounts
Original Final
22,000 $ 94,000
10 10
22,010 94,010
22,010 94,010
22,010 Net change in fund balance $ _...:;;,=,;,;;... $ 94,010
Fund balance, beginning of year
Fund balance, end of year
95
Variance with
Final Budget
Positive
Actual (Negative)
$ 94,847 $ 847
(10)
94,847 837
94,847 837
(6, 165) (6, 165)
(6, 165) (6, 165)
$ 88,682 $ (5,328)
(88,682)
$
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, 2015
Variance with
Final Budget
Budgetar~ Amounts Positive
Original Final Actual (Negative)
Revenues
Intergovernmental $ 40,000 $ 40,000 $ 44,832 $ 4,832
Investment income 150 150 288 138
Total revenues 40,150 40,150 45,120 4,970
Expenditures
Current:
Community services
Total expenditures
Excess (deficiency) of revenues
over expenditures 40,150 40150 45,120 4,970
Net change in fund balance $ 40 150 $ 40,150 $ 45,120 $ 4,970
Fund balance, beginning of year 115,404
Fund balance, end of year $ 160,524
96
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, 2015
Revenues
Intergovernmental $
Investment income
Expenditures
Current:
Total revenues
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfers out
Net other financing sources (uses)
Budgetary Amounts
Original Final
390,000 $
1,500
391 500
391,500
390,000 $
1,500
391,500
391,500
(1 '1 94,230)
(1 '194,230)
391,500 Net change in fund balance $ ~==~ $ (802,730)
Fund balance, beginning of year
Fund balanc·e, end of year
97
$
Actual
395,638 $
914
396,552
396,552
396,552 $
521,262
917,814
Variance lfllith
Final Budget
Positive
(Negative)
5,638
(586)
5,052
5,052
1,194 230
1,194,230
1,199282
City of Temple City
Non major Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual
AFFORDABLE HOUSING FUND
Year ended June 30, 2015
Variance with
Final Budget
Budgetar~ Amounts Positive
Original Final Actual (Negative)
Revenues
Charges for services $ $ 150,000 $ 131,540 $ (18,460)
Total revenues 150,000 131,540 (18,460)
Expenditures
Current:
Total expenditures
Excess (deficiency) of revenues
over expenditures 150,000 131,540 (18,460)
Net change in fund balance $ $ 150,000 131,540 $ (18,460)
Fund balance, beginning of year 6,365
Fund balance, end of year $ 137,905
98
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, 2015
Variance vvith
Final Budget
Budgetary Amounts Positive
Original Final Actual (Negative)
Revenues
Charges for services $ 60 000 $ 131,000 $ 119,500 $ (11 ,500)
Total revenues 60,000 131,000 119,500 (11 ,500)
Expenditures
Current: 10,000
Total expenditures 10,000
Excess (deficiency) of revenues
over expenditures 50,000 131,000 119,500 (11 ,500)
Other financing sources (uses)
Transfers out (1 0,000) (20,000) 20 000
Net other financing sources (uses) (1 0,000) (20,000) 20,000
Extraordinary item
Net change in fund balance $ 40,000 $ 111,000 $ 119,500 $ 8,500
Fund balance, beginning of year 353,226
Fund balance, end of year $ 472,726
99
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
Revenues
Intergovernmental
Expenditures
Current:
Total revenues
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfers out
Net other financing sources (uses)
Budgetary Amounts
Original Final
$ --;:'~:40,000 $ 40,000
40,000 40,000
40,000
40,000
40000
(40,000)
(40,000)
Net change in fund balance $ ~~.,..,;;-$
Fund balance, beginning of year
Fund balance, end of year
101
Year ended June 30, 2015
Variance v.ith
Final Budget
Positive
Actual (Negative)
$ 40,000 $
40000
40,000
(40,000)
(40,000)
$ $
$
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, 2015
Revenues
Intergovernmental $
Expenditures
Current:
Total revenues
Community services
Total expenditures
Excess (deficiency) of revenues
over expenditures
Budgetary Amounts
Original Final
9,700 $
9,700
9,700
9,700 $
9,700
11,850
11,850
(2, 150)
9,700 Net change in fund balance $ -~=;;;, $ (2, 150)
Fund balance, beginning of year
Fund balance, end of year
102
$
Actual
Variance with
Final Budget
Positive
(Negative)
9,691 $ ---.l:o(9:L)
9,691 (9)
11,846 4
11,846 4
(2, 155) (5)
{2, 155) $ (5)
2,431
276
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, 2015
Revenues
Charges for services $
Expenditures
Current:
Total revenues
Total expenditures
Excess (deficiency) of revenues
over expenditures
Net change in fund balance $
Fund balance, beginning of year
Fund balance, end of year
Budgetary Amounts
Original Final
17,000 $
17,000
17 000
17,000 $
178,000 $
178 000
178,000
178,000 $
Actual
Variance with
Final Budget
Positive
(Negative)
177 '7 57 $ __ _\.(2=:4:;3'-L)
177,757 (243)
177,757 (243)
177 '7 57 $ ~~~'"'24~3:J,.)
85,507
$ ~::2~6""3 •,:;;26;:,;4'=
103
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, 2015
Variance vvith
Final Budget
Budgetar~ Amounts Positive
Original Final Actual (Negative)
Revenues
Taxes $ 1 '130,000 $ 1,211,000 $ 1,255,955 $ 44,955
Investment income 6,000 6,000 1,940 (4,060)
Other
Total revenues 1 '136,000 1 217,000 1,257,895 40,895
Expenditures
Current:
Public works 1,121 700 1,246 945 1,030218 216 727
Total expenditures 1,121,700 1,246,945 1 030,218 216,727
Excess (deficiency) of revenues
over expenditures 14,300 (29,945) 227,677 (175,832)
Other financing sources (uses)
Transfers in 123,860 123,860 124,416 556
Net other financing sources (uses) 123 860 123,860 124,416 556
Net change in fund balance $ 138,160 $ 93,915 352,093 $ 258,178
Fund balance, beginning of year 596 345
Fund balance, end of year $ 948,438
104
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, 2015
Budgetary Amounts
Original Final
Revenues
Intergovernmental $ ____ $ ____ $
Expenditures
Current:
Total revenues
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfers out
Net other financing sources (uses)
Net change in fund balance $ --==-
Fund balance, beginning of year
Fund balance, end of year
105
(855,000)
(855,000)
$ (855,000)
$
Actual
Variance Vvith
Final Budget
Positive
(Negative)
209,237 $ --:2::'0'::-9~27.37:-
209,237 209 237
209,237 209,237
(227,346) 627,654
(227,346) 627,654
(18, 109) $ 836,891
(18,109)
City of Temple City
Non major Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual
PUBLIC ART FUND
Year ended June 30, 2015
Variance vvith
Final Budget
Budgetar;t Amounts Positive
Original Final Actual (Negative)
Revenues
Charges for services $ $ 144,000 $ 125,675 $ (18,325)
Fines
Investment income
Other
Total revenues 144,000 125,675 (18,325)
Expenditures
Current: 30,000
Total expenditures 30,000
Other financing sources (uses)
Transfers in
Transfers out (25,000) (84,000) (23,774) 60,226
Net other financing sources (uses) (25,000) (84,000) (23,774) 60,226
Excess (deficiency) of revenues
over expenditures (55,000) 60,000 101 901 41,901
Net change in fund balance $ (55,000) $ 60,000 101,901 $ 41,901
Fund balance, beginning of year 6,081
Fund balance, end of year $ 107 982
106
City of Temple City
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual
SAFE ROUTES TO SCHOOL FUND
Year ended June 30, 2015
Budgetary Amounts
Original Final
Revenues
Actual
Variance v.;th
Final Budget
Positive
(Negative)
Investment income $ __ ___:c_$ __ ___:c_$ 431,900 $ ----=:4""31:0-'':090'0'0"-.
Total revenues 431,900 431,900
Expenditures
Current:
Community development
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfers out
Net other financing sources (uses)
(431 ,900)
(431 ,900)
431,900
(431 ,900)
(431 ,900)
Net change in fund balance$-~...,;;.~$ (431,900) $
Fund balance, beginning of year
Fund balance, end of year
107
$==~
431,900
$ ~,.;4;;:;3~1 ·.:;;9;;::00;:,..
City of Temple City
Nonmajor Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual
ENVIRONMENTAL PROTECTION AGENCY
Year ended June 30, 2015
Budgetary Amounts
Original Final
Revenues
Intergovernmental $ ____ $ ---'---$
Expenditures
Current:
Total revenues
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Transfers out
Net other financing sources (uses)
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
(194,000)
(194,000)
(194,000)
$
108
Actual
194,000
194,000
194,000
(81 ,555)
(81 ,555)
112,445
112,445
Variance v.ith
Final Budget
Positive
(Negative)
194,000
194,000
194,000
(112,445)
(112,445)
(81 ,555)
STATISTICAL SECTION
City of Temple City
Description of Statistical Section Contents
This part of the City of Temple City's (the City) comprehensive annual financial report presents
detailed information as a context for understanding what the information in the finical statements,
note disclosures, and required supplementary information says about the City's overall financial
health.
Financial Trends
These schedules contain trend information to help the reader understand
how the City's financial performance and well-being have changed over
time.
Revenue Capacity
These schedules contain information to help the reader asses 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 outstanding debt and the City's
ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the City's financial
activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the City's financial report relates to the
services the city provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
109
[ 2006 2007 2008 2009
Governmental activities:
Net position, investment in capital assets $ 22,123,584 $ 22,411,970 $ 24,916,427 $ 26,109,373 $
Restricted 10,094,196 10,569,111 8,637,170 9,924,588
Unrestricted 15,358,695 17,966,076 21,393,668 20,313,976
Total governmental activities net assets $ 47,586,475 $ 50,947,157 $ 54,947,265 $ 56,347,937 $
%changes from prior year 6.28% 7.06% 7.85% 2.55%
110
City of Temple City
Net Position by Component-Last Ten Fiscal Years
2010 2011 2012 2013 2014 2Dis I
27,542,452 $ 28,131,358 $ 29,208,039 $ 38,038,920 $ 51,168,623 $ 52,166,900
10,961,386 14,736,865 11,8S9,013 8,445,931 4,083,955 4,898,508
18,729,825 16,112,547 24,103,180 21,329,869 9,044,919 11,485,507
57,233,673 $ 58,980,771 $ 65,200,232 $ 67,814,720 $ 64,297,497 $ 68,550,915
1.57% 3.05% 10.54% 4.01% -5.19"/o 6.62%
City of Temple City
Change in Net Position-Expenses and Program Revenues-Last Ten Fiscal Years
I 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 I
Expenses:
Governmental activities:
General government $ 1,929,063 $ 1,932,634 $ 2,fJ50,431 $ 2,410,692 $ 2,715,505 $ 2,827,384 $ 3,281,194 $ 3,769,018 s 3,512,190 3,663,847
Public safety 3,477,139 3,773,419 4,197,010 4,528,763 4,484,281 4,652.,120 4,818,217 5,122,868 5,718,966 5,005,641
Public works 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 3,065,241
Community development 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 3,314,298
Community seNices 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 2,940,626
Decline in value of property held for resale
Pass through expenditures
Interest on long-term debt 714,252 352,823 343,561 333,209 321,043 429,238 149,503
Total governmental activities expenses 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 17,989,652
Program revenues:
Governmental activities:
Changes for services
General government 164,010 165,695 149,281 149,576 151,245 82,910 39,317 1,128,428 142,880 168,420
Public safety 538,813 560,933 555,632 647,841 877,083 516,034 719,955 588,380 596,058 469,919
Publ"lc works 699,729 208,002 87,170 61,068 56,906 88,506 220,136 314,631 917,044 978,835
Community development 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 1,953,925
Community services 645,626 718,686 797,332 790,357 686,185 517,381 528,043 567,649 596,879 588,477
Operating grants and contributions
General government 55,006 58,335 54,002 51,038 45,555 44,773 141,216 8,089
Public safety 130,764 113,801 103,176 100,589 133,272 136,935 100,238 100,135 100,000 106,230
Public works 890,949 981,538 1,299,422 928,018 1,886,781 4,065,287 3,749,837 5,128,889 4,772,938 4,679,133
Community development 202,457 178,948 104,763 717,302 349,299 273,917 246,086 856,693 2,279,234 785,166
Community services 1,256,579 1,627,245 1,309,753 1,168,478 975,576 83,035 99,848 73,000 88,168 227,450
Capital grants and contributions
Public safety
Public works 1,762,314 78,551
Community development
Total governmental activities revenue! 5,762,620 5,864,497 7,692,247 5,619,968 6,218,559 6,816,497 7,025,936 10,073,598 11,059,372 9,955,644
Net revenues (expenses):
Governmental activities: {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) (8,024,008)
111
City of Temple City
Change in Net Position-Expenses and Program Revenues-Last Ten Fiscal Years (Continued)
I 2006 2.007 2008 2009 2010 2011 2012 2013 2014 2015 I
General revenues and other changes in net position:
Taxes
Property taxes 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 2,728,718
Transient occupancy taxes 41,881 47,325 45,013 41,536 34,844 34,221 32,956 28,898 46,849 53,612
Sales taxes 1,552,704 1,607,510 1,754,523 1,675,895 1,475,728 1,614,726 1,642,318 1,711,128 1,735,613 1,873,423
Franchise taxes 526,725 569,796 560,375 581,526 533,542 542,523 553,598 550,527 562,535 590,620
Other taxes 193,785 153,579 118,497 91,886 127,573 99,701 99,417 158,962 171,193 175,892
Investment income 907,319 1,363,484 1,233,122 712,967 262,636 409,097 378,269 132,565 203,571 180,197
State motor vehicle in lieu 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 4,887,322
State revenue-other 37,248 6,737 13,063 8,203 6,975 8,844 12,276 7,579 11,166 8,958
Net loss on sale of assets (297,601)
Other revenue 285,364 308,414 365,120 379,190 448,504 285,881 1,071,678 262,058 237,723 778,693
Total general revenues and transfers 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 11,277,435
Changes in net position 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 3,253,427
Extraordinaty items-RDA dissolution: 3,744,062
Change in net position 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 3,253,427
Net position at beginning of year-restated 44,774,848 47,586,475 50,947,157 54,947,265 56,347,93?_ -~7,233,673 60,521,475 65,200,232 61,570,735 65,297,488
Net position at end of year $47,586,475 $50,947,157 $54,947,265 $56,347,937 $57,233,673 $58,980,771 $65,200,232 $ 67,814,720 $64,297,497 $68,550,915
Source: City of Temple City Basic Financial Statements
112
1 2oo• 2007 zoos
General fund
Nonspendable $ $ $ $
Restricted 3,187,512 2,966,122 2,751,507
Committed
Assigned
Unassigned 18,253,707 20,906,179 22,063,783
Total general fund 21,441,219 23,872,301 24,?:1_5,290
All other governmental funds:
Nonspendable
Restricted 1,598 6,074 10,129
Committed
Assigned
Unassigned, reported in:
Special revenue funds 11,038,120 11,636,875 11,944,610
Capital projects funds
Debt service funds (3,391,240) (3,357,488) (3,352,088)
Total all other governmental funds 7,646,880 8,279,387 8,592,522
Total governmental funds $ 29,089,697 $ 32,157,762 $ 33,~_?,_~'!1 $
(1) This schedule reports using the modified accrual basis of accounting.
Source: Ctty of Temple Cttybasicftnancial statements
City of Temple City
Fund Balances of Governmental Funds-Last Ten Fiscal Years
2009 2010 2011 2012 2013 2014 2015 I
$ $ $ 1,678 $ 12,795 $ 10,531 $ 409,084
2,563,065 2,360,171 1,771,165
4,500,000 4,500,000 3,500,000 3,500,000
17,200,000 15,150,000 12,769,580 12,868,392
22,052,532 22,340,207 23,542,553 2,352,402 1,764,257 1,725,404 3,249,131
24,615,597 24,700,378 25,~13,718 24,054,080 21,427,062 18,005,515 20,026,607
1,088,219
10,931 22,706 14,736,866 11,889,013 8,445,931 2,959,528 4,898,508
12,495,281 12,846,187 (84,843} (150)
(1,722,989)
(3,314,129) (3,424,412) (3,223,856)
9,181,152 9,421,775 (3,308,699) (150) (1,722,989)
33,807,680 $ 34,144,859 $ 36,741,885 $ 35,943,09?_ $ 29,872,843 $ -20,965,043 $ 24,290,345
113
Otherfinancing sources (uses):
Transfers in
Transfer out
Issuance of Refunding Revenue Bonds
Bond Discount
Net otherfinandng sources (uses)
Change in fund balance before
extraordinary items
Extraordinary items-RDA dissolution transactions:
Net change in fut"'d balance
Fund balances at beginning of year-restated:
Fund balances at end of year:
City of Temple City
Changes in Fund Balances of Governmental Funds-Last Ten Fiscal Years (Continued)
r---m ~ -----~
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 2,913,494
(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) (2,913,494}
8,000,000
(67,320)
7,757,313 (206,703) (206,256) (223_439)
7,488,401 3,068,065 1.260,179 389,739 337,179 1,969,801 345,820 (6,070,250) (9506,362} 4,048,300
(517,387)
7,488,401 3,068,065 1,260,179 389,739 337,179 1,969,801 (171,567) (6,070,250) (9,506,362) 4,048,300
21,601,296 29,039,597 32,157,762 33,417,941 33,807,580 34,144,859 36,114,660 35,943,093 30,471,405 20,242,045
J 29,039,697 $ 32,157,762 $ 33,417,941 $ 33,807,6_~() $ 34,144,859 $ 36,114,650 $ 35,943,093 $ 29,872,843 $ 20,965,043 $ 24,290,345
Note: This schedule reports using the modified accrual basis of acCtJunting.
Source: City of Temple City basic financial statements
115
Fiscal
year Licenses and
ended Taxes Permits Intergovernmental
2006 3,970,043 1,092,015 2,72:1,891
2007 4,359,660 1,200,311 3,068,372
2008 4,578,801 1,385,267 3,482,229
2009 4,542,514 950,216 3,051,888
2010 3,830,602 1,095,347 3,549,571
2011 4,451,470 1,028,284 3,229,851
2012 4,581,975 1,345,183 3,196,2:37
2013 4,924,493 1,335,720 3,310,180
2014 5,113,739 1,434,610 3,480,366
2015 5,422,265 1,844,793 4,895,411
Source: City of Temple City basic financial statements
City of Temple City
Revenue Capacity
General Fund Revenues-Last Ten Fiscal Years
Charges for Investment Rental other Total
Services Fines Income Income Revenues Revenues
585,885 256,879 897,594 33,698 264,039 9,822,044
621,383 254,024 1,167,407 37,413 276,738 10,985,308
674,154 242,337 1,034,417 90,108 287,075 11,774,388
662,360 287,575 694,444 80,794 305,020 10,574,811
542,976 534,287 442,363 65,928 348,851 10,410,925
631,355 423,041 409,097 57,442 414,145 10,644,685
757,496 646,498 378,269 57,268 128,805 11,091,731
957,437 521,440 132,565 53,369 269,647 11,504,851
1,510,392 554,805 203,571 68,411 246,206 12,512,100
1,527,116 433,102 148,086 89,116 819,205 15,179,095
119
Taxable
Assessed
Taxpayer Value
Calac Investment 21,550,794
Gradiazio Investment Company 14,891,391
Gateway Limited Partnership 12,351,924
(PEnding Appeals On Par<els)
HO Sultana LLC 8,217,538
Ralphs Grocery Company 7,591,974
5600 Gracewood LLC 7,083,974
JamesJ. and Sue FeminoTrust 5,800,820
(PendingAppe•ls On Parcels)
BarchesterTemple City 5,246,088
Dong Chung and Zhen H Feng 5,200,000
Christian Church PAC SW Region 5,197,020
Santa Anita Convalescent Hospital
TCD Enterprise Inc.
5561 Sultana LLC
Miller Drive Partnership
Ramshorn Corp.
Preetpal Neeshi LLC
Top Ten Total $ 93,131,523
City Total $ 4,098,264,981
City of Temple City
Revenue Capacity
Principal Property Taxpayers
Current Fiscal Year and Nine Fiscal Years Ago
2014-2015 2005 2006
Percentage Percentage
of Total City of Total Clty
Taxable Taxable Taxable
Assessed Assessed Assessed
Rank Value Value ~ Value
0.53% $ 18,952,561 1 0.73%
0.36% 13,096,039 O.SO"Ai
0.30"11)
4 0.20"A.
5 0.19% 6,331,459 5 0.24%
6 0.17%
7 0.14% 5,101,468 6 0.20%
8 0.13%
9 0.13%
10 0.13%
7,003,959 4 0.27%
11,494,260 0.44%
4,260,076 7 0.16%
3,869,S40 8 0.15%
3,481,151 9 0.13%
3,476,018 10 0.13%
2.28% $ 77,065,531 2.95%
$ 2,596,941,909
Source: LA. County Assessor 2014/15 Combined Tax Rolls and the SBE Non Unitary Tax Roll
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Business Name
AT&T Mobility
Chevron
Circle K
Circle K
CVS Pharmacy
Green Island Restaurant
Hometown Buffet
InN Out Burgers
K Mart
McDonalds
Modern Lighting
Office Depot
00 Kook BBQ
Pep Boys
Ralphs
Rite Aid
Seafood Village
Super A Foods
Super Pets
Temple City Mobi I
Temple City Powers ports
The Hat
TJ Maxx
Vasil
City of Temple City
Revenue Capacity
Top 25 Sales Tax Producers-Current Fiscal Year
Business Category
Electronics/Appliance Stores
Service Stations
Service Stations
Service Stations
Drug Stores
Casual Dining
Fast-Casual Restaurants
Quick-Service Restaurants
Discount Department Stores
Quick-Service Restaurants
Plumbing/Electronics Supplies
Office Supplies/Furniture
Casual Dining
Automotive/Supply Stores
Grocery Stores Liquor
Drug Stores
Casual Dining
Grocery Stores Liquor
Specialty Stores
Service Stations
Boats/Motorcycles
Quick-Service Restaurants
Family Apparel
Service Stations
Note: Firms listed alphabetically. Period April 2014 Thru March 2015
Source: Hinderliter, de Llamas & Associates, State Board of Equalization
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City of Temple City
Demographic and Economic Statistics-Last Ten Fiscal Years
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
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"Ai 40.9 85.4% 35.9%
2013 36,134 $25,806 4.9% 41.5 86.0% 35.9%
2014 36,152 $26,656 5.4% 41.3 85.9% 37.0%
Notes and Data Sources:
Population: California State Department of Finance.
Unemployment Data: California Employment Development Department
2005-20091ncome, 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 dto 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.
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Calendar
year ended
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
New
Residential
$ 21,957,999
25,630,380
20,980,153
19,127,998
20,200,934
23,754,355
19,536,413
21,298,596
32,964,118
37,651,625
$
New
Commercial
1,980,100
3,240,390
1,340,500
3,892,187
2,156,535
1,175,540
2,490,427
14,433,160
1,298,205
2,217,000
City of Temple City
Operating Information
Construction Activity-Last Ten Fiscal Years
Total
$ 23,938,099
28,870,770
22,320,653
23,020,185
22,357,469
24,929,895
22,026,840
35,731,756
34,262,323
39,868,625
Demolitions
$ 258,150
209,560
123,390
99,000
162,000
139,048
144,000
322,000
429,900
421,900
New
Value of
Construction
$23,679,959
28,661,210
23,537,763
22,921,185
22,195,469
24,790,847
21,882,840
35,409,756
33,832,423
39,446,725
Source: City of Temple City Community Development Department
124
City of Temple City
Operating Information
Full-Time Equivalent City Employees by Function-Last Ten Fiscal Years
Function 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General Government
Full Time 8.85 7.85 7.80 7.80 7.80 7.80 7.80 8.80 9.95 9.95
Part Time 0.83 0.86 0.64 0.61 0.65 0.85 3.11 3.11 1.85 3.50
9.68 8.71 8.44 8.41 8.45 8.65 10.91 11.91 11.80 13.45
Community Development
Full Time 7.10 8.10 7.15 7.15 7.15 6.10 6.10 6.20 6.90 6.90
Part Time 0.00 0.01 0.44 0.16 0.26 0.06 1.64 2.64 1.60 2.50
7.10 8.11 7.59 7.31 7.41 6.16 7.74 8.84 8.50 9.40
Parks & Recreation
Full Time 14.70 12.70 11.70 11.70 11.70 12.15 12.15 12.25 12.05 12.05
Part Time 11.78 16.68 19.56 21.88 21.46 18.96 22.66 18.92 26.05 48.00
26.48 29.38 31.26 33.58 33.16 31.11 34.81 31.17 38.10 60.05
Pub I ic Safety
Full Time 4.40 4.40 5.40 5.40 5.40 7.05 7.05 7.65 7.55 7.55
Part Time 0.00 0.00 0.00 0.00 1.43 2.33 4.22 4.07 4.51 5.00
4.40 4.40 5.40 5.40 6.83 9.38 11.27 11.72 12.06 12.55
Public Works
Full Time 2.95 2.95 3.95 3.95 3.95 2.90 2.90 3.10 3.55 3.55
Part Time 0.00 0.03 0.04 0.00 0.34 0.00 0.28 1.79 0.46 2.00
2.95 2.98 3.99 3.95 4.29 2.90 3.18 4.89 4.01 5.55
Full Time Total 38.00 36.00 36.00 36.00 36.00 36.00 36.00 38.00 40.00 40.00
Part Time Total (1) 12.61 17.58 20.68 22.65 24.14 22.20 31.91 30.53 34.47 61.00
TOTAL 50.61 53.58 56.68 58.65 60.14 58.20 67.91 68.53 74.47 101.00
Note: (1) 2,080 Hours of Part lime equals to 1 Full Time Equivalent
Source: City of Temple City Administrative Services Department
125
City of Temple City
Operating Information
Operating Indicators by Function -Last Ten Fiscal Years
1 2oo6 2001 2oos 2oo9 2010 2011 2012 2o13 2o14 2o1s 1
Public Safety:
Arrests 438 513 559 411 514 949 1,105 852 626 758
Parking Citations 6,385 7,089 6,947 6,879 12,681 9,024 9,926 10,025 10,260 9,919
Public Works:
New sewer connections 83 78 55 30 36 25 30 59 94 106
Parks & Recreation:
Number of rereation classes 401 398 341 363 330 390 400 368 380 374
Number of facility rentals N/A 904 1,050 1,076 1,179 1,083 1,110 1,178 1,072 1,254
Source: City of Temple City Community Development Department
City ofTemple City Parks & Recreation Department
Los Angeles County Sheriff Department
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